According to Bot’s latest Press Release, the Thai economy continued to be on a decelerating trend in November, prompting the Central Bank to use the exact same words from its previous Press Release on the Economic and Monetary Conditions in October, to describe the overall situation in November.

The value of merchandise exports continued to contract, mainly due to the economic slowdown of trading partners, consistent with deterioration in merchandise imports, manufacturing production and private investment indicators.

Public spending also contracted from both current and capital expenditures. Meanwhile, private consumption indicators continued to decelerate amid support from the government’s economic stimulus measures. The tourism sector continued to expand.

         On the stability front, headline inflation edged up from the previous month on the back of higher core inflation and lower contraction in energy prices. The seasonally adjusted unemployment rate slightly increased while the number of employed persons was unchanged. The current account remained surplus. The capital and financial accounts posted a deficit from the asset position.

 Details of the economic conditions are as follows:

The value of exports dropped by 7.7 percent

The value of merchandise exports contracted by 7.7 percent from the same period last year, nearly the same as export values excluding gold.

The contraction of exports in almost all categories was due to

1) the economic slowdown of trading partners;

2) the non-obvious recovery in electronic cycle; and 

3) the contraction of global crude oil prices, coupled with the temporary maintenance shutdown of some oil refineries, leading to the contraction of petroleum-related products exports, both in terms of prices and quantity.

Additionally, structural changes in production and global trade as a result of trade tensions caused some Thai export products to be replaced by Chinese products in ASEAN markets. However, exports of  agro-manufacturing products continued to expand. As a consequence of the merchandise exports contraction, manufacturing production continued to decline.

Imports contracted by 13.9 percent

The value of merchandise imports contracted by 13.9 percent from the same period last year, and excluding gold, imports value contracted by 15.4 percent.

The contraction of imports in almost all categories, consistent with softening economic activities, was attributable to 1) imports of raw materials and intermediate goods especially in crude oil, partly due to the maintenance shutdown of some oil refineries; 2) imports of capital goods mainly from turbo-jets and telecommunication equipment;…

Source link : Thai economy’s Deceleration confirmed in November (Bot) by Boris Sullivan

According to the real estate consultancy, foreign investments into Asia Pacific are at a decade-high, making up 35 per cent of total volumes, mostly driven by private equity funds and large-scale transactions.

“Real estate in Asia Pacific has gained favour in the last year as investors continue to seek high yields and stability amid a climate of geopolitical uncertainty and slowing economic growth. As an increasing amount of capital is being allocated to real estate, we’re seeing more clients making larger-scale investments to expand their portfolios.”

Stuart Crow, CEO, Capital Markets Asia Pacific, JLL.

“Over the next two years, we expect global real estate transaction volumes to stay elevated and Asia Pacific to outperform Europe and the Americas with an outsized portion of global investor interest.”

JLL reveals five key trends that investors should look out for in 2020.

1. Logistics assets are a hot ticket

Investor appetite for logistics continues to pick up, meaning these types of facilities are held tightly. The result is that investors must become more creative in order to access quality assets.

“We’re seeing more investors form joint ventures with major established players. Some are taking partial stakes or even going into public markets. A recent example is Canadian pension fund OMERS’s cornerstone investment in ESR logistics platform when the latter filed to be listed on Hong Kong’s stock exchange,” says Mr Crow.

“Another avenue to accessing quality portfolios has been via the mergers and acquisitions route, with the likes of warehouse operator GLP, Viva industrial REIT and Propertylink REIT among some of the larger platforms to be acquired.”

2. REITS are the next to watch

In 2019, Asia Pacific REITs (Real Estate Investment Trusts) raised a record amount of capital at over US$14 billion, surpassing the previous record of US$13.8 billion in 2013.

JLL predicts that Singapore and India will see more REIT initial public offerings next year, mainly driven by their focused growth strategies and consistent trading performance. More strategic mergers and acquisitions will allow funds to grow geographically and deepen their investments into newer markets in U.S. and Europe.

“Looking ahead, REITs are likely to continue their strong trading performance and be highly competitive buyers of real estate assets. Size matters and we can expect to see more consolidation in this sector.”

