What happened to Thailand’s double digit growth rates and seemingly never-ending economic expansion? Just a few years ago things seem to be moving ahead with a record breaking stock market bull run. What went wrong? Several factors are currently hindering the Thai economy to grow at rates similar to its Asian counterparts. Although the overall economy seems to be fundamentally strong, there are some obstacles pushing down the overall business sentiments.
They include the political situation, specifically the weekly anti government rallies hosted by Sondhi Limthongkul, the unrest in the southern provinces, growing public distrust about corruption, and a further increase in core inflation. The recent halt of the privatization of EGAT’s IPO also shocked the business community, causing billions of Thai Baht to disappear into other regional markets. Furthermore, problems with the US Free Trade Agreement, a possible listing of “Chaang beer” in Singapore, and a strong resistance to further liberalization and privatization will hinder new investment and economic growth.
On the other hand, a stable domestic consumption and an overall positive outlook of the world economy will surely support Thailand to get off its feet again. As long as the government continuous with its privatization plans, infrastructure expansions, privatization and liberalizations, and ensures that all transactions in the public, government and private sector are fully transparent, Thailand will surely be born again as a shining star in South East Asia. |
