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Things are turning
around in the Land of Smiles with promising signs pointing to an economic
recovery, according to a senior executive at Thailand's stock exchange.
Thailand's gross
domestic product climbed 2.9 percent from a year ago in the thirds quarter, on
the back of domestic spending and exports. This improvement comes after a
series of disruptive events in Thailand's recent history including the military
coup in May last year and the Bangkok explosions near a famous shrine in
August.
Thailand's Finance
Minister Apisak Tantivorawong announced plans to launch the $2.79 billion
"Thailand Future Fund" by the end of this year to support
infrastructure investments, Reuters reported.
"The government
spending plan is not limited to just long-term infrastructure investments but
also investments into new sectors," Peetathwatchai said.
"Now they can
start to think of additional issues like how we can create short-term
consumption, new investments in the private sector," added Peetathwatchai,
who is also a CNBC CFO Council member.
According to
Peetathwatchai, the tourism industry which constitutes 10-12 percent of
Thailand's GDP, a pick-up in the global economy and increased government
spending are the three major factors to drive Thailand's economy next year.
The Bank of Thailand
has forecast GDP growth of 2.7 percent for 2015 and 3.7 percent next year,
according to Reuters.
The Stock Exchange of
Thailand (SET) index is down 12.3 percent year to date, with notable dip in
August because of the Erawan shrine bombings.
Peetathwatchai however
is optimistic about the outlook of the SET, particularly the pipeline of
initial public offering (IPO) which has been attracting "infrastructure
trusts, REITs and holding companies [which enables] foreign companies to list
their assets more easily."
"This year's IPO
pipeline is quite steady," said Peetathwatchai, who added that he is
confident of the total IPO market to be worth about $7 billion this year.
In 2016, he expects
the IPO pipeline to include a varied combination of industries to include
energy, consumers and logistics.
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