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Safe for now???

Chatty

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That's my question after I read the news about Thai's economic. Actually, I'm not good at business and economic. They are the subject I hate. lol. However, this time I think I should turn back to see what's going on the care about it.So I copy and pasted the news from Bangkok post's Top stories.  Safe for now. By Chatrudee Theparat Thailand's economic fundementals are sound and the country is well-insulated from the turmoil in the global financial markets, economic policymakers say.Deputy Prime Minister Olarn Chaipravat said the Thai financial sector had been little affected by the events of the past month, and that the local economy remained fundamentally stable. But the government nevertheless was preparing new short-term and long-term measures to minimise any impact the volatility in global markets might have on the Thai economy. Finance Minister Suchart Thada-Thamrongvech said civil service salaries and the government's SML community grant programme could be given a boost to help stimulate economic growth. Thailand had ample room to expand spending considering public debt was quite low at just 36 per cent of gross domestic product, he said. Other measures being considered include speeding up public investment and spending, implementing new tax incentives to encourage investors to increase contributions to retirement funds and making renewed efforts to strengthen regional economic cooperation. The programme comes as financial markets across the world plunged on Tuesday after the US Congress rejected a US$700 billion bailout plan for US banks. The vote on Monday led the Dow Jones Industrial index to its largest one-day points drop in history and spurred sharp declines in markets across the world on investor fears that more bank failures would soon lead to corporate bankruptcies and slower economic growth. Asian and European markets on Tuesday posted sharp falls upon opening but later regained ground amid nervous trade. Thai stocks closed down 0.79 per cent following a strong rebound after dropping more than 5 per cent in the first few minutes of trade. Oil prices slumped to less than $100 a barrel on fears of lower demand as global economic activity falls. Analysts said although there were hopes the US government would eventually approve a rescue package, sentiment remained poor over the prospects for the US and global economy. Mr Olarn, who chaired a crisis meeting on Tuesday with economic policymakers, took pains to stress Thai banks were not affected by the problems in the US housing market that have already claimed some of the largest institutions on Wall Street as casualties. Thailand's economic fundamentals remain solid, and the declines in local share prices offer a good opportunity for long-term investors, he said. The Stock Exchange of Thailand (SET) index has fallen by nearly 30 per cent from the beginning of the year due largely to foreign selling as a result of the US sub-prime mortgage crisis and the credit crunch. Domestic political instability and high oil prices and inflation have also affected investor sentiment. Mr Olarn said the Thai stock market would urge investors to take advantage of the price declines to boost their contributions to long-term savings funds. The Finance Ministry would also consider boosting tax incentives for contributions to retirement mutual funds and long-term equity funds made over the next several months. Other ministries would also accelerate spending programmes, including work on 1.7 trillion baht worth of infrastructure mega-projects, to help support economic growth. The Finance Ministry will ensure that sufficient credit is available for small businesses, consumers and farmers to meet demand, particularly in the harvest season over the next several months. New bond issues by the government could be delayed to ease any funding constraints in the local market. Tarisa Watanagase, the governor of the Bank of Thailand (BoT), said authorities were monitoring liquidity conditions closely and indicated monetary policy could be eased to help support growth as inflation had now eased. Mr Olarn said Thailand would also hold talks with other Asean members to boost economic cooperation to help buffer the region against turmoil in the US and European markets. But while policymakers sought to reassure investors the local impact from the global crisis would only be modest, analysts and economists said it was inevitable Thailand would be affected by a world economic slowdown. Economic data released on Tuesday by the BoT showed investment, consumption and exports all slowed in August from the first half of the year, in part due to business and consumer concerns about domestic politics as well as worries about trends abroad.Should we save money now??
