Thai Commerce Ministry faces public anger over cost of living

[webfact]

Ministry faces public anger over cost of living
Petchanet Pratruangkrai
The Nation

BANGKOK: -- Growing Public anger over the rising cost of living is leading to unusual developments at the Commerce Ministry, which is tasked with maintaining domestic price stability.

A woman called the Commerce Ministry's 1569 hotline on Wednesday and threatened physical violence against the ministry's permanent secretary Vatchari Vimooktayon, it was disclosed yesterday. An official manning the hotline desk, which fields complaints or tip-offs about product prices, said the mysterious caller also threatened to splash acid on Vatchari.

Earlier this week, when she announced August inflation data, Vatchari insisted that the higher price for cooking gas would only add 0.01 of a percentage point to inflation in the remaining four months of this year.

"It's just a perception that goods are expensive," she added.

Her words have been shared widely across social media in the past few days.

Yesterday, the official website of the ministry's Department of Internal Trade (www.dit.go.th) was hacked by a group called Dz4Hack, represented by a logo showing a penguin. The department later announced that the hacker had not stolen or altered any information.

Public dissent has been growing since September 1, when the cost of cooking gas, expressway tolls and fuel went up simultaneously. The price rises come amid a high household-debt level, which stands at nearly 80 per cent of gross domestic product and has encouraged commercial banks to tighten rules on new loans.

Economic prospects as a whole are also poor, with the export sector, generating 70 per cent of GDP, suffering from weak global demand. Foreign investors have added to the woes by withdrawing massive funds from the Thai capital market.

Wachira Kuntaweethep, assistant director of the University of the Thai Chamber of Commerce's Economic and Business Forecasting Centre, said consumers were extremely concerned over the rising cost of living. According to a survey taken by the centre, about 50 per cent of respondents have not yet been affected by the rising household-fuel price, but they expect to feel its impacts within the next month.

Overall, about 62 per cent of respondents said they would be affected by the rising costs of cooking gas, electricity and expressway tolls.


-- The Nation 2013-09-06

[clockman]

As you sow, so shall you reap

[Tatsujin]

Well, you voted for them . . . stop complaining or vote in someone who can do the job properly instead of shopping or posing for the cameras.

[GaoYuk]

The clocks ticking, some $h!# gonna go down!

[ramrod711]

"It's just a perception that goods are expensive," she added.

If you have a plush government job, she muttered under her breath.

[NeverSure]

Well, let's double the minimum wage. Heck, let's double everyone's pay. That won't affect prices, and everyone will be rolling in money.

Oh wait...

While we're at it, let's raise taxes on some more things so the government can keep spending more which always stimulates an economy.

Oh wait...

[alant]

Shocked that policies like raising the minimum wage and full employment is leading to higher prices, well I never. And then there is the weather, the price of eggs has risen 30% in the wet season. But wait, I see a host of statistics to be released clearly showing no price rises at all.

[gemini81]

time to: 1. teach Thais economics/inflation basics in high school and 2. vote with basic common sense

Edited September 6, 2013 by gemini81

[caughtintheact]

Almost all legislation and government manipulation of prices is inflationary, and even in tiny increments, a little inflation here, and a little inflation there adds up to lots of inflation everywhere. Thailand is not alone in forcing inflationaery policies, but that is hardly compensation for those higher prices caused by politicians.

[haroldc]

Every food shop and food cart in my soi raised prices on Monday - 30 to 35, 35 to 40, 40 to 55 etc. Taking the previous price of 35 as an average, that's a 14.3% increase. I guess it's just my "perception" that a 14.3% increase has made food significantly more expensive.

[Samaaw]

Cost of living - does also apply to the bribes that have to be paid at times? Or is that the so called TEA MONEY?

[FireMedic]

Thainess Promotion: Why yes Mr. Official running for office, I will take your 300 baht bribe to vote for you. Because, if you give me 300 baht now for my vote, you surely have my best intentions at heart and I'm sure you will do everything in your power to make sure the people you represent are represented fairly and appropriately. If and when my taxes, food, water, gas, and everything increase, I will be sure to blame it on something else.....like the influx of farangs ruining our country.

