Interview With Thai Finance Minister Kittiratt: 'White Lies Sometimes Needed'

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INTERIVEW

'White lies sometimes needed'

Nakarin Srilert

The Nation

Although the global economic slump will hurt Thailand, GDP growth of 5-6% can still be achieved: Kittiratt

BANGKOK: -- Finance Minister Kittiratt Na-Ranong admitted yesterday that sometimes he had to exaggerate about the country's economic growth, even though the government has been fully aware since early this year that the global economic slowdown would likely swamp Thailand.

"But [the government] must aim high in order to create confidence," Kittiratt, who is also a deputy prime minister, said.

"The finance minister needs to lie sometimes to create good feelings. The world knows this as a 'white lie'. The goal is to create confidence, which in turn benefits the country's economy as a whole," he said.

He added that he was not surprised when the National Economic and Social Development Board (NESDB), the state planning agency, revised its forecast for export growth down to a mere 7.3 per cent this year due to the slumping global economy.

The NESDB downgraded export growth but maintained gross domestic product (GDP) growth at 5.5 to 6 per cent, which is close to the government's projection, he said.

In the past, export expansion at only 7.3 per cent would not be enough for GDP growth to reach 5 per cent, he said.

The latest development of lower exports, but higher GDP, suggests that the economy has become more balanced to some extent, he said.

He was upbeat about the second half of the year, saying the economy will expand as planned by the government.

He added that the government would try very hard to boost exports and accelerate public spending.

In order to boost the domestic economy, government agencies have been asked by the Comptroller-General's Department to accelerate disbursement of the Bt2.4-trillion budget for fiscal 2013, as the government wants to depend less on exports.

"State agencies are asked to proceed with procurement procedure right now for projects that will start between October and December, so budget disbursement could be done quickly when the Budget Bill takes effect," he said at a seminar hosted by the Thansettakij newspaper.

The early procurement process will resolve the 28-per-cent delay in capital spending in the current fiscal year, he said. Also, accelerating public investment would be a boon to the economy, he said.

"Efficient public spending, coupled with consumer and tourist spending will help Thailand have more balanced growth in the future, then exports will not grow more than 10 per cent as in the past," Kittiratt said.

He viewed these factors as an advantage for the Thai economy as it will be able to limit its dependency on exports for economic growth.

Kittiratt went on to say that the Thai economy, after the 1997 Asian financial crisis, had experienced a deficit of trade in goods and services and had to depend on exports for about 15 years.

Hence, the current government sees an urgent need for the country to depend less on exports and rely more on domestic demand. However, he admitted that the Kingdom still faced the problem of budget disbursement and that domestic consumption was not strong enough.

In addition, corruption in both public and private sectors is endemic, he said.

These problems have in the past forced Thai firms to seek investment overseas if they want to expand their businesses, he said.

However, in the first half of this year, domestic private investment expanded more than 10 per cent, which is a good sign, he said.

-- The Nation 2012-08-24

[daoyai]

......yes, nothing ispires confidence in me like being lied to..... oh my.

[Thai at Heart]

You really couldn't make this stuff up.

it is one thing to be a patronizing liar, it is another to admit the fact.

[noahvail]

The lies have been obvious for some time. So, will the Thai rank-and-file realize what has just been said - and what has been done - to them?

[Ricardo]

even though the government has been fully aware since early this year that the global economic slowdown would likely swamp Thailand

It started over five years ago, the PPP-led coalition-governments totally missed it, the Dems were grappling with it two years ago, but we only just noticed it ourselves, after we'd been in-power for several months.

Nothing to worry about, we wouldn't tell you if there were, steady as she goes, there's a poo-yai in charge, stay calm and carry on, 'don't panic Mr Mannering Sir !', you can trust us !

efficient public spending

in addition corruption in both public and private sectors is endemic

Both said within a few lines in the same interview !

