The Thai economy will suffer from weaker export increase and rising volatility in capital flows as the US economic slump will drag down global trade, say economists. Manu Bhaskaran, a partner and director of Singapore-based Centennial Asia Advisors, said the US was predictable to suffer from weak growth over the next 18 to 24 months, resulting in a decelerate in global trade.

He said this week’s rate cut by the Federal Reserve had ”come too late”, while the fiscal stimulus programmed was unlikely to prevent a sharp downturn in the US housing market from spilling into the overall economy. ‘The problem in the US is scattering. It is just a matter of time before Asian economies will see their growth forecasts revised downward,” he said.

”It takes nine to 12 months for monetary policy to take effects. The Fed only moved seriously in January. And the US will have a fiscal boost in July and August, leading to a temporary economic boost in the third quarter, but it won’t prevent the credit market from failing.”

The Fed on Tuesday cut its Fed Funds rate by 0.75 percentage points to 2.25%, and announced a range of measures to provide emergency liquidity to the credit markets shaken by the crumple of the investment bank Bear Stearns.

Mr. Bhaskaran, speaking at a conference held yesterday by Kasikorn Securities, said the dollar was expected to keep depreciating over the next 3 years, helping narrow the US current account deficit.

”Risk aversion is rising and it has crystallized into a big trouble. The dollar could move up against the euro over the next few months. But it is going to go down essentially in the long term,” he said.

”This is a crucial shift in the balance of power away from the US. There will be low US growth and the return on the dollar will be lower for a period of time.”

Meanwhile Japan would prove to be a drag on the world economy, considering recent economic trends. Growth in Europe has also exposed signs of slowing.

Mr. Bhaskaran said that interest rate cuts in the US could help the mortgage mortgage market, which has been surprised since last year due to the sub-prime mortgage predicament.

Meanwhile, liquidity from self-governing wealth funds from the Middle East and Asia could help maintain the US financial market and also recapitalize US banks.

Mr. Bhaskaran said it was predictable that a slowing US economy would hurt Asia.

He cited a report by the Asian Development Bank and the Monetary Authority of Singapore saying that two-thirds of Asian exports eventually hinged on the US consumers.

But Asian countries have shown increased resiliency to resist global shocks, thanks to stronger banking systems, high farm income and low unemployment, Mr. Bhaskaran said.

”The end of political suspicions in Thailand has also helped business and consumer confidence to recover. This, along with cramped demand, has given some support to the Thai economy,” he said.

But James McCormack, senior director and head of Asia sovereign ratings for Fitch Ratings, said political risk remained a concern for investors.

He noted while Thailand’s exports were increasingly diversified, half of the country’s exports to the US were computer parts that relied on US consumer demand.

”But I am optimistic for 2008 that the Thai economy can get domestic consumption back. We have started to see a pickup from pent-up demand in consumption and investment,” he said.

Mr. McCormack noted, however, that house prices were also in turn down for the first time since the 1997-98 crisis, in line with slower construction expansion and land transactions.

He said that Thailand should move forward to increase infrastructure investment to avoid falling behind other countries in the region, predominantly Malaysia and Vietnam.

Thailand’s overall fiscal stability remained resonance, he said, even with higher deficit spending.

Mr. McCormack noted that tax collections, as a proportion of GDP, had risen to 17% last year from 14% in 2000.

”The fiscal risk is still manageable, even with the tax cuts and public spending deficit. The public finances are in a good position,” he said.

Pands Group, a Thai family-owned mining and milling company has set up a joint venture with Australia’s Matsa Corp. to invest at least $200M US Dollars over the next 2 years to establish new mines in Thailand and Laos.

Pands, which has been in the mining business for forty years, and the Australian miner both hold an equal 50%-stake in the joint venture, Pands Matsa Corporation, which was set up earlier this year, said Thoomchan Samitasiri, Pands’ deputy managing director.

The venture has invested about $10 million in exploration development of its mine in Loei province in rummage around of zinc, silver and copper.

”The exploration would be done by the middle of next year and we will then invest another $200 million for the production,” Mr. Thoomchan said.

Currently, Pands operates mines in Kanchanaburi, Tak and Nakhon Si Thammarat province. It mainly produces baryte used in petroleum exploration and dolomite for steel industry.

Mr.Thoomchan said the joint-venture company was waiting for the Laotian government to grant it a mining licence there. So far, the company has invested $5 million to develop steel mine in Chaisomboon, north of Vientiane.

”Approximately 800 million baht would be invested in the project, which is expected to become operational by the end of this year for the production of 70,000 to 200,000 tons of steel per month,” he said.

