Thailand

A new investment stream is set to pour into Thailand’s property sector with the upcoming release of real estate investment trusts (REITs), bringing the country into line with many of its regional neighbours. Details are still unclear, however, on when exactly investors will be able to take advantage of the new tool.

Concerned that the deepening uncertainty over the debt crisis in the eurozone, combined with a general slowing of the global economy, could impact the country’s capital markets, Thailand is keeping a wary eye on the situation in Europe.

The Thai banking sector experienced rapid growth in the first quarter of 2012 on the back of significant expansion of the economy as a whole, with most banks posting increases in profits and loans.

In a move widely regarded as a major policy u-turn, the Thai government is paving the way for the relocation of low-cost carriers (LCCs) from Bangkok’s primary airport, Suvarnabhumi, to alternative facilities at the older Don Mueang International Airport as it looks to tackle the growing problem of passenger congestion.

Thai consumers are beginning to feel the effects of the government’s decision to liberalise compressed natural gas (CNG) prices with the aim of bringing retail costs in line with the global market and potentially freeing up government funds for use in other sectors.

Thailand’s economy appears to be regaining momentum following last year’s devastating floods that adversely affected exports and GDP. Consumer demand is on the rise and the state-backed rebuilding programme is channelling funds into infrastructure. There are still concerns, however, over the sustainability of the recovery if some of the country’s major markets fall back into recession.