I too have overall confidence in them Lomu (despite the odd knock here and there), we should also give them some credit for announcing an immediate U-Turn bearing in mind the amount of face losing that must have been incurred.
You don't often hear an arrogant Western politician admit he was wrong.
Burger
New Baht Withold Tax - Does It Affect Property Sector?
Property exempt from new prctice
I have spoken with the Bank of Thailand and they say, "that they will announce today that the for the purpose of buying property in Thailand that money transferred will be exempt from the new directive"
Re: Property exempt from new prctice
If this proves to be true it could actually mean a boost for the Thai property market. A sliding baht will offer foreign investors more for their money. A move to say 75 baht to the pound would mean your property budget's just shot up 7% - could be a factor.samlorsam wrote:I have spoken with the Bank of Thailand and they say, "that they will announce today that the for the purpose of buying property in Thailand that money transferred will be exempt from the new directive"
Never trust a hippy....
today from Bloomberg:
Thai Stocks Rebound After Government Scraps Currency Rules
By Chen Shiyin and Darren Boey
Dec. 20 (Bloomberg) -- Thai stocks rallied from the biggest slump in 16 years after the military-led government scrapped day-old restrictions for international investors that roiled shares in emerging markets.
The SET Index jumped 11 percent to 688.17 at the 12:30 p.m. break in Bangkok, set for the biggest gain since February 1999. The 15 percent drop yesterday erased $23 billion in market value, prompting the government to scrap penalties on equity investors who don't keep their funds in the country for a year.
The policy u-turn damages the credibility of Thailand's three-month old government, led by former army chief Surayud Chulanont. The administration will need to reassure international investors, who had increased stock purchases since a Sept. 19 coup.
``It makes investors doubt these people can manage the country,'' said Jorry Noeddekaer, who helps manage $1.4 billion of Asian stocks at New Star Asset Management Ltd. ``It would take a lot of good moves to rebuild credibility.''
The benchmark yesterday slid to the lowest in more than two years after overseas investors dumped a net 25.1 billion baht ($699 million) worth of shares, the largest sell-off since at least Jan. 4, 1999, according to data compiled by Bloomberg. Gains today trimmed the SET's decline for 2006 to 4.2 percent.
PTT Pcl, Thailand's most valuable company, added 15 percent to 214 baht. It slumped 17 percent yesterday. Shares of companies in the 458-member SET Index now trade at 9.52 times earnings, the cheapest of any country in Asia.
`Fallen Too Much'
Finance Minister Pridiyathorn Devakula said late yesterday the central bank would exempt stocks purchases from a rule that required banks to lock up 30 percent of new foreign-currency deposits for a year. The requirements stay in effect on other investments, including bonds and property.
The Thai rule came after the baht appreciated 16 percent in 2006 to a nine-year high against the dollar, threatening exports and economic growth.
The baht had its biggest two-day decline in Asian trading since April 2005, following yesterday's measures. The currency climbed to 35.61 against the dollar recently, after falling to as low as 36.08 yesterday.
This latest move ``is positive,'' said Mark Mobius, who oversees $30 billion in emerging-market stocks at Templeton Asset Management Ltd. ``A central bank obviously needs to be more stable in the long term, but given they are facing this incredible volatility,'' this move was probably necessary.
Overseas investors bought 3.13 billion baht ($88 million) of Thai stocks in October and November, compared with 1.33 billion baht in the two months prior to September.
`Buying Opportunities'
Speculation that the central bank may have to adopt other measures, including cutting interest rates, to stabilize the currency also spurred gains.
``Yesterday's plunge has created buying opportunities in Thailand,'' said Daphne Roth, vice president for equity research at ABN Amro Private Banking in Singapore. ``The Thai central bank may now resort to an interest rate cut to rein in the baht, which could benefit banking stocks.''
The Bank of Thailand on Dec. 13 kept its benchmark interest rate unchanged at 5 percent after quadrupling borrowing costs since August 2004 to curb inflation. That was the fourth meeting at which the central bank's monetary policy board has left the rate unchanged.
Bangkok Bank Pcl, Thailand's largest lender, rose 9.7 percent to 113 baht. Krung Thai Bank Pcl, the second largest, jumped 17 percent to 12.7 baht, while Kasikornbank Pcl, the fourth largest, climbed 12 percent to 64.5 baht.
Regional Recovery
The recovery in Thai stocks was mirrored in other emerging markets, lifting the Morgan Stanley Capital International Emerging Markets Index by 0.8 percent. The measure yesterday slumped 1.6 percent after Bank of Thailand announcement highlighted the risks of investing in developing economies.
