Continued on P. 3

May 2010 Volume 20 No. 05

Page

Cover Story : World Bank Economic Update 1

News Bites & BOI Net Applications 2

Industry Focus : Amazing Film Production in Thailand 4

Outward Foreign Direct Investment by Thailand 6

Company Interview : Kantana Group Public Co., Ltd., 8

BOI Investment Missions 10

Inside The BOI 11

Thailand Economy-At-A-Glance 12

CONTENTS

World Bank Economic Update Shows Thailand, Region Back on TrackAll signs point to prosperity as Thailand and countries across East Asia leave economic upheaval behind. In its nearly 90-page report, titled East Asia and Pacific Economic Update (April 2010), the World Bank gives a glowing assessment of regional performance in emerging from the recent crisis.

Thailand is among the economies that have left the dark days. By the end of 2009, the country’s real GDP had powered back to pre-crisis levels, according to the World Bank update. And the 2010 forecast is for as high as 6.2% real GDP growth.

The country’s swift economic recovery is being attributed to global demand coming back to life, an end to local inventory liquidation, and a reanimation of private consumption with consumer confidence restored.

Manufacturing capacity utilization is improving in line with recoveries in key sectors such as electronics, vehicles and chemical products, the report noted, adding that Thailand’s fiscal and financial picture is also solid.

Exports from Thailand and other countries in the region, however, have not yet recovered fully. Even with invigorated consumption, external demand will be the main contributor

to growth for Thailand’s economy in the near term. This is because vital sectors that drive the economy such as manufacturing, transport and tourism are so closely linked to it.

NEWS BITES BOI NET APPLICATIONS

2008(US$ = 33.23 THB)

2009 (Jan-Apr)(US$ = 35.40 THB)

2010 (Jan-Apr)(US$ = 32.23 THB)

Number of projects

ValueNumber of

projectsValue

Number of projects

Value

Total Investment 1,262 1,343 269 3,799 413 4,213

Total Foreign Investment 788 10,555 186 612 245 1,654

By Sector

Agricultural Products 79 1,148 21 103 25 168

Minerals / Ceramics 14 1,012 1 1 4 68

Light Industries / Textiles 54 116 11 18 15 73

Automotive / Metal Processing

176 1,502 52 194 67 525

Electrical / Electronics 164 2,954 34 58 49 262

Chemicals / Paper 72 498 13 52 28 164

Services 229 3,626 54 186 57 394

By Economy

Japan 266 2,329 71 287 99 795

Europe 153 2,417 40 116 41 100

Taiwan 73 610 7 14 13 62

United States 56 1,042 18 50 11 28

Hong Kong 20 416 2 2 7 70

Singapore 70 1,031 18 24 25 214

By Zone

Zone 1 252 1,664 71 105 85 452

Zone 2 357 5,899 76 355 113 903

Zone 3 179 2,993 39 153 47 299

Unit: US$ MillionNote: Investment projects with foreign equity participation from more than one country are reported in the figures for both countries.

Investment applications on record pace

The Board of Investment reported an 86% surge in applications in April 2010, with 106 projects proposing 26.7 billion baht in investment.

BOI Secretary General Atchaka Sibunruang said, “Last month’s figures reflected that political unrest has not affected investment to date,” adding, “This figure reflected the kingdom’s investment potential. The volume and project value may increase significantly if the political situation is back to normal.”

Applications increased by 53% in the first four months of the year to 413 projects proposing investments of 135.8 billion baht. Foreign investment accounted for 53 billion baht worth of projects, 140% higher than in the same period last year.

BOI approves 61 billion baht in new projects

The Board of Investment, chaired by Prime Minister Abhisit Vejjajiva, approved 19 projects worth 61 billion baht at the 7 May 2010 meeting. Among the project approvals were eight projects for cogeneration power plants worth 41.7 billion baht and four solar power projects worth 6.3 billion.

Eco-car projects underway

Secretary-General Atchaka Sibunruang of Thailand’s Board of Investment (BOI) recently said Thailand’s eco-car program was proceeding as planned, with six international automobile manufacturers interested in investing in eco-car production in Thailand, despite Thailand’s internal politics.

Nissan Motor recently launched its first eco-car in Thailand, while Suzuki Automobile Manufacturing is now building its factory for eco-car production, and Mitsubishi Motors has affirmed its intention to invest and manufacture this type of vehicles here. Both Nissan and Mitsubishi agreed to use Thailand as its base for eco-car manufacturing for worldwide markets.