STUART CROW, CEO, CAPITAL MARKETS ASIA PACIFIC, JLL.

3. Sustainability initiatives present investment opportunities

The next generation of buildings is set to become more ‘green’, with sustainable technologies to save on operating costs as…

Source link : Asia Pacific to outperform other regions in 2020 for real estate investment by Daniel Lorenzzo

WASHINGTON, December 19, 2019—Debt in emerging and developing economies (EMDEs) climbed to a record US$55 trillion in 2018, marking an eight-year surge that has been the largest, fastest, and most broad-based in nearly five decades, according to a new World Bank Group report.

The study that urges policymakers to act promptly to strengthen their economic policies and make them less vulnerable to financial shocks.

The analysis is contained in Global Waves of Debt, a comprehensive study of the four major episodes of debt accumulation that have occurred in more than 100 countries since 1970.

It found that the debt-to-GDP ratio of developing countries has climbed 54 percentage points to 168 percent since the debt buildup began in 2010.

On average, that ratio has risen by about seven percentage points a year—nearly three times as fast it did during the Latin America debt crisis of the 1970s. The increase, moreover, has been exceptionally broad-based—involving government as well as private debt, and observable in virtually all regions across the world.

“The size, speed, and breadth of the latest debt wave should concern us all,” said World Bank Group President David Malpass.

“It underscores why debt management and transparency need to be top priorities for policymakers—so they can increase growth and investment and ensure that the debt they take on contributes to better development outcomes for the people.”

World Bank Group President David Malpass.

According to the report, the prevalence of historically low global interest rates mitigates the risk of a crisis for now. But the record of the past 50 years highlights the dangers: Since 1970, about half of the 521 national episodes of rapid debt growth in developing countries have been accompanied by financial crises that significantly weakened per-capita income and investment.

“History shows that large debt surges often coincide with financial crises in developing countries, at great cost to the population,” said Ceyla Pazarbasioglu, the World Bank Group’s Vice President for Equitable Growth, Finance, and Institutions. “Policymakers should act promptly to enhance debt sustainability and reduce exposure to economic shocks.”

The analysis found that this latest wave is different from the previous three in several ways—it involves a simultaneous buildup in both public and private debt; it involves new types of creditors; and it is not limited to one or two regions.

Some of the increase in debt has been driven by China, whose debt-to-GDP ratio has risen 72 points to 255 percent since 2010. But debt is substantially higher in developing countries even if China is excluded from the…

Source link : Global Wave of Debt climbs to US$55 trillion, Largest, Fastest in 50 Years by World Bank

Krung Thai Bank Research Center predicted that in the next 10 years, Chinese tourists will increase by 6.9% per year on average, reflecting the increase of purchasing power of the Chinese middle class.

Growing from 160 million in 2019 to 334 million in 2030 worldwide due to increased purchasing power, Chinese visitors to Thailand should then reach 23 million by 2030 making Thailand the number one destination for tourists from China.

“The changing population structure will create around 33 million new Chinese tourists, with most Chinese tourists aged less than 35 years old, able to access information online and able to travel on their own. “

Dr. Phacharaphon Nantharamat, Senior Director of Krungthai COMPASS Research Center

Chinese tourism to Thailand could increase more than twofold in the next 10 years given that statistics over the last year show that around 11 million Chinese visited Thailand.

Source : Krung Thai Bank

The post Thai bank forecasts 23 million Chinese tourists in Thailand by 2030 appeared first on Thailand Business News.

Source link : Thai bank forecasts 23 million Chinese tourists in Thailand by 2030 by Zhang Fang

Asian cities dominate the global top 5 in the Expat City Ranking 2019, while Italian cities Rome and Milan join Kuwait City at the bottom of the scale.

Bangkok experienced a significant drop compared to the 2018 edition of the list, where Thailand’s capital ranked 5th worldwide and 4th in Asia. Poor environmental management and horrendous traffic conditions eventually took a toll on Bangkok ratings.

Bangkok now faces fierce competition in Asia, with Taipei, Kuala Lumpur and Ho Chi Minh City taking the lead.

