Government To Curb Export Slide

[churchill]

The government is aiming to prevent exports from plunging more than 10% this year, with new export stimulus measures including tax rebates on imports for export-oriented production due this month.

"We expect the plans for cutting import taxes on some raw materials to help exporters reduce costs to go before the cabinet for approval some time after Finance Minister Korn Chatikavanij gives them a nod next week,'' said Commerce Minister Porntiva Nakasai.

Mrs Porntiva opened Made in Thailand 2009 on Friday, the 22nd edition of the event featuring 4,699 booths and more than 2,500 companies. The fair at Muang Thong Thani runs to July 12.

continued at http://www.bangkokpost.com/breakingnews/14...rb-export-slide

-- Bangkok Post 03/07/09

[losworld]

Why not try something really innovative like allowing the baht to fall to its natural level against other currencies. That is the single and best solution for exports and tourism.

[tigerbalm]

Why not do both, Cut the import taxes and allow the Baht to fall, an even bigger boots to exports and i would imagine a help to the tourist sector.

[Ned]

Tourism's gutted everywhere on the planet. A cheap baht isn't going to solve that. Bloke's coming for luscious female flesh will arrive anyhow. A cheap baht means expensive oil. Economy's tanking as it is. More expensive oil will do them in pronto. White skinned Thais with most of the country's bread have time to get the high baht out of the country and converted. After that it all can go to hel_l as far as they are concerned. The economy goes down and they'll still be on top of the heap.....so what's the problem.

[Chunkton]

Governments feel obligated to be seen to be doing something. At least Thailand hasn't got the Three Amigos Obama/Bernanke/Geitner bent on completely destroying the economy (except for their banker pals) with debts that can never be repaid. Ned were you talking about Thailand or the US regarding the rich positioning themselves?

Devaluing the baht when there a few buyers for exports and a world wide slump in tourism would seem a waste of time. They are probably more worried about the electoral damage of putting the price of fuel up.

[tigerbalm]

Governments feel obligated to be seen to be doing something. At least Thailand hasn't got the Three Amigos Obama/Bernanke/Geitner bent on completely destroying the economy (except for their banker pals) with debts that can never be repaid. Ned were you talking about Thailand or the US regarding the rich positioning themselves?

Devaluing the baht when there a few buyers for exports and a world wide slump in tourism would seem a waste of time. They are probably more worried about the electoral damage of putting the price of fuel up.

Interesting point you make but don't i cant help thinking the price of Gasoline say 91 has been going up at least twice a month for the past 6 months it is only 7-8 baht off the record high of just over a year ago

[slapout]

tigerbalm; good observation on price of petrol. It is worth noting that oil today is about 67.00/bbl whereas 1 year ago it was 145.00/bbl. tax is not that much different so that leaves mark up on product as being a huge earner for someone. The price should be about one half of what petrol costs were a year ago. Dream on

[jackdanielsesq]

Taxman invented Hollywood Accounting

BR>Jack

It is worth noting that oil today is about 67.00/bbl whereas 1 year ago it was 145.00/bbl.

[grandpops]

Tourism's gutted everywhere on the planet. A cheap baht isn't going to solve that. Bloke's coming for luscious female flesh will arrive anyhow. A cheap baht means expensive oil. Economy's tanking as it is. More expensive oil will do them in pronto. White skinned Thais with most of the country's bread have time to get the high baht out of the country and converted. After that it all can go to hel_l as far as they are concerned. The economy goes down and they'll still be on top of the heap.....so what's the problem.

Doubly so on top of the pile.

When the baht tanks, (which will be when the rich at the top of the pile make back what they lost last year by financing PAD and taking a hit on their businesses) they will bring the money back in and make up another 20 - 30 percent.

Enough to finance another coup should the plebs vote red again!

Theres only the coup backing elite can prop the baht up. Blame the poor for voting for Thaksin or whatever and maybe a bit of damage in April, but its this rich mob that will kill off the country again in the interests of self (elite) preservation.

Edited July 5, 2009 by grandpops

[baht&sold]

Er, from one conspiracy theory^^ to another

Some Expats seem to believe the Thai Govt/Bank of Thailand greatly manipulate the baht rate, thus, should simply 'push a button' and presto, Sterling (etc) goes back to 70 (magically)...

The reality is, tiny Thailand has little control over global exchange rates and if the BoT de-valued the baht say a 'desired' 30%, the increased cost of imported fuel alone would absolutely cripple the country (fuel, the primary ingredient required for all those exports;)

[selftaopath]

Why not try something really innovative like allowing the baht to fall to its natural level against other currencies. That is the single and best solution for exports and tourism.

OH surely, you are not hoping to see logic or reason applied to anything in Thailand are you?

[loong]

I find it slightly amusing that the general assumption is that a free floating baht would fall against the US$.

Why is that?

Which country has a trade surplus and which one a deficit?

[MaiChai]

I think the problem with Thailand is that its has been a 'developing country' for far too long. I mean it just can't pull itself up to the next rung on the ladder. Thus it continues to be a cheap labour place, but where labour is not necessarily cheap. Other countries in the region seem to be able to pull the education level up for the general populous, but in Thailand, despite all the schools and universities, the population still remains low educated. Despite the moderness of Thailand, it fails to act modern in so many ways (government, law, police, corruption, etc). Thailand just does not seem to be able to pull itself out of the old ways of doing things! Other countries in the region become more attractive in this respect (Vietnam/Malaysia come to mind).

Edited July 8, 2009 by MaiChai