Policies ‘must adapt’ to changes in US

This is the view of top executives at Charoen Pokphand Food (CPF) who were on a tour of the North. They called on Deputy Prime Minister Somkid Jatusripitak to respond to the upcoming changes, such as lower taxes and higher growth that Trump has promised, lest Thailand miss out on a new boom cycle.
The avian-flu outbreak in Japan and South Korea has led to Thailand tripling its chicken-meat shipments to these markets, CPF president and CEO Adirek Sripratak said yesterday.
“The bird-flu outbreak has |forced the culling of millions of chickens in affected markets,” Adirek said.
Thailand has been spared the |flu, he added, while CPF’s new |broiler farms are enclosed and |fully protected from contamina-tion.
Poultry farms in the Niigata and Aomori prefectures on Japan’s main Honshu Island were ordered by local governments to cull 330,000 chickens and ducks this week, as millions more were destroyed to prevent the flu from spreading.
Meanwhile US President-elect Trump has made a big impact on the world economy as world stock exchanges jump and the greenback currency appreciated more than 10 per cent.
CPF recently bought Bellisio, a Minneapolis-based frozen food company, for about US$1.08 billion as it strives to penetrate the North American market.
Adirek said the US market presents a huge opportunity as demand will grow with renewed growth. Bellisio is known for Italian cuisine but CPF will add Thai food to its menu.
Adirek’s upbeat view of the US is due to a pro-business Trump presidency, he said. “By promising to reduce corporate tax to 15 per cent and cutting tax on repatriated profits as well |as abolishing inheritance tax, |Trump will unlock cash that has been frozen and fire up the US economy, he said. 
“A healthy and prosperous US economy will be good for Thailand and the world,” he added. A strong wave lifts all boats, he said.
Such events and the seismic shift in financial markets affect us all and should be recognised as opportunities to be seized, said Adirek and his chief operating officer Pong Visedpaitoon.
Pong said Somkid and his |economic team could learn from these developments and spur local growth.
“Thai corporate tax at 20 per |cent will not be attractive when compared to 15 per cent in the US,” Adirek noted. The US could soon rival Asia’s financial giants such |as Hong Kong and Singapore for capital.
“Already our purchase of Bellisio is paying off,” Adirek said.
The purchase was finalised |last week with CPF having arranged payments when it was Bt35 to |the dollar. It is now Bt36 and |could be Bt37 next year, he said. |CPF made foreign exchange gains |of about 5 per cent even before |commencing its US operations in 2017.
Adirek said he was positive Trump could achieve his GDP target of 4 per cent growth next year.
His top professional team who include Carl Icahn and Wilbur Ross have said they thought a higher figure than 4 per cent was likely.
The Dow Jones Industrials Index touching a record 20,000 this week signalling optimism among New York’s financial community who had been supporters of Hillary Clinton, Trump’s rival.
“In 2016, CPF’s foreign investments for 11 acquisitions totalled Bt38 billion,” Adirek said. More acquisitions may follow next year as the firm expands its potential to serve global demand.
The company operates in 14 countries including Belgium India, Vietnam, Indonesia, Malaysia, Laos, the Philippines, Turkey and Sri Lanka.
CPF should grow by more than 12 per cent this year and by at least 10 per cent per annum for the next decade, Adirek added.
Company staff are being given a two-month bonus for the year.