Thailand Hits Bottom Of Regional Economies

[solo siam]

Some posters call people like myself, 'doomsayers'. That's a wrong word and misperception.

Critics about the Thai economy (and to a certain point also the political system) like myself, are NOT doomsayers but merely critics with an open eye what's happening in Thailand and the World, as well as the Asian region in general.

99% of the members here on TV are Thailand lovers and it hurts when critics like 'Blam' are told: "if you don't like it..just leave".

The posters who say so, don't understand that we have a good heart for Thailand, feel for the country and it's people but feel sad when we see so many things go wrong in the past period in this lovely country.

That's not called 'doomsaying' but just realizing and noticing facts. Nothing more nothing less.

I've been coming and going, doing business, as well as holidays to Thailand, China and other Far East countries for more than 30 years so I know a little bit what I'm talking about.

If I see, notice and know about the enormous difference in working and moral attitude between Thailand and China, for instance, I can only conclude that Thailand is slipping away, down the hill, and losing track with it's regional competitor countries.

Knowing that most of the important businesses in Thailand are owned and/or controlled by Thai/Chinese I really can't figure out why there is such a big difference in attitude between Thai/Chinese- and mainland Chinese business people.

The only thing I can think of is that mainland Chinese are still very 'hungry' to succeed and trying to fight for every buck and work day-and-night, literally!

The Thai/Chinese are maybe too comfortable with their wealth (built up in many decades and generations) already and just sailed along with rising demand from the West in the past 2 or 3 decades and forgot to watch what was happening in the neighbouring region and rest of the world.

Contrary to the above is the fact that I know that quite a few Thai/Chinese businesses already set foot in mainland China with their companies and/or factories. Those are the ones that realized something was happening around them and had to adjust to the changing circumstances.

But also Western companies saw and realized that, maybe earlier than Thai businessmen. Don't forget that Western business people have access to large and clever Global Accountant/Lawyer companies AND advising Banks who have their offices all around Asia, not just Thailand...

When I set foot for the first time in Hong Kong I was surprised, shocked and amazed by the working attitude of the business people. No matter if it was 6.00AM in the morning or 12.00 at night, everywhere in the lobbies of the hotels you saw and still see hundreds of business people, already or still working with their Western counterparts...

In the same period I worked with, and was buying from medium & large BKK companies...the difference in attitude was enormous and I realized very soon I couldn't go on with them anymore and left doing business with Thailand, but not for holidays

The same attitude like HK I found also in mainland China, in cities like Guangzhou, Shanghai, Hangzhou, Shenzhen, Beijing and the like; I can make appointments in evenings, on Saturdays, Sundays, phone them late at night; no problem....EVERYTHING is possible.

They have still a lot to learn, but they learn fast, willing to climb up the ladder.

Maybe Thailand thought they were already high up the ladder, or hill, whatever you like.

They're not -anymore-.

It's the difference in working and moral attitude; it's probably in the Thai genes; I don't know, maybe you do ?

LaoPo

Maybe its just not that important to the average Thai to be competetive and businesslike, Most of the Thais I know are happy with what they have, whatever it may be - I for one hope and pray that Thailand doesn't turn into another China, I like the laid back style, the "I fancy a sleep at lunchtime" attitude. Its just different, not worse, not better, just different.

I don't ever recall having a conversation with anyone but wealthy Thais where they cared what the exchange rate, GDP etc... was.

I personally wouldn't want to live here if it was all about the work, business and getting ahead - I could go back to the UK if I wanted that.

[chrisspursbkk1]

so what???

so we are not number 1 in asia but we are still doing great

so what if the GDP is lower then last year its till 4.5 %. who ever said you need to be number 1 in GDP.

But is per-capita-GDP the right measure? It depends on what question you are asking. If you ask which country will have the biggest weight in global economics, certainly headline growth is much more important than per capita growth. However, if you are looking whether an economy is able to provide growing prosperity for its citizens, per-capita-GDP is the much better indicator. And on this account, the thais are doing much better then others.

European economic growth is likely to slow going into 2007, as weaker exports to the United States and a softening of consumer demand and business investment take affect amid higher interest rates, international ratings agency Standard & Poor's (S&P) says in its latest economic forecast for the region.

The article, titled, European Economic Forecast: A Strong Year So Far, But

A Slowdown On The Way, is part of a special S&P report in CreditWeek, due for

release on August 30.

"In the Eurozone, the way that higher interest rates affect demand in each country will partly depend on consumers' room for manoeuvre in terms of savings," said Jean-Michel Six, S&P's chief economist for Europe.

