Land sales of Amata Corporation Plc, the country’s biggest industrial estate developer, dropped almost 74% year-on-year [during the first semester] to about 50 rai in the first half, says director Viboon Kromadit. (Bangkok Post)
Voila. The reality versus the fantasy. The hard data versus the Green Shoots.
Why Amata is important ? Because this large company is located at the beginning of the “added value chain”.
The sales of industrial land of yesterday are the growth, the investments and the jobs of tomorrow.
For that matter, it’s a leading indicator.
The Japanese are the biggest investors in Amata’s industrial estates. [...]
The company currently more than 10,000 rai of land for sale in Thailand.
“Before the economic crisis, our intention was to sell 2,000 rai per year so the amount should be sold in four to five years. It should have been sold out by 2011,” said Mr Viboon.
Only five to six factories were built on its land this year, compared to 102 in 2004, a rate of almost two factories per week. [...]
We shall repeat it over and over again : during a recession, it makes no sense to increase production capacities. In other word : you won’t go to your bank to ask for a loan in order to build a new factory.
And eventhough you’d be fool enough to do it… the bank won’t give you the loan (too risky).
This is a basic principle that the clowns refuse to understand, with an unrelenting fanatism. It’s scary.
The thai economy is not going to “recover” anytime soon.