The Bank of Thailand (BoT) is worrying that the foreign direct investment (FDI) made by Japanese investors in Thailand might be affected from the recent quake and tsunami attack in Japan.
BoT Governor Dr Prasarn Trairatvorakul believed that the Thai economic growth should not be affected much by the catastrophe in Japan based on initial assessment although Thailand and Japan have very close trade and investment.
On the contrary, the governor noted Japan might order more goods from Thailand for the rehabilitation in the country.
Dr Prasarn confirmed that the BoT was monitoring the movement of Japanese FDI in order to assess the extent of impact from the recent natural disaster that the Japanese investors in Thailand were facing.
The governor believed that Japanese investors might delay their investment in Thailand if their factories or parent offices in their home country were damaged. He admitted that the Thai economic outlook hence might be affected.
Thai exporters have been warned that sales will probably drop because of the earthquake and tsunami that have devastated northeastern Japan.
University of the Thai Chamber of Commerce (UTCC) economic and business forecasting centre director Att Pisarnvanich said on Tuesday that Japan’s economic growth for 2011 would likely drop by 0.5 to 1.0 per cent.
Mr Att said he expected the catastrophe would cause Thai exports to Japan to fall by about 7.2 per cent, or about US$735 million, to $1.47 billion, accounting for 0.3 to 0.7 per cent of total Thai exports to the world market.
The impact on Thailand’s industrial exports would be higher, estimated at 8.3 per cent, with agricultural exports looking at a 2.9 per cent, he added.
The Federation of Thai Industries (FTI) has expected that the expansion of Japanese projects in Thailand would slow down by about two to three months after the quake and tsunami attack.
FTI Board of Directors Chief Advisor Santi Vilassakdanont stated that the deadly disaster has negatively affected the Japanese economy to the extent that Japanese investors might have to delay their investment in Thailand by about two to three months.
The chief advisor indicated that the Japanese government was preparing measures to assist its industrial sector as well as investors; therefore, he believed that investment slowdown would only last for a short-term period.
Thailand BOI approves Biotech Projects Worth 2.4 Bln Baht ($78 million)
The biotechnology sector is part of the so-called BCG model (Bio, Circular and Green economy) which the Thai government has set as a priority to lead the post-Covid 19 recovery.
The Thailand Board of Investment (BOI) said today it has recently approved new projects in the field of advanced biotechnology, worth a combined 2.4 billion baht (around USD78 million) in investment, reflecting the increased interest of local and foreign investors in the country’s biotech sector.
Indonesia’s Omnibus Law: Positive Investment List and the Liberalization of Business Sectors
Examples of non-fiscal incentives are the provision of supporting infrastructure, simplified business licensing procedures, and the guaranteed energy supply or raw materials.
In the first of ASEAN Briefing’s Indonesia’s Omnibus Law series, we analyze Presidential Regulation 10 of 2021 (PR 10/2021) on business fields open to investment — also dubbed as the positive investment list. The regulation comes into effect on March 4, 2021.
Foreigners’ Participation in Thai Listed Companies explained
Special vehicles have been created to facilitate foreign investors so that they are able to invest in Thai
securities flexibly and conveniently.
Subscribe via Email
Thai fruit exports to FTA markets up 107 percent
China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian,...
Digital Revolution and Repression in Myanmar and Thailand
Activists have also proactively published social media content in multiple languages using the hashtags #WhatsHappeningInMyanmar and #WhatsHappeningInThailand to boost coverage...
3 Reasons to Be Optimistic About the Baht Right Now
Probably one of the most important factors for the rise of the Baht is the continued weakness of the US...
Will Thailand’s plan for quarantine-free tourism set a global trend?
According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key...
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...