Government Wants People To Spend More

[Jai Dee]

Government wants people to spend more

The Finance Ministry is reviewing new stimulus measures to lift economic growth and consumer spending which has slowed, with sales of cars and consumer durables such as housing all down from last year.

Finance Minister Chalongphob Sussangkarn, who met yesterday with top executives of state-owned banks, declined to offer details.

"We might also need to look at measures to help the property market as well," he said.

But Dr Chalongphob noted that any new fiscal measures would have to be carefully studied to ensure that the impact was truly beneficial for growth.

More from the Bangkok Post here.

[Mid]

slowly but surely the pattern is emerging ,

sorry people , there is no free lunch and the bill will have to be paid ..................................

[cclub75]

Don't be a joy-killer !

It's just the application of the... sufficiency economy ! In its purest form.

By the way, the fuss about it seems over.

Amazing how thing go fast in this country...

[sinom]

What a load of piffle !

pay me more and I'll try my best to spend it !

[wintermute]

Don't be a joy-killer !

It's just the application of the... sufficiency economy ! In its purest form.

By the way, the fuss about it seems over.

Amazing how thing go fast in this country...

It's too bad that the guy who was supposed to explain "sufficiency economy" and the former finance minister quit. Supposedly they had all the secrets to the sufficiency economy ready to unveil in an extravagant tell all meeting with foreign investors. Who will pick up the slack now? Maybe Sonthi can step up and give us some of his startling insights into the matter if he can take time off his busy schedule of making off cuff rants and planning a military dictatorship.

[jbsears]

The whole point of the "sufficiency economy" was to spend within your budget. So now that the Thais are doing this and the economy is slowing, the government wants people to spend more. You can't have a "sufficiency economy" and a fast growing economy at the same time. No politician wants to be linked to a slow growing economy even if it is good for the country. It just doesn't sound good to the public.

[wintermute]

The whole point of the "sufficiency economy" was to spend within your budget. So now that the Thais are doing this and the economy is slowing, the government wants people to spend more. You can't have a "sufficiency economy" and a fast growing economy at the same time. No politician wants to be linked to a slow growing economy even if it is good for the country. It just doesn't sound good to the public.

Thailand: hub of policy contradictions.

[leisurely]

Can't afford to spend more. Since we arrived four years ago, the cost of petrol has doubled virtually and grocery shopping costs have escalated too. Husband's salary has increased very little

[Mid]

Can't afford to spend more. Since we arrived four years ago, the cost of petrol has doubled virtually and grocery shopping costs have escalated too. Husband's salary has increased very little

now we get to the meat .................................

[Hampstead]

The great sales pitch on the coup has vapourised into reality of old greedy farts getting their hands on the money making machine of large corporations in thailand.

Only problem is, in this day and age you need a few more guys at the helm who can keep the machine well oiled and producing lots and lots of cash.

The money making machine is breaking down and now the old greedy farts are having to resort to desperate measures to keep their new pots of gold well managed for the future.

As for the sufficiency economy 'what a joke'

so a guy with 8 mercedez benz doesnt buy his 9th, but the poor guy has to think that a bowl of rice is sufficient for his daily life.

Only a crack addict would come up with such an insane idea for an economy.

[LaoPo]

Government wants people to spend more

The Finance Ministry is reviewing new stimulus measures to lift economic growth and consumer spending which has slowed, with sales of cars and consumer durables such as housing all down from last year.

Finance Minister Chalongphob Sussangkarn, who met yesterday with top executives of state-owned banks, declined to offer details.

"We might also need to look at measures to help the property market as well," he said.

But Dr Chalongphob noted that any new fiscal measures would have to be carefully studied to ensure that the impact was truly beneficial for growth.

More from the Bangkok Post here.

This government never stops to amaze me, now asking for more spending.....but, Thailand and thus the Thai themselves are facing a:

* declining economy

* exports declining due to the increasing -and now expensive- Baht.

* less and less state-income on taxes (due to declining sales on durable goods like cars and housing)

* the wish to attract 'wealthy' tourists (and therefore less 'normal' tourists)

but, "we might also need to look at measures to help the property market as well"..... yeah yeah, for whom ?

I wonder, do the Ministers of the 'interim' Thai Government ever talk to each other ?

Maybe a few ideas would work in order to boost the Thai economy, from a simple mind like me.....:

* install/create -on a very short notice- special economic tax-free zones (for a number of years) for foreign investors/companies/factories.

* 'free' the now-stupid housing/villa market and allow foreigners to build/buy their own retirement home, including land; TRILLIONS of FOREIGN CURRENCY would flow into the country.

* give those people a renewable 5-year retirement Visa, including their spouse (and children).

* imagine the money they will spend....

* imagine the boost in jobs and salaries (more taxes)

* but, a real boost in Thai economy would be a devaluation and not as said: " Dr Chalongphob said expectations of declining interest rates could be leading consumers to delay some major spending decisions. "

OK, I know, 'we' still have to deal with the old Thai elite afraid for their prestige, power, money

LaoPo

[pete_r]

I don't see people spending more until they know where the economy is going. And they won't know that until the elections.

