"Thailand And Asia's Economic Dynamism"

[Jai Dee]

FULL SPEECH OF PM SURAYUD CHULANONT

"Thailand and Asia's Economic Dynamism"

Prime Minister Surayud Chulanont is a keynote speaker at the "Asia Forum 2007: The Future of Aviation," an international forum celebrating Star Alliance's 10th Anniversary & Asia's Newest Airport on Thursday. The following is his full speech.

Distinguished Guests,

Ladies and Gentlemen,

It is a pleasure for me to be here among the top leaders of the global aviation, travel, tourism and media industries. I am honoured to join all of you in celebrating the 10th Anniversary of the founding of Star Alliance and welcoming Thailand's Suvarnabhumi Airport, the newest airport in the region.

In 1997 our national carrier, Thai Airways International and 4 other leading airlines, namely, Lufthansa, United Airlines, Scandinavian Airlines System, and Air Canada, officially announced the formation of "Star Alliance". The emergence of Star Alliance as an integrated worldwide air transport network represented an ambitious vision that helped shape the entire aviation industry. For not only was it a means to expand the network of air transport, but also for member airlines to strengthen their competitiveness and enhance cooperation to create a win-win strategic partnership. Star Alliance has since expanded from 4 airlines to 19, working in partnership over 6 continents. And I do hope it might be possible for other industries in Thailand and in the region to learn from this fine example, and follow the success of the Star Alliance partnership.

Distinguished Guests,

Ladies and Gentlemen,

The world in which we live, and the environment in which the aviation industry is operating, is much different today than in the past. Globalization has linked world production and connected every economy. It has also increased the demand for business contact, and the desire of people to experience the world and other cultures.

In this globalized world, we should no longer think of the aviation industry only in the traditional sense of being a transportation facility. Doing business nowadays opens up opportunities for synergies across various industries to fulfill the demand of diverse niche markets. Thus, in the modern era of aviation, many airlines and related businesses have enjoyed cross-related opportunities, such as in the tourism, hospitality and logistics sectors.

However, the aviation industry is currently confronted with a number of threats and opportunities that need to be met head on. The first threat is that of high oil prices, which are expected to continue. The second is security. In 2001, every country had to impose new measures for aviation security due to the tragic events which occurred on September 11. This has increased the aviation industry's operating costs and obstructed the free flow of people which we had hoped to see. A third threat is global warming, for air transportation has been identified as a very unfriendly mode of transportation to the world climate, when measured on a pollution-per-travel mile basis. And while we have reacted quite well so far to the first and second threats, the world is only now waking up to the third threat. But there are positive signs that more efforts and cooperation to address this issue will be forthcoming.

On the positive side there are encouraging signs as we look forward to aviation opportunities in this region. Firstly, in the past there was restricted access to the skies of many countries in the region. Today, the skies have been opened due to growing cooperation among countries and regions, and Thailand has been one country that has benefited from an open sky policy. Secondly, new technologies will make planes more fuel efficient. Lighter weight materials will enable wider-body aircraft to carry more people and more fuel efficiently. Thirdly, and most importantly, Asia will continue to be the fastest growing region and the most important production base in the world.

And this is what I would like to take a few moments to discuss with you. For Asia's economic dynamism will help to define the future of aviation and our respective strategies in the years to come. Asia has moved on from the economic crisis of 1997 and is growing at an average rate of about 6.5 per cent. Ours is a dynamic growth, and I believe that it is also a more sustainable one.

This growth is increasingly driven by trade, economic integration and cooperation. Through bilateral agreements and regional frameworks such as ASEAN, BIMSTEC and APEC, Asian countries have promoted trade and facilitated exchanges and tourism between us. Our cooperation has enabled us to weather the global economic slowdown, SARS and avian influenza. And with joint efforts, it will allow us to manage the energy crisis and new challenges also.

The expanding economic power of China and India is a key factor in Asia's dynamism. The two are deepening their integration with the world through the mobilization of their industrial and technological potential. This has already impacted on the aviation industry, and some of the figures are very promising. China's air traffic is growing at 7.6 percent annually and is expected to be the largest commercial aviation market outside the United States over the next 20 years. International trade linked to China is likely to be a key driver in the world's overall air cargo traffic growth. Meanwhile, the past 3 years have seen record growth in air traffic in India. Its civil aviation passenger growth stands at 20 percent—among the highest in the world, and businesses in non-metropolitan regions are creating new demand for air services.

What is clear is that China and India's trade and traffic with the rest of Asia will help shape the future of aviation in the region. As average incomes in Asia increase and more people travel within, and to and from, this region, the intra-Asia air cargo is forecasted to expand by 8.4 percent annually through 2021, exceeding the Asia-North America and Asia-Europe markets which will grow at 7.5 percent and 7 percent, respectively.

Distinguished Guests,

Ladies and Gentlemen,

What place has Thailand in this Asian dynamism and the growth of Asian aviation?

I do believe that Thailand has a lot of opportunities to offer friends in the aviation industry. For a start, we are strongly represented by Thai Airways International, our national carrier and one of the founders of Star Alliance. THAI already has a strong global network and a wide variety of products and services. It has received many awards for technical excellence and quality service from international institutions and continues to upgrade its services and its fleet of aircraft. And THAI will continue to receive the Government's full support in leading Thailand's aviation efforts.

