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5-20 January 2012
December 2011
Volume 21
No. 12
ASEAN
Moves Forward
As the second decade of the 21st century unfolds, the ASEAN region has
gained increased significance to the global economy and is setting in place
the final measures to become the world’s newest economic community. United
Nations Secretary General H.E. Ban Ki-Moon remarked that “This is the
moment of ASEAN, now is the moment for ASEAN, to step in the global role.”
The 19th ASEAN Summit Meeting, held in Indonesia at the Bali Nusa Dua
Convention Centre, discussed ASEAN community building by 2015, the year in
which the ASEAN Economic Community enters into force, and also addressed
the wider role of ASEAN in regional and global issues.
The heads of state attending the summit meeting reaffirmed their commitment
to accelerate the implementation of the ASEAN Political-Security Community,
ASEAN Economic Community and ASEAN Socio-Cultural Community.
Prime Minister Yingluck Shinawatra spoke of Thailand’s commitment to relief
and rapid recovery after the floods, and stressed the importance for ASEAN to
enhance cooperation in management of flood disasters and water resources.
Subsequently, a Statement on Cooperation in Flood Prevention, Mitigation,
Relief, Recovery and Rehabilitation, proposed by Thailand, was adopted.
Continued on P. 3
CONTENTS
Page
ASEAN Moves Forward 1
News Bites & BOI Net Applications 2
Sturdy Infrastructure Keeping
Thailand at Forefront of Business
NESDB Releases Q3 Economy
Figures
Navigating Turbulence, Sustaining
Growth
Company Spotlight: CBRE 9
OBG: The Report 2012 10
Thailand Remains Fiscally Strong 10
Thailand Restores Investor
Confidence, Tourism Strong
4
7
8
11
Thailand Economy-At-A-Glance 12

December 2011
NEWS BITES BOI NET APPLICATIONS
Proposal for the Building of
Flood Ways to Tackle the Flood
Problem in the Central Region
The building of flood ways, or water ways, has
been proposed to facilitate water drainage, as a
sustainable solution to the flood problem in the
central region of Thailand.
The proposal was discussed at a meeting of
the subcommittee on sustainable solutions
to water resources management, chaired by
Mr. Kitcha Polpars, who is also Advisor to the
Office of the Royal Development Project Board.
The subcommittee was set up by the Strategic
Committee for Water Resources Management,
chaired by the Prime Minister.
Mr. Kitcha said that apart from being used for
water drainage during the flooding season,
the proposed flood ways could also be used
as logistics routes during normal times. They
should be built in both eastern and western
parts of Bangkok. In the eastern part of the
capital, it has been suggested that the flood
ways start from Min Buri district passing through
Nong Chok district, before water is drained into
the sea.
Mr. Kitcha said that the construction of a large
dam or reservoir should also be taken into
consideration, one that would be able to store at
least 1,000 million cubic meters of water flowing
from the Yom River each year. About 3,000
million cubic meters of water flow into the Yom
River on a yearly basis.
2009
(US$ = 31.68THB)
Number of
projects
Value
2010 (Jan-Oct)
(US$ = 29.96THB)
Number of
projects
Value
2011 (Jan-Oct)
(US$ = 30.88THB)
Number of
projects
Value
Total Investment 1,591 14,122 1,196 10,243 1,467 15,696
Total Foreign Investment 866 7,451 691 5,837 828 9,124
By Sector
Agricultural Products 73 501 61 491 60 461
Minerals / Ceramics 18 834 17 865 29 700
Light Industries / Textiles 67 276 50 222 51 321
Automotive /
Metal Processing
244 1,852 181 1,118 286 3,246
Electrical / Electronics 155 1,966 133 1,883 159 1,797
Chemicals / Paper 118 729 90 588 88 938
Services 191 1,293 159 670 155 1,661
By Economy
Japan 364 3,297 284 2,381 441 4,722
Europe 123 1,215 99 1,240 125 712
Taiwan 39 117 36 123 38 200
USA 42 231 35 110 25 194
Hong Kong 26 133 20 131 26 398
Singapore 66 362 52 316 44 644
By Zone
Zone 1 241 860 206 867 221 744
Zone 2 432 4,466 340 3,367 448 6,356
Zone 3 193 2,126 145 1,603 159 2,024
Unit: US$ Million
Note: Investment projects with foreign equity participation from more than one country are
reported in the figures for both countries.
Film Makers Confident in Thailand
Foreign film makers continue to show confidence in Thailand’s
locations and production services sector by filming in provincial
destinations unaffected by the floods.
“At present, we have about eight to nine productions filming or
getting ready to start production,” said Wanasiri Morakul, Director of
Thailand Film Office, Department of Tourism.
“We know that many international film makers are presently in preproduction
for 2012 shoots and we want to assure you that Bangkok
will bounce back very quickly from this tragic situation. Please don’t
count us down and out. We are open for business as usual,” she
said.
Ms. Morakul mentioned that the “no cost” incentive offering to
film in Thailand’s national parks and government plots which are
scheduled to end next month will probably be continued into 2012.
Statistics showed that 498 movies were filmed in Thailand, earning
the country 1,040 million baht in 2011 (January - October). Most
of film production teams came from Japan, India, and European
countries.
