Siam News Network

Thailand Business News –

A stamp duty loop hole which allows individuals to pay a much-reduced rate of tax by using an offshore company to buy property rather than doing it in their own name has been closed. This tax avoidance scheme has been used by the rich and famous to sell Britain’s most expensive properties for years. Sir Mick Jagger and Sir Bob Geldof have been known to use this loophole.

Link:
Stamp duty loop hole closed in UK

The SET index bottomed at 432 in December 2008 after tumbling from a high of 833 earlier that year. The index then levelled off in Q1/09, before working its way back to 560 in May. Triggered by positive pre-sale signs from developers, a reduction in construction costs and the government’s stimulus package, property stocks were among the first to bounce back. The SET’s revival reached a mark just 32% below its peak, in line with other world stock markets including the Dow Jones (-33%), Singapore Straits Times (-27%), the Hang Seng (-25%) and the FTSE (-27%).

The Bank of Thailand Monetary Policy Committee stopped cutting its key rate in May 2009 after seeing signals of a recovering economy. Many expect banks to adjust their rates down once rising confidence supports housing purchases, and promotion campaign launches to grasp home buyers.

As a result of declining consumer confidence during four consecutive quarters there has been a dramatic drop in sales of big ticket items such as vehicles (-33%). Bangkok housing registrations for single houses and townhouse units have also been hit hard, while investments and new mass transit lines have boosted market share for condominiums in the residential property sector, although the market demand as a whole has been lower. Transactions will most likely remain slow until confidence returns to both buyers and bankers, who finance property developers and their customers.

When the crisis ignited on Wall Street hit Thailand, our economic engine stalled early in 2009 and so did developers’ sales and revenues.

Several factors have contributed to the strong and rapid rebound.

The severity of the global financial crisis also saw the government introduce additional sweeteners for buyers — a 300,000-baht income tax deduction for any buyers of a new home that was transferred within 2009. At the same time, mortgage interest that could be deducted from taxable earnings was increased to 100,000 baht from 50,000 and has now become a permanent tax benefit.

Thailand Business News –

InterContinental Hotels Group (IHG) is cashing in on the fast-growing hospitality market in Thailand with an aggressive plan to double the number of its hotels and resorts here to 24 over the next five years, thanks partly to the implementation of the Asean Economic Community (AEC) in 2015, which will drive regional travel traffic.

Read the original here:
InterContinental Hotels to Double Properties in Thailand
Thailand’s property sector is showing signs of an early recovery, as selective investors return to purchasing real estate stocks and actual property.

Some of the credit goes to a one-year government stimulus package that reduces the Special Business Tax from 3.3% to 0.11%, extends the reduction on transfer taxes from 2% to 0.01% and mortgage registration fees and provides a tax deduction on mortgage principal and interest.
Thailand’s property indicators show:

1.The Stock Exchange of Thailand (SET) index began rebounding in April 2009, and property stocks – while the first to fall in H2/08 – were amongst the first to recover
2. The Bank of Thailand (BoT) has lowered its policy interest rate four times since December 2008, prompting banks to reduce the minimum lending rate (MLR) from 7.25% to 6.25%
3. A continued drop in sales of durable goods due to uncertainty surrounding the economy is highlighted consumer confidence index (CCI) to a historic low of 72.8 in Q1/09 and New housing registrations in Bangkok and surrounding areas fell 43.8% in Q1/09

Many market observers and potential buyers were surprised that housing prices did not go down during the crisis — a reflection of the view that the market felt the situation was only temporary.

Like Raimon Land, Prinsiri did not lower its prices : it was not all bad news, however, as the recovery soon took hold in the second half and by the fourth quarter GDP posted 5.8% growth and many developers reached their annual sales targets.

But a stable political environment in Thailand would likely see interest rates rise by half a percentage point. And oil prices will float at about US$85 to $95 a barrel. Construction costs will rise when oil prices and interest rates are in an upward trend. Overall housing supply has dropped over the past two years with a decrease in the number of construction permits. Many small-sized developers went bust after failing to access loans from local financial institutions.

The aviation market has not been performing as experts
forecasted. Instead of increasing of the number of flights as they did in
previous years, many airlines have to reduce the flight frequency.

See the original post:
People tighten their belt, airlines fear passengers would decrease

Walking through the streets of Hong Kong with its endless rows of jeweler stores packed full of Chinese shoppers, it may seem like the bling business is sparkling.

Chow Tai Fook Jewellery Group Ltd., controlled by Hong Kong billionaire Cheng Yu-tung, made waves through a US$2.8 billion initial public offering last December, educating investors all over the world of the insatiable Chinese appetite for gold.