“Mitsubishi executives are standing firm on their company’s intention to invest in Thailand and use our country as a production base to export eco-cars worldwide, just like Nissan,” Dr. Atchaka said. “Therefore, the eco-car projects aren’t affected by our internal politics,” she added.

Dr. Atchaka also noted that Honda Automobile presented some car models earlier this year at a motor show fair in Bangkok and Volkswagen Thailand has also expressed its interest in producing eco-vehicles, while Toyota Motor and Tata Motors are reading their eco-automobiles, which also involves prospective investments in locally-produced engines.

May 2010

Page 2

Continued from P. 1

The importance of external demand can be appreciated, the report said, by recognizing that the bulk of inventories in Thailand are primarily inputs and finished goods for export-oriented manufacturing. The example given was that in the fourth quarter of 2009, net exports and the change in inventories contributed 44% of the quarterly growth.

Remarkable Region Leads the WayThailand’s success story is being played out all across the region. East Asia “has mostly recovered” from the global economic crisis, and under the right conditions could see rapid growth in the years ahead, the World Bank said. Calling the region’s turnaround “remarkable,” the bank noted that East Asia outperformed the rest of the world last year. China, which overtook Germany as the world’s top exporter, led this comeback.

“In the space of a year, the region shifted from a collapse in exports and investment to leading the global rebound,” the report said. “The region has emerged stronger.”

Government stimulus packages, inventory restocking, improved overseas demand, and brightened consumer buying sentiment fueled the area’s recovery. A big surge came at the end of 2009, when East Asia’s real GDP growth in the fourth quarter rose 9.4% y-o-y.

The bank sees the region’s industrial production continuing to strengthen this year amid ongoing restocking and rising demand. East Asia’s share of global exports is projected to keep on climbing, with electronic shipments out in front.

A sunny outlook exists for many countries. Real GDP growth in 2010 is projected at 7.7% for Laos, above 6% in Vietnam and Thailand, above 5.5% for Indonesia and Malaysia, and 3.5% in the Philippines.

Coping With the ‘New Normal’While business for East Asia is to continue expanding, the region will face a different global environment in the years ahead. Calling it the “new normal,” the World Bank said key markets in developed countries will grow at a slower pace than before the crisis, global financial conditions will be tighter, and free trade could become more difficult to accomplish.

While the outlook is generally optimistic, East Asia does face numerous hurdles that must be crossed to achieve strong growth in coming years. The World Bank said countries need to implement structural reforms, cooperate further on economic integration such as through free trade agreements, and address climate change.

“Deeper regional economic integration is now even more important, given prospects for slower growth in advanced economies,” the report emphasized.

It also called for a “massive shift” to green technologies and energy efficiency. “The region faces the twin challenges of energy security and environmental sustainability,” the report said. “East Asia’s rapid economic development,

-4

-2

0

2

4

6

8

10

12

14

%

2006 2007 2008 2009 2010f

8.2 8.5

6.2

2.6

3.84.6

6.1

11.6

13

9.6

GDP Growth Projections

China Indonesia Malaysia Philippines Thailand Vietnam

5.15.3

5.85.5

4.9

7.1

6.26.3

5.3

-2.3

0.9

-1.7

4.5

6.56.2

3.5

5.75.6

8.79.5

Source: World Bank

The National Economic and Social Development Board (NESDB) has released 1st quarter 2010 economic performance, noting that the Thai economy expanded by 12.0 percent year over year, “supported by global economic recovery as well as better investor confidence.” Exports rose by 32%, manufacturing production by 22.8%, private investment by 15.8% and household consumption surged by 4%.

NESDB further reported that “The seasonally adjusted GDP grew by 3.8 percent compared to the previous quarter, and gradually expanded for four consecutive quarters (from 2.4 percent, 1.4 percent and 4.0 percent in the second, third and fourth quarter of 2009 respectively). This clearly indicates a strong recovery of Thai economy.”

Continued on P. 11

May 2010

Page 3

INDUSTRY FOCUS

Amazing Film Production in Thailand by Scott Rosenberg

The overall Thai economy is growing strong, despite the political situation, and for foreign productions shooting in Thailand, which hit a high of 2,023.24 million THB in 2008, business is brisk.

According to the Thailand Film Office, under the Office of Tourism Development, Ministry of Tourism and Sports, there were 116 foreign movies which were filmed in January and February this year, generating a total income of 213 million THB. Out of this number, 40 were documentaries, 60 advertising movies, 5 feature films, 7 TV movies, and 4 music videos. A majority of the production was from Japan, a total of 33, followed by India, 22, and Europe, 20.

