Minister admits Covid-19 outbreak exposed cracks and faults in Thai economy

[webfact]

Minister admits Covid-19 outbreak exposed cracks and faults in Thai economy

By THE NATION

 

 

The Covid-19 outbreak that hit Thailand since April has exposed the fragility of the economy and shed light on the fact that we rely too much on export and tourism, Deputy PM Supattanapong Punmeechaow said.

 

The deputy PM, who also holds the Energy portfolio, was speaking at the “Restart Thailand 2021” dinner talk held on Thursday by Thansettakij and Krungthep Turakij newspapers at Siam Paragon shopping complex in Bangkok.

 

“The outbreak has had an especially heavy impact on small and medium businesses, prompting the government to spend over Bt800 billion on SME aid measures including postponing debt repayment worth over Bt6.8 trillion for 12 million SMEs,” he said. “However, from July onwards, economic indicators have been pointing toward an improving, trend thanks to cooperation from all parties in outbreak prevention, despite some minor impact from political situations.

 

 

“The tourism industry has shown improvement, with about 30 per cent occupation, jumping from just 6 per cent in April, thanks to the government’s economic stimulus campaigns such as the ‘Let’s Go Halves’ shopping subsidy,” he added.

 

“Through the Thai Credit Guarantee Corporation, the government is also planning to provide an additional Bt150 billion in loans to help small and medium businesses.

 

“The battle against Covid-19 is not over yet. The government still has many projects in the coming year to boost the economy, attract foreign investors and build infrastructure for future expansion,” the minister added.

 

“These projects include the construction of 14 Skytrain lines in Bangkok covering 500 kilometres in the next four to five years, larger than London’s Underground, and the infrastructure projects in the Eastern Economic Corridor to support digital technology, 5G and robotics industry.

 

 

“It is unacceptable to let Thailand slide back to the period before Covid-19. Since the global economy is changing we must be more proactive in attracting foreign investors, and the agencies responsible for this are the Board of Investment Office [BoI] and Eastern Economic Corridor Office,” Supattanapong said.

 

“The next step will be to put Thailand on the list of top 10 countries with ease of doing business, which is a goal proposed by five countries who are our major trade partners.”

 

2021 will be the year of investment

 

The deputy PM further explained that next year the government will focus on investing in new industries that will help reduce reliance on export and tourism. “Bangkok will be the centre of regional offices of multinational companies, while Thailand’s automotive industry will focus on the manufacturing of electric vehicles [EVs],” he said. “EVs will create other related industries such as smart equipment manufacturing and electricity generating from renewable energy. This will create a great opportunity for Thailand to further invest in community power plants, as well as biomass and solar power plants in Laos.

 

 

Thai economy to regain its strength in 2022

 

The minister predicted that in 2022, the economy will become as strong as, or even stronger than before Covid-19 hit the country. “The economy next year will still require aid from the government despite the availability of Covid-19 vaccine. It should take at least six months for the situation to stabilise, and we should see an upward trend in the economy starting from the second half of the year onwards,” he said.

 

“Next year the government will also focus on creating economic opportunities at the grassroots level to reduce disparity,” he added. “We cannot give people free handouts, we also need to create new jobs and new businesses that will support existing and future industries.”

 

Prevent 2nd wave of outbreak at all cost

 

Supattanapong said the government will not allow the outbreak situation to escalate and lead to a country-wide lockdown for the second time. “The first lockdown had a heavy impact on the economy and required a long time for us to recover,” he said. “We will not let that happen again.

 

“The government has earmarked Bt3 billion to buy the first batch of Covid-19 vaccines, which will be provided to those in risky groups first,” he added. “Then we will use domestic facilities to produce vaccines for the rest of the population. When the outbreak situation returns to normal, we can expect a full recovery of the economy.”

 

Source: https://www.nationthailand.com/news/30399811

 

-- © Copyright The Nation Thailand 2020-12-18

 

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[sammieuk1]

These projects include the construction of 14 Skytrain lines in Bangkok covering 500 kilometres in the next four to five years, larger than London’s Underground, and the infrastructure projects in the Eastern Economic Corridor to support digital technology, 5G and robotics industry.

 

Umm! try something easier first like a lunar landing ????

[ourmanflint]

What is this guy on? The Thai economy relies too much on export and Tourism? Exporting is one of the major ways any country increases its wealth, it is one of the most important economic factors there is. And as for Tourism, without it Thailand would be as poor as Cambodia or Laos are now. Trillions of dollars from tourism have flowed into the country in a one way free for all

[Misterwhisper]

1 hour ago, webfact said:

we rely too much on export and tourism

We also rely too much on bright beacons of wisdom such as Mr. Supattanapong, I'm afraid.

[MasterBaker]

that logo he proudly presents is also a shot down button

[Bundooman]

The huge logo projected on his right in the 1st and last picture reminds me of a digital middle finger!

