Corporate investment tipped to rise in 2017

Economy February 27, 2017 01:00

By SOMLUCK SRIMALEE
THE NATION

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CORPORATE investment has shown signs of rising this year especially in construction on the back of the government policy to expand the investment in infrastructure projects in 2017, said Siam Commercial Bank head of commercial banking Wasin saiyawan said.



Following the investment trend, the bank is targeting corporate loan growth of up to six per cent this year. The figure was just 4 per cent last year.

Wasin said the bank had advised its corporate customers with overseas investments, or who had businesses or traded overseas, to manage their business currency by hedging the currency when the baht fluctuation between Bt34 and Bt36 per US dollar.

“This is the effect from Trump’s policies that have impacted on global currencies to the point that we have had suggest that our customers hedge their currency when they have overseas businesses,” he said.

He said most Thai corporates had healthy finances and had more cash to expand their investments nationally and internationally.

Many firms delayed their investment plans last year due to concerns about the domestic and international risks but will benefit from investing this year.

Wasin said the bank’s corporate customers were generally confident about expanding their investments this year to deliver new manufacturing plants to expand their production capacity or expanding their investments overseas especially in CLMV countries (Cambodia, Laos, Myanmar, and Vietnam).

Following the trend, the bank believes that its corporate loan growth will be higher than the country’s gross domestic product growth forecast in 2017.

GDP is predicted to grow between 3-4 per cent.