Thailand’s negative outlook poised to improve

Thailand’s sovereign ratings outlook may improve in the near future, says the Public Debt Management Office. The three major ratings agencies currently maintain a negative outlook on Thailand’s sovereign ratings. Standard and Poor’s and Fitch Ratings have BBB+ and Moody’s with Baa1. Ratings play a pivotal role in setting prices on both the public and private sectors’ new debt issues. Negative outlooks indicate the risk of a possible ratings downgrade due to deteriorating credit fundamentals — slowing economic growth and the impact of the global recession in Thailand’s case. But Thailand’s outlook could be revised to “stable” as some indicators have improved, said PDMO director-general Pongpanu Svetarundra.

Risk has increased since protesters from the anti-government United Front for Democracy against Dictatorship surrounded Government House, calling for the Abhisit administration’s ouster. Managing public debt has become more challenging during the financial crisis. It has increased sharply on a global basis, as governments have used fiscal spending to boost growth.

Thailand’s public debt will rise to 43 percent of gross domestic product by the end of the 2009 fiscal year, up from 39 percent last year, based on a projection of zero economic growth. But debt levels could reach 46 percent of GDP this year, and 50 percent in 2010, if the economy contracts. The Finance Ministry said economic growth could fall to 2.5 percent this year.

Thailand banking On Fishing to Promote Tourism

Fishing can be used as an activity to promote tourism between Satun in Thailand and Langkawi in Kedah, Satun deputy governor Chusak Maneechayangkoon said here. He said the Langkawi-Adang-Satun International Fishing Challenge (Lasifc) could help realize that objective.

“Lasifc can be the bridge to strengthen ties and cooperation in various fields including tourism,” he said at the conclusion of Lasifc 2009 last night.

Statistics of the Langkawi Development Authority (Lada) show that more than 60,000 Thai tourists visited Langkawi last year, being among the most number of foreign tourists who traveled to the resort island.

At Lasifc 2009, Sharir Ismail, Azli Kamal, Asri Saaban, Basiron Saad, Jamaluddin Hashim and Zaini Musa of Tourism Malaysia bagged the top prize in the team category by landing 55.15 kg of catch. Lada employee Ku Ishak Ku Aziz won the individual category with a 7.98-kg catch.

Lasifc 2009, the third edition in the series, attracted 124 anglers representing 23 teams from India, the Philippines, Singapore, Thailand and Malaysia. They landed more than 1,000 kg of catch in the effort to win the total RM32, 000 prize money offered.