Thai companies' outbound investment jumps
Play
Thai companies' investment in other companies in Southeast Asia, reaching Bt175 billion during 2012-2015, accounted for 1.3 per cent of Thailand's gross domestic product, said Kasikornbank.
The ratio increased sharply rom 0.15 per cent during 2009-2011, said Chongrak Rattanapian, KBank executive vice president. He noted that Thailand's investment to GDP ratio is close to that of developed nations like Singapore.
Looking forward, the bank expects consumer products and service businesses to be the main focus of Thai companies' mergers and acquisitions (M&As). Cross-border M&As by foreign businesses in the Thai market – perceived as the regional hub – are also expected to flourish as they wish to build a production base here to tap opportunities to be offered by the Asean Economic Community.
Bright prospects are expected for the property sector where growth will remain healthy, given urbanization, implementation of many infrastructure projects nationwide, and special economic zone development. The healthcare industry tends to rise as well, due mainly to increasingly health-conscious consumers.