The project in Laos primarily targets steel smelting facilities in Thailand, he added.

Pands yesterday announced the sale of a 70% stake in wholly owned Pands Group Logistics Co (PGL) to Eternity Grand Logistics Plc (ETG), a logistics services provider listed on the Market for Alternative Investment (MAI) stock market.

”By off-loading a stake in our logistics business, Pands from now on is able to focus only on our key mining and milling businesses,” said Mr. Thoomchan.

”Logistics is not our aptitude and now we have a proficient in the business as a partner to help us, especially for transporting steel from Laos to Thailand.”


Following the transaction, PGL raised its capital from five million baht to 55 million. The company aims to double its revenue from a targeted 122 million baht this year to 244 million next year and 320 million in 2010.

ETG managing director Poonsak Thiapairat said the acquisition was part of the company’s strategy to become a leading regional logistics provider by 2010.

”We see a chance to raise our business collectively in the future as ETG and Pands have their own strengths that complement each other,” said Mr Poonsak.

ETG has so far focused on handling semi-finished and finished goods for modern trade operators and automobile manufacturers, while Pands is strong in primary products such as fertiliser, corn seeds, beans and cement, he added. With the acquisition, ETG is making inroads to Laos and the company targets Vietnam in the next stage.The company projects revenue to grow to two billion baht by 2010, up from last year’s 1.08 billion baht and 1.3 billion baht expected for this year.

Mr Poonsak said ETG was in talks with strategic partners _ both locals and firms from Japan and Europe to acquire its stake through a capital increase expected in mid-2008.

ETG shares closed yesterday at 4.82 baht, up 0.02 baht, in trade worth 345,000 baht.

Silom Information Guide

Who would have thought that an empty, swamp-like field with a tall ’silom’ (windmill) stuck in the middle would somehow become Bangkok’s equivalent to New York’s Wall Street? Today, Silom (by day anyway) is undoubtedly one of the city’s most important financial districts with many bank headquarters, financial institutions and office buildings. Fine hotels, smaller type malls and great restaurants abound in the area too - and then of course there’s the infamous nightlife scene of Patpong.

It is no wonder that Bangkok’s two most sophisticated mass transportation systems - the Skytrain (BTS) and underground - both have Silom connections, which are also conveniently connected by the walkway between MRT Silom and BTS Sala Daeng stations. Siam, Chidlom, Ploenchit, Sathorn, and the riverside are all located close to Silom, usually only a few BTS stations away.

What makes Silom unique though is the interesting mix of people who roam the streets, and a quite different ‘day crowd’ to an ‘after dark’ crowd too. Silom is one of the most cosmopolitan areas of Bangkok, and normally ranks very high on most visitors’ to-do-lists. And with good reason. Patpong has after all been featured in a James Bond chase, and in a scene of the hippie cult movie ‘The Beach’.

Apart from the famous Patpong Night Market and go-go scene, Silom is also home to a smattering of gay or gay-friendly venues, making it the city’s ‘rainbow hub’. Day or (especially) night, the streets of Silom provide endless entertainment and amusement, from blind singers and ‘katoeys’ to pavement and alley vendors selling pretty much anything you can imagine, legit or not, authentic or replicated.

Silom - Where to stay in Silom?

Stretching from Charoen Khrung Road in the West, to Rama IV Road (by Lumpini Park) in the East, the Silom area extends as far as the parallel Suriwong Road and Sathorn Road. Part of the city’s main business and financial district it’s short on traditional tourist attractions. Canceling out the sterility of the abundant head offices and tower blocks however, is the combined appeal of the famous Patpong, Silom Road’s energy and enterprise, some great bars and restaurants, a buzzing gay scene, and its central location - in fact, its one of the city’s most liveliest and popular areas in town. Depending on where you stay along its 4.5km length, Silom places you roughly halfway between the riverside and main shopping areas like Siam Square. The standard of accommodation overwhelmingly ranges between mid-range and five-star luxury, and prices reflect this. Loosely served by three Skytrain (BTS) stations - Surasak, Chong Nonsi and Sala Daeng - its best broken up by these.

Sala daeng

A stay in this area gives you the access to the main shopping and entertainment segment of the Silom area - one of the liveliest, bustling and most interesting areas in the city, including Patpong. Office workers by day become bargain and thrill seekers by night, the straight stretch coming alive with shops and stalls selling all manner of merchandise, great restaurants, bars, Thai massage parlours, crowded clubs and notorious sex shows. Rising above the scene is the skytrain, which, via handy raised walkway, connects to the subway station at the end of Silom road. Just beyond it is Lumpini Park - the perfect daytime escape from the noise and pollution.

