ASEAN Market Watch: Thai 4G and Indonesian Economic Growth

Posted on by

asean market watch

Thailand: Mobile Network Providers Set to Launch 4G Services

Major mobile service providers plan to launch 4G (fourth generation high-speed data) services in early 2016. The 4G services will service the expanding mobile user base in the country. The launch of 4G services has the potential to increase the volume of business for information and communication technology (ICT) – related businesses. E-commerce companies in particular can expect a boost in revenues and higher growth. In addition, the higher internet speed may also have a spur economic growth. For instance, some independent studies suggest that doubling internet speeds can potentially increase the GDP by 0.3 percent in some scenarios.

Professional Service_CB icons_2015 RELATED: Corporate Establishment Services from Dezan Shira & Associates

The launch of the 4G services come after an extremely successful 2015 for mobile companies, who increased their revenues this year. Thailand currently has 110 million mobile subscribers, which is projected to rise to 150 million in 2016. Around 40 million are mobile internet users and the 4G service will cater to this segment of the market, which is valued at around US $8.3 billion. The 4G service will also target over 500,000 e-commerce companies, which will be the primary corporate users of the service.

Indonesia: Stimulus Packages Expected to Spur Industrial Growth in 2016 

The Indonesian government has issued seven economic policy packages since September to boost non-oil and gas industrial growth in the country. These include the simplification of export-import regulations and electricity price cuts, in addition to the launch of key investment projects in the past two years. As a result, total investment in the non-oil and gas industry increased from US $13.5 billion last year to US $13.6 billion this year.

Related-Reading-Icon-Asean Link RELATED: Nationality and Residency Requirements for Directors across ASEAN – Part One

The government is hopeful about the impact of the recovery of the US economy – the U.S. is one of Indonesia’s largest markets and key to expanding the demand for commodities.  Local analysts forecast that the domestic market will grow in 2016 as stronger consumer purchasing power and the national health insurance program (JKN) is projected to accelerate growth in the following sectors – pharmaceuticals, chemicals and traditional medicine (8.5 to 8.7 percent growth), metal and electronics (8 to 8.2 percent) and food and beverages (7.4 to 7.8 percent).

The stimulus packages and investments come as data from the industry ministry showed that the growth of Indonesia’s non-oil and gas industry had dropped down to 5.2 percent in the third quarter of 2015 due to the global commodity slowdown. Forecasts by the World Bank continue to predict a weak economic growth for Indonesia at 4.7 percent this year, which would slightly increase to 5.3 percent next year.


About
Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asean@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

Related-Reading-Asean Book Title

The 2015 Asia Tax ComparatorAB 1214 Cover small small
In this issue, we compare and contrast the most relevant tax laws applicable for businesses with a presence in Asia. We analyze the different tax rates of 13 jurisdictions in the region, including India, China, Hong Kong, and the 10 member states of ASEAN. We also take a look at some of the most important compliance issues that businesses should be aware of, and conclude by discussing some of the most important tax and finance concerns companies will face when entering Asia.

Manufacturing Hubs Across Emerging Asia
In this issue of Asia Briefing Magazine, we explore several of the region’s most competitive and promising manufacturing locales including India, Indonesia, Malaysia, Singapore, Thailand and Vietnam. Exploring a wide variety of factors such as key industries, investment regulations, and labor, shipping, and operational costs, we delineate the cost competitiveness and ease of investment in each while highlighting Indonesia, Vietnam and India’s exceptional potential as the manufacturing leaders of the future.

An Introduction to Tax Treaties Throughout Asia
In this issue of Asia Briefing Magazine, we take a look at the various types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double tax treaties and free trade agreements – all of which directly affect businesses operating in Asia.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top