Thailand

Having posted sales increases of up to 15%, Thailand’s retailers are looking to build on the strong performance of the past year as they look ahead into 2011. Concerns over lingering political tensions and instability in the global economy, however, could tone down the ringing of cash registers in 2010.

For Thailand’s Fortune 500-listed energy giant PTT, 2011 could be one of the busiest years since the firm was privatised in 2001. Its overseas expansion programme is progressing apace with 43 projects under way in 12 countries. At the same time, however, falling reserves in its own backyard and rising costs could have an impact on medium-term growth.

For the Thai economy, 2010 was a year that defied many predictions. It saw the country overcome many obstacles that could have derailed the recovery from the global downturn, though 2011 will surely present additional challenges.

A high-speed railway line could link Thailand, Laos and China as early as 2015, with construction work set to begin in 2011. The joint venture is aimed at strengthening regional integration and economic ties, though questions remain over how it will affect the ASEAN economy.

As concerns over “hot money” grow in emerging markets, the scale of capital inflows into the Thai economy has led local officials to announce that they are weighing investment controls to limit appreciation pressures on the baht.

The introduction of real estate investment trusts (REITs) in Thailand is expected to generate new interest in the already active market.