Presented to Ms Jennifer Tan by: Chew Yu Heng Samuel E Jasmine Ho Jie Min M Lin Pei Jing D Siti Q

Economic condition and structure in both country Balance of trade Infrastructure of Australia and Thailand Tax policy in Australia and Thailand Comparison of interest rate between Australia and Thaliand. Comparison of Thailand’s interest rate and inflation rate.

Real GDP GDP per capita Balance of Trade Unemployment rate

% change Australia Thailand The % change in real GDP for Australia has been after 1998 to On the other hand, the % change in real GDP for Thailand is since 1999 to 2001.

US$ Australia Thailand Australia GDP capita by US$ 7230 from Thailand GDP capita by only US$ 402 from

 Measurement Errors  Ignores Income Distribution  Exchange Rate Fluctuations  Purchasing Power

Thailand unemployment rate: from 1.5% in 1996 to 3.36% in 2001 Australia unemployment rate: from 8.2% in 1996 to 6.7% in 2001

Australia(US$m) Total exports Total imports Thailand(US$m) Total exports Total imports Australia: Balance of Trade - deficit of US$ 7,657 million in 2002 and a of deficit US$ 18,260 million in Thailand: Balance of trade - surplus of US$ 3,436 million in 2002 and a surplus of US$ 10,866 million in 2003.

Telephone mainlines Computers & Internet Developments of the countries

Australia - From 1995 to 2001, by 1.78% Thailand - From 1995 to 2001, by 55.86%

Australia  From 1995 to 2001, users have from 500,000 to 7,200,000.  ICT expenditure change is 36.77% Thailand  From , users have from 55,000 to 3,536,000  Thailand’s % change have by 6 times than that of Australia’s users  Thailand has developed its ICT and in ICT expenditure by 6.43%  Thailand is developing its economy and uses IT vastly.

Australia  : Efforts to make rail freight more competitive.  Extra funding provided to upgrade roads linking Melbourne, Sydney and Brisbane.  Greater private-sector participation in infrastructure development will be encouraged. Thailand  Expansionary policy  Government expenditure of US$25 bn on health, education, irrigation and transport  Focus of developing transport systems will be on Bangkok  An investment budget of (US$12bn) for projects to expand the network from 44 km to around 290 km.

Fiscal Policy - Taxation of Australia and Thailand Comparison of interest rate Comparison of interest rate and core inflation rate of Thailand.

Australia  Personal Income tax raises to 47% cutting in at earnings of around US$50,000 per year  Federal Govt collects a levy of 1.5% of personal taxable income  10% withholding tax on income flowing overseas are collected Thailand  25% in the personal income tax exemption (first Bt100,000 of taxable income)  Lower tax rate on 1 st Bt1m(US$25,000) in net profits on small businesses  Companies sales under Bt 1.8m not be subjected to value-added tax

Thailand – Interest rate from 6.5% in 2002 to 5.5% in Australia – Interest rate from 7.6% in 2002 to 7.8% in 2004.

Adapted from bank of Thailand

Inflation rate from 5.6% in 1995 to 7.2% in 1998 and to 0.9% in 1st Quarter of  Inflation rate cause cost of production to Interest rate from 13.9% in 1995 to 15.4% in 1997 and to 7.0% in 1st Quarter of  Interest rate makes loans cheaper.

Thailand’s economy is improving as there is a  Good balance of trade ( in surplus of US$ 7,430 million from 2002 to 2003) Thailand’s infrastructure and facilities improving. Better tax policy in Thailand. Interest rate lower than Australia. Inflation rate is low