Connect with us

Business

Trying to find a pulse in Thailand’s economic health

The Thaiger

Published

 on

Trying to find a pulse in Thailand’s economic health | The Thaiger

Thailand’s economy is south-east Asia’s wounded soldier as the newly elected Thai government tries to boost confidence and stimulate the economy after five years of military rule. Certainly the past 12 months have been the most challenging.

GDP growth hit a four-year low of 2.8% for Q1 2019 and exports remain weak.

Despite having unlimited power for half a decade, PM Prayut and the NCPO have done little to improve Thailand’s economic situation or the plight of the average Thai.

Going after the previous premier and the elected Pheu Thai government as soon as they came to power over a rice pledging scheme (subsidies for rice farmers), the NCPO have used the same blunt tool of agricultural subsidies to keep the northern and north-east farmers ‘happy’. After all, that was Prayut’s big promise after seizing power in 2014, “bringing happiness back to the people”.

Big infrastructure promises and spending have made good headlines but are yet to show any economic gain for most Thai people. It hasn’t really made Thai people ‘happy’ yet.

Of the ASEAN 5 economies (Indonesia, Malaysia, Vietnam, Philippines and Thailand), the Land of Smiles has performed the worst over the fast five years averaging 3.6% growth against the average of the other four nations of 5-6.2% GDP growth.

For 2019, Thailand’s National Economic and Social Development Council, responsible for calculating the official GDP figures, has set growth at 3.3-3.8%, down from 4% estimated at the start of the year. If the tourist tap stops gushing and slows to a trickle and the export figures keep trending down, the estimates may have to be revised down further again.

Trying to find a pulse in Thailand's economic health | News by The Thaiger

SOURCE: Global Economic Data, Indicators, Charts & Forecasts

Following the election and the (soon) completed formation of the new government it would appear that political stability abounds for Thailand but the fragile 19-party coalition is not predicted to last long. It’s also considered unlikely the new PM, who is the old PM from the five years of military rule, will be a fan of lengthy discussions, public consultation and parliamentary debate. Some of the smaller parties, who threw their weight behind the pro-junta coalition initially, are now getting flakey and looking to cross the floor and take their place in the back-benches of the opposition side of the new parliament.

Public debt has also steadily risen under military rule, climbing to 34% of GDP last year from 30% when they came to power. But international credit rating agencies are not ringing alarm bells just yet and Thailand’s public debt levels remain lower than Vietnam, Malaysia or Indonesia.

Thailand’s two largest infrastructure projects will surely continue to manifest, though the next phases of the contract will now be subject to debate in the new parliament. These include the 225 billion baht high-speed rail link between Suvarnabhumi, Don Mueang and U-Tapao international airports, and the China-backed high-speed line between Bangkok and the Thai-Laos border with a proposed budget of 300 billion baht.

And the Eastern Economic Corridor (EEC), the expansion of industry for the areas from Bangkok’s east to Rayong, will remain a showcase for economic growth for the new government.

Thailand will now have to choose whether it’s sufficient to keep surfing along as the wounded soldier of south-east Asian economies or whether it can muscle its way back to a position of regional economic prominence.

Trying to find a pulse in Thailand's economic health | News by The Thaiger

SOURCE: National Economic and Social Development Council

Keep in contact with The Thaiger by following our Facebook page.



Do you need help with your business? Are you searching for a new job? Or an employer looking to hire? Try JobCute today.

Read more headlines, reports & breaking news in Thailand. Or catch up on your Thailand news.

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Out of 37 countries, Thailand has the worst pension system, says Bloomberg

May Taylor

Published

on

Out of 37 countries, Thailand has the worst pension system, says Bloomberg | The Thaiger

Thai Residents reports that on Sunday, Bloomberg published an article on the world’s best pension systems, using information gathered from the 2019 Melbourne Mercer Global Pensions Index.

The survey looked at the pension systems of 37 countries with metrics including employee rights, savings, the number of homeowners, growth of assets, and growth of the economy. The purpose of the analysis was to determine what was needed to improve state pension systems and to gauge the level of confidence citizens had in their state pension system.

The Netherlands and Denmark were found to have the world’s best state pensions, with Australia, Finland, Sweden, Norway, Singapore, New Zealand, Canada, and Chile next. Out of all 37 countries, Thailand finished last, with what the report described as an extremely ineffective and ambiguous system.

“Thailand was in the bottom slot and should introduce a minimum level of mandatory retirement savings and increase support for the poorest.”

Out of 37 countries, Thailand has the worst pension system, says Bloomberg | News by The Thaiger

Photo: WorkpointNews

Thai Residents states that only those employed within the government system in Thailand are eligible for a pension based on salary. For most Thai citizens, pension amounts vary from 600 baht to 1,000 baht a month, depending on the recipient’s age.

A report carried out by The Securities and Exchange Commission (SEC) advises Thai citizens to have at least 4 million baht saved by the time they retire, but Thai Residents reports that 60% of Thai retirees have less than 1 million baht in savings, with one in three citizens who have reached retirement age are forced to continue working in order to survive.

SOURCE: thairesidents.com

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Bangkok

Another Thai hotel management dispute flares up – The Peninsula Bangkok Hotel

The Thaiger

Published

on

Another Thai hotel management dispute flares up – The Peninsula Bangkok Hotel | The Thaiger

PHOTO: The Peninsula Bangkok Hotel

The Hongkong and Shanghai Hotels, which operates luxury brand The Peninsula Hotels, says it will “vigorously defend its rights” to manage The Peninsula Bangkok, following a legal win by the hotel’s Thai shareholder that paves the way for the management agreement to be terminated.

And so the open wounds of a business saga are now on full display between a international hotel management company and the local Thai owners. This time it’s involving one of Bangkok’s best known luxury hotels.

Thai business law prevents many of the international hotel brands actually owning the properties so wealthy Thai families acquire the properties and then contract international hotel expertise to manage the assets where two entities are trying to get a larger slice of the pie. And, for now, the pie is getting smaller with the contraction in the traditional hotel business and the challenges Thai tourism is currently facing.

Peninsula Hotel, the iconic 370 room Chao Phraya riverside hotel, is 50% owned by the Phataraprasit family and the other half by The Hongkong and Shanghai Hotels’ subsidiary in Bangkok.

The Peninsula Bangkok is a 5-star hotel in Bangkok, Thailand. The hotel opened in 1998, counting 37 floors and 367 rooms.

Skift.com reports that the Thai shareholder went to court after it failed to end the agreement in the boardroom on January 26, as it was blocked by the Hong Kong and Shanghai Hotels subsidiary, which has a voting majority in the board. But on September 10, the local Thonburi Civil Court ruled that the subsidiary should not have been allowed to vote on a resolution regarding the termination of the agreement.

The legal case between a Thai owner and hotel chain managers over non-performance, isn’t the first. Minor International is suing Marriott International is sueing the Marriott Group for a “highly disappointing” performance of the JW Marriott Phuket Resort & Spa in Mai Khoa. Minor fully owns the luxury beachside hotel and and Marriott manages. The lawsuit was filed on July 12. The case is ongoing.

The statement says…

“Any termination of Peninsula’s management would be tantamount to a breach of the shareholders agreement between Hongkong and Shanghai Hotels and the Phataraprasit shareholders, as well as the Peninsula’s management agreement. Hongkong and Shanghai Hotels will vigorously defend its rights. Pending the outcome of the appeal and other legal processes which are ongoing, The Peninsula Bangkok continues to be operated by The Peninsula under the hotel management agreement which continues to be legally binding.”

Some background, the Thai Phataraprasit family, who also have interests in The Mall Group (that manages the Siam Paragon and Emporium shopping centres in Bangkok), alleges that The Hongkong and Shanghai Hotels had not run the hotel profitably in the last 20 years.

In an article in the Bangkok-based Travel Impact Newswire, Pradit Phataraprasit, head of the Thai family’s investments, had strong words.

“In the last 20 years, there has not been a single year in which the Peninsula hotel group’s management company has run the hotel profitably for its shareholders.”

“The Peninsula sits on one of the most expensive riverside land plots in this city but, very curiously, it cannot yield a dividend for its shareholders. We have been very patient with the management company belonging to our partners from Hong Kong. However, the time has come for another management company to run this hotel.”

For their part the COO of Hong Kong and Shanghai Hotels, Peter Borer, says the group had always operated “with integrity” regarding the operation of the hotel.

“Over the past decade, the hotel’s financial performance has been affected by political uncertainties and a challenging luxury hotel market in Bangkok, but as a group with a long-term investment philosophy, we have always remained committed to Thailand.

Commenting on the ongoing legal fracas….

“The daily operations of the hotel are not currently affected pending the final outcome of the legal actions.”

The company’s Q1&2 results shows the hotel had a drop of 5% in revenue compared with January to June last year. The average room rate rose 8%, but the occupancy rate dipped 6%.”

Reporting on the results so dar this year….

“The Peninsula Bangkok reported a relatively soft start to the year, impacted by a slower economy and uncertainty over the country’s first elections since 2014. Our hotel was also negatively affected by extensive roadworks adjacent to our property which impacted our food and beverage and catering business.”

Again, the Phuket boat tragedy, killing 47 Chinese tourists in July 2018, was presented as a key reason for current woes.

“Chinese mainland tourist arrivals declined year-on-year following a tragic boating accident in Phuket in 2018 which led to reduced group tourism to the country overall.”

Two years ago Pradit Phataraprasit was named as being involved in the Dhammakaya Temple scandal.

“Prominent Businessman Pradit Phataraprasit has denied any involvement in alleged embezzlement or the scandal-hit Dhammakaya Temple after records show he bought a land plot from a suspected money launderer.”

SOURCE: skift.com

Another Thai hotel management dispute flares up - The Peninsula Bangkok Hotel | News by The Thaiger

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Business

500 people own 36% of equity in Thai companies

Greeley Pulitzer

Published

on

500 people own 36% of equity in Thai companies | The Thaiger

Roughly 36% of Thailand’s corporate equity is held by just 500 people, highlighting wealth inequality in the Kingdom, according to a study released by the Bank of Thailand’s research institute.

Each of these 500 amass some 3.1 billion baht (102 million USD) per year in company profits, according to the report from the Puey Ungphakorn Institute for Economic Research. In contrast, average yearly household income in Thailand is around 10,000 USD.

A report out this week from the Economic and Business Research Centre for Reform at Thailand’s Rangsit University also pointed to divisive and polarised politics being another root cause of the economic divide.

Thailand’s private sector is dominated by tycoons running sprawling conglomerates. According to the World Bank, the gap between the mega-wealthy and the rest of the Thai population of 69 million is among the many economic challenges for Thailand. According to Bloomberg, the perception of a divide, exacerbated by an economic slowdown, is a major political fault line.

“Magnates arise in Thailand from institutional factors that privilege certain businesses,” said the executive director of PIER, author of the study.

The institute said Thailand needs to promote competitiveness to reduce profits from monopoly power and bolster entrepreneurship to create a more equitable distribution of corporate wealth.

The research is based on analysis of 2017 Commerce Ministry data on the 2.1 million shareholders in Thai firms, and was funded by the University of California San Diego.

SOURCE: Bangkok Post

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

The Thaiger Newsletter

Keep up with all the day’s news. Subscribe here.

The latest news and information from Thailand.

* indicates required
สรุปดราม่า “หนังน้องเดียว ลูกทุ่งวัฒนธรรม” เล่นหนังตะลุง “ด่าพระสงฆ์” | The Thaiger
ข่าว2 days ago

สรุปดราม่า “หนังน้องเดียว ลูกทุ่งวัฒนธรรม” เล่นหนังตะลุง “ด่าพระสงฆ์”

ม็อบ “สมัชชาคนจน” เดินเท้าถึงทำเนียบ กดดันรัฐบาลไม่จริงใจ [Live] | The Thaiger
ข่าวการเมือง3 days ago

ม็อบ “สมัชชาคนจน” เดินเท้าถึงทำเนียบ กดดันรัฐบาลไม่จริงใจ [Live]

ชมวาทะเด็ดธนาธร ให้การศาลรัฐธรรมนูญ คดีวีลัค ทำงานการเมืองเพราะอยากเปลี่ยนแปลงสังคม | The Thaiger
ข่าวการเมือง6 days ago

ชมวาทะเด็ดธนาธร ให้การศาลรัฐธรรมนูญ คดีวีลัค ทำงานการเมืองเพราะอยากเปลี่ยนแปลงสังคม

ตรวจหวย 16/10/62 รางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ | The Thaiger
ตรวจหวย1 week ago

ตรวจหวย 16/10/62 รางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ

ตรวจหวย 16 ตุลาคม 2562 ผลสลากกินแบ่งรัฐบาล 16/10/62 | The Thaiger
ตรวจหวย1 week ago

ตรวจหวย 16 ตุลาคม 2562 ผลสลากกินแบ่งรัฐบาล 16/10/62

ถ่ายทอดสด “สลากกินแบ่งรัฐบาล” 16 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สด ๆ | The Thaiger
ตรวจหวย1 week ago

ถ่ายทอดสด “สลากกินแบ่งรัฐบาล” 16 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สด ๆ

หนุ่มแท็กซี่ฉาว ท้าต่อยเจ้าของธุรกิจเต๊นท์ กลางงานสนามหลวง | The Thaiger
ข่าว1 week ago

หนุ่มแท็กซี่ฉาว ท้าต่อยเจ้าของธุรกิจเต๊นท์ กลางงานสนามหลวง

ไทยแชมป์วอลเลย์บอลอาเซียนกรังด์ปรีซ์สนาม 2 รางวัลรายบุคคล | The Thaiger
วอลเลย์บอล2 weeks ago

ไทยแชมป์วอลเลย์บอลอาเซียนกรังด์ปรีซ์สนาม 2 รางวัลรายบุคคล

ตรวจหวย1ตุลาคม2562 ผลรางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ | The Thaiger
ตรวจหวย3 weeks ago

ตรวจหวย1ตุลาคม2562 ผลรางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ

ถ่ายทอดสดหวย 1 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สลากกินแบ่งรัฐบาล | The Thaiger
ตรวจหวย3 weeks ago

ถ่ายทอดสดหวย 1 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สลากกินแบ่งรัฐบาล

สีจิ้นผิงกล่าวสุนทรพจน์ ครบรอบ 70 ปีก่อตั้งสาธารณรัฐประชาชนจีน -ลิงก์ถ่ายทอดสด | The Thaiger
ต่างประเทศ3 weeks ago

สีจิ้นผิงกล่าวสุนทรพจน์ ครบรอบ 70 ปีก่อตั้งสาธารณรัฐประชาชนจีน -ลิงก์ถ่ายทอดสด

คลิปไฮไลท์วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 5 | The Thaiger
วอลเลย์บอล1 month ago

คลิปไฮไลท์วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 5

คลิปไฮไลท์ วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 1 | The Thaiger
วอลเลย์บอล1 month ago

คลิปไฮไลท์ วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 1

Paramount เตรียมรีเมค FACE/OFF หนังบู๊ระดับตำนาน | The Thaiger
หนัง1 month ago

Paramount เตรียมรีเมค FACE/OFF หนังบู๊ระดับตำนาน

ประยุทธ์ โต้ รัฐบาลไหนก็มีตำหนิทั้งนั้น “ถึงเวลาก็อ้างอย่างที่ผมอ้าง” | The Thaiger
ข่าวการเมือง1 month ago

ประยุทธ์ โต้ รัฐบาลไหนก็มีตำหนิทั้งนั้น “ถึงเวลาก็อ้างอย่างที่ผมอ้าง”

Trending