[Benmart]

I suspect that after all the talks, seminars, meetings, committees and photo ops, not much will change. The dinosaurs will once again welcome the hordes of "tourists" from the north, enriching themselves and protecting their cash flow by stymieing any progressive change. Corruption, greed and oppression runs this train.

 

[orang37]

The "exposure" must explain the seven-year high of the baht against the US $. ????

[herfiehandbag]

It does seem that the manufacturers of big vinyl backdrops are doing well. 

 

It also appears that trade is steady for florists specialising in white and yellow buttonholes and bouquets.

 

One hears that the original title of this "dinner talk" was to have been "Restart the Gravy Train', but it was decided that whilst accurate, a more subtle title would be appropriate.

 

A more appropriate headline would be " Minister admits that the reaction to the Covid 19 outbreak has destroyed a very large amount of the Thai economy, the part on which a disproportionate amount of the population relied. They will have to go back to their farms.!"

 

Still it is good to know that everything will be better than before in 2022!

Edited December 19, 2020 by herfiehandbag

[robertson468]

The way this Guy talks, you would think you wave a magiv wand and change the whole modus operandi of how the Country conducts business.  Deluded at best uneducated at worst.  Where do these people appear from???

[SomchaiCNX]

2 minutes ago, orang37 said:

The "exposure" must explain the seven-year high of the baht against the US $. ????

That's just because the $ US is really <deleted>. Please don't blame the Thai for all the <deleted> going on in the US and Europe. Not one single day goes by without an official comes up with an brilliant idea or suggestion. ???? 

[vandeventer]

They really need a think tank, to get things rolling again but please don't include them.

[farangroby]

"the manufacturing of electric vehicles"???
The electric vehicles will use the rechargeable batteries sold on lazada? I ask for friend!

[djayz]

You don't say!?

[dlclark97]

Comparing the Skytrain projects to the London  underground tube system is like comparing apples and oranges.  The London tube system is not an eyesore and does not disrupt traffic flow.  It's a great people mover.

[Chongalulu]

For the grandiose "plans" (let’s just call them wishful thinking) to move away from low skilled tourism jobs and agricultural exports into more sophisticated areas requires a more educated and high skilled workforce. A glance at Thailand’s lowly and worsening position in the PISA educational tables is not conducive to that,however much it suits the elite to preserve that for their own ends. They’d better just hope their tourist industry hasn’t been dealt a fatal  blow and can resemble some form of recovery because the other problem I highlighted will take a generation to fix even if they seriously embraced it now.

[SiSePuede419]

Let's Go Halves could be their new business recruiting slogan. ✌️

[shackleton]

Well at least he is now admitting how much Thailand is dependent on Tourism

So the sooner they sort out the Quarantine procedures ect

And look for better ways of getting the tourists back  then things will improve 

Economy wise

[Elkski]

Isn't the BTS a private company investment?  And profits? They think they can make 40 million EV's?  I think cash from tourists is easier.  We can't just give out money?  The 5000 baht that very few got?  

[spidermike007]

Duh. What sacrifices is Thailand willing to make, to create the so called hub he is referring to? Ten year visas for free? Allowing foreigners to buy property here? Reducing punitive luxury and wine taxes? Reducing import duties on stuff we want to have shipped here? Ditching the submarine project, to support the people?

 

It is amazing how these guys go on and on and on about what they are intending to do, and never, ever talk about the sacrifices they are willing to make, to attract these new businesses and investors. A true COTU (Thailand is the center of the known universe) mentality, and it is so far from reality, it boggles the mind. Millions of jobs have been lost. What is being proposed to help those families get back on their feet?

 

The one principal here, that they have still not come to grips with, is that Thailand needs the world, 100x more than the world needs Thailand. 

[Expat Tom]

Thais are  reluctant to admit that the springboard for their rapid economic growth was he huge influx of money from the USA during the Vietnam war. One of the things that distinguish Thailand from its neighbors is the fact that the US military leased many large bases from Thailand, build the port of Sattahip, the airports in Utapao, Udon, Ubon, the Korat, employed many thousands of Thais, build roads, and was the main R&R center for soldiers, sailors and airmen from Vietnam. Almost 50,000 US troops constantly flooded Washington Square in Bangkok for "fun" spending untold millions of dollars. This fact does not discount the enterprising nature of the Thai people who used this largess to build business large and small. Ask yourself, "What would Thailand be like today if all of that money was not pumped into the economy? What would Laos, Myanmar, Cambodia and Malaysia look like today if they had been the benefactor of that economic stimulus and not Thailand"?

 

The problem that Thailand  succumbed to the "easy money" of tourism rather then focus more on export, industrial growth, agricultural growth, and domestic growth. The fat cats got rich and the common Thais changed bed sheets and worked in bars.

