by Eddie Yii | Oct 13, 2023 | News
Central Pattana Plc (CPN), a prominent player in the retail and real estate sector, best known for managing Central shopping centers, has revealed its ambitious strategy to embark on the development of five extensive mixed-use projects in different parts of Bangkok. These areas encompass the downtown, central business district (CBD) and northern Bangkok. The company intends to carry out these projects between 2023 and 2027, with an estimated total cost exceeding 100 billion baht.
These five projects are strategically distributed across various locations, with one of them, Central Park, planned to be situated within Dusit Central Park and slated for unveiling in the third quarter of 2025. In addition, there is a project neighboring the existing Central Embassy at the Wireless Road intersection, another discreetly positioned behind the Central Shopping Complex on Rama 9, and two expansive developments covering 700 rai of land in the Rangsit area and across from Magic Land in the Phahon Yothin locale. Construction work for the latter two projects has already commenced. Each of these mixed-use endeavors necessitates a minimum investment of 20 billion baht and offers an extensive space of 350,000 square meters. Central Park, a pivotal element of this five-year business plan, is poised to redefine the urban landscape of Bangkok, much like Central Park in New York or Hyde Park in London.
Wallaya Chirathivat, the president and chief executive of CPN, expressed her confidence in the company’s capacity to adapt to changing circumstances and capitalize on government policies and promotional strategies. She anticipates a significant surge in foreign tourist arrivals, with projections of 25-30 million visitors for the current year, 40 million in 2024, and an expected surpassing of 40 million by 2025. These forecasts align with a steady annual GDP growth rate of 3-4%.
Chanavat Uahwatanasakul, CPN’s chief development and commercial officer, highlighted that the Dusit Central Park project distinguishes itself in four key aspects. Firstly, it leverages the collective strengths of Central Group, Central Pattana, and Dusit Thani Group. Secondly, its prime location in the bustling CBD of Bangkok and the affluent neighborhood offers significant potential. Thirdly, the project aims to deliver unique, tailor-made experiences. Lastly, with a substantial seven-rai green space, it strives to enhance people’s quality of life. Chanavat expressed the aspiration to transform Rama 4 into a vibrant hub for a new luxury lifestyle.
Isareit Chirathivat, CPN’s head of fashion and luxury partner management, introduced Central Park as a new brand under the Central Pattana umbrella. This brand plays a pivotal role in the 46-billion-baht Dusit Central Park project, situated on a 23-rai land plot at the Silom-Rama 4 road intersection. Other components of this project include the 39-floor Dusit Thani Bangkok Hotel, expected to open in mid-2024, Central Park Offices covering 130,000 square meters, scheduled to open in the second quarter of 2025, and residential areas encompassing 50,500 square meters. Additionally, the Central Park shopping center, with a gross building area of 130,000 square meters, is set to open in the third quarter of 2025.
Nattakit Tangpoonsinthana, CPN’s chief marketing officer, acknowledged that the Israel-Hamas conflict might have a short-term impact on the retail business, but the company will closely monitor its influence on different regions. He emphasized that Middle Eastern customers typically visit Thailand during specific seasons, with the majority of the company’s customer base being weekend travelers from neighboring countries.
Lastly, according to Ms. Wallaya, the company is ready to engage in negotiations with the State Railway of Thailand for the renewal of the Central Latphrao agreement and holds an optimistic outlook regarding this renewal.
by Daryl Lum | Oct 11, 2023 | News
Chinese real estate investors who once dominated the market for luxury condos and apartments in Thailand are now scaling back their activity due to China’s economic downturn and the real estate turmoil there.
Conventional English-speaking nations such as Australia, Canada, the United Kingdom, and the United States have become more appealing to Chinese property buyers, overshadowing Thailand’s popularity.
In contrast to Thailand, Vietnam has experienced consistent interest from Chinese investors in apartment purchases, especially in major cities like Hanoi and Ho Chi Minh.
Thailand, which previously held the top spot for Chinese investors, has now slipped to fifth place, with Australia, Canada, the UK, and the US taking precedence.
Chinese buyers are increasingly acquiring homes in Australia for personal use or to secure Australian citizenship.
Over the past few years, Thailand had been a favoured choice for Chinese investors seeking residential properties. A real estate agency report revealed that Thailand was the preferred destination for Chinese buyers from 2018 to 2021. However, by 2022, Thailand had fallen to fourth place, and in the first half of 2023, it descended further to fifth.
China’s economic difficulties, encompassing issues like high youth unemployment, diminishing exports, and a real estate crisis, have raised concerns about its economic growth stalling.
