Thailand must brace for Brexit consequences: Ex-ASEAN secretary general

[rooster59]

Thailand must brace for Brexit consequences: Ex-ASEAN secretary general

Tanakorn Sangiam

BANGKOK, 25 June 2016 (NNT) – Thailand must be prepared for possible consequences of the departure of the United Kingdom from the European Union, said former ASEAN secretary general Surin Pitsuwan.

Following a public referendum in the UK which called for the termination of its membership of the EU (Brexit), Surin said such phenomenon would eventually affect Thailand but the exit process will take a two-years time involving the UK’s earlier negotiations with the EU.

He has said Thailand must brace itself for any potential change by enhancing the country’s manufacturing competitiveness and capacity, expanding domestic investment and infrastructure and transportation systems.

Those efforts would attract more international investors who may be looking for a stable place to do investment projects.

He added that ASEAN is structurally different from the EU and such decisions would not be made by any particular party and that ASEAN member states must improve their own standards in many aspects in order to receive full benefits from the community and protect themselves from external pressure.

-- NNT 2016-06-26

[madmitch]

Where's the TAT announcement stating that Brexit won't affect Thai tourism?

[useronthenet]

... not that Thailand is important enough to be seen on the EU radar.

[chainarong]

The country is controlled by a ever hallucinating Military Junta who sees Sovereign risk as a capital expenditure and is jumping on the Brexit train thinking that British or EU industry will high tail it out to Thailand , you have gold mining Investment and mineral exploration to cease end of the year amounting to losses of the tune of hundreds of millions of USD in investment, just because some protesters didn't like the industry and you think that international industry as a whole would look favorably at Thailand within this present hostile climate, some will, but many will go elsewhere, to places like your close ASEAN neighbours.......................... .

[NongKhaiKid]

Issues like the BREXIT are a godsend for LoS so whenever there's any negative figure etc to be released they can point to factors in other parts of the world impacting on Thailand since LoS never screws anything up themselves.

[shirtless]

Im sure i read a thread stating that Brexit would not affect Thailands Economy, It will , many people in the EU and Britain have lost around 8-10% of their currency value which could translate into holidaying at home.

[Barnet]

I watched the reaction on Friday on Thai news. Lots of so called financial experts and guess what was their response......honest to God, I've never heard so many .....

MAI BEN RAI..........

Couldn't make it up. Like watching the dimwit commentators on Thai tv at half time of a football match. No idea what it is or means.

TAT have just announced that Thailand will be seeking economic relations with the new country that is known as BREXIT. All Brexitians are welcome to land of SMILE....

[IMA_FARANG]

Anyone who believes that BREXIT will not affect the Pound/Baht exchange rate is deluding themselves.

Of course, no one who claims to know exactly what the final effect of any final rate change will be is a fool also.

The "fun" has just begun.

Hang on.

[DrTuner]

Yes, it will be hard to find liver pies with gravy. What a loss .. not.

[Winniedapu]

Im sure i read a thread stating that Brexit would not affect Thailands Economy, It will , many people in the EU and Britain have lost around 8-10% of their currency value which could translate into holidaying at home.

I suspect that the rash of other countries saying they want to exit will be unsettling of the Eu foreign holiday-maker as well. Apparently there are at least 5 front-runners. Not good news at all the EU is probably going to find it hard to keep the other genies in the bottle and the overall economic sentiment is EU won't be pretty for a while.

Perhaps it's also possible that the EU will ramp up pre-sanctions rhetoric about seafood soon to deflect attention. This may be the first real external cause of the Thai economy flat-lining - in among all the non-real ones. As another poster rightly observed, Thais never screw up anything...

Time will tell.

W

[nong38]

The biggest affect on Thailand would be the value of the £ to the bhat and how that might affect tourism. Currently the £ is down against the $ but in couple of weeks things could be back to where they were, we will see then it comes down to where does my £ go furthest which looks like a good holiday? Could still be here come holiday time.

[spidermike007]

Nothing affects Thailand. It is a country that is so powerful, so influential, an economy so massive, so productive, contains so much talent, and brilliance, and such effective and capable politicians, policemen, judges, and parliamentarians, that there is no chance that anything that happens in the world, will affect this great nation. Never. Really. We have studied history (not) and we believe this to be true.

[Winniedapu]

Yes, it will be hard to find liver pies with gravy. What a loss .. not.

I'd kill a man for an Aussie steak and onion pie sometimes... and good black pudding. And some decent breakfast sausages. Can't get any of them in Thailand that I know of.