"Whereas savings rates are likely to go up in Germany and The Netherlands, thereby amplifying the slowdown, they could edge down in France, Italy, and Spain, mitigating the negative effects of higher interest rates," he added.

Externally, foreign demand for European products is likely to slow in 2007, and the euro exchange rate could well strengthen against the US dollar and the related Asian currencies, as markets focus again on the US current account deficits once the Federal Reserve reaches an end to its monetary tightening cycle.

In this context, Eurozone export growth should decline to 4,5% in 2007 from 6,5% in 2006, thereby slowing GDP growth, the report stated.

Wow what a decline maybe we need to stop investing in European companies. or should we listen tyo all those Western advisors that know how to make thailand a better place but cant do it back where they came from.

and how baout the good old USA.....

GDP growth is forecast to decelerate in 2007 as the housing and manufacturing sectors continue to struggle. This will eventually curb private consumption growth. Businesses are better placed, but they are also likely to restrain their spending in the medium term. Real GDP growth is forecast to average 2.7% per year in 2007-11. wow what a drop from 3.4 lat year.

now i understand why all the forigners are so uptight about thailand. it just better then the western countries and they dont want to go back home....here they can live great and enjoy life on a sum of money that back in the west they can barely survive.

while europe and the usa are very rich they are decaying. there is a negetive birth rate an older population and an ever increasing inflow of immigrants from poor countries that are changing the culture and the economy and not for the better. go anf fix up your own countries before lecturing us about education ignorence and so forth..

Is this a comedy?

[chrisspursbkk1]

Thailand is the escape for the poor of developed countries.

Yes the poor of the developed countries who can come here and live through there days on what tiny ammount they made as a poor person.

So all you poor people, please stop coming here spending all your money when your not taking anything out of the country and just putting in. Really makes sence. Yeah i'm sure.

kuhn, would you be so kind as to show me the reason of this?

[LaoPo]

I for one hope and pray that Thailand doesn't turn into another China, I like the laid back style, the "I fancy a sleep at lunchtime" attitude. Its just different, not worse, not better, just different.

Good point with which I agree. I like Thailand that way also.

China isn't exactly a holiday country like Thailand, apart from their ancient 'wonders' like the Great Wall.

But this topic is about the economical situation in Thailand and the future of it's people.

But, I agree, I like Thailand the way you described it -outside the economical turmoil-.

LaoPo

[the gent]

Given that Thailand's development since the early 1990s started from a relatively low base its failure now to maintain growth can only be viewed with some dismay and yet there are several posters, presumably in full possession of their faculties although one can never be too sure here, who argue that things are generally tickety boo and any criticism of the Thai is denounced as a failure to properly appreciate their ' culture '. Exponents of such unwelcome views are then derided as materialistic eurocentrics and generally advised to bugger off. Why this vicarious sensitivity should be so strongly felt by transient migrants is something of a mystery but I suspect they have either gone ' troppo ' or are stoking up their complacency with too much laughing juice.

Thailand is a poor country whose people are exploited either by design, in the case of government and commercial agencies, or by a social system that differs little from the caste system of India in the bad old days.

Its commercial standing in the world is relatively insignificant as indeed is its cultural contribution, a ranking which troubles the Thai little since their awareness of the world around them is utterly blinkered by an all embracing ignorance and parochiality.

But to say that it enjoys a primacy within its geo-political sphere is inviting us to share a delusion only the dotty nationalistic Thai could entertain.

Perhaps a comparison may be in order. Thailand's per capita GDP struggles to reach 2,000USD compared to the 5,000USD attained by its neighbour Malaysia which generates a GDP of only 40bn USD less than Thailand despite the latter having a population greater by 35 million.

Productivity is poor and it is recognised that any competitive edge the Thai workforce may gain is attributed to the cheapness of its labour allowing for overmanning to compensate. However, inflationary pressures and the need to keep its costs competitive suggests that its manufacturing base may not afford that luxury in the near future.

Education is a key to prosperity but as a proportion of GDP spent on this the Thai rank well down in the region and probably on a par with the Phillipines.

Almost 50% of the workforce are engaged in agriculture which only contributes approx. 9% to GDP, a frightening statistic that graphically accounts for the grinding rural poverty only ameliorated by seasonal construction work and remittances from abroad.

The poor everywhere develop a stoicism out of necessity but the Thai's spin on this is unique and probably accounts for why most of us are so enamoured of them. But to think that they are content with their lot is just plain stupid and fails utterly to address the fact that so many migrate and many resort to prostitution.