Consequently, Chinese investors are becoming more cautious about ventures in Thailand, leading to prolonged deal closures. The long-term consequences will hinge on the actions of Chinese investors and how Southeast Asian nations navigate the aftermath.
by Willie Tan | Oct 3, 2023 | News
The World Bank has reduced its economic growth predictions for Thailand for both the current year and 2024 due to expectations of a decline in the country’s exports caused by a decrease in global demand. The main drivers of economic growth in Thailand are tourism and private consumption.
According to the World Bank’s East Asia and Pacific Regional Economic Outlook in October 2023, Thailand’s economic growth forecast for 2023 has been revised from 3.6% to 3.4%. Additionally, the projection for 2024 has been lowered by 0.2 percentage points. It now stands at 3.5% instead of the previous estimate of 3.7% in April.
Exports
The World Bank anticipates a 2.1% contraction in Thailand’s goods exports in 2023, measured in US dollars, primarily due to reduced demand from major advanced economies. Furthermore, economic growth in the second quarter of this year declined more than expected, reaching 1.8% on a year-on-year basis.
Political outlook
The prolonged process of forming a new government is also expected to delay both public and private investments. The GDP growth outlook for 2023 and 2024 hinges on the recovery of the tourism sector and robust private consumption. Foreign tourist arrivals are projected to return to pre-pandemic levels by the end of 2024.
The World Bank also predicts that Thailand’s economic growth will be 3.3% in 2025.
Debt and Inflation
Moreover, the bank forecasts headline inflation of 1.5% in 2023, which is lower than most emerging market economies. This is due to lower energy prices and the continued implementation of price controls. However, there are still upward risks to core inflation due to increased consumption and higher global food prices.
With the slow progress in fiscal consolidation due to extended energy subsidies, Thailand’s public debt is expected to remain above 60% of GDP until the end of 2023. The current account balance is projected to shift from a deep deficit over the past two years to a positive position in 2023.
The decrease in inflation is expected to alleviate some pressure on households. The expansion of the state welfare card program is anticipated to contribute to poverty reduction in 2023.
According to World Bank East Asia and Pacific vice-president Manuela V. Ferro, Thailand’s household debt ratio, which stands at 90.6% of GDP, is a more significant concern than public debt. Public debt is projected to be 60.2% of GDP in 2023, decreasing to 59.6% in 2024. It is expected to further decline to 59.5% in 2025.
As a result, the poverty rate will decline to 9.1% in 2023. It will continue to decrease in 2024 and 2025.
The World Bank has noted that the region’s growth remains higher than that of other emerging markets and developing economies. The East Asia Pacific region is expected to grow by 4.6% in 2023, with China’s growth projected at 5.1% in the same year.
Mr. Ferro emphasized that over the medium term, maintaining high growth in the region will necessitate reforms, particularly in the services sector. To sustain industrial competitiveness, diversify trading partners, and enhance productivity in areas such as retail, finance, education, and healthcare.
by Daryl Lum | Sep 27, 2023 | News
On Monday, Chinese tourists arriving in Bangkok were personally welcomed by the Thai prime minister as part of a new visa-free initiative aimed at revitalizing the country’s crucial tourism sector. Prime Minister Srettha Thavisin, accompanied by traditional dancers, warmly greeted visitors from Shanghai at Bangkok’s Suvarnabhumi airport, even distributing welcome gifts.
One visitor, Zhuang Pan, aged 31, expressed her surprise and joy at the reception, describing it as an excellent beginning to her trip. Jin Li, who was on her honeymoon, shared her enthusiasm for the scheme and managed to capture a photograph with Prime Minister Srettha. She mentioned that the new visa-free policy allowed her to travel without worrying, as all she needed to do was book a ticket.
Before the COVID-19 pandemic, Chinese tourists constituted the largest group of visitors to Thailand, and tourism accounted for approximately 20 percent of the country’s GDP. However, the tourism sector suffered greatly due to travel restrictions imposed during the pandemic, and its recovery has been slow, influenced by global economic challenges and safety concerns stemming from a popular Chinese thriller about a man being abducted and forced to work in a Southeast Asian online scam operation.
One visitor, Zheng Zhengzhou, aged 36, acknowledged his awareness of the safety concerns associated with Thailand, referencing the movie “No More Bets” that had unnerved many tourists. He admitted to having some safety-related concerns but still chose to visit Thailand.
Prime Minister Srettha has consistently emphasized the importance of tourist safety, highlighting that the security of visitors from the moment they set foot in Thailand until their departure is a top priority.
Chinese visitors were not only greeted by traditional dancers but also by tourism police officers who provided information about a 24-hour police hotline.