Malaysia's Kuala Lumpur Composite Index added 0.9 percent, after declining 2 percent yesterday, while the Jakarta Composite Index in Indonesia jumped 1.9 percent, recovering from yesterday's 2.9 percent slump. Elsewhere, the Straits Times Index gained 1.3 percent in Singapore, Southeast Asia's largest stock market.
Asian stocks have advanced this year as growth in the region's emerging markets drew funds from overseas investors.
Funds investing in shares of developing countries garnered $1.65 billion more than they lost from withdrawals in the week ended Dec. 13, figures from Emerging Portfolio Fund Research showed. The net fund inflow was the biggest since the weekly period ended May 10, when they drew $2.86 billion.
The rebound in Thai stocks today suggests a further sell- off will be limited.
``If the market is cheap enough, people are going to be brave enough,'' said Kim Catechis, who oversees $3.4 billion as head of emerging markets equities at Edinburgh-based Scottish Widows Investment Partners. ``I wouldn't be surprised in six months' time or a year's time if the majority of the market players forgot this ever happened.''
Thai Stocks Rebound After Government Scraps Currency Rules
By Chen Shiyin and Darren Boey
Dec. 20 (Bloomberg) -- Thai stocks rallied from the biggest slump in 16 years after the military-led government scrapped day-old restrictions for international investors that roiled shares in emerging markets.
The SET Index jumped 11 percent to 688.17 at the 12:30 p.m. break in Bangkok, set for the biggest gain since February 1999. The 15 percent drop yesterday erased $23 billion in market value, prompting the government to scrap penalties on equity investors who don't keep their funds in the country for a year.
The policy u-turn damages the credibility of Thailand's three-month old government, led by former army chief Surayud Chulanont. The administration will need to reassure international investors, who had increased stock purchases since a Sept. 19 coup.
``It makes investors doubt these people can manage the country,'' said Jorry Noeddekaer, who helps manage $1.4 billion of Asian stocks at New Star Asset Management Ltd. ``It would take a lot of good moves to rebuild credibility.''
The benchmark yesterday slid to the lowest in more than two years after overseas investors dumped a net 25.1 billion baht ($699 million) worth of shares, the largest sell-off since at least Jan. 4, 1999, according to data compiled by Bloomberg. Gains today trimmed the SET's decline for 2006 to 4.2 percent.
PTT Pcl, Thailand's most valuable company, added 15 percent to 214 baht. It slumped 17 percent yesterday. Shares of companies in the 458-member SET Index now trade at 9.52 times earnings, the cheapest of any country in Asia.
`Fallen Too Much'
Finance Minister Pridiyathorn Devakula said late yesterday the central bank would exempt stocks purchases from a rule that required banks to lock up 30 percent of new foreign-currency deposits for a year. The requirements stay in effect on other investments, including bonds and property.
The Thai rule came after the baht appreciated 16 percent in 2006 to a nine-year high against the dollar, threatening exports and economic growth.
The baht had its biggest two-day decline in Asian trading since April 2005, following yesterday's measures. The currency climbed to 35.61 against the dollar recently, after falling to as low as 36.08 yesterday.
This latest move ``is positive,'' said Mark Mobius, who oversees $30 billion in emerging-market stocks at Templeton Asset Management Ltd. ``A central bank obviously needs to be more stable in the long term, but given they are facing this incredible volatility,'' this move was probably necessary.
Overseas investors bought 3.13 billion baht ($88 million) of Thai stocks in October and November, compared with 1.33 billion baht in the two months prior to September.
`Buying Opportunities'
Speculation that the central bank may have to adopt other measures, including cutting interest rates, to stabilize the currency also spurred gains.
``Yesterday's plunge has created buying opportunities in Thailand,'' said Daphne Roth, vice president for equity research at ABN Amro Private Banking in Singapore. ``The Thai central bank may now resort to an interest rate cut to rein in the baht, which could benefit banking stocks.''
The Bank of Thailand on Dec. 13 kept its benchmark interest rate unchanged at 5 percent after quadrupling borrowing costs since August 2004 to curb inflation. That was the fourth meeting at which the central bank's monetary policy board has left the rate unchanged.
Bangkok Bank Pcl, Thailand's largest lender, rose 9.7 percent to 113 baht. Krung Thai Bank Pcl, the second largest, jumped 17 percent to 12.7 baht, while Kasikornbank Pcl, the fourth largest, climbed 12 percent to 64.5 baht.
Regional Recovery
The recovery in Thai stocks was mirrored in other emerging markets, lifting the Morgan Stanley Capital International Emerging Markets Index by 0.8 percent. The measure yesterday slumped 1.6 percent after Bank of Thailand announcement highlighted the risks of investing in developing economies.
Malaysia's Kuala Lumpur Composite Index added 0.9 percent, after declining 2 percent yesterday, while the Jakarta Composite Index in Indonesia jumped 1.9 percent, recovering from yesterday's 2.9 percent slump. Elsewhere, the Straits Times Index gained 1.3 percent in Singapore, Southeast Asia's largest stock market.