5 – 20 January 2012
BOI Fair 2011 Organizer Office
Tel: +66 (0) 2553 8300, +66 (0) 2553 8111
ext. 8254, 8235, 8270
Fax: +66 (0) 2553 8333
Email: boifair2011@boi.go.th
Page 2

December 2011
Continued from P. 1
The prime minister expressed Thailand’s
support for ASEAN to play a proactive
role in the global community, pursuing
a “forward strategy” to deal with global
challenges more effectively. ASEAN
should rely more on its internal growth,
strengthening its economic integration,
while also enhancing its partnership with
external partners. In this connection,
the prime minister expressed a similar
view while meeting with ASEAN
Business Advisory Council (ABAC),
including the need to strengthen the
ASEAN business sector, particularly
small and medium enterprises (SMEs).
And that it was also important to move
forward on frameworks and principles
for ASEAN++ FTA with bilateral FTA
dialogue partners.
The overall success of the ASEAN
Summit and its related summits is
reflected in the nine main achievements
of the leaders representing the 18 countries of ASEAN, and
ASEAN dialogue partners in Bali, which are:
1. Concrete measures to strengthen the three pillars of ASEAN
community;
2. Strengthening the regional economic growth;
3. To assume a pivotal role in building a more efficient and
effective architecture for regional cooperation;
4. To maintain Southeast Asia regional stability and security;
5. Strengthening the role of ASEAN globally;
6. Joint efforts to strengthen the economy of East Asia (East
region);
7. Joint efforts to develop platform and real action to address
food, water, and energy security as well as climate change;
8. Joint efforts to address non-traditional security challenges:
natural disasters, terrorism, transnational crimes;
9. Joint efforts to maintain peace, security and stability and
order of East Asia region.
Another success of the summit meeting was in forging closer
ties between ASEAN and its trading partners. The 9th Summit
with India was convened with Indian Prime Minister Manmohan
Singh, and the head of states and the head of governments of
ASEAN to discuss the enhancement of cooperation.
The relationship between ASEAN and China was also
strengthened as the two signed the Protocol to Implement the
Second Package of Commitments under the Agreement of
Trade in Services of the Comprehensive Economic Co-operation
between the Governments of ASEAN Member States and the
People’s Republic of China, which is also known as the ASEAN-
China Trade in Services Agreement (AC-TIS).
According to press releases issued from the summit meeting,
“The Protocol further liberalises trade in services among the ten
ASEAN Member States and China with substantial improvement
in their level of commitments on trade in services. The Secretary-
General of ASEAN, Dr Surin Pitsuwan said that the signing of the
Protocol will further boost trade and investment between ASEAN
and China.”
Thailand’s Imports & Exports to ASEAN, 1999-2011 (Jan-Sept)
Note: 1999 is the starting year that Cambodia, Laos,
Myanmar and Vietnam became the Asean members.
Source: Bank of Thailand & Ministry of Commerce.
The AC-TIS was signed in 2007 and provided for substantial
improvement of the commitments on trade in services, providing
for progressive liberalization at successive rounds.
The ASEAN Plus Three (China, Japan and South Korea) leaders
met and emphasized the need to enhance cooperation in tackling
global financial crisis. In keeping with the general sentiments
expressed for increased cooperation, Premier Wen Jiabao of
China said ASEAN+3 countries need to take stronger measures
to enhance cooperation, increase internal growth momentum
and deepen cooperation to improve the region`s ways to defeat
global crisis. It was also reported from the summit that he also
“emphasized the need for ASEAN+3 countries to carry out
research in new areas settlement of new regional trade in local
currency and seek better way to reduce time and cost of trade
and mitigate the impact of financial crisis in the region.”
Prime Minister Yoshihiko Noda of Japan expressed his country’s
willingness to support infrastructure development in the region
and to help maintain the region`s stability. It was also reported
that Deputy Cabinet Secretary of Japan, Noriyuki Shikata, said
Japan will financially support development of infrastructure
and transportation in ASEAN. “We will give support in the form
of funding for the development of infrastructures in ASEAN.
Basically we support every program that will have positive
implications for the region.”
If it is true that the 21st century belongs to ASIA, then surely a
more integrated and economically coordinated ASEAN will be
among the driving forces in the region. Thailand, with its free
trade regime, long history and experience in operating a liberal
economy open to investors, will be the gateway for investment
into this US$ one trillion plus market of 570 million people.
Page 3

December 2011
INDUSTRY FOCUS
Sturdy
Infrastructure
Keeping
Thailand at
Forefront of
Business
Thailand’s well-developed infrastructure acts as the strong
shoulders carrying the country forward in the 21st century. For
industries from agriculture to automotive, the facilities are in
place to ensure smooth-running business operations.
The sturdy infrastructure remains a key reason that Thailand
is the world’s No. 1 exporter of cassava products and natural
rubber, the 12th biggest carmaker, and a leading production hub
in many other vibrant sectors such as petrochemicals, alternative
energy, machinery and electronics.
Reliable power, communications and transport are why many
of the world’s top companies, from Baxter to Nestle to Toyota,
continue seeing Thailand as an essential base.