But after hitting its record high in late January, Chow Tai Fook’s share price has come down by around 21%. Its rival, Luk Fook Holdings (International) Ltd., is down 16% year-to-date.

The stocks have been pummeled by slowing growth in Hong Kong retail sales for the December to February period. In January, retail sales in Hong Kong rose 14.9% year-on-year – which, for an economy heavily reliant by discretionary spending by visitors from across the border, just didn’t quite cut it. As  a comparison, December’s year-on-year increase was 23.5%.

Seasonal factors played a role. Brokerage UOB KayHian said in a note that the proximity of the Lunar New Year this year to Christmas slowed visitor arrivals to Hong Kong. An exceptionally cold January also delayed the traveling plans of some visitors.

But Citigroup sees signs of a recovery in retail sales in March. Figures for the month will be released in the next few days. CIMB believes a slowdown is only natural, after the spectacular run jewelers enjoyed over the past two years, and that there are no grounds to think Chinese people’s appetite for jewelry is abating.

See more on this story at Deal Journal

China has generally implemented reforms in a gradualist or piecemeal fashion.

Economic development has been more rapid in coastal provinces than in the interior, and approximately 200 million rural laborers and their dependents have relocated to urban areas to find work.

The People’s Republic of China is the world’s second largest economy after the United States by both nominal GDP ($5 trillion in 2009) and by purchasing power parity ($8.77 trillion in 2009).

Nevertheless, key bottlenecks continue to constrain growth.

The two sectors have differed in many respects.

A report by UBS in 2009 concluded that China has experienced total factor productivity growth of 4 per cent per year since 1990, one of the fastest improvements in world economic history.

By the early 1990s these subsidies began to be eliminated, in large part due to China’s admission into the World Trade Organization (WTO) in 2001, which carried with it requirements for further economic liberalization and deregulation.

On top of this, foreign direct investment (FDI) this year was set to “surpass $100 billion”, compared to $90 billion last year, ministry officials predicted.

In 2009, global ODI volume reached $1.1 trillion, and China contributed about 5.1 percent of the total.

China is aiming to be the world’s largest new energy vehicle market by 2020 with 5 million cars.

Although China is still a developing country with a relatively low per capita income, it has experienced tremendous economic growth since the late 1970s.

Agriculture is by far the leading occupation, involving over 50% of the population, although extensive rough, high terrain and large arid areas – especially in the west and north – limit cultivation to only about 10% of the land surface.

Except for the oasis farming in Xinjiang and Qinghai, some irrigated areas in Inner Mongolia and Gansu, and sheltered valleys in Tibet, agricultural production is restricted to the east.

Due to improved technology, the fishing industry has grown considerably since the late 1970s.

Oil fields discovered in the 1960s and after made China a net exporter, and by the early 1990s, China was the world’s fifth-ranked oil producer.

Alumina is found in many parts of the country; China is one of world’s largest producers of aluminum.

Coal is the single most important energy source in China; coal-fired thermal electric generators provide over 70% of the country’s electric power.

Most of China’s large cities, like Shanghai, Tianjin, and Guangzhou, are also the country’s main ports.

Read this article:
Shine Comes Off Chinese Jewelers

The Cabinet has during yesterday’s meeting decided to complete the implementation of the THB 15,000 salary base for civil servants with a bachelor’s degree by January 2014 as well as adjust salaries of other types of employees upwards .

Read the original here:
Salary raise to 15,000 baht for civil servants postponed to 2014

A severe drought and a decline in rice prices in early 2010 do not bode well for agricultural production and consumption, although increased employment in manufacturing will partly offset the impact to agriculture.
While the Thai government is aware of the need for these reforms, political uncertainties have made it more challenging to pursue them

Thailand’s equity market bounced back strongly from the global crisis in 2009, with a total shareholder return (TSR) of 91% for the year 2009 against a 36% decline the year before. Ultra-lax monetary policies and massive public spending across the globe helped spur a quick turnaround from the worst global downturn since the Great Depression.
There is a growing split in terms of family-run companies. There are those still dominated by the older generation, who are still conservative and don’t want to do much. And there are firms led by the younger generation, who are more active about transparency and investor relations.

Thailands National Disaster Warning Centre has issued an evacuation order for residents and tourists along the Andaman coast after a huge earthquake struck off Indonesian Sumatra on Wednesday.

Read more here:
Indonesia quake triggers tsunami alert in Thailand

Thailand’s open and tightly integrated into global trade economy experienced a V-shape contraction and recovery from late 2008 through late 2009
However, the upside is limited due to political and regulatory uncertainty, including from possible political violence and the Map Ta Phut court case. The government investment plan is proceeding at a slow pace, but public investment should contribute to growth.

