Thailand unrest fails to deflate the Thai economy

Thailand has been beset by continuous political tension since 2008. And now, anti-government protestors vow to “shut down” Bangkok. But the protests have not derailed foreign direct investment or economic growth. Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his thoughts on the outlook for Thailand’s economy in China Daily – Asia Weekly.

Despite the on-going political unrest, Thailand’s economy continues to grow steadily. One of the drivers of this growth is foreign direct investment. The Thai Board of Investment, one of the region’s most respected investment boards, has managed to maintain investor confidence thus far.

However, adverse impacts have been felt on Thailand’s stock market, currency and inbound tourism during this period of intense political strife. Perera shared that the Thai tourist industry has been hit by flight and tour cancellations. Having said that, other key sectors such as chemicals, automotives, information and communications technology and agriculture will face minimal or no impact at all.

Of special interest is the automotive industry in Thailand, which has grown tremendously over the last three decades, and has emerged as the 7th biggest automobile center globally. Many auto heavyweights have relocated their manufacturing bases to Thailand to take advantage of the skilled and low-cost labor, as well as the easy access to emerging Asian markets. Perera shared that many investors are drawn to Thailand for its sound infrastructure and the opportunities that permit foreign firms to own the land they constructed their factories on.

However, investors are also eyeing Indonesia as an emerging manufacturing hub due to its domestic market size, gradual improvement in administrative environment as well as the advent of the ASEAN Economic Community in 2015. Thai exports have also slowed due to global export market weakness in some sectors, which is unrelated to the domestic political crisis.

It remains to be seen if Thailand will be able to sustain brisk economic growth amidst the growing competition from other economies and the prevailing uncertainties in global export markets.

https://www.spireresearch.com/newsroom/media/thailand-unrest-fails-to-deflate-the-thai-economy/

Comments

How will policies affect the construction industry?

- Mr. Japnit Singh, Senior Director, Singapore and India, Spire Research and Consulting India, as the world’s seventh largest country by area and second biggest by population, is one of the most dynamically growing, but largely untapped construction equipment markets. From 2013 to 2020, it is estimated to grow six times to a size of USD20 billion to USD25 billion. The Planning Commission, Government of India, jointly with the Indian construction industry has set up Construction Industry Development Council (CIDC) to take up activities for the development of the Indian construction industry. The Council, for the first time in the country, provides the impetus and organizational infrastructure to raise quality levels across the industry. This helps to secure wider appreciation of the interests of construction business by the government, industry and peer groups in society. CIDC is a change agent to accelerate a process of self-reform that should enable the industry to

Spire talks about strategic planning lessons from leading organizations in ASEAN

Spire was honored to participate in a seminar organized by Sumitomo Mitsui Banking Corporation (SMBC) on 15th July, in Singapore. Japnit Singh, Deputy CEO of Spire Group, shared his insights on strategic planning lessons from leading organizations in ASEAN. Japnit discussed five steps of strategic planning, strategic priorities and tools used by leading organizations in ASEAN. The strategic planning process can be seen as consisting of five steps, distributed amongst different departments in the organization. These steps are defining the vision, gathering and analyzing data, strategy creation, planning resources & outcomes and finally evaluation and monitoring. An organization should formulate an overall vision for the future, gather and analyze all the available data and also consider all the available critical items of information while monitoring and evaluating key performance indicators (KPI). For Singapore-based firms, ASEAN continues to be the most popular

Ghana citizenships to boost economy

In November 2019, 126 African-Americans and Afro-Caribbean’s were granted citizenship, in a ceremony that marks 2019 as the Year of Return. 500,000 tourists are expected to visit Ghana during the Year of Return, a considerable increase from the 380,000 that visited in 2018. Visa on arrival for some and waive off of Visa charges have been introduced. The government also plans to invest in educated returnees to help boost the economy through employment. Is investment in human capital the way to boost Ghana’s economy? Read more: https://www.spireresearch.com/newsroom/spirethoughts/ghana-citizenships-to-boost-economy/

Digital banking in Singapore

What will be the impact of digital banks in Singapore? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in Business Times – Singapore. More and more countries worldwide are issuing full bank licenses to digital-only banks. The competition from digital banks is being seen as a favorable development for the consumer. Digital banks with fewer physical branches and Automated Teller Machines to maintain could incur lower costs that could be passed onto the consumer. However, Perera highlighted that non-bank players entering the regulated banking space would need to learn a great deal in terms of maintaining cyber- security and managing financial risks. To overcome these challenges, regulators should work closely with licensed digital banks while also helping digital-only banks domiciled in Singapore to grow regionally. Get more information : https://www.spireresearch.com/newsroom/media/digital-banking-in-singapore/

Construction Sphere Magazine November 2013 Mumbai

How will policies affect the construction industry?

The Knowledge to Decide

Search This Blog