Thailand offers a stable and dependable electricity-generating
system that provides power at reasonable prices to citizens and
industrialists. To satisfy local society’s ever-increasing demand
for electricity, the government is pushing forward with a power
development plan that sets goals through 2030. The emphasis
is on electricity generation with greater efficiency, decreased
reliance on imported fossil fuels, increased use of technologies
for renewable and alternative energy, and reduced impact on
the environment. Target national capacity by 2030 is 65,547
MW. This makes Thailand’s energy sector ripe with investment
opportunities in areas such as biofuel, solar, wind, waste and
water power.
The Electricity Generating Authority of Thailand is the state
operator of the industry and the Ministry of Energy is the
governing body.
Keeping business transactions swift and reliable, Thailand’s
telecommunication services are at an international standard.
Office and residential fixed telephone lines, mobile phones and
Internet are abundant in local society. The Bangkok metro area
is served by two fixed-line operators: the state-run Telephone
Organization of Thailand (TOT) and the private firm True Corp.,
both of which install phones quickly. TOT and TT&T, a private
company, handle locations outside the capital. The nation’s fixedline
network has a capacity of over 8 million lines.
The international telecommunications infrastructure, including
gateway, satellite and submarine cable connections, is owned
by state-run CAT Telecom. Reaching virtually every country,
international calls are handled by the Communications Authority
of Thailand.
Page 4

December 2011
TOT’s network of more than 2 million telephone lines features
sophisticated digital switching and long-distance equipment.
Besides basic coverage, nationwide value-added services
range from telefax, cellular and on-line data to radio telephone,
videotext and ISDN.
In recent years, mobile phone ownership has soared to 98% of
the Thai population. The country now has five times as many
cellular phones as landlines. Key players in the mobile sector
include AIS, DTAC, True Move, Hutch, DPC and Thai Mobile.
Interconnection charge agreements between mobile phone
operators guarantee smooth cross-network calling for users.
Internet service is available throughout Thailand, with the
exception of some remote villages where satellite dishes can
fill in. Broadband is branching out to most places in the country.
Among the 20 companies providing the service are CS Loxinfo,
INET, ISSP, Ji-Net, KSC, 3BB Broadband, Pacific, Samarts, TOT
and True. Out of Thailand’s 20 million Internet users, 6.7 million
are on Facebook and 450,000 use Twitter. Computer penetration
stands at 29.3 per 100 inhabitants.
Elevating Thailand’s telecommunications industry to the next
level, in the fourth quarter of 2011 the country launched its first
3G wireless services. Development of the young
3G framework will diversity information services
and help smartphone consumers better enjoy
online entertainment.
A network of world-class ports keeps Thailand ahead of competing
production centers in Asia. Positioned along the country’s 3,219
kilometers of coastline, the eight international deep-sea ports
are in Bangkok, Laem Chabang, Map Ta Phut, Ranong, Phuket,
Songkhla, Sattahip and Sriracha.
Development and management of deep-sea ports is carried
out by the Port Authority of Thailand. The agency has launched
projects to expand port capacity and enhance services for cargobearing
vessels. Under one innovative measure commenced in
2011, radio frequency identification (RFID) technology is used
for real-time transfers of electronic documents and e-forms to
the authority. This is reducing the time involved for importing and
exporting processes.
Regional river ports in Chiangrai and Ranong provinces also
facilitate trade throughout Thailand’s 4,000 kilometers of inland
waterways and with bordering countries. For even better logistics,
the Transport Ministry’s Marine Department has likewise set
forward new projects.
The country’s road network, which follows left-hand traffic, has
expanded to 390,026 kilometers and counting. Some 98% of this
is paved, either by concrete or asphalt. Municipal thoroughfares
Regional Transport Center
With 37 commercial airports, Thailand has a
thriving aviation industry for business and leisure
travel. There are six international airports, 27
domestic facilities and three private airports,
besides one naval facility. Efficient air travel
in and out of the country helps the business
community stay profitable. International
services are provided by many carriers, with
flights to most countries. Domestic services are
available to all regions of Thailand. Overseeing
air travel in the country, the state-run Airports of
Thailand Plc is under supervision of the Ministry
of Transportation.
The country’s largest commercial facility,
Suvarnabhumi International Airport plays a big
role in facilitating Thailand’s role as a regional
aviation hub. Opened in 2006, the facility near
Bangkok now accommodates over 100 flights
per hour. When completed by 2019, expansion
projects will boost Suvarnabhumi’s annual
capacity to more than 100 million passengers.
Located off the beautiful southwest coast of
the country, Phuket International Airport ranks
second in terms of passenger volume. Its
main draw are the beach resorts of Phuket,
Thailand’s biggest island. Chiang Mai, known
as the gateway to scenic northern Thailand, is
among other cities with international airports.
37 Commercial Airports,
Including 6 International Airports
Over 50 Industrial Estates,
Zones and Parks
Continued on P. 6
Page 5

December 2011
Continued from P.5
account for two-thirds of the system, with national highways and
motorways at 13% and rural roads comprising 10%. Even more
intercity motorways are being constructed to shorten driving
time.
with the aboveground Skytrain and underground MRT commuter
systems. Bangkok also now offers businessmen and other
travelers the Airport Rail Link, a new line for rapid transit from
downtown to Suvarnabhumi International Airport.
