Thai films: in need of a (tax) break
December 8th, 2010
http://blogs.ft.com/beyond-brics/2010/12/08/thai-films-in-need-of-a-tax-break/
Despite the help of Aung San Suu Kyi and Bill Clinton, the Thai film industry is struggling. Luc Besson’s Dans la Lumiere – a biopic about the life of Aung San Suu Kyi, the Burmese opposition leader – is being filmed in Thailand and Clinton passed through to shoot a cameo role in the Hollywood movie The Hangover II, part of which is set in Thailand.
However, the celebrity support has not stopped a decline in Thai film-making, with producers going elsewhere in the region for their locations and tax-breaks. (more…)
Export worries after Thai rate rise – Financial Times
December 3rd, 2010
http://blogs.ft.com/beyond-brics/2010/12/03/export-worries-after-thai-rate-rise/
When Thailand’s central bank governor, Prasarn Trairatvorakul, was appointed in July, he said that the country’s interest rate would be lifted to 2 per cent from 1.25 per cent by the end of the year. So, from a longer-term perspective, Wednesday’s surprise interest rate hike should have been expected.
But the move did cause a stir. It represented a hedge against inflation concerns: prices rose 2.8 per cent in November, making real interest rates are negative. However, given that low interest rates haven’t deterred an influx of foreign capital into Thailand, the government fears that higher rates will push up the currency even further – hurting exports.
“We are concerned about the impact from the rate increase at a time when the economy has started to slow down,” said finance minister Korn Chattikavanij. The IMF expects Thai growth to be 7.5 per cent this year, led by strong exports, before slowing to 4 per cent in 2011. (more…)
Why Thailand invests in Burma – Financial Times
December 3rd, 2010
http://blogs.ft.com/beyond-brics/2010/12/02/why-thailand-invests-in-burma/
There is some confusion over whether Thailand or China is the biggest source of foreign investment in Burma. But it’s clear that Thai interest is gathering pace: the Saha Group is the latest Thai cash-rich business to enter the hermetic south-east Asian country, announcing a plan to open 25 stores there by 2012.
And Burma offers more than just a untapped market. For Thai businesses, the country also offers respite from the environmental and other corporate standards that exist at home.
The Thai prime minister, Abhisit Vejjajiva, heard as much last month, when he visited the Map Ta Phut industrial estate (pictured), in south Thailand. Seventy-six projects on the estate remain closed, after a court ruling regarding residents’ complaints about leukemia and cancer rates in the area. A business lobby group is unhappy – and handed Abhisit a letter, outlining its grievances over the government’s handling of the case.
Compare that to Burma. where there’s little chance of a court intervening so forcefully. (more…)
Surprise Thai interest rate hike – Financial Times
December 1st, 2010
http://blogs.ft.com/beyond-brics/2010/12/01/snap-surprise-thai-rate-rise/#more-161051
Central bankers like to keep the markets guessing and the Bank of Thailand is no exception. In a surprise move it raised its key interest rate by 25 basis points on Wednesday to 2 per cent and hinted at more increases to come.
Following two earlier quarter-point hikes in the summer, the move hardly comes as a big shock but it signals that officials are somewhat more concerned about inflationary risks than they were three months ago – and than investors had thought. The Thai bhat rose on the news and later traded 0.43 per cent up on the US dollar at 30.04.
Wellian Wiranto, HSBC Southeast Asian economist based in Singapore, told beyondbrics that the move “was a surprise to us”. (more…)
Thai electoral fraud case dismissed – Financial Times
November 29th, 2010
http://www.ft.com/cms/s/0/a1f7a72a-fb99-11df-b79a-00144feab49a.html
By Simon Roughneen in Bangkok
A Thai court has dismissed an electoral fraud case that could have seen the removal of prime minister Abhisit Vejajiva and the dissolution of the ruling Democrat Party.
The party had faced charges that it misused a 29m baht ($950,000) grant from the Election Commission for campaigning in a 2005 election. However, the allegations were not considered by Thailand’s Constitutional Court on the grounds that the Election Commission had exceeded a 15-day statute of limitations to file the proceedings.
“The filing by the Electoral Commission is unconstitutional because the process was not done properly,” said judge Udomsak Nitimontree, reading out the ruling at the court in Bangkok.
