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ANNUAL REPORT 2017
outcome, as the unemployment problem had been continuously declining. While the same problem in European Union was still severe as same as in 2016. For Japan, the economy slightly rose, when the economy of China was slow down. Due to the confidence that their economy and financial situation would be recovered, some countries had increased their interest policy rate. For example, the central bank of South Korea has raised interest policy rates to 1.50 percent from 1.25 percent (for first time in 6 years, since June 2011) and the Federal Reserve Bank has raised the interest policy rate by 0.25 percent from 1.00-1.25 percent to 1.25-1.50 percent. However, most countries remain their interest policy rates in order to sustain their economic stability and their inflation at target level. For the world economy in 2018, the IMF is expected to grow at 3.9 percent. The world oil market, trend in crude oil price will be increasing due the rise in consumption demand according to the strengthen of the economy worldwide. Another reason of increasing in oil price is from the collaboration among the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers in which they would extend reducing in their oil production. However, there are still some factors which is needed to follow; such as the U.S. policy particularly the tax policy reform, the interest policy rate of Fed in 2018, the effect of Brexit policy, Inflation of exchange rate, and international political conflicts. Because those factors may affect to the expansion of the world economy. In overview, it is seen that Thailand will gain the positive impact from the world economy expansion. Apart from an increase in the trustworthy of Thailand as a nation, this factor will support Thailand in term of bringing a lot more investors to Thailand. Moreover, the ranking summary reported by U.S. News clearly reflect that Thailand is suit for start up a business or invest in.
3. The situation of the Trust Invested business According to the development project Of Eastern Economic Corridor (EEC), three provinces namely Chachoengsao, Chonburi and Rayong designated to be a strategic developed area to support the 10 cluster industries. According to the EEC development plan, the investment from both government and private sectors plans were approximately 1.5 trillion baht for first five-year in which 0.4 trillion baht on the new economic hub development, 0.5 trillion baht on manufacturing sectors and infrastructure such as U-Tapao Airport as the region’s aviation hub serving 3 million passengers a year, Maptaphut Port and Laem Chabang Port as well as high-speed train and double track railway. It is aimed to enhance the capability of Thailand competitiveness as well as the quality of life and sustainable growth following the guideline of Thailand 4.0 strategy. If the EEC development project is successful as planned, it will lead to a cluster development in EEC area. It is forecasted that EEC will lead to a growth in Thailand economy by 5 percent a year, an increase in job market with over 100,000 new employment a year, a decrease in logistic costs by 0.4 trillion baht a year, an increase of 10 million tourists a year, and a rise in the nation tax income for 0.1 trillion baht a year. In order to achieve the goals of EEC project, the government will push the project following the five-year investment plan (B.E. 2560-2564) as below;