[jaltsc]

The one law Thailand can't Mai Pen Rai...The law of supply and demand

[FM505]

The flaw is with the Economic Ministry's fundamental task... "maintaining domestic price stability". Government interference with market forces is an error. Subsidizing fuel, rice, et.al. causes a false sense of security for consumers. Additionally, gov't impedes business development with arbitrary tax rates in general and the targeting of foreign business/investment initiatives with increasingly higher rates.

An overly complex system of double standards along with 'out and out corruption' from top to bottom in routine business transactions and gov't 'services'... establishes a formula for failure. This makes Thailand a bad investment.

[yourauntbob]

This is what happens with you toy with the money supply. There is no such thing as a free lunch, printing more money does not create more goods and services, it simply raises their prices. If they want the baht to keep depreciating then we are going to see more and more of this.

"It's just a perception that goods are expensive," she added.

What a bunch of BS, its obvious to everyone prices have been rising quickly over the last few years (not just in Thailand either). Time to cool the printing presses!

[mca]

A woman called the Commerce Ministry's 1569 hotline on Wednesday and threatened physical violence against the ministry's permanent secretary Vatchari Vimooktayon, it was disclosed yesterday. An official manning the hotline desk, which fields complaints or tip-offs about product prices, said the mysterious caller also threatened to splash acid on Vatchari.

But said she'd changed her mind after checking the rising price of acid.

[Mampara]

We all want salary increases and bonuses, don't we? shareholders also expect an increase in investment returns don't they? factories all need to replace their machines with more modern ones to increase production don't they? Well, in order for this to happen what needs to be increased? and what is the result of this increase?

[TackyToo]

"It's just a perception that goods are expensive," she added.

If you have a plush government job, she muttered under her breath.

Maybe she has time to read a book before meeting the press next time. She might come up wit some famous brainy quotes like these:

“...let them eat cake” or “smear caviar on the stairs, so that the mob breaks its bones on the way out.”

[thaikahuna]

Well, you voted for them . . . stop complaining or vote in someone who can do the job properly instead of shopping or posing for the cameras.

And they expected prices to stay the same after they begged for a wage increase to 300THB per day? Before it even went into effect street vendors were jacking up prices.

[Tatsujin]

Well, you voted for them . . . stop complaining or vote in someone who can do the job properly instead of shopping or posing for the cameras.

And they expected prices to stay the same after they begged for a wage increase to 300THB per day? Before it even went into effect street vendors were jacking up prices.

Actions have consequences and anyone with half a brain could have seen this coming a long while ago.

Thailand, please start looking to tomoro and the day after, not just the "now" ... you'll find things generally work out better that way.

[Always18]

time to: 1. teach Thais economics/inflation basics in high school and 2. vote with basic common sense

1) - would threaten the Thai status quo

2) - sadly, that's a most UNcommon commodity in LOS

Ergo, neither will happen..................

[recycler]

Prices of many items have a lot to do with the global economy, out of the influence of Thai governments. Raising the minimum wage was an election promise of both sides and to my opinion quite a good idea as there hadn't been any substantial raise in a very long time and it's struggling at 5000 Baht a month.

Thailand's problem is in productivity and efficiency. It keeps amazing me to see 8 staff in a 7Eleven spending more time with each other than on customers, TOT that sends 6 people to install a simple telephone line spread over 3 visits, the army of people in banks that fiddle around with paper and stamps ignoring huge ques, and I can go on and on about this.

Why with the high wages is it possible to get a kilo of pork or beef in the shop at better quality and lower prices in western Europe than here in Thailand?

If Thailand would learn to use less people to do the same job the wages could be raised even more, tackling another problem of inequality here as most of the money that is made ends up in very few pockets. The latter will be the most difficult problem as it's them who pull the strings in the system.

