ABERDEEN NEW THAI INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 AUGUST 2009

The following is the unaudited Interim Board Report for the six months ended 31 August 2009.

INTERIM BOARD REPORT

Investment Objective

The investment objective of the Company is to provide Shareholders with a high level of long-term, above average capital growth through investment in Thailand.

Investment Policy

The Company's assets are invested in a diversified portfolio of securities (substantially in the form of equities or equity related securities such as convertible securities and warrants) in companies spread across a range of industries which are quoted on the Stock Exchange of Thailand ("SET") Index.

Background

During what proved to be an excellent six months for equity markets everywhere, your Company's net asset value total return (in Sterling terms) was 33.0%, compared to a rise of 46.2% in the benchmark SET Index. Your Company's share price rose by 27.3% (including dividends reinvested), partially due to a widening, from 14.1% to 18.1%, in the discount to net asset value.

The strong rally during the review period was the result of a collective realisation that the world would avoid a widespread slump. In such an environment it was weaker companies that had previously fallen the most that outperformed. Your Manager, with its focus on stronger, well-managed companies, accepts that there will occasionally be periods when underperformance of the benchmark should be expected. The review period has been a particularly extreme case of this, reflecting how pessimistic investors were earlier this year. 

On 6 May 2009, the Board declared an increased annual dividend of 3.5p per Ordinary share in respect of the year ended 28 February 2009 which was paid to shareholders who were on the register on 2 July 2009. The increase of 27.3% on the previous year (2008 - 2.75p) reflected the continuing strong earnings flow from the investment portfolio. Notwithstanding the recent downturn your Company has seen significant revenue returns and as at the period end held over £2.4 million in revenue reserves.

Overview

Thai equities underwent a strong rally during the period under review. The SET Index rebounded by more than 40%, in line with the region generally, as an appetite for risk returned amid growing optimism that the worst of the global economic downturn had passed. We have now entered the stage where equities will continue to rally because of economies' weakness rather than in spite of it and monetary conditions will remain loose as a result. Paradoxically, the major risk for markets now is that economies overheat, though we do not see this as a serious risk in the near term. 

According to stock exchange data, overseas investors bought a net 32.2 billion baht of Thai stocks in the eight-month period between January and August 2009, compared with net sales of 97.5 billion baht for the same period in 2008. The volte-face in investor sentiment has been nothing short of dramatic. Initially, worsening global economic indicators prompted fears of a widespread slump. However, an increasing belief that unprecedented stimulatory measures worldwide, both monetary and fiscal, would obviate a prolonged downturn allayed investors' fears.

Thailand was among the export-oriented economies in the region which saw a significant improvement in second-quarter GDP from the previous quarter, as export declines eased. Such positive, or rather less negative, economic signals have led to a recent improvement in consumer confidence. The baht weakened by about 7% against sterling during the period; this was due in part to the central bank's loosening of monetary policy which saw interest rates hit a five-year low of 1.25% and also to the strength of sterling following its decline last year.

Meanwhile, expansionary fiscal policy has been employed to counter the decline in private demand. The centrepiece of Prime Minister Abhisit's administration is a three-year stimulus program worth 1.06 trillion baht, targeted at healthcare, education and infrastructure projects and part financed by 700 billion baht in new borrowing. However, the realisation of those plans is contingent on the staying power of the administration, which is vulnerable to a highly changeable political climate. 

Not surprisingly, the domestic political scene remained as fractious as ever. Initially, events mirrored those of last year, as supporters of Thaksin Shinawatra fought against the legitimacy of Prime Minister Abhisit's election by blockading his office and forcing the cancellation of a regional summit, which led the government to declare a state of emergency. Later, their petition to seek a royal pardon for Thaksin underscored the acute division in the political landscape. 

Portfolio

The underperformance of the portfolio for the period to 31 August 2009 was due largely to the fact that weaker companies led the rally. Thus a number of the portfolio's core holdings, such as Thai Reinsurance, Siam Makro, Amarin Printing, Bangkok Insurance, Goodyear, Big C Supercenter and BEC World, significantly lagged behind the index. All of these are steady, defensive companies that tend to get left behind in rallies such as the one just witnessed. However, the Company's borrowing, which equated to 6.1% of net asset value as at 31 August 2009, enhanced performance during the period.

