Dep Minister of Finance Pradit Phataraprasit to lead an Open Forum on Wed 10th Feb to solicit direct input from private sector on how government can help them operate more competitively in the region
Deputy Minister of Finance Pradit Phataraprasit, today, (Wednesday 3 February) announced that the government is formulating plans to boost tax and non-tax benefits to companies that locate their regional operating headquarters in Thailand.
“We aim to reinforce Thailand’s position in the region as an important manufacturing and services hub,” said Deputy Finance Minister Pradit who chairs a committee charged with developing a set of recommendations that can make Thailand a more attractive location for the regional operating headquarters of companies.
He said, “The establishment of a regional headquarters in Thailand by giant foreign companies can generate enormous benefits for our country and accelerate economic growth. It results in the location in Thailand of many high-salaried expatriate managers; it means more demand for housing, more shopping and other spending, and more business for hotels and restaurants with a greater number of international events being organized in Thailand. It also means that Thai staff have more opportunity to become regional managers with much higher salaries and responsibilities.”
Mr. Pradit said that he is organizing an Open Forum meeting on Wednesday 10th February at the Queen Sirikit National Convention Center for the private sector to give direct input to him on how they believe Thailand could become more attractive as a regional operating headquarters for their companies.
“I want this to be a collaborative effort that gets the best ideas on the table, and to weed out what isn’t important to the private sector,” said Mr. Pradit.
He said that, “multiple government agencies are working together and all key people responsible for developing and submitting these recommendations for Cabinet approval will be present at the session to listen to the views of the private sector, including the Board of Investment, the Bank of Thailand, the Revenue Department, the Fiscal Policy Office, as well as the Federation of Thai Industries, and the Thai Chamber of Commerce, in addition to himself and the Permanent Secretary of the Ministry of Finance.”
HOW TO REGISTER TO ATTEND
Attendance is free. To book a place, please email or fax representatives’ Name, Title, and Company to ROHforum@gmail.com , or fax: 02-664 9515, Attention: Khun Pairoj. Reservations should be made no later than Monday 8th February. Seating is limited and available on a first come, first served basis. Presentations will be in English and Thai.
Sunday, February 7, 2010
“THAI CONSUMER CONFIDENCE IN FOURTH QUARTER OF 2009 REACHED THE HIGHEST LEVEL SINCE 2008” SAYS NIELSEN
THAI Consumer MORE OPTIMISTIC ABOUT PERSONAL FINANCES AND JOB SECURITY IN 2010 But Spending Still Restrained
Consumer confidence in Thailand during the fourth quarter 2009 reached its highest level since mid 2008, driven by improved job prospects and better personal finances, according to the Global Consumer Confidence Survey released today by The Nielsen Company.
An increase in consumer confidence in Asian markets, as well as Brazil, continues to reflect signs that the economy is emerging from a global recession and, in some markets, the recovery is accelerating, according to the latest survey. Results of the Nielsen survey highlighted that consumer confidence gains in markets recovering fastest from recession – including Hong Kong, China, Singapore, India and Brazil – have fueled renewed willingness to spend by many consumers as they head into 2010.
While eight of the top 10 most confident markets in the fourth quarter of 2009 came from Asia Pacific, including emerging markets Indonesia (ranked 1st) and India (ranked 2nd), consumers in two of Asia’s most developed markets, South Korea and Japan, were the least confident. Brazil (ranked 3rd) and Canada (ranked 10th) were the only countries outside of Asia to make the top 10.
In Asia Pacific, Hong Kong recorded the highest consumer confidence increase for the second consecutive quarter in quarter four (Q4) – up seven index points from 93 in Q3 2009 to 100 (on a scale of 0 to 200 Index points) in Q4. Confidence in Hong Kong rose a total of 21 points since June 2009.
Globally, between June and December last year, the Nielsen Global Consumer Confidence Index rose five points from 82 to 87 while consumer confidence in Thailand increased nine points from 86 to 95.
The Nielsen survey shows that consumers in the past six months have become more optimistic about their country emerging from recession with better job prospects and personal finances. This is another sign that global recovery is heading in the right direction.
In Thailand, Nielsen found consumers became more optimistic about the economy in the fourth quarter of 2009. The percentage of Thais who said they believe the country is currently in a recession dropped for the fourth consecutive quarter– down from 91 percent in Q1 to 70 percent in Q4 of 2009.
Aaron Cross, Managing Director of The Nielsen Company, Thailand said “A year ago the world was in free-fall and consumer confidence hit an all time low in Nielsen’s global index. Thai consumer confidence also plummeted to it lowest record in Q1 2009. Since the Thai government reacted quickly to implement a significant stimulus program we have seen the consumer confidence index continue to rise throughout the year of 2009 showing an increase from 81 in Q1 to 86 in Q2 and 94 in Q3”.
Thai Consumers More Optimistic About Personal Finances
More than half (55%) of Thai consumers surveyed said their personal financial outlook for 2010 will be excellent or good compared to 45 percent last June.
Asia is also leading the way in increased discretionary spending. Chinese consumers topped global rankings (in discretionary spending) for investing in stocks and mutual funds and new technology products, and are ranked second globally for spending on new clothes and holidays. Thai consumers, however are not ready to start spending yet with 64 percent saying now is not a good time to spend - up from 60 percent in Q3.
Job Prospects Looking Up
The economy remains the top concern of Thai consumers however the concern for job security continued to decline in Q4 2009. In December 2009, 40 percent of Thai consumers described job prospects for 2010 as excellent or good compared with only 15 percent in Q1 2009, 27 percent in Q2 2009 and 38 percent in Q3 2009.
How do Thais utilize spare cash?
Thai consumers are cautious about discretionary spending. After covering necessary living expenses, Thais continue to put their spare cash into savings (59%). This has been the favorite mode of spare cash utilization for Thais since the year of 2006. After savings, holidays/vacations (47%) investing in retirement funds (30%), and home improvement and decoration (28%) were the three most popular spending options.
Discretionary spending
According to Nielsen’s survey on consumer behavior, Thai consumers will cut back on the following expenses
Spend less on new clothes (64%)Cut down on out of home entertainment (58%)Try to save on gas and electricity (55%)Delay upgrading technology, e.g. PC, mobile phone (44%)Cut down on holidays/ short breaks (42%)
About the Nielsen Global Consumer Confidence Survey
The Nielsen Global Consumer Confidence Survey was conducted between December 4 -18, 2009 and polled over 17,500 consumers in Asia Pacific, Europe, Latin America, the Middle East and North America about their confidence levels and economic outlook. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in more than 100 countries, with headquarters in New York, USA.
Consumer confidence in Thailand during the fourth quarter 2009 reached its highest level since mid 2008, driven by improved job prospects and better personal finances, according to the Global Consumer Confidence Survey released today by The Nielsen Company.
An increase in consumer confidence in Asian markets, as well as Brazil, continues to reflect signs that the economy is emerging from a global recession and, in some markets, the recovery is accelerating, according to the latest survey. Results of the Nielsen survey highlighted that consumer confidence gains in markets recovering fastest from recession – including Hong Kong, China, Singapore, India and Brazil – have fueled renewed willingness to spend by many consumers as they head into 2010.
While eight of the top 10 most confident markets in the fourth quarter of 2009 came from Asia Pacific, including emerging markets Indonesia (ranked 1st) and India (ranked 2nd), consumers in two of Asia’s most developed markets, South Korea and Japan, were the least confident. Brazil (ranked 3rd) and Canada (ranked 10th) were the only countries outside of Asia to make the top 10.
In Asia Pacific, Hong Kong recorded the highest consumer confidence increase for the second consecutive quarter in quarter four (Q4) – up seven index points from 93 in Q3 2009 to 100 (on a scale of 0 to 200 Index points) in Q4. Confidence in Hong Kong rose a total of 21 points since June 2009.
Globally, between June and December last year, the Nielsen Global Consumer Confidence Index rose five points from 82 to 87 while consumer confidence in Thailand increased nine points from 86 to 95.
The Nielsen survey shows that consumers in the past six months have become more optimistic about their country emerging from recession with better job prospects and personal finances. This is another sign that global recovery is heading in the right direction.
In Thailand, Nielsen found consumers became more optimistic about the economy in the fourth quarter of 2009. The percentage of Thais who said they believe the country is currently in a recession dropped for the fourth consecutive quarter– down from 91 percent in Q1 to 70 percent in Q4 of 2009.
Aaron Cross, Managing Director of The Nielsen Company, Thailand said “A year ago the world was in free-fall and consumer confidence hit an all time low in Nielsen’s global index. Thai consumer confidence also plummeted to it lowest record in Q1 2009. Since the Thai government reacted quickly to implement a significant stimulus program we have seen the consumer confidence index continue to rise throughout the year of 2009 showing an increase from 81 in Q1 to 86 in Q2 and 94 in Q3”.
Thai Consumers More Optimistic About Personal Finances
More than half (55%) of Thai consumers surveyed said their personal financial outlook for 2010 will be excellent or good compared to 45 percent last June.
Asia is also leading the way in increased discretionary spending. Chinese consumers topped global rankings (in discretionary spending) for investing in stocks and mutual funds and new technology products, and are ranked second globally for spending on new clothes and holidays. Thai consumers, however are not ready to start spending yet with 64 percent saying now is not a good time to spend - up from 60 percent in Q3.
Job Prospects Looking Up
The economy remains the top concern of Thai consumers however the concern for job security continued to decline in Q4 2009. In December 2009, 40 percent of Thai consumers described job prospects for 2010 as excellent or good compared with only 15 percent in Q1 2009, 27 percent in Q2 2009 and 38 percent in Q3 2009.
How do Thais utilize spare cash?
Thai consumers are cautious about discretionary spending. After covering necessary living expenses, Thais continue to put their spare cash into savings (59%). This has been the favorite mode of spare cash utilization for Thais since the year of 2006. After savings, holidays/vacations (47%) investing in retirement funds (30%), and home improvement and decoration (28%) were the three most popular spending options.
Discretionary spending
According to Nielsen’s survey on consumer behavior, Thai consumers will cut back on the following expenses
Spend less on new clothes (64%)Cut down on out of home entertainment (58%)Try to save on gas and electricity (55%)Delay upgrading technology, e.g. PC, mobile phone (44%)Cut down on holidays/ short breaks (42%)
About the Nielsen Global Consumer Confidence Survey
The Nielsen Global Consumer Confidence Survey was conducted between December 4 -18, 2009 and polled over 17,500 consumers in Asia Pacific, Europe, Latin America, the Middle East and North America about their confidence levels and economic outlook. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in more than 100 countries, with headquarters in New York, USA.
Momentum likely to fade in second half of 2010, making stock picking increasingly important
Asian markets rallied strongly last year, spurred by government stimulus measures and liquidity-driven buying. While this trend is likely to carry through into the first half of 2010, Aberdeen Asset Management believes that the second half of 2010 will be altogether more challenging.
The key risks are in the timing of governments as they exit unorthodox stimulus strategies and what happens as monetary policy tightens across the region in response to rising inflation, according to Adam McCabe, Senior Portfolio Manager on the fixed income.
He believes that the consequences of any mis-step could be huge and predicts policy-makers would rather wait too long than do the opposite and risk a ‘double-dip’ recession. Easy money is leading to the risk of asset bubbles, for example in various property markets across Asia, and elsewhere across emerging markets as policy makers maintain loose monetary policy.
Although rising interest rates are outwardly negative for bonds, Aberdeen sees selective opportunities because not every development appears priced in.
“We are long Asian currencies generally, with any short term periods of USD strength providing an entry point for our preferred trades in the Korean won, Indonesian rupiah and Indian rupee. We also find relative value in Asian investment grade bonds versus US and European investment grade bonds. And Asian banks in particular look cheap versus European and US banks, leading us to take an overweight position on financials,”
Mr Adam summarised.
His theme of greater discrimination was echoed by Kwok Chern-Yeh, Investment Manager on the Asian equity team, who says stock-picking will gain in importance as buying momentum fades.
