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Thailand to expand trade and investment with India

Thailand to expand trade and investment with India

New Delhi business newspaper economic times says that India and Thailand will sign a free trade agreement by the middle of this year, according to Thai Prime Minister Yingluck Shinawatra.

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Thailand to expand trade and investment with India

Sectors linked to external demand (namely, manufacturing, hotels and transport) have been the main contributors to growth since the 1997-98 Asian financial crisis, and have also determined the dynamics of the economy in 2008-09. These sectors have accounted for almost all of the annual changes in real GDP.
Overall, domestic demand should provide a positive but limited contribution to growth: vulnerable households lost ground in 2009 and risks are substantial in 2010, as falling agricultural output due to the current drought may offset opportunities from the improved overall economic environment. Household consumption levels, which are highly correlated with the poverty rate, contracted in 2009 despite the rebound in the last quarter of the year, suggesting a likely increase in the poverty rate compared to 2008, especially when compounded by the loss in purchasing power from the food and fuel crisis of 2008. The outlook for 2010 is uncertain : average wages are likely to increase, thanks to the reallocation of labor from agriculture to manufacturing. Although labor markets appear very tight, with unemployment below 1 %, the data do not account for the large number of workers who moved to lower-productivity jobs in agriculture and informal services due to the crisis. Many of these workers are now returning to manufacturing, which offers higher wages than agriculture.

Total shareholder returns (TSR) for 2009 are calculated by assuming that investors reinvest all cash received over the course of the year to determine a total return from one’s investment. The 2009 analysis covers 505 companies from the Stock Exchange of Thailand and the Market for Alternative Investment and is based on share valuations as of Dec 31 and dividend payments made over the 2009 calendar year.
The TSRs for the two groups are similar.

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What Next for Taiwan’s Opposition?

What Next for Taiwan’s Opposition?

Agence France-Presse/Getty Images
Tsai Ing-wen, the presidential candidate of Taiwan’s opposition Democratic Progressive Party, waves to supporters at her campaign headquarters in New Taipei City on January 14, 2012 after losing her bid to challenge incumbent Ma Ying-jeou.

Taiwan’s opposition Democratic Progressive Party leader Tsai Ing-wen made history by being the island’s first female presidential candidate, but her wider-than-expected defeat last Saturday to incumbent Ma Ying-jeou of the Kuomintang has raised questions about the future of her moderate approach.

Ms. Tsai finished with 45.6% of the vote to Mr. Ma’s 51.6%, a loss that prompted her to say she would resign as DPP leader.

A professor before she became a politician, Ms. Tsai is often credited with lifting the pro-independence DPP out of the mire after former president Chen Shui-bian’s rocky and scandal-ridden tenure at the helm.

“She brings gentleness and sensibility to the party,” Joseph Wu, a former Taiwan envoy to the U.S. and a top advisor to the DPP, said shortly after the election. “She is also very capable in facilitating talks between the factions in the party and consolidating opinions.”

That conciliatory leadership style and approachable personality were what drove her surging popularity both within and outside the party, he added.

But Ms. Tsai also won support by dialing back the DPP’s pro-independence rhetoric, analysts said. An example of that more moderate China policy was her appeal for further dialogues with Beijing and her promise to accept all 16 cross-strait trade agreements signed under Mr. Ma’s leadership.

Although she adamantly rejected the 1992 Consensus—a tacit understanding between the KMT and the Chinese Communist Party that Taiwan and China are one country but each is free to define the term as they see fit—her proposal of a new “Taiwan Consensus” did not completely shut out the option of an eventual unification, a sharp detour from the policy pursued by Mr. Chen.

Despite that softening, Ms. Tsai’s candidacy still did not appear sit well with leaders in Beijing, who warned that any deviation from the 1992 Consensus would compromise the growing harmony on the Taiwan Strait. During the campaign, the “Taiwan Consensus” became one favorite points of attack for Mr. Ma and the KMT, who pointed to it as evidence that Ms. Tsai was naïve to the realities of cross-strait relations.

Yet some analysts said they expected Beijing might still be open to dialogue with a Tsai administration — a notion considered far-fetched during the previous DPP regime.

What effect Ms. Tsai’s loss will have on the party’s platform remains to be seen. The fact that she lost by six percentage points – late polls had her losing by between 3% and 5% — is already being interpreted by some as an indictment of her decision to emphasize social equality and her deviation from the party’s anti-China orthodoxy.