Notwithstanding the overall underperformance, your Manager is comfortable with the existing holdings. The Manager has avoided stocks that are deemed to be either highly cyclical or to have corporate governance issues. Instead, your Manager prefers companies with sound, steady businesses run by proven management teams.

Domestically-oriented stocks generally underperformed during the review period. Holdings in retailers Siam Makro and Big C Supercenter lagged in the market rally, though it should be noted that both companies have delivered robust performances in the past several years. In the media and publishing sector, Amarin Printing was hurt by lower advertising revenue, while BEC World's share price was depressed by MCOT's renegotiation to raise its concession fee for TV Channel 3. Nevertheless, both holdings remain well funded and have substantial cash piles. Car tyre-maker Goodyear was hit by lower sales of its OEM and REM tyres, while its margins were affected by a fire at one of its factories. 

On an encouraging note, Hana Microelectronics was the top performer in the portfolio. Its shares rebounded in the second quarter, thanks to a strong rise in orders. Nevertheless, management remains cautious in its earnings outlook because of uncertain economic prospects. Holdings in the construction materials sector, such as Siam Cement and Siam City Cement, also held up well, supported by government stimulus. In financials, lender Tisco Financial benefited from its broadening business, while Kasikornbank, one of the largest local private banks, gained on prospects of an economic recovery. Elsewhere, hopes of a pick up in demand lifted vehicle lamp manufacturer Thai Stanley Electric's share price. 

Portfolio transaction activity was minimal during the review period which is to be expected given your Manager's long investment time horizon.

Subscription shares

Further to the Company's announcement on 21 September 2009, the Board will publish shortly its proposals in relation to a bonus issue of Subscription Shares to existing Shareholders. Included in the Circular, which will be issued to Shareholders, will be a separate Letter from the Chairman which sets out the details of the Board's proposals.

Outlook

Although earnings have exceeded forecasts it should be noted that expectations were low to begin with. Stimulus measures have supported markets and the up-tick in foreign capital inflows is encouraging, but much still hinges on the government's ability to preserve fragile political stability and investor confidence. In spite of the current market optimism, some short-term caution is warranted given the rapid rise in global stock markets.

However, Thailand's government finances remain sound: year-to-date reserves stand at US$132 billion, which should be a significant buttress to domestic growth. While the Thai economy appears to be showing signs of improvement, sustainability remains precarious, dependent on a broader recovery in global trade. Thus in the medium-term, with the implementation of government spending plans, the larger contribution to growth may come from domestic demand. Thailand's economy and financial system do not have the same structural problems relating to excessive leverage as in the West but very loose monetary policy, combined with nagging deflationary pressures, foreshadow a degree of uncertainty for the nation's long-term economic outlook.

Since the period end growing anxiety over King Bhumibol's health has been reflected in the Thai stock market. At the age of 82, it is unsurprising that the King's health, and the issues relating to a successor, remain an overhanging concern for Thai investors. 

Amid such challenging conditions, it will be the stronger, better-managed companies, favoured by your Manager's investment style, which should outperform in the long run. These tend to be found in domestic sectors, rather than in highly competitive external sectors and comprise the bulk of your Company's holdings. With your portfolio currently trading on a multiple of 15.1 times 2009 earnings, valuations are attractive, particularly in relation to other regional markets. Your Company continues to post robust long-term performance numbers with an excellent dividend track record and is one of the few closed-end funds dedicated to giving investors access to the Thai market.

Principal risks and uncertainties

Investment in Thai equities involves a greater degree of risk than that usually associated with investment in major securities markets. The securities which the Company owns may be considered speculative because of the higher degree of risk.

