Months of political discord, street violence and widespread demonstrations, have inflicted serious damages to Southeast Asia’s second-largest economy. But for now most businessmen agree the army takeover could help the country rebound to the economic potential it wields.
The economy sank 2.1 percent in the first quarter of 2014 and it’s now teetering on the brink of a recession. According to the semi-annual “Global Economic Prospects” report released on Tuesday, Thailand’s economic growth outlook remains uncertain due to continued political tensions, while global growth is also showing signs of slowdown.
The forecast for Thailand’s economic growth has been slashed to 2.5 per cent from 3 per cent in April.
In an apparent effort to boost consumption and growth, the military has begun compensating 800,000 rice farmers left in limbo by the former government subsidy scheme. Yingluck Shinawatra’s government paid farmers about 40 percent above market value for their rice crop, but mismanagement and alleged corruption led the scheme to bankruptcy, and payments were halted late last year.
Applications for BOI privileges slump 42% in first five months
Although the Joint Foreign Chambers of Commerce in Thailand (JFCCT) have agreed that the business ambience in Thailand has not changed significantly since the establishment of the National Council for Peace and Order (NCPO), foreign investors have delayed their applications at the BOI, adopting a wait and see attitude.
The value of projects seeking privileges from the Board of Investment during the first five months of this year shrank 42 per cent to a total of Bt308.3 billion, according to the BOI.
The secretary-general of Thailand’s investment-promotion agency, Udom Wongviwatchai, said there were a total of 515 projects submitted to the BOI from January to May, a decrease of 39 per cent from the same period last year.
In a press confidence on “Confidence in Thailand” at Grand Hyatt Erawan Bangkok on 10 June 2014, JFCCT expressed opinions of the foreign business community in Thailand on trade and investment in the country during the current situation.
I have been in Thailand for 30 years, and my experience is that Thai economy usually recovers very fast. In 1997 Thailand was bankrupt, like all of us with the Tom Yam Kung crisis. Then in 2011 my factory was flooded for 40 days, but we managed to recover in 60 days. Thailand is very resilient : if it goes down 10%, then it will go up 15%.
said Yeap Swee Chuan, president of the Malaysian-Thai Chamber of Commerce and president of AAPICO Hitech
For the car industry, there is always some changes, but it has always improved in the long term, and now Thailand has become the most competitive automaker in the Asean. There is always an infrastructure behind the politics that makes business proper.
As far as I know, there are no foreign automobile operators moving their operations elsewhere : we still have many Chinese company visiting us.
For the time being, Thai military still enjoy positive feedback from the business sector and rice farmers, but Thailand is also the target of criticism from the United States, and many other Western countries.
In a globalized world economy, where Thailand depends heavily on its exports and foreign investment, the country cannot afford to postpone a return to democracy for too long. From the international community point of view, only an elected government is legitimate.
Online intellectual property dispute platform to go live next year
The online dispute settlement platform for intellectual property cases will assist with cases related to copyright, patents, and trademark infringements using digital technology.
Thailand pushes for “Ease of Doing Business” reforms
Thailand is in the process of responding to the World Bank’s advice and the “Ten for Ten” proposal by five ambassadors to Thailand, according to Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow.
Thailand remains in pole position for the highest funds raised across Southeast Asia
Taking the top two spots on the region’s leaderboard this year are Thailand’s Central Retail Corporation Public Company Limited and SCG Packaging Public Company Limited with US$1.77 billion and US$ 1.27 billion funds raised respectively
THAILAND, 26 November 2020 — Capital markets across Southeast Asia stayed resilient in 2020 despite a host of uncertainties from the evolving global health crisis to the worsening US-China trade tensions and the impact of the US presidential elections.(more…)
Covid-19: the Latest on Southeast Asia
As 2021 dawns, the coronavirus pandemic continues to develop in Southeast Asia. Many countries are preparing to receive their first...
Thailand’s slow economic recovery
The speed of economic recovery in Thailand has been slower than neighbouring countries such as Malaysia, Vietnam and China, especially...
Thailand strengthens COVID-19 control measures
Apart from the capital city, many provinces have also enforced tougher measures to contain COVID-19, with inter-provincial travels now being...
Thai Exports to grow 4% in 2021
Contributing factors include the recovering world economy and the International Monetary Fund’s (IMF) estimate that the world economy will expand...
Thai Government imposes ban on gatherings over New Year 2021 holidays
TAT would like to remind all that New Year 2021 activities have been cancelled or gone virtual nationwide to avoid...
Thai cabinet allows illegal migrant workers to sign up for 2-year work permit
Migrant workers from Cambodia, Laos, and Myanmar, who are in Thailand illegally, will be able to obtain a 2-year work...