Busy but not altogether bustling, the area of Silom near BTS Chong Nonsi - roughly in its middle - is populated by huge office tower blocks and corporate offices, and people scurrying about in suits. Lots of shops of marginal interest and decent restaurants strewn along this stretch - including seafood, Italian and, of course, Thai - as well as further afield, on nearby Sathorn and Narathiwat roads. A stay here puts you roughly midway between the riverside, in one direction, and Patpong’s chaotic entertainment and shopping in the other. Both are in walking distance, but perhaps best reached via tuk-tuk or taxi. Sofitel Silom Hotel 5-star | Internet in Rooms | Great Restaurants | Spa In the heart of the city commercial hub, this 5-star is within walking distance of city attractions like Patpong market and nightlife and Chong Nonsi Skytrain (BTS) station. Interiors blend French flavours and understated contemporary Thai d?cor. Each of the 454 guestrooms and suites share a thematic design defined by simple lines, rich fabrics and artistic motifs. Full-length windows give city views. Modern trappings include Internet and cordless phone, among many others. Executive guests will love the Sofitel Club Lounge, with exclusive dining, butler service and complementary evening cocktails, and Business Centre. If you’re indecisive when it comes to good food, you might have difficulty choosing between the four restaurants, including Mediterranean, Japanese, Chinese and V9 international food and wine bar. An outdoor pool, jacuzzi, fitness centre, and the Anne Semonin Spa comprise this popular hotel’s recreational facilities.

There’s a huge range of nightlife options in Bangkok, and downtown Bangkok at night can become a frenetic, pulsating, lively place. There are many western-style expat pubs, go-go bars, hostess bars, cocktail lounges, huge supper-clubs, street-side cheap and cheerful places and many more options. There are also lots of gay and lesbian bars, with whole areas dedicated to gay or mixed crowds.

There are many areas in which you can bar-hop between many close-by pubs, or you can take a taxi to a stand-alone club which will typically feature live music and lots of whisky. Most places in Bangkok close at 1am or 2am at the latest, leaving you to either go home (the sensible option!) or continue on to find an illegal “after-hours” pub which often involves quickly ducking under a half closed shutter and tip-toeing upstairs into a packed and sweaty room filled with other like-minded party-goers. Some after hours places don’t actually open until 3:30am or even 4am, meaning that the many pavement bars on Sukhumvit Road may be your only option.

Thailand is famous for beautiful girls.
Budget: there are various clusters of bars in which tourists inevitably find themselves. Khao San Road has probably the highest density of bars per square metre, and they play a large variety of musical styles including hip hop, drum and bass, house, trance, chart music, rock and Thai music. Bars here are lively, cheap and draw a predominantly foreign crowd, although in recent years it has become a popular destination for more cosmopolitan Thais.

Sophistication: also, Silom Soi 4 is worth a look as it has a sophisticated mix of both gay and straight bars. Just nearby is the Langsuan area in which the bars have mainly Thai clientele and most also feature live music.

Pubbing: for the expat scene, head to Sukhumvit Road, along which you can do a pub crawl of the many British, Irish, German and American style pubs. These are a bit more pricey and there’s rarely a Thai customer to be found. Also in this area are many larger clubs, which have large dance floors and often very talented DJs spinning the tunes.

Clubbing: but if big, banging clubs are your thing then look no further than RCA - six huge clubs next to each other, all playing hip hop, R&B or drum and bass. These swanky places pull in moneyed Thais and a few of the more hip expats. Be sure to take a photocopy of your passport here though as absolutely everyone is checked on the door. You’ll find discos in the central tourist areas too, full of punters and ‘pickup artists’. of course you can hardly talk about Bangkok nightlife without mentioning the go-go bar scene - it’s the much loved and much loathed phenomenon that Bangkok’s been famous for for a long time. There are three main areas in which the go-go bars are concentrated: the Nana Entertainment Plaza, Soi Cowboy (both Sukhumwit road) and the infamous Patpong (Silom). Although they’re tamer these days than they were in the more hedonistic 80’s and 90’s, they’re still pretty full-on and probably unlike anything you’ve seen back home. Some are touristy and have the boorish ‘ping pong shows’ others are smaller places to simply pick up a girl for the evening. Although these bars are plentiful, they’re segregated enough from the ‘normal’ bars so that if this scene is not to your taste it won’t encroach on your evening’s enjoyment.

