Bangkok--14 Sep--SET Thailand Focus 2007, an investment promotion event organized by The Stock Exchange of Thailand (SET) and Phatra Securities PCL, was a success despite continuing economic and political uncertainties. During the first two days (September 12-13), there were six panel discussions on topics of interest to foreign institutions, covering government policy, the overall economic and political outlook, increased international competitiveness, industrial trends and high-potential sectors, such as tourism and aviation, automotive-related, animation and telecommunications. The conference met the needs of institutional investors wishing to be updated on Thailand, SET President Ms. Patareeya Benjapolchai said. Thailand Focus 2007 should restore investors’ confidence in the country and familiarize them with government economic stimulus measures, and social and democratic reforms. A new government will be formed by January 2008, after the elections in December 2007, H. E. Prime Minister General Surayud Chulanont noted in his keynote speech, opening the conference. There were more than 1,000 one-on-one meetings between listed companies and local and foreign investors over the event’s three days. The 63 listed companies taking part in these meetings represented a combined market capitalization of 70% of total market value. They also accounted for SET’s 15 sectors. More than 150 executive members from public firms attended. Of the 270 institutional investors participating, 203 met with representatives of listed companies. Of these, 91 were foreign institutional investors, with the remainder being from Thailand. There were also 538 executives from institutional investment firms meeting with public firms. The sectors that caught the attention of the institutions were banking, property, telecommunications and medical services. By meeting with the leading players from each sector, they received an update on each company’s operation and prevailing business trends, which is especially important given the slowdown in the world economy. The consensus was that there will be a recovery in domestic consumption next year. The questions that institutional investors asked of public firms covered company strategic plans, growth potential and capital management. Investors paid most attention to companies’ projected growth and yields paid to shareholders relative to growth. Investors also inquired about corporate governance and the protection of shareholders’ rights. Thailand Focus gave institutional investors a chance to meet with Market for Alternative Investment (mai)-listed firms, three of whom participated. There was a healthy level of interest, with each of these companies meeting with investors four to five times every day. According to some participants, investors see the upcoming national elections as a catalyst, boosting investor and consumer confidence. Once the elections are over, many plan to invest in the telecommunications and infrastructure sectors. One investor recorded an interest in the financial sector, particularly in insurance, mutual funds and finance. Others focused on sectors that may benefit from the elections, such as the property sector. “Merrill Lynch is pleased to have been involved in the Thailand Focus 2007 conference and we congratulate the Stock Exchange of Thailand on the successful completion of it,” said Mr. Anders Wihlborn, Managing Director and Head of Merrill Lynch’s Client Management Group. There was a very strong involvement in today’s (Sept. 13) panel discussions. During the first one, Energy Minister Piyasavati Amaranand outlined the country’s energy needs and plans. This gave investors confidence that, after the elections, Thailand will have a clear agenda. However, there is still a need to follow up on the implementation, and assess the effectiveness, of government policies, moderator and Phatra Securities Managing Director (Head of Research Group) Supavud Saicheua, Ph.D. stated. In the political discussion, Democrat Party and the People Power Party leaders stressed the importance of confidence restoration, creation of political stability, transparency in government operations, and clarification of future privatization policy. They highlighted their economic stimulus policies, and pledged to implement pension and savings programs for post-retirement security, to increase competitiveness through cost reduction, especially in the relatively expensive Thai logistics system; and to pursue social development while improving the quality of life and education. During the discussion, Thailand’s Productivity & Competitiveness, panelists highlighted productivity, how to enhance production efficiency, alternative resources and the promotion of biotechnology. They suggested that the government should focus on the promotion of productivity in a bid to successfully respond to increasing global demand, and on product quality as a selling point. There has been a decline in the productivity of the agricultural sector and the government must develop clearer policies to solve the problem. Moreover, with Thailand’s international competitiveness ranking falling over the past four years, the new government must look into this issue and carry on with policies aimed at improving efficiency, Dr. Supavud added. In the seminar, Telecommunications: Future Directions, executives from Total Access Telecommunication (DTAC), True Corporation and Advanced Info Service (AIS) shared their views on the future of the industry. They agreed that Thailand will soon move into a new stage of technological development and there will be more household internet usage in the near future. However, to facilitate this, a new government and legislation that will lead to the establishment of a National Broadcasting and Telecommunications Commission (NBTC) is needed. The final presentation was Thailand’s Animation Industry. The president of the Computer Graphic Business Promotion Association noted that there had been high growth in the animation industry over the past three years. Furthermore, the industry is currently supported by the Board of Investment with an eight-year tax break, as it is open to foreigner investors. It is believed that the industry could grow from its current value of US$ 100 million to US$ 1 billion in the next five years.