(Bangkok/Manila, 9th Comprehensive Report) Facing global trade uncertainty, new foreign direct investments in Thailand may slow down.
The Secretary-General of the Thailand Board of Investment, Narit, said on Wednesday (May 7): "In the short term, the slowdown in investment may only be a temporary phenomenon. Some investment projects mainly exporting to the United States may adopt a wait-and-see attitude. This is a normal phenomenon when facing uncertainty."
He mentioned that during the 90-day delay in reciprocal tariffs imposed by U.S. President Trump, due to the unclear situation, new foreign investment applications might temporarily freeze, and some companies that have committed to investing in Thailand may wait until the uncertainty dissipates before implementing their investments.
This situation may dampen the investment boom in Thailand in recent months. Last year, Thailand's total investment applications hit a 10-year high, reaching 1.14 trillion baht (about 45.2 billion SGD). Foreign investors' commitments to Thailand's digital infrastructure and data centers prompted the total application amount for the first quarter of this year to nearly double year-on-year, reaching 431 billion baht.
Narit expressed confidence in the overall outlook, as Thailand remains in a good momentum and is expected to exceed last year's investment commitments.
Narit has just concluded a promotional trip in Seattle and Washington D.C. in the United States, during which he met with several American tech companies and industry organizations. He stated that Thailand is still regarded as a strategic hub for supply chain diversification, and businesses from various countries still have confidence and interest in investing in Thailand.
"The Thai government is actively preparing positions and proposals for discussions with the United States, hoping to ultimately achieve results beneficial to investors. We are not in a hurry to move forward but are awaiting the right opportunity.
Thailand is one of the Southeast Asian countries most affected by U.S. reciprocal tariffs. If a tax reduction agreement cannot be reached before the July tariff exemption deadline, Thailand will be subject to a 36% tariff.
Philippines Q1 Economic Growth Below Expectations
On the other hand, data released by the Philippine Statistics Authority on Thursday (8) showed that the Philippines' GDP in the first quarter grew by 5.4% year-on-year, below Bloomberg's survey median expectation of 5.7%, but still higher than last year's fourth quarter of 5.3%.
The data also showed that consumer spending remains the primary driver of the Philippine economy, growing by 5.3%, while investment growth has slowed down.
The Philippine Deputy Planning Minister Edi Long said: "There are signs that the Philippine economy remains very resilient, such as strong domestic demand, but global demand is not optimistic and is currently in a volatile period."
He stated that the Philippines needs to achieve at least 6.2% growth in the next three quarters to realize the full-year growth target of at least 6% set by Philippine President Marcos Jr.'s government.
The 17% reciprocal tariff imposed by the U.S. on the Philippines is expected to exert greater downward pressure on the Philippine economy.
The growth below expectations provides a reason for the central bank to further cut interest rates. The Governor of the Central Bank of the Philippines, Remolona, said that with inflation continuing to slow down, the central bank might lower the benchmark interest rate by 75 basis points this year.
The Secretary-General of the Thailand Board of Investment, Narit, said on Wednesday (May 7): "In the short term, the slowdown in investment may only be a temporary phenomenon. Some investment projects mainly exporting to the United States may adopt a wait-and-see attitude. This is a normal phenomenon when facing uncertainty."
He mentioned that during the 90-day delay in reciprocal tariffs imposed by U.S. President Trump, due to the unclear situation, new foreign investment applications might temporarily freeze, and some companies that have committed to investing in Thailand may wait until the uncertainty dissipates before implementing their investments.
This situation may dampen the investment boom in Thailand in recent months. Last year, Thailand's total investment applications hit a 10-year high, reaching 1.14 trillion baht (about 45.2 billion SGD). Foreign investors' commitments to Thailand's digital infrastructure and data centers prompted the total application amount for the first quarter of this year to nearly double year-on-year, reaching 431 billion baht.
Narit expressed confidence in the overall outlook, as Thailand remains in a good momentum and is expected to exceed last year's investment commitments.
Narit has just concluded a promotional trip in Seattle and Washington D.C. in the United States, during which he met with several American tech companies and industry organizations. He stated that Thailand is still regarded as a strategic hub for supply chain diversification, and businesses from various countries still have confidence and interest in investing in Thailand.
"The Thai government is actively preparing positions and proposals for discussions with the United States, hoping to ultimately achieve results beneficial to investors. We are not in a hurry to move forward but are awaiting the right opportunity.
Thailand is one of the Southeast Asian countries most affected by U.S. reciprocal tariffs. If a tax reduction agreement cannot be reached before the July tariff exemption deadline, Thailand will be subject to a 36% tariff.
Philippines Q1 Economic Growth Below Expectations
On the other hand, data released by the Philippine Statistics Authority on Thursday (8) showed that the Philippines' GDP in the first quarter grew by 5.4% year-on-year, below Bloomberg's survey median expectation of 5.7%, but still higher than last year's fourth quarter of 5.3%.
The data also showed that consumer spending remains the primary driver of the Philippine economy, growing by 5.3%, while investment growth has slowed down.
The Philippine Deputy Planning Minister Edi Long said: "There are signs that the Philippine economy remains very resilient, such as strong domestic demand, but global demand is not optimistic and is currently in a volatile period."
He stated that the Philippines needs to achieve at least 6.2% growth in the next three quarters to realize the full-year growth target of at least 6% set by Philippine President Marcos Jr.'s government.
The 17% reciprocal tariff imposed by the U.S. on the Philippines is expected to exert greater downward pressure on the Philippine economy.
The growth below expectations provides a reason for the central bank to further cut interest rates. The Governor of the Central Bank of the Philippines, Remolona, said that with inflation continuing to slow down, the central bank might lower the benchmark interest rate by 75 basis points this year.