“We’re seeing investors start to pay more attention to company fundamentals. It’s really not yet clear how the recent pick-up in earnings may have been flattered by the inventory bounce and cost-cutting. Valuations suggest the markets are due for a pull-back. The trouble is the weight of money coming in, or waiting to do so, remains considerable and may lead to new highs in the near term.”
Mr Kwok Chern-Yeh affirmed Aberdeen style was to focus on defensive, cash rich names with strong franchises. BHP Billiton and Hindustan Lever, for example, were new additions to its model regional portfolio in 2009.
Mr.Chaikaseam Vadhanasiripong , Head of Funds Distribution, Aberdeen Asset Management Company Limited said “Overall Aberdeen anticipates more subdued asset market returns in 2010 versus 2009 because global recovery will be constrained by G3 delevering, ensuring that export levels won’t return to pre-crisis levels for a long time. It foresees growth in emerging market economies leading that of developed economies over the next three to five years, and Asia in turn leading emerging markets
The company aims to offer an outstanding pure asset management business that is well-diversified by territory, channel, and product. Our investment expertise is the management of client portfolios in equities and fix income from a fundamental perspective. This forms the basis of our core investment competence. Our business direction is to build long-term relationships with our clients and partners through strong performance and first-class client service”
For Thailand, Aberdeen will continue to reinforce our position as the leader in equity funds, especially FIF funds, by providing superior products, services, and direct accessibility to our fund managers from around the globe. Also, we've launched several services such as Monthly Investment Plan, Multi-redemption accounts, Internet Online Channel redesign to provide more convenient and to enhance clients' experience.
Mr. Chaikaseam added “For new business opportunities, we intent to develop our investment capability and distribution platforms in order to enter new markets and segments where we may have a competitive and sustainable edge. Last but not least, we will continue to educate investors on fundamental-driven long term investment approach via articles, interviews, mass media, and public seminars.”
About Aberdeen Asset Management Group
Aberdeen Asset Management manages over US$232.2 bn* of third party assets from its offices around the world. At Aberdeen, asset management is our sole business. We operate independently and only manage assets for third parties, allowing us to focus only on their needs, without conflicts of interest. Our clients access our investment expertise across the three asset classes: equities, fixed income and property. We package our skills in the form of segregated and pooled products across borders. We invest worldwide and follow a predominantly long-only approach, based on fundamentally sound investments – we do not chase market fads.
The key risks are in the timing of governments as they exit unorthodox stimulus strategies and what happens as monetary policy tightens across the region in response to rising inflation, according to Adam McCabe, Senior Portfolio Manager on the fixed income.
He believes that the consequences of any mis-step could be huge and predicts policy-makers would rather wait too long than do the opposite and risk a ‘double-dip’ recession. Easy money is leading to the risk of asset bubbles, for example in various property markets across Asia, and elsewhere across emerging markets as policy makers maintain loose monetary policy.
Although rising interest rates are outwardly negative for bonds, Aberdeen sees selective opportunities because not every development appears priced in.
“We are long Asian currencies generally, with any short term periods of USD strength providing an entry point for our preferred trades in the Korean won, Indonesian rupiah and Indian rupee. We also find relative value in Asian investment grade bonds versus US and European investment grade bonds. And Asian banks in particular look cheap versus European and US banks, leading us to take an overweight position on financials,”
Mr Adam summarised.
His theme of greater discrimination was echoed by Kwok Chern-Yeh, Investment Manager on the Asian equity team, who says stock-picking will gain in importance as buying momentum fades.
“We’re seeing investors start to pay more attention to company fundamentals. It’s really not yet clear how the recent pick-up in earnings may have been flattered by the inventory bounce and cost-cutting. Valuations suggest the markets are due for a pull-back. The trouble is the weight of money coming in, or waiting to do so, remains considerable and may lead to new highs in the near term.”
Mr Kwok Chern-Yeh affirmed Aberdeen style was to focus on defensive, cash rich names with strong franchises. BHP Billiton and Hindustan Lever, for example, were new additions to its model regional portfolio in 2009.
Mr.Chaikaseam Vadhanasiripong , Head of Funds Distribution, Aberdeen Asset Management Company Limited said “Overall Aberdeen anticipates more subdued asset market returns in 2010 versus 2009 because global recovery will be constrained by G3 delevering, ensuring that export levels won’t return to pre-crisis levels for a long time. It foresees growth in emerging market economies leading that of developed economies over the next three to five years, and Asia in turn leading emerging markets
The company aims to offer an outstanding pure asset management business that is well-diversified by territory, channel, and product. Our investment expertise is the management of client portfolios in equities and fix income from a fundamental perspective. This forms the basis of our core investment competence. Our business direction is to build long-term relationships with our clients and partners through strong performance and first-class client service”
For Thailand, Aberdeen will continue to reinforce our position as the leader in equity funds, especially FIF funds, by providing superior products, services, and direct accessibility to our fund managers from around the globe. Also, we've launched several services such as Monthly Investment Plan, Multi-redemption accounts, Internet Online Channel redesign to provide more convenient and to enhance clients' experience.
Mr. Chaikaseam added “For new business opportunities, we intent to develop our investment capability and distribution platforms in order to enter new markets and segments where we may have a competitive and sustainable edge. Last but not least, we will continue to educate investors on fundamental-driven long term investment approach via articles, interviews, mass media, and public seminars.”
About Aberdeen Asset Management Group
Aberdeen Asset Management manages over US$232.2 bn* of third party assets from its offices around the world. At Aberdeen, asset management is our sole business. We operate independently and only manage assets for third parties, allowing us to focus only on their needs, without conflicts of interest. Our clients access our investment expertise across the three asset classes: equities, fixed income and property. We package our skills in the form of segregated and pooled products across borders. We invest worldwide and follow a predominantly long-only approach, based on fundamentally sound investments – we do not chase market fads.
Friday, February 5, 2010
THAI and Thai Government Hold Thai Rice Donation Ceremony to Haitian People
Thai Government and Thai Airways International Public Company Limited, as well as the government and private sector cooperated together in transporting 100 tons of Thai rice on a THAI freighter aircraft. The humanitarian donation of Thai rice will benefit the people of Haiti who have been affected by severe earthquake. Mr. Abhisit Vejjajiva, Prime Minister of Thailand, presided over the donation ceremony witnessed by representatives from the government and various organization in the Ramp Area of THAI Air Cargo, Suvarnabhumi Airport.
Mr. Piyasvasti Amranand, THAI President, said that transporting 100 tons of Thai jasmine rice from the Government of Thailand to the Republic of Haiti was possible due to cooperation from the government and various organizations, in order to provide assistance as quickly as possible. THAI provided relief aid by conducting a humanitarian freighter flight to transport 100 tons of Thai rice that was donated from the Government of Thailand to the Republic of Haiti, on board THAI freighter flight 9S888 at a flight time of 36 hours on the route Bangkok to the Republic of Haiti. Transport by ship takes approximately 5 to 6 weeks, therefore through cooperation between the Thai Government, THAI, and various organizations, this humanitarian relief effort was possible. In particular, the donation of Thai rice reflects on Thailand’s national identity as a country that is known as a “world kitchen” and one the world’s largest sources of rice production.
The aircraft utilized in transporting 100 tons of Thai rice from the Government of Thailand to the Republic of Haiti is a THAI cargo freighter Boeing 747-300F, which the Company obtained for cargo freight transport. THAI’s cargo freighter flight departed from Bangkok’s Suvarnabhumi Airport on Monday, 1 February 2010 at 14.00 hours, with refueling at Incheon Airport in Korea, Anchorage, Alaska and Miami, Florida in the United States of America, and arrival at Port au Prince Airport in the Republic of Haiti on Tuesday, 2 February 2010 at 08.00 hours (local time), at a total flight time of 36 hours.
Mr. Piyasvasti Amranand, THAI President, said that transporting 100 tons of Thai jasmine rice from the Government of Thailand to the Republic of Haiti was possible due to cooperation from the government and various organizations, in order to provide assistance as quickly as possible. THAI provided relief aid by conducting a humanitarian freighter flight to transport 100 tons of Thai rice that was donated from the Government of Thailand to the Republic of Haiti, on board THAI freighter flight 9S888 at a flight time of 36 hours on the route Bangkok to the Republic of Haiti. Transport by ship takes approximately 5 to 6 weeks, therefore through cooperation between the Thai Government, THAI, and various organizations, this humanitarian relief effort was possible. In particular, the donation of Thai rice reflects on Thailand’s national identity as a country that is known as a “world kitchen” and one the world’s largest sources of rice production.
The aircraft utilized in transporting 100 tons of Thai rice from the Government of Thailand to the Republic of Haiti is a THAI cargo freighter Boeing 747-300F, which the Company obtained for cargo freight transport. THAI’s cargo freighter flight departed from Bangkok’s Suvarnabhumi Airport on Monday, 1 February 2010 at 14.00 hours, with refueling at Incheon Airport in Korea, Anchorage, Alaska and Miami, Florida in the United States of America, and arrival at Port au Prince Airport in the Republic of Haiti on Tuesday, 2 February 2010 at 08.00 hours (local time), at a total flight time of 36 hours.
Saturday, January 30, 2010
DEP eyes BIFF & BIL 2010 as springboard for Thai fashion industry to be more competitive and visible in global marketplace
The effectiveness of the ASEAN Free Trade Agreement (AFTA) is believed to help drive the overall trade volume between the ASEAN countries and their partners.
The Bangkok International Fashion Fair & Bangkok International Leather Fair 2010 (BIFF & BIL 2010) organized by the Department of Export Promotion, Ministry of Commerce of Thailand during 1 - 4 April is expected to encourage the rise of Thai and ASEAN fashion products in the global marketplace, especially in one of the world’s most vibrant fashion markets like Japan.
Riding on the theme, Look East, the BIFF & BIL 2010 will be a vivid showcase of great potential of the ASEAN fashion industry, from upstream to downstream. The mega event will bring together the best fashions and accessories of the ASEAN region, capitalizing on hot new trends, signature styles, textiles and leather products supported by the synergy of local expertise and regional cooperation.
By highlighting the fashions of all 10 ASEAN member countries, BIFF & BIL continues its campaign to bring ASEAN Fashion to, and stay more competitive in the global stage.
“With the ASEAN Free Trade Agreement (AFTA) become effective from January this year, the overall trade volume between the ASEAN countries and their partners is growing at rapid pace,” said Srirat Rastapana, Director General, the Department of Export Promotion (DEP). “The BIFF & BIL 2010 therefore will provide the region’s exhibitors and buyers from Japan, India, China, Korea and Taiwan with a promising platform for trade and cooperation. It is the only fair that offers a complete range of products and services related to the fashion industry supply chain, with greater trade negotiation and sourcing opportunities ever for everyone involved.”
More than 1,000 selected domestic and overseas exhibitors in diverse fields from clothing, textile, leather and fashion accessories to textile equipment & machinery, software & services related to the fashion industry will participate. Potential visitors include importers, manufacturers, traders, distributors, wholesalers, retailers, boutiques, department stores, buying agents, designers, international press and related others.
“The extensive profile of visitors will make the Thai fashion industry more visible, and get broadened access to international fashion markets,” commented Mrs. Srirat.
Speaking at a recent press conference during the BIFF & BIL road show in Tokyo, the DEP Director General also invited manufacturers, buyers and relevant institutes and organizations in the Japanese fashion industry to join BIFF & BIL 2010. The road show was organized in conjunction with JFW International Fashion Fair 2010 (JFW-IFF) in Tokyo, in which 12 Thai textile, apparel and leather products manufacturers, exporters and brand owners participated,
With exports to Japan continuing to increase, Thailand’s textile and apparel industry is expected to see steady growth and development. Relevant organisations led by the Association of Thai Textile Bleaching Dyeing Printing and Finishing Industries (ATDP) has recently cooperated with Japan’s Ministry of Economy, Trade and Industry to develop and manufacture fabrics that meet Japanese standards and market requirements. These textile innovations will be presented to Japanese importers at this year’s BIF & BIL in Thailand.