[somtaamgaiyang]

Given that Thailand's development since the early 1990s started from a relatively low base its failure now to maintain growth can only be viewed with some dismay and yet there are several posters, presumably in full possession of their faculties although one can never be too sure here, who argue that things are generally tickety boo and any criticism of the Thai is denounced as a failure to properly appreciate their ' culture '. Exponents of such unwelcome views are then derided as materialistic eurocentrics and generally advised to bugger off. Why this vicarious sensitivity should be so strongly felt by transient migrants is something of a mystery but I suspect they have either gone ' troppo ' or are stoking up their complacency with too much laughing juice.

Thailand is a poor country whose people are exploited either by design, in the case of government and commercial agencies, or by a social system that differs little from the caste system of India in the bad old days.

Its commercial standing in the world is relatively insignificant as indeed is its cultural contribution, a ranking which troubles the Thai little since their awareness of the world around them is utterly blinkered by an all embracing ignorance and parochiality.

But to say that it enjoys a primacy within its geo-political sphere is inviting us to share a delusion only the dotty nationalistic Thai could entertain.

Perhaps a comparison may be in order. Thailand's per capita GDP struggles to reach 2,000USD compared to the 5,000USD attained by its neighbour Malaysia which generates a GDP of only 40bn USD less than Thailand despite the latter having a population greater by 35 million.

Productivity is poor and it is recognised that any competitive edge the Thai workforce may gain is attributed to the cheapness of its labour allowing for overmanning to compensate. However, inflationary pressures and the need to keep its costs competitive suggests that its manufacturing base may not afford that luxury in the near future.

Education is a key to prosperity but as a proportion of GDP spent on this the Thai rank well down in the region and probably on a par with the Phillipines.

Almost 50% of the workforce are engaged in agriculture which only contributes approx. 9% to GDP, a frightening statistic that graphically accounts for the grinding rural poverty only ameliorated by seasonal construction work and remittances from abroad.

The poor everywhere develop a stoicism out of necessity but the Thai's spin on this is unique and probably accounts for why most of us are so enamoured of them. But to think that they are content with their lot is just plain stupid and fails utterly to address the fact that so many migrate and many resort to prostitution.

Very aptly put!

Which would probably lead one to believe that there is something in this country perpetuating the poverty would it not, or do people enjoy being poor?

[Mid]

Which would probably lead one to believe that there is something in this country perpetuating the poverty would it not, or do people enjoy being poor?

corruption .............................

[solo siam]

Thai GDP per capita was over $3,000 for 2006, thsi would have increased significantly due to the recent rise in Thai Baht against the US$.

The PPP GDP between those two nations are very close, which is generally how economic profiles are measured nowadays. I'm not exactly sure how the exchange rate affects PPP, but it may indeed end up that the 2007 figures for the two countries (Malaysia and Thailand) are just about on par.

I'm not sure you really understand the Indian Caste system if you think that there is some kind of a parity here in Thailand.

Besides the question again is how is a 5% rise in GDP a "failure to maintain growth" especisally when the PPP is rising quicker than just the pure GDP rate.

[the gent]

Ben

Your pedantry does you proud even if it is at the expense of comprehension.

My figures were taken from published data for the year 2005 and illustrates the point you studiously choose to ignore. Currency fluctuations are irrelevant in the context and do nothing to alter Thailand's economic inferiority to Malaysia.

The fact remains that Thailand is a poor country whose economy is under performing and its prospects are judged by most economic commentators within the region to be ' dim '. Consequently, its position in the region is not as it would wish nor as some would believe, a state of affairs that will only deteriorate further if a 4.7 GDP growth is achieved as per forecasts.

The reference to the Indian caste system was deliberately hyperbolic in order to make the point that social stratification based on birth reinforced by economic deprivation is very much a feature of modern Thai society.