“Obviously, a campaign focused on social justice was not enough to excite the traditional DPP supporters,” said Wu, adding in the future, the party should incorporate more of the possible threats to Taiwan’s sovereignty under the KMT such as China’s continual interference in Taiwan’s quest for more international participation.

Shelley Rigger, a professor of political science at Davidson College expressed similar views, saying that while Ms. Tsai should be lauded for restoring burnishing the DPP’s image, she might have overlooked a key constituency – the “green” pro-independence die-hards—who might constrain the DPP from moving to the center.

“[Tsai] did as well as anyone could have done at pacifying the deep greens, by refusing to accept the ’92 consensus, and at the same time minimizing the role of those ideological issues in the elections, by trying not to talk about that anymore than she had to. The result was still hitting that 45% ceiling,” she said.

Ms. Tsai’s tenure as party leader will officially terminate on March 1, the DPP said, and it’s unclear what she plans to do next. She has said she plans to maintain an office and rumors suggest she may take the reins at a think tank she helped set up.

Analysts say Beijing is concerned less about Ms. Tsia’s future and more about who her successor might be and whether that person will continue the moderate stance she has championed.

“Beijing takes a great interest in the DPP’s leadership because there is always a chance that the DPP might return to power. But I think no matter who becomes the next DPP chairman, the party will retain the more moderate stance,” said Shih Cheng-feng, a dean at National Dong Hwa University.

Party heavyweights Frank Hsieh and Su Tseng-chang are widely speculated to be vying for the seat, though some political commentators on the island say the party should allow up-and-coming stars, such as some of the current DPP county magistrates, to have a shot.

Whether or not Ms. Tsai tries her luck again in 2016, her contribution to the DPP seems likely to be remembered as revolutionary, in a moderate way.

– Jenny W. Hsu

Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2009 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income.

In 2009, the global economic downturn reduced foreign demand for Chinese exports for the first time in many years.

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).

Available energy is insufficient to run at fully installed industrial capacity, and the transport system is inadequate to move sufficient quantities of such critical items as coal.

The two most important sectors of the economy have traditionally been agriculture and industry, which together employ more than 70 percent of the labor force and produce more than 60 percent of GDP.

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.

The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship, whilst retaining state domination of the economy.

China now ranks as the fifth largest global investor in outbound direct investment (ODI) with a total volume of $56.5 billion, compared to a ranking of 12th in 2008, the Ministry of Commerce said on Sunday.

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

China reiterated the nation’s goals for the next decade – increasing market share of pure-electric and plug-in electric autos, building world-competitive auto makers and parts manufacturers in the energy-efficient auto sector as well as raising fuel-efficiency to world levels.

In large part as a result of economic liberalization policies, the GDP quadrupled between 1978 and 1998, and foreign investment soared during the 1990s.

Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Horses, donkeys, and mules are work animals in the north, while oxen and water buffalo are used for plowing chiefly in the south.

Coal is the most abundant mineral (China ranks first in coal production); high-quality, easily mined coal is found throughout the country, but especially in the north and northeast.

There are also deposits of vanadium, magnetite, copper, fluorite, nickel, asbestos, phosphate rock, pyrite, and sulfur.

China also has extensive hydroelectric energy potential, notably in Yunnan, W Sichuan, and E Tibet, although hydroelectric power accounts for only 5% of the country’s total energy production.

Other leading ports are rail termini, such as Lüshun (formerly Port Arthur, the port of Dalian), on the South Manchuria RR; and Qingdao, on the line from Jinan.

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What Next for Taiwan’s Opposition?

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Thailand plans Big Celebration for Chinese Year of the Dragon

Thailand plans Big Celebration for Chinese Year of the Dragon

In 2012, the Year of the Dragon, Chinese New Year falls on 23 JanuaryMany activities have been planned in Bangkok and other major provinces in celebration of the upcoming Chinese New Year and to welcome the Year of the Dragon.This years Chinese New Year’s Day falls on January 23.

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Thailand plans Big Celebration for Chinese Year of the Dragon

The output of other sectors was also affected during the recent crisis, although less markedly because they had been growing slower than the sectors linked to external demand.
Policies that could contribute to reducing Thailand’s dependence on foreign demand include a phased liberalization of the services sector, boosting transport infrastructure, a reform of educational curricula and improved access and quality of higher education to boost skills of the labor force, better integration of universities, firms and government, and improved social safety nets

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.
Mr Pathom noted that past a certain level of market capitalization, investors appear to take a different view on valuations.

