Column: Interview
“Over the past 10 years, Thailand’s economy has grown well below its potential. which is worrying Average growth of 2%, when in fact Thailand’s potential should grow at least 4-5% That is a heavy burden on this government to restore the status of the country.” A heavyweight in the capital market industry said “Dr. Kongkiat Opaswongkarn,” Chairman of the Executive Board of Asia Plus Group Holdings Public Company Limited (ASP) and Asia Plus Securities Company Limited, in the recent business plan and strategy announcement for 2024.
Advertisement – Continue reading the article below.
There is no sign of foreigners returning to invest.
Dr Kongkiat said that over the past 10 years, the foreign investment situation (Fund Flow) has been seen as continuously bleeding. Because there was a flow of 1 trillion baht from the Thai stock market and the Thai bond market, most of it flowed from the stock market. Although Thai funds or Thai investors come to buy shares Stocks are having a hard time rising. Because too much money flows out Most of them cut losses (Cut Loss) to make a profit in other countries.
“As for this year, I think we will likely not see much cash flow. Because I’ve gone out a lot. Most of the people still there are more like Join Venture Partners, which means they can’t sell because they are partners. At present, we may not see any signs of return to foreign investment. Because it has to be accepted that the Thai economy is growing at a low rate. And there are concerns about politics again.”
Advertisement – Continue reading the article below.
The government’s big challenge is to attract investment.
Dr Kongkiat said that Thailand is currently “eating old merit” in terms of tourism. exporting car and electronic components Some of them are about to be taken away by neighboring countries. Whether it is a production base for electric vehicles (EV) and electronics especially Indonesia and Vietnam which have a clear policy to promote tax reductions
At the same time, foreign direct investment (FDI) flows in less. It reflects low economic growth and the lack of attractiveness of the Thai stock market. But we see the distribution of investment to other countries. which has more interesting points Whether it is Vietnam, India, Indonesia or even Lao PDR which is now quite connected with China.
Advertisement – Continue reading the article below.
Then ask how Thailand will adapt. To make FDI investment attractive again, I think it is something that this and future governments must pay attention to. Where are Thailand’s “strong points”? I believe that Thailand has the potential to be a logistics center. Deli food center
and the world’s tourist center But in order to maintain it, much more investment is needed, such as building a new airport. Build a deep sea port or build a concert center with a capacity of approx. 80,000-100,000 people
“These things In the circle of businessmen, some began to speak. Regarding the Land Bridge project This is a big project and will help here. Because it is believed that a refinery will be established on the Andaman side. Import oil from the Middle East and send it through pipelines to Japan, China, etc. And if you aim to become a center for EV cars, you will have to plan how to adjust the various supply chains in the traditional car business to survive. “
As for the digital money wallet policy “Dr. Kongkiat” said he does not fully agree. Because an investment must have a long-term return. Not for short term use and worried about debt burden If it wants to help people for a short period, it would be more appropriate to recommend that the bank temporarily reduce interest rates or stop debts for certain groups of vulnerable people .
Expect the MPC to cut interest rates 1-2 times.
“Dr. Kongkiat” also said that the trend of policy interest rates is considered that the upward cycle is over. It is estimated that the United States Federal Reserve (Fed) will reduce interest rates by 1% a total of 4 times this year, starting with the reduction in June 2024. Regarding Thailand’s policy interest rate, it is expected that the Monetary Policy Committee will (MPC) will reduce it 1-2 times this year, each time not more than 0.25%.
“There is room where the interest can be reduced. Looking through the real interest rate, which is currently +3.3%, it is considered enough ammunition. But you have to balance the timing well. Over time, interest rates fall. It will encourage risky assets and stock prices to rise. But this round will encounter an unprecedented event, that is, reducing interest rates at the same time as the Fed withdraws money from the system or does a QT to reduce positive impact the interest rate adjustment. causing the stock price not to rise fully As every time in the past, this was reduced by excess liquidity in the system which disappeared.”
ASP revenue target growing 10-15%
Regarding ASP’s direction, “Dr. Kongkiat” said that the aim in the next 3 years (2024-2026), is to have total income grow by 10-15% per year, driven through 4 main businesses which n balanced:
1. Securities business (Securities Asia Plus) 2. Investment business (Asia Plus Group Holdings PCL.) 3. Asset management business (Asset Plus Asset Management) and 4. Consulting business (Asia Plus Consulting Co., Ltd.)
Read the original news at: Dr. Kongkiat Opaswongkarn “The government must restore the status of the country”
Follow the latest news every day here.
– Website:
#Kongkiat #Opaswongkarn #government #restore #status #country #Prachachat #Turakij
