Thailand can add more economic stimulus if needed - Fin Min

[Jonathan Fairfield]

Thailand can add more economic stimulus if needed - Fin Min

 

 

BANGKOK (Reuters) - Thailand is ready to add further fiscal support if a recently introduced stimulus package is insufficient, the finance minister said on Thursday, as the government tries to revive flagging domestic activity.

 

The government will take a few months to review the effect of the $10-billion package announced this month, as Thailand registered its weakest growth in nearly five years in the second quarter.

 

“We will wait for three to four months to see whether the measures are enough, as they are temporary,” Uttama Savanayana told reporters.

 

“If needed, we can introduce more, because our fiscal position is still strong.”

 

Uttama has said the stimulus package is expected to help lift growth in Southeast Asia’s second-largest economy to 3% this year. Last year’s expansion was 4.1%.

 

He said a “relocation package” to attract foreign companies would not be discussed by economic ministers on Friday, as previously announced.

 

“It may be discussed at the next meeting,” he said.

 

Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Clarence Fernandez

 

-- © Copyright Reuters 2019-08-29

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[timendres]

The article photo may not add more "economic" stimulus, but... thankfully their fiscal position is still strong.

[mok199]

The sandbag effect....

Edited August 29, 2019 by mok199

[Brigand]

I think the government should spend their currency reserves on Thailand, its people and it's infrastructure plus other stuff as then Thailand would be good to go on lots of fronts and the baht would find it's real level. A win all round imo. Trouble is, the fascists are in charge.

[Brer]

Yes they badly need to improve their infrastructure it’s pathetic.

Lots of money there but they won’t spend and now he wants to analyse poverty in Thailand, spend it create some jobs build some railways and fast. Build some better highways get serious on water management. 

A relocation package for foreign companies will no longer be discussed, I am not surprised as it would be so embarrassing when they can’t attract anyone.

[tomazbodner]

Yes, in worst case, they could make an all-in-one printer that prints 1000 baht banknotes, and a big fan, that first dries the ink, then blows them over the whole country for all the people to enjoy...

[MartiniMan]

The leading indicator in any economy is logistics - if we look at this sector we see how we are performing

There is no industrial rail to connect the industrial estates, and the road haulage is restricted it needs specific routes that are attractive to American and EU investors for outsourcing in simple industry (one huge area would be rubber, another iron and steel and lastly the crown - fruit!)

There is no zoning - so its a total mess and causes people to have to live next door to god knows what and this causes real estate for residential to suffer its just a mess - why invest when you could suddenly be living in a hell scape? No security for people at all.

Billions are lost in the non-existant property taxes - there is no reason not to let your property go derelict there is no code of conduct look how much money is left lying on the floor

They want to use the money gun to pump in fresh funds. Very foolish and foolhardy move in my humble oppinion it would be the very last option I would execute I would first look to the following

- Taxing property owners of vacant derelict buildings highly
- Tax breaks for landlords who keep occupancy above 80% so they can maintain their business (in turn domestic stimulus for construction supplies and workers)
- Industrial rail project with outside investment as a tax incentive - if you invest in thailand rail you can perform operations within the country with tax deductibles for every baht invested in rail you get 1.5 baht off your corporate tax for example
- Complete tax break for high tech industry as long as they provide a training campus as thailand has not enough tech campus for students to begin programming and hardware - take the idea of sri racha even further and build a hub for education - it begins in the class room!
- Agricultural grants for all farmers who produce over 100 tonnes per year so they can scale their next 100 tonnes without risk of failure (currently the 1.5x on new machinary is plenty of SME farms and this gives larger farmers the backing to go big and start larger scale crops for export which helps EVERYONE)
- Duty free on all ports that are used as a way point between locations or as refuelling stations as long as the company incorporates a subsidiary for order processing in thailand and employs over 50 people
- Open immigration to all skilled worker and same day processing on work permit to all high tech, financial, agriculture, construction and retail professionals - lets bring in the professionals and get this country buzzing with ideas like a melting pot - OPEN THE DOORS
 

[Isaan sailor]

Here’s a novel idea:  lay off the ChiCom hot money inflows at BoT, and let the Baht fall back to normal...

[Srikcir]

52 minutes ago, Isaan sailor said:

Here’s a novel idea:  lay off the ChiCom hot money inflows at BoT, and let the Baht fall back to normal...

Actually it's not China but Japan and Singapore that are the largest equity investors in Thailand.

China is smarter - it's likely the largest lender. Albeit, China's state-owned enterprises commonly partner with Thai companies to bid on Thai infrastructure projects. And usually on projects financed by Chinese loans!

It's intuitive that the annual growth in Thailand government debt in large part due to its infrastructure projects would pressure a lower baht value - but most oddly it doesn't.

Edited August 30, 2019 by Srikcir
grammar

[Srikcir]

18 hours ago, Jonathan Fairfield said:

“We will wait for three to four months to see whether the measures are enough, as they are temporary,”

TRANSLATION:

We give the public gifts and we expect loyalty in return.

When gifts run out because they're only temporary, that loyalty will be tested before a repeat.

Now that's what I call a sustaining economy elitist government.