Frank DeMartini, producer of the US $10 million Millennium/Nu Image “Elephant White”, filmed 11 weeks in Bangkok, despite the political unrest.

In April, the Thailand Film Office held a reception in Hollywood to celebrate being named one of the top production/location centers in the world by P3 Update magazine. Attending the reception was Berny Herrera, Business Development director for Creative Kingdom which is investing a reported 8 billion THB into a movie studio and mixed use development project in Chaing Mai.

Mr. Herrera indicated that by 2014, six studios of varying sizes will be available to serve different scales of movie production. In 2015, the company expects its production facilities will attract about 35 productions worldwide. Having received BOI incentives, the project will take seven years to complete on a 30-rai site in San Kamphaeng district of Chiang Mai.

During his visit to the United States in April, Industry Minister Chanchai Chairungruang, along with BOI Secretary General Dr. Atchaka Sibunruang, had occasion to meet with representatives of Creative Kingdom. Already, two of its companies in Thailand are BOI promoted, and the future looks bright.

But how did Thailand reach this pinnacle of success among film makers from around the world? The answer, obviously, is through Government cooperation!

In 2008 the archaic 1930 Film Act was replaced. A committee with representatives from several government ministries and outside organizations was set up with the Prime Minister as chair of the committee. Now various branches of the government are talking to each other about one topic, film making in Thailand (the domestic industry and business from abroad) and how to grow various aspects of the business and thus increase revenues to the Kingdom.

So moving in tandem, the Board of Investment, Ministry of Culture, The Ministry of Tourism and Sports, and the Tourism Authority of Thailand began to promote the film industry to the point that the government set up the National Creative Economy Policy Committee in 2009 to develop Thailand into a creative economy hub in the ASEAN region and increase the country’s proportion of creative economy value from 12 percent to 20 percent of GDP by the year 2012.

Priority Activity: Film & Animation!Incentives:!•  For projects locating in “Movie Town” film industrial

estate:!•  Indoor studio and outdoor studio"•  Post production services such as film developing,

special effects, computer animation, sound lab, and etc."•  Duty-free machinery import"•  8-year cap-free corporate income tax exemption" "

•  Thai motion picture production, motion picture supporting services, or multimedia services.!

•  5-year corporate income tax exemption "•  8-year corporate income tax exemption located

within the “Movie Town”"•  Duty-free machinery import"

May 2010

Page 4

Number of Foreign Productions and Revenue in Thailand 2000 – Feb 2010

Year Documentary Advertising Feature Film TV Series Music Video Total Income (Million Baht)

2000 199 162 26 8 7 402 4502001 195 186 26 19 15 441 1,2772002 228 201 23 11 18 481 1,4012003 185 162 18 7 16 388 1,2242004 207 173 28 11 22 441 1,128.442005 245 183 21 16 27 492 1,138.362006 188 201 26 37 39 491 1,926.832007 229 198 22 32 42 523 1,072.622008 197 184 28 48 69 526 2,023.242009 181 166 37 52 60 496 897.832010(Jan-Feb) 40 60 5 7 4 116 213.14Source: Thailand Film Office

The Committee will ensure that efforts to strengthen this sector of the creative economy will be carried out efficiently and in a concrete manner. The committee will also report periodically to the Cabinet on the performance in response to this policy.

A number of projects in accordance with the creative economy policy have been proposed by various government agencies and private organizations to seek budget allocations under the “Thailand: Investing from Strength to Strength” program. Among the projects are the development of the Thailand Cultural Center for international cultural services and filming for national movies and video presentations.

While the government was moving forward, international film makers were beginning to take a closer look at what Thailand had to offer other than beautiful exotic locations.

One of the most prolific British directors (now domiciled in Thailand), David Winters (The King Maker, 2005) who produced and directed over 70 films in an 8 year period said, “There are many opportunities for shooting films in Thailand: mainly because of the cost of the labor in producing films here. Another main reason is there is already an infrastructure existing here as there are many local films made each year. You have a choice of many post-production houses, as well as many labs.

Thailand is the only real center for film making in all of South East Asia. Many other countries talk about making international films, but they do not have the opportunity to work on many and so it is more of a dream than a reality.

In Thailand, there are many people to choose from when you are making a film. Also, all of the equipment houses are here, so if you need some equipment or lights right away you can get it without stopping the production. Bangkok to me is like the LA of Thailand.”