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China’s Stats Bureau in Odd Ownership Spat Over Important Index

China’s Stats Bureau in Odd Ownership Spat Over Important Index

European Pressphoto Agency

As if the reputation of China’s economic data wasn’t shaky enough already, an odd bureaucratic tug of war is casting new doubt on one of the country’s more closely watched indicators.

China’s official Purchasing Managers Index (PMI), a gauge of the nation’s manufacturing activity, has been jointly released by the National Bureau of Statistics and an industry association called the China Federation of Logistics and Purchasing (CFLP) since 2005. Now, however, each body is trying to claim the data for itself.

The dispute originated with a statement posted on the Bureau of Statistics website on January 6 (in Chinese) saying it was the bureau that conducted the manager surveys that underpin the index conducted by the bureau. According to the statement, the CFLP merely published the survey under the authorization of the bureau.

The statement also quoted Pan Jiancheng, deputy director of the bureau’s China Economic Monitoring & Analysis Center, as saying the bureau planned to integrate all economic climate surveys and publish them as a group because “whoever conducts the survey should be the one to publish it.”

Three days later, the federation said in a statement on its own website (in Chinese) that PMI would not be part of the official climate surveys to be published by the statistics bureau.

“Somebody from the Bureau of Statistics is unhappy that we are doing such a good job with the PMI and decided to get tricky,” Cai Jin, deputy director of the CFLP, told the Shanghai-based Oriental Morning Post this week (in Chinese). “This has very negative influence on China’s PMI data.”

CFLP said in its statement that it submitted a request to establish the index in 2004 and that the NBS said it supported the proposal but asked the federation can make use of bureau’s existing enterprise survey resources to avoid redundancy. “Our federation is responsible for the release, analysis and interpretation of the survey,” CFLP said in its statement, adding that it is common practice for independent organizations to publish PMI to ensure objectivity.

According to its website, the CLFP, which claims to have thousands of purchasing manager members, is the only purchasing industry association approved by the State Council, China’s cabinet.

In the days since the Bureau of Statistics published its statement, Mr. Cai said, financial institutions and news media have pelting the CLFP with questions, expressing concern that the bureau might manipulate PMI based on other macroeconomic data.

“That’s why we have to clear things out,” Oriental Morning Post quoted Mr. Cai as saying.

China’s Purchasing Managers Index rose to 50.3 in December compared with 49.0 in November, indicating an increase in manufacturing activity. The rise came after HSBC Holdings PLC’s survey of purchasing managers showed manufacturing activity contracting in December, though at a more moderate pace than in the previous month.

The HSBC PMI has showed contractions in manufacturing in all but one of the past six months, painting a significantly less optimistic picture than the Chinese government’s competing PMI. Analysts say the HSBC PMI has been weaker because it surveys more purchasing managers from smaller firms, which have had difficulty accessing loans from banks.

– Liyan Qi

Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment.

In 2009, the global economic downturn reduced foreign demand for Chinese exports for the first time in many years.

China is the world’s fastest-growing major economy, with an average growth rate of 10% for the past 30 years.

Available energy is insufficient to run at fully installed industrial capacity, and the transport system is inadequate to move sufficient quantities of such critical items as coal.

Agricultural output has been vulnerable to the effects of weather, while industry has been more directly influenced by the government.

China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites, but most of its industrial output still comes from relatively ill-equipped factories.

China’s ongoing economic transformation has had a profound impact not only on China but on the world.

Both forums will start on Tuesday.

But “this is just a beginning.

It also aims to sell more than 15 million of the most fuel-efficient vehicles in the world each year by then.

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.

China ranks first in world production of red meat (including beef, veal, mutton, lamb, and pork).

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.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

China also has extensive hydroelectric energy potential, notably in Yunnan, W Sichuan, and E Tibet, although hydroelectric power accounts for only 5% of the country’s total energy production.

There are railroads to North Korea, Russia, Mongolia, and Vietnam, and road connections to Pakistan, India, Nepal, and Myanmar.

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Thailand scores Yingluck a 6.49 out of 10

Thailand scores Yingluck a 6.49 out of 10

A recent poll has revealed that Thailand’s Prime Minister Yingluck Shinawatra scored 6.49 on her overall performance as Prime Minister. A survey shows many Thais see PM as determined in her role. Despite the mediocre rating, the  4,238 participants in the Suan Dusit Poll gave her credit for her attitude in the top job with 7.08 out of 10.

