BoT confident Thailand’s GDP will grow in 2015

Bank of Thailand Governor Prasarn Trairatvorakul.

Bank of Thailand (BoT) Governor Prasarn Trairatvorakul has told foreign journalists that he is confident Thailand’s gross domestic product (GDP) will grow next year due to its potential, according to BoT spokesman Chirathep Senivongs Na Ayudhya.
Chirathep said Prasarn told foreign media in an interview on the sidelines of the 2014 Joint World Bank-IMF Development Committee meeting in Washington that Thailand’s political situation has now eased and it should help domestic consumption return to normal.
Spending in Thailand, which had slowed earlier during the unrest, should return to normal while the private sector should gain from government investment, and both would assist in boosting the economy in 2015, Prasarn was quoted as telling the international media.
In addition, the interim government is accelerating the reform of state enterprises, local energy prices and shoring up agricultural products without government subsidies, Prasarn said.
These measures should help strengthen the country’s competitiveness, he said.
On worries by foreigners regarding foreign direct investment in Thailand, Prasarn told the international media that projects seeking promotional privileges from the Board of Investment had risen noticeably.
These are significant projects such as investment in manufacturing eco cars, food processing and alternative energy. (MCOT)

Privilege-seeking investors reach record high in September

Investors seeking promotional privileges from the Board of Investment (BoI) in September stood at 158 projects with combined value Bt176.3 billion, highest in terms of number of projects and value since the beginning of 2014, according to BoI Secretary-General Udom Wongviwatchai.
Total investment in projects receiving BoI privileges during the first nine months this year reached Bt592 billion baht.
Udom said signs of investment in Thailand have been positive, which could be seen from the sharp increase in the number of projects and value seeking promotional privileges in September.
September’s sharp increase was attributed to investors applying for five electricity generation projects using natural gas with combined value of Bt135 billion, he said.
It shows that investors are keen to invest in energy, a BoI industry target and it also shows that investors have regained confidence in the country, said Udom.
If positive investment directions continue, it is projected that value of investment seeking privileges in Thailand this year may exceed the target at Bt700 billion, he added. (MCOT)

BoT urges private sector to use yuan trade, investment in China

The Bank of Thailand (BoT) is encouraging Thai operators to use China’s yuan currency for their trade and investment with China to cope with foreign exchange risks.
It also recommended Hong Kong as a major yuan market.
Opening the Hong Kong-Thailand Renminbi Business Forum that BoT and the Hong Kong Monetary Authority organized, Chantavarn Sucharitakul, BoT assistant governor for the Financial Markets Operations Group, said the yuan was playing more important roles and that Thai operators should use it as a tool to manage their foreign exchange risks.
She also said that Hong Kong was the biggest yuan market and provides a wide range of yuan-related services.
Vachira Arromdee, BoT’s senior director for the Financial Markets Department, said Thai operators rarely use yuan to pay for products and services as the proportion was less than 1 per cent.
However, she said that the use was likely to grow along with increasing trade between Thailand and China.
Vincent Lee, executive director of the Hong Kong Monetary Authority, said it is a good time to promote the yuan because trade between Thailand and China is expanding steadily and many Chinese business operators have offices in Thailand and elsewhere in Southeast Asia.
He said that the formation of the ASEAN Economic Community in 2015 would further boost the value of trade between Thailand and China and between ASEAN and China. (MCOT)

Consumer confidence index rises for 4th straight month

Thailand’s Consumer Confidence Index increased in September for the fourth consecutive month and peaked for 9 years and 7 months (115 months), according to a survey by the Commerce Ministry.
Amparwon Pichalai, commercial advisor and acting deputy permanent secretary for commerce, said the survey of 3,167 people nationwide found that last month’s Consumer Confidence Index stood at 45.8, up from 44.9 the previous month.
Respondents were asked about their economic situation, income and employment opportunities.
The confidence index for the next three months was at 49.2, Ampawon said.
She pointed out that although the indices were climbing, they remained below 50.
This shows that people still lack confidence in the economic situation due to the cost of living, rising unemployment, delayed tourism recovery, the low prices of farm products, widespread flood damage, and exports negatively affected by the global economic slowdown.
Consumer expectations for income (in the next quarter) reached a 20 month high as its index peaked at 53.3.
Above the 50 level, the index reflects that consumers became confident of their future incomes and expected the new government to improve the national economy. (MCOT)