Three of the court’s nine judges did not participate in the decision, after video clips were published on the internet apparently showing Democrat Party officials meeting the trio about the case. (more…)
Thailand buys sugar for the first time in 30 years – Financial Times
July 13th, 2010
By Tim Johnston and Simon Roughneen in Bangkok and Jack Farchy and Jun Merrett in London
http://www.ft.com/cms/s/0/508e30b2-8e60-11df-964e-00144feab49a.html
At Big C in Bang Na, a Bangkok suburb, no sugar has been on the shelves for a week. Montree Thamnuwat, the manager, says the supermarket tried to save its dwindling supplies by restricting customers to one kilo each – to no avail.
Thailand is the second biggest sugar exporter, but for the first time in three decades on Tuesday, amid an acute shortfall in domestic supplies, it went into the market to buy.
The government bought more than 74,000 tonnes of white sugar from international trading houses at up to $720 a tonne for delivery between July and September.
Although the Thai tender was small relative to the size of trade in the commodity, the move has helped underpin a tight market. (more…)
Thai group thinks big in China – Financial Times
July 12th, 2010
http://blogs.ft.com/beyond-brics/2010/07/12/thai-group-thinks-big-in-china/
Just as Jeffrey Immelt, the General Electric chief executive, and other foreign businessmen are complaining about the difficulties of operating in China, along comes a Thai company with plans for a multi-billion dollar investment programme in the Middle Kingdom.
CP group, the Thai company that was the first group to come into China in the post-Mao opening up, is ploughing in $2bn into a new real estate development in Henan, with similar-sized projects lined-up for Shanghai, Shandong and Guangzhou. The company intends to expand a 73-outlet hypermarket chain to 1000 over the coming decade. If that is not a vote confidence – and an alert to the competition, then it is hard to say what is.
With Rmb11bn in sales last year, CP is currently a distant fourth in a sector led by RT-Mart, which has sales of Rmb38.8bn or 10.7 per cent of the market, according to Euromonitor. Carrefour ranked second with Rmb33.5bn (9.2 per cent) with Wal-Mart was third at Rmb31.2bn (8.6 per cent).
The move highlights the long-standing links and growing links between China and its neighbours, especially those like Thailand with significant ethnic Chinese populations. (more…)
Thailand defends continued emergency rule – Financial Times
July 9th, 2010
http://www.ft.com/cms/s/0/90873458-8b26-11df-a4b4-00144feab49a.html
By Simon Roughneen in Bangkok
The Thai government on Friday defended its move to extend a state of emergency covering about a quarter of the country, despite criticism of its restrictions on civil rights and the potential impact on reconciliation efforts.
Bank burns on Rama 4 highway, after clashes at the main rally site back on May 19 (Photo: Simon Roughneen)
Thailand has been peaceful since the army forcibly ended anti-government protests in Bangkok on May 19. By the end, the weeks of street violence had left almost 90 people dead and over 1,000 injured, mostly civilians. (more…)
New BoT head gives himself a headstart – Financial Times
July 7th, 2010
By Simon Roughneen in Bangkok
The Bank of Thailand’s new governor just can’t wait to get started. Long before he officially takes up the post on October 1, Prasarn Trairatvorakul launched into action today, surprising reporters with a statement that Thailand’s interest rate would jump to 2 per cent by the end of 2010.
An interest rate hike had been mooted, with current governor Tarisa Watanagase saying last month that interest rates are too low at the current 1.25 per cent. But she is unlikely to take offence at Prasarn’s dawn salvo. Rather, she will be well pleased by the clear promise of continuity of monetary policy. (more…)
Bank of Thailand gets new boss but state of emergency remains – Financial Times
July 6th, 2010
By Simon Roughneen in Bangkok
Congratulations were the first order of the day after getting through to the Kasikorn Bank HQ this afternoon. President Dr Prasarn Trairatvorakul was earlier named the next governor of the Bank of Thailand during a Thai cabinet meeting, and with a number of key policy decisions looming on interest rates and forex, his thoughts on these matters will be keenly-awaited.
However, for now, he’s likely to keep his views to himself. According to his spokesperson, the new BoT governor cannot discuss his new role with the media until King Bhumibol Adulyadej formally approves the appointment. But some hints may be in the offing when Dr Prasarn speaks at a conference tomorrow morning, at the Queens Park Hotel in downtown Bangkok. (more…)
