Update the latest Thai economic situation
Recovering from coronavirus slowest in the world, foreign investors stop investing in the country
Many years ago, many people had expected that ‘Thailand’ would become Asia’s ‘fifth tiger’ due to its potential for economic growth with the development of new production bases for industries that have received foreign investment especially from Japan. In addition, the government also has many infrastructures investment projects to support growth. Still, the dream of becoming Asia’s fifth tiger is starting to become a distant dream. This is due to the uncertain political stability. Especially the coup d’état happening almost every time causing the Thai economy to stall. Moreover, in the past several decades, we have faced other crises, such as Tom Yum Goong, the Sino-US trade war until the covid crisis. That seems to be the worst crisis in Thailand. Currently, the Thai economy is slowly starting to decline. It is speculated that we may no longer be the focus of the world on the trade and investment dimension.
Recently, Kiatnakin Phatra Financial Group KKP Research has conducted an analysis to capture signs of Thailand’s competitiveness, which reveals that we are currently losing in many dimensions, such as exports, which has always been one of the keys to growing Thai economy. Thai exports at the moment have found that we recover more slowly than many countries around the world. In addition, Thailand still has a lower proportion of export products that use technology than competitor countries. This may make it impossible to compete with other countries. In addition, foreigners are demanding less Thai products as well. In terms of investment, it was found that Thailand began to not be use as the main target for investment, which was caused by many factors, such as rising wages but productivity has not been developed much, or investment and development of Thai R&D. That will help increase productivity is still low. This is a weakness that makes investors not interested in Thailand anymore. Recently, the Bangkok News Agency, Television and Radio Co., Ltd. (Channel 7HD) reported that KKP Research has reduced the GDP forecast of Thailand in 64 to only 0.5% (from the previous estimate of 1.5%) and may even reach a negative level. If the covid situation is still unresolved and the outbreak is still unable to control the pandemic in key central areas like Bangkok. The value of Bangkok’s economy accounts for 50% of the country’s GDP, but currently Bangkok is the area with the worst coronavirus outbreak.
Again, the situation of COVID-19 It is another important catalyst that affects the overall economy. Over the course of nearly two years, we’ve had to deal with COVID-19, the Global COVID-19 Organization (GCI) has rated the index and ranked 180 countries as effective in dealing with the COVID-19 pandemic. The rankings are based on data over the past 90 days, and the criterion for the rankings is made up of two parts: 70% is 1. Number of people infected in treatment 2. The ratio of those who recovered from COVID to the number of confirmed cases 3. The testing of the samples per the number of confirmed cases, and 4. The measures of each country for detection. The remaining 30% came from the WHO Triple Billions of Indices and a subsection from the European Commission (EU) Disaster Risk Management Knowledge Center (DRMKC)* risk data index. On July 22, 2021, Thailand was almost at the bottom of the table. It is ranked 176th out of 180. In addition, the well-known Japanese news agency Nikkei has ranked the COVID-19 management of 120 countries around the world. Which are ranked at the end of every month considering the management of the COVID-19 pandemic to see the total number of confirmed cases. The rate of distribution of vaccines to the people and the lifestyle of people in society. The latest ranking results on July 7, 2021, were found that Thailand ranks 119th out of 120. The rankings of these two sources reflect how much Thailand has failed to cope with the pandemic. which if there is no rush to correct it properly It may affect other things, especially the confidence of foreign investors.
However, the signs that more and more foreign investors are starting to flee Thailand can be seen from the overview of the Thai stock market in 2021, which shows that in the first 5 months, foreign investors gradually sold Thai shares to 66,870 million baht, which is a fact revealed by Mr. Soraphol Tulyasathien, Deputy Manager, Head of Corporate Strategic Planning The Stock Exchange of Thailand (SET) told the Daily News. And the KKP research also reported that the proportion of foreign investment in Thailand compared to neighboring ASEAN countries such as Malaysia, Indonesia, Vietnam and the Philippines has decreased. Only 10% was left in 2016 – 2019, from higher than 30% during 2004 – 2007. Even more tragic is the helping of foreigners working in Thailand during the coronavirus pandemic is also disappointing. According to the news report of Prachachat Business in June, it was found that there are about 500,000 foreign businessmen and their families waiting to get vaccinated in Thailand, many of them can’t wait. Therefore, flew back to inject it to their own country instead. Of course, the delay in providing vaccines to foreigners living in Thailand (most of them work and pay taxes to our country) has made many foreign investors feel disappointed and may lack confidence in investing in Thailand. However, some embassies such as France and China have solved the problem by providing vaccines and vaccinations for citizens living in Thailand. It is unlikely that in the future we may see embassies from other countries follow because they cannot tolerate the delay of vaccination for foreigners living in Thailand. That even many Thai people have not received injections as well.
From the failure to cope with both the COVID-19 pandemic and the resulting economy. It may be a warning signal to consider how long Thailand will survive. Under the administration of the state and various department involved in this set? Today, people are waking up to the news that the number of infections has risen to more than ten thousand. The death rate due to COVID shows no signs of declining. Many shops and companies had to close. More and more people are unemployed. And what’s even more shocking is that seeing the news of people dying from COVID-19 both in the home and in public areas. This is something the Thai state should urgently resolve before things get any worse
*Check the ranking at GCI at https://covid19.pemandu.org/about/
**Noted: 1) GCI ranking results in referenced articles July 23, 2021 in the past with ratings of use of data. 2) This Nikkei ranking reference is based on July 7, 2021 from Nikkei Asia website
Thankyou information from
CH7 News https://news.ch7.com/detail/501815