The International Monetary Fund (IMF) expects Brunei Darussalam’s economy to grow 3.3 per cent this year and 3.5 per cent next year.

Growth projection five years ahead has also shown that the Sultanate’s economy forecast to be 3.1 per cent in the year 2028. This was highlighted in IMF’s annual World Economic Outlook released in Washington on Tuesday.

The forecast came a week after the ASEAN+3 Regional Economic Outlook (AREO) 2023 said the Sultanate’s gross domestic product growth is forecast to be 2.8 per cent this year and 2.6 per cent next year. The IMF said the Philippine economy was forecast to expand 6.0 per cent, Cambodia ranked equal with Vietnam, with both economies projected to grow 5.8 per cent, 5.0 per cent for Indonesia, 4.5 per cent for Malaysia, 4.0 per cent for Laos, 3.4 per cent for Thailand, 2.6 per cent for Myanmar and 1.5 per cent for Singapore.

For the overall world economy, the baseline forecast is for growth to fall from 3.4 per cent in 2022 to 2.8 per cent this year, before settling at 3.0 per cent in 2024.

Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 per cent in 2022 to 1.3 per cent in 2023.

Source: Borneo Bulletin

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The Thai Ministry of Commerce is taking urgent action to provide solutions for private sector challenges related to exports to China, as it seeks to expand Thai product shipments to the world’s second largest economy by at least 1%.

The ministry recently hosted a meeting with representatives from seven foreign trade offices and other prominent Thai private sector companies in the Chinese city of Kunming in Yunnan Province in late March.

The meeting focused on planning market expansion and investment opportunities in China, setting a target for exporting Thai products worth no less than US$34 billion, or generating revenue of over 1.2 trillion baht.

The commerce ministry also gave instructions to its commercial attaches to intensify the promotion of Thai goods through modern trade platforms, expand the market, and promote Thai cuisine. The private sector was also encouraged to take advantage of increasing opportunities in Chinese markets, such as trade fairs.

In addition, the ministry emphasized its strategy of supporting the private sector to help overcome trade obstacles in mainland China, especially during the upcoming harvest season for fruit products. It also urged the private sector to prepare for potential issues that could arise at border checkpoints.

Furthermore, activities will be implemented to penetrate the halal product market in China. This would build on the success of the three limited free trade agreements (mini FTAs) that Thailand established in major Chinese cities such as Guangzhou and Chengdu.

Source : NATIONAL NEWS BUREAU OF THAILAND

The recent launching of cross-border passenger services on the China-Laos Railway on the occasion of the most important festival for Thailand and Laos has boosted the local tourism scene as it recovers from the pandemic.

Thailand’s northeast province of Nong Khai celebrated the Songkran festival with neighboring Laos across the Mekong River since cross-border passenger services of the China-Laos Railway began on Thursday (13 Apr).

Jiranun Sakultangphaisal, an advisor to the tourism association of Nong Khai, said many tourists would stay overnight in the Thai northeast province before traveling to the Laotian capital of Vientiane - some 20 km away.

Monnipa Kovitsirikul, Chairperson of the Chamber of Commerce for Nong Khai, said she hoped that Chinese tourists who arrive in Laos would travel further to tour Nong Khai and Thailand’s wider northeast region.

Monnipa said many business sectors in Nong Khai have benefited from the operation of the China-Laos Railway, which has increased employment and brought new opportunities for the local business community. She has also seen new investment from within Thailand into Nong Khai and stepped up efforts by the Thai government to upgrade local infrastructure.

The China-Laos Railway has also provided a major transport route for Thailand to access the vast Chinese market. In the past, the transport of goods between China, Laos and Thailand had to take longer due to poor road conditions. The China-Laos Railway has cut travel time down to around 10 hours, facilitating the transport of the goods such as fruits which require speedy delivery.

For Jiranun, the tourism association advisor, the China-Laos Railway is also a road of friendship that links Thailand, China and Laos even closer by increasing connectivity and people-to-people exchanges. She said more exchanges would facilitate greater understanding, which would in turn facilitate increased cooperation.

Source : NATIONAL NEWS BUREAU OF THAILAND

APPLE Inc is in talks with suppliers to make MacBooks in Thailand as part of the company’s ongoing efforts to expand its manufacturing presence beyond China, Nikkei reported on Thursday.

Suppliers who are participating in these talks have existing manufacturing complexes in Thailand for other clients and are discussing possible assembly and production of components and modules for MacBooks, sources from three suppliers directly involved in the conversations with Apple told Nikkei.

Apple did not immediately respond to a Reuters request for comment.

It has also been mass-producing its Apple Watch in Thailand for more than a year, the Nikkei report said.

Covid-related issues made Pegatron Corp, a Taiwan-based key iPhone assembler “emphasise” its expansion in other countries, a senior executive had said last year.

Foxconn, which assembles around 70 per cent of iPhones, has also been diversifying production away from China, where strict Covid-19 restrictions disrupted its biggest iPhone plant last year.

Source : THE BUSINESS TIME

The Thai economy is expected to grow by 3.3% in 2023, according to the Asian Development Bank (ADB), while the Japan Center for Economic Research (JCER) and the Nikkei newspaper predict a growth rate of 3.7%.