The survey was undertaken with all of Thailand’s provinces represented on various factors to gauge their opinions of the performance of the current government. According to the results, people were far more critical towards the government as a whole, with the cabinet scoring  6.44 for its intention to work, 6.33 for sincerity, 6.21 for   performance, 6.13 for not interfering in the work of permanent officials, 6.09 for unity, and 5.87 for honesty. For individual ministers, respondents gave the Defence Ministry the highest score of 6.63, Tourism and Sports 6.56, Tourism and Sports 6.44, Agriculture and Agricultural Cooperatives 6.43, Foreign Affairs 6.42, Culture 6.41, Social Development and Human Security 6.40, Education 6.37, Industry 6.36, Finance 6.33, Science and Technology 6.27, Labour 6.13, Interior 6.10, Natural Resources and Environment 6.09, Energy 6.06, Justice 6.05, Commerce 5.91, Transport 5.87, and Information and Communication Technology 5.84. Opinion of the government varied according to region, with the score for overall performance at 7.29, while the South were least supportive, providing a rating of 5.44. Related Video

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Thailand scores Yingluck a 6.49 out of 10

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Singapore Subway Snags Sidetracked by Race

Singapore Subway Snags Sidetracked by Race

Bloomberg A Mass Rapid Transport (MRT) train travels past public housing complexes in Singapore in March 2010. Four severe subway outages in five days and hundreds of thousands of agitated commuters later, Singapore’s beleaguered transport officials might be forgiven for wishing for a turn of luck. But fate’s a cruel mistress. Even as government mandarins scramble to douse the flames, a ruling People’s Action Party lawmaker inadvertently fanned them with a racially tinged gaffe on live television, sparking a rare spell of public disagreement within party ranks. More In Singapore Was Woz Right? Christmas Dinner With a Southeast Asian Twist Amobee Focuses on the Rest of Asia Singapore Nonprofit Expects Stable Transition in Pyongyang Peranakan Food for the 21st Century Seng Han Thong – a former newspaper editor-turned-politician – said Monday in a panel discussion on the recent failings of subway operator SMRT Corp., that SMRT officials had said last week’s transport chaos was exacerbated by the inability of their Malay and Indian staff to speak with commuters in fluent English. “I notice that the (SMRT public relations) mention that, some of the staff, because they are Malay, they are Indian, they can’t converse in English good, well enough, so that also deters them, from but I think we accept broken English,” Mr.

Seng said , arguing that SMRT staff should communicate during emergencies regardless of their language skills. While SMRT officials had confessed that some staff faced language difficulties, they didn’t highlight any ethnic group in particular. Critics pounced, claiming that Mr.

Seng, an ethnic Chinese, betrayed racial prejudices by suggesting the workers in question were Malays and Indians. Mr.

Seng apologized Thursday on his Facebook page , but not before drawing hundreds of online rebukes from members of the public, and a rare rap from a senior PAP colleague. Minister of State for Community Development, Youth and Sports Halimah Yacob, who is Malay, expressed disappointment on her Facebook page , saying she was “disturbed” by the remarks, calling them “inappropriate and unfair.” Yet Mr.

Seng’s faux pas may end up just a sideshow as cracks widen in a key pillar of usually slick Singapore Inc. Prime Minister Lee Hsien Loong has pledged an official inquiry into the breakdowns, the worst in the Mass Rapid Transit’s 24-year history, while SMRT has apologized and promised broad corrective measures. Nonetheless critics are questioning the government’s hand in the latest disruptions, and probing fundamental assumptions underpinning Singapore’s public-transport framework. Given the government’s role in corporatizing public transport and stretching the infrastructure to meet growing demand, “service failures by privatized or semi-privatized transport services are seen as a government responsibility by voters,” said Garry Rodan, an academic studying Southeast Asian and Singapore politics at Australia’s Murdoch University.

The government has long insisted that profit incentives are the best way to spur efficiency in public transport: The incorporation and public listing of SMRT in 2000 was a key step in this direction, although state-investment firm Temasek Holdings took a controlling 54% stake. But critics say recent events reveal the paucity of these claims, and systemic regulatory failings. “It is becoming clearer by the day that the way the transport chaos was handled has exposed major cracks in SMRT’s company culture and the regulator’s inability to act on these loopholes early in the game,” PN Balji, former editor of Singapore’s TODAY newspaper, wrote in a commentary published by Yahoo .

