This Should Get The Campaign Donations Rolling In:

[lannarebirth]

FBA changes also would be abandoned

YUTHANA PRAIWAN & PARISTA YUTHAMANOP

Reserve measure 'ineffective', says Abhisit

The Democrat Party will scrap the Bank of Thailand's 30% reserve requirement on capital inflows and shelve efforts to amend the Foreign Business Act if it forms the next government, according to party leader Abhisit Vejjajiva. Mr Abhisit reassured local and foreign investors at the Thailand Focus 2007 conference that his party was intent on rebuilding market confidence if elected.

Surapong Suebwonglee, the secretary-general of the People Power Party, offered similar statements, adding that key reforms were still needed to help restore political and economic stability.

But Mr Abhisit and the Democrats offered an economic policy platform that was considerably more detailed than that of the PPP, one of two main groups that have emerged from the remnants of the Thai Rak Thai Party.

Mr Abhisit said his ''People's Agenda'' rested on three pillars _ restoring investor confidence, new investments to improve national competitiveness, and investments in people.

The 30% reserve rule on foreign inflows, imposed by the Bank of Thailand last December to help curb appreciation of the baht, had sent the wrong signal to the market, he said.

''I will review the reserve requirement measure, once I am in charge. The measure has proved ineffective,'' Mr Abhisit said, adding that ultimate responsibility for the central bank rested with the government. ''Government intervention in the central bank should not be to distort financial supervision to favour those associated to politicians or force the bank to print money. If the central bank implements any policy that will affect the overall economy, the government will have to take responsibility.''

The Democrats would similarly reverse the widely criticised policy of the military-installed government regarding the Foreign Business Act.

The National Legislative Assembly last month approved a new FBA draft that would significantly tighten the definition of foreign companies to include voting rights and management control.

Mr Abhisit said a Democrat-led government would shelve efforts to amend the FBA, and would focus on improving enforcement of existing rules against nominee shareholdings.

''If the current draft does not go through, we will not push it further. ... We will maintain the existing definition [of foreign companies],'' he said.

''But if nominees for foreign investors are set up, that is illegal.''

To improve competitiveness and productivity, the Democrats would push for new programmes to increase farm yields, reduce logistics costs and support the service sector.

Mr Abhisit said the party supported new infrastructure investments of 550 billion baht over the next five years, including 200 billion for rail systems, 100 billion for irrigation and water management and 250 billion for new mass-transit systems.

State enterprises also needed to be reformed and made competitive, he said, but ruled out wholesale privatisation.

''We will not privatise state enterprises that represent national assets, but we will step up competition and promote good governance such as personnel management and accounting systems,'' he said.

Education and health care would be strengthened and improved, with the government's universal health care programme extended and new pension systems established for the elderly.

''Education has long been our policy priority. We want to improve the quality of secondary and university degrees and reduce the mismatch between labour skills and market demand,'' Mr Abhisit said.

Dr Surapong offered fewer details of PPP policies, but agreed that the December elections would be critical to restoring political and economic stability.

He said the PPP had already recruited candidates for its economic team, and would name them next month.

He added that Thai Rak Thai's ''dual-track'' philosophy, emphasising boosting domestic demand along with the export sector, had proved successful over the past five years and would be maintained, albeit with unspecified adjustments.

''We will work to help the country return to normal, with sustainable economic growth and a restoration of global confidence in the country,'' he said. ''If PPP is elected to the new government, I promise that there will be no efforts to take political revenge.''

http://bangkokpost.com/Business/14Sep2007_biz00.php

[lazeeboy]

FBA changes also would be abandoned

YUTHANA PRAIWAN & PARISTA YUTHAMANOP

Reserve measure 'ineffective', says Abhisit

The Democrat Party will scrap the Bank of Thailand's 30% reserve requirement on capital inflows and shelve efforts to amend the Foreign Business Act if it forms the next government, according to party leader Abhisit Vejjajiva. Mr Abhisit reassured local and foreign investors at the Thailand Focus 2007 conference that his party was intent on rebuilding market confidence if elected.

Surapong Suebwonglee, the secretary-general of the People Power Party, offered similar statements, adding that key reforms were still needed to help restore political and economic stability.

But Mr Abhisit and the Democrats offered an economic policy platform that was considerably more detailed than that of the PPP, one of two main groups that have emerged from the remnants of the Thai Rak Thai Party.

Mr Abhisit said his ''People's Agenda'' rested on three pillars _ restoring investor confidence, new investments to improve national competitiveness, and investments in people.