At the same time, low cost carriers were introduced to the Thai market in 2003, providing greater choice and flexibility for consumers. Passenger growth is now up 44 percent and is estimated to grow at an average of 15 percent over the next five years.

Thailand further enjoys a strategic location as an aviation crossroads for regional and international routes. We now operate dual airports where Bangkok Airport is a hub for low cost carriers and point-to-point without connecting international flights, while Suvarnabhumi Airport is a major regional and international gate-way for air transport. These two airports have a combined capacity of around 80 million passengers per year. We also have a wide range of related services opportunities which support the aviation industry and provide opportunities for synergy.

Distinguished Guests,

Ladies and Gentlemen,

I am sure that you are also interested in where Thailand is heading over the coming 6 months, and what implications this may have for all of you. First of all, let me assure you that the Thai economy is continuing to grow on a stable path, supported by our diversified production base. Despite various obstacles which we faced last year, such as high oil prices, increasing inflation and interest rates and political uncertainty, the economy grew by 5 percent in 2006. This year the economy grew by 4.3 percent in the first quarter and is expected to grow by 4.0-4.5 percent for the whole year.

In the months to come, we will continue to stimulate the overall economy and ensure a warm welcome to foreign investors. We will proceed with planned improvements to infrastructure, and we will do in full transparency and fairness. The Government has approved the Logistics Development Master Plan and allocated an initial budget in the fiscal year 2008 of around 2,600 million baht. The investment will be used to upgrade logistics facilities such as constructing new double-track railways and improving river ports. Another major investment is in the mass transit system. Four new routes with a total length of around 100 kilometres and investment of 200 billion baht have been approved. Bids for the construction of the first two lines will be launched in August. Not only will these investments stimulate the economy, they will also further spread our web of communications linkages with neighbouring countries and join up with the dynamic growth of China and India.

Meanwhile, the Government is continuing to expand trade and investment opportunities between Thailand and other countries through bilateral and multilateral frameworks. We recently concluded the Japan-Thailand Economic Partnership Agreement or JTEPA, which will increase the flows of goods, investment and services and facilitate movement of people. I have also just discussed with my Indian counterpart how to expedite an agreement with India. Such arrangements will increase business relationships between the private sectors as well as cordial relationships at the people-to-people level.

We will continue to actively promote travel and tourism, with the number of foreign tourists increasing to 13.8 million people in 2006. This year we are projecting 14.8 million international visitors. Medical tourism is increasing, with many well-known hospitals catering to foreign patients. New tourist packages and sites are being developed based on our rich culture and natural resources, while celebrations are being organized year round on the auspicious occasion of His Majesty the King's 80th Birthday Anniversary this year. We are also offering joint promotion and joint destinations with the cooperation of Asian partners, including for the 2008 Beijing Olympics.

All this, we fully recognize, will have to be accompanied by the return to political stability. We have therefore been proceeding along the timeline for political transition set by the Interim Constitution. A first draft of the new constitution has been circulated for comments and correction. We expect a second draft to be ready by July, so that the national referendum could be held by September. We are now working hard to advance the date for general elections so that we can envisage a return to full democratic government at the year's end.

Distinguished Guests,

Ladies and Gentlemen,

I am convinced that by the end of this year, a resurgent Thailand will once again be a major factor in Asia's onward dynamism. Our "future" and our "progress" will be derived from a political, economic and social base that is stronger, more equal and more sustainable. And all this we will realize with the goodwill and cooperation of all our partners around the world, in the business as in the government sector. So, let me end my speech with the vision of the Thai Airways International which is "Let's Fly Together".

I wish the forum great success. I am sure that you will all benefit from the many interesting discussions and find new opportunities for cooperation which will further advance the aviation industry in this region. Please enjoy your stay in Thailand and our hospitality.

It is now my great pleasure to declare the Asia Forum 2007 officially open. Thank you for your kind attention.

Source: The Nation - 28 June 2007

[Mid]

All this, we fully recognize, will have to be accompanied by the return to political stability. We have therefore been proceeding along the timeline for political transition set by the Interim Constitution. A first draft of the new constitution has been circulated for comments and correction. We expect a second draft to be ready by July, so that the national referendum could be held by September. We are now working hard to advance the date for general elections so that we can envisage a return to full democratic government at the year's end.

full democratic government does not have appointed senators ...................

[jumnien]

Sickening to hear the General who was appointed by the junta talking about the military new constitution and the future of democracy in Thailand.

[LaoPo]

All this, we fully recognize, will have to be accompanied by the return to political stability. We have therefore been proceeding along the timeline for political transition set by the Interim Constitution. A first draft of the new constitution has been circulated for comments and correction. We expect a second draft to be ready by July, so that the national referendum could be held by September.

We are now working hard to advance the date for general elections so that we can envisage a return to full democratic government at the year's end.

"...a full democratic government.."

...according to 'our' standards (the CSN-standards) and the 'final' constitution 'we' will force upon through the throats of the people...

LaoPo

[rychrde]

So, let me end my speech with the vision of the Thai Airways International which is "Let's Fly Together".

does that mean one of us has to pilot the bloody plane?