Thailand's Board of Investment (BoI) admits that foreign investment is declining

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Top banker warns populist policies must be implemented with care
By Digital Content



BANGKOK, Nov 20 -- Thailand's Board of Investment (BoI) admits that foreign investment is declining, and a top banker warns that the government's economic stimulus policies will fail if its populist policies cause a rise in household debt.

Kosit Panpiemras, Bangkok Bank executive chairman, said the government's economic stimulation efforts through monetary and fiscal policies would not bear fruit if it continued to implement populist policies in the way that prevents household debt from falling.

He suggested that the government cooperate with the private sector to catch up with the changes of global markets.

Thai exports are declining despite the global economic expansion.

Mr Kosit urged the government to closely supervise production. Thailand's economic growth rate is predicted at 3-4 per cent next year due to its low base this year, he said, noting that previous populist policies and household debt continue to heavily affect the Thai economy and prevent its growth from reflecting the real potential of the country.

Chokedee Kaewsang, BoI deputy secretary-general said foreign investment in the first 10 months of this year dropped by 10 per cent compared with the same period last year because Thailand could not support the investment projects that turned to use higher technologies.

He estimated the overall value of projects seeking BoI promotional privileges at Bt700 billion this year, lower than the corresponding figure last year.

The projects center on the automotive, electrical, electronic and machinery industries. (MCOT online news)


-- TNA 2014-11-20

[iReason]

http://www.dpa-international.com/news/asia/43355767

[ratcatcher]

The truth will always out.

[brucec64]

10% reduction in foreign investment and the junta’s solution is to further restrict ownership and control of foreign.

I think the more likely scenario is that Thailand goes into recession unless they rethink some of these policies.

[Time Traveller]

that's a pity

[newcomer71]

Given the economical trend, and the solutions that government is going to take, I foresee lots of troubles here...

[draftvader]

Does anybody know which way is up any more around here? I was told it was where I expected it to be but then I was told that the polar opposite had occurred only to find out that was a negative of the original prediction.

[givenall]

Don't worry government will announce a rosier news tomorrow regardless of its truth

[JOC]

Welcome to invest in Thailand and give 51% control to your trusted Thai partner!!

Visahustle, 90 days reporting and general xenophobia!!

Only surprise here is, that the decline isn't even bigger!!

[Pib]

"Thailand's Board of Investment (BoI) admits that foreign investment is declining,..."

See, telling the truth didn't hurt (much).

[chainarong]

Toyota has sent warning signals to this administration , I would take those warning seriously if I was Thailand , if Toyota goes, so the others will follow.

[tullynagardy]

I said from the start the economy would make or break this junta. It`s breaking them in an epic way. Incompetence on a gross scale will see the people rise up against them, it`s already happening.

[Thai at Heart]

 

10% reduction in foreign investment and the junta’s solution is to further restrict ownership and control of foreign.

I think the more likely scenario is that Thailand goes into recession unless they rethink some of these policies.

 

On the basis that decisions on investment tend to follow calendar or financial years, if they don't shut up about tightening these rules, then who the hell would invest here.

No democracy, no accountability, and a threat to your investment. I wouldn't bother the risk, would you>?

[Thai at Heart]

The ridulous thing is that one has to wonder what have the farangs taken away from thais anyway? The market? What? Why do they want to attack a goose laying golden eggs, paying taxes and employing people. Why?

[brucec64]

 

10% reduction in foreign investment and the junta’s solution is to further restrict ownership and control of foreign.

I think the more likely scenario is that Thailand goes into recession unless they rethink some of these policies.

 

On the basis that decisions on investment tend to follow calendar or financial years, if they don't shut up about tightening these rules, then who the hell would invest here.

No democracy, no accountability, and a threat to your investment. I wouldn't bother the risk, would you>?

The problem is that the damage is already done. The mere fact of considering this means that it is now on the table, and foreign investment will factor that risk into their investment decisions. I think that a lot of foreign investors would deal with the junta, if they showed that Thailand was still open for business, but will walk away given the nationalistic turn this junta has taken.

[Thai at Heart]

 

10% reduction in foreign investment and the juntas solution is to further restrict ownership and control of foreign.

I think the more likely scenario is that Thailand goes into recession unless they rethink some of these policies.

 

On the basis that decisions on investment tend to follow calendar or financial years, if they don't shut up about tightening these rules, then who the hell would invest here.

No democracy, no accountability, and a threat to your investment. I wouldn't bother the risk, would you>?

The problem is that the damage is already done. The mere fact of considering this means that it is now on the table, and foreign investment will factor that risk into their investment decisions. I think that a lot of foreign investors would deal with the junta, if they showed that Thailand was still open for business, but will walk away given the nationalistic turn this junta has taken.

Absolutely. The fact that no one is coming out to deny the possibility, is enough to discourage any investor. Its nuts.

Who do they want to threaten? These investors are buyers, clients, wanting to buy into the country, and the situation is basically to put two fingers up to them.

It is ridiculous.

