Economics

Thai government wants to contain capital inflow

The Thai government should impose added measures to control the foreign capital influx, or the current financial uncertainties will continue unabated, according to a top fund manager.

Published

11 years ago

September 28, 2010

Boris Sullivan

The Thai government should impose added measures to control the foreign capital influx, or the current financial uncertainties will continue unabated, according to a top fund manager.

Pichit Akrathit, Executive Director and President of MFC Asset Management Pcl, said Bt160 billion in foreign capital had flowed into Thailand since early this year, resulting in the continued appreciation of the baht.

He said that foreign capital had overwhelmed Asia since the United States adopted a low interest policy in the hope of reviving its ailing economy. The move caused capital to flow into the region, particularly Thailand.

Mr Pichit conceded the interest hike could help slow the foreign capital inflow, but the Bank of Thailand remained hesitant to do that because it is concerned about rising inflation.

via More measures expected to contain capital inflow, says fund manager.

The private sector advises the Government to adjust interest rate so as to prevent over capital inflow, a cause of baht appreciation.

Foreign investors are still going for Thailand despite political crisis lingering on.

CP Group’s Deputy Chairman Archva Taolanon viewed that intensive capital inflow was a cause of baht appreciation. He said the baht currency at the moment was at 30.60 THB/ USD and likely to be stronger. By this year-end the baht value may be as strong as 29 THB/USD, if the Government does not adjust the policy interest rate.

However, Mr Archva stated that the operators should grab the chance for their business such as investing on machinery and expanding investment abroad.

According to the Small Business Credit Guarantee Corporation, the capital flows into Asian region so far is around 160 billion THB. The Bank of Thailand thus is required to manage interest rate and exchange rate, so as to slow down baht appreciation.

Economics

Thai fruit exports to FTA markets up 107 percent

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Published

4 days ago

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National News Bureau of Thailand

BANGKOK (NNT) – Thailand’s fruit exports continue to increase, despite the sluggish global economy caused by the COVID-19 pandemic, with key trade partners being countries that have free trade agreements (FTAs) with the kingdom.

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Economics

50:50 campaign may not get immediate extension

Published

4 weeks ago

March 26, 2021

National News Bureau of Thailand

BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.

The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.

Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.

The campaign has already been extended once, with the current end date set for 31st March.

The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.

The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.

Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.

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