• #1 Taipei manages to defend its first place from 2018.
• #2 Kuala Lumpur is rated the best city for getting settled.
• #3 Ho Chi Minh City ranks first in the Finance & Housing Index.
• #4 Following Singapore (#4) and Montréal (#5), European cities make up the rest of the top 10.

Ranking fifth out of all the cities surveyed in Asia, Bangkok ranks third in the Finance and Housing Index, but the city ranking was shot down by poor scores for environmental quality and political stability.

Some 59% of respondents say the environment is poor in Bangkok (vs 17% globally), and 36% worry about political stability (vs 17% globally).

Singapore’s fourth place further adds to Asian destinations dominating the Expat City Ranking 2019. The four top cities all do very well regarding finance and housing, with Singapore receiving the “worst” result here, a 15th rank mostly due to the expensive housing in the city-state: 53% of expats rate this factor negatively (vs. 44% globally). All four Asian cities rank among the top 20 of the Getting Settled Index, though results in the Urban Work Life Index and especially the Quality of Urban Living Index vary greatly.

Bangkok A Relatively Affordable Capital

Bangkok, the Thai capital, stays in the top 3 in the Finance & Housing Index for another year running. Although the city has dropped from second place in 2018 to third place in 2019, the feedback from expats is still positive.

With regards to how easy it is to find housing in Bangkok, 80% of respondents give agreeable answers, and 35% even completely agree (vs. 50% and 17% globally). The ease of finding a new, reasonably priced home appears to be an attractive aspect for expats moving to Bangkok; 58% of respondents find that the housing in the city is affordable (vs. 36% globally).

For the local cost of living in general, 63% of respondents rate Bangkok positively, which is 20 percentage points higher than the global average (43%). An expat in Bangkok praises the city for having a “much lower expense comparing to the same level of living standard”. The results also illustrate the contentment of expats with their financial situation in Bangkok: 63% rate this factor…

Source link : Bangkok drops to 20th spot on expat-friendly cities ranking by Olivier Languepin

According to Bot latest Press Release, the Thai economy continued to be on a decelerating trend in October. The value of merchandise exports continued to contract, mainly due to the economic slowdown of trading partners, consistent with deterioration in manufacturing production and private investment indicators.

Public spending contracted after last month’s expansion, from capital expenditures. However, private consumption indicators expanded at a higher pace compared with the previous month after temporarily benefiting from the government’s economic stimulus measures. The tourism sector also continued to expand well.​

          On the stability front, headline inflation edged lower on the back of falling energy prices while core inflation held steady. The seasonally adjusted unemployment rate slightly decreased, in line with the rising number of employed persons in agricultural sector. The current account registered a smaller surplus from trade balance. The capital and financial accounts posted a deficit from the asset position.

Details of the economic conditions are as follows:

The value of exports dropped by 5.0 percent

          The value of merchandise exports, both including and excluding gold, dropped by 5.0 percent compared with the same period last year.

The contraction of exports in several categories was due to
1) the economic slowdown of trading partners;

2) the continued downturn in electronic cycle without clear sign of recovery; and

3) the contraction of global crude oil prices, coupled with the temporary maintenance shutdown of oil refineries, leading to the contraction of petroleum-related products exports, both in terms of prices and quantity.

Nevertheless, the value of exports in some categories, including agro-manufacturing products, electrical appliances, and automotive and parts, continued to expand, partly as substitution for Chinese products in the US market. In addition, the exports of hard disk drive grew for the first time in 12 months, thanks to the relocation of production base to Thailand.

As a consequence of the merchandise exports contraction, manufacturing production continued to decline.

Private investment indicators continued to deteriorate

          Private investment indicators continued to deteriorate from the same period last year, in line with weak domestic and external demand. Investment in machinery and equipment continued to contract from imports of capital goods, domestic machinery sales, and the number of newly registered motor vehicles. Meanwhile, investment in construction declined from permitted construction area in almost every purpose, consistent with subdued construction…

Source link : Thai economy continued to be on a decelerating trend (Bank of Thailand) by Pr News

Governments across ASEAN have been unveiling an array of incentive packages to entice businesses affected by the US-China trade war.