“The textiles, apparel, and leather exports to Japan are now worth nearly 500 Million US Dollars. Within this, textiles and apparel exports account for more than 420 Million US Dollars and leather goods account for 50 Million US Dollars. Thanks to the Japan-Thailand Economic Partnership Agreement (JTEPA) and the expanding opportunity for Thai exporters in the Japanese medium market as local Japanese manufacturers focus on high-end segment,” said Mrs Srirat.
She added, “Our success at JFW-IFF reflects the high interest of Japanese importers and buyers in Thai fashion products. Japan has expressed its support for Thailand to become ASEAN’s textile and apparel manufacturing base due to its unmatched capacity for integrated production. We are looking forward to see more an increase in number of Japanese visitors to the upcoming event.”
Among highlights at BIFF & BIL 2010 include seminars and conferences, 48 fashion shows, ASEAN Design Congress, Thailand Designer Contest as well as ASEAN Pavilion and Japan Pavilion.
The Bangkok International Fashion Fair & Bangkok International Leather Fair 2010 (BIFF & BIL 2010) organized by the Department of Export Promotion, Ministry of Commerce of Thailand during 1 - 4 April is expected to encourage the rise of Thai and ASEAN fashion products in the global marketplace, especially in one of the world’s most vibrant fashion markets like Japan.
Riding on the theme, Look East, the BIFF & BIL 2010 will be a vivid showcase of great potential of the ASEAN fashion industry, from upstream to downstream. The mega event will bring together the best fashions and accessories of the ASEAN region, capitalizing on hot new trends, signature styles, textiles and leather products supported by the synergy of local expertise and regional cooperation.
By highlighting the fashions of all 10 ASEAN member countries, BIFF & BIL continues its campaign to bring ASEAN Fashion to, and stay more competitive in the global stage.
“With the ASEAN Free Trade Agreement (AFTA) become effective from January this year, the overall trade volume between the ASEAN countries and their partners is growing at rapid pace,” said Srirat Rastapana, Director General, the Department of Export Promotion (DEP). “The BIFF & BIL 2010 therefore will provide the region’s exhibitors and buyers from Japan, India, China, Korea and Taiwan with a promising platform for trade and cooperation. It is the only fair that offers a complete range of products and services related to the fashion industry supply chain, with greater trade negotiation and sourcing opportunities ever for everyone involved.”
More than 1,000 selected domestic and overseas exhibitors in diverse fields from clothing, textile, leather and fashion accessories to textile equipment & machinery, software & services related to the fashion industry will participate. Potential visitors include importers, manufacturers, traders, distributors, wholesalers, retailers, boutiques, department stores, buying agents, designers, international press and related others.
“The extensive profile of visitors will make the Thai fashion industry more visible, and get broadened access to international fashion markets,” commented Mrs. Srirat.
Speaking at a recent press conference during the BIFF & BIL road show in Tokyo, the DEP Director General also invited manufacturers, buyers and relevant institutes and organizations in the Japanese fashion industry to join BIFF & BIL 2010. The road show was organized in conjunction with JFW International Fashion Fair 2010 (JFW-IFF) in Tokyo, in which 12 Thai textile, apparel and leather products manufacturers, exporters and brand owners participated,
With exports to Japan continuing to increase, Thailand’s textile and apparel industry is expected to see steady growth and development. Relevant organisations led by the Association of Thai Textile Bleaching Dyeing Printing and Finishing Industries (ATDP) has recently cooperated with Japan’s Ministry of Economy, Trade and Industry to develop and manufacture fabrics that meet Japanese standards and market requirements. These textile innovations will be presented to Japanese importers at this year’s BIF & BIL in Thailand.
“The textiles, apparel, and leather exports to Japan are now worth nearly 500 Million US Dollars. Within this, textiles and apparel exports account for more than 420 Million US Dollars and leather goods account for 50 Million US Dollars. Thanks to the Japan-Thailand Economic Partnership Agreement (JTEPA) and the expanding opportunity for Thai exporters in the Japanese medium market as local Japanese manufacturers focus on high-end segment,” said Mrs Srirat.
She added, “Our success at JFW-IFF reflects the high interest of Japanese importers and buyers in Thai fashion products. Japan has expressed its support for Thailand to become ASEAN’s textile and apparel manufacturing base due to its unmatched capacity for integrated production. We are looking forward to see more an increase in number of Japanese visitors to the upcoming event.”
Among highlights at BIFF & BIL 2010 include seminars and conferences, 48 fashion shows, ASEAN Design Congress, Thailand Designer Contest as well as ASEAN Pavilion and Japan Pavilion.
Friday, January 29, 2010
THAI Flies Humanitarian Freighter Flight to Haiti
Thai Airways International Public Company Limited announced that it will conduct a humanitarian freighter flight, transporting rice that has been donated from the Government of Thailand to the Republic of Haiti, on 1 February 2010.
Mr. Piyasvasti Amranand, THAI President, said that THAI is supporting the transport of 100 tonnes of rice from the Government of Thailand to the Republic of Haiti. THAI’s humanitarian air shipment will be transported on THAI’s cargo freighter Boeing 747-300F aircraft, which the Company obtained for cargo freight transport, on the route Bangkok-Incheon Airport-Alaska-Miami-Dominican Republic.
THAI’s freighter will depart from Bangkok’s Suvarnabhumi Airport on 1 February 2010, operating at approximately 36 hours flight time.
Once THAI’s humanitarian freighter flight lands at Santo Domingo Airport in the Dominican Republic, UN humanitarian assistance teams will dispatch donated goods to those in need of relief aid in Haiti. Haiti was struck by severe earthquake on 12 January 2010.
THAI’s humanitarian support is valued at the equivalent of USD 632,000 dollars.
Mr. Piyasvasti Amranand, THAI President, said that THAI is supporting the transport of 100 tonnes of rice from the Government of Thailand to the Republic of Haiti. THAI’s humanitarian air shipment will be transported on THAI’s cargo freighter Boeing 747-300F aircraft, which the Company obtained for cargo freight transport, on the route Bangkok-Incheon Airport-Alaska-Miami-Dominican Republic.
THAI’s freighter will depart from Bangkok’s Suvarnabhumi Airport on 1 February 2010, operating at approximately 36 hours flight time.
Once THAI’s humanitarian freighter flight lands at Santo Domingo Airport in the Dominican Republic, UN humanitarian assistance teams will dispatch donated goods to those in need of relief aid in Haiti. Haiti was struck by severe earthquake on 12 January 2010.
THAI’s humanitarian support is valued at the equivalent of USD 632,000 dollars.
Moody's says Asia-Pacific sovereign ratings demonstrating resiliency
Moody's Investors Service says in its just-published "Asia-Pacific Regional Outlook - January 2010" that regional sovereign ratings will likely remain resilient to economic risks coming to the foreground as the global economy recovers from the crisis that emanated from the US and Europe.
Regional rating trends were generally positive in 2009 with no downgrades originating exclusively from the global crisis. Indeed, Indonesia and the Philippines were upgraded to Ba2 and Ba3, respectively, last year, while A1 China, Aa2 Hong Kong, and India (its Ba2 local currency government rating only) have positive outlooks.
The three countries with negative outlooks -- Baa1 Thailand, Ba3 Vietnam and B1 Fiji -- have long-standing underlying imbalances or political tensions which precede the onset of the global crisis.
Growth potential in the Asia-Pacific remains robust, benefiting from fiscal and monetary stimulus programs, liquid banking systems capable of extending credit, intra-regional trade, and foreign exchange reserve defenses built up after the Asian financial crisis of late 1990s.
"Moreover, recovery from the global crisis is appearing similar to previous recovery periods, in contrast to prospects for a sluggish rebound in the US and EU," says Tom Byrne, a Senior Vice President and Regional Credit Officer in Moody's Sovereign Risk Group.
"Despite the crucial role played by fiscal stimulus programs in supporting growth in 2009, most Asia-Pacific countries (ex-Japan) have begun or will likely start to wind down expansionary policies this year," says Byrne.
"Because of relatively less encumbered public finances in the region, with the exception of Japan, the build-up in debt over the past couple of years has been relatively moderate, a key factor in supporting the generally positive trend in ratings in Asia-Pacific," says Byrne. "Also, most countries' fiscal positions can absorb a moderate rise in interest rates in the year ahead," Byrne added.
Moody's notes that China is playing a lead role as a driver of growth in the region, while Japan sits on the sideline as it struggles to overcome stubborn deflation and lackluster domestic demand.
Despite the subdued outlook for Japan, the weakest in the region, Asia-Pacific GDP growth may reach 4.9 percent in 2010, up from 1.2 percent in 2009 and slightly stronger than previous recovery periods in
1999 and 2002.
Accordingly, the growth outlook for Asia-Pacific is more robust than that of Europe or Latin America. Excluding Japan, regional GDP growth is expected to be even stronger at 6.6 percent in 2010. This economic robustness has also underpinned the relatively positive rating trend in the region.
Risks to the economic outlook for the region include a relapse in the recovery in external trade and a rise in inflation. The latter could prove challenging to regional policymakers with the return of risk appetite and strong capital inflows, and could prompt more urgent exit strategies from counter-cyclical policies.
In addition, an endogenous risk to the regional outlook is an asset bubble which careens into a boom-bust cycle in China. Moody's central scenario, however, is that regional governments and monetary authorities will maintain a grip on policy, squeezing as tight as needed to prevent an inflationary destabilization.
The January 2010 edition of the "Asia-Pacific Sovereign Outlook" is the first of a regular publication explaining Moody's views and perspectives on sovereign ratings in the region. It is one of three regional outlooks being published by Moody's Sovereign Risk Group this month, the other two covering Latin America and Europe.
Two other regular reports further detail Moody's perspectives on sovereign ratings, the quarterly "Aaa Sovereign Monitor", which focuses on the highest-rated sovereigns, and the annual "Sovereign Risk Outlook", which provides a year-end review of global sovereign ratings activity and perspectives for the coming year. The latest editions of these reports were published in December 2009.
Regional rating trends were generally positive in 2009 with no downgrades originating exclusively from the global crisis. Indeed, Indonesia and the Philippines were upgraded to Ba2 and Ba3, respectively, last year, while A1 China, Aa2 Hong Kong, and India (its Ba2 local currency government rating only) have positive outlooks.
The three countries with negative outlooks -- Baa1 Thailand, Ba3 Vietnam and B1 Fiji -- have long-standing underlying imbalances or political tensions which precede the onset of the global crisis.
Growth potential in the Asia-Pacific remains robust, benefiting from fiscal and monetary stimulus programs, liquid banking systems capable of extending credit, intra-regional trade, and foreign exchange reserve defenses built up after the Asian financial crisis of late 1990s.
"Moreover, recovery from the global crisis is appearing similar to previous recovery periods, in contrast to prospects for a sluggish rebound in the US and EU," says Tom Byrne, a Senior Vice President and Regional Credit Officer in Moody's Sovereign Risk Group.
"Despite the crucial role played by fiscal stimulus programs in supporting growth in 2009, most Asia-Pacific countries (ex-Japan) have begun or will likely start to wind down expansionary policies this year," says Byrne.
"Because of relatively less encumbered public finances in the region, with the exception of Japan, the build-up in debt over the past couple of years has been relatively moderate, a key factor in supporting the generally positive trend in ratings in Asia-Pacific," says Byrne. "Also, most countries' fiscal positions can absorb a moderate rise in interest rates in the year ahead," Byrne added.
Moody's notes that China is playing a lead role as a driver of growth in the region, while Japan sits on the sideline as it struggles to overcome stubborn deflation and lackluster domestic demand.