It is for those same cost effective reasons that Indian location shoots in Thailand have also dramatically increased over the past several years, from 31 in 2003 to just over one hundred in 2009. In fact, in November of 2009 Thailand was presented with the top locations award at the Locations World Exhibition and Conference held in Mumbai.

Looking ahead for 2010, the Director General of the Tourism Development Office, Dr. Seksan Narkwong, has remarked that he expects more foreign filmmakers to come to Thailand compared with last year. At least 6-7 major movies have already contacted Thai authorities for filming permission. This is considered a good sign that the rising economy is lifting all boats, particularly after the recent economic crisis. Based on current data, the number of movies to be shot in Thailand is expected to increase no less than 50% compared to last year, or around 1.2-1.5 billion Baht.

While Thailand is not yet the Hollywood of Asia, with government incentives for foreign filmmakers to shoot their productions in Thailand in the works, increased BOI attention to investment in entertainment infrastructure and additional funds for Thai filmmakers and others in the industry, it will not be long before Thailand takes its place as the entertainment capital of Asia.

May 2010

Page 5

Outward Foreign Direct Investment by Thailand: Crisis, Opportunity and Potential for Thai Investors

With participants agreeing that competitive advantage should be the policy focus, government and private organizations held a fruitful seminar on the promotion of investment in foreign countries by Thai entrepreneurs.

Under the title “Outward Foreign Direct Investment by Thailand: Crisis, Opportunity and Potential for Thai Investors,” the 25 March 2010 seminar in Bangkok was attended by officials of the Thailand Board of Investment (BOI), Office of the Thailand Trade Representative, Ministry of Commerce, and Export and Import Bank of Thailand (Exim Bank), and members of the overseas investment community.

Providing a forum for policy updates, concerns and expert opinions, the seminar resulted in useful recommendations that will be considered toward formulating policies and measures on Thailand’s outward investment promotion.

The main conclusion reached was that exploration of investment opportunities should be done in areas where Thai businesses could easily cultivate the local

advantages. This includes destinations with abundant raw materials, low labor costs, and markets showing growth and profit potential. A good start, participants agreed, would be to promote investment in neighboring countries offering benefits under the ASEAN Free Trade Agreement (AFTA).

BOI Secretary General Atchaka Sibunruang pointed out that Thailand’s outward foreign direct investment so far has not been robust, amounting to only 4% of GDP or US$10.857 billion during 1980-2008. In comparison, she noted, Singapore’s and Malaysia’s was much greater at 103.9% of GDP or US$189.094 billion and 30.4% of GDP or US$67.580 billion, respectively.

Dr. Atchaka added, however, that Thailand’s outward foreign direct investment will likely increase.

Thailand Trade Representative Suthad Setboonsarng emphasized another concern, urging the development of new business models to cope with any dramatic changes in the global economy so that investors from the country

May 2010

Page 6

can maintain competitiveness. As such investment contributes to the growth of Thailand’s economy, support of Thai businesses investing abroad is important and might require the revision of related laws to provide them with incentives, Suthad suggested.

Now is the right time for Thai entrepreneurs to consider investing overseas, according to Rachane Potjanasuntorn, deputy permanent secretary of the Ministry of Commerce. Their success in utilizing raw materials, labor and markets abroad will flow back to help boost development of industries at home, he said.

Deputy Permanent Secretary Rachane elaborated that Thai entrepreneurs should create brands and franchises in suitable countries as a means of expanding their market bases.

Small and medium enterprises received significant attention at the seminar. Deputy Rachane encouraged a closer look at whether rules on the remittance of profits back to the country need to be relaxed to make overseas investment easier for Thai SMEs. As further support, a special fund could be set up to provide low-interest loans to small companies seeking opportunities abroad, he added.

Somporn Chitphentom, Exim Bank senior executive vice president, gave a presentation on the bank’s services in support of businesses investing abroad. These include loans at attractive rates and bank guarantees for Thai overseas investors and their foreign business partners, and access to in-depth information on the various industries.

Seminar participants also hammered out suggested guidelines for Thai governmental agencies to follow in the promotion of outward foreign direct investment. These targeted five high-potential industries: logistics, textiles, garments and leather products; agriculture, fisheries and processed food; automobiles and electronic parts; tourism and services; and property and retail businesses. The guidelines are:

a) An active and continued government role in promoting outward investment

b) Give priority to outward investment promotion as a national policy

c) Provide tax incentives to businesses investing abroadd) Offer loans with low interest rates to investors doing

businesses oversease) Provide practical information on the legal and taxation

systems, business procedures and licenses, labor relations, and land ownership in the investment recipient countries

f) Provide analytical updates on investment opportunities in target countries

g) Coordinate with the public and private sectors in the investment recipient countries

h) Assist in solving problems that arise when investing abroad

These suggested guidelines will be considered for developing strategies and policies on outward investment promotion in the near future.

