Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[webfact]

Finance minister: money for infrastructure fund may be sourced from insurance companies

BANGKOK, 15 September 2015 (NNT) – The Ministry of Finance is planning to set up infrastructure funds that would allow money to be sourced from the public and invested in large infrastructure projects, according to Minister of Finance Aphisak Tantiworawong.

The Finance Minister disclosed on Monday there is likely be two types of funds – one type will be a group of smaller funds specific to each infrastructure project, and the other type would involve a single, large infrastructure fund that would source money from the private sector and members of the public.

The Ministry of Finance was also considering allowing insurance companies to participate in the large infrastructure fund, as these companies manage a great amount of savings. Foreign investors and members of the public will also be able to co-invest in the large infrastructure fund.

The minister noted that each insurance company would need to evaluate the risks associated with investing in the fund, so the fund would need to have a high score with credit rating agencies.

Insurance businesses had as much as 2.32 trillion baht of invested assets in Quarter 2 of 2015.


-- NNT 2015-09-15

[jaywalker]

Sounds like Jimmy Hoffa isn't dead after all.

[Thian]

With soo many accidents happening every day how can those insurance company's have so much savings?

If the Thai roadsaccidents can be reduced they will even save much more money so yes they should invest in more safety.

[worgeordie]

I thought thats how its done anyway,called taxes !

regards Worgeordie

[jaywalker]

I thought thats how its done anyway,called taxes !

regards Worgeordie

One never knows, as the translations are often distant from their meanings, but sounds like they might be selling municipal bonds now?

You buy a bond (invest) from the municipality, & theoretically the city/state/province/national government will pay you back your money + a certain percent interest after 5 or 10 or 20 years.

Sounds like Russian roulette with the your money in Thailand as governments change via coup whether they need to or not every 6 - 8 years.

Better off playing the lottery.

[canopus1969]

With soo many accidents happening every day how can those insurance company's have so much savings?

If the Thai roadsaccidents can be reduced they will even save much more money so yes they should invest in more safety.

They are talking about Life insurance companies not General insurance.

[WhizBang]

With soo many accidents happening every day how can those insurance company's have so much savings?

If the Thai roadsaccidents can be reduced they will even save much more money so yes they should invest in more safety.

Well that is easy. They find an excuse to either not pay out or to reduce the amount paid by a significant amount. Same as in every other country.

Edited September 15, 2015 by WhizBang

[Thai at Heart]

With soo many accidents happening every day how can those insurance company's have so much savings?

If the Thai roadsaccidents can be reduced they will even save much more money so yes they should invest in more safety.

Easy when u charge 1st world rates and fix and license cars at 3rd world rates and style of administration.

[waldroj]

Large infrastructure projects? How many more than already planned in the present roadmap?

If the government expects to use people's insurance investments, they'd better just hope like hell that you don't have a large natural disaster (typhoon, earthquake, flood). Then there is the "C" word too.

"...each insurance company would need to evaluate the risks associated with investing in the fund...", well that knocks it on the head for a start! And, I doubt whether foreign investors will even contemplate government projects in Thailand for years to come.

Just remember past examples ...

[thhMan]

Why not... lets see what more damage Thai logic can enforce on its people....

[ldiablo]

With soo many accidents happening every day how can those insurance company's have so much savings?

If the Thai roadsaccidents can be reduced they will even save much more money so yes they should invest in more safety.

They are talking about Life insurance companies not General insurance.

And how is it that you know that?

Assumption or fact.

[chainarong]

Is this weird scheme to support a financing of Prayut - O - High Speed train network , even though it was a Government to Government agreement ( The prayut - O transparency ) all signed sealed and delivered , with those quality Chinese.

[Thai at Heart]

With soo many accidents happening every day how can those insurance company's have so much savings?

If the Thai roadsaccidents can be reduced they will even save much more money so yes they should invest in more safety.

They are talking about Life insurance companies not General insurance.

And how is it that you know that?

Assumption or fact.

Ordinary car insurance companies aren't allowed to invest in this type of thing. Life insurance will lend the money for a fixed return. Probably not a bad investment.

Allowing for coups and changes in policy of course......

[Thian]

It surprises me that the carinsurance-company's don't push the trafficpolice to maintain the laws.

I see accidents happening every day in BKK, big and small ones.

That's why everybody with money buys a Fortuner, Camry or European car...just to survive traffic in BKK. The lifeinsurance company's should give discount if one buys a safe car like that.

But i agree Thailand needs more infrastructure, fast trains all over the country for persons and goods. Also new clean buses in the city's and hopefully no more white mini-vans/taxi's who totally ignore all trafficlaws.

I can't wait for the new skytrain extensions to start riding. My life here would improve a lot by that and maybe i even go into the city for shopping (which is impossible by car).

[JAG]

If indeed the Thai Life Assurance businesses are sitting on a large amount of cash, just sit back and watch the already rich come up with various schemes to tap into it.

[Bulldozer Dawn]

So the motor vehicle insurers will fund hospital infrastructure?

What is wrong with that picture.

[tomacht8]

Foreign investors and members of the public will also be able to co-invest in the large infrastructure fund.

Thanks for the offer,
but I am more a conservative oriented investor.
In Europe it has not managed any railway company to operate in the profit zone.
All hanging on taxpayers dripping.

Can hardly imagine that Thai farmers take the high-speed train, providing cost-covering fares.
More distant locations can be reached faster and often more cheaper by plane.

Edited September 15, 2015 by tomacht8

[Srikcir]

This is a drastic proposal.

The government has sufficient international credit rating to pay for major infrastructure projects through issuance of treasury bonds that carry a very low interest rate.

But Prayut has been for the last 16 months relunctant to do so although he didn't hesitate to use 10-year treasury bonds to pay rice farmers owed for the rice pledge program. Prayut also put government funding into the China-Thailand dual rail project. Apparently he sees no political reward for government funding of the infrastrucure.

Privatizing funding for infrastructure means much higher interest rates and the projects become collateral for borrowed funds. Any cost increases (typically a 30% likelihood) in the projects must be negotiated or more funding sources located. That can stall progress and increase total project costs.

Privatizing also opens a whole avenue of potential corruption and financial abuses because the source of funds can be concealed and unaccountable. That would not be true with direct government funding.

[FangFerang]

Wow! A perfectly legal way for friends of the junta to get money from the government.

Brilliant, Holmes.

Thank you, Watson.