Foreigners urged to capitalise on Thai turnaround

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INVESTMENT
Foreigners urged to capitalise on Thai turnaround
Erich Parpart
The Nation

BANGKOK: -- Bank of Thailand Governor Prasarn Trairatvorakul assured foreign investors of the financial authorities' readiness to cope with market volatility, showing his confidence that the economy would show higher growth rate on the back of greater political stability.

"The Bank of Thailand has implemented an accommodative monetary policy since the beginning of the year, while price and financial stability were also carefully monitored to ensure they were not compromised. The accommodative stance has shored up demand up until now, with businesses gradually upgrading and adding capacity during the downturn, and as we enter recovery, they have retained the ability to resume production at normal levels," he said at "Thai Forum".

"Recent economic data is supportive, showing that consumption and tourism have started to pick up and stimulus measures from the government have risen," he added at the roadshow, hosted by the Stock Exchange of Thailand. American institutional investors with assets under investment of more than US$4.5 trillion attended the event.

Prasarn told investors to concentrate on Thailand's economic growth next year since the country is now focusing on restoring its normal growth, which pushed the central bank to step in with policy that shores up demand.

"The country is now at an important juncture. Political uncertainty has subsided and some promising government plans have been put in place. Therefore, there is no better time for domestic and international investors alike to capitalise on the new wave of growth," BOT Governor Prasarn Trairatvorakul said at "Thai Forum 2014" in New York.

Prasarn explained the return of government spending should help encourage the private sector to increase their investment next year while saying the World Bank's estimation for the country's domestic consumption in each quarter of 2015 is lower than the BOT's projection.

As for the high level of household debt, the BOT governor said that a mid-term fix for the problem could be done via the increase of financial literacy along with the aim to level economic and income opportunities while gunning to lower inequality and proper redistribution in the long-term.

The BOT's team also clarified to foreign investors that the central bank would issue bonds to fund the government's infrastructures projects and BOT has revealed that foreign investors are interested in private bonds that are issued in currencies besides the baht.

International Monetary Fund managing director Christine Lagarde said emerging markets should brace for two things as advanced economies continue with monetary normalisation - a welcome strengthening of external demand and the possibility of negative spillovers via capital flow volatility.

The comment was made at the Global Policy Agenda meeting in New York, which is presented semi-annually to the IMF's International Monetary and Financial Committee.

"Exchange rates should generally act as a shock absorber," Lagarde said. "Intervention can help counter disorderly conditions, including disruptive short-term exchange rate movements, provided reserves are adequate."

Source: http://www.nationmultimedia.com/business/Foreigners-urged-to-capitalise-on-Thai-turnaround-30245139.html


-- The Nation 2014-10-10

[hansgruber]

How about fixing company structures. That would do more for foreign investment than anything else.

People tend to shirk away when they cant own anything outright.

Sent from my LG-D858

[kurnell]

This is heartening that Thais are thinking about foreigners

[cloudhopper]

"The Bank of Thailand has implemented an accommodative monetary policy since the beginning of the year, "

Translation - printing and spending money like crazy. This is the primary reason for price inflation.

[shirtless]

Investing here in Thailand poses to many risks, the first is 49/51 , when will western governments make these rules apply to thai nationals , or rally to change ownership rules in Thaiand

[Thailand]

What turnaround?

[virtualtraveller]

As a small business owner the biggest threat is the incoherent policies and uncertainty from politics, it scares away customers from abroad, especially if you're in the travel sector or related business. Thailand has been week in this area for ages.

[Thai at Heart]

Returned stability?

How long to the next election? Who's going to win? What will be the structure? Who's going to jail? Any protests likely? And the list goes on....

[CraigSchuler]

You want foreigners to invest in a country where they could be expelled from at a moments notice?......

[Bluespunk]

This is heartening that Thais are thinking about foreigners

About their money anyway.

[FireMedic]

Why would a real foreign business want to invest here? Consistently unstable governments, fluctuating exchange rates, and otherwise unqualified staff make it very hard to succeed.

[IMA_FARANG]

Funny how just two days ago I saw a short report from a "financial advisor" who suggested that the Thai Baht was about to drop against foreign currencies as it was currently overvalued.

Of course as the saying goes, "opinions are like a _ _holes, everybody has one".

I don't have any "money": to invest anyhow, so I'm a non-combatant.

But if I did have money to invest, I don't think it would be invested in Thailand in preference to other places.

[CobraSnakeNecktie]

A lottery ticket would be a better investmet

[IamNoone88]

"The country is now at an important juncture. Political uncertainty has subsided and some promising government plans have been put in place. Therefore, there is no better time for domestic and international investors alike to capitalise on the new wave of growth," BOT Governor Prasarn Trairatvorakul said at "Thai Forum 2014" in New York.