According to Government Spokesperson Anucha Burapachaisri), the ADB attributes the growth to recovery of the tourism sector and private sector consumption. It forecasts a drop in headline inflation to 2.9% in 2023 from 6.1% in 2022, with inflation at 2.3% in 2024.

The JCER and Nikkei further attribute Thailand’s projected growth to ongoing recovery of the tourism sector and predict 3.7% growth in both 2023 and 2024.

Thai Prime Minister Gen Prayut Chan-o-cha expressed confidence in the economy’s continual recovery, in response to favorable evaluations from several foreign economics-related organizations.

Spokesperson Anucha added that the assessments indicate Thailand’s economy will continue its recovery from 2023 to 2024, which will positively influence foreign investors’ confidence in the country.

The prime minister views these assessments as reflecting the robustness and stability of the Thai economy.

Source : NATIONAL NEWS BUREAU OF THAILAND

 THAI consumer confidence rose for a 10th straight month in March, reaching a three-year high, boosted by a recovery in tourism and spending for the upcoming election, a survey showed on Tuesday.

“Chinese tourists are returning, creating revenue, generating economic activity and improving the business climate,” Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce (UTCC), told a briefing on a consumer survey.

The consumer index rose to 53.8 in March from 52.6 in February.

Thailand has long been a popular destination for Chinese tourists with more than 11 million visiting Thailand in 2019, nearly a third of the total.

In the first quarter, South-east Asia’s second-largest economy beat its target of 6 million foreign arrivals, recording 6.15 million visitors. The country expects to welcome up to 30 million arrivals in the full year.

As Thailand heads into elections next month, canvassing and campaigning is also generating activity.

Source : THE BUSINESS TIME

THAILAND, Vietnam, India and Cambodia have emerged as early winners this year from US moves to secure its semiconductor supply chain.

US imports of chips grew 17 per cent from last year to US$4.86 billion in February, according to US Census data, with Asia accounting for 83 per cent of that total. India saw its semiconductor shipments increase 34 times to US$152 million, while Cambodia clocked in an impressive 698 per cent growth, falling just shy of Japan at US$166 million, an amount that would be unheard of in years past.

Vietnam and Thailand, which both have much bigger slices of the chipmaking market, increased their US trade in the sector by 75 per cent and 62 per cent, respectively. Vietnam has accounted for over 10 per cent of US imports for seven straight months.

The February figures are the latest to show the US diversifying its electronics supply chain, including through moves such as Apple’s gradual shift of iPhone production out of China to places like India. Malaysia, a traditional stronghold for chip packaging, still held the lead in US imports but saw its share drop to 20 per cent of the February total.

Semiconductors are a critical smart component in everything from computers and phones to home appliances, and deteriorating relations between Washington and Beijing have forced each nation to rethink its supply strategies around them. US officials have expressed concern about their country’s overreliance on certain other nations, such as Taiwan and South Korea for the most advanced chipmaking.

Taiwan, often a flashpoint between the world’s two biggest economies, increased shipments to America by 4.3 per cent from last year and accounted for 15 per cent of its imports. BLOOMBERG

THE BUSINESS TIME

SET-listed developer Property Perfect recorded hotel revenue growth of more than four times in the first quarter of 2023 thanks to a robust recovery in the tourism sector.

            Wongsakorn Prasitvipat, managing director, said the company's hotel business under its subsidiary Grande Asset Hotels & Property recorded a surge of 321% in revenue in the first quarter of 2023, from 212 million baht in the same period last year.

            "The growth was based on the occupancy rate and average daily rate, which recovered faster than our initial expectations," he said.

            Grande Asset operates three hotels in Bangkok, comprising Hyatt Regency Bangkok Sukhumvit, The Westin Grande Sukhumvit, and Royal Orchid Sheraton Hotels & Towers.

            The company also has two hotels in Phetchaburi and Prachuap Khiri Khan: Sheraton Hua Hin Resort & Spa and Sheraton Hua Hin Pranburi Villas.

            Grande Asset aims to tally 3 billion baht in hotel revenue by the end of 2023, up from 1.8 billion in 2022 and 696 million in 2021.

            Carlos Martinez, director of research and consultancy at property consultant Knight Frank Thailand, said the Thai tourism sector in 2022 recovered to 27% of the 2019 level thanks to the country's reopening, exceeding the Asia-Pacific average of 23%.

            "The Thai hotel market in 2023 will have a positive trend because of the end of the pandemic, pent-up demand and economic growth, which is estimated at 3-4% this year," he said.

            In the first two months of 2023, the number of foreign arrivals to Thailand was 60% of the level in 2019, with a hotel occupancy rate of 72%, up greatly from 36% in the same period last year.

            Mr Martinez said the tourism industry this year would rebound to 28 million tourist arrivals, or 70% of the 2019 peak of 39.8 million tourist arrivals.

            "This could potentially benefit high-end, midscale and small hotels, driven by tour groups and meeting, incentives, conference and exhibitions travellers who may visit to attend conferences and seminars." he said.

            However, challenges for the hotel industry this year could include a shortage of staff and a potential increase in construction, operational costs and financial costs, said Mr Martinez.

Source : Bangkok Post