Only a total idiot could argue otherwise

[ThaiGoon]

http://internationaltrade.suite101.com/art...asian_countries

20 Richest Asian Countries (GNP per capita*)

1. Hong Kong (pop. 6,940,432) ... $31,560
   
2. Japan (pop. 127,463,611) ... $29,810
   
3. Singapore (pop. 4,492,150) ... $27,370
   
4. South Korea (pop. 48,846,823) ... $20,530
   
5. Malaysia (pop. 24,385,858) ... $9,720
   
6. Russia (pop. 142,893,540) ... $9,680
   
7. Thailand (pop. 64,631,595) ... $7,930
   
8. Turkey (pop. 70,413,958) ... $7,720
   
9. Kazakhastan (pop. 15,233,244) ... $6,930
   
10. China (pop. 1,313,973,713) ... $5,890
    
11. Philippines (pop. 89,468,677) ... $4,950
    
12. Sri Lanka (pop. 20,222,240) ... $4,210
    
13. Armenia (pop. 2,976,372) ... $4,160
    
14. Azerbaijan (pop. 7,961,619) ... $3,810
    
15. Indonesia (pop. 245,452,739) ... $3,480
    
16. India (pop. 1,095,351,995) ... $3,120
    
17. Georgia (pop. 4,661,473) ... $2,900
    
18. Vietnam (pop. 84,402,966) ... $2,700
    
19. Cambodia (pop. 13,881,427) ... $2,310
    
20. Pakistan (pop. 165,803,560) ... $2,170
    

*based on 2004 PPP GNP per capita in international$

10 Richest Asian Countries (overall GNP by country)

1. China ... $7,739,305,169,570
   
2. Japan ... $3,799,690,243,910
   
3. India ... $3,417,498,224,400
   
4. Russia ... $1,383,209,467,200
   
5. South Korea ... $1,002,825,276,190
   
6. Indonesia ... $854,175,531,720
   
7. Turkey ... $543,595,755,760
   
8. Thailand ... $512,528,548,350
   
9. Philippines ... $442,869,951,150
   
10. Pakistan ... $359,793,725,200
    

Only a total idiot would argue otherwise. Note: A person who's slightly more intelligent than a total idiot should be able to tell that Malaysia's GDP is at least 150bn USD less than that of Thailand.

Edited April 20, 2007 by ThaiGoon

[ThaiGoon]

Thailand - GNP per capita: (2004) 2,540 (nominal U.S.$)

Malaysia - GNP per capita: (2004) 4,650 (nominal U.S.$)

Perhaps a comparison may be in order. Thailand's per capita GDP struggles to reach 2,000USD compared to the 5,000USD attained by its neighbour Malaysia which generates a GDP of only 40bn USD less than Thailand despite the latter having a population greater by 35 million.

My figures were taken from published data for the year 2005

Speaking like a real expert.

[Mid]

wow , big drop from '04 to '05 , already ....................................

[ThaiGoon]

wow , big drop from '04 to '05 , already ....................................

Yeah, it would have made sense if the GPD growth in 2005 had been negative.

Thailand's GDP growth (2005) +4.5% (per CIA.)

Edited April 20, 2007 by ThaiGoon

[ThaiGoon]

The only way to really get ahead in bangkok is to have a rich dad or have corrupt connections.

I have to say this is a really ignorant and extremely stupid statement to make. Plenty of Thais have become successful through hard work and honesty. It's really disrespectful to those people for some farang idiot to say things like this.

[solo siam]

Ben

Your pedantry does you proud even if it is at the expense of comprehension.

My figures were taken from published data for the year 2005 and illustrates the point you studiously choose to ignore. Currency fluctuations are irrelevant in the context and do nothing to alter Thailand's economic inferiority to Malaysia.

The fact remains that Thailand is a poor country whose economy is under performing and its prospects are judged by most economic commentators within the region to be ' dim '. Consequently, its position in the region is not as it would wish nor as some would believe, a state of affairs that will only deteriorate further if a 4.7 GDP growth is achieved as per forecasts.

The reference to the Indian caste system was deliberately hyperbolic in order to make the point that social stratification based on birth reinforced by economic deprivation is very much a feature of modern Thai society.

Only a total idiot could argue otherwise

My figures where taken from published data from the year 2006 so already Thailand is quickly closing the gap, which makes your point even more superfluous.

The Indian caste system has little to do with wealth distribution and more to do with religion.

Thailands GDP per PPP has increased at a quicker rate than the GDP alone, which is a good economic indicator. Both of which have been considerably higher than inflation, I still don't see the stagnation, Im sorry. argumentum ad hominem does little to convince me or anyone else of your incorrect point of view.

Edited April 20, 2007 by Ben@H3-Digital

[the gent]

Honestly, anyone would think there was something at stake here beyond the vanity of silly post adolescents incapable of arguing a point cogently.

