Connect with us

Business

Economic outlook positive despite coup

Legacy Phuket Gazette

Published

 on 

PHUKET: Business and economic leaders have expressed confidence in the economy despite the uncertainty surrounding the direction the National Council for Peace and Order (NCPO) will take in the coming weeks and months.

The heads of several leading property development companies, including Italian-Thai Development Plc, Sansiri Plc and Land and House Plc, all of which have large projects underway or slated for Phuket, were ordered to report to the NCPO on May 25.

Since then, two of the companies have released statements that none of their projects have been affected by the coup and will continue as scheduled.”Sansiri Plc will continue normal business without
any effect on operations.

Chief Executive Officer Apichart Chutrakul and Chief Operating Officer Wanchak Buranasiri, along with other high-level executives of the company will perform their duties as usual,” said the statement released by Sansiri.

Anant Asavabhokhin, chairman of the executive board and chairman of the board of directors at Land and Houses Public Co Ltd was also called to report to the council.

Land and House General Manager Ruksaspong Khumkhuanjum, subsequently told the Gazette on Tuesday that the company’s projects would would not be affected.

“Mr Anant was called by the NCPO. For what reason, I have no idea. However, our projects are ongoing as is. All the investments are on the way, including current projects and others,” he confirmed to the Gazette.

The third developer to be called was Premchai Kamasutra, president of Italian-Thai Development Plc, the contractor for the Thainan underpasses currently being built on the bypass road. However, no Ital-Thai statement was available as this story went to print.

Property agencies unfazed

Leading property agencies Jones Lang LaSalle and Frank Knight have also expressed confidence that the property market would not suffer in the wake of the coup, saying that the industry had weathered similar events in the past with little or no negative effects.

“Our discussions with clients and business partners, including property developers, investors and corporate occupiers, showed that the coup came as no surprise,” Jones Lang LaSalle Managing
Director Suphin Mechuchep told The Nation on Tuesday.

“Similarly, since the political tension escalated late last year, we have seen developers, owners, investors and occupiers becoming more cautious, with some of them adopting a wait-and-see approach. There remains no clear evidence of the coup changing the situation at this stage,” Mr Suphin said.

Frank Khan, executive director and head of residential for Frank Knight’s Thai unit, said that the political crisis in Thailand is currently not a big deal for the property business, and that things were difficult in the first four or five months of the year and the real-estate market was soft, but the situation is gradually improving.

“To look on the bright side, the political unrest has been beneficial in that the condominium market has cooled down, reducing the likelihood of an oversupply,” he added.

Economic road map

Meanwhile, seven key private-sector organizations are drawing up an economic road map comprising short and long-term reform plans to be presented to the NCPO in a bid to help restore economic confidence in the Kingdom, reported The Nation.

The groups are the Thai Chamber of Commerce/Board of Trade, Tourism Council of Thailand, Thai Bankers’ Association, Federation of Thai Industries (FTI), Federation of Thai Capital Market Organizations, Stock Exchange of Thailand and Thai Listed Companies Association.

“The most important thing right now is to find ways to bring back confidence in consumption, investment and tourism. Each organization has also been tasked with coming up with a plan to enhance the country’s competitiveness for the next 15-20 years,” said Isara Vongkusolkit, chairman of the Board of Trade.

Supant Mongkolsuthree, chairman of the FTI, said there were seven frameworks within the road map. They include plans to increase the country’s competitiveness, enhance public and private investment, promote education and innovation, lessen social and economic inequality, fix corruption, reform regulations and create a new economic structure.

Banks praise rice payments

Other signs of economic confidence increasing after the NCPO’s breaking of the political deadlock include the rapid payback of rice farmers involved in the troubled rice-pledging project. Payments have already started to flow, enabling farmers to pay back debts and put money towards next year’s crops.

Commercial banks have expressed strong interest in bidding for a multi-billion-baht bridging loan under the rice-pledging project, as they believe the payment of long-overdue money to farmers marks the first step in fueling the sluggish economy.

Their interest comes after the Finance Ministry invited 32 state and private banks to bid for the first phase of a three-year program of bridging loans, totaling 50 billion baht, to the Bank for Agriculture and Agricultural Cooperatives (BAAC), so that rice farmers can be paid.The first 30-billion-baht tender will take place on June 6, while a second is scheduled for June 13. Vasin Vanichvoranun, executive vice president of Kasikornbank, told The Nation on Tuesday that, assuming legal issues surrounding such lending were fully clarified, the bank should have no problems about participating in the bidding.

“Rice payment [to farmers] is a good way to fuel the economy. However, we also have to pursue other projects, including infrastructure projects, which have not been announced yet,” he added. Other leading banks have expressed optimism that since the political impasse is over, investment funding for public infrastructure will begin to flow, boosting the economy.

Chansak Fuangfu, director and senior executive vice president of Bangkok Bank, said they were awaiting signals from the NCPO on such public infrastructure funding.

“What the bank has to monitor is additional public investment projects, which will fuel the economy significantly. We are awaiting the upcoming economic road map from the National Council for Peace and Order,” he said.

Arthid Nanthawithaya, senior executive vice president of Siam Commercial Bank, said a positive sign for the economy – and for boosting private-sector confidence – is the fact that the NCPO has announced it will give importance to public investment, and especially to major infrastructure projects.

— Chutharat Plerin / The Nation

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Thailand1 hour ago

Thailand News Today | Australian released from death row, Samui restaurant raided | September 20

News2 hours ago

Pathum Thani man allegedly lights building on fire, sticks around to laugh and smile

Thailand2 hours ago

Australian and American on Thai death row released from Thai death row, Supreme Court clears drug trafficking case

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

World3 hours ago

Insect snacks hit Japanese vending machines

Thailand4 hours ago

The Return of ‘THE TIM’ | Thaiger Bites | September 20

Coronavirus (Covid-19)4 hours ago

Monday Covid Update: 12,709 new cases; provincial totals

image
Join the conversation on the Thaiger Talk forums today!
Thailand4 hours ago

Pattaya laundry shop reports ladies’ underwear thief is on the loose

World5 hours ago

Hanoi to ease Covid restrictions this week

Thailand6 hours ago

Morning Top Stories | No approved October re-opening, Phuket easing restrictions | September 20

Thailand6 hours ago

Government believes more suspects involved in theft from budget meant for the disabled

Thailand8 hours ago

Dual Pricing and Reduced tax on Alcohol | Good Morning Thailand | Episode 92

Thailand8 hours ago

Around 20 people arrested at Koh Samui restaurant for drinking alcohol, gambling, playing pool

Bangkok8 hours ago

Bangkok residents warned of flooding risk as torrential rain forecast this week

Thailand9 hours ago

Government seeks to regulate infectious waste disposal charges

World9 hours ago

Manny Pacquiao to run for president of the Philippines

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14 | Thaiger
Thailand6 days ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand7 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism7 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket7 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism7 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand7 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism7 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand8 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand8 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand8 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand8 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand8 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand8 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand8 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand8 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending