Thai government is looking for Western investors
According to the Bangkok Post, the air between the junta and the west has cleared. Prayut's visit to the UN contributed to this. The prime minister has eased concerns about the military coup, which has eased international criticism of Thailand.
Deputy Prime Minister Somkid of Economic Affairs adds that the economic outlook for this year and next year is good. The population has regained confidence in the future. With that the climate ripe for visits abroad to increase investor confidence in Thailand. The ministers of trade, science and transport are going on a trip to the west to interest investors. Somkid announces that he is going to Germany himself.
The increased consumer confidence is due to government stimulus measures, such as low-threshold credit for small and medium-sized businesses. Next week, the cabinet will take a decision on stimulus measures for the housing market, Somkid said.
The weakened baht is good for exports, he said. The 8,22 percent depreciation of the THB is an effect that follows the depreciation of the currency in other countries in the region such as the Malaysian ringgit (-16,4%) and the Indonesian rupiah (-9,73%) .
After the housing market, there will also be incentives for rice farmers. Somkid also says that the planned construction of metro and (high-speed) railway lines will also provide an economic boost.
Source: Bangkok Post – http://goo.gl/uWQy6D
The military regime has the thankless task of making something of it in this country, partly because of the pain left behind by previous cabinets. Certainly not an easy task. There is the necessary criticism and there are always people who know better and think things should be different because of their own view of the world. This will always be the case. In any case, there are initiatives, and as previously reported by Prayut, future governments will have to continue on the path they have taken and it will take some time before they reach a good economic level. Involving abroad is, I think, a condition for future success. Thailand is not an island and not as big as Russia, which thinks it can support itself, with Putin in power. Prayut's pep talks, I think, are heartfelt and heartfelt. The democracy so cherished by the West is sometimes violated. A soldier simply does not think the same as most politicians. They talk differently and are more direct. Personally, I'm more confident in this. The future with the cherished democratically elected leaders will tell. It remains a fascinating spectacle, but the chauvinism should make way for real involvement with foreigners, especially those who have been feeding this country for so long and try to survive within all applicable laws and regulations.
Well, the gentlemen politicians are also “entitled” to sweet trips. After all, they work terribly hard for their family; or was it for their country? Anyway, laughable and not really to be taken seriously. Serious investors will still wait until a democratically elected government is in place.
“According to the Bangkok Post, the air between the junta and the west has cleared. Prayut's visit to the UN contributed to this. The prime minister has allayed concerns about the military coup, which has reduced international criticism of Thailand.” At least that is the expressed opinion of Prayuth and his associates. Foreign approval of the military regime is unknown to me.
A depreciation of a currency means that investors do not like a country's economy. If that is the case, the value of that coin will actually increase. Look at Switzerland. The Swiss Franc was pegged to the Euro. The moment that link was released, the value of the Swiss Franc shot up.
Reference is made to the also declining exchange rate of the currencies in neighboring countries. Countries are economically most dependent on domestic consumption and the economy of neighboring countries. If the exchange rate of the surrounding countries also falls, it will be of no use to Thailand. On the contrary. Only exports to countries with a strong currency benefit from it. But the downside is that imports from those countries are more expensive.
The key, therefore, lies in economic reforms that stimulate domestic demand and promote exports. Prayuth's gossip doesn't change that. You stimulate domestic demand by giving the population more room to spend. The policy is apparently aimed at not doing just that. Giving credit to SMEs does not mean that the population will buy more. Giving SME credit in a bad economy only helps to bridge a bad period. If there is no prospect of economic recovery in the short term, every loan is a subsidy that will not be repaid after bankruptcy.
The fact that the economy in Thailand has to be kept going by various “stimulus measures” is indicative of economic confidence in Thailand. If citizens have no or insufficient spending space, then consumption will not be stimulated and those "stimulative measures" will have no effect on the overall economy, possibly on the wealthier layer of the population.
Talking about possible Western investors, but not giving permission or a work permit to a Farang who would like to start a business here. This is Thailand with two faces!
Sincerely,
Lodewijk
I think an investor wants full ownership and control over his company, including any real estate and plot of land.
In addition, the visa legislation should be relaxed.
Only then will SMEs gain the confidence to do business in Thailand.
The ministers of trade, science and transport are going on a trip to the west to interest investors, so I read. I don't think they mean SMEs by Western investors. After all, the policy shows that SMEs are preferably reserved for the Thai. They are encouraged to invest with low-threshold loans. No, these are large investors who are willing to take tons of money with them. The deputy prime minister is going to Germany himself (for that purpose), it is written. They will undoubtedly be presented with many privileges. But it is doubtful whether Western investors will allow themselves to be seduced by this. Land ownership and visa legislation will play no significant role in this.
First of all, one should get rid of that stupid idea of not granting us land in name, as if we can steal it or take it with us. Investors will not invest billions if they can only own 49% with a Thai director. A Thai can buy everything in the EU in his own name, and start a business without the obligation of 4 employees, which is mandatory here. Have often asked the EU ambassadors to do something about this, but the gentlemen were apparently too busy with their parties and celebrations that are in abundance here. The visa regulations are no longer fun and many understand little about them. Everything that can be done easily is made very difficult with a lot of bureaucratic nonsense. Too bad but only see Thailand as a nice holiday country, but if you want to do business here you have to have a strong heart and above all a lot of patience. I have my yellow applied for a house book at the time and had to come back for it 8 times, with so many unnecessary and nonsensical statements and 2 witnesses, etc. It could have been shorter, but then I would have had to move it, which is against my principle. worked and that I wanted her name and copy ID, the yellow house booklet came out of the drawer, and this arrogant dragon suddenly became very friendly. Unfortunately, sometimes you have to play bluff poker.
Nice to hear that "the air between the junta and the west has been cleared". In the season of the thypoons, the rain washes all the dust from the air. Or is there another explanation? Could it be that the TTP agreement is on the horizon?
A series of Pacific countries, including the United States, Canada, Chile, Japan, Vietnam and Australia, are signing a free trade agreement, the Trans-Pacific Partnership TPP. Not to be confused with TTIP, Transatlantic Trade and Investment Partnership, which smoothes Euro-American relations.
Thailand is not (yet) in the TTP club. Difficult students rarely sit in the front row of the classroom. But if they are on an improvement process, they can move forward. For example, an “entry option” has been provided for Thailand, and a few other countries, in the TTP agreement. Such an entrance ticket is of course not unconditionally “free”. Even though Thailand is sometimes literally translated as Land of the Free.
Free trade agreements such as TTP force Thailand and its leaders to make fundamental strategic choices. Choices that are not purely economic in nature. If Thailand does not want to miss the opportunity to improve its trade balance, it will have to do a few things.
The global power game between the great powers is unrelenting ... and small(er) countries are being squeezed between the power curds to serve higher interests.
Nice that mister General and his friends are now also publicly giving paws to Uncle Sam :-). However, it remains doubtful whether that will be enough to get hold of an entrance ticket to the TTP club.
In order to fall on its feet in the international power game, Mr. General and his friends will also have to untangle a few Gordian knots at home ... and those are still tangles in which the legs can get badly caught. For that, it remains to wait for HE to come, before the plot will unfold … unravel.