Net Flow of Thai Equity Investment Abroad Classified by Country

Source: Bank of Thailand

May 2010

Page 7

COMPANY INTERVIEW

A good film with wholesome values can change the way people think, improving the well-being of a nation. That is a guiding principle at Kantana Group Public Co., Ltd., and a deep personal belief of Mr. Jareuk Kaljareuk, chairman of its Executive Committee.

“Yes, a country needs good infrastructure, electricity, education and all that, but it also needs to ensure proper ethics among the people,” Mr. Jareuk said. “Great movies teaching morality can help accomplish that.”

This belief in quality behavior carries over to the conglomerate’s business operations, where quality work is also emphasized. With a reputation for excellence and professionalism, Bangkok-based Kantana offers services in three core areas: film, television, and entertainment education. It is the top center in Asia for film post-production work, with clients from 40 countries. The group’s labs, teams and studios have processed many international features, including “Memoirs of a Geisha,” “Superman Returns” and “Casino Royale,” along with innumerable Thai films and television programs. In fact, Kantana is a big reason why foreign companies see Thailand as a major filmmaking hub.

Kantana was established in 1951 as a radio drama company, with Mr. Jareuk’s father as one of the founders, and has grown into a major player in the entertainment industry. “For film, animation and television, we are No. 1 in the Asia region,” the chairman said. “We can do creative, production, post-production and distribution.”

He added that investment incentives from the Thailand Board of Investment (BOI) helped Kantana rise to the top. The conglomerate has eight BOI-promoted projects, the earliest launched in the 1980s.

Long History, Promising FutureThe film industry in Thailand boasts a history of more

Film, TV Production Company Puts Emphasis on Quality All Around

than 100 years. Films were being shot here as far back as the time of King Rama V to record royal duties at ceremonies. Because of this long history, the Thai people have accumulated a lot of knowledge in how to make a movie.

“One of our strengths is indeed our people,” Mr. Jareuk noted, saying that applies as much to Kantana as to the country. “It has always been this way. ‘The King and I’ was shot in Malaysia but they mainly used a Thai crew. ‘Tomb Raider’ was shot in Cambodia and most of the crew was Thai. If someone is shooting in this region, they will ask for a Thai crew. The Thai people have a good mind about art. A foundation of crafts and painting has been in our culture for centuries.”

Affordability is also important. Creating a film in Thailand costs a lot less than in America, Europe, South Korea and Japan, the last of which is the top foreign maker of 30-second commercial films here.

But there is still much room for growth. Recently named chairman of the Thai Film Federation, Mr. Jareuk has an ambitious agenda for pushing the local industry forward. One challenge is to crush copyright piracy. “A popular new movie is shown in the cinemas and only three days later illegal copies are being sold on the street,” he said, adding that lost revenue is impeding the growth of Thai filmmaking.

The federation, he noted, will urge the Thai government to enforce intellectual property rights more comprehensively, with tougher punishment of those who violate IPR laws.

Another big goal is to encourage heightened government financial support of the filmmaking sector. “Thailand has the potential to conquer the world market but we have not taken all of the necessary steps,” Mr. Jareuk said. “Our private sector is very strong but we need the government to do more to help us.”

Currently, government assistance is geared toward film services, such as the various post-production tasks. The federation wants to see support extended to the entire filmmaking process, including help with preproduction expenses such as the script and director fees, and with after-costs related to marketing the film.

“This would create a more level playing field with competitors such as South Korea, where the industry receives US$150 million in grants each year to make films. With more financial support, Thailand could make more movies, truly great ones,” he emphasized.

He gave an example of what the Thai industry can do. For many years running, individual Thai filmmakers have won awards at international festivals for their creative 30-second commercials for cinema and television. “A Thai filmmaker might be working with a budget of just US$30,000, whereas his American counterpart might have

May 2010

Page 8

US$1 million or even US$10 million for a similar project,” he said.

Ms. Patima Tantikom, a managing director at Kantana, added that good films can boost the international profile of a nation, enriching tourism coffers. “Look at New Zealand. Its popularity as a tourist destination soared after ‘Lord of the Rings’ was filmed there,” she said.

“Besides generating revenue, movies can make friends for your country,” Ms. Patima added. “Thailand should make it a national policy for films to be regarded as important exports.”

