Businesses in Thailand ‘less downbeat’

This was generally reflected across most areas showing increased optimism in terms of revenue, selling prices, exports, profitability, investment in new buildings, investment in plants and machinery, research and development, and increased access to finance, as well as reduction in red tape. However, areas that continued to decline included plans to increase workforce, availability of skilled workers, and infrastructure for information and communications technology and transport.

Within Asean, Malaysia reported increased optimism but remained low, rising from negative-28 per cent to negaive-14 per cent in the fourth quarter, although that was off a very low base from the third quarter,.

Singapore’s optimism declined, from minus-14 per cent to minus-16 per cent, reflecting continued pressure on the economy and its exposure to Malaysia and global trade.

The Philippines’ perennial optimism was only slightly diminished, from 86 per cent to 84 per cent, while Indonesia had a strong rise in optimism, from 36 per cent to 56 per cent, although this may not be sustained given the country missed its economic-growth target for 2015.

Andrew McBean, partner and specialist on Asean and the AEC, said the optimism in Thailand partially stemmed from just looking forward to a new year with a better sense of hope.

Also, many analysts had been predicting that 2016 would be better for Thailand than a dismal 2015. This reflects not so much increased optimism but just less pessimism.

Grant Thornton’s research finds that despite revenue expectations in China falling from 33 per cent to 21 per cent this quarter, it has only shifted from 38 per cent to 36 per cent across the Asia-Pacific region. Similarly, Chinese export expectations slipped from 14 per cent to just 6 per cent, but across the region in the fourth quarter this was at 11 per cent, down only slightly from 12 per cent.