Making land transport of goods more convenient, new highways
throughout Thailand will become part of the Greater Mekong
area’s East-West Economic Corridor connecting the South China
Sea with the Bay of Bengal, North-South Economic Corridor
linking Singapore and Kunming, and Southern Coastal Economic
Corridor from Thailand to Cambodia and Vietnam.
Thailand and the five other countries that comprise the Greater
Mekong Subregion (Cambodia, Laos, Myanmar, Vietnam and
China) are also looking at completion of six more economic
transport corridors by 2017. Together the many corridors
represent several thousand kilometers of linked commerce.
Such interconnection bolsters Thailand’s competitiveness as
a regional hub for production and trade with the single-market
ASEAN Economic Community taking shape by 2015.
Extensive Rail System
A vital part of the transportation chain, Thailand’s far-reaching
rail system is another competitive advantage for the country.
The rail network spans 4,346 kilometers. Single tracks account
for 93%, double tracks 4.3% and triple tracks 3%. Domestic rail
transport has a deep history, with the Royal State Railways of
Siam established in 1890. Today the State Railway of Thailand,
under the Ministry of Transportation and Communications, is
responsible for building,
operating, and maintaining
the country’s tracks.
In Bangkok, the country’s
financial capital and seat
of government, getting
around is super-efficient
Targeting 2025, a master plan for high-speed rail development
has been hammered out by the government. This involves 3,039
kilometers of tracks and speeds ranging from 120 to 250 kph,
compared with current rail travel of between 60 and 80 kph.
The high-speed trains will enable linkage to tourism locations,
business destinations and satellite cities to become even more
expedient.
From a Greater Mekong Subregion perspective, planners are
also considering the best practices for connecting railways
between neighboring countries to achieve increased prosperity
through integration.
Thailand’s international-standard water supply is yet another key
part of the country’s well-developed infrastructure. Resources
include 3,000 dams, 25 river basins and annual rainfall of
between 1,200 and 2,700 millimeters. The water supply is more
than sufficient for electricity generation, irrigation, and residential
and industrial applications.
To encourage more facilities of all types, in mid-November 2011
the government approved tax breaks for state enterprises that
establish infrastructure funds. Such investments would bolster
the country’s telecommunications, mass transit, highways,
airports, seaports, power plants and water supply, according
to the Ministry of Finance.
Besides fortifying these
networks, use of the
funds will also stimulate
Thailand’s overall economic
development.
Easy and Improving Transport
Rail: 4,346 km rail links to Malaysia, Singapore;
Bangkok Light Rail expansion plan for 137 km 2006-2012
Transnational RR linking China and SE Asia, covering 615 km at 200km/hr
Page 6

December 2011
NESDB
Releases Q3 Economy Figures
The National Economic
and Social Development
Board released its report
Economic Outlook, Thai
Economic Performance
in Q3 and Outlook for
2011 and 2012. There
is no small amount of
interest in the report,
which is the first to be
issued that will reflect
the negative affect of the
floods that hit the region,
impacting Thailand, as
well as Cambodia and
Vietnam.
Economic growth for
the third quarter of this
year will come in at 3.5
percent, which is up
from 2.7 percent in the
previous quarter, and with growth of 3.1 percent for the first
nine months of the year. Exports grew by 27.3 percent during
the quarter. The leading exports for the quarter were electrical
appliances, automobile and plastic products which grew by 14.1,
10.8, and 30.6 percent respectively.
“The major export markets continued to expand, especially China
(62.8 percent), EU (25.5 percent), ASEAN (34.7 percent), Japan
(21.0 percent) and Australia (10.8 percent).”
After contracting in Q2, the manufacturing sector grew by
3.1 percent as those industries that had been affected by the
earthquake and tsunami in Japan began to recover. “These
industries include automobile, hard disk drive and rubber and
plastic products which expanded by 14.3, 4.3 and 9.2 percent
respectively.”
Private sector investment in Q3 also registered expansion 0f
9.1 percent, with increases in machinery and equipment, and
construction investment which grew by 10.1 and 6.1 percent
respectively.
The flooding that began at the end of the quarter has negatively
affected Thailand’s economic growth in many areas, including
the flooding that affected industrial estates which were the main
production base and suppliers of raw material and parts for
automobile, electronics, textile, shoes, food and beverages, and
rubber and plastic products.
Likewise, although most Thailand and its tourist destinations
remained dry, travel warnings issued by foreign governments has
temporarily affected the tourism industry. The previous estimate
for inbound tourists has been reduced from 19.5 million to 18.8
million persons.
Consequently, the economic growth forecast 2011, which had
previously been set at 3.5 to 4 percent is now lowered to 1.5
percent, with exports at
17.2 percent growth. This
is however a temporary
setback as the economy
is seen rebounding to
between 4.5 and 5.5
percent in 2012. The
driving forces behind
the 2012 economic
growth will continue to
be a combination of both
domestic and global
demand, with exports
forecast to grow next
year by 19 percent.
The NESDB sees the
restoration measures,
which include financial
and tax subsidy
schemes, now being put
into place as having a
positive impact of economic growth in the manufacturing, service
and agricultural sectors. The creation of new money supply is
considered to be a positive force for increasing domestic demand
and private investment, particularly in machinery or in repair of
machinery.
