Domestic demand to boost 2019 economy: Krungsri Research

Private consumption and private investment will be the major catalyst for growth, helping to offset the slowdown in external demand, they say. The expectation of clearer economic policies after Thailand’s general election should help build confidence among domestic and foreign investors, the report predicts.
Somprawin Manprasert, the Krungsri head of research and chief economist, said, “Domestic spending will play a more important role in driving the economy next year. Private consumption is likely to enter the upcycle after the capacity utilisation rate of several industries hit multi-year highs. 
Driven by the acceleration of public-private partnerships (PPP fast track), the investment in infrastructure mega projects is expected to reach Bt281 billion in 2019 from Bt98 billion in 2018.
“In addition, Thailand will benefit from an increase in foreign direct investments, partly due to the relocation to avoid negative impact from the US-China trade war,” Somprawin said.
Private consumption is expected to continue its growth momentum, said Somprawin, driven by a rise in both farm and non-farm incomes, and an increase in non-farm employment. In addition, accelerating investment in mega projects, the increasing budget for welfare cardholders and several supporting projects to help specific groups including farmers, the aged and SMEs, will encourage domestic consumption and investment.
After strong growth during the past two consecutive years, Krungsri Research predicts the growth of Thai exports is likely to be moderate at 4.5 per cent in 2019, reflecting the slowdown in the global economy and the impacts of trade protectionism between the US and China.
However, Thailand could benefit from trade with high-growth countries in Asia.
Thai tourism is also likely to recover from late 2018 after the government exempted visa-on-arrival fees for tourists from 21 countries including China and India.
Moreover, the sector is expected to benefit from the rising middle class in Asia and the capacity expansion of major airports to serve the rising number of tourists.

BGrimm Power prepares for further expansion

BGrimm Power Plc (BGRIM)’s solar power development projects have made headway according to plans to consolidate its capacity build-up.
Three out of the seven ground-mounted solar farms sponsored by BGRIM for government agencies and agricultural cooperatives in Thailand, with a total installed capacity of 10.8 megawatts, were brought on line commercially and synchronised with the Provincial Electricity Authority (PEA)’s grid during December 3 to 25.
The remaining four solar farms, with a combined capacity of 20 MWs, were successfully synchronised with the Metropolitan Electricity Authority (MEA)’s system and due for commercial delivery on December 28.
With the latest addition from those seven solar farms, the SET-listed firm closed 2018 with combined capacity equity of 2,076 MWs, up by 26 per cent from the previous year, and strengthening BGRIM’s position as one of Thailand’s leading private power producers, BGRIM president Preeyanart Soontornwata said. 
Meanwhile, BGRIM’s ongoing solar energy projects in Vietnam, with a total installed capacity of 677 MWs, have progressed satisfactorily in construction, said Preeyanart.
The Dau Tieng 1 and Dau Tieng 2 solar plants in Tay Ninh, in Vietnam’s southwest, and whose combined capacity of 420 MWs will make them the largest facility of its kind in Southeast Asia, have advanced by 42 per cent.
The 257-MW solar photovoltaic power project in Phu Yen province, on the south-central coast of Vietnam, is 36 per cent completed, with commercial start-up in mid-2019 now confirmed.
In view of the start-up of various new power generation projects in 2019, including the solar farms in Vietnam, the Nam Che hydropower scheme in Laos and the waste-to-energy scheme, BGRIM’s capacity portfolio may be more notable with 2,737 MW, a 34 per cent jump from 2018.