Robust Subsidiary StrengthThe conglomerate has a strong lineup of subsidiaries. Kantana Laboratories Co., Ltd. was founded in 1993 and is the region’s largest film factory. The lab provides a full range of processing and printing services, catering to both Thai and international features and commercials. It does language overlays, subtitling, processing, negative cutting, color correction and optical FX, and releases print copies.

One of the lab’s departments, Kantana Sound Studios was set up in 1994 and a year later became the first studio in Asia certified to be equipped with the Dolby system for sound mixing. Services at the world-class facility include recording, sound FX, Foley, language dubbing, editing, track laying, premix and final mix. A sophisticated satellite dish receives and delivers content from clients. And there is an impressive list of them, including 20th Century Fox, Warner Brothers, Walt Disney Pictures, Sony Pictures, Columbia Tristar, United, DreamWorks Pictures SKG, Focus Entertainment, Lion Gate, Lakeshore, Miramax, GTH and Sahamongkol.

The company also has a tie-in with Oriental Post Co. Ltd., a 50-50 joint venture launched in 1998 by Kantana and Loxley Video Post. Located at the same complex, Oriental Post provides state-of-the-art visual work that can complement the audio being done just a short stroll away.

“This is one-stop-shop service for TV broadcasting and feature films,” said John Galvin, director of post-production at Oriental Post. “There is a lot of convenience attached to the fact that customers can do the video here on this side of the car park and walk across to the other side for the audio.”

Using cutting-edge Digital Intermediate technology, Oriental Post creates stunning imagery and complex special effects. The company has done post-production work on films that have won visual effects awards at Cannes and other festivals.

Jean Claude Van Damme’s newest movie “The Eagle Path” was filmed in Thailand, and Oriental Post just finished doing the visual work while the Kantana side did all the film processing.

With BOI support, Kantana Movie Town (2002) Co., Ltd. broke new ground as the first industrial zone in Thailand dedicated to film and television production. The permanent set encompasses 340 acres in Nakhon Pathom province outside of Bangkok. A prime site for traditional and modern films featuring Thai architecture, the facility is complete with production studios, props, costumes, buildings and landscapes. In addition to popular Thai productions, episodes of the “Big Brother Croatia” and “America’s Next Top Model” television reality shows have been shot there.

To meet demand for high-end animation and video production, the conglomerate set up Kantana Animation Studios Co., Ltd. in 1987. The subsidiary creates world-class computer graphics content for commercials, feature films, television and cartoon series. Using 3-D animation, the studio designs and does the storyboarding, color schemes, modeling, camera angles, special effects, production and post-production. Its 2004 “Zon” animated series was broadcast in 52 episodes on nationwide TV. Another huge hit is “Khan Kluay,” released in 2006 as Kantana’s first 3-D animation feature film. The sequel came out in March 2009.

The subsidiary Kantana Motion Pictures Co., Ltd. offers filmmaking support, from assistance in acquiring government work permits and Thai Film Board shooting approval to arranging crews and casting actors. Kantana Creative Services Co., Ltd. provides marketing and other client services such as merchandising and licensing management.

The Kantana group has won more awards than a mixing board has buttons, knobs and faders. The domestic, Asian and international industries have recognized the conglomerate for its superior work on movies, television programs, dramas, documentaries ─ and social welfare projects as well.

Representing one of the group’s major efforts to uplift the Thai industry, the subsidiary Kantana Edutainment International Co., Ltd. specializes in producing skilled entertainment professionals through courses, workshops and other educational training.

“A lot of famous people in the industry have come out of Kantana,” Mr. Jareuk said.

The academy was established many years ago by his father and he carries on with the crusade today. “Young people are interested in film and animation. We teach them not just to be graduates but how to be professionals,” he noted.

The group looks at the future with robust enthusiasm and is always expanding. Later this year, the Kantana Institute will be launched to extend the educational aspect deeper in Thai society and beyond to the Asia region.

May 2010

Page 9

BOI INVESTMENT MISSIONS

On 16 April 2010, the Board of Investment Unit for Industrial Linkages participated in the Thailand-Korea Business Meeting: New Market Opportunities, in Seoul, South Korea.

From 13 to 18 April, Assistant Secretary General Duangjai Asawachintachit led an investment mission to the Russian Federation and met with officials of the Leningrad Regional Chamber of Commerce and Industry to discuss investment opportunities in Thailand.

From 18 to 23 April, Ms. Chitra Kulvanich, BOI Director, led an investment mission to Sydney and Melbourne, Australia, to discuss potential investments in Thailand’s alternative energy and automotive industries.