[jaltsc]

"Thailand's Board of Investment (BoI) admits that foreign investment is declining"

"Thailand eyeing tighter restrictions on foreign businesses"

Two headlines from today...And they can't put 2+2 together?

Bad news for the Thai business community. If this keeps up, the baht should be worth the same as the promises that all the leaders are making.

[paddyjenkins]

I fear the truth is that certain foreigners will be welcome to own what they please....the Chinese. The China switch is gaining momentum, it's almost as if the coup itself was planned with China in mind, because the sudden cold shouldering of Japan and the west followed immediately in the wake of the coup. I wonder who is really pulling the strings here, who is the puppet and who is the master? I always wondered before the coup, who was funding the anti government protestors and I had always suspected foreign influences, as it always looked like it could favor certain countries rather than others. Critics of this move say it makes no sense. But within the context of a bigger picture it does begin to make sense from the perspective of certain players, assuming the locals are more puppet than master.

[recycled]

Give 'The Man' a break he is the countries hero, according to the polls. Not every clown gets to become the ringmaster of the biggest circus in town.

[WhizBang]

The new rules will help. Right?

[NeverSure]

"Thailand's Board of Investment (BoI) admits that foreign investment is declining."

There is an important clue here. Western countries don't rely on foreign investments to drive their economies.

Only shitholes like Thailand and China who have NO technology of their own need foreign investors to come in and set up factories and hire their cheap labor and manufacture what was invented in the West.

These are the knuckle draggers of the world of technology both in what is manufactured and how it is manufactured. The foreign investors make the real money on what is manufactured and leave Thailand with the little dab of what's left.

Toyota talked Philippines, but what they really did was buy a big chunk of industrial land at Yangon Burma, and promise to build a deep water port there.

Thailand is the hub of nothing anymore due to its own unfriendly foreign investment laws.

[bangrak]

The Ministry of Economy's plans to eradicate companies controlled and/or operated by non-Thais, to protect Thai owned/operated not competitive companies, will not contribute to the decline of foreign investment either. Nooo...

Let's also already try to find an expression stronger than 'loss of face', in Thai language, seems it could soon become very commonly used...

[bangrak]

While at it, let the BoT make the Baht much more expensive for the $, € and £, but advantage the Yuan Remninbi...

When the plan is to become the next (not very) 'independent province' of the PR China better start working on it at once...

P.S.: highways and railroads, like in Tibet? No: the Thais, they are going to pay the Chinese...

Edited November 20, 2014 by bangrak

[bkkcanuck8]

What Thailand should do with the overhaul of ownership rules is that all but a very select few areas should be open to full foreign investment in relation to business (with the exception on grounds of security). 100% foreign ownership allowed. Board must consist of a certain number of resident directors (Thai citizens and perm residents who have no criminal record) which can be managing directors -- whose responsibility is that domestic laws are followed. Companies must have a certain percentage in capital (30% is what Vietnam requires). Vietnam, a country "less developed" than Thailand allows for 100% ownership.

[ezzra]

How can any investor in his right invest in a country where the majority of the workforce is

foreign? with the smallest shift in Thailand foreign workers policy that investment can head

south very quickly and be left with out works like it DID happen few months ago...

[BSJ]

I am only a small business man. But I have a plan gathering dust that could see employment for 10 or 12 Thai's, give a trucking company a minimum of 1 40ft container to move to Laam Chabang every week, buy bottles closures and labels from a business here, have potential to grow the business, fully fund the purchase of land, have a processing plant built, and have it fully funded from Australia, pay tax to the Thai government.

Only thing I need to import the equipment from China as no-one makes it here.

But because of their head in the sand approach the whole thing may end up going to Cambodia or Vietnam......

Edited November 20, 2014 by BSJ

[Thai at Heart]

I am only a small business man. But I have a plan gathering dust that could see employment for 10 or 12 Thai's, give a trucking company a minimum of 1 40ft container to move to Laam Chabang every week, buy bottles closures and labels from a business here, have potential to grow the business, fully fund the purchase of land, have a processing plant built, and have it fully funded from Australia, pay tax to the Thai government.

Only thing I need to import the equipment from China as no-one makes it here.

But because of their head in the sand approach the whole thing may end up going to Cambodia or Vietnam......

Have a partner yet.

I have a wife who will happily take 51% of the business and make a nice partner for a small stipend............

Think about it hard..........

Its a good offer..........

With a work permit.......

Just a stipend......

[siampolee]

Perhaps the new economic comedy show will follow this format?

[blazes]

"Thai exports are declining despite the global economic expansion."

Interesting sentence in the article. Strange how all the "analysts" on the various Business channels worldwide keep repeating the mantra that the global economy is "improving", when most people (all over the world) know, from their daily lives, that this is a good example of Josef Goebbels' dictum that "if you repeat a lie often enough, people will come to believe it".

[yellowboat]

How does Thailand expect to catch up without outside help? How did South Korea dig itself out of its hole in the late 90's. They had outside help. They liberalised and openend their economy, and today they are doing very well. Thailand and Taiwan are still backward and struggling.