Some recommended Bangkok clubs and discos

Q-Bar: very popular with Thais and, more recently, some expats, this expensive but fun place always gets busy. Sukhumvit Road in-between Soi 5 and Soi 7. Best to taxi there though rather than trying to navigate the back streets on foot. (nearest BTS: Nana), 600/400 baht cover charge weekends/weekdays, with two free drinks. Open: 20.00 to 01.00, nightly.Santika: mainly Thai students and other upmarket Thais frequent this buzzing club which is a little out of the way but is worth making an effort to get to. Ekkamai Soi 11. Nearest BTS station: Ekkamai. No cover usually. Open: 21.00 to 01.00, daily.Astra: Plays the best music of all the RCA clubs and often has big name drum and bass and hip hop DJs. Nearest MRT station: Phra Ram 9, then a taxi ride. Closed Sundays, cover charge: 100 baht usually. Open: 21.00 to 02.00, except Mondays.Bed Supperclub: famous throughout Bangkok, this popular and pricey venue always provides for an entertaining night. Sukhumvit Soi 11. Nearest BTS station: Nana. Cover charge 400 baht, with free drink. Open: 19:30 to 24.00 week nights and 02.00 weekends. CM2: located in the basement of the Novotel in Siam, this is a lively, popular centrally located venue. It only gets going after 11pm and is full of freelancing ‘ladies of the night’ (Thai and Eastern European). The bar staff also have a terrible attitude. Nearest BTS station: Siam. Cover charge 300 baht, with free drink. Open: 18.30 to 02.00, nightly. RCA: not a disco but a whole area for clubbing, including Route 66, Slim, Dude with nearly a dozen clubs on one pedestrianised street, pulling the young rich Bangkok Thai crowd any night of the week. It also attracts the clubbers among expats and some tourists. Best bet for a guaranteed night of boogeying, but don’t expect any girls for hire. 20 minute taxi ride south of city.

Solid returns from rental yields or capital gains is the main attraction for international investments in high-end condominiums in Pattaya, Thailand.

In a new research report on the resorts city, the company found that condominium and land prices in Pattaya had risen by 52% from 59,000 baht/sq. metre in 2004 to 89,842 baht in 2007.

The company also noted continuous growth in new housing construction permits since 2004, which grew to 3.9 million sqm. approved in 2006, indicating a healthy property market. Of the total, the percentage of permits issued for high-rise residential construction tripled to 21% in 2006 from 7% in 2004.

The luxury condominium market began in 2004 with the launches of 465 new units, followed by 1,049 units in 2005, 1,395 units in 2006 and 2,268 units in 2007. This translates into 440% growth in the 4 years period.

Mr. Cornick viewed that the growth in condominiums and real estate in Pattaya was backed by a thriving economy and a populace brimming with retirees, tourists, expatriates and prosperous businessmen. Condominiums attract international investors as they are the only type of property in Thailand that a foreigner can own 100% freehold.

”Pattaya continues to attract astute property investors, who believe today’s market conditions offer the opportunity to lock into excellent future returns, either from rental income or through capital growth,” he said, adding that Raimon Land alone received between 700 and 1,000 new inquiries every quarter for its Pattaya developments.

The report cited an example of Raimon’s 187-unit Northshore launched in 2004, for which resale value brought returns exceeding 30% in 2005 before rising to 40-50% in 2006. The original selling price range of 70,000 to 90,000 per sq m rose to 132,479 baht in 2007 and the latest resale that occurred in January reached 180,000 baht.

12 months rental contracts range from 500-650 baht per sqm., or a 6-10% annual return on investment.

A real estate event that will draw big-time property developers from the Middle East as well as other parts of the globe will take place in Singapore from April 15-17.

Among the companies participating at Cityscape Asia 2008 will be Limitless, a Dubai World affiliate and a global developer that has been very active in Asia of late with Singapore the hub for its projects across the region. Its first international project in the region is Halong Star, a $220-million mixed-used development in Halong Bay near Hanoi, Vietnam.

Saeed Ahmed Saeed, the CEO of Limitless, describes Southeast Asia as “one of the most exciting and dynamic regions” providing “endless opportunities to demonstrate our core skills of master planning large-scale, balanced projects and waterfront development”.

The event’s Gold sponsor, London-listed Aseana Properties, will also be represented. The company focuses on property development in Malaysia and Vietnam with approximately $250 million worth of assets under management.

