Thai investment view undimmed by strains of world economic tensions

By PHUWIT LIMVIPHUWAT 
THE NATION

 

 

THE BOARD of Investment (BoI) has increased its target for investment into the country lured by its privileges in spite of the uncertain economic conditions.

 

While the 2019 target of Bt750 billion exceeds that of last year’s Bt720 billion, it has been described as conservative.

 

Deputy Prime Minister Somkid Jatusripitak said the focus would be on quality investments amid a more sluggish economic environment.

 

“We will increase the role of the BoI in reducing inequality in the country and encourage investment in areas that address this issue instead of only focusing on the manufacturing industry,” Somkid said at a press conference yesterday.

 

Investors that are looking to put their money into improving the agricultural industry, the quality of the workforce, or developing logistics facilities along tourist routes will need to receive investment advantages, he said. 

 

Somkid outlined his intentions to make tourism a key driver of economic growth for 2019.

 

“Tourism now contributes more than 15 per cent of the Thailand's GDP. It has significant impacts on Thailand’s employment, production and general economic growth,” he said. “From now on, we will need to encourage investment in all other industries to centre around tourism.

 

 Kobsak Pootrakool, the Minister to the Prime Minister’s Office, said: “We have made a modest target on the total investment figure for 2019 because of the uncertain global economic situation, especially the uncertain impacts of the ongoing US-China trade war.”

 

When asked whether the postponement of the general election – most recently from a pledged date in February - has damaged the investment sentiment for 2019, Kobsak said that the election would also bring benefits for the investment outlook.

 

Pre-election completion 

 

“For example, the current government is determined to finish key investment projects in the EEC before the election, such as the development of the U-Tapao airport,” he said.

 

BoI secretary-general Duangjai Asawachintachit said applications for investment privileges had been submitted for 1,626 projects in 2018, for a combined valuation of Bt901.77 billion.

 

This figure exceeded the BoI’s target for 2018 by up to 25 per cent. Of the total value, Bt680 billion was for projects in the Eastern Economic Corridor (EEC), Duangjai said. 

 

Some 84 per cent of the projects in 2018 were in the five targeted New S-curve industries, comprising digital businesses, medical hubs, biofuel and biochemicals, robotics and automation, and aviation and logistics, Duangjai said. These projects were valued at Bt758 billion.

 

“The BoI will continue to attract foreign investment from key investors such as China and Japan, which have jointly stated that they want to corporate in investing in Thailand,” Kobsak said.

 

The BoI will hold investment events to capitalise on this opportunity and attract more foreign direct investment into the Kingdom, especially in the first half of 2019, he said.

 

Source: http://www.nationmultimedia.com/detail/Economy/30361938

 

-- © Copyright The Nation 2019-01-10

4 minutes ago, webfact said:

Thai investment view undimmed by strains of world economic tensions

Didn't we have another group a couple of days ago saying the US-China trade tariff row would have a knock-on effect for Thailand?

This lot seem to have gone to the TAT school of public announcements, completely devoid of reality.

 

21 minutes ago, webfact said:

 

“Tourism now contributes more than 15 per cent of the Thailand's GDP. It has significant impacts on Thailand’s employment, production and general economic growth,” he said. “From now on, we will need to encourage investment in all other industries to centre around tourism.

 

You mean you will invest in infrastructure to support this expansion? Not sure that is BOI territory.

Bol need luck and brains .. to pull some of that off .. 

 

2 hours ago, webfact said:

New S-curve industries, comprising digital businesses, medical hubs, biofuel and biochemicals, robotics and automation, and aviation and logistics, 

Hmmm .. Didn't they have to get Singa's help in raising the sunken boat recently .. That don't bode well for getting stuck into some of the above .. 

Edited January 10, 20197 yr by Justgrazing
Sp

"Somkid outlined his intentions to make tourism a key driver of economic growth for 2019.

 

Tourism now contributes more than 15 per cent of the Thailand's GDP. It has significant impacts on Thailand’s employment, production and general economic growth,” he said. “From now on, we will need to encourage investment in all other industries to centre around tourism."

 

Like investing in a restaurant. 50-60% failure rate.

3 hours ago, webfact said:

Thai investment view undimmed by strains of world economic tensions

Much of the content of this story (propaganda) put out by the junta seems to conflict with other reports that are emerging.

1. I saw a report the other day where the US/China trade war was encouraging Chinese manufacturers to relocate to other countries unfortunately Thailand wasn't mentioned but Vietnam was because of  proximity, higher productivity, lower wages and higher skill levels.

2. Another report stated that foreign and domestic investors were going to Malaysia and Vietnam which were more politically stable and with greater opportunity.

3. The Japanese did an analysis of the Eastern Economic Corridor high speed train proposal and concluded that the trains system was great but the project lacked infrastructure development to support it. It seems the PM's dream did not include this vital part.

4. Export growth has been tipped to decline from that of 2018. Likewise GDP growth is also predicted to decline albeit marginally. (GDP growth is linked to growth in exports which might not reach their target).

4. Thailand has a national airline that would go bankrupt if it wasn't propped up by taxpayer money. 

5. Somkid admitted Malaysia and Vietnam have been active in strengthening their competitiveness implying that Thailand had not. And also from the lips of Somkid he admitted that Malaysia and Vietnam had more efficient management. 

6. A slowdown in the Chinese economy while the Bank of Thailand has tipped a rise in interest rates. 

 

It is good the junta has a dream but like many of their dreams turning them into reality can almost become an impossibility. One of the biggest limiting factors for future development and economic expansion is the appalling education system. The incompetence of junta ministers and administration is also a serious handicap.

 

Edited January 10, 20197 yr by Cadbury

Safety, pollution, and crumbling infrastructure will be important for tourism