Edited August 23, 2012 by Ricardo

[Thai at Heart]

No politician could be this stupid could they?

he knows there will be a good chance he will have to resign over this. Political fallguy?

[noitom]

"the whole world knows about these 'white lies' but they've been inspiring confidence. preposterous

[GentlemanJim]

I have heard it all now! I hope none of the major corporations who were considering investing in Thailand read this article! Any confidence that this moron has tried to instill in the market and the traders who make it move has now just been blown straight out of the water. Thai politicians all seem to share a common fault, non of them have been media trained yet they all seem to love listening to their own voice and giving ill considered interviews. This should be another one destined for the axe at the cabinet reshuffle. Morons, morons, morons!

On the bright side it could be a good time to short the SET today!!

Edited August 23, 2012 by GentlemanJim

[Thai at Heart]

I have heard it all now! I hope none of the major corporations who were considering investing in Thailand read this article! Any confidence that this moron has tried to instill in the market and the traders who make it move has now just been blown straight out of the water. Thai politicians all seem to share a common fault, non of them have been media trained yet they all seem to love listening to their own voice and giving ill considered interviews. This should be another one destined for the axe at the cabinet reshuffle. Morons, morons, morons!

On the bright side it could be a good time to short the SET today!!

Their fault is they really think they can fool all of the people all of the time.

[KireB]

At least he's straight forward and not lying about lying now and then!

[jerrysteve]

Dear: Kittiratt: About promises and white lies.

You check is in the mail.

Don't call us. We will call you

And we promise we will not ejaculate all over your face with that poop eating grin on your face.

ok mai

[jonclark]

What the poor man forgets is that in his position, once you lie and the admit to lying from that point on in time no one will really believe what you say, because he's a self confessed liar.

How will that inspire confidence?

How many other 'white lies' has he told that he hasn't admitted to?? Sorry, but the question has to asked.

Well at least he's made Yinglucks job slightly easier in the cabinet reshuffle. Your P45 is in the post khun kittiratt

Edited August 24, 2012 by jonclark

[Mosha]

Amazing Thailand

[MikeOboe57]

He added that the government would try very hard to boost exports [...]

Which they very successfully did with the rice export..

Hence, the current government sees an urgent need for the country to depend less on exports [...]

What is it now, boost or curb exports?

However, in the first half of this year, domestic private investment expanded more than 10 per cent, which is a good sign, he said.

Another "white lie"?

[Moruya]

It's been obvious for a long time that the figures didn't make sense.

Growth, imports, exports etc.

TAT statistics too!

[madmitch]

So, domestic private investment grew by 10% in the first half of this year.

How can you believe this after his initial comment?

Amazing. Maybe he should move to an inactive post.

[OzMick]

Their fault is they really think they can fool all of the people all of the time.

To make it easier to calculate their success, they ask the ones they can fool all the time to wear red.

[AleG]

So, domestic private investment grew by 10% in the first half of this year.

How can you believe this after his initial comment?

Amazing. Maybe he should move to an inactive post.

Assuming the figure to be true, it probably comes from the reconstruction costs incurred after the flood. That is to say a step forward after a few steps back.

[bigbamboo]

You know that on ThaiVisa we sometimes like to have a bit of fun making comments about the idiocies and foibles of politicians, personalities and fellow posters to show them up for how ridiculous they can be.

But in Kittiratt's case why bother? He does it so much better himself.

Edited August 24, 2012 by bigbamboo

[maidu]

Maybe he lies, but Thaksin is above the fray, and doesn't lie. He said, several times he would quit politics. and he said, during the BKK riots of 2009, that Red shirt members were being killed by police.

And Chalerm doesn't lie, like when he said he only needs to drink whiskey because he has an inner-ear ailment, and that's the only medicine that works, and he needs it all his working hours.

[somtumlion]

That silence you hear, with the crickets chirping in the background, are the TV Red shirts - wondering to themselves how they can continue to defend this movement and this government, when it's own obvious and oblivious stupidity keeps being trotted forth on a daily basis.