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Chatty
That's my question after I read the news about Thai's economic. Actually, I'm not good at business and economic. They are the subject I hate. lol. However, this time I think I should turn back to see what's going on the care about it.So I copy and pasted the news from Bangkok post's Top stories.  Safe for now. By Chatrudee Theparat Thailand's economic fundementals are sound and the country is well-insulated from the turmoil in the global financial markets, economic policymakers say.Deputy Prime Minister Olarn Chaipravat said the Thai financial sector had been little affected by the events of the past month, and that the local economy remained fundamentally stable. But the government nevertheless was preparing new short-term and long-term measures to minimise any impact the volatility in global markets might have on the Thai economy. Finance Minister Suchart Thada-Thamrongvech said civil service salaries and the government's SML community grant programme could be given a boost to help stimulate economic growth. Thailand had ample room to expand spending considering public debt was quite low at just 36 per cent of gross domestic product, he said. Other measures being considered include speeding up public investment and spending, implementing new tax incentives to encourage investors to increase contributions to retirement funds and making renewed efforts to strengthen regional economic cooperation. The programme comes as financial markets across the world plunged on Tuesday after the US Congress rejected a US$700 billion bailout plan for US banks. The vote on Monday led the Dow Jones Industrial index to its largest one-day points drop in history and spurred sharp declines in markets across the world on investor fears that more bank failures would soon lead to corporate bankruptcies and slower economic growth. Asian and European markets on Tuesday posted sharp falls upon opening but later regained ground amid nervous trade. Thai stocks closed down 0.79 per cent following a strong rebound after dropping more than 5 per cent in the first few minutes of trade. Oil prices slumped to less than $100 a barrel on fears of lower demand as global economic activity falls. Analysts said although there were hopes the US government would eventually approve a rescue package, sentiment remained poor over the prospects for the US and global economy. Mr Olarn, who chaired a crisis meeting on Tuesday with economic policymakers, took pains to stress Thai banks were not affected by the problems in the US housing market that have already claimed some of the largest institutions on Wall Street as casualties. Thailand's economic fundamentals remain solid, and the declines in local share prices offer a good opportunity for long-term investors, he said. The Stock Exchange of Thailand (SET) index has fallen by nearly 30 per cent from the beginning of the year due largely to foreign selling as a result of the US sub-prime mortgage crisis and the credit crunch. Domestic political instability and high oil prices and inflation have also affected investor sentiment. Mr Olarn said the Thai stock market would urge investors to take advantage of the price declines to boost their contributions to long-term savings funds. The Finance Ministry would also consider boosting tax incentives for contributions to retirement mutual funds and long-term equity funds made over the next several months. Other ministries would also accelerate spending programmes, including work on 1.7 trillion baht worth of infrastructure mega-projects, to help support economic growth. The Finance Ministry will ensure that sufficient credit is available for small businesses, consumers and farmers to meet demand, particularly in the harvest season over the next several months. New bond issues by the government could be delayed to ease any funding constraints in the local market. Tarisa Watanagase, the governor of the Bank of Thailand (BoT), said authorities were monitoring liquidity conditions closely and indicated monetary policy could be eased to help support growth as inflation had now eased. Mr Olarn said Thailand would also hold talks with other Asean members to boost economic cooperation to help buffer the region against turmoil in the US and European markets. But while policymakers sought to reassure investors the local impact from the global crisis would only be modest, analysts and economists said it was inevitable Thailand would be affected by a world economic slowdown. Economic data released on Tuesday by the BoT showed investment, consumption and exports all slowed in August from the first half of the year, in part due to business and consumer concerns about domestic politics as well as worries about trends abroad.Should we save money now??
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sunsnow

