Thai economy no longer a subject of global interest, new report says

[webfact]

 

By Panithan Onthaworn

 

Thailand’s economy has crossed a tipping point with the country beginning to be losing global interest, said a new research report from the Kiatnakin Phatra Financial Group (KKP).

 

Relocation of production bases, falling direct investment, and a slowdown in the export sector shows that Thailand no longer stands out among other countries in the global economy, said Lattakit Lapudomkarn, KKP economic analyst.

 

KKP has noticed continual stock sell-offs in Thai market from foreigners since 2015, a year after a military coup.

 

Full story: https://www.thaienquirer.com/30143/thai-economy-no-longer-a-subject-of-global-interest-new-report-says/

 

-- © Copyright Thai Enquirer 2021-07-20

 

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[Gottfrid]

16 minutes ago, webfact said:

Thailand’s economy has crossed a tipping point with the country beginning to be losing global interest

Who would have thought that such a bad thing would happen?

[ikke1959]

Thank you big leader....really happiness to the people.. More reasons why he should stop... 

[Fromas]

Economies are rebalancing and not all news is bad. Rubber exports have gone up, for instance.

[RotBenz8888]

Baht is the last thing that'll be devalued. Oh, and the shoebox condos. 

[Denim]

25 minutes ago, Fromas said:

Economies are rebalancing and not all news is bad. Rubber exports have gone up, for instance.

So they have bounced back ?

[ArcticFox]

Hey!  I have a great idea!  Let's stop the export of AstraZenaca vaccines out of the country and keep them for ourselves.  So what if all those other ASEAN countries cry and moan about "contracts."  Want to see something more powerful than a stinking contract?  Control of manufacturing and control of the export of vaccines.  Ha ha ha - we'll show them who is "Boss!"

In boardrooms across the globe in 2022:
"And about those plans we had for manufacturing and investment in Thailand?  We need to rethink those and start negotiations with other potential host countries.  And get our guys in Legal to review all outstanding contracts made with all Thai companies and institutions. That AstraZenaca debacle was a wake-up call."

[Dmitry2222]

25 minutes ago, Fromas said:

Economies are rebalancing and not all news is bad. Rubber exports have gone up, for instance.

yes rubber trees are difficult to relocate ????

[smedly]

32 minutes ago, Fromas said:

Economies are rebalancing and not all news is bad. Rubber exports have gone up, for instance.

as usual it is how it is reported - rubber exports might have gone up but from were - all time highs or last year - you really need to pay attention to how these reports are worded 

 

Like if I said tourism numbers in Thailand had increased 50% from last year - what does that actually mean 

[Fromas]

Worldwide demand for rubber has not gone down. Thailand's percentage production has not gone down. The downward trend probably relates to logistical supply chain issues.

 

Where's YOUR data?

[bkk6060]

They don't want to admit tit but all this place has ever survived on is wild west attitude tourism.

That is gone, so now what?

[JonnyF]

A lot of the investment here was made during the Thaksin years when Thailand was a great place to invest.

 

Since 2014, money was bound to stop coming, and even start leaving (gradually). Foreign companies don't tend to like unstable, illegal, corrupt regimes run by Generals where laws can change at the drop of a hat and permits, licences etc. involve kickbacks. 

[Taboo2]

Thailand will be fine...this is just a hiccup.  Every country in the world is hurting right now...look at the Wh*** at the G20 Mafia and other countires...and how they all suddenly agree on a new Global Tax (15%)...yeah right!

 

The USA is printing money and spending it like a Two Week Millionaire at the Top Shelf Go Gos on WS.  We will be in serious trouble when that bill comes due.

 

As soon as Thailand learn how to manage a Pandemic and the numbers drop, the Chinese, Indians, Europeans and Americans(North and South) will return.

 

It is a pandemic and all countries have no clue on how to manage this Virus.

[Tanomazu]

13 minutes ago, Taboo2 said:

It is a pandemic and all countries have no clue on how to manage this Virus.

I think you need to actually read the article.

 

"KKP has noticed continual stock sell-offs in Thai market from foreigners since 2015, a year after a Prayut Chan-ocha led military coup.

 

According to the report, between 2016-2019, Thailand only received around 10 per cent of foreign investment coming into the region whereas between 2005 to 2007 that number was closer to 30 per cent."

 

Clearly the decline of overseas interest in the Thai economy long preceded the onset of the virus.

 

I suspect the massive flooding in Bangkok, when Japanese manufacturers could not supply the world market because of disruptions in Bangkok did not help.

[Rimmer]

A troll post has been removed

[LeatFingies]

1 hour ago, RotBenz8888 said:

Baht is the last thing that'll be devalued. Oh, and the shoebox condos. 

Hopefully that will be after I convert all my cash back into dollars after I move back home.

[MasterBaker]

Tourism seems to be doing just fine

[CharlieH]

Reported troll comment removed

[PETERTHEEATER]

4 hours ago, Fromas said:

Economies are rebalancing and not all news is bad. Rubber exports have gone up, for instance.

Due to world demand rubber will always bounce back. Palm oil exports have slumped due to a reduction of hands to be greased. Saddened to hear that Somchai Chocolate Ltd has gone under due to lack of demand for its teapots.

[hotchilli]

5 hours ago, webfact said:

Thailand’s economy has crossed a tipping point with the country beginning to be losing global interest, said a new research report from the Kiatnakin Phatra Financial Group (KKP).

Thailand is now being seen globally for what it really is... warts and all.

[Isaan sailor]

Baht has retreated somewhat.  Still has a long way to go to have a competitive economy.

[Cake Monster]

3 hours ago, Tanomazu said:

I think you need to actually read the article.