However, not to be outdone by the aptly named Thaigoon, a soubriquet of two syllables of which the latter may well be the most significant, I have referenced the Economist on the subject of GDP records for the year 2006 which show that Malaysia generated 148.9 bn whereas Thailand achieved a paltry 206.2 bn. The differential is in line with my earlier post although I do acknowledge that Malaysia may well have made inroads in reducing the gap in populations............... , subject of course to currency fluctuations.

Am I right in thinking TG and the obtuse Ben are either young or possibly English teachers?

[solo siam]

Honestly, anyone would think there was something at stake here beyond the vanity of silly post adolescents incapable of arguing a point cogently.

However, not to be outdone by the aptly named Thaigoon, a soubriquet of two syllables of which the latter may well be the most significant, I have referenced the Economist on the subject of GDP records for the year 2006 which show that Malaysia generated 148.9 bn whereas Thailand achieved a paltry 206.2 bn. The differential is in line with my earlier post although I do acknowledge that Malaysia may well have made inroads in reducing the gap in populations............... , subject of course to currency fluctuations.

Am I right in thinking TG and the obtuse Ben are either young or possibly English teachers?

You keep using what I'm guessing you think are "big" words, but simply personally attacking those with a better argument isn't proving much , I have absolutely nothing at stake here, which is why I'm not the one calling another insulting names.

Lets see, so far you have called me pedantic, obtuse, a total idiot, a teacher and even young! (should I be offended by either?) and yet still my points stand and your arguments are weak and seemingly entirely based on personal attacks.

In regards to currency fluctuations, GDP is measured purely in $ terms, the Thai baht has increased 15% or so against the dollar, do you really fail to see the relevance? If so I'm intrigued at the reasoning behind that, especially when you are trying to measure it agianst an economy whos currency hasn't gained a similar amount.

Besides I fail to see how calling someone "post adolescent" is an insult, are you not "post adolescent"?

Edited April 20, 2007 by Ben@H3-Digital

[endure]

Personal insults lead to holidays. Stop it.

[appleman_thai]

we all must have had our fair share of shaking our heads and grinding our teeth, but there is always the alternative "if you don't like... LEAVE!"

Fair point!

And I have left - albeit with a little help from the govt and visa changes!

I didnt want to leave but felt i had no choice!

I think most of the gloom on the forum is justfied! You gotta accept that things just are not going well in Thailand - certainly things have gone down over the last few years and especially over the last 12 months!

Another thing that frustrates people enormously is that they feel that really stupid and simple mistakes are being made! They offer solutions but some people just put on their rose coloured glasses and ignore the warning signs!

Things will get worse economically and socially in THailand over the next 2 years. THis is not solely the fault of the Thais themselves - in fact, the global economy is going through some turmoil so that will hurt THailand too!

THe worrying fact for me is that other regional countries in SEA are actually improving and this is what could b a real longterm threat to Thailand!

The sooner we(they) have fair and democratic elections the better!

[jumnien]

Two points.

One, the decrease in the robustness of the Thai economy is wonderful news for those of us who live here.

Visa changes are one of the top reasons people are moving to Thailand. At least here in Hua Hin, many people got very tired of 30 day visa runs to Ranong. Now that they have been prodded into obtaining 1 year visas, they feel far more comfortable in staying here on a long term basis.

[ThaiGoon]

I have referenced the Economist on the subject of GDP records for the year 2006 which show that Malaysia generated 148.9 bn whereas Thailand achieved a paltry 206.2 bn.

From the economist: Malaysia's GDP per head (US$; market exchange rate) is 5,591, while Thailand's is 3,120.

And by the way, 206.2-148.9 is about 58bn. Seems like your rough estimates of anything Thail are significantly lower than the actual numbers. I know you badly and desperately want to put Thailand down, but this is a pretty sad and pathetic attempt.

[Brutiniero]

@Thaigoon,

you are just ............ soooooooooo polite.

A fine example of your countryman

[ThaiGoon]

@Thaigoon,

you are just ............ soooooooooo polite.

A fine example of your countryman

I'm polite to polite people, and it shouldn't take an Einstein to see that.

Edited April 21, 2007 by ThaiGoon

[Flysiam]

@Thaigoon,

you are just ............ soooooooooo polite.

A fine example of your countryman

I'm polite to polite people, and it shouldn't take an Einstein to see that.

But it takes a real man to be polite to those that aren't

[solo siam]

we all must have had our fair share of shaking our heads and grinding our teeth, but there is always the alternative "if you don't like... LEAVE!"

Fair point!

And I have left - albeit with a little help from the govt and visa changes!

I didnt want to leave but felt i had no choice!