Pathom Yongvanich, a founding partner of PYI, says Asian markets have not only benefited from the inflow of international capital, but also from the growing sophistication of Asian investors themselves.
‘‘Institutional investors want to have the ability to get in or out of a stock without significantly influencing the share price.

Thailand Business News –

The top 10 listed property firms saw presales worth more than Bt40 billion in the first quarter of the year thanks to the return of demand for homes that was suspended during the fourth quarter of last year because of the floods.

Read more:
Top 10 Thai property firms harvested more than Bt40 billion presales in Q1
Thailand’s property sector is showing signs of an early recovery, as selective investors return to purchasing real estate stocks and actual property.

Some of the credit goes to a one-year government stimulus package that reduces the Special Business Tax from 3.3% to 0.11%, extends the reduction on transfer taxes from 2% to 0.01% and mortgage registration fees and provides a tax deduction on mortgage principal and interest.
Thailand’s property indicators show:

1.The Stock Exchange of Thailand (SET) index began rebounding in April 2009, and property stocks – while the first to fall in H2/08 – were amongst the first to recover
2. The Bank of Thailand (BoT) has lowered its policy interest rate four times since December 2008, prompting banks to reduce the minimum lending rate (MLR) from 7.25% to 6.25%
3. A continued drop in sales of durable goods due to uncertainty surrounding the economy is highlighted consumer confidence index (CCI) to a historic low of 72.8 in Q1/09 and New housing registrations in Bangkok and surrounding areas fell 43.8% in Q1/09

While focusing on different products, detached houses and townhomes in greater Bangkok, the company spent much of last year improving its key financial ratios.

Several factors have contributed to the strong and rapid rebound.

The severity of the global financial crisis also saw the government introduce additional sweeteners for buyers — a 300,000-baht income tax deduction for any buyers of a new home that was transferred within 2009. At the same time, mortgage interest that could be deducted from taxable earnings was increased to 100,000 baht from 50,000 and has now become a permanent tax benefit.

Hotel Gal sees the world

Selamat siang (good afternoon) from Kuala Lumpur! A lot has happened since my last post; for starters, I got a job … and an apartment!

Just to give you an idea of what I do…

After settling into KL life, Kim and I both had a few interviews lined up. I scored on my third interview with a hotel close to the Putra World Trade Centre (PWTC) – letʼs call it Hotel Bintang*. Youʼre ʻlookingʼ at their new Housekeeping Attendant! Itʼs a pretty swanky business hotel and I just have to clean the guest rooms. Itʼs not glamorous, but itʼs pretty much the only job available which didnʼt require learning Malay!

Fun times

The people here are unbelievably friendly. They have the biggest smiles and itʼs impossible not to smile back when they turn on the charm – I come home with sore cheeks, for real. There are a few other foreigners in housekeeping with me – Martin from Germany, Ashley from the States, and Jess from Ireland. Thereʼs also Sofea and Ahmad, who are locals. Itʼs been great having a few friendly faces to trade jokes with, and the days have just been flying by.

Our home away from home!

Kim and I now live in the PWTC area, which is super convenient for me since I can walk to work. Kim got an Assistant Kitchen Helper job in the KLCC, which is the Kuala Lumpur City Centre, so she takes public transport to work – the KTM Commuter or the Rapid KL Light Rail Transit (LRT). Luckily theyʼre practically on our doorstep, so she doesnʼt have to travel far either.

The area weʼre in has quite a young vibe – lots of students and young foreigners like ourselves, probably because the universityʼs nearby, so there are lots of affordable condos around here. Weʼve got quite a good deal – we each rent a room (itʼs a three bedroom condo) and our flatmate is a local, Chris. Heʼs really cool, and has been showing us around in our free time.

Putra World Trade Centre

Getting settled

Whatʼs awesome about the condominium is that it has a shared swimming pool, a small gym, and a tiny convenience store (a bit like a tuck shop). Weʼre not far from the shopping mall either though, so weʼre really sorted.

We were sad to say goodbye to Hotel KL* but you can only eat so many buffet breakfasts… Plus itʼs nice having my own space. Iʼve got my room all set up, and have been spending a lot of time in Chinatown doing some budget shopping!

The Petronas Twin Towers

Iʼm slowly getting the hang of finding my way around. I mostly use public transport or walk everywhere. KLʼs quite a green city with lots of parks, which I hadnʼt expected. In every spare moment we get, weʼve been on a sightseeing mission – MUST SEE EVERYTHING!!!

So far Iʼve ticked off the Petronas Twin Towers and skybridge, the KLCC park, the Suria KLCC mall, the Petrosains Science Centre, Chinatown, Kampung Baru, the Batu Caves, and lots lots more. But thatʼs a story for another time…

* Not its real name

Link to article:

Settling into Malaysian life

Originally posted here:
Settling into Malaysian life