The Workers’ Party, the largest opposition group in Parliament, questioned whether the breakdowns were due to under-spending in maintenance and upgrades. “… were the lack of essential investments a result of pressure on the public-listed MRT operators to minimize costs and maximize profits for the benefit of their shareholders, at the expense of the 2.3 million commuters?” the party said in a statement last week . Others turned their attention on crisis-management failures, such as inadequate back-up transport provisions and the lack of relief response from relevant agencies like the police and transport regulator. Yet some citizens take a more blasé attitude, claiming those most incensed by the disruptions have been pampered by years of efficient transport service. Foreign technocrats certainly still love Singapore; the International Association of Public Transport announced just this week it will base its Asia-Pacific research and educational center here, citing the island’s record of “excellent public transport development with continued innovation.”

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Elephant in Room for Dalai Lama: China

Elephant in Room for Dalai Lama: China

Associated Press

The Dalai Lama spoke Saturday at Penguin Books India’s annual lecture in New Delhi, but with ground rules: No political questions.

His Holiness says he no longer sees himself as a political figure and, while speaking at New Delhi’s India Habitat Centre, kept to spiritual matters rather than get embroiled in discussions about China’s displeasure at his presence here.

Read more on India Real Time.

In recent years, China has re-invigorated its support for leading state-owned enterprises in sectors it considers important to “economic security,” explicitly looking to foster globally competitive national champions.

The Chinese government seeks to add energy production capacity from sources other than coal and oil, and is focusing on nuclear and other alternative energy development.

China is the world’s fastest-growing major economy, with an average growth rate of 10% for the past 30 years.

Nevertheless, key bottlenecks continue to constrain growth.

The two sectors have differed in many respects.

The technological level and quality standards of its industry as a whole are still fairly low, notwithstanding a marked change since 2000, spurred in part by foreign investment.

The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship, whilst retaining state domination of the economy.

China now ranks as the fifth largest global investor in outbound direct investment (ODI) with a total volume of $56.5 billion, compared to a ranking of 12th in 2008, the Ministry of Commerce said on Sunday.

From January to June, the ODI in financial sectors was up by 44 percent to $17.9 billion, and in July alone, the ODI recorded $8.91 billion, the highest this year.

China reiterated the nation’s goals for the next decade – increasing market share of pure-electric and plug-in electric autos, building world-competitive auto makers and parts manufacturers in the energy-efficient auto sector as well as raising fuel-efficiency to world levels.

China’s challenge in the early 21st century will be to balance its highly centralized political system with an increasingly decentralized economic system.

Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.

China is the world’s largest producer of rice and wheat and a major producer of sweet potatoes, sorghum, millet, barley, peanuts, corn, soybeans, and potatoes.

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.

There are also deposits of vanadium, magnetite, copper, fluorite, nickel, asbestos, phosphate rock, pyrite, and sulfur.

China also has extensive hydroelectric energy potential, notably in Yunnan, W Sichuan, and E Tibet, although hydroelectric power accounts for only 5% of the country’s total energy production.

Although a British crown colony until its return to Chinese control in 1997, Hong Kong has long been a major maritime outlet of S China.
Rivers and canals (notably the Grand Canal, which connects the Huang He and the Chang rivers) remain important transportation arteries.

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Elephant in Room for Dalai Lama: China

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Thailand asks Facebook to block 60,000 accounts on lese majesté charges

Thailand asks Facebook to block 60,000 accounts on lese majesté charges

Facebook button could land in jail in ThailandThailand’s ICT Ministry told Facebook to block more accounts with suspected lèse majesté contents: 26,000 URL in Aug-Sept and 60,000 URL in Oct-[Nov]. Local Facebook users risk violating the computer law unknowingly by pressing the “like” or “share” button included with posted comment on anti-monarchy messages on Facebook, Thailand’s Information and Communication Technology Minister Anudith Nakornthap said.

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Thailand asks Facebook to block 60,000 accounts on lese majesté charges

Sectors linked to external demand (namely, manufacturing, hotels and transport) have been the main contributors to growth since the 1997-98 Asian financial crisis, and have also determined the dynamics of the economy in 2008-09. These sectors have accounted for almost all of the annual changes in real GDP.
While the Thai government is aware of the need for these reforms, political uncertainties have made it more challenging to pursue them

Chinese investment funds, Middle Eastern petrodollars — there is a huge amount of new money being channeled into the Asian capital markets.
Mr Pathom noted that past a certain level of market capitalization, investors appear to take a different view on valuations.

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