I think most of the gloom on the forum is justfied! You gotta accept that things just are not going well in Thailand - certainly things have gone down over the last few years and especially over the last 12 months!

Another thing that frustrates people enormously is that they feel that really stupid and simple mistakes are being made! They offer solutions but some people just put on their rose coloured glasses and ignore the warning signs!

Things will get worse economically and socially in THailand over the next 2 years. THis is not solely the fault of the Thais themselves - in fact, the global economy is going through some turmoil so that will hurt THailand too!

THe worrying fact for me is that other regional countries in SEA are actually improving and this is what could b a real longterm threat to Thailand!

The sooner we(they) have fair and democratic elections the better!

I think this provides insight into why people on here are so gloomy, its anger at the change in some of the regulations which has made it harder for some to stay - I can understand that as it's a pain to keep up with the paperwork etc... needed to stay here. personally in Phuket I have seen very little to suggest some sort of downturn, perhaps its a bubble here but I would say growth in Phuket is huge, many Thai's working here earn as much or even substantially more than most middle-class Thais in Bangkok.

[mumbu]

blam, you must like it here and have been successful to have stayed for 22 years, 20 rai on Phuket is worth more than the total amount of money you have put into the local economy in your entire stay, I'm also guessing that you took some money out as well so obviously the economy has been good for you.

I just dont see a problem with a 5% or so rise in GDP, especially when measured against regional economies a 1/4 of the size.

In terms of companies, I can suggest some very successful Global partners manufacturing in Thailand including Samsung and Philips just off the top of my head, In regards to people like Toshiba, Sanyo and Sharp - those products are generally not as popular as the Korean products are nowadays, so are losing market share to the likes of LG and Samsung at quite a rate, I don't see how Thailand can be blamed for that.

It makes no difference to me if Thailand becomes a powerhouse or not, I would strongly disagree that a minimum of 5% growth over the last 5 years whilst weathering the Tsunami, Bird Flu, a coup etc... is a sign of a sick economy.

You do not need to be an economist to understand that Thailand is doomed if it continues in the current direction. It suffices to ask

the following question: What Thailand can produce that China cannot?

The answer is nothing. China can produce anything that Thailand does but cheaper, much cheaper...

Thaksin tried to put Thailand in the direction of Japan, Singapore, South Korea etc. Did he have a chance? I do not know but the mentality of present leadreship of Thailand simply leave no room for successful future...

Excellent post Mr Blam..

Edited April 21, 2007 by mumbu

[highdiver]

@Thaigoon,

you are just ............ soooooooooo polite.

A fine example of your countryman

I'm polite to polite people, and it shouldn't take an Einstein to see that.

Dear TG

dont take to heart. some people rather belive in fiction then in the truth. thailand is doing great and will do great for thai people in the future.

dont get teased by those "economics" advisors who come from countries that are "so good"they prefer to come and live here.

dont be offended. if they dont like thailand and its laid back culture. they can allways go to the wonderful china , or vietnam both of whom are free democracies where human rights are respected or the fastly becoming muslim extreme malasia where forigners are deeply loved.

and do be polite as we were tought at home to be polite to our guests even if they dontr behave like ones.

[bingobongo]

@Thaigoon,

you are just ............ soooooooooo polite.

A fine example of your countryman

I'm polite to polite people, and it shouldn't take an Einstein to see that.

Dear TG

dont take to heart. some people rather belive in fiction then in the truth. thailand is doing great and will do great for thai people in the future.

dont get teased by those "economics" advisors who come from countries that are "so good"they prefer to come and live here.

dont be offended. if they dont like thailand and its laid back culture. they can allways go to the wonderful china , or vietnam both of whom are free democracies where human rights are respected or the fastly becoming muslim extreme malasia where forigners are deeply loved.

and do be polite as we were tought at home to be polite to our guests even if they dontr behave like ones.

laid back = lazy? unmotivated perhaps? living in denial?

for those keeping score

thaigoon: 0

highdiver: 0

reality: 2 (TG knows what i mean)

as for "economic advisors outside the country", here is one from Thailand just to be fair

Business >> Saturday April 21, 2007

Bank profits mostly fall in first quarter

NPLs rise due to slowing economy

DARANA CHUDASRI

Market leader Bangkok Bank reported first-quarter consolidated profits of 4.63 billion baht yesterday, down 11% from profits of 5.18 billion the year before.

Profits for the bank alone totalled 4.66 billion baht in the first quarter, up from 4.63 billion the same period last year.

