New Zealand concerned over Thai vulnerability

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New Zealand concerned over Thai vulnerability
WATCHIRANONT THONGTEP
THE NATION
AUCKLAND

AUCKLAND : -- NEW ZEALAND businesses are concerned about Thailand's economic vulnerability due to the political uncertainty and its attractiveness for manufacturing in its path of returning to democracy.

"It is very complicated for Thailand. From the business point of view, after the military regime is in place, the country is still mindful and not disruptive for business. However, what we are concerned about today is your economy slowing down," Tony Nowell, chairman of the Asean New Zealand Business Council, said last week.

On June 10, the Bank of Thailand will likely downgrade its gross domestic product growth forecast for this year from 3.8 per cent. It has noted that the country was facing a "slow and fragile" economic recovery in April because the private sector and households continued to be cautious with their spending.

Nowell said Thailand would become less attractive to manufacturers because of the political uncertainty.

"We expect the issue to be democracy. So businesses cautiously watch this development. Ultimately, businesses want to see a democratic Thailand once again.

"We are also seeing some issues |arise related to the fishery industry. There is a warning issued to the Thai government to solve the problems of illegal and unidentified [industry workers].

"Our businesses are also concern-|ed about that issue as those businesses are really involved with that supply chain. They are sourcing products or providing packaging in that supply chain," said Nowell, who also serves as the private sector co-chairman for the Apec Policy Partnership on Food Security.

Asean countries, including Thailand, are part of the global value chain and it is also important for the New Zealand economy, he added.

Stephen Harris, director for South and Southeast Asia at New Zealand's Foreign Affairs and Trade Ministry, said the relationship between New Zealand and the Asean region was "comprehensive".

"With about a 700 million population, the region offers a huge potential market in the near future, not just for today," he said.

This market is mainly driven by consumers' needs.

New Zealand has green technology, which could improve efficiency in managing costs and prices in value and supply chains in the region, he said.

Among the 10 Asean countries, Thailand ranks third with Bt60.37 billion after Malaysia (Bt77.17 billion) and Singapore (Bt71.75 billion). Of New Zealand's exports, the Asean market takes more than 10 per cent. Last year, two-way-trade had grown to NZ$12.8 billion (Bt321.85 billion).

Thailand is New Zealand's tenth largest trading partner. Merchandise still dominates trade but some services like education, health, security and information technology are considerably promising.

Source: http://www.nationmultimedia.com/business/New-Zealand-concerned-over-Thai-vulnerability-30261379.html


-- The Nation 2015-06-02

[ChrisY1]

Why would anyone invest in a country that is ruled by the military......a group that has little or no experience of investment issues, (apart from where their "hard" earned is placed), especially large scale investments.

The proposed infrastructure developement projects will be a guideline to how successfully Thailand, at present, can manage.

[BSJ]

Can't be much NZ money invested in LOS???

[Seastallion]

Can't be much NZ money invested in LOS???

Depends what you call "much". There's probably a few hundred millions of NZ$.

[chainarong]

Not only do you have the Junta , it really hasn't changed the political situation , everybody has conveniently forgot that Thailand is still a divided nation, so nothing has really changed just the faces and going by the reports this morning in OZ papers, big daddy has been re admitted to hospital, that places a great strain on Thailand as a nation and as NZ has stated makes Thailand Vulnerable.

[BuaBS]

""Ultimately, businesses want to see a democratic Thailand once again.""

No, businesses want stability and the rule of law .

Another backward article to criticize the current government.

[phantomfiddler]

700 Million population ? I think someone has their figures completely messed up. Try a tenth of this !

[cauldlad]

That figure is combined Asean countries

[ldiablo]

And I suppose you BuaBS knows more about what businesses want than the chairman of the Asean New Zealand Business Council. I beg to differ.

[Tatsujin]

""Ultimately, businesses want to see a democratic Thailand once again.""

No, businesses want stability and the rule of law .