These idiots make me long for the Democrats - and they were pretty crappy...

[Kna]

Please, listen to this while reading this topic

[Thai at Heart]

Their fault is they really think they can fool all of the people all of the time.

To make it easier to calculate their success, they ask the ones they can fool all the time to wear red.

Well, as Finance minster, his public statements have a far larger importance than keeping the reds happy. Statements like his are so typically Thai, and misunderstand the way of the financial world, that he has basically proven himself to be completely unsuited for the job.

Why is Europe in a mess? Because people made white lies for far too long a period of time. Greek debt

Why is the US in a mess? Because people made white lies for far too long a period of time. Subprime mortgages

Disappoint the markets for too long, and eventually it smacks you straight between the eyes. The longer the lie is perpetuated, the bigger the whack, because the shock for the market to readjust is greater than it needs to be.

His public statements effect the value of the baht, they effect domestic and international demand for Thai products, they effect Thailand's interest rate perception, risk perception, investment environment and the list goes on and on.

In fact, I wonder if it is a criminal offence to lie to Parliament?

[rubl]

Does this mean that a GDP increase of 5.5 - 6% is already out of the question? Not that that would surprise me as import/export figures up till June were way down.

In May we had:

- BOT: estimates growth of Thai exports to rise to single digits, at 9.2 per cent

- Commerce Ministry: Jan-Apr export posted -3.86% growth, import grew 9.79%, trade deficit at $8 bn

- PM Yingluck projects 2012 Thai economy to grow 5.5-6.5%, inflation 3.5-4% despite world economic downturn

Maybe someone out there can be interested in a Crystal Ball? I have one, hardly ever used, only needs new batteries

[warfie]

You really couldn't make this stuff up.

it is one thing to be a patronizing liar, it is another to admit the fact.

AND, to defend it as being good and necessary!

[Thai at Heart]

Does this mean that a GDP increase of 5.5 - 6% is already out of the question? Not that that would surprise me as import/export figures up till June were way down.

In May we had:

- BOT: estimates growth of Thai exports to rise to single digits, at 9.2 per cent

- Commerce Ministry: Jan-Apr export posted -3.86% growth, import grew 9.79%, trade deficit at $8 bn

- PM Yingluck projects 2012 Thai economy to grow 5.5-6.5%, inflation 3.5-4% despite world economic downturn

Maybe someone out there can be interested in a Crystal Ball? I have one, hardly ever used, only needs new batteries

Ask the Finance minister, I am sure he has all the data at his finger tips. I cannot believe this guy had the arrogance to actually say what he did. This may go down in history as the dumbest comment ever made by a Finance Minister in the history of global business. I would love to listen to the sniggering in the national banks in the region over coffee this morning.

[tomross46]

When does a politician not lie? When his mouth is closed and his hands are tied.

[cloudhopper]

This may go down in history as the dumbest comment ever made by a Finance Minister in the history of global business.

Hardly. Jean-Claude Juncker, the prime minister of Luxembourg and chairman of the Euro zone finance ministers was quoted in May saying "when things get serious, you have to lie". And of course they all do because fiat currencies the world over are a confidence game.

[Thai at Heart]

This may go down in history as the dumbest comment ever made by a Finance Minister in the history of global business.

Hardly. Jean-Claude Juncker, the prime minister of Luxembourg and chairman of the Euro zone finance ministers was quoted in May saying "when things get serious, you have to lie". And of course they all do because fiat currencies the world over are a confidence game.

Well he also said ""I don't think Spain will need any kind of external support."

So lying seems to come quite easily to him.

[Skywalker69]

Khun Na-Ranong, hmmmmm.......I don´t know how to put this to you.

There is a soft way and a hard way.

I think I go soft on.

You are not up for the Nobel Price in economics in a billion years.

Edited August 24, 2012 by Skywalker69