Liver pie? sounds perfectly horrid. Offal pie? Ack!

W

[Caveat Emptor]

I watched the reaction on Friday on Thai news. Lots of so called financial experts and guess what was their response......honest to God, I've never heard so many .....

MAI BEN RAI..........

Couldn't make it up. Like watching the dimwit commentators on Thai tv at half time of a football match. No idea what it is or means.

TAT have just announced that Thailand will be seeking economic relations with the new country that is known as BREXIT. All Brexitians are welcome to land of SMILE....

Last Friday I joked with a friend that it might be difficult to take her for a meal for a while due to the effect on my financial state due to the pound.

Her look said it all, she didn't have a clue what I was talking about so I went through it slowly bit by bit and still no reaction.

She had never heard of the BREXIT and was struggling with what the the EU was.

How many of these so called Thai expert have a clue either, sure they may know about the EU and maybe BREXIT but is what they're saying their own words or picked up from news sources and spouted as if they're on the ball ?

[jaltsc]

"Thailand must be prepared for possible consequences of the departure of the United Kingdom from the European Union..."

Really? I hope the rest of the world community takes note of Thailand's brilliant revelation, since I am sure no other nation thought it would have to make any adjustments to a such a major international move.

Perhaps Thailand would be better served in relation to world if it's leaders committed themselves to changing the present laws that prevent significant commercial investments which would help employ more Thais at wages higher than they are receiving presently, increase exports, and raising the general standard living standard whereby every Thai receives adequate healthcare and meaningful education.

Edited June 26, 2016 by jaltsc

[Tomtomtom69]

The country is controlled by a ever hallucinating Military Junta who sees Sovereign risk as a capital expenditure and is jumping on the Brexit train thinking that British or EU industry will high tail it out to Thailand , you have gold mining Investment and mineral exploration to cease end of the year amounting to losses of the tune of hundreds of millions of USD in investment, just because some protesters didn't like the industry and you think that international industry as a whole would look favorably at Thailand within this present hostile climate, some will, but many will go elsewhere, to places like your close ASEAN neighbours.......................... .

Exactly.

​Anyway, how is Brexit important for Thailand anyway? Is there even an EU-ASEAN FTA? There certainly isn't a Thai-EU FTA as far as I can remember and even if there is, oh so what, just negotiate another one. I can't imagine Britain to account for more than a couple of % of Thailand's trade anyway.

The Thais generally screw other countries on the terms of FTAs anyway, look at how Australia's automotive sector was royally screwed by Thailand. Thai cars going to Aussie (170,000 a year in 2014) = 0% tax. Aussie cars going to Thailand (maybe 100? a year in 2014) going to Thailand = no "import tariff" but a major 80% non-tariff tax. The only way the Aussies would be charging a tax on Thai cars would be if their value put them into the luxury car category, which depending on the financial year is somewhere around $55,000-60,000 and adjusted every year (sorry I don't know what it was last year), in which case a 30% tax is added on. However, no Thai made Japanese cars are in that category.

[Winniedapu]

The country is controlled by a ever hallucinating Military Junta who sees Sovereign risk as a capital expenditure and is jumping on the Brexit train thinking that British or EU industry will high tail it out to Thailand , you have gold mining Investment and mineral exploration to cease end of the year amounting to losses of the tune of hundreds of millions of USD in investment, just because some protesters didn't like the industry and you think that international industry as a whole would look favorably at Thailand within this present hostile climate, some will, but many will go elsewhere, to places like your close ASEAN neighbours.......................... .

Exactly.

​Anyway, how is Brexit important for Thailand anyway? Is there even an EU-ASEAN FTA? There certainly isn't a Thai-EU FTA as far as I can remember and even if there is, oh so what, just negotiate another one. I can't imagine Britain to account for more than a couple of % of Thailand's trade anyway.

The Thais generally screw other countries on the terms of FTAs anyway, look at how Australia's automotive sector was royally screwed by Thailand. Thai cars going to Aussie (170,000 a year in 2014) = 0% tax. Aussie cars going to Thailand (maybe 100? a year in 2014) going to Thailand = no "import tariff" but a major 80% non-tariff tax. The only way the Aussies would be charging a tax on Thai cars would be if their value put them into the luxury car category, which depending on the financial year is somewhere around $55,000-60,000 and adjusted every year (sorry I don't know what it was last year), in which case a 30% tax is added on. However, no Thai made Japanese cars are in that category.