Late last year Aseana Properties announced its first acquisition in Vietnam with the purchase of 202,800 square metres of seafront development land. The estimated total development value of the project is $150 million and will include a luxury hotel and resort-themed residences comprising a condominium tower and other facilities such as a conference centre and recreational clubs.Cityscape Asia has also attracted new exhibitors from the Americas. MGM Mirage CityCenter will be putting on a big show. With a total cost expected to exceed $7.8 billion, MGM Mirage CityCenter in Las Vegas is the largest privately financed development in the United States. Dubai World paid $2.96 billion for 50% of the equity in the mixed-use, residential resort and retail complex.

“Singapore is a natural choice to host Cityscape Asia,” said exhibition director Graham Wood. “Singapore gives access to a regional market of 2.8 billion people and with one of the highest per capita GDP it is the lion of the Asian market.”

Taking place at Singapore’s Suntec City, the event will also include the International Property Investment and Development Conference with more than 50 speakers expected to air their views.

The inaugural Cityscape Asia last year attracted 4,500 participants from the region and beyond. However, the flagship event, Cityscape Dubai, shattered all previous records in October 2007 with 52,000 participants from 120 countries. Other similar events have been staged in India, China and South America.

THE SIAM SOCIETY

Founded in 1904 under Royal Patronage, the organization helps those interested in the artistic and cultural life of Thailand and neighboring countries. The Society maintains an excellent library (for members only); publishes an esteemed journal; and organizes monthly lectures, exhibitions, and study trips. It has a natural history section too. An ethnological museum providing traditional Thai artifacts and carvings is housed in the Kamthieng House on the grounds of the Society. It is open Tue to Sat 9 am - 12 noon and 1-5 pm. The address is 131 Sukhumvit 21 (Soi Asoke), Bangkok 10110. Tel.: 258-3491.

THE NATIONAL MUSEUM
Tel: 2241333, 2241396
Within walking distance of the Grand Palace, across the Pramane Ground, is one of the largest and most comprehensive museums in Southeast Asia. The National Museum over one thousand artifacts ranging from neolithic times to the present Bangkok period. The complex, also begun in 1782, consists of several old hut beautiful buildings of colourful Thai architectural design. The museum is open every day, except Mondays, Tuesdays and public holidays from 9.00 a.m.- 4.00

NATIONAL THEATRE

Just around the corner from the National Museum is this huge building where drama and Thai classical dance performances are presented. There is a dance exhibition on the last Friday of every month at 5 pm. Admission fee for other shows is around Bht 30. Call 224-1342 for further details.

THE NATIONAL ARTS GALLERY
This is on Chao Fa Road opposite the National Theatre. It exhibits traditional and contemporary works of art by Thai artists. The gallery is open to the public everyday except Mondays Tuesdays and public holidays from 9.00 a.m.- 4.00 p.m. The telephone number is 2812224, 2822639 . Admission fee is Baht 10.

THAIL CULTURAL CENTER

Avenue for musical and visual entertainment, this spacious complex was established with Japanese assistance. Its monthly programme often lists artists from abroad. It is located on Ratckadapisek Road, behind an open automobile showroom directly opposite the Siam Jusco shopping mall. For programme details call 247-0028, 247-0060-9

NATIONAL LIBRARY

This public library has a good collection of books in English and some other European languages on wide ranging topics. Located at the intersection of Sri Ayutthaya and Samsen Roads, the library is open from 8.30 am to 6 pm; Mon. through Sat. The National Archives office is located in the some premises. Tel: 281-5212

Bangkok was founded in 1782 by the first monarch of the present Chakri dynasty. It is now the country’s spiritual, cultural, diplomatic, commercial and educational hub. It covers an area of more than 1,500 square kilometres, and it is home to approximatlely ten million people or more than 10% of the country’s population.

Over the last few decades, Thailand’s capital city, Bangkok, has changed into a modern, exciting and sophisticated city. It offers to visitors not only the cosmopolitan amenities they would expect from other big cities, but also a unique treasure trove of cultural attractions. Thailand, in the heart of Southeast Asia, was never colonised and thus kept its unique culture and heritage intact. Bangkok offers visitors the opportunity to experience fascinating glimpse of Thailand’s gentle culture amidst the bustle of a great and dynamic metropolis. This great city has had astounding success in combining the ancient and modern world.

For tourists, Bangkok has a feast of attractions to offer. The city is dotted with 400 glittering Buddhist temples of great beauty and fascination, magnificent palaces, classical dance extravaganzas, numerous shopping centres and traditional ways of life, especially along the “Venice of the East” timeless canals and the Chao Phraya River of the “River of Kings” winding through the city. It is worth taking a trip along its waters before exploring further into different canals to take a glimpse of old Bangkok.

Suvarnabhumi Airport is accessible by 5 routes.