 

"KKP has noticed continual stock sell-offs in Thai market from foreigners since 2015, a year after a Prayut Chan-ocha led military coup.

 

According to the report, between 2016-2019, Thailand only received around 10 per cent of foreign investment coming into the region whereas between 2005 to 2007 that number was closer to 30 per cent."

 

Clearly the decline of overseas interest in the Thai economy long preceded the onset of the virus.

 

I suspect the massive flooding in Bangkok, when Japanese manufacturers could not supply the world market because of disruptions in Bangkok did not help.

Thailand had started to decline as an Investment and Production Center as long ago as Q 4 2019.

Exports then were down some 20 %, and FDI was starting to dry up also.

With this latest AZ quarrel, there will certainly be Companies looking at their future Investment strategies within SE Asia, and some will decide that to do Business in Thailand is too unstable.

Some Companies such as Airbus and Toyota saw this back in Q 4 2019, and decided to move out of Thailand for future Investment.

Airbus pulled the plug on a Joint adventure in Sattahip with Thai Airways, and Toyota built a new production and assembly facility over the Border in Poipet Cambodia.

Both of these were slated as Blue Chip Investments in the EEC, and both were lost.

 

[Tanomazu]

8 minutes ago, Cake Monster said:

Thailand had started to decline as an Investment and Production Center as long ago as Q 4 2019.

Exports then were down some 20 %, and FDI was starting to dry up also.

With this latest AZ quarrel, there will certainly be Companies looking at their future Investment strategies within SE Asia, and some will decide that to do Business in Thailand is too unstable.

Some Companies such as Airbus and Toyota saw this back in Q 4 2019, and decided to move out of Thailand for future Investment.

Airbus pulled the plug on a Joint adventure in Sattahip with Thai Airways, and Toyota built a new production and assembly facility over the Border in Poipet Cambodia.

Both of these were slated as Blue Chip Investments in the EEC, and both were lost.

 

The constant unrest is certainly not helping investor confidence right now.

 

Maybe wages rising in Thailand also made it less attractive, compared to places like Cambodia.

 

 

 

 

[Muhendis]

5 hours ago, Fromas said:

Economies are rebalancing and not all news is bad. Rubber exports have gone up, for instance.

And don't forget the millions, especially from the UK (thankyou BBC for such a glowing report), who are about to come flooding into the Phuket sandbox.

[ArcticFox]

4 hours ago, Taboo2 said:

Thailand will be fine...this is just a hiccup.  Every country in the world is hurting right now...look at the Wh*** at the G20 Mafia and other countires...and how they all suddenly agree on a new Global Tax (15%)...yeah right!

 

The USA is printing money and spending it like a Two Week Millionaire at the Top Shelf Go Gos on WS.  We will be in serious trouble when that bill comes due.

 

As soon as Thailand learn how to manage a Pandemic and the numbers drop, the Chinese, Indians, Europeans and Americans(North and South) will return.

 

It is a pandemic and all countries have no clue on how to manage this Virus.

Mankind has been managing viruses for thousands of years.
It wasn't until 2020 that they decided to make a virus into a propaganda and pharmaceutical marketing show.
They are handling it.  They are making the wealthy a few trillion bucks richer while they gut the 99%.  It seems to be moving along just fine.  Goals for Agenda 2030 and 2050 require that the average plebs have minuscule 'carbon footprints' so tourism will be an industry in terminal decline.
Tourism pre-2020 ain't ever coming back.  What will eventually be called New Normal Tourism will be an exercise in elitism.  You can take that to the bank - fiat and carbon.

[Dogmatix]

The way out 

According to Lattakit, “the private sector can help boost the country’s competitiveness but the government must be ready to help.”

The solutions are as follows:

1. Improving the quality of manufacturing facilities

2. Expanding market size

3. Enhancing Infrastructure

4. Encouraging transparent economic institutions.

Actually Thailand's share of foreign direct investment in ASEAN has also been decliing over 25-30 years.  That means innovations have not been brought to Thaiand and competitiveness has been declining.  Former communist countries in the region have produced new investment codes for foreigners that are more competitive than Thailand. All this results in nothing interesting for portfolio investments to buy in the stock market. Thailand has no tech sector and only a couple of world class companies.  The liist of 4 solutions is missing some key ingredients, e.g.

 

1.  A democratic system of government with mechanisms to prevent coups.

2.  Proper rule of law to protect contracts and foreigners' investments.

3. Government honoring contracts it enters into with foreign firms instead of always changing the rules and refusing to pay settlements awarded by courts. 

4. A sharp reduction in corruption. 

5,  A new investment code that allows foreigners to own 100% of their own businesses in nearly all sectors and to own land needed for business. 

6. A complete revamp and modernisation of the education system with no more rote learning and flag saluting with emphasis on radically upgrading English skills by hiring more native speaker teachers.  Most of Thailand's children are just wasted human resources.  If only Chinese Thai children are given the opportunity for good education and jobs the pool of knowledge workers is too small to attract foreign investors. 

 

I guarantee the complete list would result in a substantial increase in foreign direct investment and foreign portfolio investment over time. 

 

 

 

 

[MrJ2U]

To much bureaucracy and red tape.

 

I'll probably be the hundredth poster to say this.

 

 

[Lingba]

long over due

[Isaan sailor]

If you ran a multinational company and needed to expand into SE Asia, would you locate in a country with strong ties to China?  Or would you locate in a country who competes with China?

[86Tiger]

“5,  A new investment code that allows foreigners to own 100% of their own businesses in nearly all sectors and to own land needed for business.”

 

I have never understood how they can expect any one to automatically give controlling interest in an investment to a Thai person/company and believe it will be successful in attracting business investment.