Thai manufacturing investment shows signs of recovery

BANGKOK, 7 June 2016 (NNT) - Investment in Thailand’s manufacturing industry has shown signs of recovery, as the number of machinery imports in the first five months of 2016 has risen by 8% year-on-year.

The Department of Industrial Works (DIW) revealed that in the first five months of 2016, 508 businesses had registered a total of 3,353 units of imported manufacturing equipment valued at 34 billion baht. The figure represents an 8% increase from the same period last year.

DIW Director-General Pasu Loharjun has forecast economic recovery this year due to improved investment. He expects the number of importers of manufacturing equipment will reach 1,300, spending an estimated 80 billion baht.

Surveys of January to May this year show that the five industries with the highest number of new machine registrations were metal products, plastic products, printing, non-metals and seed milling.

To stimulate the economy and investment, Mr Pasu revealed that the DIW will initiate programs to assist SME factories. These include a program to turn machinery into capital for 500 businesses per year, a program to modify machinery for 1,000 businesses per year, and a three-year assistance fund of 45 million baht from the Office of Small and Medium Enterprises Promotion.


-- NNT 2016-06-07

This a prediction of an increase in GDP, right? And, it is based on foreign machine orders, right? But what is not stated is the reason for the machine orders. Was it to replace existing plant equipment that finally died? Was it to establish new manufacturing, either as new start-up or the expansion of existing capacity?

Ordering new equipment is done for many reasons, many of which have no effect on economic recovery. A better measure of economic recovery would be industrial orders, domestic and for export combined with orders shipped which would help eliminate manufacturing activity that is simply adding to inventories of finished goods.

This a prediction of an increase in GDP, right? And, it is based on foreign machine orders, right? But what is not stated is the reason for the machine orders. Was it to replace existing plant equipment that finally died? Was it to establish new manufacturing, either as new start-up or the expansion of existing capacity?

Ordering new equipment is done for many reasons, many of which have no effect on economic recovery. A better measure of economic recovery would be industrial orders, domestic and for export combined with orders shipped which would help eliminate manufacturing activity that is simply adding to inventories of finished goods.

Quit raining on their parade. They need all the positive news they can get. I agree with your last statement. A better article was the one earlier stating the drought in Chiang Mai is over. In a couple weeks the news will come out that we still have a drought situation. Its all U turns and yo yoing of information.

Its great t hear such positive news Lets hope they are right. operative word is hope.

"The Department of Industrial Works (DIW) revealed that in the first five months of 2016, 508 businesses had registered a total of 3,353 units of imported manufacturing equipment valued at 34 billion baht. The figure represents an 8% increase from the same period last year."

Odd that imports went down over the same period. As did FDI, as did exports. One swallow doth not a summer make (Linda Lovelace).

Still, if you're a lapdog and Prayuth has instructed you to find positive news to prolong his tenure in government, I don't suppose you can do anything but take figures in isolation, despite the fact that the isolated figures don't mean a damn thing.

W

Edited June 7, 201610 yr by Winniedapu

Something doesn't ring right.

Exports for the month of April contracted by 8% which was beyond expectation and constituted the lowest in six years

Deputy Prime Minister Somkid Jatusripitak said that investment by the private sector remained low during the first quarter of 2016.

But domestic orders for foreign manufacturing equipment increased 8% from the same period last year?

So either the imported equipment will sit idle (perhaps because of generous tax breaks), it will produce unsold inventories or the story is just misleading.

How many of them are replacement investments (substitute old for new)?
How much of this are modernization investments (replacement of old with technically advanced (lower costs, less staff))?
How many of them are expansion- or new investments (capacity expansion or real reconstruction)?

What is the exchange rate induced share of 8% manufacturing investment growth?

From an isolated reference number, can be derived not much further.

An excellent example of "cherry picking".

No, not that kind of cherry.

This a prediction of an increase in GDP, right? And, it is based on foreign machine orders, right? But what is not stated is the reason for the machine orders. Was it to replace existing plant equipment that finally died? Was it to establish new manufacturing, either as new start-up or the expansion of existing capacity?

Ordering new equipment is done for many reasons, many of which have no effect on economic recovery. A better measure of economic recovery would be industrial orders, domestic and for export combined with orders shipped which would help eliminate manufacturing activity that is simply adding to inventories of finished goods.

Quit raining on their parade. They need all the positive news they can get. I agree with your last statement. A better article was the one earlier stating the drought in Chiang Mai is over. In a couple weeks the news will come out that we still have a drought situation. Its all U turns and yo yoing of information.

My bad. I should realize that everyone is entitled to their delusionary wishful thinking. What really bothers me is that someone really thinks that economic recovery caused these orders. That is much more than wishful thinking. It is a sad fact that there is a crisis of competence, which is dangerous for Thailand's future.