Despite the subdued outlook for Japan, the weakest in the region, Asia-Pacific GDP growth may reach 4.9 percent in 2010, up from 1.2 percent in 2009 and slightly stronger than previous recovery periods in
1999 and 2002.
Accordingly, the growth outlook for Asia-Pacific is more robust than that of Europe or Latin America. Excluding Japan, regional GDP growth is expected to be even stronger at 6.6 percent in 2010. This economic robustness has also underpinned the relatively positive rating trend in the region.
Risks to the economic outlook for the region include a relapse in the recovery in external trade and a rise in inflation. The latter could prove challenging to regional policymakers with the return of risk appetite and strong capital inflows, and could prompt more urgent exit strategies from counter-cyclical policies.
In addition, an endogenous risk to the regional outlook is an asset bubble which careens into a boom-bust cycle in China. Moody's central scenario, however, is that regional governments and monetary authorities will maintain a grip on policy, squeezing as tight as needed to prevent an inflationary destabilization.
The January 2010 edition of the "Asia-Pacific Sovereign Outlook" is the first of a regular publication explaining Moody's views and perspectives on sovereign ratings in the region. It is one of three regional outlooks being published by Moody's Sovereign Risk Group this month, the other two covering Latin America and Europe.
Two other regular reports further detail Moody's perspectives on sovereign ratings, the quarterly "Aaa Sovereign Monitor", which focuses on the highest-rated sovereigns, and the annual "Sovereign Risk Outlook", which provides a year-end review of global sovereign ratings activity and perspectives for the coming year. The latest editions of these reports were published in December 2009.
Sunday, January 24, 2010
Stimulus for Thailand’s hospitality industry
The Office of Small and Medium Enterprises Promotion (OSMEP), Impact Exhibition Management and Thailand Restaurant News magazine are inviting local and international players in the hospitality business, and entrepreneurs interested in this sector, to Thailand International Restaurant and Bar 2010 at Impact Muang Thong Thani in June 2010.
This international expo is designed to raise the standard of Thailand’s hospitality industry and giving encouragement and support to new entrepreneurs now that the economy is recovering.
Yuthasak Supasorn, OSMEP’s Director-General pointed out that the restaurant and service industry was one of Thailand’s vital sectors, with a value of two hundred thousand million baht each year, and that new business ventures were continually opening.
“As the economy continues to improve, everyone involved in this sector needs to be ready to take advantage of emerging opportunities,” he said.
“However, sustainable success in this business depends on many factors, such as location, financial support, market insight, product and service quality, customer base and network of business alliances. The Thailand International Restaurant and Bar 2010 has been organised to give players in this sector, whether they’re actual or potential, the support they need to go for that success.”
Pornphan Bulner, Assistant Director Exhibition Project of Impact Exhibition Management, explained that the expo would integrate products, services and technologies relating to restaurants, hotels, bars, coffee shops and catering to meet the needs of entrepreneurs.
“It will showcase raw materials, equipment and machinery, as well as new techniques and skill trainings for all roles in the hospitality industry. At the same time it will provide a platform for negotiation, networking and exchanging information,” she said.
“At least 150 local and international companies will exhibit their products and services on a combined space of 10,000 square meters. We’re expecting to receive more than 10,000 Thai and foreign visitors -- owners, managers, suppliers and business consultants, as well as people who are interested in running their own business.”
Thailand International Restaurant and Bar 2010 will be arranged in three zones: Cuisine for Change, World of Wine & Spirits, and Coffee (Tea & Bakery) Culture. It will also include seminars, demonstrations of recipes and cooking techniques, competitions for chefs, sommeliers and bartenders and an Asian barista championship.
Chatthaporn Yolao, Managing Director of Thailand Restaurant News magazine, said that the event would present new food trends and the latest technologies as business opportunities, and marketing information from experts. Thai SME’s would also benefit from the new relationships they make with other entrepreneurs and service providers.
“We are hoping that Thailand International Restaurant and Bar 2010 will be instrumental in raising the standard of the food and beverage and hospitality industries in Thailand, and in doing so benefit the Thai economy,” she said.
This international expo is designed to raise the standard of Thailand’s hospitality industry and giving encouragement and support to new entrepreneurs now that the economy is recovering.
Yuthasak Supasorn, OSMEP’s Director-General pointed out that the restaurant and service industry was one of Thailand’s vital sectors, with a value of two hundred thousand million baht each year, and that new business ventures were continually opening.
“As the economy continues to improve, everyone involved in this sector needs to be ready to take advantage of emerging opportunities,” he said.
“However, sustainable success in this business depends on many factors, such as location, financial support, market insight, product and service quality, customer base and network of business alliances. The Thailand International Restaurant and Bar 2010 has been organised to give players in this sector, whether they’re actual or potential, the support they need to go for that success.”
Pornphan Bulner, Assistant Director Exhibition Project of Impact Exhibition Management, explained that the expo would integrate products, services and technologies relating to restaurants, hotels, bars, coffee shops and catering to meet the needs of entrepreneurs.
“It will showcase raw materials, equipment and machinery, as well as new techniques and skill trainings for all roles in the hospitality industry. At the same time it will provide a platform for negotiation, networking and exchanging information,” she said.
“At least 150 local and international companies will exhibit their products and services on a combined space of 10,000 square meters. We’re expecting to receive more than 10,000 Thai and foreign visitors -- owners, managers, suppliers and business consultants, as well as people who are interested in running their own business.”
Thailand International Restaurant and Bar 2010 will be arranged in three zones: Cuisine for Change, World of Wine & Spirits, and Coffee (Tea & Bakery) Culture. It will also include seminars, demonstrations of recipes and cooking techniques, competitions for chefs, sommeliers and bartenders and an Asian barista championship.
Chatthaporn Yolao, Managing Director of Thailand Restaurant News magazine, said that the event would present new food trends and the latest technologies as business opportunities, and marketing information from experts. Thai SME’s would also benefit from the new relationships they make with other entrepreneurs and service providers.
“We are hoping that Thailand International Restaurant and Bar 2010 will be instrumental in raising the standard of the food and beverage and hospitality industries in Thailand, and in doing so benefit the Thai economy,” she said.
THE THAI PROPERTY MARKET TRENDS IN 2010
2009 was a challenging year for the Thai property market, but CB Richard Ellis (CBRE) sees positive signs for 2010. Whilst 2009 has been a tough year, it was not as bad as many expected.
2010 has begun with a more positive market sentiment. The improving economic outlook globally and perception of Thailand’s political situation, together with low market prices compared to other mature property markets, have had a positive impact on consumer confidence in property investment in Thailand.
Following the economic crisis, the supply of new office, retail and industrial space is at an all-time low. These sectors are expected to improve this year, in line with the global and local economic recovery.
Thailand’s residential market in 2009 was primarily driven by local demand. This year, CBRE believes that local demand will continue to be strong and that individual foreign property investors will start to return to the market. Thai condominium prices remain attractive compared to other cities in the region, such as Shanghai, Hong Kong and Singapore where prices have risen sharply in the last six months.
Average Price of Luxury Residential Units in the Region (THB per sq.m.)
City 2008 2009 %Change
y-o-y
Shanghai THB 176,032 THB 189,659 7.7
Hong Kong THB 622,549 THB 722,376 16.3
Singapore THB 479,327 THB 555,481 12.8
Bangkok THB 117,875 THB 124,539 5.6
Source: CBRE Research
However, there are continuing concerns about Thailand’s political stability and the strength of the global economy. If Thailand’s economy and politics are stable in 2010, the residential sector will see consistent positive growth.
Government Policy
The Government stimulus package will expire in March 2010 and it remains uncertain whether it will be extended. CBRE believes the extension of this package will benefit buyers and developers of large condominium projects launched during the crisis which are due for completion and transfer within this year.
The initiative of this government to reform property and land taxation with a view to creating fairness sounds positive, but it will only be possible to determine the effect on the property market once the details of the proposed legislation have been finalised. “So long as the new tax legislation is on a fair basis and the tax rate not so excessively high as to discourage investment, CBRE sees this reform as beneficial for the market,“ Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand said. An additional measure that CBRE urges the government to consider is the extension of the long lease term from the current 30 years up to a maximum of 90 years. This will help improve the market mechanism and make large-scale commercial projects viable which would not be feasible if such developments were freehold due to the high land cost or if they were on a 30-year lease due to the limits on lease terms. The extension of the lease term will also have a direct benefit for resort destinations such as Phuket and Samui where the property markets are primarily driven by foreign demand.
Looking at 2010 and beyond, environmental issues are a key consideration for all industries including the property market. There will be more restrictions which may increase the cost for developers. The Environmental Impact Assessment (EIA) process is one of the key concerns and risks for developers as there are uncertainties in the details and timing required to obtain such a permit. This is one of the factors which are likely to delay the emergence of new supply.
Any additional incentives that would attract foreign direct investment in both manufacturing and the service industries would be welcomed, in order to enable Thailand to compete with rival destinations.
Office : The Market Should Improve in 2010
Bright future due to limited new supply
In 2010, there will be very limited new supply in the office sector. Only 78,380 sq.m. are due to be completed, including Sathorn Square (72,500 sq.m.) and Sivatel Wireless Road (5,880 sq.m.). CBRE sees the limited increase in new supply as a positive indicator for the office market because any increase in take-up will reduce vacancy rates and lead to rental increases. At the end of 2009 the vacancy rate stood at 12%.
Even though net demand in 2009 dropped by more than 50 % to only 52,000 sq.m., average grade A CBD office rents fell by 7.26% to THB 690 per sq.m while grade B CBD office rents fell by 12% to THB 509 per sq.m. This is considerably better than in other markets. Rents fell by 52.6% in Singapore and 49.9% in Hong Kong in 2009.
Average Grade A CBD Office Rents in the Region (THB per sq.m.)
City 2008 2009 % Change
Y-o-Y
Hong Kong THB 4,107 THB 2,255 -49.09%
Singapore THB 4,041 THB 1,913 -52.66%
Bangkok THB 744 THB 690 -7.26%
Source: CBRE Research
Following the recovery of the global economic, CBRE believes that companies will be less cost conscious and that 2010 will be a good time to take advantage of the low rents to relocate to newer buildings.
Sathorn Square – the only new grade A office building to be completed in 2010.
Condominium : The Most Exciting and the Most Competitive
Supply Outlook : More competitive market in 2010
The total supply of downtown condominiums increased to 61,522 units by the end of Q3 2009, up 14% year-on-year. In total, there are 17,664 units under construction in downtown Bangkok, of which 78% of which have been reportedly sold, leaving 3,879 units being marketed (completed and under construction).
In 2009, there were 3,912 units in 15 projects launched in the downtown area, with the majority being one-bedroom unit types. In 2010 CBRE expects a much more competitive market, with an increasing number of project launches as there is pent-up supply from developers who have delayed their projects since the onset of the economic crisis in late 2008 and also new supply from large developers who acquire plots of land for new developments.
Newly Launched Condominium Projects* Broken Down by Unit Type
Year Studio 1 B/R 2 B/R 3 B/R 4 B/R PH Total
2008 243 2,270 1,090 194 19 10 3,826
2009 54 1,284 694 10 0 0 2,042
Total 297 3,554 1,784 204 19 10 5,868
Source: CBRE Research
* Include 18 selected projects in 2008 and 11 selected projects in 2009 as of Q3 2009.
Demand Outlook : Demand continues to be strong
CBRE sees a growing demand for condominiums driven primarily by a change in lifestyle which has led to the need to own a first or second home in the CBD or near mass transit routes to reduce the need to commute. From an investment perspective, investors also increasingly recognise condominium purchases as an appreciating long-term investment asset. In the past, there were few Thai investors in the market. However, with lower interest rates and proven returns, investing in condominiums has become a popular investment choice for many Thais. It is also considered a safe and secure investment compared to the equities market which is much more volatile.
New Trends : Good locations, small furnished units with affordable prices
From the development side, developers need to ensure they are ahead of the game in trying to predict future location trends. The danger is that a popular location can quickly become saturated with new supply. The key to success is either to be the first to launch in an upcoming location, or to find a location with high barriers to entry.
