Thailand’s No Beach Party for Investors

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Thailand’s No Beach Party for Investors

Shuli Ren

 

(Bloomberg Opinion) -- Bangkok may be among the world’s top 10 tourism destinations, but for overseas investors it’s about as popular as a beach holiday in the Arctic.

 

Foreigners sold a net $8.7 billion or so of Thai stocks this year, the most since data began in the late 1990s. 

 

On the face of it, that’s a puzzle. Thailand has been something of a haven amid this year’s emerging markets sell-off. The baht, supported by an influx of overseas tourists, has dropped only 1.3 percent against the dollar. Meanwhile, the MSCI Thailand Index is showing a total return of minus 2.6 percent, outperforming the broader emerging-markets stock gauge by more than 10 percentage points.

 

Full story: https://www.bloombergquint.com/markets/thailand-s-no-beach-party-for-foreign-investors#gs.y68f0c4

 

-- Bloomberg 2018-11-20

[thaibeachlovers]

I've only been saying for 30 years that any farang that buys or invests in LOS should not be surprised to lose it all, as it's obvious to any that look that it's a gamble. Some do win, but loads don't, and there is sod all they can do about it when it all turns to tears.

[Eric Loh]

You don't need to be an economist to know that investors don't like political uncertainty. 2 coups in the last decade are driving away investors. Thailand need an orderly change of elected government to attract investors.  

[mok199]

Exposure is paramount.

[thaibeachlovers]

5 minutes ago, Eric Loh said:

You don't need to be an economist to know that investors don't like political uncertainty. 2 coups in the last decade are driving away investors. Thailand need an orderly change of elected government to attract investors.  

Thailand had oodles of coups in the past and did OK. I think there is a simpler explanation, but I'm not going to post it on a public forum. However, we all know what it is.

[Ulic]

6 hours ago, thaibeachlovers said:

I've only been saying for 30 years that any farang that buys or invests in LOS should not be surprised to lose it all, as it's obvious to any that look that it's a gamble. Some do win, but loads don't, and there is sod all they can do about it when it all turns to tears.

And if you had invested 30 years ago you probably would have made a tidy sum in spite of the various market headwinds. As you say and with investments around the world. It depends what you invest in. Land 30 years ago in Bangkok, winner, World Com, Enron, BREX, looser. 

[yellowboat]

The future for Thailand does look all that good under military law.   They can say what they, and the local population will just shrug, but investors will just go elsewhere because they can. 

[DrTuner]

The investors remember the Chinese reverse merger scams well and see who's taking the reins here. Better get what you got and move on.

Edited November 20, 2018 by DrTuner

[zzaa09]

8 hours ago, thaibeachlovers said:

Thailand had oodles of coups in the past and did OK. I think there is a simpler explanation, but I'm not going to post it on a public forum. However, we all know what it is.

The crux of the matter.

.....and I truly believe that the greater percentage don't know or comprehend. 

This shouldn't be a surprise - consider the source.

 

As they continue on towards items that have nothing to do with anything. 

[chama]

While the junta tries to lure in investors and foreign businesses they are exactly the reason that foreign investors and businesses won't come. 

[quandow]

18 hours ago, thaibeachlovers said:

Thailand had oodles of coups in the past and did OK. I think there is a simpler explanation, but I'm not going to post it on a public forum. However, we all know what it is.

I wonder if that same reason of which we do not speak had something to do with the sudden change in attitude towards retirees - get rid of those who do not have a desired liquid cash flow.

[Fex Bluse]

Well, if talking about FDI, the reason it has dried up is largely due to structural problems in the Thai economy. Wages have increased but output has not. The country, for all the talking it does, has not charted a clear path to moving up the value chain. And education is producing a labor force that is ill-equipped to be productive in the modern, highly competitive global economy. 

 

It's not looking good for Thailand. 

 

The best thing that can happen is maybe some of the foreign companies fleeing PRC end up in Thailand to take advantage of low wage work. 

[Cryingdick]

Can you even imagine trying to invest honestly in Thailand. No honest person would want to attempt to wade through the under handed systematic corruption that is Thailand. Kick backs, insider trading, fraud. You would have to hate money to invest in Thailand if you aren't connected to insiders.

 

Just for a laugh look at the event i got invited to as a TE member. Look how it lists benefits from some countries listed. Then look at what Thailand offers. The clue should be the first word they use for their own offerings is "adequate". 

 

 

 

Edited November 20, 2018 by Cryingdick

[LomSak27]

14 hours ago, yellowboat said:

The future for Thailand does look all that good under military law.   They can say what they, and the local population will just shrug, but investors will just go elsewhere because they can. 

Well you can put up all the PR pieces you want and blow sunshine into any dark crevice but the underlying facts remain and are getting out. Savage article in Nikkei Asian Review about the North and the Tourist Hotel industry. This is not news if you live up here or visit. It does seem to have effectively been airbrushed thought over the last 2 years.east. This cracks are not going away. Since this is ThaiVisa, it remains to be seen how they affect the Expat market. No Affidavit letters? ok got that. Do you want to up the 800K amount or put on more requirements regarding it? Just rumors today. 

You wonder how all of that will fly with the Hotel and by extension Condo market up here on the brink. Going to be an interesting year.. 

Edited November 20, 2018 by LomSak27

[hotchilli]

Who is going to invest in a country where you cannot own anything, cannot be named on anything, cannot control anything & virtually cannot work in anything??

Many other countries are far more inviting.. allowing you to fully own what you buy, with guarantees via a contract of ownership... bye bye Thailand!

[Cryingdick]

14 minutes ago, hotchilli said:

Who is going to invest in a country where you cannot own anything, cannot be named on anything, cannot control anything & virtually cannot work in anything??

Many other countries are far more inviting.. allowing you to fully own what you buy, with guarantees via a contract of ownership... bye bye Thailand!

 

They give "adequate" visas (if you pay for nothing more than the visa and no further benefits) while other countries offer residency and citizenship. What's not to like?

[Fex Bluse]

1 hour ago, hotchilli said:

Who is going to invest in a country where you cannot own anything, cannot be named on anything, cannot control anything & virtually cannot work in anything??

Many other countries are far more inviting.. allowing you to fully own what you buy, with guarantees via a contract of ownership... bye bye Thailand!

Yeah, the mind boggles.

 

I hate to be nasty, but they could at least consider offering a perk of free vouchers to relaxation services valued at 1000 Baht per day... That would be a good value and something they could deliver on. Or even a voucher for one free somtom per day. 

 

By the way, the other one you didn't mention is the questionable legal recourse available in Thailand. 

[Cryingdick]

4 minutes ago, Fex Bluse said:

Yeah, the mind boggles.

 

I hate to be nasty, but they could at least consider offering a perk of free vouchers to relaxation services valued at 1000 Baht per day... That would be a good value and something they could deliver on. Or even a voucher for one free somtom per day. 

 

By the way, the other one you didn't mention is the questionable legal recourse available in Thailand. 

 

What? you had me until you stumbled into what you said about recourse. I have no doubt in my mind that the judicial process is fair and just. If a situation arises you can take reassurance that you just have to tell the truth. It isn't like you will be sued or jailed under the criminal crimes laws as long as your allegations are true. 

 

If somebody harms you or your business just call them out and the law handles it. Thailand also has a proven track record in regards to intellectual property laws. Have an invention? By all means come here patent it and start a factory.