InfoQuest (August 28, 2019) -- Thai Finance Minister Mr. Uttama Savanayana attended the opening ceremony of Thailand Focus 2019 and delivered a special speech titled "The New Policy Paradigm-A Future Enabled by New Policies". Thailand has suffered from many economic crises. Thai economy grew at a rate of 1 percent in 2014 and 4.1 percent in 2018. In 2018, the world economy grew at a rate of 3.6 percent. In 2019, amid sustained global economic slowdown, IMF has lowered the expectation of global economic growth rate this year to 3.2 percent. Despite economic decline, Thailand is still witnessing positive growth: in the first quarter, Thai economy grew at a rate of 2.8 percent, and 2.3 percent in the second quarter.
The current government has a full understanding of the current uncertainties, and has made all-round preparations to support Thai economy. Last week, a cabinet meeting approved a stimulus measure package worth 316 billion baht, used to eject capital to farmers and small and middle-sized enterprises to stimulate domestic consumption and investment. To be specific, the package includes: offering loans with 0.1 percent interest rate to farmers, suspending debt repayment, measures to alleviate the impact of drought, and offering more subsidy to 14.6 million people holding state welfare cards.
According to Mr. Uttam, the government is pushing for reform to realize sustainable development and enhance the state's competitiveness. The reform includes projects for technology development and innovation, the continued implementation of projects launched by the former government, especially infrastructure investment projects, such as Eastern Economic Corridor (EEC) project, digital infrastructure development projects for rural areas, and human resources development and technology investment projects. Thailand has engaged in various works according to plans and targets, thus making a series of results. WEF enhanced the annual ranking of Thailand in terms of competitiveness from the 40th in 2017 to the 38th in 2018. IMD enhanced the ranking of Thailand in terms of competitiveness from the 30th in 2017 to the 25th in 2018. According to the "Ease of Doing Business" released by World Bank, Thailand ranks among top 3 in ASEAN in terms of the ease of doing business, after Singapore and Malaysia; in terms of reliability rating, both Moody's and Fitch have adjusted the prospect forecast of Thailand from "stable" to "positive".
Besides, the government is working to offer convenience to investors. The Thai Board of Investment (BOI) is considering adjusting investment conditions to boost investment. The Ministry of Finance has deliberated laws related to e-commerce. These laws will enhance transparency, boost tax payment with electronic means, offer convenience to enterprises, and support small and middle-sized enterprises.
Currently, the whole Thai economy is under government control, and the government is capable of rolling out effective policies. In the future, new opportunities of economic growth lie in structural upgrade and reform in line with set strategies, including more investment in infrastructure, human resources development, and R&D investment. Thai government hopes to reassure investors that all measures of the government are within the framework of sound finance discipline.
The "consumption, shopping and food" measures are formulated to stimulate economy, alleviate the impacts of global economic slowdown, boost small and middle-sized enterprises, and enhance the consumption expenditure of low-income groups.
As for the report that some welfare card holders withdraw money to purchase liquor, the finance minister said that such matters do exist, yet only in small number. He had ordered relevant departments to communicate with the public and explain the usage of welfare cards.
The Federation of Thai Capital Market Organization (FETCO) has submitted a proposal to the Ministry of Finance, seeking to replace LTF with SEF. Currently, the Ministry of Finance is evaluating its impacts in all aspects, and will come into a conclusion in the near future.
Thailand's national development plan is implemented by both public and private sector, and Thai government promises to push for the continued implementation of various policies, which mean more investment opportunities in the future, said Mr. Uttam. Thailand boasts a prime location, a strong pool of top-notch talents, a huge market, and close link with other ASEAN countries. All these make it possible for Thailand to become the center of ASEAN.
Though the new government is a coalition government made up of 19 political parties, all of its works have proceeded smoothly so far. Each party knows well the high expectations of the people on the government, the first elected one over the 8 years. So everyone is going all out in their works.
Source: InfoQuest, by Tanit Tongnok / Nisarat / Rachada, translated by Xinhua Silk Road
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