"But while policymakers sought to reassure investors the local impact from the global crisis would only be modest, analysts and economists said it was inevitable Thailand would be affected by a world economic slowdown. " Well, if Thailands biggest trading partner is in economic turmoil, for sure it will affect Thai economy. Thailand doesn't live in a bubble...

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aidon2004

Sorry for the long reply but the major issue facing the Thai economy is the exit of funds from the stock market remitted overseas reducing liduidity in the market. This is a symptom of the current financial crisis. Excerpt from current economic predictions about the Thai economy:

1. The government continues to face problems in managing the economy, with the domestic economy remaining sluggish amid high inflation. For the time being, it appears intent on pushing ahead with an expansionary fiscal policy.

2. Assuming that the government succeeds in increasing its influence over the Bank of Thailand (BOT, the central bank) following recent appointments to the bank?s board, the BOT is likely to adopt a less hawkish stance.

3. The economy will weaken sharply in the second half of 2008, with growth for the year averaging 4.8%. In 2009, in line with a further slowdown in the global economy, GDP growth is forecast to drop to just 3.9%.

4. Consumer price inflation eased in August, and the Economist Intelligence Unit now forecasts inflation to average 6.4% this year. Inflation will slow to 4% in 2009 as supply-side pressures ease.

5. The pace of export revenue growth will slow in 2008-09, while import demand will pick up. The current-account position will hence deteriorate.

All is not doom and gloom, although the SET will test resistance levels (technical) over the next couple of weeks, generally the economy is stagnent and will remain that way for a while to come.

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Exploring

Thanks for concise infos bcool, all you posted here is useful for us , especially ones who are in financiak sector or business sector.

Well most of economics indicators that we "percieve" look bad, but there is a few sign that we never know , for ex Money base that

The BOT inject them to the economy buy reperchase the gove bonds in the bond market. If the autorities make the wrong

adjustment we will face the thai economy meltdown for sure that why we keep the bot independent.

For this state , we can't separate Thai economy for the world, so I will have an eye on banking sector first, if we got the bad news.

Then, definitely we are in "real problem". Anyway, cuting interest rate is a good way to boost an economy though since we will have

lower funding cost, but again "moral harzard"

For us as individual, hmm I might suggest hoding cash, but i would rather spend carefully because if u stop spending heck!

it will be another problem man! hahaha!

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bigKus

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:-D

ÅéÃàÅè¹¹Ã

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funky_house

You have to remember bCool, that a lot of people won't have the money to go on holiday for the next couple of years. If the number of tourists to Thailand drops significantly, that alone will effect the Thai economy, without all the other problems.

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Chatty

Actually, I think about another problem, what if everyone save money, not spend it out... business can't grow up...

such as my family business, laundry service... if people do they own we will die for sure :P

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Chatty

I discuss with my dad and friends many years ago, that why Thai tied ourselves to "Tourism" business and "Export" business only. We focus on that and forgot that we are agricultural country.

I know it sounds like undeveloping idea but if you see now... if people in the world don't wanna spend thier money to come to Thailand... many business will drop down.. such as my company business (Wanna be Asia hub healthcare) Thks god that the admin team could see the future... they focus on Thai target group for years.

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English_Bob

Hmmm all those boom years of foreign investment missed out upon because of confusing, xenophobic rules and widespread corruption.

I wouldn't trust this government to get Thailand out of this mess - they're too busy trying to keep their jobs and kickbacks to see the big picture.

This (VERY) low season could be just the beginning... God help us if Myanmar ever becomes a democracy... thousands of unspoilt, undeveloped islands, grateful population and much lower prices. It would be a tourist Mecca. Thailand would REALLY suffer.

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Bruce551

If the BTS and Thai railway expansion projects get rolling that help the economy along. However, Thailand's Renewable Energy policy is weak and benefits special interests. This RE policy hurting the Thai economy.

The U.S. congress is passing a bill that provide 30% investment Tax Credit 09 to 2016 for companies and individuals who invest in RE (Solar & Wind Power) Right now there is a huge investment in RE projects in the USA, money (billions) for solar PV cell manufacturing plants flowing in to the U.S. from the EU, Japan, and China. There is more venture capital invested in RE today than there was in the dot-com boom of 1998. There 's so much work in building RE power plants that American companies can't keep up and many contracts are being awarded to foreign companies.

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petey

The economic and market problems in the USA has weakened the economies in so many parts of the world. I agree the primary impact to Thailand will be in tourist industry. The agriculture staples of the country will still be in demand.

And it is definitely a good time to save money, my friend.

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bigcatbus

bCool, as I know, tourist business is less than 10% of thai economy, but tourism is a biggest cashflow source. I think, problem is not so big right now, but if situation will not be cured in next 6-10 month, this will be a great slowdown and for several years in row...

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