[Cats4ever]

This is what happens with you toy with the money supply. There is no such thing as a free lunch, printing more money does not create more goods and services, it simply raises their prices. If they want the baht to keep depreciating then we are going to see more and more of this.

"It's just a perception that goods are expensive," she added.

What a bunch of BS, its obvious to everyone prices have been rising quickly over the last few years (not just in Thailand either). Time to cool the printing presses!

Perhaps they could rename the increase in the money supply as quantative easing.

That should set the country on the path to righteousness.

[Time Traveller]

Nice the way the article blames foreigners as well for taking their money out of the country. It's never their own fault but always those evil foreigners.

[dknslowly]

Pushing up the minimum wage by such a ridiculous amount was always going to have flow on inflationary impacts. Add to this the disaster looming with the rice pledging scheme and there's good reason for the 'smart' foreign money to be getting out of Thailand as quickly as possible. Hold on for some bumpy weather ...

[xen]

A woman called the Commerce Ministry's 1569 hotline on Wednesday and threatened physical violence against the ministry's permanent secretary Vatchari Vimooktayon, it was disclosed yesterday. An official manning the hotline desk, which fields complaints or tip-offs about product prices, said the mysterious caller also threatened to splash acid on Vatchari.

Whatever the sins of this government are , and they have many,nothing, absolutely nothing, justifies throwing acid onto another human being.

[dominique355]

...and just when Thai people thought, all these price increases are now over, here come the next: increase of alcohol taxes.

Oops, sorry, that was not for generating more income for the government, but to curb drinking. Yeah right, that's why 40% spirits are taxed so low and 12% wines so high.

Isn't it fun to watch a totally incompetent government doctoring around with an economy which has never understood the concept of "free market"?

[Suradit69]

time to: 1. teach Thais economics/inflation basics in high school and 2. vote with basic common sense

I imagine that most of what is learned about economic reality is not learned from some text book and that people who are forced to cope with monthly income that meets expenses for only two or three weeks know more about the impact of inflation than do Ben Bernanke or Mario Draghi.

I assume you're being humorous with the comment of voting with basic common sense. In just about any election I've seen in the US or Europe or anywhere else, the electorate are given the choice to vote for Tweedledum or Tweedledee. And any politician who gets into office either contributes to even more economic chaos or ineffectively battles windmills during his one term in office.

Just about everyone who helped to create the current abysmal world-wide economic mess took basic economics in high school, many went on to get PhDs in economics and finance. And the doofuses who put them in office would all claim they voted with basic common sense ... for all the good it did them.

The best argument against democracy is a five-minute conversation with the average voter.

Winston Churchill

Edited September 6, 2013 by Suradit69

[sandhurstmolonski]

A woman called the Commerce Ministry's 1569 hotline on Wednesday and threatened physical violence against the ministry's permanent secretary Vatchari Vimooktayon, it was disclosed yesterday. An official manning the hotline desk, which fields complaints or tip-offs about product prices, said the mysterious caller also threatened to splash acid on Vatchari.

Whatever the sins of this government are , and they have many,nothing, absolutely nothing, justifies throwing acid onto another human being.

Agreed ...This is an Horrendous Threat ( Even if not really Intended ) , and Certainly something that must be acted upon .

[cup-O-coffee]

This is all chaotic.

In the first place, who was this caller? Some rich fat dowager worrying about her comfy life?

I am not convinced that your average mom and pop shoppe on the street are even aware of these things. Moreover, when one considers the many variables that must come into alignment in order for anyone to even be aware of these things, it is easy to rule out 90 percent of the Thai population who do use cooking gas, do use electricity (illegally hiooked up), and do not use expressways when driving their 20 year old jalopies, weatherbeaten carts and broken down scooters.

The threat of an acid attack is typical of rich fat dowagers who feel threatened, as well as any spoiled, rich bumholes in general.

I rate this entire issue as the wealthy pitting themselves against the wealthy, and do not see any clear evidence of the poor majority as even being aware of this.