“NESDB forecasts that in 2012 (i) the headline inflation rate will be
in the range of 3.5 - 4.0 percent; (ii) household consumption will
expand by 4.4 percent; (iii) investment will grow by 10.3 percent;
(iv) exports in terms of US dollar will expand by 19.0 percent
and; (v) current account surplus will register approximately 1.2
of GDP.”
It is expected that the economic performance in 2012 will be
much improved in the second quarter of the year, as consumer
and business confidence improves. Moreover, NESDB points out
that production will have to be accelerated to replace depleted
inventories. Expansion will be high during the second half of the
year, in part because “(i) an increase in farm income induced by
higher major crop production and prices, and (ii)an acceleration
in automobile purchase in the fourth quarter before the tax
refunds for first car buyers scheme ends.”
Among the factors supporting an economic expansion during
2012 will be the government measures in response to the flood;
expansion of the Asian economy, which the IMF sees at 6.6
percent; and increased household income. According to the
Survey, household consumption will expand by 4.4 percent and
government expenditures will rise by 2.0 percent.
It is clear that although the severe floods will have a shortterm
impact on the economy, looking out over the next several
quarters will see continued economic recovery and expansion,
which is a testament to the underlying strength and resiliency of
Thailand’s infrastructure and its economy.
Page 7

December 2011
Navigating Turbulence,
Sustaining Growth
The World Bank East Asia and Pacific Update
2011, Navigating Turbulence, Sustaining
Growth, is forecasting economic growth in
the region remaining strong over the first
half of the year, although moderating as a
consequence of weakening external demand.
“The global economic malaise has led
policymakers to rethink their policies during
the last six months. Fighting inflation and
dealing with excess capital inflows that drove
currency appreciation was a key priority
before. Now the emphasis is on supporting
growth.”
This year, the conclusion of fiscal stimulus
plans in the region, along with tighter monetary
policy, has slowed growth in developing East
Asia. Thailand is experiencing a decline in its
economic growth due to the massive flooding
that hit the country, but the World Bank sees
reconstruction in 2012 contributing to its
economic growth. “In Thailand, widespread
flooding has reached Bangkok and surrounding provinces, which
together produce close to 40 percent of Thailand’s GDP. As a
result of the flood, GDP growth in 2011 was revised down from an
earlier forecast of 3.4 percent to 2.4 percent. The damages are
estimated to be up to four percent of GDP, including two percent
in industrial estates that are part of the regional supply chains,
0.4 percent in agriculture, and 0.6 percent in retail industry
and tourism.” This contrasts with the lower growth figure just
released by NESDB.
The Bank does indicate that subsequent rehabilitation and
reconstruction following the floods will be among the positive
factors for economic growth, including the fact that inventories
need to be restocked, and household consumption increases,
among others.
The contraction that is experienced in Thailand’s manufacturing
employment was due to a shift of unskilled workers toward the
agriculture, which is experiencing high growth. The Report
notes that at the beginning of the fourth quarter of the year
the government “reintroduced a mortgage scheme, mostly for
rice farmers….The mortgage scheme provides for storage and
allows farmers to use their produce as collateral for loans from
the Bank for Agriculture and Agricultural Cooperatives (BAAC). “
The Report does note the importance of increasing productivity
and moving towards higher value-added production as part
of the growth strategy. This is certainly in line with Thailand’s
commitment to construct a value-added creative economy.
“Governments can take this opportunity to refocus on reforms
that will enhance growth in the medium- and long- term. Higher
investments in infrastructure, education and social security
systems can help countries increase productivity and move
toward higher value added production,” according to lead
author of the report World Bank Senior Economist Ekaterina
Vostroknutova.
Investors should be encouraged that the report does note that
the quality of infrastructure in Thailand is better than in most
of its neighbors. Ensuring that the quality of infrastructure in
all regions of the country is undertaken, as well as putting in
place a high quality information technology infrastructure, is
also recommended as a priority for Thailand, and in fact this is
something the government is committed to undertaking.
The new government in Thailand is set to implement policies
that will likely boost domestic demand. The report highlights four
policies that it considers to be the most prominent will be to:
(1) increase the minimum wage to 300 baht (US$10) per day;
(2) increase the minimum wage for holders of bachelor degrees
to 15,000 baht (US$500) per month;
(3) lower corporate income taxes from 30 to 23 percent; and
(4) re-introduce a rice mortgage policy that effectively sets an
intervention price between 40 and 60 percent above current
market prices.
Overall, the East Asia and Pacific Update 2011 sees risks to
the downside, as shocks to the global economy could impact
Thailand’s export economy. Nevertheless, a growth of 4 percent
is seen for Thailand’s GDP in 2012, along with a 3.5 percent
increase in the export of goods.
It seems evident from the report that while there are risks from
the global economy, Thailand is steady enough to emerge in
2012 back on the path of economic growth. Investors who look
beyond the quarter will no doubt continue to view Thailand as
their prime location for business.
Page 8

December 2011
COMPANY SPOTLIGHT
CBRE Says
No Long-Term Impact for
Property Market After Flooding
The recent flood crisis in Thailand will not
have a long-term impact on the country’s
property market. This is according to
research and analysis by the consulting
firm CB Richard Ellis (Thailand). In reports
released between 3 and 20 November 2011,
the company describes prospects in Thailand, as well as across
the Asia-Pacific region, as generally upbeat.