Another backward article to criticize the current government.

In theory (and publicly) you are correct about them wanting "democracy" and the "rule of law", but those same businesses also want big tax breaks and concessions out the yingyang, and they aren't getting them so easily just now.

[starky]

My my my, you know a country is in real trouble when the Kiwi's are worried about you...

[Strangebrew]

Wow Thai math got to love it Things go down they report slight drop then turn around with up beat of some off the cuff number so neither up or down.

[yooyoo]

Can't be much NZ money invested in LOS???

Depends what you call "much". There's probably a few hundred millions of NZ$.

The corrupt Thais can learn a lot from NZ...one of the best managed countries in the world!

[pogal]

Can't be much NZ money invested in LOS???

*Depends whether you think NZ$700,000,000 (16,821,243,410 baht) is a lot or not?

*2013 stats

[lvr181]

Can't be much NZ money invested in LOS???

Depends what you call "much". There's probably a few hundred millions of NZ$.

The corrupt Thais can learn a lot from NZ...one of the best managed countries in the world!

I agree, but really? Thailand seems reluctant to learn from anyone!

Reminds me of the old Frank Sinatra song "I did it my way".

[sawadee1947]

Why would anyone invest in a country that is ruled by the military......a group that has little or no experience of investment issues, (apart from where their "hard" earned is placed), especially large scale investments.

The proposed infrastructure developement projects will be a guideline to how successfully Thailand, at present, can manage.

Why would anyone invest in a country that is ruled by the military.

Well, have a look on to Burma. International Investments everywhere. So there are probably other reasons: Uncertain future, corruption, no way to democracy maybe?

[sawadee1947]

Can't be much NZ money invested in LOS???

Depends what you call "much". There's probably a few hundred millions of NZ$.

The corrupt Thais can learn a lot from NZ...one of the best managed countries in the world!

I agree, but really? Thailand seems reluctant to learn from anyone!

Reminds me of the old Frank Sinatra song "I did it my way".

as long ministries are saying: EAT MORE RICE, YOU ARE THAIS or WEAR TRADITIONAL COTHES, YOU ARE THAI there will be no change at all. It's a splendid isolated country with mountain high walls of tradition, religion, superstition, corruption, ruled by clans.

[Gunna]

700 Million population ? I think someone has their figures completely messed up. Try a tenth of this !

I think some-one can't read and comprehend

With about a 700 million population, The Region offers a huge potential market - Asean New Zealand Business Council

I think that foreign businesses should be more concerned about Thailand when a certain person can no longer be treated in hospital

[EnglishJohn]

700 Million population ? I think someone has their figures completely messed up. Try a tenth of this !

I think some-one can't read and comprehend

With about a 700 million population, The Region offers a huge potential market - Asean New Zealand Business Council

I think that foreign businesses should be more concerned about Thailand when a certain person can no longer be treated in hospital

Yup - with the pillar of righteousness removed from the picture and the polar opposite in it's place, I would not bet on anything in the LOS. Let's be thankful the Amnesty bill disgrace happened first.

All part of the melting pot we find ourselves in now I suspect.

[Torrens54]

Lock up your sheep if you have any, the Kiwis are coming !

[Mudlover]

Economic growth being, of course, the be-all and end-all.

[yooyoo]

Can't be much NZ money invested in LOS???

Depends what you call "much". There's probably a few hundred millions of NZ$.

The corrupt Thais can learn a lot from NZ...one of the best managed countries in the world!

I agree, but really? Thailand seems reluctant to learn from anyone!

Reminds me of the old Frank Sinatra song "I did it my way".

Which is the corrupt way because I am Thai...

[scorecard]

And I suppose you BuaBS knows more about what businesses want than the chairman of the Asean New Zealand Business Council. I beg to differ.

"... the chairman of the Asean New Zealand Business Council..."

This guy is posturing a line deliberately constructed for one thing - whatever will benefit the members of the council which employs him.

Nothing more, nothing less.