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| Fund Manager Assures Thai Econ Expansion This Year | |||||||||||||
| UPDATE : 24 February 2010 | |||||||||||||
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A fund manager says it is possible for the Thai economy to grow 3.5 or 4.5 percent this year, assuming there is no political chaos, while the Government Pension Fund is gearing up for heavy stock trading after the ruling on Thaksin Shinawatra's assets case on Friday. At a seminar entitled, “Investment Strategy in the Year of the Tiger”, organized by MFC Assets Management, there was a discussion about Thailand's political situation and its impact on the economy regarding the court's verdict on the 76 billion-baht impounded assets of former prime minister Thaksin Shinawatra on February 26. Chairman of MFC Assets Management, Narongchai Akrasanee, was of the view that it is highly possible that Thailand will experience political turmoil but the government will be able to control the situation eventually. Narongchai admitted that the matter will affect confidence among investors and said that the stock market will be much more volatile after the ruling on Thaksin's assets case. However, he believes that there will be no political change at this time because there is no one suitable to be the new government leader while the military is gaining benefits from budget allocation and the appointments of senior officials. Regarding the economy, Narongchai said Thailand's GDP is able to expand by 3.5 to 4.5 percent as projected by the National Economic and Social Development Board but the oil price hike and fluctuation in foreign exchange rates are causes of concern. The interest rate is likely to go up slightly since the inflation rate is not too high. He agreed to the cancellation of the property stimulus package as well as free tap water offer as the government will be able to spend the budget on other purposes to help low-income people. President of MFC Assets Management, Pichit Akrathit, gave his assurance that the Thai economy will continue to improve in 2010. Pichit said the political crisis is expected to ease for a short period and suggested that reduction in the country's public debt is also important. He added there is no need to lower the budget for stimulus programs right now. Meanwhile, secretary general of the Government Pension Fund, or GPF, Sopawadee Lertmanaschai, said the agency has set three scenarios for the impact of Thaksin's assets case on the stock market. First, the seizure of all of his assets will bring out the worst case and will result in a panic among investors. Accordingly, the GPF will therefore spend 2 percent of its 300-billion baht investment portfolio to purchase fundamental stocks for the short run. Second, GPF will monitor the movements of political groups and carry out a wait-and-see strategy should the court hand down a verdict that there will be no seizure of Thaksin's assets. And Finally, a partial assets seizure should not affect the stock market. |
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