Bangkok Post: The world's window to Thailand

   Editor:
   Chiratas Nivatpumin
   Co-ordination:
   Tony McAuley, Taksina Isarabhakdi
   Copy Editing:
    Eric Baker, Piers Evans, Gregory
    Lowe, Taksina Isarabhakdi, Tony
    McAuley
    Cover and Graphics:
    Sataporn Kawewong
    Design and layout:
    Napaporn Suktrakul, Chantiya
    Potayarom
    Production co-ordination:
    Veman Ittihiranwong

Economic review MID-YEAR 2010

Price $ 6.00

As the smoke clears, people in all walks of life and of all political persuasions are starting to draw lessons from the political unrest that exploded into violence.

Formanybusinesses, the events of April andMaywere a rude awakening to the realisation that riskmanagement willbecomemore time-consumingand costly. Selling Thailand as a safe and
hospitable place for a holiday or a major investment willbecomeharder. Sowill encouraging domestic consumer to open their wallets—the country can’t live on exports alone.

The news is not all bad. The Thai economy continues to show steady growth. Ports and airports continued to function and trade thrived evenwhen parts of the capital were a sea of red. Life, and business,inmostof the country continued as normal.

Domestic concerns aside, the world asawholeremainsarisky place. Crushing debt in Europe could yethammer a global economy still emerging tentatively from a recession.

Against this backdrop, a country preoccupiedandweakenedbypolitical infighting is at risk of not being able to deal effectively with potential external shocks to come.

The stakes are high for everyone committedto buildingabetter, stronger Thailand.

ECONOMY

Worst is over . . . for now
After a turbulent first half, a strong recovery appears under way, but major hurdles remain for small operators.
By Parista Yuthamanop

Careful adjustments on the cards
Thailand has escaped heavy impact from global crisis, and interest rates probably should start rising soon, but the effects of political unrest have now altered the timetable.
By Parista Yuthamanop

FISCAL POLICY
Spending your way out of the crisis
Mountains of public debt are not for the faint of heart, but policymakers insist it is not an option if the economy is to sustain its fledgling growth.
By Wichit Chantanusornsiri

TRADE

An unfailing pillar of strength
Exports have proved yet again to be the major driver propping up the economy when all else fails.
By Phusadee Arunmas

Fixing the groundwork
Its rich resources and skilled hands notwithstanding, the country faces the threat of being dethroned as the production base of Asean because of political risk. Can Thailand be saved from itself?

MARKETS

Never waste a good crisis
The recent political turmoil has highlighted the need for efficient backup strategies, prompting SET and brokers to rethink their plans.
By Nuntawun Polkuamdee

On course to meet new challenges
Capital market liberalisation plan and reforms remain intact and on schedule to bring the market to the next level and make it a viable regional competitor.
By Darana Chudasri

RISK MANAGEMENT

Preparing for the worst
May events drove home the message that business continuity planning is essential, and not an afterthought, for Thai organisations.
By Pornnalat Prachyakorn

INSURANCE

A delicate balancing act
The emergence of ‘terrorism’ has redefined the local insurance industry, with businesses likely to bear the brunt of higher coverage costs.
By Charoen Kittikanya

Pooled coverage proposed for SMEs

BANKING

Protection starts with people
Banks say insurance, security hardware and IT are important, but everything depends on staff knowing how to respond to an emergency.
By Somruedi Banchongduang

INDUSTRY

Business seeks a voice
FTI chief says national reconciliation is a huge challenge and that the voice and skills of the private sector should not be overlooked in the process.
By Busrin Treerapongpichit

Time to speak up
Foreign investors seeking a bigger role in proposing ways to move the country forward socially as well as economically.
By Nareerat Wiriyapong

AGRICULTURE

Watering the fields
As Thai Khem Khaeng funds are spent on irrigation over the next few years, critics wonder if the government is doing enough about long-term water management.
By Phusadee Arunmas

Bridging the income gap
Improving land, seeds, productivity, education and social safety net is the way to tackle rural poverty at a time when a large portion of the population is left behind in the rapid pursuit of liberalisation.

PROPERTY

A changed landscape
Tragic events in May have reshaped demand for office space and exposed a glaring need for contingency plans. Local businesses could draw lessons from New York post-9/11.
By Kanana Katharangsiporn

Brighter outlook in second half
Real demand and low interest rates will breathe life into sluggish residential market although foreign buyers will remain on the sidelines.
By Kanana Katharangsiporn

TELECOMMUNICATIONS

The next generation?
Regulators finally admit that 3G is a non-starter and say industry should prepare for faster and more expensive 3.9G wireless broadband. Operators have mixed views.
By Srisamorn Phoosuphanusorn

TOURISM

Faint hopes of recovery
Just when things were starting to get better, the hospitality business was dealt yet another heavy blow, forcing operators to seek a lifeline.
By Chadamas Chinmaneevong and Chatrudee Theparat

Hotels coping with the aftershocks
By Chadamas Chinmaneevong

RETAILING

Getting shopping carts rolling
After counting their losses, Bangkok’s shopping malls were quick to get back on their feet, thanks to various campaigns to get consumers to loosen their pursestrings.
By Pitsinee Jitpleecheep

Expansion continues apace
Even during tough times, retailers are far from discouraged, and some are forging ahead at full speed with expansion plans and introducing new formats.
By Pitsinee Jitpleecheep

MEDIA

Unrest leaves old media unscathed
Social networks and new media usher in a new information paradigm, writes
By Krissana Parnsoonthorn