Heard this about the UK spend in Thailand before. I didn't believe it then and I don't believe it now. Imho. it *will* affect UK tourism. but (also imho), the bigger effect on Thailand will be the consequences of the ripples and turmoil that radiate out from the Brexit into the world economy generally. Another crash is predicted for 2017/2018, yes, I know, one of many but smell the coffee, there are many things falling apart as we speak, so it might be right, look at the timing of crashes in the latter half of the 20th century.

I wouldn't be surprised if lots of things fall into the sea, Thailand's economy among them. Personally I would be neither surprised or regretful. In fact, I'm counting on it.

Maybe I'll be disappointed...

W

Edited June 26, 2016 by Winniedapu

[Brer Fox]

Yes, it will be hard to find liver pies with gravy. What a loss .. not.

I'd kill a man for an Aussie steak and onion pie sometimes... and good black pudding. And some decent breakfast sausages. Can't get any of them in Thailand that I know of.

Liver pie? sounds perfectly horrid. Offal pie? Ack!

W

Breakfast sausages are full of rusk filler and bacon from the deli is full of water.

[Whyamiandwhatamidoinghere]

Thailand always looks at the misery of others as an opportunity for them to get investment from whatever country. In Stock investing terms it is an Options Investor heavy on the "Put"

[SOTIRIOS]

...basically they are clueless....so they want to cover their *sses.....

...one time yes...one time no......

...all experts with degrees....

[Srikcir]

It's just a matter of time before Thailand's Minister will seek out the BREXIT ambassador to explain Thailand's roadmap to democracy.

[Kiwiken]

I think maybe the Brexit consequences they fear is with the current ("apparent") xenophobia in the UK all the Thai Brides etc maybe deported back to Thailand therefore bringing a more enlightened view of the world. Than is currently allowed By the ruling Regime. People having a vote and making their own decisions outrageous in the LOS

[oldgent]

utter bullshit. might effect tourism but nothing else, their is enough scaremongering

within the UK without this brainless twit

[JHolmesJr]

He frets in vain….Brexit or not, the thai poon industry will never be affected.

[bangon04]

"He added that ASEAN is structurally different from the EU"

True, but the EU did not start out as the EU, it started out as the EEC.

ASEAN has just started its own AEC. Let us see if they can learn from European mistakes, or if they allow the lunatics to take over the asylum....

[williamgeorgeallen]

boaty mcboat face failed, maybe brexit will fail as well.

[bamukloy]

Is this another "read between the lines" statement?

But yes, im sure the Thai teeraks recieving monthly free money from stupid old Brits might be in for a shock.

Seriously though, IMO, all the other stuff he cites is pure BS.

Why not just say it like it is: Whenever theres a currency chrash (like with the Russians) obviously there will be less money/business flowing into Thailand from that sector.

Im sure the Thai vultures involved in the condo market in Pattaya are seething about the Russians doing a runner and saturating the market.

Likewise, Brits who were considering buying into Thailand (in some way) will reconsider due to the cost increase.

Brits paying already ridiculous rents for bars, condos etc will bail if the pound gets trashed.

More condos will go on the market as the pensioners bail out.

The pool of Brit mugs..err...investors... will shorten.

Imo, Thailand rakes in more easy money than anywhere else in the world. They can do that through keeping everything cheap.

Of course, this is why the tourists will never stop coming.. beatdowns,scams, murders..makes no difference, they will come for the cheap ......

Thais, however, as clever as they think they are, cannot control world events that cause currencys to dive.

Its a no-brainer, anyone with less real money to spend first looks at cutting

luxuries they can do without..

-international holidays

-bad investmestments that never pay off, only keep costing more.

- Silly impulse type transactions (often dick-tated by the small head)

the above 3 id say are the main sources of money coming into Thailand.

[connda]

Short the SET for awhile as the London/NY finance crowd rig the markets crashes next week. Gotta scare the clueless masses.

[Psimbo]

Yes, it will be hard to find liver pies with gravy. What a loss .. not.

I'd kill a man for an Aussie steak and onion pie sometimes... and good black pudding. And some decent breakfast sausages. Can't get any of them in Thailand that I know of.

Liver pie? sounds perfectly horrid. Offal pie? Ack!

W

I guess you don't know where to look!

[razer]

The EU is in serious trouble. The elites got smacked down and are now trying to save face. Meanwhile the Germans are making daisy chains to kiss away the hate. Really. No joke.