From 15 to 21 April, Ms. Hirunya Suchinai, BOI Deputy Secretary General, attended an investment seminar, Thailand Investment Opportunities, in Seoul, South Korea, and met with potential investors in the automotive, E&E and machinery industries.

From 1 to 6 April, His Excellency Mr. Chanchai Chairungruang, Minister of Industry, and Dr. Atchaka Sibunruang, BOI Secretary General, traveled to California, US, where they met with investors and officials in the film and high-tech industries.

From 24 to 29 April, Dr. Atchaka Sibunruang led an investment mission to India to discuss expanding bilateral investment between India and Thailand, and met with a number of potential investors and government officials.

May 2010

Page 10

INSIDE THE BOI

On 9 April, a group of journalists from Australia and New Zealand received a briefing at the BOI by Assistant Secretary General Duangjai Asawachintachit on the current investment environment in Thailand, including in the auto, energy, shipbuilding and food industries.

On 28 April, Director of the BOI International Relations Bureau Mrs. Vasana Mututanont hosted an investment seminar In Bangkok with a delegation from the Islamic Republic of Iran, with a view to increasing investment between the two countries.

BOI Calendar of Events

Thursday 10 June 2010Seminar on “Investment Opportunities in Thailand”, 10.00 – 12.30 hrs.Auckland, New ZealandOrganised by BOI Office, Sydney-------------------------------------------------------------------Tuesday 15 – Saturday 19 June 2010Business Networking for SMEs and Business delegations to participate in WORLD EXPO 2010Shanghai, ChinaOrganised by Regional Investment and Economic Center 2 ( Nakorn Ratchasima)-------------------------------------------------------------------Saturday 19 June 2010Seminar on “Thailand Investment Seminar” (Focusing on Information Technology, High Technology and Energy), 14.30 – 16.30 hrs.Fuzhou (Fujian), ChinaOrganised by BOI Office, Guangzhou -------------------------------------------------------------------

World Bank Economic Update, Continued from P. 3

From 10 to 12 April, Assistant Secretary General Duangjai Asawachintachit led an investment mission to Norway and met with various investors to discuss investment opportunities in Thailand in the auto, E&E, food processing and other industries.

including accelerating urbanization, has resulted in tripling energy consumption over the past three decades with projections for a further doubling overthe next two decades.”

Another assessment is that East Asia as a whole lags in R&D results, although the report did point out that Thailand is attracting qualified researchers and promoting innovation.

While most of those hurdles apply to Thailand, the country must deal with the challenges of drought, politics and delayed projects.

In reflecting on the forecasts and challenges posed by the World Bank, it should also be recalled that the country remains one the world’s largest economies, with a strong infrastructure and successive governments that have all been responsive to investors. Thailand will continue to meet all challenges and remain a superlative location for foreign direct investment in the region.

May 2010

Page 11

THAILAND ECONOMY-AT-A-GLANCE

Source: Stock Exchange

of Thailand

Source:Bank of Thailand

SET Monthly Closing Values

International Reserves / Short-term Debt (%)

Exchange Rate Trends

Industrial Capacity Utilization (%)

Head Office, Office of the Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900, ThailandTel: +66 (0) 2537 8111, +66 (0) 2537 8555 Fax: +66 (0) 2537 8177 Website: www.boi.go.th E-mail: head@boi.go.th

BEIJINGThailand Board of Investment, Beijing Office Royal Thai Embassy No.40 Guang Hua Road, Beijing, 100600, P.R.China Tel: (86-10) 6532-4510 Fax: (86-10) 6532-1620 E-mail: beijing@boi.go.th

FRANKFURTThailand Board of Investment, Frankfurt OfficeBethmannstr. 58, 5.OG60311 Frankfurt am Main Federal Republic of Germany Tel: (49 69) 92 91 230Fax: (49 69) 92 91 2320E-mail: fra@boi.go.th

GUANGZHOUThailand Board of Investment, Guangzhou Office Investment Promotion Section, Royal Thai Consulate-General, Guangzhou, Room 1216-1218, Garden Tower, 368 Huanshi Dong Road, Guangzhou, 510064 P.R.C. Tel: (86-20) 833-38999 Ext: 1216 to 18 (86-20) 838-77770Fax: (86-20) 838-72700 E-mail: guangzhou@boi.go.th

LOS ANGELES Thailand Board of Investment, Los Angeles Office Royal Thai Consulate-General 611 North Larchmont Boulevard, 3rd Floor, Los Angeles, CA 90004 USA Tel: (1-323) 960 1199Fax: (1-323) 960 1190E-mail: boila@boi.go.th