New supply especially for the middle income market will focus on smaller units at affordable prices. In a competitive market with experienced buyers, products must offer quality as well as innovative and functional design in order to be successful. The reliability and reputation of the developer is another key consideration for buyers.
Luxury and Super Luxury Segments : Limited future supply
The luxury and super luxury condominium segment is expected to slowly recover and develop into a niche market. Prime downtown land is rarely available for sale and prices will remain high, CBRE, therefore, does not expect many new launches for luxury condominiums in prime downtown locations.
With a wave of new launches focusing on smaller one-bedroom units along mass transit routes with prices ranging from THB 3 to 8 million, the majority of unsold two to three-bedroom units priced at over THB 15 million and developed before the crisis should soon be absorbed. There will then be a shortage of two-bedroom units in the luxury market especially in prime locations. Short-term investors will speculate on one-bedroom units whereas long-term investors will focus on two and three bedroom units which are in demand among expatriates in the rental market, while smaller units are driven by local demand. With a limited supply of newly launched larger units CBRE believes the existing supply of such grade-A units in prime locations will continue to appreciate in value.
2010 Pricing Trends : Completed prime condo prices on the rise
In terms of price movement, CBRE sees no significant increase in prices per sq.m for mid-market condominiums as the economic recovery is still underway with the prevailing political problems which continue to concern buyers. The best selling segment is priced at THB 50,000 – 80,000 per sq.m in mid-town locations or within 15 kilometres of the CBD. Prices in this segment are unlikely to increase as the purchasing power of the target market is limited. The developers have to compete on cost control and pricing.
Prices for completed high-end and luxury downtown condominium have increased slightly by 5.6% from THB 117,875 per sq.m from Q4 2008 to THB 124,539 per sq.m in Q3 2009 and CBRE believes that the prices of completed buildings in prime locations will continue to rise in 2010.
Prices of the future supply of high-end and luxury downtown condominium in 2009 fell slightly by 6.3% from THB 142,133 per sq.m in Q4 2008 to THB 133,134 per sq.m in Q3, 2009 due to the slow market conditions. New launches in 2010 are likely to see an increase in price per sq.m due to the higher construction costs but, as unit sizes are smaller, total unit prices will be on par with current levels.
Retail : More Focus
Improvement expected following return of consumer confidence
In the first three quarters of 2009, the supply of retail space grew by 6.6% or 327,125 sq.m. Whilst occupancy was stable throughout the year, rents were flat and even fell in some cases during the earlier part of 2009. The fourth quarter showed signs of consumer confidence and spending returning.
The trend for new retail centres in Bangkok is evolving from one-stop mega shopping complexes to more focused community malls and medium-sized lifestyle and entertainment complexes such as Esplanade Rattanathibet.
The major players in the retail market are Central, The Mall, Siam Future and Major Cineplex. Retail developments to note this year are Terminal 21 which is currently under construction and located in Sukhumvit at the Asoke junction, Central Rama 9 and Mega Bangna which will house Thailand’s first IKEA store.
Serviced Apartments : Highly Competitive
Occupancy rates are likely to be flat and downward pressure on rents
The serviced apartment sector, which partially depends on tourists and business travellers as well as expatriates working in Bangkok, has suffered from growing supply which led to an overall drop in occupancy and rates in 2009.
Total supply increased to 12,392 units, up by 6.84% year-on-year, with a further 610 units expected to be completed by 2010 and approximately 2,000 units by 2013. Occupancy rates remained at 75% in Q3 2009. Occupancy was partly protected by a number of long-term contracts which are less volatile than the daily rate market. Average rates, however, fell by about 20% year-on-year.
The biggest challenge faced by this sector is the volume of new supply targeting both long-stay expatriates and short-stay businessmen and tourists.
Serviced apartments compete against apartments and particularly small condominium units for rent in the long-stay market and the rapidly growing supply of hotels in the short-stay market. The influx of new supply of both serviced apartments and hotels will continue to exert a downward pressure on both rates and occupancy.
Expatriate Rental Apartments
The total supply of expatriate-standard rental apartments in Bangkok increased to around 11,151 units, up by 4.5% year-on-year
Occupancy remained high at 91%. CBRE has not seen a dramatic drop in the number of expatriates in 2009 but, since companies are trying to maintain or reduce costs, so CBRE does not expect any increase in housing allowances.
Multinational companies continue to be cautious on their expansion plans given that the global economy is yet to fully recover. Thailand’s political problems are also an added factor which has restrained business expansion plans in Thailand.
CBRE does not expect that there will be a significant increase in the number of expatriates in 2010. There will be increased competition from individual “buy-to-rent” condominium owners seeking to lease out units in recently completed developments. There are about 620 apartment units under construction but there are also 17,664 condominium units under construction and CBRE expects that up to 50% of the new condominiums have been bought by purchasers who want to lease out their units on completion. This increase in supply combined with little or no growth in demand will dampen any potential for overall rental growth.
New well-designed condominium and apartment buildings will continue to perform better than older buildings that have not been refurbished or redecorated.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row.
CB Richard Ellis established an office in Bangkok in 1988, followed by Phuket office in 2004, and Samui office in 2007. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering strategic advice and execution for sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting.
2010 has begun with a more positive market sentiment. The improving economic outlook globally and perception of Thailand’s political situation, together with low market prices compared to other mature property markets, have had a positive impact on consumer confidence in property investment in Thailand.
Following the economic crisis, the supply of new office, retail and industrial space is at an all-time low. These sectors are expected to improve this year, in line with the global and local economic recovery.
Thailand’s residential market in 2009 was primarily driven by local demand. This year, CBRE believes that local demand will continue to be strong and that individual foreign property investors will start to return to the market. Thai condominium prices remain attractive compared to other cities in the region, such as Shanghai, Hong Kong and Singapore where prices have risen sharply in the last six months.
Average Price of Luxury Residential Units in the Region (THB per sq.m.)
City 2008 2009 %Change
y-o-y
Shanghai THB 176,032 THB 189,659 7.7
Hong Kong THB 622,549 THB 722,376 16.3
Singapore THB 479,327 THB 555,481 12.8
Bangkok THB 117,875 THB 124,539 5.6
Source: CBRE Research
However, there are continuing concerns about Thailand’s political stability and the strength of the global economy. If Thailand’s economy and politics are stable in 2010, the residential sector will see consistent positive growth.
Government Policy
The Government stimulus package will expire in March 2010 and it remains uncertain whether it will be extended. CBRE believes the extension of this package will benefit buyers and developers of large condominium projects launched during the crisis which are due for completion and transfer within this year.
The initiative of this government to reform property and land taxation with a view to creating fairness sounds positive, but it will only be possible to determine the effect on the property market once the details of the proposed legislation have been finalised. “So long as the new tax legislation is on a fair basis and the tax rate not so excessively high as to discourage investment, CBRE sees this reform as beneficial for the market,“ Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand said. An additional measure that CBRE urges the government to consider is the extension of the long lease term from the current 30 years up to a maximum of 90 years. This will help improve the market mechanism and make large-scale commercial projects viable which would not be feasible if such developments were freehold due to the high land cost or if they were on a 30-year lease due to the limits on lease terms. The extension of the lease term will also have a direct benefit for resort destinations such as Phuket and Samui where the property markets are primarily driven by foreign demand.
Looking at 2010 and beyond, environmental issues are a key consideration for all industries including the property market. There will be more restrictions which may increase the cost for developers. The Environmental Impact Assessment (EIA) process is one of the key concerns and risks for developers as there are uncertainties in the details and timing required to obtain such a permit. This is one of the factors which are likely to delay the emergence of new supply.
Any additional incentives that would attract foreign direct investment in both manufacturing and the service industries would be welcomed, in order to enable Thailand to compete with rival destinations.
Office : The Market Should Improve in 2010
Bright future due to limited new supply
In 2010, there will be very limited new supply in the office sector. Only 78,380 sq.m. are due to be completed, including Sathorn Square (72,500 sq.m.) and Sivatel Wireless Road (5,880 sq.m.). CBRE sees the limited increase in new supply as a positive indicator for the office market because any increase in take-up will reduce vacancy rates and lead to rental increases. At the end of 2009 the vacancy rate stood at 12%.
Even though net demand in 2009 dropped by more than 50 % to only 52,000 sq.m., average grade A CBD office rents fell by 7.26% to THB 690 per sq.m while grade B CBD office rents fell by 12% to THB 509 per sq.m. This is considerably better than in other markets. Rents fell by 52.6% in Singapore and 49.9% in Hong Kong in 2009.
Average Grade A CBD Office Rents in the Region (THB per sq.m.)
City 2008 2009 % Change
Y-o-Y
Hong Kong THB 4,107 THB 2,255 -49.09%
Singapore THB 4,041 THB 1,913 -52.66%
Bangkok THB 744 THB 690 -7.26%
Source: CBRE Research
Following the recovery of the global economic, CBRE believes that companies will be less cost conscious and that 2010 will be a good time to take advantage of the low rents to relocate to newer buildings.
Sathorn Square – the only new grade A office building to be completed in 2010.
Condominium : The Most Exciting and the Most Competitive
Supply Outlook : More competitive market in 2010
The total supply of downtown condominiums increased to 61,522 units by the end of Q3 2009, up 14% year-on-year. In total, there are 17,664 units under construction in downtown Bangkok, of which 78% of which have been reportedly sold, leaving 3,879 units being marketed (completed and under construction).
In 2009, there were 3,912 units in 15 projects launched in the downtown area, with the majority being one-bedroom unit types. In 2010 CBRE expects a much more competitive market, with an increasing number of project launches as there is pent-up supply from developers who have delayed their projects since the onset of the economic crisis in late 2008 and also new supply from large developers who acquire plots of land for new developments.
Newly Launched Condominium Projects* Broken Down by Unit Type
Year Studio 1 B/R 2 B/R 3 B/R 4 B/R PH Total
2008 243 2,270 1,090 194 19 10 3,826
2009 54 1,284 694 10 0 0 2,042
Total 297 3,554 1,784 204 19 10 5,868
Source: CBRE Research
* Include 18 selected projects in 2008 and 11 selected projects in 2009 as of Q3 2009.
Demand Outlook : Demand continues to be strong
CBRE sees a growing demand for condominiums driven primarily by a change in lifestyle which has led to the need to own a first or second home in the CBD or near mass transit routes to reduce the need to commute. From an investment perspective, investors also increasingly recognise condominium purchases as an appreciating long-term investment asset. In the past, there were few Thai investors in the market. However, with lower interest rates and proven returns, investing in condominiums has become a popular investment choice for many Thais. It is also considered a safe and secure investment compared to the equities market which is much more volatile.
New Trends : Good locations, small furnished units with affordable prices
From the development side, developers need to ensure they are ahead of the game in trying to predict future location trends. The danger is that a popular location can quickly become saturated with new supply. The key to success is either to be the first to launch in an upcoming location, or to find a location with high barriers to entry.
New supply especially for the middle income market will focus on smaller units at affordable prices. In a competitive market with experienced buyers, products must offer quality as well as innovative and functional design in order to be successful. The reliability and reputation of the developer is another key consideration for buyers.
Luxury and Super Luxury Segments : Limited future supply
The luxury and super luxury condominium segment is expected to slowly recover and develop into a niche market. Prime downtown land is rarely available for sale and prices will remain high, CBRE, therefore, does not expect many new launches for luxury condominiums in prime downtown locations.
With a wave of new launches focusing on smaller one-bedroom units along mass transit routes with prices ranging from THB 3 to 8 million, the majority of unsold two to three-bedroom units priced at over THB 15 million and developed before the crisis should soon be absorbed. There will then be a shortage of two-bedroom units in the luxury market especially in prime locations. Short-term investors will speculate on one-bedroom units whereas long-term investors will focus on two and three bedroom units which are in demand among expatriates in the rental market, while smaller units are driven by local demand. With a limited supply of newly launched larger units CBRE believes the existing supply of such grade-A units in prime locations will continue to appreciate in value.
