- HEADLINES [click on headline to view story]:
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UK confidence is still with Thailand
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SET likely to bottom out in mid 2009
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Thai government mulls tax cut; tackle unemployment
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Thailand may lose US$3 billion in exports if key economies contract
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UK confidence is still with Thailand
(L to R) Michael Usher, Stephen Buckley, Graham
Macdonald, Wong Keng Cheong, Chantana Hinkaew, James Howard, Barry Lowen,
Peter Malhotra, and Attakorn Saropala pause for a group commemorative photo.
Special Correspondent
Despite these turbulent times, the UK government continued to show
its faith in Thailand by sending out Barry Lowen to see how it was faring
amidst the present global financial woes. Lowen, who is the UK Trade &
Investment Asian Director, spent a few days in Bangkok being briefed and
then came down to the Eastern Seaboard for an in depth look at British
industry and commerce in the provinces of Chonburi and Rayong.
The first port of call was Triumph Motorcycles on the Amata Nakorn
Industrial Estate near Chonburi. Lowen was very impressed at how Triumph has
grown over the last decade and has continually increased production and
expanded to now having five plants on the estate. Steve Sargent gave the
director a tour of the present set up and explained the plans for further
expansion.
The next stop was Weston SEA on the Pinthong Ind. Est. near Laem Chabang.
This company supplies the auto industry and has only recently completed its
move to the new site. The managing director, Wattana Chaiwan, expounded the
benefits of being situated at Pinthong as the local logistics give him
everything he needs. An hour was spent here before meeting up with a
cross-section of businessmen who live and work on the Eastern Seaboard.
Stephen Buckley, the director of Trade & Investment at the British Embassy
in Bangkok invited the following: Graham Macdonald, vice chairman of the
British Chamber of Commerce Thailand; Michael Usher from the German-Thai
Institute; James Howard of Milan Crosse; Peter Malhotra, MD of Pattaya Mail;
Wong Keng Cheong, the new MD of Thai National Power and Chantana Hinkaew who
is the corporate marketing director of Hemaraj Land & Development who also
hosted the lunch. From the embassy, apart from Buckley, there was also
Attakorn Saropala, the commercial officer.
Over lunch there was a candid exchange of views about how everyone was
managing in the present climate. As one would expect, these ranged from the
optimistic to the pessimistic. Naturally, the discussion had a certain
eclectic air with so many different businesses being represented; however,
Lowen was delighted with the meeting as it gave him a broad outlook on what
was happening in the industrial heartland of Thailand.
After the lunchtime get together had concluded at the Patana Sports Club,
Lowen was taken to GKN on the Hemaraj Eastern Seaboard Industrial Estate. He
was met by Kazuo Sakaki who explained how the company had grown over the
previous eleven years.
Once the tour had finished, both Steve Buckley and Barry Lowen expressed
their thanks for the day they had spent on the Eastern Seaboard and were
delighted by what they had experienced.
SET likely to bottom out in mid 2009
The Stock Exchange of Thailand (SET) is projected to bottom
out in the middle of next year and will pick up gradually after that, according
to a top securities executive.
Speaking at a seminar on “Whether the Thai Economy and Stock Market will Survive
or Not,” Kongkiat Opaswongkar, president of Asia Plus Securities, said the SET
composite index had already dropped to the 400-point level.
No one could know at what level the index will bottom out, but some expect the
global economy to recover in 2010.
But since the stock market usually recovers ahead of the economy, many predict
the index will bottom out in mid-2009 and would gradually pick up.
Not only had the Thai stock market been affected by the global economic
meltdown, but it had also experienced political uncertainties.
Consequently, should the political turmoil end, it will restore investor
confidence to a certain extent because the Thai economy is not as bad off as the
US economy.
“Stock prices now are very low, so it is a good opportunity for people with cash
to accumulate stocks because performance results of listed companies remain
sound,” he said. (TNA)
Thai government mulls tax cut; tackle unemployment
In a bid to cushion Thailand from the impact of the global financial crisis
and the consequent economic slowdown, the government on Thursday moved to
assess whether corporate and income taxes could be reduced, and to consider
methods to lower unemployment in the country.
The government’s decision to tackle the problems followed a meeting of the
Joint Public-Private Committee, chaired by Prime Minister Somchai Wongsawat,
and attended by economic ministers and prominent executives from the private
sector.
Somchai told journalists after the meeting that his government would support
the private sector as it felt the global financial crisis not only affected
the Thai economy but tourism as well.
The government, he said, has assigned the finance ministry to determine the
impact of possible corporate and personal income tax reductions, while the
Labor Ministry is seeking measures to assist people laid-off from their
jobs.
Somchai said the government would inject a Bt100 billion budget into
stimulating the economy, in part through providing loans to small and
medium-sized enterprises.
Latest statistics by the Labor Ministry disclosed that 166 firms had
terminated about 18,000 workers. Another 81 companies with 29,000 employees
were expected to be affected later.
Finance Minister Suchart Thada-thamrongvech said Thailand’s exports of
automobiles will be affected as the purchasing power of consumers abroad
declines. Other industries will follow suit, he noted.
Suchart’s comments were made after press reports here said that General
Motors (Thailand) will temporarily close its automobile manufacturing plant
in Rayong in December and January as its parent company in Detroit is
struggling to achieve a massive bail-out package from the US government.
(TNA)
Thailand may lose US$3 billion in exports if key economies contract
The returns from Thailand’s exports might drop by more than
Bt100 billion if the economies of the country’s key export destinations,
including the United States, the European Union (EU), and Japan contract by even
1 percent, according to a leading academic.
Aat Pisanwanich, director of the University of the Thai Chamber of Commerce’s
Study and International Trade Center, said should the US economy contract by 1
percent, Thailand’s exports to the country would drop by 2.54 percent, or Bt
112.56 billion.
Should the Japanese economy contract by 1 percent, Thai exports there would fall
by 1.76 percent.
Should the European Union economy decline by 1 percent, Thai exports to the EU
would decrease by 1.48 percent.
Exports to the three major economic zones, if considered based on their value,
would drop in value by Bt62.8 billion, Bt34.47 billion and Bt15.29 billion
respectively, or Bt 112.56 billion combined.
Thai export items expected to be most impacted by the global economic crisis
include fisheries and agricultural products, mining and forestry.
Dr. Aat said the center believes that Thailand’s exports next year will not
contract as many fear because the country will manage to find new markets to
help offset any shortfall in revenues.
He predicted that Thai exports will expand less than 5 percent next year. (TNA)
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