[cclub75]

But wait... there is more...

BOT has spent... 1 TRILLION BATH to... weaken the THB !

With the tremendous success that we know...

http://www.bangkokpost.com/breaking_news/b...s.php?id=117620

Just to remind you : the budget 2007 for the government is 1.56 trillions.

http://www.thaivisa.com/forum/index.php?sh...8&hl=budget

They are real winners...

[0Mix1up]

* 'free' the now-stupid housing/villa market and allow foreigners to build/buy their own retirement home, including land; TRILLIONS of FOREIGN CURRENCY would flow into the countr

no doubt.

Problem is I saw a Thai movie recently and heard/saw(subtitles) the Thai national Anthem and it sings along the lines of: "Thailand is for Thai people only"

I assume this is correct?

Anyone know all the words?

Not much chance if they all sing that.

[PanzerJohn]

There was a segment on BBC news 24 the other night about how declining tourism and spending is hitting stall holders at Chatuchak market.One stall holder reckoned he was 50 % down on the previous year.

[atlastaname]

If the Thai govt just let anyone who wanted to come to LOS to come and stay as long as they liked , spending would go through the roof (more people = more spending)...problem solved . Not difficult is it ?

[Heng]

* 'free' the now-stupid housing/villa market and allow foreigners to build/buy their own retirement home, including land; TRILLIONS of FOREIGN CURRENCY would flow into the countr

no doubt.

Problem is I saw a Thai movie recently and heard/saw(subtitles) the Thai national Anthem and it sings along the lines of: "Thailand is for Thai people only"

I assume this is correct?

Anyone know all the words?

Not much chance if they all sing that.

Actually I think there is another secret verse...

"Thailand is also for the Chinese overlords.... so worry not about foreign investment.... we're well on our way to becoming a Chinese province as it is.... maybe not officially but really, for all practical purposes, ...who are we kidding?"

[Johpa]

The great sales pitch on the coup has vapourised into reality of old greedy farts getting their hands on the money making machine of large corporations in thailand.

Only problem is, in this day and age you need a few more guys at the helm who can keep the machine well oiled and producing lots and lots of cash.

The money making machine is breaking down and now the old greedy farts are having to resort to desperate measures to keep their new pots of gold well managed for the future.

As for the sufficiency economy 'what a joke'

so a guy with 8 mercedez benz doesnt buy his 9th, but the poor guy has to think that a bowl of rice is sufficient for his daily life.

Only a crack addict would come up with such an insane idea for an economy.

The "sufficiency economy" is more a philosphical viewpoint than a recipe for structuring macro-economic goals. It is really no different than telling my son to hang up the towel to dry after he showers and reuse it rather than pull a fresh one out of the closet every day.

The joke is that Thailand continues to be a country run by, as you say, greedy old farts (and young ones too) who continue to manage the country in a colonial manner, exploiting natural resouces and cheap labor and then sending the profits offshore. The ruling Bangkok Sino-Thai elite, and its allies, rule the country little differently than did the Dutch rule Indonesia, the French rule Vietnam, or the Brits rule India. And they even have their little neo-Sahib white men running their IT infrastructure for them with a host of other neo-Sahibs setting up shop to cater to the needs (food, education, entertainment other than cheap sex) of this newly expanded neo-Sahib community.

Chaiyo!

[Temporaneo]

So the Thai government wants me to spend....what could I buy ?

a small villa ? I cannot.Land is for Thai only.

a vehicle ? I cannot get a Thai driving license with just a tourist Visa so what's the use ?

actually I might find quite difficult even to buy a steamed rice fare for 5 baht, if they keep on with the Visa crap and force me to leave the country.

Perhaps the invitation was for Thai citizens only. I think they are already spending all the 7,000 baht of average salary they earn, though.

[Cheeky Farang]

Money is not everything.

There's MasterCard & Visa.

[peter991]

My Thai bf spends everything I send him. Have you ever seen a Thai with a budget? Have you ever seen a Thai who can manage to budget (live within their income)? They are few and far between.

Peter

[Jai Dee]

Problem is I saw a Thai movie recently and heard/saw(subtitles) the Thai national Anthem and it sings along the lines of: "Thailand is for Thai people only"

I assume this is correct?

Anyone know all the words?

The Thai National anthem translates into English as follows:

"Thailand is the unity of Thai blood and body.

The whole country belongs to the Thai people, maintaining thus far for the Thai.

All Thais intend to unite together.

Thais love peace but do not fear to fight.

They will never let anyone threaten their independence.

They will sacrifice every drop of their blood to contribute to the nation, will serve their country with pride and prestige full of victory.

CHAI YO. (Hurrah!)"

However, in the movie theatre you probably heard the Thai Royal anthem. It is played in the presence of Royalty and in cinemas and temple fairs amongst other special occasions when an image of the King is shown and everyone stands to attention to show respect.

