The Report: Thailand 2009 was launched on 29 June 2009 at Royal Thai Government House Santi Maitri Building in the presence of the Prime Minister of Thailand Abhisit Vejjajiva, the Minister of Industry, Chanchai Chairungruang, and other key representatives from the world of politics and business.

Marking OBG’s first report on Thailand’s economy, The Report: Thailand 2009 includes a detailed, sector-by-sector guide for foreign investors, together with a wide range of interviews with the most prominent political, economic and business figures, including the Prime Minister.

Other key personalities contributing interviews include Taro Aso, the Prime Minister of Japan, Korn Chatikavanij, Thailand’s Minister of Finance, and Supachai Panitchpakdi, Secretary-General UN Conference on Trade and Development and former Director-General WTO.

High profile international figures, such as former US President George W Bush also gives their views on Thailand’s economic development. The Report: Thailand 2009 has been produced in partnership with the Board of Investment (BOI), which provides investment information, services and incentives for investors. Contributions have also been made by Thanachart Securities as OBG’s capital markets research partner, Tilleke & Gibbins as its legal partner and BDO Richfield Advisory Limited as its accountancy partner.

Thailand’s Minister of Industry, Chanchai Chairungruang, welcomed OBG’s decision to publish its first report on the country. “OBG has provided ground-breaking analysis and data in The Report: Thailand 2009 at a time when key players in the international business community are making important investment decisions,” he said. ” Dr. Atchaka Brimble, BOI Secretary General, said that the Board had relished the opportunity to contribute its knowledge and experience of Thailand’s investment potential to The Report: Thailand 2009.

Dean Baker is right to note that New York Times misleads its readers (I however personally thinks it is likely unintentional so I wouldn’t use the word “deceive”) when they write that Thailand’s GDP rose 3.6% in the fourth quarter. Since New York Times is an American news paper they should use the American way of expressing growth, which is to say that they should in this case write that Thailand’s GDP grew 15% at an annual rate.

But apart from that technical note, the Thai numbers confirm the existence of a vigorous recovery in Asia. Like in Taiwan, that I discussed yesterday, Thailand has now recovered the entire loss in output that it suffered during the slump.

This means that while the rather dramatic drop in demand associated with the panic following Lehman’s collapse did disrupt the Asian economies as the drop in demand was unexpectedly large and sudden and as it takes time to re-organize factors of production, they have been successful in reducing their dependence on net exports to the West and instead re-organize the factors of production for the purpose of domestic demand (for Asia as a whole).

The global economic recovery that appears to be underway was the main topic at the annual symposium held by Thailand’s central bank this week.

The Thai economy will face challenges from low global growth, an appreciating currency and higher funding costs in the years ahead, according to economists at the Bank of Thailand.

Central bank economists at the bank’s yesterday focused on future trends and policy challengesannual economics symposium in the wake of the global downturn.

Even with the worst of the recession apparently over, high household debt and wealth destruction in the US will constrain its consumer purchasing power for five years, while rising bad debt and the need to raise capital will also hamper the US financial sector.

funding costs – money paid to borrow money (interest paid on money plus fees) hiked funding costs – increased funding costs

challenges – new and difficult tasks that require great effort and determination face challenges – meet or encounter new challenges in work or life appreciating currency – a country’s currency (like the Thai baht) which is increasing in value

symposium – a conference or large meeting in which experts and acadmics discuss a subject in detail
annual economics symposium –
X in the wake of Y – X happened after Y
apparently over – seems to be finished (but not sure)
high household debt and wealth destruction – households (families) have borrowed a lot of money and they have had their savings or “wealth” destroyed by the collapse in stock and housing prices

constrain – restrict or limit
constrain its consumer purchasing power – limit what consumers can buy rising bad debt – more and more people and companies not able to pay back loans hamper – prevent action

Generally, under the Thai law, foreign ownership of land is strictly prohibited. Financially smart foreigners however, have found the process of purchasing condos in their own name and renting those units out for income generation to be a very attractive investment. Thus, resourceful foreigners have directly gained full control over the property they acquired in the form of condominium units. Some expats will live in the Thai condo themselves while other owners choose to have a property management company handle the rental. Some Thailand condo developers will even offer this service to the new buyers.

Since foreigners are forbidden from acquiring real properties in Thailand, they have chosen to purchase the next best thing. Acquisition of condominium units have become the simplest and most trouble-free substitute for foreigners who want to own real property in the country. Although foreign ownership of condominium units is allowed, acquisition thereof is limited to a maximum of forty-nine percent (49%) of the whole building.

Another method of indirectly acquiring real property in Thailand is through a long-term lease. Although the non-Thai is merely considered as a lessee in this case, he is converted into the virtual owner of the leased premises since the lease agreement may be drafted in such a way as to render the agreement binding for a very long time. Before the expiration of the contract of lease, if the latter changes his mind and decide to sell his rights to the leased premises, he may validly be allowed to do so as long as such an act is provided for under the contract of lease. Another alternative approach to indirectly owning real estate is the purchase of land through a duly registered Thai company.