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Applications for investment privileges down 7% in first half
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Central bank decreases economic growth projection
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Applications for investment privileges down 7% in first half
The global financial crisis coupled with domestic political turbulence posed
major problems for the foreign investment climate in Thailand, as
applications seeking investment privileges during the first half of 2009
slipped to about Bt180 billion, down seven percent from the same period of
last year, Atchaka Sibunruang Brimble, secretary-general of the Board of
Investment (BoI) said Saturday.
Despite the decline, Atchaka said she is optimistic that investment seeking
promotional privileges from the BoI will improve during the second half of
2009 as several major firms have applied for the privileges already.
They include Bridgestone, which plans to invest more than Bt1 billion in
boosting its tire output, and Samsung’s application to raise its investment
by about Bt3 billion, she said.
Also, the World Bank has forecast that Thailand’s economy would turn around
and grow 1.8 percent during the fourth quarter this year, which would in
turn help improve tourism, Atchaka said. She said she hoped the current
virus siege would not greatly impact the tourism industry.
Touching on earlier remarks by Industry Minister Charnchai Chairungrueng
that foreign investment in Thailand will soar to Bt490 billion, she said the
figures were probably derived from talks between the minister and
prospective foreign investors. That level of investment would probably be
achieved after a time, she said.
The BoI has moved its investment target for 2009 to Bt450 billion, down from
the Bt650 billion goal set earlier this year. (TNA)
Central bank decreases
economic growth projection
The Bank of Thailand (BoT) has revised its economic growth
estimate for this year downward to 3-4.5 percent from the 1.5-3 percent forecast
earlier, citing the presence of many critical risk factors which the economy now
faces.
BoT Deputy Governor Atchana Waiquamdee said the factors include the
slower-than-expected global economic growth, possible failure by the government
to disburse its budget to stimulate the economy, political uncertainties, the
ongoing A(H1N1) influenza pandemic that affects tourism and private-sector
consumption, and rising oil prices.
These factors could undermine both corporate earnings and the purchasing power
of consumers.
“The economy looked more stable in the first two months of the second quarter
and we believed it had already bottomed out. Still, the negative growth of the
gross domestic product at 7.1 percent in the first quarter is worse than
expected,” Atchana said.
However, she revealed that the central bank had increased the GDP projection for
next year to 3-5 percent from 1.5-3 percent expected earlier since it is
projected the global economy will recover and grow 3.4 percent next year.
Atchana said the Thai economy is likely to enjoy positive growth in the fourth
quarter this year because exports will tend to decline at a slower pace, the
second phase economic stimulus scheme will benefit the economy and the
government speeds up its budget disbursements.
Private-sector consumption is expected to drop further by 1-3 percent and
private investment to shrink by 17-19 percent.
Exports are forecast to contract 19.5-22.5 percent and imports to shrink 29-32
percent, resulting in a trade surplus of US$15-18 billion and a current balance
surplus of the same amount.
She affirmed the central bank had closely monitored the baht movement.
Atchana shrugged off criticism that exports had dropped sharply because of the
stronger baht, saying the plunge was not mainly due to the baht’s rise.
Whether exports would grow favorably depends on the global economic situation
and the economic expansion of Thailand’s trade partners. (TNA)
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