I would suggest a "better time" would be when (i) A foreigner can own his own business (ii) We have work permits and visas for 5 years and do not have to keep re-entering (iii) When there is "track record" of political stability - there has not been since 2006, so to suggest there will be is merely conjecture (iv) a sustained campaign against corruption is evidenced.

In short, away with the lip service and make it Easy to do Business in Thailand - now that's a nice slogan.

[jenks]

You couldn't make it up, just more proof of how blinkered the authorities here are. No you can't own land, no you can't own a business, we dont really want to issue you a work permit, we have a military dictatorship, biggest debt per capita of the Asean, you could find yourself thrown out at any moment for falling foul if the wrong Thai national or business owner but please come and invest your money in our unstable xenophobic country, priceless!

[Sayonarax]

You only think about us after you made a mess..

At least Taksin never screwed or alienated us.

[JohnnyJazz]

Sorry not long ago the thugs were ruling the streets in front of the government offices in Chaeng Wattana. Can you believe that a bunch of mercenaries headed by a renegade monk who call himself Buddha were controlling who can get it or not in a major governement complex ?The army was there, there is an army base at a stone's throw, and what was it doing ? Absolutely nothing.

Too little too late.

And now the shit is hitting Hong Kong too

And the winner is ... Singapore !

Edited October 10, 2014 by JohnnyJazz

[piersbeckett]

This is heartening that Thais are thinking about foreigners

Absolutely! A truly shocking and incredible headline. What next one wonders? "Foreigners urged to learn Thai language"?

[Time Traveller]

Things must be desperate to plea for foreign investment. Last time the military were in charge they couldn't do enough to slow down investment with capital controls. Probably because Thailand in 2006 looked a much better investment climate than Thailand 2014.

[MJP]

What turnaround?

The turnaround when foreign investors capitalize on the turnaround of course.

[Suffinator]

I wouldn't invest a single penny in this country.

[nev]

Turnaround, it is more like a roundabout.

[outsider]

This is heartening that Thais are thinking about foreigners

When it is convenient, or beneficial for them to do so.

[thedude82]

take it from me...i invested here when it was somewhat stable...no matter what the investment was...no matter what business, I always very curiously somehow...someway ended up losing money. it was always a thai reason/excuse/etc...everyone from the lawyer to the landlord to stock brokers to street vendors to taxi drivers to thai business partners screwed me out of money here. only your money welcome...khap. DO NOT INVEST 1 BAHT HERE!

The only thing I learned about money here is the lesson of never...ever under any circumstances bring serious cash here for any reason. All you will do is lose it and then you will hear giggles of "This is Thailand!" The house always wins folks...the house always wins.

Edited October 10, 2014 by thedude82

[taony]

Always just talk and "assurances". How about taking some action to make the business environment more attractive and less risky?

[BudRight]

This is heartening that Thais are thinking about foreigners

If not their money.

[englishoak]

How about safe ?

[nong38]

Foreign investors need to be encourage and feel welcomed in an atmosphere of optimism, where there is an opportunity to do well and make a profit, is that Thailand at this moment in time? Why do I feel, when people say to me "what is the best business to run in Thailand?" is to say "no business."

A business you cannot own, you have to employ a workforce that is poorly trained and may not be the best motivated does seem to me to be somewhere O would want to risk my money.

Thais can go other counties, buy property and set up a business but do not offer the same arrangements for non Thais and thats alright? Well there is your answer.

[Tony125]

They just don't get it do they ? They screwed around with touriists at crossings threatned to ban people and inconsistant rules changes and inforcment at borders so that a lot of people left. Can see by the lack of tourists at border crossings and at hotels but "they" want to say everything is fine come on over and spend /invest your money. Why ? to have the rules change from one moment/Government to another.to work under marshall law and a military run sosciety?

They made it hard for many tourists doing runs because they are not the kind of tourists we want, really? My mom used to say when you go to dances dance with many of the girls even the not so pretty ones. All the girls will think your such a nice guy to give the wall flowers a break and some of the best girls will know your a nice guy. Same here the not so wealthy tourists would go hom tell their more well off friends wow Thailand is so great , the women the weather the prices , beaches , hotels ,opportunites for business and their richer friends would say hey maybe i'll go over check it out . Instead they hassell people so they go back and tell them what a bad time they had got refused reentering at border and other problems so their friends go heck i'm never going there. You can advertise and say how nice this place is but word of mouth from those that have been here and were treated badly is more persusive than pretty colorfull adds.

[Dogmatix]

Yes, and the protectionist lobby is going full tilt at the at the government and the NLA pushing them to tighten up the Foreign Business Act again, just like they tried to do under the last military government.

Better for foreigners to wait and see what the landscape looks like once the government has stepped down and whether this recovery actually happens.