The 30% reserve rule on foreign inflows, imposed by the Bank of Thailand last December to help curb appreciation of the baht, had sent the wrong signal to the market, he said.

''I will review the reserve requirement measure, once I am in charge. The measure has proved ineffective,'' Mr Abhisit said, adding that ultimate responsibility for the central bank rested with the government. ''Government intervention in the central bank should not be to distort financial supervision to favour those associated to politicians or force the bank to print money. If the central bank implements any policy that will affect the overall economy, the government will have to take responsibility.''

The Democrats would similarly reverse the widely criticised policy of the military-installed government regarding the Foreign Business Act.

The National Legislative Assembly last month approved a new FBA draft that would significantly tighten the definition of foreign companies to include voting rights and management control.

Mr Abhisit said a Democrat-led government would shelve efforts to amend the FBA, and would focus on improving enforcement of existing rules against nominee shareholdings.

''If the current draft does not go through, we will not push it further. ... We will maintain the existing definition [of foreign companies],'' he said.

''But if nominees for foreign investors are set up, that is illegal.''

To improve competitiveness and productivity, the Democrats would push for new programmes to increase farm yields, reduce logistics costs and support the service sector.

Mr Abhisit said the party supported new infrastructure investments of 550 billion baht over the next five years, including 200 billion for rail systems, 100 billion for irrigation and water management and 250 billion for new mass-transit systems.

State enterprises also needed to be reformed and made competitive, he said, but ruled out wholesale privatisation.

''We will not privatise state enterprises that represent national assets, but we will step up competition and promote good governance such as personnel management and accounting systems,'' he said.

Education and health care would be strengthened and improved, with the government's universal health care programme extended and new pension systems established for the elderly.

''Education has long been our policy priority. We want to improve the quality of secondary and university degrees and reduce the mismatch between labour skills and market demand,'' Mr Abhisit said.

Dr Surapong offered fewer details of PPP policies, but agreed that the December elections would be critical to restoring political and economic stability.

He said the PPP had already recruited candidates for its economic team, and would name them next month.

He added that Thai Rak Thai's ''dual-track'' philosophy, emphasising boosting domestic demand along with the export sector, had proved successful over the past five years and would be maintained, albeit with unspecified adjustments.

''We will work to help the country return to normal, with sustainable economic growth and a restoration of global confidence in the country,'' he said. ''If PPP is elected to the new government, I promise that there will be no efforts to take political revenge.''

http://bangkokpost.com/Business/14Sep2007_biz00.php

heard it all before ,next there will be a bag of rice on the doorstep........

[Carmine6]

Nice, but an odd situation. As oppossed to a situation where another party was responsible for these measures, it was the junta. So everyone can come out with the same opposition to these measures.

[midas]

heard it all before ,next there will be a bag of rice on the doorstep........

hey lazeeboy why so cynical

I think these people would introduce some farang friendly policies - slowly mind you to keep the

older politicians on side ? As an Oxford graduate I am sure Khun Abhisit would not have

such an inward looking view as what we saw in the past ?

[Prakanong]

Hardly ground breaking news is it?

So what is new?

Just going back to what is was before with no liberalisation or de-regulation - maintain the staus quo and do not rock the boat.

Why would any foreign invrstor be doing summersaults over this?

Stuck in the same groove

[samtam]

Abhisit is the only hope for Thailand, but is considered too young, (he's 41, I think), (and too clean and too intelligent).

[Mid]

MP's can promise the moon ,

unless the 1/2 appointed Senate approves ,

promises are all they will ever be ....................

[steveromagnino]

MP's can promise the moon ,

unless the 1/2 appointed Senate approves ,

promises are all they will ever be ....................

bearing in mind that many of the free market initiatives were undertaken under the Democrats in the late 90s, I think that they will probably aim to do the same thing again. Ditto for universal healthcare, education reform, civil service reform, privatisation, etc.

And communicate it in possibly an similarly inept way :-)

[Mid]

it's window dressing , mate

the power lies with the three ?? , Judges who approve the appointed Senators .......................

[A_Traveller]

Re donations, why? Under section 53 of the Political Parties Act, it would appear that donations from persons, entities or juristic persons considered to be foreign are not permitted. In terms of companies the shareholding limit is 25% foreign held.

Have to say the positive points are to be noted, but if the Senate becomes a mirror of the present assembly I suspect that benefits accruing to commercial enterprises which are not deemed to be Thai {and more especially if they are viewed as targeting the Thai market} would be problematic.

Regards

/edit typo//

Edited September 14, 2007 by A_Traveller