It translates into English as follows:

"We, Your Majesty's loyal subjects,

Pay homage with deep heartfelt veneration,

To the supreme Protector of the Realm,

The mightiest of monarchs complete with transcendent virtues,

Under whose benevolent rule, we your subjects,

Receive protection and happiness,

Prosperity and peace.

And we wish that whatsoever Your Majesty may desire,

The same may be fulfilled. Hurrah!"

[andook]

I don't see people spending more until they know where the economy is going. And they won't know that until the elections.

Exactly. People tighten their belts during times of uncertainty. Human nature, and anybody working in any retail industry knows this.

When you have a notoriously unwieldy, inept, and wasteful military at the helm of a country, its citizens are not exactly going to go on the razz, are they?

The conflicting policies, sabre-rattling nationalism, and back-arse-wards mismanagement of the economy hardly help either.

[Ricardo]

We built our new home when the baht was about 75 to the £UK. It is now about 68, so the value of our retirement-income has fallen, and we are spending fewer baht.

Give me a rate of 75-80 again, and my wife will be only-too-glad to increase our spending, in response to the government's call.

Meanwhile just remember - every baht we spend is still extra to the Thai economy, compared to what there was, before we moved here. And due to the 'multiplier-effect' - it adds several baht to the Thai GDP .

Which is why the Thai government might try, with appropriate safeguards of course, to encourage more foreign-residents. If they really want to boost the domestic economy as claimed.

[Temporaneo]

Which is why the Thai government might try, with appropriate safeguards of course, to encourage more foreign-residents. If they really want to boost the domestic economy as claimed.

For now, they are trying to kick a lot of people out. All under 50 and unmarried guys like me must peregrinate to beg a visa that no one knows if will be granted or not.

Indeed a great way to boost economy (besides each time I exit Thailand I visit a new country and check for a possible retirement there, so they are actually promoting and advertising their competitors )

[Johpa]

Meanwhile just remember - every baht we spend is still extra to the Thai economy, compared to what there was, before we moved here. And due to the 'multiplier-effect' - it adds several baht to the Thai GDP .

Which is why the Thai government might try, with appropriate safeguards of course, to encourage more foreign-residents. If they really want to boost the domestic economy as claimed.

I am not sure exactly what "appropriate safeguards" might entail as I fear I am not part of the ex-pat community preferred by the Bangkok elite.

And not every baat ex-pats spends adds to the Thai economy. Money spent on imported items does not stay in Thailand long. And the multiplier effect is quite limited as most imports are controlled by monopolies and the owners of those monopolies tend to move their profits quickly offshore. Same goes when you buy from Lotus or Tesco, profits from the sales are not incorporated into the local "multiplier effect". Once funds enter the corporate coffers, the multiplier effect that benefits the larger society is greatly reduced.

[Dupont]

We built our new home when the baht was about 75 to the £UK. It is now about 68, so the value of our retirement-income has fallen, and we are spending fewer baht.

Give me a rate of 75-80 again, and my wife will be only-too-glad to increase our spending, in response to the government's call.

Meanwhile just remember - every baht we spend is still extra to the Thai economy, compared to what there was, before we moved here. And due to the 'multiplier-effect' - it adds several baht to the Thai GDP .

Which is why the Thai government might try, with appropriate safeguards of course, to encourage more foreign-residents. If they really want to boost the domestic economy as claimed.

For the record, your house has risen in value if you are valuing it in pounds sterling. Each million baht you put into your house cost you 13,333 pounds. Now, each million baht is worth 14,705 pounds. So you have gained nearly 1,400 POUNDS for every million baht your house is worth. On a 5 million baht house, you just made 7000 pounds in a year on the exchange rate. Course, you would have to sell it and get the money back to blighty PDQ to realise the profit!

You must realise as well that the people at the top do not give a sh1t about us or our money. It's about differentials, ie. They want to be rich and aloof over a poor population and they certainly don't want the poor northern folk getting in on the act, even in a small way. As they are all old and rich, they don't need to make more money, they just need the poor to stay poor so they can remain aloof.

They only welcome our money if it goes into their pockets, and recently that has not been happening. Hence the pursuit of the "Quality Tourist". They will be hoping that richer people will not want to mingle with the poor underclasses of Thailand, therefore they wont be enriching them and god forbid, educating them, thus maintaining the status quo.

I have never heard such mistrust and complaining about Thailand (here on TV, at work, out drinking, in the shops etc) as I have done this past year. This negative sentiment will undoubtedly turn in to major loss of income for the Country if they don't adress it soon.

[roblin]

i spend about 20k baht on my visarun to singapore. mission accomplished? oh forgot, they meant that people should spend more in Thailand. my bad....

[dominique355]

And not every baat ex-pats spends adds to the Thai economy. Money spent on imported items does not stay in Thailand long.

With the heavy import taxes, quite a big share, sometimes more than 50% of what is spent on import items stays in Thailand without an actual countervalue from Thai economy or government.

[fiscalo]

There was a segment on BBC news 24 the other night about how declining tourism and spending is hitting stall holders at Chatuchak market.One stall holder reckoned he was 50 % down on the previous year.

Oh, But that is not a problem for Thai people. They just rise the prices.