PARISTA YUTHAMANOP
Thailand will continue to be attractive to foreign investors in the medium term, but needs to take steps to upgrade national infrastructure and increase political stability, according to local economists. Tarisa Watanagase, the Bank of Thailand governor, said the country needed to reduce the mismatch in labour skills between college and vocational graduates and demand by the private sector.
''This is especially important, considering that the agricultural sector accounts for just 10% of the economy and cannot provide social support for the non-agricultural sector should an economic downturn occur,'' she said during a keynote speech at yesterday's Euromoney investor forum.
Thailand's geographic location offered an advantage to investors as a gateway to Southeast Asia. The country would also benefit from trade and financial services liberalisation and integration under Asean.
Dr Tarisa said inflation was the central bank's major concern, but sufficient room existed in foreign exchange and monetary policy to help mitigate the issue.
Economic growth was projected at nearly 6% for the first quarter, thanks to robust exports and moderate growth of domestic consumption and private investment. Accelerated fiscal disbursement and the government's large infrastructure commitments also helped lift investor and consumer confidence.
But Dr Tarisa cautioned that the economic environment remained uncertain.
''Global price pressure has yet to peak, as world demand for oil and commodities continue to face a tight demand-supply situation,'' she said.
''We also cannot discount the possibility of potentially adverse geopolitical events, unfavourable weather conditions, and a further dollar slide, which could drive up oil prices in the future.''
Christopher Burnham, vice-chairman of Deutsche Bank Asset Management, said Thailand had a competitive advantage for biofuel crops such as palm oil and sugarcane. ''Investment in palm oil and sugar cane should be massive over the next ten years,'' he said.
Mr Burnham said abnormally low interest rates, increased demand in emerging markets and a premium due to geopolitical risks were key factors behind recent increases in oil price.
''The cause of the endless rise in oil and energy prices is not supply-led as it appears to be, but rather a risk premium for conflicts in Afghanistan, Lebanon and the interaction between the US and Iran,'' he said.
Jack Lin, regional managing director at Franklin Templeton Investments, said the Thai economy needed to seek an appropriate balance of consumption, government spending and exports. It also needed to maintain competitiveness in attracting foreign direct investment.
''Corporate investment is the area affected most by political uncertainty. The government needs to have a clear strategy in terms of the whole value chain as to where we stand and which areas it would give incentives,'' Mr Lin said.
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Thailand will continue to be attractive to foreign investors in the medium term, but needs to take steps to upgrade national infrastructure and increase political stability, according to local economists. Tarisa Watanagase, the Bank of Thailand governor, said the country needed to reduce the mismatch in labour skills between college and vocational graduates and demand by the private sector.
''This is especially important, considering that the agricultural sector accounts for just 10% of the economy and cannot provide social support for the non-agricultural sector should an economic downturn occur,'' she said during a keynote speech at yesterday's Euromoney investor forum.
Thailand's geographic location offered an advantage to investors as a gateway to Southeast Asia. The country would also benefit from trade and financial services liberalisation and integration under Asean.
Dr Tarisa said inflation was the central bank's major concern, but sufficient room existed in foreign exchange and monetary policy to help mitigate the issue.
Economic growth was projected at nearly 6% for the first quarter, thanks to robust exports and moderate growth of domestic consumption and private investment. Accelerated fiscal disbursement and the government's large infrastructure commitments also helped lift investor and consumer confidence.
But Dr Tarisa cautioned that the economic environment remained uncertain.
''Global price pressure has yet to peak, as world demand for oil and commodities continue to face a tight demand-supply situation,'' she said.
''We also cannot discount the possibility of potentially adverse geopolitical events, unfavourable weather conditions, and a further dollar slide, which could drive up oil prices in the future.''
Christopher Burnham, vice-chairman of Deutsche Bank Asset Management, said Thailand had a competitive advantage for biofuel crops such as palm oil and sugarcane. ''Investment in palm oil and sugar cane should be massive over the next ten years,'' he said.
Mr Burnham said abnormally low interest rates, increased demand in emerging markets and a premium due to geopolitical risks were key factors behind recent increases in oil price.
''The cause of the endless rise in oil and energy prices is not supply-led as it appears to be, but rather a risk premium for conflicts in Afghanistan, Lebanon and the interaction between the US and Iran,'' he said.
Jack Lin, regional managing director at Franklin Templeton Investments, said the Thai economy needed to seek an appropriate balance of consumption, government spending and exports. It also needed to maintain competitiveness in attracting foreign direct investment.
''Corporate investment is the area affected most by political uncertainty. The government needs to have a clear strategy in terms of the whole value chain as to where we stand and which areas it would give incentives,'' Mr Lin said.
Discuss
Add this link to...
Tell a friend
Bury
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