Boi Investments Figures Down

[george]

Applications for investment promotions to reduce this year

BANGKOK: -- Permanent Secretary for Industry Chakramon Pasukvanich on Monday conceded total applications for investment promotion privileges for this year would reduce from those of last year due to political uncertainties and a global economic slowdown.

Speaking as a member of the Board of Investment, he said total sales in many industries including automobile had begun to increase at a slower pace upon concern of rising fuel prices and higher interest rates.

It is expected the global economic slowdown and the local political impasse would drag on until next year.

As a result, he said, BOI planned to revise the total applications for investment promotions this year downward to around 750 billion baht close to 700 billion baht last year.

“The global economic slowdown is beyond control as many countries around the world experience the same fate.

“For political uncertainties, BOI has been assigned to explain to investors its policy will remain intact although there is a change in the government,” he said.

Mr. Chakramon said he had instructed BOI to speed up clarifying the current political woes to give individual investors proper understanding of the situation.

BOI had also been assigned to explain through the Foreign Chamber of Commerce that although there is a change in Thai politics, the investment promotion policy had never been affected.

He said a delay or change in mega-infrastructure projects had nothing to do with the BOI’s policy.

He added he had recently met with top executives of 3-4 companies in auto, electrical appliance and electronics industries to explain the investment policy of Thailand.

They understood the situation and were ready to invest more. However, top executives at a regional level decided to put a brake on investment because they are uncertain about the Thai political woes.

In the first five months of this year, the applications for the BOI’s promotional privileges totaled around 128.64 billion baht, down from 346.6 billion baht in the same period last year.

--TNA 2006-06-26

[PeaceBlondie]

Applications for investment promotions to reduce this year

BANGKOK: -- Permanent Secretary for Industry Chakramon Pasukvanich on Monday conceded total applications for investment promotion privileges for this year would reduce from those of last year due to political uncertainties and a global economic slowdown.

........In the first five months of this year, the applications for the BOI’s promotional privileges totaled around 128.64 billion baht, down from 346.6 billion baht in the same period last year.

--TNA 2006-06-26

Without getting out my calculator, that looks like a decrease of over 60% - good grief! Isn't foreign investment a huge factor in the Thai economy? Do those figures only apply to the BOI's promotional privileges program, or to all foreign investment?

Rats, sinking ship?

[veteran]

TIT:

[cclub75]

Without getting out my calculator, that looks like a decrease of over 60% - good grief! Isn't foreign investment a huge factor in the Thai economy? Do those figures only apply to the BOI's promotional privileges program, or to all foreign investment?

First, we can point out the glorious optimism of thai authorities. Always.

2005, in 5 month = 364 billions and for the whole year 700 billions

2006 in 5 month = 128 billions and for the whole year 750 billions (forecast)

Great, isn't it ?

Okay, okay, maybe they have a very big one in their pocket who will apply in the second semester... Maybe.

Furthermore, don't be so down to earth : no, foreign investments are not important for the country.

They are just essentials.