Unusually heavy typhoons and monsoon rains from July to
October this year created a perfect storm that caused one of
the worst floods ever seen in Thailand. Numerous communities
and factories were inundated. The historic flood receded in early
November as Thailand got
back to work.
While the flooding affected
property sectors across the
board, including residential
and industrial, the impact
varied from sector to
sector. “The government’s
post-flood rehabilitation
program will be essential to
the recovery of all sectors
of the property market and
will have a direct impact
on the overall economic
outlook and the Kingdom’s
direction for the coming
year,” said James Pitchon,
executive director of CBRE
Research and CBRE
Consulting, Thailand.
Construction costs will likely increase in the wake of the flooding,
CBRE reported. In another trend, when evaluating property,
buyers will be looking for more anti-flood features. “Housing
developers need to ensure that both estate infrastructure and
individual houses incorporate flood protection features when
launching new projects,” the consultancy said.
Office property was the least affected sector during the flooding.
In fact, demand for office space in Thailand is rising. Direct
connection to mass-transit stations will be highly popular,
particularly as these systems continued to operate while some
roads experienced flooding.
“The fundamentals of the office market remain strong,” CBRE
said.
In retail, companies that sell white goods
such as refrigerators, washing machines
and other home-improvement products will
experience a sales boom during post-flood
restoration.
CBRE research also shows that retail rents in Thailand continue
to be less expensive than at other major Asian cities. For example,
the premium rent at shopping malls in Bangkok is US$107.30 psf/
annum, compared with US$590.20 in Guangzhou, US$454.90 in
Singapore and US$402.20 in Kuala Lumpur.
Asia-Pacific Market View
Looking at the Asia-Pacific
as a whole, the consultancy
sees the region’s overall
market fundamentals
as healthy. While some
segments are down right
now, mostly there is
optimism for growth.
Although the Asia-Pacific is
one of the world’s liveliest
centers of economic
growth, CBRE said
industrial production in
the region will experience
only a moderate uptick in
the near term. The cooling
off stems from sluggish
consumer demand in the
West as well as the output
disruption in Thailand due
to the flooding. Strong currencies and high production costs also
contribute to the subdued near-term view.
Logistics rental in the region accelerated by 2.0% in Q3 2011
compared with the previous quarter, according to an index
compiled by CBRE. Demand for logistics property rental is being
driven by firms that emphasize national-level distribution. As
for sales, commercial real estate shot up 36% in Q3 versus the
second quarter.
CBRE said retail sales growth was solid in most parts of the
region during the third quarter, with a 7.6% y-o-y increase
recorded in September (excluding Japan). Even with uncertainty
over the economic outlook in the United States and Europe, the
consultancy regards near-term prospects for the Asia-Pacific as
positive.
Continued on P. 10
Page 9

December 2011
Continued from P.9
CB Richard Ellis (Thailand) is a highly recognized consulting
firm in the property market. Besides handling sales and rental
of residential, office and resort properties across Thailand, the
company is a leading agent in advising investors on industrial
facilities such as warehouses and factories. It offers global
corporate services as well. The CBRE Research Center’s
reports and market studies help potential and existing investors
in Thailand understand future trends.
OBG: The Report 2012
The Oxford Business Group, in partnership with the accounting
and advisory firm BDO, and with the Thailand Board of
Investment, are in the process of preparing the third annual
report on Thailand’s economy: The Report, Thailand 2012. The
report will explore the economy’s resilience as manufacturing
and tourism lead growth, and include such key issues as the tax
environment in Thailand, and how changes in legislation and
regulations affect investors.
“Thailand has long enjoyed a reputation as a choice destination
among business leaders and its hallmark resilient economy has
helped it to maintain investor confidence during a challenging
period”, said OBG Country Director Anne Schlagel. “I look
forward to documenting Thailand’s latest efforts to drive growth
in key sectors such as manufacturing and tourism as the country
gears up to play an active part in the expected global recovery.”
“Oxford Business Group is known to be a market leader on
emerging economies and its previous reports on Thailand have
proved to be a valuable source of reference to our clients,” says
Senior Partner at BDO Paul Ashburn.
The Thailand 2012 report “will be a vital guide to the many facets
of the country, including macroeconomics, infrastructure, banking
and other sectoral developments. It will include a detailed,
sector-by-sector guide for foreign investors, alongside a wide
range of interviews with the most prominent political, economic
and business leaders.”
Thailand Remains
Fiscally Strong
& Poor’s also affirmed the ‘axAA/axA-1’ ASEAN scale rating
on Thailand. Thailand has a strong external position and light
net government indebtedness. The country has enough fiscal
flexibility to deal with the damage by recent floods.”
Standard & Poor’s Ratings Services “affirmed its ‘BBB+/A-2’
foreign currency and ‘A-/A-2’ local currency sovereign credit
ratings on the Kingdom of Thailand. The outlook on both foreign
and local currency long-term ratings remains stable. Standard
S&P credit analyst Takahira Ogawa states that “Recent floods,
which hit Thailand’s industrial estates and a part of its capital,
Bangkok, will increase government expenditure for necessary
infrastructure investments and financial support for the flood
casualties,” adding that “However, we believe the country’s
relatively strong and flexible fiscal position could absorb this
fiscal burden.”