Earnings for local banks have generally fallen in the first quarter compared with last year, but have picked up from the fourth quarter on stronger interest margins and lower provisioning expenses.

Therapong Vachirapong, an analyst at Phatra Securities, said bank results overall were in line with market expectations.

''One worry is that in the first quarter, we saw non-performing loans rise across the board, reflecting the economic slowdown,'' he said. ''Non-performing loans, asset quality and the economy will be concerns through the rest of the year.''

Mr Therapong said one fear was that even with interest rates on the downturn, banks could cut back in their lending due to asset quality concerns, leading to a possible credit crunch that would worsen economic conditions.

For Bangkok Bank, net profits rose 27.5% from the previous quarter, with net interest margins of 3.15% at the end of March. The bank set aside 1.315 billion baht in provisions in the first quarter, on par with the same period last year and sharply lower than the one-time adjustment of 5.9 billion booked in the fourth quarter of last year.

Tax expenses in the first quarter also rose to 2.19 billion baht, compared with 349 million in the fourth quarter when the bank enjoyed special deductions.

Loans rose slightly to 959.24 billion baht at the end of March, with non-performing loans stable at 89.32 billion, or 9.2% of total loans. Non-interest expenses fell 8.7% year-on-year to 8.16 billion baht in the first quarter.

Krung Thai Bank, the second largest in terms of assets, reported first-quarter profits of 4.4 billion baht, down 5% from 4.64 billion the same time last year.

Net interest and dividend income fell 5.68% from the year before, while pre-provisioning net profits dropped 23.81% year-on-year to 5.5 billion baht in the first quarter. The state-owned bank set aside 1.1 billion baht in loan provisions in the first quarter, with gross non-performing loans up 5.5% for the first three months to 94.62 billion baht, or 9.82% of total loans.

Kasikornbank reported first-quarter consolidated profits of 3.87 billion baht, up 7% from 3.61 billion last year. Net interest and dividend income rose 4.77% to 8.823 billion baht, while non-interest income rose 35.53% to 4.2 billion.

The bank's net interest margin for the fourth quarter was 3.97%, down from 4.05% at the end of 2006, due to declines in deposit and lending rates. The bank had loan growth of 1.12% in the first quarter, with 1.025 billion baht worth of new provisions set aside in the quarter.

Non-performing loans rose slightly to 7.14% of total loans at the end of March compared with 6.84% at the end of 2006, reflecting the weaker economy.

Prasarn Trairatvorakul, Kasikornbank's president, said first-quarter results generally exceeded market expectations.

''When the economy slows, we must grow sensibly and pay attention to asset quality,'' he said, adding that the rise in non-performing loans reflected both the slowing economy and the bank's more prudent approach to restructuring bad debt.

''The increase mirrors prevailing market conditions in a slowing economy. This clearly justifies our cautious approach to asset expansion,'' he said.

Other banks reporting yesterday include ACL Bank, with first-quarter profits of 115.4 million baht, down 50% from 230.78 million last year. It blamed an 80-million-baht provision for litigation and added operating expenses from the bank's branch expansion.

Standard Chartered Bank (Thai) reported first-quarter profits of 707.8 million baht, down 46% from profits of 1.31 billion last year. It attributed this to last year's one-off release of provisions and exchange revaluation gains. On a quarterly basis, first-quarter net profits rose by 34% from the fourth quarter of 2006. Total income for the first quarter rose 7% year-on-year to 3.24 billion baht.

http://www.bangkokpost.com/Business/21Apr2007_biz01.php

Edited April 21, 2007 by bingobongo

[highdiver]

@Thaigoon,

you are just ............ soooooooooo polite.

A fine example of your countryman

I'm polite to polite people, and it shouldn't take an Einstein to see that.

Dear TG

dont take to heart. some people rather belive in fiction then in the truth. thailand is doing great and will do great for thai people in the future.

dont get teased by those "economics" advisors who come from countries that are "so good"they prefer to come and live here.

dont be offended. if they dont like thailand and its laid back culture. they can allways go to the wonderful china , or vietnam both of whom are free democracies where human rights are respected or the fastly becoming muslim extreme malasia where forigners are deeply loved.

and do be polite as we were tought at home to be polite to our guests even if they dontr behave like ones.

laid back = lazy? unmotivated perhaps? living in denial?

for those keeping score

thaigoon: 0

highdiver: 0

reality: 2 (TG knows what i mean)

as for "economic advisors outside the country", here is one from Thailand just to be fair

As you seem unfemilier with bank reporting lets bring you up to date.

now I inderstand why Thai goon looses it with so many "know all"that just dont understand what they are reading. iam pointing in red for you for cleare reading.

