Thread: Thailand to suffer most in economic crisis

SCB cuts savings deposit rate to 0.5%

never cut the morgage repayment though .....................

Bangkok Post : No reduction in SCB mortgage loan rate

And so the panic sets in Thais reducing price 50%!!!


50% discounts to woo buyers

Sellers face losses but will save costs

By: KANANA KATHARANGSIPORN Published: 26/02/2009 at 12:00 AMNewspaper section: Business Three condominium developers and a group of investors plan to offer discounts of up to 50% in a grand sale with an aim to speed up project sales closings, liquidate firms and manage costs, according to Supachai Chammanovong, vice-president of the property broker and consultant Harrison.
Saint Louis Grand Terrace will have 15 units on offer. Other projects with discounted units include [at]City Sukhumvit 101/1 from Siam Home Development, Waterford Sukhumvit 50 from Waterford Property, andThe Master Centrium Asoke fromP.A.J. Enterprise.

Sellers believe that the discount strategy will draw attention to the project sites where price reductions of 20-50% would be offered, he said.
The projects include [at]City Sukhumvit 101/1 from Siam Home Development, Waterford Sukhumvit 50 from Waterford Property, and The Master Centrium Asoke from P.A.J. Enterprise, offering 80, 70 and 20 units respectively in the fair to be held on March 28 and 29 at their sites.
There will be also 15 units at Saint Louis Grand Terrace offered by an undisclosed group of investors who earlier bought a wholesale lot of 42 remaining units from the developer Metrostar Property. All 185 units are complete and ready to move in but only 30 would be offered at half price.
Sahatchai Kwancheun, a vice-president at Harrison and a representative of the investor group, said the sellers might face small losses. However, he said they felt it was better than keeping the units longer and paying maintenance and possible renovation costs.
"Developers typically want to sell units as soon as possible if they are nearly complete. Many of them need to offer a discount price to liquidate the assets and get money for new project investment."
Mr Supachai said the participating projects were more than 80% sold so the developers had already reached the break-even point.
"If demand exceeds supply, it should be the sellers' chance to get a better price," he said.
The half-price units would be offered at a starting price and open for two hours of bidding, for which each project site will set its own bidding date.
Harrison last year recorded 9.5 billion baht worth of sales and expects a 30% decrease to 6.5 billion this year due to the economic slowdown.
Siam Commercial Bank will offer special financing at the fair, with an interest rate of 2% for one year, followed by the minimum lending rate (MLR) minus -0.50% afterwards, and mortgage loan of 100% of the appraised price for physicians and academics with the position of at least assistant professor.
"Those highly educated or highly paid applicants with an A-grade credit score will have higher repayment capability and less risk of becoming non-performing accounts," said Dumri Vimolsathit, an SCB vice-president.
"It's been a policy we have applied since last year to reduce NPLs, get regular interest and offer other services to this target group."
For other customers, the rates will be between 2.75% and 3.25% for one year and MLR -0.75% afterward.

Originally Posted by larvidchr

Some shocking numbers here

not really, to be expected, and frankly needed. Too many silly construction projects,

Incidentally some properties company are still reporting great earnings,

Originally Posted by Butterfly

Originally Posted by larvidchr

Some shocking numbers here

not really, to be expected, and frankly needed. Too many silly construction projects,

Incidentally some properties company are still reporting great earnings,

Yeah. That's what we need. More empty and dormant super luxury hotels and office towers....

Was in BKK a couple of days ago. It looks like all construction activity on the huge Regent Hotel/Condo building at Suk Soi 13 has completely stopped. Anyone have an idea as to why?

Originally Posted by Butterfly

Originally Posted by larvidchr

Some shocking numbers here

not really, to be expected, and frankly needed. Too many silly construction projects,

Incidentally some properties company are still reporting great earnings,

I don't disagree with that, it's true, the adventure is over for now, but it is still hard for the people loosing their job's