2010 Pricing Trends : Completed prime condo prices on the rise
In terms of price movement, CBRE sees no significant increase in prices per sq.m for mid-market condominiums as the economic recovery is still underway with the prevailing political problems which continue to concern buyers. The best selling segment is priced at THB 50,000 – 80,000 per sq.m in mid-town locations or within 15 kilometres of the CBD. Prices in this segment are unlikely to increase as the purchasing power of the target market is limited. The developers have to compete on cost control and pricing.
Prices for completed high-end and luxury downtown condominium have increased slightly by 5.6% from THB 117,875 per sq.m from Q4 2008 to THB 124,539 per sq.m in Q3 2009 and CBRE believes that the prices of completed buildings in prime locations will continue to rise in 2010.
Prices of the future supply of high-end and luxury downtown condominium in 2009 fell slightly by 6.3% from THB 142,133 per sq.m in Q4 2008 to THB 133,134 per sq.m in Q3, 2009 due to the slow market conditions. New launches in 2010 are likely to see an increase in price per sq.m due to the higher construction costs but, as unit sizes are smaller, total unit prices will be on par with current levels.
Retail : More Focus
Improvement expected following return of consumer confidence
In the first three quarters of 2009, the supply of retail space grew by 6.6% or 327,125 sq.m. Whilst occupancy was stable throughout the year, rents were flat and even fell in some cases during the earlier part of 2009. The fourth quarter showed signs of consumer confidence and spending returning.
The trend for new retail centres in Bangkok is evolving from one-stop mega shopping complexes to more focused community malls and medium-sized lifestyle and entertainment complexes such as Esplanade Rattanathibet.
The major players in the retail market are Central, The Mall, Siam Future and Major Cineplex. Retail developments to note this year are Terminal 21 which is currently under construction and located in Sukhumvit at the Asoke junction, Central Rama 9 and Mega Bangna which will house Thailand’s first IKEA store.
Serviced Apartments : Highly Competitive
Occupancy rates are likely to be flat and downward pressure on rents
The serviced apartment sector, which partially depends on tourists and business travellers as well as expatriates working in Bangkok, has suffered from growing supply which led to an overall drop in occupancy and rates in 2009.
Total supply increased to 12,392 units, up by 6.84% year-on-year, with a further 610 units expected to be completed by 2010 and approximately 2,000 units by 2013. Occupancy rates remained at 75% in Q3 2009. Occupancy was partly protected by a number of long-term contracts which are less volatile than the daily rate market. Average rates, however, fell by about 20% year-on-year.
The biggest challenge faced by this sector is the volume of new supply targeting both long-stay expatriates and short-stay businessmen and tourists.
Serviced apartments compete against apartments and particularly small condominium units for rent in the long-stay market and the rapidly growing supply of hotels in the short-stay market. The influx of new supply of both serviced apartments and hotels will continue to exert a downward pressure on both rates and occupancy.
Expatriate Rental Apartments
The total supply of expatriate-standard rental apartments in Bangkok increased to around 11,151 units, up by 4.5% year-on-year
Occupancy remained high at 91%. CBRE has not seen a dramatic drop in the number of expatriates in 2009 but, since companies are trying to maintain or reduce costs, so CBRE does not expect any increase in housing allowances.
Multinational companies continue to be cautious on their expansion plans given that the global economy is yet to fully recover. Thailand’s political problems are also an added factor which has restrained business expansion plans in Thailand.
CBRE does not expect that there will be a significant increase in the number of expatriates in 2010. There will be increased competition from individual “buy-to-rent” condominium owners seeking to lease out units in recently completed developments. There are about 620 apartment units under construction but there are also 17,664 condominium units under construction and CBRE expects that up to 50% of the new condominiums have been bought by purchasers who want to lease out their units on completion. This increase in supply combined with little or no growth in demand will dampen any potential for overall rental growth.
New well-designed condominium and apartment buildings will continue to perform better than older buildings that have not been refurbished or redecorated.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row.
CB Richard Ellis established an office in Bangkok in 1988, followed by Phuket office in 2004, and Samui office in 2007. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering strategic advice and execution for sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting.
THAILAND CONTINUES TO EARN KUDOS FOR ITS TOURISM PRODUCTS AND SERVICES
In spite of the global tourism slump in 2009, Thailand and the Thai travel and tourism industry continued to win numerous awards and be rated highly in survey rankings, a clear indicator of the high level of confidence in the quality of the kingdom’s travel products and services. Mr. Suraphon Svetasreni, TAT Governor said, “The Thai travel and tourism industry is very proud to be recognised thus. Thailand is known the world over for its hospitality, friendly people and excellent service standards, all factors which contribute towards making it one of the most popular global destinations.”
A listing of the awards and rankings:
1. Thailand was ranked Number One on the list of the most friendly places for expats to live by the HSBC Bank International’s survey in 2009. It was also rated among the top countries in terms of quality accommodation.
Launched in 2008, the Expat Explorer survey positions itself as “the largest independent global survey of expats.” Commissioned by the HSBC Bank International and conducted by a third-party research company, the survey covered more than 3,100 expats living in 50 countries about the opportunities and challenges they experience living away from home.
Conducted between February and April 2009, the survey revealed that expats enjoy a better life in their new country, with the majority claiming an increase in the quality of living compared with life back home.
Thailand was one of the best performing locations for expats, ranking third overall. Expats residing in Thailand reported being “more satisfied with their quality of life than the majority of their counterparts elsewhere.”
More than half (53%) reported that the quality of their social life has increased since they moved to Thailand and almost one third (29%) said that the quality of their working hours had improved. Entertainment, food quality, accommodation, social life, and health and well-being all rated significantly higher than the worldwide averages.
Thailand also rated very favourably in terms of luxury products, when compared with other parts of the world.
2. Tourism-Review.com, a travel news gateway for the industry professionals, conducted a survey of the Top 10 Country Brands for Friendly Locals. In the survey, Thailand ranked number 4.
Recognising Thailand by its long-held epithet, “The Land of Smiles”, the Tourism-Review.com survey said the kingdom was hailed by respondents for the “warm hospitality and generally happy dispositions of the Thai people.”
It said, “As well as being friendly and welcoming, Thais are known for their incredible sense of humour and lighthearted spirit—qualities that make it easy to make new friends.”
3. Thailand was voted the Most Popular Destination in Asia 2009 by users of www.hotelclub.com, an accommodation reservation service provider which claims to have more than 6 million viewers. The website claimed votes were cast by more than 52,000 people.
4. Readers of the New York-based Travel + Leisure Magazine, a leading magazine in North America, voted for the World’s Top 50 Hotels and 500 World’s Best Hotels 2010. 19 hotels in Thailand were on the list, as follows:
World’s Top 50 Hotels:
- Four Seasons Tents and Camp in Golden Triangle, ranked no. 7
- Mandarin Oriental, Bangkok, ranked no.20
- Four Seasons Chiang Mai, ranked no. 21
500 World’s Best Hotels: Mandarin Oriental, Bangkok
- The Peninsula Bangkok
- Le Meridien, Bangkok
- Shangri-La Hotel, Bangkok
- Four Seasons Hotel, Bangkok
- Dusit Thani Bangkok
- Conrad Bangkok
- Banyan Tree Bangkok
- JW Marriott, Bangkok
- Four Seasons Resort, Chiang Mai
- Mandarin Oriental Dhara Dhevi Chiang Mai
- dusitD2, Chiang Mai
- Four Seasons Tented Camp Golden Triangle
- Anantara Golden Triangle
- Anantara Hua Hin
- Anantara Koh Samui Resort and Spa
- Le Meridien, Phuket
- Amanpuri, Phuket
- JW Marriott Phuket Resort and Spa, Phuket
Travel + Leisure claims to be the world's leading travel magazine with a circulation of almost one million readers.
The TAT Governor said that this year promises to be a better year for the Thai travel and tourism industry, which is quickly recovering from the downturn of last year. “There is no doubt that the continuing improvement of our tourism products and services will see Thailand garnering more honours and awards in 2010.”
A listing of the awards and rankings:
1. Thailand was ranked Number One on the list of the most friendly places for expats to live by the HSBC Bank International’s survey in 2009. It was also rated among the top countries in terms of quality accommodation.
Launched in 2008, the Expat Explorer survey positions itself as “the largest independent global survey of expats.” Commissioned by the HSBC Bank International and conducted by a third-party research company, the survey covered more than 3,100 expats living in 50 countries about the opportunities and challenges they experience living away from home.
Conducted between February and April 2009, the survey revealed that expats enjoy a better life in their new country, with the majority claiming an increase in the quality of living compared with life back home.
Thailand was one of the best performing locations for expats, ranking third overall. Expats residing in Thailand reported being “more satisfied with their quality of life than the majority of their counterparts elsewhere.”
More than half (53%) reported that the quality of their social life has increased since they moved to Thailand and almost one third (29%) said that the quality of their working hours had improved. Entertainment, food quality, accommodation, social life, and health and well-being all rated significantly higher than the worldwide averages.
Thailand also rated very favourably in terms of luxury products, when compared with other parts of the world.
2. Tourism-Review.com, a travel news gateway for the industry professionals, conducted a survey of the Top 10 Country Brands for Friendly Locals. In the survey, Thailand ranked number 4.
Recognising Thailand by its long-held epithet, “The Land of Smiles”, the Tourism-Review.com survey said the kingdom was hailed by respondents for the “warm hospitality and generally happy dispositions of the Thai people.”
It said, “As well as being friendly and welcoming, Thais are known for their incredible sense of humour and lighthearted spirit—qualities that make it easy to make new friends.”
3. Thailand was voted the Most Popular Destination in Asia 2009 by users of www.hotelclub.com, an accommodation reservation service provider which claims to have more than 6 million viewers. The website claimed votes were cast by more than 52,000 people.
4. Readers of the New York-based Travel + Leisure Magazine, a leading magazine in North America, voted for the World’s Top 50 Hotels and 500 World’s Best Hotels 2010. 19 hotels in Thailand were on the list, as follows:
World’s Top 50 Hotels:
- Four Seasons Tents and Camp in Golden Triangle, ranked no. 7
- Mandarin Oriental, Bangkok, ranked no.20
- Four Seasons Chiang Mai, ranked no. 21
500 World’s Best Hotels: Mandarin Oriental, Bangkok
- The Peninsula Bangkok
- Le Meridien, Bangkok
- Shangri-La Hotel, Bangkok
- Four Seasons Hotel, Bangkok
- Dusit Thani Bangkok
- Conrad Bangkok
- Banyan Tree Bangkok
- JW Marriott, Bangkok
- Four Seasons Resort, Chiang Mai
- Mandarin Oriental Dhara Dhevi Chiang Mai
- dusitD2, Chiang Mai
- Four Seasons Tented Camp Golden Triangle
- Anantara Golden Triangle
- Anantara Hua Hin
- Anantara Koh Samui Resort and Spa
- Le Meridien, Phuket
- Amanpuri, Phuket
- JW Marriott Phuket Resort and Spa, Phuket
Travel + Leisure claims to be the world's leading travel magazine with a circulation of almost one million readers.
The TAT Governor said that this year promises to be a better year for the Thai travel and tourism industry, which is quickly recovering from the downturn of last year. “There is no doubt that the continuing improvement of our tourism products and services will see Thailand garnering more honours and awards in 2010.”
Least developed countries conclude high-level UN meeting with call for greater say in global financial structures
Climate change also significant issue for Asia-Pacific nations
Fifteen least developed countries (LDCs) meeting at a high-level United Nations forum today concluded their review of a decade’s worth of international assistance efforts with suggestions that such countries be given a greater voice in the international financial structures and extra consideration on climate change concerns.
