Recently, the Ministry of Finance started efforts to revive the confidence of the foreign businesses and investors in Thailand due to the political unrest in May 2010.The Ministry of Finance will offer a new package for Thai and foreign businesses and investors setting up regional headquarters in Thailand.
Supasak Chirasavinuprapand Royal Advocates International Ltd. e-mail: supasak@rai.co.th
The cabinet recently passed a resolution to approve the following proposed drafts submitted by the Ministry of Finance, namely the Securities for Business Act and the Amendment to the Civil and Commercial Code; in order that assets having economic value can be used as security to obtain credit facilities from the bank and/or financial institutions. At present, the securities used against debt payment are restricted to mortgage of immovable property (land and building) and certain movable property (ships or vessels of 6 tons over, floating houses, beasts of burden under the current Civil and Commercial Code) and in the form of a pledge, which is required for movable property to be delivered to the creditors. Other assets having much economic value in business operation, such as the business itself, inventory, machines, raw materials used for production, rights of claim and etc. cannot be used as securities to obtain the credit facilities. The business operators, hence, lose their opportunity to obtain the credit facilities from financial institutions for use as working capital in their businesses.
Quarterly Global Outlook 4Q2009 UOB Economic-Treasury Research
Growing 2.3% q/q on a seasonally adjusted basis, the technical recession which began in the last quarter of 2008, has ended. A look at the key industries of the economy, however, still show weakness persisting.
Exports, which make up more than 60% of GDP, also seem to be falling further, with no sign of recovery.
Overall, we think Thailand’s economy, like the rest of the global economy, looks to be on the recovery path. But the sustainability of the recovery pattern largely depends on whether the economy can stand on its own when the fiscal stimulus package runs out.
Thailand’s central bank kept the benchmark one-day bond repurchase rate unchanged at 1.25%. We expect the BoT to raise rates in the 3Q of 2010, when the growth of the economy is on a more sustained path.
1. This Chamber of Commerce is named “The Malaysian – Thai Chamber of Commerce”, herein after referred to as “the Chamber”.
2. The Chamber has its registered office located at The Embassy of Malaysia, 3rd Floor, 35 South Sathorn Road, Tungmahamek Subdistrict, Yannawa District, Bangkok.
3.The Seal of the Chamber is as follows: A circle is stamped with the words “Malaysiam – Thai Chamber of Commerce” written in English around the circle. The middle of the seal has the abbreviation M.T.C.C.
As the industrial production sector is growing at a slow rate, the Cabinet issues the policy to stimulate the economy. The Ministerial Regulation on Exemption of Annual Fee for Factory Operators, B.E. 2552 (2009) is prescribed by virtue of the Factories Act, B.E. 2535 (1992) (the “Act”) to exempt the annual fee under the Act that is due from June 1, 2009 from May 31, 2010 for category 2 factory operators and category 3 factory operators.
