Thailand remains the sick man of south east asia

Populists and the military voted in Srettha Thavisin, a tycoon. Markets are cheering the end of an impasse. Relief may be brief. Japan and the UAE will soon have legal casinos; Thailand may follow.

Months of political deadlock and stock market volatility have finally come to a close in Thailand. The appointment of new Prime Minister Srettha Thavisin is expected to boost investor confidence in the short term but experts say the long-term economic recovery will prove challenging. While the Move Forward party won May's general election, it was unable to obtain approval from the conservative Senate. Srettha, Pheu Thai's choice for leader, was appointed prime minister on Aug. Thaksin's return is likely part of a power-sharing deal that Pheu Thai negotiated with the military establishment, according to political watchers, who believe he will eventually receive a royal pardon under Srettha's administration. This political turbulence has been reflected in the stock market, where foreign investors have been net sellers since the May election. August marked the seventh consecutive month for net selling but sentiment is slowly ticking up amid hopes for Thaksin's return and Srettha's economic promises to bring much-needed stability to the business environment.

Thailand remains the sick man of south east asia

Srettha entered politics after a career as a major real estate developer, and his government is facing high expectations and pressing demands to address a range of economic, political, social and environmental problems in its four-year term. He vowed to quickly take measures to relieve debt problems, mitigate rising energy costs and boost tourism, without going into detail. The promise drew major interest in the election campaign, but critics have questioned whether it would have a sustainable effect. Long-term goals cited by Srettha include boosting international trade, supporting start-up businesses, investing more in transport infrastructure, improving agricultural production, empowering local government and increasing access to land ownership. The government would also seek to amend the current military-installed constitution through a process that allows public participation. The results of Thailand's elections in May revealed a strong mandate for change after nearly a decade under military control. But Parliament failed to endorse a coalition formed by the progressive Move Forward party, which won the most seats in the May polls, because members in the appointed and conservative Senate were alienated by its calls for minor reforms to the monarchy. But it succeeded only by including pro-military parties and several parties that were part of the previous government, reneging on a campaign pledge not to do so. Home United States U. Follow Us.

Already squeezed by months of bad economic news, those at the bottom of the ladder are hoping for an upturn in fortunes. For Bangkok, though, a deal at near twice the target's book value is a necessary gamble on faster growth.

Sinking in heavy repayments to loan sharks, Non says payday is nothing more than a cruel reminder of his dire finances. Household debt has surged to alarming levels in Thailand; just one of a welter of issues dragging on the economy despite a vow by the ruling junta to revive the kingdom's fortunes. Thai households are among the region's biggest borrowers, a credit binge stoked by populist policies and low bank interest rates -- but also low wages that keep the poor perilously close to the breadline and make them ready bait for illegal loan sharks. The debt levels are worrying the generals who seized power last May promising to end a near-decade of political turmoil and restore zip to Thailand's once-dynamic economy. The country narrowly avoided recession during protests against the ousted administration of Yingluck Shinawatra, which paralysed government spending and frightened off tourists and investors.

Vietnam, Indonesia, Malaysia and the Philippines are forecast to grow more than 5 percent this year, while Thailand is on the verge of a recession after gross domestic product shrank in the first quarter. The Philippines is forecast to say tomorrow that first- quarter GDP grew 6. The benchmark SET index of stocks has gained about 7 percent this year, lagging the 16 percent gain for the Jakarta index and the 15 percent increase for the Philippines. The baht is among the worst performers over the past six months of 11 widely traded Asian currencies tracked by Bloomberg. Before the coup, anti-government protesters had been demanding an unelected council run the country to wipe out the influence of former prime ministers Thaksin Shinawatra and his sister Yingluck, whom they accuse of corruption and using the appeal of economically damaging populist policies to win the last five elections. Thailand has overcome coups, natural disasters and downturns in the past. During the last military intervention in , annual economic growth accelerated to 5. Foreign direct investment into Thailand was just ahead of Malaysia in the region in , with flows to Vietnam and the Philippines also rising, World Bank data showed. Sony Corp.

Thailand remains the sick man of south east asia

The Philippines has had one of the longest and strictest lockdowns of any country in Southeast Asia. From mid-March, President Rodrigo Duterte and local governments started imposing movement restrictions, including stay-at-home orders and curfews. In numerous districts across the main island of Luzon and metro Manila residents were required to be off the streets between 8 p. Foreigners were prevented from obtaining new visas and all existing visas were cancelled.

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Search the FT Search. August marked the seventh consecutive month for net selling but sentiment is slowly ticking up amid hopes for Thaksin's return and Srettha's economic promises to bring much-needed stability to the business environment. March 7, Sunday, 30 April, Accessibility help Skip to navigation Skip to content Skip to footer. US Show more US. Markets are cheering the end of an impasse. Monday, 31 December, Rupert Murdoch will embark on his fifth marriage later this year aged 92, after proposing to his girlfriend Elena Zhukova. Pheu Thai also plans to spend billion baht 1. Southeast Asia is on the cusp of a 'supercharged' digital payments revolution, PwC says. Everyone now has an opinion about Taylor Swift and how Malaysia missed an opportunity while Singapore cleverly milked her visit, even conservative politicians. This will surely increase public debts and delay some other projects. But policies by the previous government -- including a huge tax rebate scheme for first-time car buyers -- have also encouraged millions to take out loans that they are now struggling to repay.

For the latest, search on ABC Emergency. As the end of approached, Thailand was in an enviable position. As other nations confronted soaring coronavirus case numbers, the country had only 4, infections and just 60 deaths in a population of 70 million people.

Follow Us. Markets Show more Markets. Sheila Chiang. He vowed to quickly take measures to relieve debt problems, mitigate rising energy costs and boost tourism, without going into detail. Thailand takes action against media groups for protest reports. Thaksin's return is likely part of a power-sharing deal that Pheu Thai negotiated with the military establishment, according to political watchers, who believe he will eventually receive a royal pardon under Srettha's administration. Add to myFT Digest. Tuesday, 9 May, Britain's biggest grocer may sell its business in Thailand and Malaysia. Military to retain constitutional grip even after return to civilian government.