Thailand's EEC will strengthen national economic fundamentals, say CEOs

BANGKOK, April 26 (TNA) - The Stock Exchange of Thailand (SET) reports that most chief executive officers (CEOs) of listed firms on the Thai bourse have viewed the progress in mega-infrastructure development plans under the government-supported Eastern Economic Corridor (EEC) will further strengthen national economic fundamentals. According to the SET report on its survey of CEOs of almost 120 listed firms on the Thai capital markets during the first quarter of this year, released on April 25, 82 per cent of the respondents said they considered both the progress in mega-infrastructure development plans under Thailand's EEC Project and a decision announced by the European Union (EU) in early this year to revoke its "yellow card" imposed on Thailand over nearly the past four years for illegal, unreported and unregulated (IUU) fishing should further strengthen the national economic fundamentals. However, most of the surveyed CEOs foresaw that the United States' trade protectionist policy and a decision of the US Federal Reserve (FED) on any further key interest rate hike should have negative impacts on global economies, including the Thai economy, as well as Thai exports and the performance of listed firms. The surveyed CEOs, whose overall values of securities on the SET and its market for alternative investment (MAI) accounted for about 45 per cent the total market capitalization (market cap) as of the end of February 2019, mostly projected, nonetheless, that Thailand's gross domestic product (GDP) should grow by 3-4 per cent year-on-year in 2019, with the GDP average growth rates in the first half of this year and the second half of last year likely to be comparable, boosted mainly by the domestic tourism and the government's spending, particularly in the first half of 2019. Most of the surveyed CEOs, or about 74 per cent of them, also viewed that the global economic condition should become a major risk factor for Thailand's economic growth this year, while the domestic political condition and purchasing power could become both positive and risk factors of the national economic growth in 2019. Besides, 59 per cent of the surveyed CEOs saw the improved performance of their listed firms during the first half of this year and 55 per cent them anticipated an over 6 per cent growth of their firms' revenues this year. The survey also found that 61 per cent of the respondents planned to expand their businesses over the next 12 months, with 48 per cent of them planning to expand their businesses overseas and 58 per cent of them planning to expand their businesses in provincial Thai areas during the first half of this year. (TNA)