Connect with us

Economics

Stimulus measures will remain up to two years

Stimulus measures will remain in place over the next one to two years, Finance Minister Korn Chatikavanij said yesterday, adding that his ministry was assessing how long Thailand could support budget deficits as a result of fiscal injections.

Avatar

Published

on

growth

Stimulus measures will remain in place over the next one to two years, Finance Minister Korn Chatikavanij said yesterday, adding that his ministry was assessing how long Thailand could support budget deficits as a result of fiscal injections.

“The Finance Ministry is producing a five-to-10-year plan, to establish how many years budget deficits can continue and what will be the ratio of public debt to gross domestic product.

“If the government needs to take the lead in investment, and there is a low capacity to handle deficits, we’ll need to welcome more local and foreign investment participation. State enterprises should also play a bigger role,” he said.

The minister said if the government could not boost private participation or the role of state enterprises, Thailand would see low investment as government revenue alone could not support investment.

He also highlighted the possibility of reforming the tax system and introducing new taxes. Tax income at 15-16 per cent of GDP is too low when compared with 20-50 per cent in some countries, he said.

Stimulus measures will remain in place over the next one to two years, Finance Minister Korn Chatikavanij said yesterday, adding that his ministry was assessing how long Thailand could support budget deficits as a result of fiscal injections.

Siam City Bank president and CEO Chaiwat Uthaiwan agreed that to roll back stimulus packages now would be dangerous for the economy, as the recovery had only just started.

Separately, Budget Bureau director-general Walairat Sriarun said the bureau was ready to finance Thai Khemkhaeng projects with annual budgets, if the Bt400-billion borrowing bill did not win parliamentary approval.

Projects that provide economic returns and create jobs will be the priority, and the 2011 fiscal budget will be allocated for them, she said.

The rest is here:

Stimulus measures to stay up to 2 years
Infrastructure services, if quickly improved, could promote a better investment climate in Thailand

Recent crashes in Thailand’s GDP and export markets, plus the drop in tourism fuelled by recession and last year’s domestic political turmoil, have dispelled illusions that the country is insulated from the effects of the global downturn. Numerous indicators of economic health are hitting the red, foreign investment is evaporating, unemployment is surging, and credit lines are freezing up. Thailand’s government still says there is a possibility of positive growth this year, despite facing a rougher ride than in the 1997 Asian financial crisis as conditions infest the real economy on a broader scale.
The approved Financial Institution Business Act (FIBA) facilitates increase in foreign ownership in Thai foreign institutions. The Financial Institution Business Act (FIBA) became effective on 3 August 2008 as planned. The FIBA allows financial institutions to raise the foreign limit from 25 percent to 49 percent with permission from the BOT and foreign investors may own more than 49 percent equity stake in Thai banks with permission from the Ministry of Finance and recommendation by the BOT. The increase in foreign limit would encourage Thai banks to seek foreign strategic partners to strengthen the capital base, improve core banking business, IT platform, know-how and add inorganic growth to Thai banks.

Implementation of Reforms in Thailand

These include both universal tariff reductions, which are applicable to goods from all countries, and specific tariff reductions that result from free trade agreements (FTAs) with other countries and regions. For example, since June 2008, a wide range of agricultural and manufactured products from ASEAN member countries, China, India, and New Zealand enjoy lower or no tariffs. Among others, they are butter, vegetable extracts and fats, pharmaceutical products, paper and tubes for a medical use, pumps for liquid, air and vacuum pumps, commercial trucks, steel tubes, iron wires, aluminum structures, dish washing machines, weighting machines, and switching circuits and boards parts. In addition, the government will also cut or cancel tariffs for three types of animal feeds (soybean, corn, and fish meals) in 2009. The magnitude of changes varies across different trade agreements, such as those with the WTO, ASEAN, ACMECS28, Japan, Australia, and New Zealand.

A clear policy framework is needed, and the development direction set forth by the policy makers should be based on reliable information on the current status of infrastructure development. Systematic, periodic, and internationally-standard information collection within the infrastructure sector will provide Thai policy makers with good background with which to assess the current situation, identify bottlenecks, set clear policy direction, and prioritize projects more effectively .

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

Economics

Thailand has the worst Pension System from 37 Countries

Thailand was in the bottom slot of 37 countries surveyed and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.

Boris Sullivan

Published

on

The Netherlands again took the top spot in 2019 with most workers benefiting from defined benefit plans based on lifetime average earnings.

(more…)

Continue Reading

Economics

IMF and SCB lower Thai growth forecast under 3%

IMF and SCB have joined other banks and organisations to predict Thai economic growth under 3% for 2019.

Olivier Languepin

Published

on

Siam Commercial Bank’s (SCB) Economics Intelligence Center (EIC) has adjusted its Thailand 2019 economic growth projection from 3 percent down to 2.8 percent.

(more…)

Continue Reading

Economics

Thailand drops to 40th in WEF Global Competitiveness Report

Thailand’s competitiveness ranking has dropped two spots from 38th to 40th in the World Economic Forum’s Global Competitiveness Index rankings for 2019

Olivier Languepin

Published

on

Thailand is the 40 most competitive nation in the world out of 140 countries ranked in the 2018 edition of the Global Competitiveness Report published by the World Economic Forum.

(more…)

Continue Reading

Most Read

Upcoming Events

Nov 06

2nd World Congress on Pediatrics and Child care

November 6 @ 8:00 am - November 7 @ 7:00 pm BMT
Radisson Hotel Narita
Tomisato-shi
Nov 07

3rd World Congress On Gynecology, Obstetrics & Reproductive Health

November 7 @ 9:00 am - November 8 @ 4:00 pm BMT
Nov 11

Digital Marketing Summit Asia 2019

November 11 - November 15

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,612 other subscribers

Trending