• Thailand has a strong external position and light net government indebtedness.
• The country has enough fiscal flexibility to deal with the damage by recent floods.
• We are affirming our ‘BBB+/A-2’ foreign currency and ‘A-/A-2’ local currency sovereign credit ratings on Thailand.
• The stable outlook reflects our view that the real economy and the government’s fiscal position have had little damage
from the political environment.
Page 10

December 2011
Thailand Restores Investor
Confidence, Tourism Strong
The floods have receded from Bangkok and
much of the surrounding area, causing as
much as 1.4 trillion baht in damage according
to an assessment made by the World Bank,
although half of that amount is deemed to
be lost opportunities. With the protection of
Bangkok successfully accomplished, the next
task of the government is to turn its attention
to renewing investor confidence in Thailand
and in reinvigorating the tourism sector.
On 28 November, Deputy Prime Minister and
Commerce Minister Kittiratt Na-Ranong visited
Japan to speak with investors there about just
what measures are being taken in post-flood
Thailand, both in terms of restoration and in
overall water management. The minister was
accompanied by Chairman of the Strategic
Committee for Reconstruction and Future
Development Dr. Virabongsa Ramangkula.
Meetings with chambers of commerce will
also be held in Bangkok to better inform
people about the government’s plans and
commitment to flood prevention.
Among the measures discussed was the decision to establish
the Office of the Strategic Committee for Water Resources
Management, as one important step in preventing future flooding
in Thailand. This Office will coordinate related plans, guidelines,
measures and budget allocations, and will serve under the
Secretariat of the Prime Minister.
In this regard, the Japan International Cooperation Agency
(JICA) was invited to serve as an advisor to the committee for
long-term water management, and will provide the kingdom
with technical assistance. Likewise, the Japan External Trade
Organization (Jetro) had recently informed Dr. Virabongsa that
Japan would not be relocating its production base from Thailand,
which it said had a good infrastructure and labor force.
Measures that will be considered in flood prevention activities
include city planning and the prohibition of construction that
might block the flow of water. A better system for preparedness
also needed to be put in place.
The Flood Recovery and Restoration Committee on Infrastructure
has put in a request for nearly 12.98 billion baht to restore floodhit
facilities. Of this amount, 5.2 billion would be for water source
rehabilitation; 2.66 billion baht to improve tracks, railway stations
and signal systems; 1.59 billion baht to renovate historical sites;
1.5 billion baht to dredge and maintain seven rivers; 1.46 billion
baht to repair educational institutions, and the remainder to go
for infrastructure repair in public health, land transport and to
the Aeronautical Radio of Thailand Company. The Cabinet had
earlier approved 19.9 billion baht for the repair of damaged
infrastructure, and together with the new request the total would
rise to 30.9 billion baht.
To boost the tourism sector, the Governor of the Tourism Authority
of Thailand (TAT) has said that a new “Beautiful Thailand”
campaign is being launched to restore confidence. This
campaign should help the country to revive tourism during the
Christmas to Chinese New Year season. Although the flooding
was at its worst during the tourist high-season of October and
November, growth in this sector is nevertheless expected to be
positive for the year.
Early in 2011, predicted tourist arrivals had been set at 15 to 16
million people, and later revised to 19 million. As of October,
there were 15.8 million international arrivals, representing an
increase of 25 percent over the same period last year.
The recently released HSBC Expat Explorer survey shows that
Thailand is the number one expat destination when compared
globally across economic and lifestyle factors. The Kingdom beat
31 other countries, coming in top for health care, accommodation
and work environment.
Thailand has also won another golf tourism award, with the
International Association of Golf Tourism Operators (IAGTO)
naming the resort city of Pattaya as Asia and Australasia’s best
golf destination for 2012.
Given its strong foundation, great work ethic and resiliency, it is
clear that within a short period of time Thailand will rebound and
maintain its attractiveness as one of Asia’s best destinations for
investors and for quality of life.