Asian stocks have advanced this year as growth in the region's emerging markets drew funds from overseas investors.
Funds investing in shares of developing countries garnered $1.65 billion more than they lost from withdrawals in the week ended Dec. 13, figures from Emerging Portfolio Fund Research showed. The net fund inflow was the biggest since the weekly period ended May 10, when they drew $2.86 billion.
The rebound in Thai stocks today suggests a further sell- off will be limited.
``If the market is cheap enough, people are going to be brave enough,'' said Kim Catechis, who oversees $3.4 billion as head of emerging markets equities at Edinburgh-based Scottish Widows Investment Partners. ``I wouldn't be surprised in six months' time or a year's time if the majority of the market players forgot this ever happened.''
ดวงขึ้น
จิม
จิม
I've had a briefing note from my Bkk lawyer who has stated that the new changes were eased for specific areas which included
"Foreign direct investment which has been defined as a long term investment by a foreign investor in a business in Thailand, weather established in a legal entity or an unincorporated association provided the invester holds at least 10% share in the business. Foreign investment also includes the purchase of immovable property such as land and condominiums"
Painter01
"Foreign direct investment which has been defined as a long term investment by a foreign investor in a business in Thailand, weather established in a legal entity or an unincorporated association provided the invester holds at least 10% share in the business. Foreign investment also includes the purchase of immovable property such as land and condominiums"
Painter01
For clarity, the deputy PM did not mention property at all in his interview, nor did the interviewer.
Link for interview here:
http://www.bloomberg.com/avp/avp.asxx?c ... g7_1LU.asf
Burger
Link for interview here:
http://www.bloomberg.com/avp/avp.asxx?c ... g7_1LU.asf
Burger
Ref my earlier post I've had this in from my lawyer
"Yes, the new regulation would apply if you will remit foreign currency into Thailand. However if a remittance is for a purchase of land/condominium or service fees (e.g. construction fee), upon presenting invoice of such fee charge - service contract, it will not be subject to 30% reserve requirement"
Hope this helps any one
Painter01
"Yes, the new regulation would apply if you will remit foreign currency into Thailand. However if a remittance is for a purchase of land/condominium or service fees (e.g. construction fee), upon presenting invoice of such fee charge - service contract, it will not be subject to 30% reserve requirement"
Hope this helps any one
Painter01
Thanks for the info Painter.
This concurrs with the BoT statement: Financial institutions are required to withhold 30 percent of foreign currencies bought or exchanged against the Thai baht, except those related to trades in goods and services
Full BoT statement link: http://www.bot.or.th/bothomepage/Genera ... n5149e.htm
When you make a transfer from your country for the various stages of a property purchase you are paying for the services of your Thai builder and/or Thai developer (they are Thai because they have Thai Limited Companies)
Burger
This concurrs with the BoT statement: Financial institutions are required to withhold 30 percent of foreign currencies bought or exchanged against the Thai baht, except those related to trades in goods and services
Full BoT statement link: http://www.bot.or.th/bothomepage/Genera ... n5149e.htm
When you make a transfer from your country for the various stages of a property purchase you are paying for the services of your Thai builder and/or Thai developer (they are Thai because they have Thai Limited Companies)
Burger
The property side of things apart, why would I or anyone else transfer a million baht of my "hard earned cash" over here to live when a bandit can take 30% of it, use it for themselves, and pay me no interest for a year?
Crazy. Although those measures might have changed now.
Again, I'm not talking about property. Just general confidence. Dosn't help, does it?
Crazy. Although those measures might have changed now.
Again, I'm not talking about property. Just general confidence. Dosn't help, does it?
It doesn't seem it applies to property after all:
http://yahoo.reuters.com/news/articlehy ... ews&rpc=44
http://yahoo.reuters.com/news/articlehy ... ews&rpc=44
Burger
http://yahoo.reuters.com/news/articlehy ... ews&rpc=44
http://yahoo.reuters.com/news/articlehy ... ews&rpc=44
Burger
Last edited by Burger on Fri Dec 22, 2006 4:15 pm, edited 1 time in total.
I dont know what all this jargon and bs means legal mumbo jumbo
I do know what my advice will be to anyone asking
In this present economic and political climate you would have to be either over rich, an addicted gambler or a stark raving lunatic to even consider it wait a year and then look again
IMHO any other advice to the contrary is suspect
I do know what my advice will be to anyone asking
In this present economic and political climate you would have to be either over rich, an addicted gambler or a stark raving lunatic to even consider it wait a year and then look again
IMHO any other advice to the contrary is suspect
A Greatfull Guest of Thailand