The principal risks and uncertainties are detailed below. Other risks include:

(i)      Performance risk: The performance of the portfolio relative to the Benchmark is monitored closely by the
         Board;

(ii)     Discount volatility: The Company's shares may trade at a discount to its underlying net asset value. The
         Board monitors any requirement for share buybacks on an ongoing basis; and

(iii)    Regulatory risk: The Company operates in a complex regulatory environment and faces a number of
         regulatory risks. Breaches of regulations, such as Section 842 of the Income and Corporation Taxes Act
         1988, the UKLA Listing Rules or Companies Act legislation, could lead to a number of detrimental
         outcomes and reputational damage. The Audit and Management Engagement Committee monitors
         compliance with regulations by reviewing internal control reports from the Manager.

Market price of Ordinary Shares

The market price and the realisable value of the Ordinary shares are primarily affected by the underlying net asset value attributable to each Ordinary share. Other factors which may influence the market price include market conditions, general investor sentiment and the interaction of supply and demand for the Ordinary shares. 

As such, the market value and the realisable value of the Ordinary shares may fluctuate and vary considerably from the underlying net asset value of the Ordinary shares and investors may not be able to realise the value of their original investment.

 Dividends

The Company will only pay a dividend on the Ordinary shares to the extent that it has profits available for that purpose. The ability of the Company to pay a dividend in respect of the Ordinary shares and any future dividend growth will depend primarily on the level of income received from its investments. Accordingly, the amount of the dividends paid to Shareholders may fluctuate.

Borrowings

Whilst the use of borrowings should enhance the total return on the Ordinary shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is less than the cost of borrowing, further reducing the total return on the Ordinary shares. The Company currently utilises gearing in the form of bank borrowings.

Market Risks

The Company's investments are subject to normal market fluctuations and the risks inherent in the purchase, holding or selling of securities and there can be no assurance that appreciation in the value of those investments will occur.

Political Risk

In common with stockmarkets in other emerging and less developed countries, investments in Thailand are subject to a greater degree of political risk than that with which investors might be familiar.

Foreign Exchange Risks

The Company accounts for its activities and reports its results in Pounds Sterling ("Sterling") while investments are made and realised in Thai Baht; bank borrowings are presently denominated in Sterling. 

It is not the Company's present intention to engage in currency hedging, although it reserves the right to do so. Accordingly, the movement of exchange rates between Sterling, Thai Baht and other currencies in which the Company's borrowings may be drawn down from time to time may have a material effect, unfavourable as well as favourable, on the total return otherwise experienced on the investments made by the Company.

Taxation and Exchange Controls

Any change in the Company's tax status or in taxation legislation (including the tax treatment of dividends or other investment income received by the Company) could affect the value of the investments held by the Company and the Company's ability to provide returns to Shareholders or alter the post-tax returns to Shareholders.

The Company may purchase investments that may be subject to exchange controls or withholding taxes in the Thai jurisdiction. In the event that exchange controls or withholding taxes are imposed with respect to any of the Company's investments, the effect will generally be to reduce both the income received by the Company from its investments and/or the capital value of the affected investments.

Related Parties

Mr Hugh Young, a director of the Company, is also a director of the investment manager, Aberdeen Asset Management Asia Limited. 

Mr Peter Bristowe, a director of the Company, is also a director and shareholder of Edison Investment Management Research Limited which supplies investor relations and equity research services to the Company to the value of £10,000 per annum.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

-      the Interim Financial Statements have been prepared in accordance with the Accounting Standards Board's
       statement "Half-Yearly Financial Reports"; and

-      the Interim Board Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the
       FSA's Disclosure and Transparency Rules.

For Aberdeen New Thai Investment Trust PLC

Keith Falconer

Chairman

30 October 2009

  INCOME STATEMENT

  INCOME STATEMENT 

  INCOME STATEMENT

  BALANCE SHEET

  RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

  CASHFLOW STATEMENT

  NOTES:

3.    Taxation

Following changes in the Finance Bill 2009 dividends and other distributions from foreign companies received on or after 1 July 2009 have largely been exempt from UK corporation tax.

This change in legislation will enhance the revenue available for distribution to Shareholders by cutting the UK Corporation tax charge currently suffered by the Company. However, the Company continues to be subject to irrecoverable Thai withholding tax of 10% on income received form underlying portfolio holdings.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.

For Aberdeen New Thai Investment Trust plc

Aberdeen Asset Management PLC, Secretary

END

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