Countries such as Thailand, the Philippines, Malaysia, and Indonesia have introduced tax breaks and initiatives to improve the ease of doing business whereas Vietnam, Singapore, and Cambodia have accelerated business reforms, such as executing free trade agreements (FTAs), and double taxation agreements (DTAs).

We consolidate and briefly discusses the development of each country’s incentives over the past year. The developments showcase how ASEAN members are distinguishing themselves from the fellow competition and what opportunities are available for investors looking elsewhere in Asia.

Thailand Plus

Thailand introduced a stimulus package called Thailand Plus that covers seven key points which include the introduction of new tax incentives and deductions.

Thailand already offers investors corporate income tax (CIT) exemptions through the Eastern Economic Corridor, but Thailand Plus allows companies to be eligible for further reductions if they invest at least 1 billion baht (US$32 million) and apply for the incentive before 2020.

Investors that are developing advanced technology, engaging in automation systems, or employ highly-skilled individuals in the fields of science, technology, engineering, and mathematics (STEM), can receive tax deductions of up to 200 percent.

Additionally, the government will amend the main law regulating foreign business activities to simplify the process of acquiring visas and work permits and to improve information sharing between the government and relevant state agencies.

Thailand will endeavor to expand its FTA network under Thailand Plus, reviving the Thailand-EU FTA and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Moreover, special investment zones for companies from South Korea, Japan, China, and the US will be developed.

Foreign investors with a foothold in the country, especially in high-value manufacturing sectors like electronics, automotive, aerospace, and maintenance, repair, and overhaul (MRO) services, could benefit from this latest package.

The Philippines’ CITIRA, and legislative amendments

In September 2019, the Philippines introduced the Corporate Income Tax and Incentives Rationalization Act (CITIRA). CITIRA will gradually reduce CIT from 30 percent to 20 percent over a ten-year period as well as rationalize specific tax incentives. The current CIT of 30 percent is the highest in ASEAN.

The Act is the second phase of the government’s Comprehensive Tax Reform Package program and aims to increase foreign investment,…

Source link : Trade War Incentive Schemes flourishing in ASEAN by ASEAN Briefing

BANGKOK (NNT) – The Office of the National Economic and Social Development Council (NESDC) has announced that Thailand’s Q3 2019 GDP growth came in at 2.4 percent, adjusting the overall GDP growth this year down to 2.6 percent, citing negative factors from the trade war affecting the export sector.

The council now expects 2020 GDP to grow at least 2.7 percent after businesses adjust their operations.

The NESDC Secretary General Thosaporn Sirisamphand said Thailand’s Q3 2019 GDP growth at 2.4 percent is an improvement over Q2 at 2.3 percent, albeit a slower than expected improvement due to a slowdown in the export sector, a trend which can be seen in every country.

Exports down 2 percent

He said the export sector’s performance this year is now expected to be a negative 2 percent, down from a previous prediction of a negative 1.2 percent, due to global economic challenges such as the trade war, the UK’s withdrawal from the EU or Brexit, and appreciation of the Thai Baht.

He said the Thai economy in Q4 2019 must grow by no less than 2.8 percent in order to achieve 2.6 percent annual growth as forecast, which would still be the smallest growth in 5 years.

The NESDC secretary general said today the Thai economy still has good prospects due to good domestic consumption in late 2019 to 2020, a slowly improving export sector thanks to the government’s promotion of newer markets, companies’ adjustment to trade war consequences, and the government’s economic stimulation measures.

Growth to pick up in 2020 on export recovery

He said these factors, along with an improving tourism sector, and the IMF’s new global economic forecast this year, will help improve Thailand’s economic performance in 2020, when the export sector is expected to grow at 2.3 percent, with 2020 GDP now expected to be within a 2.7 to 3.7 percent margin, or an average of 3.2 percent.

The post NESDC cuts Thailand’s growth to 2.6% appeared first on Thailand Business News.

Source link : NESDC cuts Thailand’s growth to 2.6% by National News Bureau of Thailand