Prayut to private sector: Accelerate investment

[webfact]

Prayut to private sector: Accelerate investment

By THE NATION

 

Prime Minister Prayut Chan-o-cha (Photo credit: Royal Thai Government's website)

 

Prime Minister Prayut Chan-o-cha urged the private sector on Monday (December 2) to accelerate investment in December in order to lift a softening economy from the fourth quarter this year throughout next year.

 

Prayut made the remark as he presided over the launch of the Thailand Responsible Network.

 

He said that if the sector spends more every quarter, this would boost economic growth and people’s confidence.

 

The government has already sped up state investment in infrastructure projects via a public-private partnership. 

 

Office of the National Economic and Social Development Council secretary-general Thosaporn Sirisumphand said the country’s economic fundamentals remained sound, despite the impacts from trade wars.

 

The economy had expanded on average 4 per cent per year over the past decade, he added.

 

Source: https://www.nationthailand.com/business/30379002

 

-- © Copyright The Nation Thailand 2019-12-03

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[BestB]

I guess big P missed what BOT And brains at Kbank had to say????????????

[Oziex1]

If it could be it would be. What an idiot this guy is. 

[Chang_paarp]

They would invest if there was a prospect of getting some return on their investment.

[mok199]

Apparently he missed the BOT memo.....

[Creasy]

Clueless Clown

[colinneil]

Of course little P wants the private sector improve investment, after his lot have made a GIANT balls up of everything.

He wants others to help cover up his failings.

[klauskunkel]

[yellowboat]

With government investment, did the cronies get their cut?   Do they now want their cut from the private sector and want them to bail them out ?  The junta has been a drag on the economy, reining in the fun and hassling foreign business, unless they are huge. 

[BobbyL]

He said that if the sector spends more every quarter, this would boost economic growth and people’s confidence.

 

I am no economic or business expert at all, but I am pretty sure that is not how simply it all works.  

[Brigand]

Doesn't work like that General. If business views things as a liability, or not worth it, then they simply won't get involved ... not running a barracks now. You can't expect private business to jump in and bail you out when things go south and let the 1% keep on stripping everyone of everything.

[RichardColeman]

3 hours ago, webfact said:

Prayut to private sector: Accelerate investment

Sounds like a 'please dig us out of the hole we dug by digging your own hole' plea to me

[jerojero]

Try spending less on Military hardware that has no return on investment to the Country or economy, and provide financial incentives for foreign firms to invest in Thailand industries!  And PM, take at least one study course in Economics please! You might learn how the macro economy really works. 

[ramrod711]

4 hours ago, webfact said:

He said that if the sector spends more every quarter, this would boost economic growth and people’s confidence.

I think there is a reason it's called the "private sector".

[saengd]

"The economy had expanded on average 4 per cent per year over the past decade, he added".

 

Oh dear, a pretty amateurish attempt to show current increases in a good light that will people will see through in an instance, better to have said nothing.

[ramrod711]

1 hour ago, Chang_paarp said:

They would invest if there was a prospect of getting some return on their investment.

Spot on, it's called capitalism

[neeray]

Typical boss. Boss makes a big mess of something and expects others to clean it up.

 

The problem here is, as has already been said, if the private sector doesn't see a reasonable chance for a ROI, they won't invest. That's the big difference between government spending and private sector investment.

[hotchilli]

5 hours ago, webfact said:

Prime Minister Prayut Chan-o-cha urged the private sector on Monday (December 2) to accelerate investment in December in order to lift a softening economy from the fourth quarter this year throughout next year.

It's all about to go south for the leader from the barracks.

He hasn't got a clue.

[30la]

Explain to me, but above all to those who have to invest how to do, without money and, moreover, in a country where the economy gets worse day by day and the government continues to tell lies about a growing economy!
Clear that you don't ask the big to invest, they are too busy speculating on the Baht that is kept artificially strong by your central bank!

[Srikcir]

Recall in June 2019:

http://www.nationmultimedia.com/detail/breakingnews/30370679

• A new Cabinet is expected to be sworn in next month with the private sector looking forward to a competent team on economic affairs under the new government in order to restore confidence and accelerate budget disbursement to stimulate the economy. [the new economic team is the old economic team]

November 2019:

https://www.nationthailand.com/news/30378425

• According to a survey by Suan Dusit Poll, about 32% suggested in part that the government strengthen investor confidence.

Finally by the end of November 2019:

• Private investment indicators continued to deteriorate from the same period last year, in line with weak domestic and external demand. Investment in machinery and equipment continued to contract from imports of capital goods, domestic machinery sales, and the number of newly-registered motor vehicles. Meanwhile, investment in construction in permitted areas for almost all purposes declined, consistent with subdued activities.

Prayut's management of the economy has failed private investment.

 

[phkauf]

It's become clear that Prayut is learning his job from his Chinese masters. That's how things work in a communist / socialist economy - the government dictates spending and investment by the "private" sector. Which is precisely why communism / socialism has not worked in any country it's ever been tried.

One day he's urging everyone to spend dollars, now he's dictating private investment. He doesn't have a clue what to do. I would not be surprised if he needs help washing his bum after using the toilet.

 

[agood1963]

What a laugh nobody has money to invest , no idea,

[Srikcir]

5 hours ago, webfact said:

The economy had expanded on average 4 per cent per year over the past decade

Thanks in part to Yingluck's economic policies!

If anti-government/pro-military protestors lead by the Democrats/PDRC and Prayut's military coup hadn't shut down Yingluck's government, that average would be much higher today - 7 to 8%? As it was it took Prayut's government almost five years to RESTORE the economy to pre-coup years.

But Prayut is taking a bow.

Unfortunately for the Thai electorate, he's facing the wrong direction.

[JohnB1945]

Allowing 100% depreciation against tax in the first year would probably help investment, especially if "sold" as a time limited offer. This would be more effective than rhetoric, and is directly within the PMs capability. However words are cheaper than reduced tax revenue that could have been spent on submarines!

[mikebell]

5 hours ago, webfact said:

Prayut to private sector: Accelerate investment

Or else.

[BestB]

4 minutes ago, mikebell said:

Or else.

I hear raiding works really well????

[dallen52]

1 hour ago, neeray said:

Typical boss. Boss makes a big mess of something and expects others to clean it up.

 

The problem here is, as has already been said, if the private sector doesn't see a reasonable chance for a ROI, they won't invest. That's the big difference between government spending and private sector investment.

When with the Blue Oval (Ford) we always looked for accelerated depreciation incentives and R&D tax write offs.

It's not Rocket science. 

Double the depreciation rate for the first year, 150% R&D tax claims. 

Gain without pain..

He also asked companies to buy in USD to ease the baht pressures. 

Many overseas companies trade in USD now with say a +/- 5% trigger on movements. 

Unfortunately it all comes at a cost..

Nobody in their right mind is going to buy from Thailand when the currency has strengthened around 35%, meaning they need 35% more to do the same purchases. 

 

Maybe he needs to learn something about Management Economics?

[Jimbo2014]

Hes sounding more like a used car salesman every day.  Come buy this old beat up Chevy - it spews black smoke, rattles and shakes and I can claim it back any day but please buy it ????

[manhood]

Yes, Mr. P. is a smart guy. Asking the private Sector to do something to cover the failure oft the goverments work. Better to say NO work has done as they all have no idea what to do.

And yes you will see, after couple of weeks he will blame the private sector. But this  government is responsible!

[sammieuk1]

3 hours ago, klauskunkel said:

Bring the money back guys I have single handedly screwed up tourism in spectacular fashion but still don't know why ????