The Phuket News Premier League predictions The Phuket News Kata Rocks The Phuket News Oju Group
The Phuket News Business News
The Phuket News Phuket | Thailand | World | Business | Q&A | Weird World XML, RSS, Feed
The Phuket News The Phuket News
The Phuket News

Foreign direct investment collapses, central bank declares biggest dip in a decade

BANGKOK: Foreign direct investment (FDI) in Thailand in the first half of the year fell by more than 90 per cent in value to the lowest mark in over a decade at US$347 million (B12.6 billion), reports the Bank of Thailand.

economics,


Bangkok Post

Tuesday 2 August 2016, 07:35PM


Foreign Direct Investment (FDI) has plunged despite strong campaigning such as this appeal by economy czar and Deputy Prime Minister Somkid Jatusripitak at the Bangkok Nikkei Forum 2016 on July 7. Photo: Post Today
Foreign Direct Investment (FDI) has plunged despite strong campaigning such as this appeal by economy czar and Deputy Prime Minister Somkid Jatusripitak at the Bangkok Nikkei Forum 2016 on July 7. Photo: Post Today

The report said FDI declined from $4.2 billion (B145.975 billion) in the same period last year to the lowest value since 2005. The decline was attributed to the structure of Thai industry, which continues to produce low-technology products even as Thai wages rise relative to that of neighbouring countries.

The sluggish global economy has also kept foreign investors on the sidelines.

“They are taking a wait-and-see approach until they see solid signs of recovery in major countries,” said the report.

Political uncertainty in Thailand may have discouraged investment. The country has a referendum on the latest constitution draft on Sunday (Aug 7). The outcome will likely affect whether a general election takes place as scheduled.

However, the central bank hopes the latter half will see an improvement in FDI as the world economy is projected to improve gradually and the Thai political environment may be clearer after the referendum.

FDI actually rose in the second quarter of 2016, tallying $1.13 billion (B39.27 billion) compared with a contraction of $789 million (B27.42 billion) the same period last year. The influx of foreign capital flowing to equity and bond markets should increase FDI again, the report said.

In June, foreign capital to those two markets totalled $2.23 billion (B77.49 billion).

The central bank attributed the June inflow to the “Brexit” effect, which should delay any Federal Reserve interest rate hike, and FDI in particular sectors such as telecommunications.

Hirunya Suchinai, the secretary-general of the Board of Investment (BoI), played down the issue, saying the nosedive was because of the different way the board and the central bank measure investment value.

She said the BoI calculation is based on investment applications the BoI approves. The central bank figure includes investment value and capital inflow-outflow, causing the difference.

“The BoI measurement was the real investment value from 328 projects the first five months this year,” said Mrs Hirunya, referring to B84.39 billion, up 604% from B11.99 billion year-on-year.

QSI International School Phuket

The biggest foreign investors into Thailand are Hong Kong, leading with B23.2 billion, followed by Japan at B19.27 billion and the Netherlands at B10.95 billion, she said.

Mrs Hirunya said in the first half this year, foreign investment in Thailand rose substantially thanks to a big jump in June, with 758 new investment projects worth a total investment value of B303.66 billion.

That was up 327% from the same period last year, which saw B71.14 billion of investment value from 408 projects. The rise was attributed to government attempts to support investment such as its cluster policy, special economic zones and the plan to promote the Eastern Economic Corridor.

She is still confident FDI for 2016 will reach the BoI’s target of B450 billion.

Thai overseas investment in the first half this year skyrocketed by 42.5% year-on-year to $5.95 billion, reported the central bank.

The BoI put the figure at $7 billion for the first five months this year, with Deputy Secretary-General Chokedee Kaewsang noting it was up from $2 billion in the same period last year.

He attributed the rise to expansion and business diversification, particularly for mining and renewable energy businesses.

“This year the BoI expects new investment in other sectors such as manufacturing and banking outside the country to boost the value of Thai investment abroad. We have seen positive signs that these sectors have the potential to grow in overseas markets,” said Mr Chokedee.

The BoI projects Thai investment overseas to exceed $14 billion this year.

 

Read original story here.

 

 

The Phuket News
The Phuket News
Comment on this story
* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.
Comments Here:

Comments Left: Characters
Username:
Password:
E-mail: (No Hotmail, Live, MSN and Outlook accepted at this time)
Security:
   => Forget password?

Christy Sweet | 03 August 2016 - 15:02:45

Several years ago I had problems transferring 3 million out as the form was missing the info on what I was going to have used the money for. I was in the bank about 4 hours, too. Just another way to make it as difficult an unpleasant for foreigners as possible.  

