News

Thailand’s economy grew at its fastest pace in Q1 this year, making it the fastest growth in the last 5 years with higher domestic consumption and improved exports in its agricultural sector. According to the National Economic and Social Development Board, the government’s economic planning cabinet, Thailand’s GDP in Q1 increased by 4.8% year on year, accelerating from a 4% pace in the previous quarter. Thailand’s GDP growth came in faster than a median of 4% forecast by 10 economists earlier this year. The growth also overshot the government’s prediction from the original forecast of 3.6% – 4.6% to 4.2% – 4.7%.

Domestic demand and spending improved as consumption rate increased by 3.6%, higher than Q4 2017’s 3.4%. Domestic consumption makes up a little less than half of the nation’s economy. The government has increased its spending to 1.9% compared to the previous quarter of 0.2%. Public investments rose by 4.0% after dropping by 6% the quarter before. The agricultural sector has expanded by 6.5% in growth compared to a 1.3% contraction in Q4 last year.

Exports of goods, especially automobiles, electronics and hardware, expanded by 6.0% compared to 7.4% the previous quarter. Private investments have increased by 3.1%, compared to a 2.4% gain in the previous quarter, which provides a potential prospect for companies. On the whole and on a seasonally adjusted quarterly basis, the economy grew by 2% compared with a 0.5% expansion in the previous quarter, which overshot the forecast by 1.2%.

Mr. Somkid Jatusripitak, Deputy Minister of Thailand tells reporters: “We followed through for 5 years to achieve this high performing economic growth. It will be the first step to regain the confidence of the nation.”

Source: CN YES, Money UDN,  Market Watch

Pattaya is not only renowned for its majestic seascape and a vibrant lifestyle, the city will soon be connected to Bangkok by a high-speed rail to increase its livelihood and economic growth. The manufacturing sector and property value of Pattaya are forecasted to boom. Properties developed in prime location, are now a major investment choice for those from Hong Kong and overseas. Golden Emperor hosted an ‘Invest in Central Pattaya’ seminar over the past weekend to launch Thai publicly-listed developer, Sansiri’s latest project, EGDE Central Pattaya. The launch received a generous amount of support with all foreign quota distributed to Hong Kong completely sold out.

Photo Above: Mr. Terence Chan, Managing Director at Golden Emperor Properties, discusses his insights on the property market and Pattaya’s market trend to investors.

Thailand has power its effort in becoming the leading economy in the South Eastern startup sector and Southeast Asia’s ‘Silicon Valley.’ Last year, Thailand hosted its first Startup Thailand Conference, deemed to be the most successful conference of its kind in Asia. This coming week, Thailand will host Startup Thailand 2018 under the theme, ‘Endless Opportunities’ to provide an international and Asia’s pioneering platform for startups worldwide and especially in Asia, in order to propel the sector’s economic growth.

Startup Thailand has established over 25 connections with startup communities worldwide to create an endless imagination of business and investment opportunities.  Startup Thailand 2018, will take place on May 17^th to 20^th at the Bangkok Queen Sirikit National Convention Center. It will be Asia’s largest startup conference with participation from established international startup companies and hottest new startups. The conference will include startups from 9 major technology movements including lifestyle and entertainment, property- tech and urban-tech, fin-tech, travel- tech, health-tech, ed-tech and gov- tech, industry-tech, agriculture- tech and food-tech, and business services. Guest speakers from renowned corporate, startup entrepreneurs and investors will share their past experiences and insights into the startup community. The conference will also host hackathons, pitching stages and venture trails for startups. The innovative conference wish to bring the Southeast Asian startup community closer together in addition to provide a networking experience for participating groups.

The Thai government has induced a strong development in its startup niche and its Thailand Startup conference last year had an estimate of over 50 thousand attendees. Nikkei Asian Review recently reported a number of mega corporations will increase their capital injection into the Eastern Corridor region of Thailand, including Alibaba already with plans to aid Thailand in establishing a Smart City; German car manufacturer BMW to build battery manufacturing units for electric cars and French Airbus to invest into Thailand’s upcoming airport redevelopment.

There are now over 1,500 startups in Thailand resulted from the fast economic growth of the country. Many startup enterprises have ventured into building capital funds to expand businesses, estimated to total over 1 billion USD.

The economic trajectory seems to be altering to a high-tech based strategy. In the past year, Thailand attracted a total of 9 billion USD of foreign direct investment (FDI), a 197% growth from the last year. Exports reached an alarming 23.67 billion USD, a 10.5% growth from the previous year and the highest in history. The GDP, moreover, increased by 3.7% from the previous 5 years. Many countries are forecasting a further growth in Thailand’s economy and expecting to expand their business market on this platform on the Southeast Asian market.

Source: Knowing News, Startup Thailand 2018

Thailand’s economic growth is expected to expand by 4% this year following a continued recovery in consumption and investment, but the country’s competitiveness and adaptation to digital changes remain challenges going forward, says Deputy Prime Minister Somkid Jatusripitak.

“I am confident GDP growth will reach 4% this year, which would be the first time in a decade Thailand’s economic growth reaches this threshold,” Mr Somkid said during his opening remarks at the 18th Money Expo 2018.

“We are in a transitional period [and] the government will do everything for a smooth transition. The economy is gradually picking up though [GDP growth] might not reach its peak because of several limitations, but a 4% growth outlook will help boost morale and drive Thailand forward.”

Recovery has manifested through upticks in several economic indicators such as private consumption and investment, while the Stock Exchange of Thailand (SET) index still has a good growth outlook despite a recent correction, he said.

An easing local currency will be good for exports and farm products, said Mr Somkid, adding that he remains upbeat about 8% export growth this year.

Thailand posted its strongest growth in five years at 3.9% year-on-year in 2017, driven by robust exports and tourism. GDP growth logged in at 3.3% year-on-year in 2016.

The National Economic and Social Development Board is due to release the first quarter’s economic growth results on May 21.

But a combination of weak income growth and low-income households’ increased reliance on debt make household debt deleveraging difficult in the short run, said HSBC economist Jingyan Chen.

Although Thailand’s GDP growth is poised to hit 4% this year, there are several challenges for the country such as international acceptance, competitiveness, and adapting to the digital age in terms of banking, insurance, and the capital market, said Mr Somkid.

Digital transformation will eventually cause a change in consumer behaviour and spending patterns, whereby industrial production has to be adapted on a full-scale basis, he said.

“Technology will determine everything from now on,” said Mr Somkid.

“If there is no change in the business model of industrial production, this will be difficult [for businesses].”

He said a fully cashless society is anticipated in the next 10 years and all relevant sectors have to adapt to this trend, while the government has been propelling the transformation.

Trading on the SET, meanwhile, remains volatile following uncertainty surrounding external factors that are dampening the investment sentiment, said SET president Kesara Manchusree.

The pressure of higher US bond yields, interest rate hikes, and geopolitical friction between the US and Iran are short-term factors affecting market sentiment, she said.

Fund outflows will continue in the short run because of the US economic recovery and the dollar’s appreciation, but foreign holdings in the domestic stock market stand at around 35% and such outflows are not expected to be significant, said Mrs Kesara.

source: Bangkok Post

Golden Emperor actively hosts different events to give back to our dedicated clients, including seminars to share our strategies in investing and recreational events. Last week, we hosted a beginners’ Thai Language Class, which was a full house! Participants had an enjoyable night as well as a time to learn about the Thai culture. We will be hosting a second free admission language class next Thursday, on the 24th, this month. For those who are interested, remember to sign up with us!