Companies see brighter prospects

Private businesses from four sectors share a common view on the economic growth next year – but they warn there are still risk factors that should be watched closely.

Somprasong Boonyachai, InTouch Holdings executive committee chairman, said yesterday he believed growth in gross domestic product next year would be higher than this year. He believes that growth of 4-4.5 per cent is possible.

He made his remarks at a seminar on Thailand’s economic outlook co-hosted by Nation Multimedia Group’s Now digital TV channel and NMG’s Krungthep Turakij newpaper.

One contributor to growth next year is expected to be the export sector, supported by the continued depreciation of the baht. An improving domestic political situation would also attract more investment. 

Somprasong added that the government had approved several projects, and if these were accelerated to get off the ground quickly, this would help create jobs. 

He said the telecom sector was expected to grow further next year, in line with the forecast economic growth. But growth of the telecom industry was expected to be in single digits.

Another panellist, Sanan Angubolkul, vice chairman of the Thai Chamber of Commerce and chairman of Srithai Superware, a manufacturer of melamine ware, said the country’s near-future outlook would be better than in the past year.

He said the economy was expected to begin to improve next quarter, and the improvement would be clearly seen in the second quarter of 2015. While the price of farm products needed to improve, the tourism sector was expected to do well. The Board of Investment had approved several projects, which indicated the improving investment situation.

 

Drought fear

When asked if politics would become a big risk factor next year, Sanan said he believed the government could manage any political dangers. But he warned there were some other threatening factors looming next year, such as a possible drought.

Apa Attaboonwong, executive chairman of property firm Richy Place 2002, said likely negative factors next year that should be watched included a possible “political tidal wave”, high public debt, and the slow economic recovery of major Western countries.

The positive factors included the state continuing to spend on mass-transit systems, low interest rates, and continued investment by private local and foreign businesses in Thailand in response to the full realisation of the Asean Economic Community.

Thitipong Tangpoonponvivat, chief executive officer of concrete-product manufacturer General Engineering, said he shared a common view with the other three panellists about a bright economic outlook in 2015.

He added that the private sector had acquired some immunity against political risks.

Talking about Srithai’s own business strategies for next year, Sanan said the company had kept adjusting its operations to make products that fit well with customer demands.

Talking about fourth-generation wireless broadband service, Somprasong said it would benefit consumers and bring greater growth opportunity to corporate users and support economic growth.

The National Broadcasting and Telecommunications Commission plans to auction licences next year for the 900- and 1,800-megahertz spectra to provide 4G service. True Corp and Total Access Communication (DTAC) have already introduced 4G services on their existing bands on the 2.1-gigahertz spectrum.

Apa said that next year Richy Place would focus on acquiring new customers and a new market, and on developing new products.