The proposal came at the High-level Asia-Pacific Policy Dialogue on the Brussels Programme of Action (BPoA) for the Least Developed Countries held in Dhaka , Bangladesh. The meeting was held to assess and develop a unified position for Asia and the Pacific ahead of a global review next year in Turkey on progress made in implementing the BPoA, which seeks “to make substantial progress toward halving the proportion of people living in extreme poverty and suffering from hunger by 2015 and promote the sustainable development of the LDCs.”
In the Dhaka Outcome Document, ministers and senior officials agreed that the food-fuel and financial crises, along with climate change, exposed the acute vulnerabilities of the Asia-Pacific LDCs to external shocks which could derail their development gains.
They said LDCs need to be assisted with enabling them to benefit from the opportunities arising from trade, investment and financial flows. LDCs also must be represented on the Financial Stability Board established by the G20 and that the reform of the international financial architecture must ensure greater representation of LDCs in the international financial institutions.
Among other provisions in their statement, the officials noted that LDCs are at the frontline of the effects of climate change and should be given due priority in the provision of resources promised in the Copenhagen climate talks last December.
Noeleen Heyzer, UN Under-Secretary-General and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP), said the Dhaka meeting represented a turning point in addressing the development issues and challenges facing the Asia-Pacific region.
“It constitutes a regional position in support of the interests and aspirations of the Asia-Pacific LDCs to build an inclusive and sustainable development part in partnership with their development partners from the region and beyond,” she said.
The three-day meeting discussed issues and concerns related to reducing poverty and hunger by promoting sustainable and inclusive development in the LDCs; promoting food security through sustainable agriculture; and enhancing the share of LDCs in global trade, aid and financial flows and promoting their productive capacity. Talks will also look at protecting the environment and reducing the vulnerability of the LDCs to climate change, and developing human and institutional capacities to support inclusive and sustainable development of the LDCs.
The 14 LDCs in the Asia-Pacific region for the purposes of Brussels review include Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao PDR, Maldives, Myanmar, Nepal, Samoa, Solomon Islands, Timor-Leste, Tuvalu and Vanuatu. Yemen , the lone LDC in the Middle East , also participated in the meeting.
Fifteen least developed countries (LDCs) meeting at a high-level United Nations forum today concluded their review of a decade’s worth of international assistance efforts with suggestions that such countries be given a greater voice in the international financial structures and extra consideration on climate change concerns.
The proposal came at the High-level Asia-Pacific Policy Dialogue on the Brussels Programme of Action (BPoA) for the Least Developed Countries held in Dhaka , Bangladesh. The meeting was held to assess and develop a unified position for Asia and the Pacific ahead of a global review next year in Turkey on progress made in implementing the BPoA, which seeks “to make substantial progress toward halving the proportion of people living in extreme poverty and suffering from hunger by 2015 and promote the sustainable development of the LDCs.”
In the Dhaka Outcome Document, ministers and senior officials agreed that the food-fuel and financial crises, along with climate change, exposed the acute vulnerabilities of the Asia-Pacific LDCs to external shocks which could derail their development gains.
They said LDCs need to be assisted with enabling them to benefit from the opportunities arising from trade, investment and financial flows. LDCs also must be represented on the Financial Stability Board established by the G20 and that the reform of the international financial architecture must ensure greater representation of LDCs in the international financial institutions.
Among other provisions in their statement, the officials noted that LDCs are at the frontline of the effects of climate change and should be given due priority in the provision of resources promised in the Copenhagen climate talks last December.
Noeleen Heyzer, UN Under-Secretary-General and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP), said the Dhaka meeting represented a turning point in addressing the development issues and challenges facing the Asia-Pacific region.
“It constitutes a regional position in support of the interests and aspirations of the Asia-Pacific LDCs to build an inclusive and sustainable development part in partnership with their development partners from the region and beyond,” she said.
The three-day meeting discussed issues and concerns related to reducing poverty and hunger by promoting sustainable and inclusive development in the LDCs; promoting food security through sustainable agriculture; and enhancing the share of LDCs in global trade, aid and financial flows and promoting their productive capacity. Talks will also look at protecting the environment and reducing the vulnerability of the LDCs to climate change, and developing human and institutional capacities to support inclusive and sustainable development of the LDCs.
The 14 LDCs in the Asia-Pacific region for the purposes of Brussels review include Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao PDR, Maldives, Myanmar, Nepal, Samoa, Solomon Islands, Timor-Leste, Tuvalu and Vanuatu. Yemen , the lone LDC in the Middle East , also participated in the meeting.
KBank and J.P. Morgan team to guarantee one-day U.S. dollar transfers to China
KASIKORNBANK has announced that it is the first Thai bank to provide U.S. dollar-denominated funds transfers service through the use of J.P. Morgan’s U.S.Dollar Clearing – Asia Direct, an intelligent routing technology that allows the funds transfer to directly reach the destination branch in key economic zones throughout China within the same day. If the banks in China cannot receive the funds within one day, KBank will refund the transfer fee. The excellent servicing standards of the two Banks will facilitate exporters to manage their time, expenses and liquidity without any difficulties.
Mr. Songpol Chevapanyaroj, Executive Vice President, KASIKORNBANK, said China is currently one of the key trading partners of Thailand. The trading volume of the two countries measured 1.19 trillion Baht in 2009, and has grown an average of 27 percent per annum since 2003. However, funds transfers have constrained trade between Thailand and China due to complications in funds receipt times caused by geography, organization, and time zone differences. China has more than 50 cities in 34 provinces with an earlier time zone than Thailand. This has made it difficult to know exactly when funds would reach recipients.
KBank has been aware of this problem and developed operations that allow U.S. dollar-denominated funds transfers from Thailand to bank branches in China within one day, with the cooperation from J.P. Morgan, one of the world’s leading banks in international funds transfer.
Thus, KBank can now provide a time guarantee for customers who transfer U.S. dollar-denominated funds to around 700 bank branches in China. If a customer completes the transaction before noon, the bank branch in China will receive the funds within one day. If the funds are not received within one day, the Bank will refund the transfer fee to the customer.
Mr. Percy Batliwalla, Managing Director and Asia Pacific head of financial institutions - banks at J.P.Morgan Treasury Services said that “As a result of the increasing intra-Asia trade flows, enhancing the efficiencies of U.S.Dollar payments, particularly within the Greater China region and Japan has become essential for all banks within Asia.
Mr. Batliwalla added that Thailand remains an important market for J.P.Morgan, and we are confident that our unique U.S.Dollar Clearing - Asia Direct solution will enable KASIKORNBANK to provide greater efficiencies to its existing and potential clients, thereby enhancing the bank's competitiveness.
In addition, this service, developed in cooperation between KBank and J.P. Morgan, will increase potential of businesses that need to make funds transfers to China, as they will more efficiently manage liquidity without the need to wait several days for transfers to be completed. Such businesses will be able to more easily control their spending without the need to submit funds transfer orders through several branch layers.
Mr. Songpol added that KBank’s network in China includes leading banks covering key economic zones throughout the country, with a total of 700 outlets. The Bank hopes the new service will match customer needs and further build confidence in the Bank as a trusted business partner. Businesses that wish to use the service can contact any KBank branch nationwide, or ask for more information at the K-BIZ Contact Center, tel. 0 2888 8822.
About KASIKORNBANK
KASIKORNBANK (KBank) has for over 60 years of operation been regarded as Thailand's premier banking institution, and a renowned forward thinking bank which always continues to deliver innovative financial services to customers. The founding of KASIKORNBANKGROUP in 2005, raised the Bank to a comprehensive financial service provider with one singular brand of quality service - K Excellence. For more information, visit www.kasikornbank.com.
About J.P. Morgan
J.P. Morgan is the world's largest U.S.Dollar clearing and commercial bank. J.P.Morgan Treasury Services leverages the services and products of its Worldwide Securities Services division, as well as its Investment Bank, Asset Management and Private Bank lines of business to provide its clients with integrated banking solutions.
Mr. Songpol Chevapanyaroj, Executive Vice President, KASIKORNBANK, said China is currently one of the key trading partners of Thailand. The trading volume of the two countries measured 1.19 trillion Baht in 2009, and has grown an average of 27 percent per annum since 2003. However, funds transfers have constrained trade between Thailand and China due to complications in funds receipt times caused by geography, organization, and time zone differences. China has more than 50 cities in 34 provinces with an earlier time zone than Thailand. This has made it difficult to know exactly when funds would reach recipients.
KBank has been aware of this problem and developed operations that allow U.S. dollar-denominated funds transfers from Thailand to bank branches in China within one day, with the cooperation from J.P. Morgan, one of the world’s leading banks in international funds transfer.
Thus, KBank can now provide a time guarantee for customers who transfer U.S. dollar-denominated funds to around 700 bank branches in China. If a customer completes the transaction before noon, the bank branch in China will receive the funds within one day. If the funds are not received within one day, the Bank will refund the transfer fee to the customer.
Mr. Percy Batliwalla, Managing Director and Asia Pacific head of financial institutions - banks at J.P.Morgan Treasury Services said that “As a result of the increasing intra-Asia trade flows, enhancing the efficiencies of U.S.Dollar payments, particularly within the Greater China region and Japan has become essential for all banks within Asia.
Mr. Batliwalla added that Thailand remains an important market for J.P.Morgan, and we are confident that our unique U.S.Dollar Clearing - Asia Direct solution will enable KASIKORNBANK to provide greater efficiencies to its existing and potential clients, thereby enhancing the bank's competitiveness.
In addition, this service, developed in cooperation between KBank and J.P. Morgan, will increase potential of businesses that need to make funds transfers to China, as they will more efficiently manage liquidity without the need to wait several days for transfers to be completed. Such businesses will be able to more easily control their spending without the need to submit funds transfer orders through several branch layers.
Mr. Songpol added that KBank’s network in China includes leading banks covering key economic zones throughout the country, with a total of 700 outlets. The Bank hopes the new service will match customer needs and further build confidence in the Bank as a trusted business partner. Businesses that wish to use the service can contact any KBank branch nationwide, or ask for more information at the K-BIZ Contact Center, tel. 0 2888 8822.
About KASIKORNBANK
KASIKORNBANK (KBank) has for over 60 years of operation been regarded as Thailand's premier banking institution, and a renowned forward thinking bank which always continues to deliver innovative financial services to customers. The founding of KASIKORNBANKGROUP in 2005, raised the Bank to a comprehensive financial service provider with one singular brand of quality service - K Excellence. For more information, visit www.kasikornbank.com.
About J.P. Morgan
J.P. Morgan is the world's largest U.S.Dollar clearing and commercial bank. J.P.Morgan Treasury Services leverages the services and products of its Worldwide Securities Services division, as well as its Investment Bank, Asset Management and Private Bank lines of business to provide its clients with integrated banking solutions.
Thursday, January 21, 2010
BIFF & BIL 2010 Scheduled for 1 – 4 April 2010
The Department of Export Promotion (DEP), Ministry of Commerce of the Royal Thai Government has announced that BIFF & BIL 2010 – Bangkok International Fashion Fair and Bangkok International Leather Fair will be organized during 1 to 4 April this year at Challenger Hall 1 – 3, IMPACT Muang Thong Thani, Nontaburi, Thailand.
Riding on the theme, Look East, the BIFF & BIL 2010 will be a vivid showcase of great potential of the ASEAN fashion industry, from upstream to downstream. The mega event will bring together the best fashions and accessories of the ASEAN region, capitalizing on hot new trends, signature styles, textiles and leather products supported by the synergy of local expertise and regional cooperation.
More than 1,000 selected domestic and overseas exhibitors in diverse fields from clothing, textile, leather and fashion accessories to textile equipment & machinery, software & services related to the fashion industry will participate. Potential visitors include importers, manufacturers, traders, distributors, wholesalers, retailers, boutiques, department stores, buying agents, designers, press and others in fashion business.
Among highlights at BIFF & BIL 2010 include seminars and conferences, 48 fashion shows, ASEAN Design Congress, Thailand Designer Contest as well as ASEAN Pavilion and Japan Pavilion.