Originally Posted by baldrick

larvidchr , I see your signature and think of this

Maybe you are right, it is a bit to serious and sinister, so time for change

FPO: Flat growth most likely scenario

By: WICHIT CHANTANUSORNSIRI Published: 27/02/2009 at 12:00 AMNewspaper section: Business The Thai economy is likely to post flat growth this year, as export revenues have fallen sharply due to the global economic crisis, according to the Fiscal Policy Office.
The new estimate of zero growth is a sharp retreat from earlier targets of zero to 2%, and comes after the National Economic and Social Development Board announced this week that the fourth quarter of 2008 showed a contraction of 4.3% year-on-year.
Somchai Sujjapongse, the FPO director-general, said yesterday that 2% growth this year was still a possibility, assuming that stimulus measures in Thailand and the world proved successful in turning around the global economy.
With 70% of gross domestic product reliant on exports, Thailand's economy is highly dependent on world trends.
Dr Somchai said the more likely prospect was flat growth in 2009.
But he warned the economy would likely post a higher contraction in the first quarter than in the fourth quarter of 2008, due both to the global downturn and high base effects last year.
The contraction would likely continue through the second quarter, before turning around late in the year as stimulus measures take effect.
"We need to hold on to the strengths within the economy to help pass through this crisis," Dr Somchai said.
He pointed to relatively low unemployment of 1.4% or 500,000 people, the strong profitability and capital position of the financial sector, low inflation and the central bank's plentiful reserve position of as much as $110 billion as key positives for the economy.
While non-performing loans in the banking sector remained relatively low at 5% total, a long recession could lead to lower asset quality for local banks.
The government has announced a wide-reaching credit-guarantee programme and raised capital for local state-owned banks to help ensure that credit continues to reach exporters and small businesses even as commercial banks tighten their lending standards.
Ekniti Nitithanprapat, the FPO spokesman, said the agency's previous growth forecasts were based on 1% growth for the country's 14 key trading partners.
"But based on the latest estimates, we see these 14 countries now posting growth this year of -1% to -3%," he said.
"Every one percentage point decline in growth for our trading partners will affect Thailand's own economic growth by one to 1.03 percentage points."
Details on the latest economic forecasts by the FPO are available at ˹éÒËÅÑ¡ : Êӹѡ§Ò¹àÈÃÉ°¡Ô¨¡ÒäÅѧ: Fiscal Policy Office.

what happened to the second half recovery ?

The Ministry of Commerce would not lose face even if exports may fall because the ministry will continue working to its potential and will not be discouraged, according to Mrs Pornthiva.

OMG

HR's report should read : challenged in current position

If the government adjusts some regulations and facilitates traders,

cook the books and pay the kick-backs

Commonwealth of Independent States

had to google that one

The Commonwealth of Independent States (CIS) (Russian: Содружество Независимых Государств, СНГ, (transliterated Sodruzhestvo Nezavisimykh Gosudarstv, SNG)) is a regional organization whose participating countries are former Soviet Republics.

Commonwealth of Independent States - Wikipedia, the free encyclopedia

I'm feeling embarrased for them now. I'm gonna try and stop railing on them, its just not fair, its like picking on the kids who went to school "on that other bus".

fok 'em

Originally Posted by Mid

HR's report should read : challenged in current position

Oh, yes, and maybe the happy days of outsoursing is over.

Bangkok rated second riskies hub only behind Bogota.
CIOs reconsidering India's offshore appeal - CIO UK Magazine
Details on page 2

Good link Helge, I think it is worth showing some of it directly-


The 25 Riskiest Outsourcing Hubs in the World
(Rankings based on mean scores in ten areas of risk as reported by The Brown-Wilson Group "2009: The Year of Outsourcing Dangerously".)
1. Bogota, Columbia
2. Bangkok, Thailand
3. Johannesburg, South Africa
4. Kuala Lumpur, Malaysia
5. Kingston, Jamaica
6. Delhi/Noida/Gurgaon, India
7. Manila/Cebu/Makita, Philippines
8. Rio de Janeiro, Brazil
9. Mumbai, India
10. Jerusalem, Israel
11. Curitiba, Brazil
12. Dalian, China
13. Juarez, Mexico
14. Brasilia, Brazil
15. Chandigarh, India
16. Colombo, Sri Lanka
17. Ho Chi Minh City, Vietnam
18. Quezon City, Philippines
19. Accra, Ghana
20. Pune, India
21. Chennai, India
22. Hanoi, Vietnam
23. Bangalore, India
24. Hyderabad, India
25. Kolkata, India



And these are the reasons cited for Bangkok/Thailand-



Unsecured or unprotected networks and infrastructure
1. Bogota, Colombia
2. Bangkok, Thailand
3. Kingston, Jamaica



Unstable currency
1. Bangkok, Thailand
2. Bogota, Colombia
3. Johannesburg, South Africa



Personal crime rate/police-to-citizen ratio
1. Bangkok, Thailand
2. Johannesburg, South Africa
3. Rio de Janeiro, Brazil



legal system immaturity

1. Bangkok, Thailand
2. Bogota, Colombia
3. Kingston, Jamaica

^^The "personal crime rate" is just not that bad here (although that may change). Makes me question their other determinations.

Originally Posted by larvidchr

10. Jerusalem, Israel

that one would seem to be a greater political and security risk, and yet it's ranked 10

Originally Posted by robuzo

^^The "personal crime rate" is just not that bad here (although that may change). Makes me question their other determinations.

I think the meaning here is the crime rate committed by the Police against normal citizens, the point being no law and order and low protection against corruption extortion and so on by the Police against people trying to establish a business.

Originally Posted by Butterfly

Originally Posted by larvidchr

10. Jerusalem, Israel

that one would seem to be a greater political and security risk, and yet it's ranked 10

Again it is from a business point of view, infrastructure,legal system,corruption, transparent business practices aso. Not from the eyes of a Palestinian terrorist looking up at the drones Butterfly

I am a little surprised by the rating for Jhb. The crime side is a given.

Thailand & its corruption are renowned.