The visa-free program was launched in time for China’s “Golden Week” holiday season in October and is set to run until February 29. Srettha reported that bookings had already increased tenfold under the program, expressing confidence that it would significantly boost the economy. He concluded by stating that it marked a positive day for Thailand, and he hoped that other policies would continue to stimulate the economy.
by Daryl Lum | Aug 23, 2023 | News
Srettha Thavisin from the populist Pheu Thai party has secured the parliament’s approval to become Thailand’s next prime minister. This marks the beginning of a new coalition government and an end to weeks of uncertainty and political deadlock.
Srettha, a prominent property mogul, clinched victory with 482 votes out of 727 politicians present on Tuesday, finally putting an end to months of suspense, legal disputes, and political bargaining that had followed the May elections.
The progressive Move Forward Party, which had won the most votes in the national election, was prevented from assuming power due to opposition from conservative senators.
This vote took place shortly after the return of Thaksin Shinawatra, the billionaire figurehead of the Pheu Thai party, who had been in self-imposed exile for years.
Srettha, a newcomer to politics, is now tasked with the challenging job of forming and maintaining a potentially delicate coalition government, which will include parties with military backing, responsible for overthrowing Pheu Thai governments in coups in 2006 and 2014.
Srettha will lead an alliance of 11 parties, including two pro-military parties affiliated with the outgoing Prime Minister Prayuth Chan-ocha, who led the 2014 coup. The Move Forward Party is not part of this coalition.
Critics have labeled the new government as a betrayal of the election results, but Pheu Thai leaders argue that it is necessary to break the political deadlock and promote reconciliation.
Supporters at Pheu Thai party headquarters celebrated with dancing in red attire.
“I will give my utmost effort and work tirelessly to enhance the quality of life for the people of Thailand,” stated Srettha.
Pheu Thai excluded the Move Forward Party, citing its commitment to changing the royal defamation law as a hindrance to garnering enough support from other parties and the Senate.
Under the military-imposed constitution, both houses of parliament vote together for the prime minister, a setup designed to preserve conservative military-backed rule.
Pheu Thai disclosed that it would control eight cabinet positions and nine deputy cabinet positions. The military-backed parties, Palang Pracharath and United Thai Nation, would each receive two cabinet positions and two deputy positions. The specific ministries allocated to each party were not disclosed.
The coalition has agreed to support Pheu Thai’s agenda, which includes boosting the economy, raising the minimum wage, and ending mandatory conscription. They also plan to continue the legalization of medical cannabis and work on amending the constitution to enhance democracy in the country, while avoiding changes to the royal defamation law.
The parliamentary vote occurred shortly after the return of the divisive former Prime Minister Thaksin Shinawatra, who had been in self-imposed exile, primarily in Dubai, for years.
Thaksin’s return was an emotional moment for his supporters, as the 74-year-old billionaire had won the allegiance of millions with populist policies that focused on improving the welfare of the predominantly rural north of the country.
Thaksin and the parties aligned with him had a long-standing struggle with the military. He left Thailand 15 years ago following a 2006 coup during his second term, which triggered years of political turmoil. His sister, Yingluck Shinawatra, who led a Pheu Thai government, was ousted in 2014 by then-army chief Prayuth.
by Willie Tan | Aug 21, 2023 | News
In the April-June quarter, Thailand’s economy expanded by around 3.1%, a rise from the previous quarter’s growth of 2.7%. This upswing is attributed to the increased influx of foreign tourists, as predicted by a median survey of 21 economists.
Quarterly calculations indicate that the gross domestic product (GDP) growth, when seasonally adjusted, is projected to be approximately 1.2%. This marks a slowdown compared to the preceding quarter’s growth of 1.9%, as indicated by a smaller set of forecasts gathered between August 14 and 17 in a Reuters poll.
Although Thailand’s economy, which heavily relies on tourism, is anticipated to exhibit gradual improvement, the number of visitors remains significantly lower than the levels seen before the Covid-19 pandemic. The projection for this year suggests that Thailand might welcome around 29 million tourists, a decrease from the 40 million visitors recorded in 2019, the year before the pandemic hit.
As of August 13, the Tourism and Sports Ministry reported a total of 16.47 million foreign tourists visiting Thailand from January, with a total expenditure amounting to 690 billion baht (equivalent to US$19.48 billion).
Exports, which play a crucial role in driving growth, have been contracting since October 2022, reflecting subdued global demand, particularly from China, Thailand’s primary trading partner.
Chua Han Teng, an economist at DBS, noted that the ongoing recovery in foreign tourism, including returning visitors from China, along with resilient private consumption, were the pillars supporting the expansion of the economy. However, the decline in merchandise exports, although stabilizing, continued to impede overall growth, thus preventing a more robust improvement in the second quarter of 2023, due to the challenging global economic environment.
The growth forecast for the year shows an average of 3.7%, aligning with the estimate from the Bank of Thailand (BoT). Additionally, a separate Reuters poll indicated that growth is expected to reach 3.8% in 2024.