For more information please visit www.biffandbil.com or contact:-
BrandComm Consultants Co., Ltd. : Official PR Agency for BIFF & BIL 2010
Email : info@brandcomm-pr.com
BIFF & BIL 2010 Profile
Event name : Bangkok International Fashion Fair & Bangkok International Leather Fair 2010
Duration : 1 - 4 April 2010
Trade day : 1 – 2 April 2010 (10.00 – 18.00 hrs.)
Public day : 3 – 4 April 2010 (10.00 – 21.00 hrs.)
Venue : Challenger Hall 1 - 3, IMPACT Muang Thong Thani, Nontaburi, Thailand
(40,000-60,000 sq.m)
Riding on the theme, Look East, the BIFF & BIL 2010 will be a vivid showcase of great potential of the ASEAN fashion industry, from upstream to downstream. The mega event will bring together the best fashions and accessories of the ASEAN region, capitalizing on hot new trends, signature styles, textiles and leather products supported by the synergy of local expertise and regional cooperation.
More than 1,000 selected domestic and overseas exhibitors in diverse fields from clothing, textile, leather and fashion accessories to textile equipment & machinery, software & services related to the fashion industry will participate. Potential visitors include importers, manufacturers, traders, distributors, wholesalers, retailers, boutiques, department stores, buying agents, designers, press and others in fashion business.
Among highlights at BIFF & BIL 2010 include seminars and conferences, 48 fashion shows, ASEAN Design Congress, Thailand Designer Contest as well as ASEAN Pavilion and Japan Pavilion.
For more information please visit www.biffandbil.com or contact:-
BrandComm Consultants Co., Ltd. : Official PR Agency for BIFF & BIL 2010
Email : info@brandcomm-pr.com
BIFF & BIL 2010 Profile
Event name : Bangkok International Fashion Fair & Bangkok International Leather Fair 2010
Duration : 1 - 4 April 2010
Trade day : 1 – 2 April 2010 (10.00 – 18.00 hrs.)
Public day : 3 – 4 April 2010 (10.00 – 21.00 hrs.)
Venue : Challenger Hall 1 - 3, IMPACT Muang Thong Thani, Nontaburi, Thailand
(40,000-60,000 sq.m)
Sunday, January 17, 2010
Article Looks At The Long-Term Effects Of The Recent Credit Crisis
In the wake of the 2007-2008 financial crisis, there has been much discussion about the prospects for an economic recovery over the next few quarters. But an article published yesterday by Standard & Poor's says that the more important issue is: What will happen over the next few decades? The article, which is titled "The New Normal (The Future Isn't What It Used To Be)," says that Standard & Poor's believes it will be a decade or more before the world and U.S. economies can hope to grow as rapidly as they did during the half-century or so preceding the recent crisis because they will have to bear increasing burdens. These will likely include:
--High personal debt and lower wealth in the U.S., which--combined with a rebounding though still-low saving rate--will slow the consumer spending that has powered much of U.S. and world growth.
--International trade and financial imbalances that are leading to a weaker dollar and a move away from dollar reserves.
--Stricter but inconsistent financial and other government regulation.
--A global financial system that has lost much of its capital and will need to operate with lower leverage, restricting loan availability.
--More risk-averse investors (some suddenly conservative because of recent losses, others approaching retirement and husbanding their wealth).
--Fiscal deficits in many countries, especially the U.S., the deficit of which could grow larger as the retirement wave hits.
--Rising health care costs that threaten the competitiveness of U.S. companies versus their overseas counterparts.
"We expect that the world economy will recover," said Standard & Poor's Chief Economist David Wyss. "But we think it's likely that it will look different once it does." For example, the events of the past two years likely have accelerated the relative decline in U.S. economic influence, as Asian economies have continued to grow while America's has contracted. In past decades, however, the U.S. and world economies have proved resilient. So while the future isn't as bright it seemed during the bygone boom, neither is it as bleak as it seemed only a year ago.
This article is part of a special report titled "The New Normal," which also will be published in the Jan. 27, 2010, edition of Standard & Poor's CreditWeek. The special report examines how certain industry sectors and financial markets could fundamentally change as a result of the recent credit crisis.
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
--High personal debt and lower wealth in the U.S., which--combined with a rebounding though still-low saving rate--will slow the consumer spending that has powered much of U.S. and world growth.
--International trade and financial imbalances that are leading to a weaker dollar and a move away from dollar reserves.
--Stricter but inconsistent financial and other government regulation.
--A global financial system that has lost much of its capital and will need to operate with lower leverage, restricting loan availability.
--More risk-averse investors (some suddenly conservative because of recent losses, others approaching retirement and husbanding their wealth).
--Fiscal deficits in many countries, especially the U.S., the deficit of which could grow larger as the retirement wave hits.
--Rising health care costs that threaten the competitiveness of U.S. companies versus their overseas counterparts.
"We expect that the world economy will recover," said Standard & Poor's Chief Economist David Wyss. "But we think it's likely that it will look different once it does." For example, the events of the past two years likely have accelerated the relative decline in U.S. economic influence, as Asian economies have continued to grow while America's has contracted. In past decades, however, the U.S. and world economies have proved resilient. So while the future isn't as bright it seemed during the bygone boom, neither is it as bleak as it seemed only a year ago.
This article is part of a special report titled "The New Normal," which also will be published in the Jan. 27, 2010, edition of Standard & Poor's CreditWeek. The special report examines how certain industry sectors and financial markets could fundamentally change as a result of the recent credit crisis.
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Saturday, January 2, 2010
Asian Sovereigns Will Step Up Borrowing In 2010 While Considering Exit Strategies From Stimulus Programs, Says Article
Asian sovereigns are likely to remain active borrowers in 2010, with a 5% year-over-year rise in commercial issuance, according to a recently released report by Standard & Poor's Ratings Services titled, "Asian Sovereigns To Remain In Debt Markets."
Standard & Poor's survey of borrowing and debt suggests sovereign requirements for 2010 are likely to bring commercial issuance in the region to US$2.2 trillion. But, as sovereigns in Asia consider exit strategies from economic stimulus programs, Standard & Poor's anticipates that they will seek to strike a balance to prevent a derailing of the still-nascent economic recovery.
"We believe that the test for sovereigns in the coming year will be managing macroeconomic crosscurrents while stimulus-based policies are still in place, despite worries over asset and consumer price trends," said Standard & Poor's credit analyst William Hess.
The article adds that in the longer term, the prospect of lingering deficits, combined with the significant downside risks of a second slowdown in global growth, raises questions about debt sustainability for a number of sovereigns in the region and the implications of borrowing plans on ratings.
"We believe that sovereigns in the region are not yet ready to retreat from capital markets either for the own funding purposes or for general economic support programs. For sovereigns in Asia during 2010, this could mean remaining active issuers in markets that they may otherwise like to tame, with the result of this balancing act being important for medium-term fiscal trends," said Mr. Hess.
Standard & Poor's survey of borrowing and debt suggests sovereign requirements for 2010 are likely to bring commercial issuance in the region to US$2.2 trillion. But, as sovereigns in Asia consider exit strategies from economic stimulus programs, Standard & Poor's anticipates that they will seek to strike a balance to prevent a derailing of the still-nascent economic recovery.
"We believe that the test for sovereigns in the coming year will be managing macroeconomic crosscurrents while stimulus-based policies are still in place, despite worries over asset and consumer price trends," said Standard & Poor's credit analyst William Hess.
The article adds that in the longer term, the prospect of lingering deficits, combined with the significant downside risks of a second slowdown in global growth, raises questions about debt sustainability for a number of sovereigns in the region and the implications of borrowing plans on ratings.
"We believe that sovereigns in the region are not yet ready to retreat from capital markets either for the own funding purposes or for general economic support programs. For sovereigns in Asia during 2010, this could mean remaining active issuers in markets that they may otherwise like to tame, with the result of this balancing act being important for medium-term fiscal trends," said Mr. Hess.
Asian Countries Agree to Pursue Treaty on Dry Ports to Promote Regional Integration
Transport Ministers Forum concludes first session at ESCAP in Bangkok
Transport ministers from across Asia have agreed to work on a treaty to promote the development of dry ports – inland transport and logistics hubs – to spur intraregional trade and growth.
The agreement came at the end of the first session of the Forum of Asian Ministers of Transport, which concluded today at the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok.
In the Bangkok Declaration on Transport Development in Asia, the ministers agreed to develop an intergovernmental agreement on dry ports to provide connectivity and integration of the Asian Highway and the Trans-Asian Railway networks, creating an international integrated intermodal transport and logistics system.
Under the auspices of ESCAP, countries in the region have already adopted two intergovernmental agreements - on the Asian Highway and the Trans-Asian Railway networks - to promote the development and standardization of 141,000 kilometers of roadways and 114,000 kilometers of railways, linking the continent with Europe and serving as arteries for international trade, especially for landlocked countries in the region.
Dry ports will play an important role in integrating modes of transport, reducing border crossing and transit delays, facilitating the use of energy-efficient and lower emission means of transport, and creating new clusters of economic growth and job creation in local areas.
The first session of the Forum brought together 27 countries in Asia. In his opening message on Monday, UN Secretary-General Ban Ki-moon stated that “enhanced regional connectivity is especially important” in addressing development issues.
In her opening address, Noeleen Heyzer, UN Under-Secretary-General and Executive Secretary of ESCAP, spoke of the vital role of the transport sector in providing physical connectivity required for promoting domestic demand and intraregional trade as new sources of growth.
“The economic crisis has shown that relying mainly on exports to western markets comes with inherent risks. Our region will need to diversify the drivers of growth. This must include strategies for promoting increased intra-regional trade and domestic consumption,” said Dr. Heyzer.
The Forum was created by member governments of ESCAP at their annual meeting last April. During the week-long session, delegates discussed issues pertaining to transport development in the region, including the implementation of the Busan Declaration on Transport Development in Asia and the Pacific, and the Regional Action Programme for Transport Development in Asia and the Pacific.
Transport ministers from across Asia have agreed to work on a treaty to promote the development of dry ports – inland transport and logistics hubs – to spur intraregional trade and growth.
The agreement came at the end of the first session of the Forum of Asian Ministers of Transport, which concluded today at the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok.
In the Bangkok Declaration on Transport Development in Asia, the ministers agreed to develop an intergovernmental agreement on dry ports to provide connectivity and integration of the Asian Highway and the Trans-Asian Railway networks, creating an international integrated intermodal transport and logistics system.
Under the auspices of ESCAP, countries in the region have already adopted two intergovernmental agreements - on the Asian Highway and the Trans-Asian Railway networks - to promote the development and standardization of 141,000 kilometers of roadways and 114,000 kilometers of railways, linking the continent with Europe and serving as arteries for international trade, especially for landlocked countries in the region.
Dry ports will play an important role in integrating modes of transport, reducing border crossing and transit delays, facilitating the use of energy-efficient and lower emission means of transport, and creating new clusters of economic growth and job creation in local areas.
The first session of the Forum brought together 27 countries in Asia. In his opening message on Monday, UN Secretary-General Ban Ki-moon stated that “enhanced regional connectivity is especially important” in addressing development issues.
In her opening address, Noeleen Heyzer, UN Under-Secretary-General and Executive Secretary of ESCAP, spoke of the vital role of the transport sector in providing physical connectivity required for promoting domestic demand and intraregional trade as new sources of growth.
“The economic crisis has shown that relying mainly on exports to western markets comes with inherent risks. Our region will need to diversify the drivers of growth. This must include strategies for promoting increased intra-regional trade and domestic consumption,” said Dr. Heyzer.
The Forum was created by member governments of ESCAP at their annual meeting last April. During the week-long session, delegates discussed issues pertaining to transport development in the region, including the implementation of the Busan Declaration on Transport Development in Asia and the Pacific, and the Regional Action Programme for Transport Development in Asia and the Pacific.
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