Page 11

December 2011
THAILAND ECONOMY-AT-A-GLANCE
Facts about Thailand
Population (2009)
67 million
ASEAN Population
584 million
Literacy Rate 96%
Minimum Wage (1 Jan 11, Bangkok)
215 Baht/day
Exchange Rate Trends
GDP (2010)
US$ 317.8 billion
GDP per Capita (2010) US$ 4,720.6
GDP Growth (2010) 7.8%
GDP Growth (2011, projected) 1.5%
Export Growth (2010) 28.5%
Export Growth (2011, projected) 17.2%
Trade Balance (2010)
US$ 14 billion
Current Account Balance (2010)
US$ 14.8 billion
International Reserves (2010)
US$ 172.13 billion
Capacity Utilization (2010) 63.42%
Manufacturing Production Index (2010) 190.1
Customer Price Index (October 2011) 113.07
(2007 = 100)
Source: Bank of Thailand
SET Monthly Closing Values
Corporate Income Tax 10-30%
Withholding Tax 10-15%
Value Added Tax 7%
October Average Exchange Rates
US$1 = 30.89 baht
€1 = 42.28 baht
£1 = 48.59 baht
100 ¥ = 40.26 baht
CNY1 = 4.86 baht
Top 10 Exports 2011 (Jan-Oct)
Product
1 Automatic data processing machines
and accessories
Share
Value
(US$ bn)
7.91 15.37
2 Motor cars, parts and accessories 7.83 15.33
3 Rubber 5.68 11.31
4 Precious stones and jewellery 5.50 10.72
5 Refine fuels 3.95 7.70
6 Polymers of ethylene, propylene, etc 3.77 7.41
in primary forms
7 Electronic integrated circuits 3.64 7.08
8 Chemical products 3.48 6.97
9 Rubber products 3.47 6.96
10 Rice 2.88 5.63
Total 196.77
Source: Stock Exchange of Thailand
Industrial Capacity Utilization (%)
Source: Bank of Thailand
International Reserves / Short-term Debt (%)
BOI Fair 2011
Source: Ministry of Commerce
Head Office, Office of the Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900, Thailand
Tel: +66 (0) 2553 8111 Fax: +66 (0) 2553 8222 Website: www.boi.go.th E-mail: head@boi.go.th
BEIJING
Thailand Board of Investment,
Beijing Office
Royal Thai Embassy
No.40 Guang Hua Road,
Beijing, 100600, P.R.China
Tel: (86-10) 6532-4510
Fax: (86-10) 6532-1620
E-mail: beijing@boi.go.th
FRANKFURT
Thailand Board of Investment,
Frankfurt Office
Bethmannstr. 58, 5.OG
60311 Frankfurt am Main
Federal Republic of Germany
Tel: (49 69) 92 91 230
Fax: (49 69) 92 91 2320
E-mail: fra@boi.go.th
GUANGZHOU
Thailand Board of Investment,
Guangzhou Office
Investment Promotion Section,
Royal Thai Consulate-General,
Guangzhou, Room 1216-1218,
Garden Tower, 368 Huanshi
Dong Road, Guangzhou,
510064 P.R.C.
Tel: (86-20) 833-38999
Ext: 1216 to 18
(86-20) 838-77770
Fax: (86-20) 838-72700
E-mail: guangzhou@boi.go.th
LOS ANGELES
Thailand Board of Investment,
Los Angeles Office
Royal Thai Consulate-General
611 North Larchmont Boulevard,
3rd Floor, Los Angeles, CA
90004 USA
Tel: (1-323) 960 1199
Fax: (1-323) 960 1190
E-mail: boila@boi.go.th
NEW YORK
Thailand Board of Investment,
New York Office
61 Broadway, Suite 2810
New York, NY 10006 U.S.A.
Tel: (1-212) 422 9009
Fax: (1-212) 422 9119
E-mail: nyc@boi.go.th
Source: Bank of Thailand
OSAKA
Thailand Board of Investment,
Osaka Office
Royal Thai Consulate-General,
Osaka, Bangkok Bank Bldg.
7th Floor , 1-9-16 Kyutaro-
Machi, Chuo-Ku, Osaka
541-0056 Japan
Tel: (81-6) 6271-1395
Fax: (81-6) 6271-1394
E-mail: osaka@boi.go.th
BOI
PARIS
Thailand Board of Investment,
Paris Office
Ambassade Royale de
Thailande, 8, Rue Greuze
75116 Paris, France
Tel: (33 1) 5690 2600
(33 1) 5690 2601
Fax: (33 1) 5690 2602
E-mail: par@boi.go.th
SEOUL
Thailand Board of Investment,
Seoul Office
#1804, 18th Floor, Coryo
Daeyungak Tower, 25-5,
Chungmuro 1-ga, Jung-gu,
Seoul, 100-706, Korea
Tel: (822) 319-9998
Fax: (822) 319-9997
E-mail: seoul@boi.go.th
SHANGHAI
Thailand Board of Investment,
Shanghai Office
Royal Thai Consulate-General
15 F., Crystal Century Tower,
567 Weihai Road, Shanghai,
200041, P.R.China
Tel: (86-21) 6288-9728,
(86-21) 6288-9729
Fax: (86-21) 6288-9730
E-mail: shanghai@boi.go.th
STOCKHOLM
Thailand Board of Investment,
Stockholm Office
Stureplan 4C 4th Floor
114 35 Stockholm, Sweden
Tel: +46 (0)8 463 1158
+46 (0)8 463 1172
+46 (0)8 463 1174 to 75
Fax: +46 (0)8 463 1160
E-mail: stockholm@boi.go.th
SYDNEY
Thailand Board of Investment,
Sydney Office
Suite 101, Level 1, 234
George Street, NSW 2000,
Australia
Tel: (+61) 2 9252 4884
Fax: (+61) 2 9252 2883
E-mail: sydney@boi.go.th
TAIPEI
Thailand Board of Investment,
Taipei Office
Taipei World Trade Center
3rd Floor, Room 3E39-40,
No.5, Xin-Yi Road, Sec.5
Taipei 110, Taiwan, R.O.C.
Tel: (886) 2-23456663
Fax: (886) 2-23459223
E-mail: taipei@boi.go.th
TOKYO
Thailand Board of Investment,
Tokyo Office
Royal Thai Embassy
8th Fl., Fukuda Building West,
2-11-3 Akasaka, Minato-ku,
Tokyo 107-0052 Japan
Tel: (81 3) 3582 1806
Fax: (81 3) 3589 5176
E-mail: tyo@boi.go.th
Page 12