The Phuket News

Kurt | 03 August 2016 - 09:21:06

@ samhayan.  To avoid these complications, next time you transfer money from overseas to Thailand, ask your thai bank for a TT3 document ( Tor Tor 3), also called a "Foreign Currency Transaction" form.
This form is necessary if you transfer over USD 20,000 into Thailand in any foreign currency.
By thai law your thai bank has to provide that form.( always done by mother bank in Bangkok)...

The Phuket News

samhayman | 02 August 2016 - 22:16:34

hahahah  at the B.O.T and Finance Ministry using pathetic policies.

Example: Spent 5 hours at Kasikorn bank trying to convince them that the $20,000 dollars i wanted to transfer out of Thailand was money i had transferred in from my overseas business and not money from drug deals or illegal means.

Thailand, you treat farung like they're guilty until proven innocent. No wonder no-one want...

The Phuket News
Matches 3 result(s)
The Phuket News
The Phuket News
The Phuket News
The Phuket News The Phuket News The Phuket News
The Phuket News
Share this
The Phuket News
Have a news tip-off? Click here
The Phuket News
Related stories
The Phuket News
Phuket community

Recent Comments


Eight injured as Phuket speedboats collide

Why is there no Marine training centre on Phuket/Andaman Sea? The Phuket Governor stated that Phuket 'serves' 20,000 to 30,000 marine tourist...(Read More)


Man suffers serious head injuries as motorbike slams into drain

Always adjust your driving/speed to the road condition, day/night/weather conditions. A narrow winding road? Adjust your speed. No safety barrier? A...(Read More)


Massage parlour shareholder held for trafficking

No arrest warrants yet for police officers, as the police has trouble to identify them! Yes-yes! No surprise. Well, there were already 5 Colonels...(Read More)


Phi Phi tour boat fireball: Phuket doctors play down facial surgery fears for burn victim

As noted in another post, PN commenters apparently feel that compassion is "nonsense". Uniformed hatefulness seems to be preferred. Sad....(Read More)



Eight injured as Phuket speedboats collide

There is nothing more to say,all has been say'd already Horst...(Read More)


Eight injured as Phuket speedboats collide

You just couldn't make this stuff up. Apparently not satisfied with having the worlds deadliest roads Thailand now wants to expand it's ran...(Read More)


Eight injured as Phuket speedboats collide

One of the speedboat drivers told the police that his brakes failed....(Read More)


Phi Phi tour boat fireball: Phuket doctors play down facial surgery fears for burn victim

Can't find any reference to money in the article only the compassion being shown by the Phuket Governor in visiting the injured. ...(Read More)


Phuket police seize over B10mn worth of overpriced items in zero-dollar raids

Zero dollar businesses are scams, almost exclusively group tours being offered to Chinese customers, to the detriment of local traders. The evidence i...(Read More)

The Phuket News
Bangkok Hospital Phuket
PHUKET NEWS
Phuket
Thailand
World
Business
Q A
Weird World
ARCHIVE
POLL
CURRENCY
WEATHER
PHUKET TIDE TABLE
The Phuket News PHUKET LIFE
Phuket Arts
Phuket Community
Phuket Culture
Phuket Dining
Phuket Education
Phuket Entertainment
Phuket Environment
Phuket Health
Phuket People
Phuket Technology
Phuket Travel
World Entertainment
Photo Galleries
The Phuket News PHUKET SPORT
Phuket
Thailand
World
SURF REPORT
PREDICTIONS
The Phuket News PHUKET CLASSIFIEDS
Phuket Buy and Sell
Phuket Jobs
Phuket Property
Phuket Cars and Boats
Phuket Community
Phuket Services
SEARCH CLASSIFIEDS
POST CLASSIFIED
The Phuket News The Phuket News PHUKET EVENTS
Phuket Event listings
Phuket Event calendar
Buy Tickets
POST EVENT
The Phuket News PHUKET DIRECTORY
Phuket Bars, pubs and clubs
Phuket Hotels and villas
Phuket Restaurants
Phuket Yellow Pages
POST LISTING
The Phuket News BARGAINS
The Phuket News ABOUT US
The Company
Distribution points
Subscribe
Advertise with us
Pay for advert
Contact us
CONTESTS
Content Google Map
Site map
Australian Visa Services
 
Currency - The Phuket News   Weather Report - The Phuket News   Surf Report - The Phuket News
LinkedIn - The Phuket News   Twitter - The Phuket News   YouTube - The Phuket News   Facebook - The Phuket News
Copyright © 2018 Class Act Media. All rights reserved. | Website usage terms and conditions | Privacy and Confidentiality Statement.