Thailand sees positive logistics development trend

More than 500 industrial firms in Thailand have improved their logistics capabilities, diminishing investment costs by Bt3 billion this year, a senior Industry Ministry official said last weekend.
Speaking at the Industrial Supply Chain Logistics Conference Nov. 14, Vithoon Simachokdee, permanent secretary for industry, said the five-year industrial logistics development plan (2012-2016) has been implemented to boost Thailand’s competitive edge.
He said the Primary Industries and Mines Department (PIMD) has concentrated on logistics development in seven industrial sectors - food, petrochemicals and plastics, electrical appliances and electronics, automobiles and auto parts, textiles and clothing, rubber and rubber products, and small and medium-sized enterprises.
This year’s logistics development through 30 state-initiated projects has improved the skills of at least 6,575 personnel and connected over 28 supply chains, said Vithoon.
He said the Industry Ministry was allocated Bt138.54 million to execute the supply chain development plan.
More than 93 percent of industrial operators have successfully launched their greening industrial projects at PIMD encouragement in the last seven years. (MCOT)

Thailand unemployment rate in October is 0.6 percent

Thailand’s unemployment rate in October was at 0.6 percent of the total workforce, which they say equates to about 230,000 people.
Viboondhat Sudhantanakit, director-general of the National Statistical Office, said that the work force in the labor market in October stood at 38.39 million persons, of whom 38 million are employed, 237,000 persons unemployed, and 13,000 persons waiting for the next employment season.
Most of the employment was in non-agricultural sectors with 25 million persons while those employed in agriculture sector were 12.8 million persons.
As of October, the unemployment rate is 0.6 percent of total workforce, or 230,000 persons, an increase of 14,000 persons when compared with the same period last year.
Viboondhat said among the unemployed, 90,000 persons were new graduates or have never entered the workforce, while most of the unemployed were university graduates - some 83,000 persons.
Thailand’s southern region, meanwhile, has the highest rate of unemployment at 0.8 percent. (MCOT)

Thai property market expands 10 percent this year

Thailand’s property market may enjoy a 10 percent growth this year, an expansion by 120,000 housing units, according to the Government Housing Bank (GHB).
Samma Kitsin, director of the GHB Real Estate Information Centre, said there were 32,000 newly-built housing units in the first three quarters of the year and the figure will rise to 40,000 units by year-end.
There were 60,000 units of new condominiums in the first three quarters with a forecast of 80,000 units this year, representing a 20 percent growth with an emphasis on projects along mass transit train routes, he said.
Higher land prices have led more consumers to buy condominiums instead of homes in housing estates, he said.
Loan extensions by commercial banks have significantly slowed down in the second half of the year after 20-25 percent of loan applications were rejected - much higher than the normal 10-20 percent rejection rate.
Commercial banks have achieved their loan extension targets while many financial institutes were concerned with the continued economic slump, he said.
Among positive factors contributing to the real estate business are reduced personal income taxes which consequently boost consumers’ purchasing power and higher housing demand among foreign investors who choose Thailand as their regional manufacturing base in preparation for the ASEAN Economic Community in 2015.
The combined value of 40,000 new units of housing estates and 60,000 condominium units is estimated at Bt400 billion while prices will increase by 5-10 percent, he said. (MCOT)

Bt11 billion spent during Loy Krathong festival

Nearly 11 billion baht was expected to have been circulated during Thailand’s Loy Krathong festival, according to the University of the Thai Chamber of Commerce (UTCC)’s Economic and Business Forecasting Center.
Center director Thanawat Polvichai said that spending is forecast at 5.6 percent higher year-on-year, worth Bt10.87 billion due to rising commodity prices.
He said each Loy Krathong festival-goer is likely to spend an average of Bt1,539. About Bt7 billion will be circulated upcountry, while the rest is being spent in Bangkok and its adjacent provinces.
Dr Thanawat said the celebrations in provinces this year remain lively, but the atmosphere will be different in the capital due to the economic slowdown, political demonstrations and the mourning period for the late Supreme Patriarch.
The most concerning issue for Thai consumers, Dr Thanawat said, is the rising cost of commodities, adding that economic factors have more impact on consumer spending than politics.
Dr Thanawat said the country’s economy will grow between 3.3-3.5 percent despite the heated political situation during the year-end period, and five percent for next year as the global economy begins to recover.
He said although the political problems prolong until next year, economic growth will continue to grow more than five percent. A change of government, such as the resignation of the prime minister, or political tensions, are being monitored.
It is believed that the Pheu Thai Party will lead the government even if the premier resigns or the House is dissolved and a new general election is held. (MCOT)