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Bangkok Condo Finder Property Round Up – August 2015

Welcome to the Home Connect News. I’m Derren.

The past month has been what might be termed a ‘mixed bag’ for the business sector in Bangkok and Thailand with talk of the country having lost its competitiveness in many industries while the Stock Exchange of Thailand prepares for a raft of initial public offerings and real estate investment trusts.

Bangkok Condo Finder August ReviewWelcome to the August BCF round-up, this month we review Thailand’s view to develop its third wave of business, Thailand’s push into a Green energy world, the SET’s new round of listings and the effect that the China to Bangkok rail passage will have on the Bangkok Property Market.

Posted by Bangkok Condo Finder on Monday, August 31, 2015

In a speech made at the end of June, deputy prime minister MR Pridiyathorn Devakula stated Thailand had lost its competitiveness in many industries and this was clearly reflected in the negative export-growth figures since 2013. “We need to change,” said the deputy prime minister, who went on to add that the government “is making good progress in its plan to shift the Kingdom into the ‘third wave’ of its economic development.”

He noted the Board of Investment had restructured its policies and investment packages to promote and attract modern and high-value added industries, from aerospace to biotechnology, and nano-technology to medical devices.

Part of the problems come because Thailand is desperately short of skilled workers, especially in the automobile, energy and electronic parts sectors. A recent World Bank survey found that Thailand’s skilled labour shortage was the worst in Asean with some 39 percent of employers saying they faced a shortage of skilled workers.

The Stock Exchange of Thailand has been busily preparing itself for the advent of the Asean Economic Community, positioning itself to become the leading bourse for what is known as the Greater Mekong Subregion.

In 2014 the SET became the leading bourse in Asean in some areas. It topped the highest daily trading value at 44.5 billion baht for the third successive year, added the largest net additional shares in the MSCI Global Standard Indices with three new stocks, and the highest number of stocks added to the Dow Jones Sustainability Index, with 10 shares.

While a planned IPO by Thai Foods Group has been delayed, primarily due to what company executives are claiming are too many risk factors in both the domestic and global economic environment, the management of Banpu Power announced it was planning to launch its IPO on the SET next year, aiming to use the proceeds to expand renewable energy in both the domestic and overseas market, investing in solar, biogas, biomass and wind power.

Staying with the SET, two real estate investment trust funds‚ the Thailand Hospitality Fund and the Best Bonded Warehouse Fund announced they will offer their shares to the public during September and October. Both REITs have received the approval of Thailand’s Securities and Exchange Commission which says Thailand currently has 57 registered REIT funds, of which 40 have registered an increase in value.

At the sixth meeting of the Thailand-China Joint Committee an agreement was reached for the investment of around 300 billion baht for the construction of an 873-kilometre railway for medium speed trains.

The first phase, a 133-kilometres route from Bangkok to Kaengkoi and a 138.5-kilometres route from Kaengkoi to Nakhon Ratchasima province, is expected to start the construction in late October, taking two and a half years to complete.



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