ECON SF Exam

THAILAND
2019 Top Export Products

 Vehicles - Cars and Trucks
 Gems, precious metals - Gold
 Rubber, rubber articles - Rubber Tires
 Mineral fuels including oil
 Rice
PRODUCTION :
VEHICLES
JEWELRIES
RUBBER
RICE
MINERAL FUELS INCLUDING OIL
PRODUCTIVITY
 Thailand’s top 10 exports accounted for almost three quarters (70.3%) of the
overall value of its Global Shipments. Gems and precious metals represents the
top grower among the top 10 exports categories up by 31.5% since 2018 and
propelled largely by stronger global sales of Thailand’s gold. The only other top
category posting improved export revenues was meat or seafood preparation
thanks to its 1.4 increase.
 According to Chartchai Parasuk, a Thailand columnist. The alarming figures
regarding Thailand's decreasing labour productivity is one of the many reasons
why Thai economy is not in a great shape.
 Furthermore he added that the weakening was also caused by domestic factors
such as high household debt, low wages and low crop prices. In other words,
Thai consumers have less and less money to consume and keep pulling down
the economy with them.
ANALYSIS:
In 2019, declining exports and growing weaknesses in domestic demand were the
key drivers of the slowdown in growth in Thailand. Accordingly, Computers commodity
exports declined by almost 7 percent, while Petroleum oils, Integrated Circuits, and cars
have also decreased by 20.1%, 8.2% and 7.5%, respectively. Given Thailand’s
population of about 67.9 million people, its total $245.3 billion in 2019 exports translates
to roughly $3,600 for every resident in the East Asian country.
In macroeconomic terms, Thailand’s total exported goods represent 17.7% of its
overall Gross Domestic Product for 2019 ($1.383 trillion valued in Purchasing Power
Parity US dollars). That 17.7% for exports to overall GDP per PPP in 2019 compares to
18.9% for 2018. This seems to indicate a relatively decreasing reliance on products sold
on international markets for Thailand’s total economic performance, albeit based on a
very short timeframe.
Another key indicator of a country’s economic performance is its unemployment
rate. Thailand’s average unemployment rate was 1.2% for 2019 same as one year
earlier, according to the International Monetary Fund.
If Thailand's export continued to decrease this way, this will greatly affect the life of
the people as well as the Future Economic Growth and Prosperity of Thailand.
RECOMMENDATIONS/SUGGESTION:
Thailands domestic factors and labor productivity are just some of the
few reasons as to why Thailand is experiencing a problems in regards with
their economic growth. Here are just some of the recommendations of both
mine and other organizations for the betterment of Thailands economy.
 Policy recommendations to boost productivity in Thailand could focus on: (i)

increasing openness; (ii) enhancing competition in the domestic economy;
and (iii) promoting a stronger eco-system for firm innovation.
 boosting productivity and reviving private investment
SINGAPORE
2019 TOP EXPORTS

 Integrated Circuits
 Refined Petroleum
 Gold
 Computers
 Packed Medicaments
PRODUCTION PROCESS
INTEGRATED CIRCUIT
REFINED PETROLEUM
GOLD
COMPUTERS
PACKED MEDICAMENTS
PRODUCTIVITY
 Productivity in Singapore increased to 107 points in the fourth quarter of 2019
from 99.50 points in the third quarter of 2019. Singapore Productivity - data,
historical chart, and calendar of releases - was last updated on March of 2020
from its official source.
 PRODUCTIVITY, as measured by real value-added per actual hour worked,

grew by 3.6 per cent per year in the past three years, higher than the 1.6 per cent
per annum growth recorded in the preceding three years, from 2012 to 2015.
 Finance Minister Heng Swee Keat said in Parliament on Monday that Singapore
has seen strong performance by outward-oriented sectors such as
manufacturing, while others like construction and some services industries
continue to show weaker productivity growth.
 To-date, all 23 Industry Transformation Maps (ITMs) - each integrating the four
pillars of transofrmation of jobs and skills, innovation, internationalisation and
productivity - have been launched, covering about 80 per cent of Singapore's
economy.
ANALYSIS:
Singapore's economy is characterised by excellent finances and a high degree of openness, with the country
being highly dependent on international trade. However, GDP only grew 0.5% in 2019. The slowdown, the worst in
10 years, is mainly due to the trade war between the US and China and to a cyclical global downturn in the
electronic sector. Coface estimated at 2.3% GDP growth in 2019. Growth factors include its business-friendly
regulatory system, 180% of GDP in exports and domestic demand. The IMF expects the growth rate to reach 1%
and 1.6% in 2020 and 2021.
The country's government balance was positive at 1% of GDP in 2020 but is expected to fall to 0.5% and
0.3% in 2020 and 2021. Singapore's gross debt remained high at 114.1% of GDP in 2019 and is projected to
increase slightly to 114.6% in 2020 and 115.1% in 2021. While public debt is high, financial assets held by the
country more than compensate for it. As for the previous year, inflation is under the 2% target fixed by the central
bank. For 2019, the IMF forecasted 0.7%. The inflation rate is expected to grow at 1% and 1.3% in 2020 and 2021.
Coface expects a higher 2019 rate at 1.3%. The Monetary Authority of Singapore is expected to maintain its policy
in 2020. Economic challenges include slower exports due to Chinese economic slowdown, the U.S.-China trade war,
decreasing global demand for electronics (13.5% of exports), a lagging construction sector, and a tight monetary
policy, according to Coface.
Although per capita wealth in Singapore is amongst the highest in the region, unemployment has appeared
due to structural economic changes (outsourcing of low-skilled work). Singapore’s annual average unemployment
rate reached 2.2% in 2019 and is expected to maintain at this rate in 2020. According to the World Bank, Singapore
ranks the best country in the world in human capital development. According to Labour Market Advance, Singapore
made improvements in total employment and local employment, with annual average unemployment rates lower
than in 2017. Social challenges include rising income inequality and social discontent caused by overpopulation,
high competition for employment and housing, lack of skilled labour, an ageing population, and distrust towards
immigration.
RECOMMENDATIONS/SUGGESTION:
1. IDENTIFY KEY REASONS FOR THE SHARP INCREASE IN BUSINESS

COSTS AND STUDY HOW TO BETTER MANAGE THEM
2. REVIEW THE FOREIGN WORKER LEVY SYSTEM
3. GROW LOCAL COMPANIES AND ENCOURAGE THEM TO EXPAND

OVERSEAS WITH THEIR HOME BASES ANCHORED HERE
4. MAKE THE SECURITIES MARKET MORE VIBRANT AND LIQUID; INVEST

CPF FUNDS IN THE LOCAL STOCK MARKET
ECON 106
For
SEMI-FINAL
EXAM
Submitted by:
Puray, Ma. Lorraine M.
Student
Submitted to:
Ramas, Ma. Diversin
Economic Development Instructor

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THAILAND

2019 Top Export Products

 Policy recommendations to boost productivity in Thailand could focus on: (i)

2019 TOP EXPORTS

 PRODUCTIVITY, as measured by real value-added per actual hour worked,

1. IDENTIFY KEY REASONS FOR THE SHARP INCREASE IN BUSINESS

2. REVIEW THE FOREIGN WORKER LEVY SYSTEM

3. GROW LOCAL COMPANIES AND ENCOURAGE THEM TO EXPAND

4. MAKE THE SECURITIES MARKET MORE VIBRANT AND LIQUID; INVEST

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