I

Business >> Saturday April 21, 2007

Bank profits mostly fall in first quarter

NPLs rise due to slowing economy

DARANA CHUDASRI

Market leader Bangkok Bank reported first-quarter consolidated profits of 4.63 billion baht yesterday, down 11% from profits of 5.18 billion the year before.

Profits for the bank alone totalled 4.66 billion baht in the first quarter, up from 4.63 billion the same period last year.

Earnings for local banks have generally fallen in the first quarter compared with last year, but have picked up from the fourth quarter on stronger interest margins and lower provisioning expenses.

Therapong Vachirapong, an analyst at Phatra Securities, said bank results overall were in line with market expectations.

''One worry is that in the first quarter, we saw non-performing loans rise across the board, reflecting the economic slowdown,'' he said. ''Non-performing loans, asset quality and the economy will be concerns through the rest of the year.''

Mr Therapong said one fear was that even with interest rates on the downturn, banks could cut back in their lending due to asset quality concerns, leading to a possible credit crunch that would worsen economic conditions.

For Bangkok Bank, net profits rose 27.5% from the previous quarter, with net interest margins of 3.15% at the end of March. The bank set aside 1.315 billion baht in provisions in the first quarter, on par with the same period last year and sharply lower than the one-time adjustment of 5.9 billion booked in the fourth quarter of last year.

Tax expenses in the first quarter also rose to 2.19 billion baht, compared with 349 million in the fourth quarter when the bank enjoyed special deductions.

Loans rose slightly to 959.24 billion baht at the end of March, with non-performing loans stable at 89.32 billion, or 9.2% of total loans. Non-interest expenses fell 8.7% year-on-year to 8.16 billion baht in the first quarter.

Krung Thai Bank, the second largest in terms of assets, reported first-quarter profits of 4.4 billion baht, down 5% from 4.64 billion the same time last year.

Net interest and dividend income fell 5.68% from the year before, while pre-provisioning net profits dropped 23.81% year-on-year to 5.5 billion baht in the first quarter. The state-owned bank set aside 1.1 billion baht in loan provisions in the first quarter, with gross non-performing loans up 5.5% for the first three months to 94.62 billion baht, or 9.82% of total loans.

Kasikornbank reported first-quarter consolidated profits of 3.87 billion baht, up 7% from 3.61 billion last year. Net interest and dividend income rose 4.77% to 8.823 billion baht, while non-interest income rose 35.53% to 4.2 billion.

The bank's net interest margin for the fourth quarter was 3.97%, down from 4.05% at the end of 2006, due to declines in deposit and lending rates. The bank had loan growth of 1.12% in the first quarter, with 1.025 billion baht worth of new provisions set aside in the quarter.

Non-performing loans rose slightly to 7.14% of total loans at the end of March compared with 6.84% at the end of 2006, reflecting the weaker economy.

Prasarn Trairatvorakul, Kasikornbank's president, said first-quarter results generally exceeded market expectations.

''When the economy slows, we must grow sensibly and pay attention to asset quality,'' he said, adding that the rise in non-performing loans reflected both the slowing economy and the bank's more prudent approach to restructuring bad debt.

''The increase mirrors prevailing market conditions in a slowing economy. This clearly justifies our cautious approach to asset expansion,'' he said.

Other banks reporting yesterday include ACL Bank, with first-quarter profits of 115.4 million baht, down 50% from 230.78 million last year. It blamed an 80-million-baht provision for litigation and added operating expenses from the bank's branch expansion.

Standard Chartered Bank (Thai) reported first-quarter profits of 707.8 million baht, down 46% from profits of 1.31 billion last year. It attributed this to last year's one-off release of provisions and exchange revaluation gains. On a quarterly basis, first-quarter net profits rose by 34% from the fourth quarter of 2006. Total income for the first quarter rose 7% year-on-year to 3.24 billion baht.

http://www.bangkokpost.com/Business/21Apr2007_biz01.php

yes the econmy is slowing a bit but it is doing so nearly all over the world. and its bound to affect thailand.

the huge capital flow by forign hedge funds and speculators is what realy killing the economy.

[cdnvic]

yes the econmy is slowing a bit but it is doing so nearly all over the world. and its bound to affect thailand.

the huge capital flow by forign hedge funds and speculators is what realy killing the economy.

Ah yes. It's the foreigners fault

THAT, is third world thinking at it's best.