 

Yes, tourism should be a big part of the country's economy but while Vietnam grows its economy by attracting the hundreds of business that are fleeing China, Thailand wants to focus on how to get the 10,000,000 frugal obnoxious Chinese back. The leaders of Thailand seem to have forgotten where the Asian Flu, Hong Kong flu, SARS, swine flu, avian (bird) flu and the CCP Wuhan Coronavirus (aka Covid 19) came from.          

[miamiman123]

Get out those tools in the BOT tool box to tame that baht.....or landing a lunar probe on the moon?

your choice. 
I think the lunar probe might prove easier hehege 

[John CS]

Amazing but not a suprising response from another out of touch Govt , blame the virus for what was a destructive Govt decision in locking down & destroying peoples livelihoods.

At least they have some sense in NOT calling it Thailand Great Reset 2021.

Interesting year 2020, but its just the start , expect more control & lockdowns globally ,once exercised power Govts rarely give it up.

[hotchilli]

21 hours ago, webfact said:

Minister admits Covid-19 outbreak exposed cracks and faults in Thai economy

Can say that again... plus the high Baht.

[stigar]

When they gana test people for covid?why so many die without a clear reason?Every new cases come from another countries.True or not?

[Old Croc]

48 minutes ago, Expat Tom said:

Thais are  reluctant to admit that the springboard for their rapid economic growth was he huge influx of money from the USA during the Vietnam war. One of the things that distinguish Thailand from its neighbors is the fact that the US military leased many large bases from Thailand, build the port of Sattahip, the airports in Utapao, Udon, Ubon, the Korat, employed many thousands of Thais, build roads, and was the main R&R center for soldiers, sailors and airmen from Vietnam. Almost 50,000 US troops constantly flooded Washington Square in Bangkok for "fun" spending untold millions of dollars. This fact does not discount the enterprising nature of the Thai people who used this largess to build business large and small. Ask yourself, "What would Thailand be like today if all of that money was not pumped into the economy? What would Laos, Myanmar, Cambodia and Malaysia look like today if they had been the benefactor of that economic stimulus and not Thailand"?

 

The problem that Thailand  succumbed to the "easy money" of tourism rather then focus more on export, industrial growth, agricultural growth, and domestic growth. The fat cats got rich and the common Thais changed bed sheets and worked in bars.

 

Yes, tourism should be a big part of the country's economy but while Vietnam grows its economy by attracting the hundreds of business that are fleeing China, Thailand wants to focus on how to get the 10,000,000 frugal obnoxious Chinese back. The leaders of Thailand seem to have forgotten where the Asian Flu, Hong Kong flu, SARS, swine flu, avian (bird) flu and the CCP Wuhan Coronavirus (aka Covid 19) came from.          

The Vietnam war was about 50 years ago, the economic stimulus kickstarted by the US presence in SEA at that time means little today.

Hysterical and inaccurate US style rhetoric about China is not going to assist Thailand to move forward. They have historic (and some genetic) links to their biggest near neighbor and will continue to trade with them and encourage their tourists to visit.

(Incidentally Swine flu originated in North America) 

 

The Thai economy has become too reliant on tourism and the export of commodities, but by admitting this does not mean they plan to pare it down. It means they need to focus more on building other more sustainable aspects of a modern economy.  This will require  planned action involving the whole country, not just empty words in a speech for the media or massive building projects centered on the Capital.

As another poster pointed out, good education of youth is the key to future growth. It's unlikely the current regime will understand nor want to change the current system that discourages independent thinking.

[Magenta408]

I'm quite puzzled by this statement. For a start tourism income had fallen dramatically well before Coroni. The price of rubber had dropped considerably well before Coroni. The price of rice including the stockpile did not bring in the usual revenue. True, eleven million tons of sugar will add to the GDP but let's face it, things were not looking rosy. Imposing lockdown on the entire population increased a sentence on most Thais from a decade of misery to life imprisonment. I welcome debate. 

[Bangkok Barry]

Good to see so many women at the top of government.

[Shiver]

• If they want more Tourists and Exports, then they could print more Baht and join the others in a race to the bottom.
• If they used one of the (at least) 16 pre-existing treatments for other issues and repurpose them, they could hand them out on arrival and ditch the quarantine.
• Visas are ridiculous.  Simplify and reduce cost. "We want your money, but we want to make it difficult, expensive, a Pain in the A, and maybe we won't let you renew more than 6 months of the year (just to be sure you can't spend here).  When the quarantive is over you can send some of your people to Cambodia to learn how to copy how they approach visas.
• And <deleted> let people buy land!  Limit the Rai per person if you are concerned about a takeover.

5G scares me. Reminds me of involuntarily sticking your head in a microwave and there's nowhere to run to get away from it. Why not use more fibre cable and stick with 4G which has a longer range?

[jvs]

23 hours ago, webfact said:

robotics industry.

When the factories are going to start up again they will be using a lot more robotics,great for the

manufacturers not great for the people who lost their jobs.

Robots work faster and better and will create and even bigger job loss.What are those people going to do?