NEW YORKThailand Board of Investment, New York Office 61 Broadway, Suite 2810 New York, NY 10006 U.S.A.Tel: (1-212) 422 9009Fax: (1-212) 422 9119E-mail: nyc@boi.go.th

OSAKAThailand Board of Investment, Osaka Office Royal Thai Consulate-General, Osaka, Bangkok Bank Bldg. 7th Floor , 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan Tel: (81-6) 6271-1395 Fax: (81-6) 6271-1394E-mail: osaka@boi.go.th

PARISThailand Board of Investment, Paris Office Ambassade Royale de Thailande, 8, Rue Greuze75116 Paris, FranceTel: (33 1) 5690 2600 (33 1) 5690 2601Fax: (33 1) 5690 2602E-mail: par@boi.go.th

SEOULThailand Board of Investment, Seoul Office #1804, 18th Floor, Coryo Daeyungak Tower, 25-5, Chungmuro 1-ga, Jung-gu, Seoul, 100-706, Korea Tel: (822) 319-9998 Fax: (822) 319-9997E-mail: seoul@boi.go.th

SHANGHAIThailand Board of Investment, Shanghai OfficeRoyal Thai Consulate-General15 F., Crystal Century Tower, 567 Weihai Road, Shanghai, 200041, P.R.China Tel: (86-21) 6288-9728, (86-21) 6288-9729 Fax: (86-21) 6288-9730E-mail: shanghai@boi.go.th

STOCKHOLMThailand Board of Investment, Stockholm OfficeStureplan 4C 4th Floor 114 35 Stockholm, Sweden Tel: +46 (0)8 463 1158 +46 (0)8 463 1172 +46 (0)8 463 1174 to 75 Fax: +46 (0)8 463 1160 E-mail: stockholm@boi.go.th

SYDNEYThailand Board of Investment, Sydney Office Suite 101, Level 1, 234 George Street, NSW 2000, Australia Tel: (+61) 2 9252 4884 Fax: (+61) 2 9252 2883 E-mail: sydney@boi.go.th

TAIPEIThailand Board of Investment, Taipei Office Taipei World Trade Center 3rd Floor, Room 3E39-40, No.5, Xin-Yi Road, Sec.5Taipei 110, Taiwan, R.O.C. Tel: (886) 2-23456663Fax: (886) 2-23459223 E-mail: taipei@boi.go.th

TOKYOThailand Board of Investment, Tokyo Office Royal Thai Embassy8th Fl., Fukuda Building West,2-11-3 Akasaka, Minato-ku, Tokyo 107-0052 JapanTel: (81 3) 3582 1806Fax: (81 3) 3589 5176E-mail: tyo@boi.go.th

Facts about ThailandPopulation (2009) 67 millionASEAN Population 584 millionLiteracy Rate 96%Minimum Wage (1 Jan 10, Bangkok) 206 Baht/day

GDP (2009) US$ 263.5 billionGDP per Capita (2009) US$ 3,921.3GDP Growth (2009) -2.3%GDP Growth (2010, projected) 3.5%-4.5%Export Growth (2009) -13.9%Export Growth (2010, projected) 15.5%

Trade Balance (2009) US$ 19.4 billionCurrent Account Balance (2009) US$ 20.3 billionInternational Reserves (2009) US$ 138.4 billionCapacity Utilization (2009) 60.97%Manufacturing Production Index (2009) 180.44Customer Price Index (April 2010) 107.7(2007 = 100)

Corporate Income Tax 10-30%Withholding Tax 10-15%Value Added Tax 7%

April Average Exchange RatesUS$ 1 = 32.23 Baht€1 = 43.21 Baht£1 = 49.38 Baht100¥ = 34.51 Baht

Top 10 Exports 2010 (Jan-Feb)

Product Share Value (US$ bn)

1 Automatic data processing machinesand accessories

11.06 3.11

2 Motor cars, parts and accessories 9.61 2.703 Rubber 4.62 1.304 Electronic integrated circuits 3.93 1.105 Rubber products 3.44 0.976 Iron and steel and their products 3.20 0.907 Precious stones and jewellery 3.06 0.868 Rice 2.99 0.849 Polymers of ethylene, propylene, etc

in primary forms2.96 0.83

10 Machinery and parts thereof 2.87 0.81Total 28.13

Source: Ministry of Commerce

Source:Bank of Thailand

Source:Bank of Thailand

May 2010

Page 12