A view from Thailand

All eyes in Thailand are on tax reforms and government investment. Thailand’s economy in 2016 will be largely driven by the government’s huge spending on infrastructure projects (Rail systems and motorways worth Bt 1.1 trillion), and the BOI’s incentive packages for private investors (Exemption from income tax for 8 years; after 8 years 50% reduction in income tax for another 5 years).

The tax reform will also be a mechanism to stimulate foreign investments in the Kingdom:

* Revise down personal income tax from 35% to possible 20%

* Maintain corporate income tax at 20%

* Introduce land and construction tax

* Inheritance tax goes into effect.

Thai Union Group (TU), the world’s largest processor of shelf-stable tuna, announced that it will acquire 51% of RuegenFisch, a market leader for shelf-stable canned seafood in Germany. TU becomes a market leader in Germany and further strengthens its position as of the European seafood leaders.

Ebay has released consumer insights that outline strong opportunities for Thailand’s automotive industry to boost sales of auto parts and accessories through retail exports in the global Internet marketplace. Auto parts and accessories are ranked as the third highest category for the Kingdom’s retail exports on eBay with the US being the number one export destination.

Thailand and China marked the start of the 873km Thai-Chinese railway project worth 500 billion baht, a North-South double-trackroute from the Laos border to the heart of the country’s Eastern Seaboard industrial zone, which includes the automotive industry center in Rayong.

Southeast Asia will become an emerging destination for the global tourism market and Thai tourism market is expected to welcome 31 million tourists in 2016, up from 28 million this year.

Thailand just inaugurated Terminal 2 at Don Mueang airport (the old Bangkok international airport) which is mainly focusing on the domestic market (70%) and will be able to handle 30 million passengers a year.

ASEAN will be more competitive once the ASEAN Economic Community (AEC) is a reality, but the results of a region-wide poll show that people remain circumspect about the gains made so far and skeptical about how fast matters can progress on regional integration, given current realities. According to the survey which was conducted by The Straits Times and covered all 10 ASEAN nations, businesses will do better, work opportunities will grow and lives will improve. Key findings are:

* More than 75% of the respondents say ASEAN will become more competitive globally after the AEC reality

* Slightly more than half expect business to improve

* Half of those polled are certain that life will be better

* Two-thirds expect work  or travel to rise in the next three years, and

* Only a quarter of the respondents believe that ASEAN is close to becoming a community.

More than one-third are clear that it is not close to being a community, while the rest is uncertain.

A lot of respondents fear that the huge disparities between the members, in areas such as GDP per capita, wages, productivity etc. will ensure that certain members will continue to protect their own economies.