Health care, beauty still brightest lights

Health care, beauty still brightest lights

Medical services and beauty care remain the top sectors for the year ahead, while rice and rubber are likely to remain bearish and dampen motorcycle sales as a result, says a survey by the University of the Thai Chamber of Commerce (UTCC).

The survey said medical services and beauty care would offer the brightest growth prospects for a fifth straight year in 2015, driven by growing awareness of Thailand's modern healthcare infrastructure.

Thai medical treatment, particularly at private hospitals, is now widely recognised by local and foreign patients for its quality and affordable cost.

Patients from neighbouring countries have a great deal of trust in Thailand's sophisticated medical technology, said Wachira Khuntaweetep of the UTCC Center for Economic and Business Forecasting.

Medical services and beauty care top the list of 10 "sunrise" businesses, followed by telecommunications and gadgets, a category getting a boost from the roll-out of the fourth-generation broadband network, high-speed internet development and an affordable telecom apparatus.

Education also holds promise thanks to strong demand for knowledge and greater accessibility to educational media as part of preparations for the Asean Economic Community scheduled to take effect late next year.

Tourism, meanwhile, is expected to rebound in line with the global economic recovery and gain steam from continued promotional campaigns.

Life and general insurance is another sector on the rise, fuelled by tax benefits, higher personal incomes and greater awareness of long-term savings among locals.

Mr Wachira said other sunrise businesses included beverages, construction and construction materials, senior-care products, property, coffee, fishery products and big bikes.

According to the survey, sluggish sales are predicted for sunset industries such as artificial flowers, handicrafts, dried fruits and vegetables, basic textiles and fabrics, mom-and-pop shops, rice, rubber, conventional TV sets, ordinary motorcycles and squat toilets.

Rice and rubber will be hit especially hard due to falling global prices and Thailand's hefty government stockpile.

Thanavath Phonvichai, UTCC's vice-president for research, said sunrise businesses in 2015 would be driven mainly by the changing environment, reflecting regional economic integration, the ageing society and lifestyles more in tune with social media.

The government's commitment to infrastructure and development of special economic zones is good news for construction and construction materials, property and independent contractors, Mr Thanavath said.

"For 2015, we forecast economic growth of 4%, driven by government spending on infrastructure development and farmer assistance, which is expected to kick off early next year," he said.

"However, the global economic recovery could also backfire on the back of falling oil prices."

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