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WB study sought on wealth fund

By Wichit Chaitrong

The Nation

Official submits report on tax reform to Thirachai

Finance Minister Thirachai Phuvanatnaranubala has asked for help from the World Bank to study the establishment of a sovereign wealth fund and has also asked the Asian Development Bank to support an infrastructure fund, which would promote investment in Thailand.

Thirachai raised the issue of creation of a sovereign wealth fund with Annette Dixon, the World Bank's country director for Thailand and for the East Asia and Pacific regions, during a meeting yesterday at Finance Ministry, said ministry spokesman Naris Chaiyasoot.

Thirachai earlier had asked the Bank of Thailand to study the creation of the fund, which would be financed by international reserves.

The Pheu Thai Party during the election campaign expressed its intention to set up the sovereign wealth fund, claiming that the country's US$180 billion (Bt5.4 billion) international reserve was excessive. Part of the fund should be allocated for higher investment return, such as in oil exploration and infrastructure projects in the Asean region, the party said.

Dixon yesterday also reported to Thirachai about a tax-reform study that is technical assistance the bank offering to the country. The study aims to find a better tax system that would attract more foreign direct investment.

Thirachai also asked the World Bank's financial arm - the International Finance Corp - to help Thailand further develop its microfinance system, in particular the operation of the Thailand Post bank, Naris quoted him as saying.

Thirachai assured World Bank executives they were fighting corruption by making rules and regulations transparent, according to Naris.

Thirachai also met with Kunio Senga, director-general of the Southeast Asia Department of the Asian Development Bank (ADB), and Craig Steffensen, country director of the bank. He asked them to participate in the proposed infrastructure fund.

ADB executives reported on the state of Asian bond-market development.

-- The Nation 2011-09-03