Thai govt injecting new economic stimulus

[webfact]

Govt injecting new economic stimulus
By English News



BANGKOK, Dec 4 – The government decided today to inject an additional stimulus to revive Thailand’s sagging economy, due to the month-long political turmoil.

Teerat Rattanasevi, a government spokesman, said economy-related agencies were assigned to work out measures to stimulate the country’s economy in the remaining month of the year.

The instruction was given by Prime Minister Yingluck Shinawatra who chaired the Cabinet’s economic ministers meeting.

The premier reportedly told the meeting to strengthen confidence among domestic and international investors, boost employment in the private sector, promote essential industries and find measures to avoid a delay of the government’s Bt2 trillion investment plans.

The new measures should be announced in a month to ensure economic expansion next year while proposals from the public and private sectors will be taken into consideration in eliminating obstructions, he said.

Arkhom Termpittayapaisith, secretary general of the National Economic and Social Development Board, informed the meeting that 36 countries have warned their people against visiting Thailand but international credit rating agencies have not lowered Thailand’s credit so far.

He said the political conflicts have affected budget disbursement in the first two months of the 2014 fiscal year (September-October) which was reported at Bt476.568 billion, 15.2 per cent lower than the corresponding period last year.

Somsak Pureesrisak, Tourism and Sports Minister, said the political demonstrations have impacted tourism in Bangkok, but not provincial destinations including Chiang Mai and Phuket.

He said the ministry has organised several tourism promotion events to boost the tourism industry.

Somchai Sujjapongse, director of the Fiscal Policy Office, said the political situation has compelled the Monetary Policy Committee (MPC) to reduce policy interest rate, consequently resulting in weakened baht compared to regional currencies excluding Indonesia.

Foreign investors have sold over Bt4.6 billion of bonds and Bt17 billion of equity instruments, he said.

Predicting continued economic risk, central bank governor Prasarn Trairatvorakul admitted that monetary policy, in additional to financial policy, was necessary to stimulate the economy to build up confidence among the private sector.

The MPC believed inflation would be at controllable level but the expansion of borrowing has slowed down from 14 per cent to 9 per cent, with a prediction growth at only 7 per cent next year.

“We have to closely monitor the US quantitative easing measures which will have an impact on currency exchange. The movement of Chinese yuan should also be closely watched as it also has an impact on the Thai currency,” he said. (MCOT online news)


-- TNA 2013-12-04

[Ricardo]

Interesting how the recent protests are again blamed, for the sagging economy, rather than the government's economic-policies over the past two-and-a-half years.

Interesting also to note that the B75-billion bond-sale, to raise more cash to enable BAAC to resume pay-outs under the rice-scheme, was undersubscribed by 50% ?

Yet raising B350-billion for flood-work, or B2.2-trillion for vague infrastructure-spending, is still assumed to be a doddle ?

I suspect there's a shortage of 'white-lies' from the poo-yais !

[Pib]

And I'm sure this economic stimulus will be focused towards areas of the country, groups of people, and select programs which will maximize future votes for the PTP.

[Thai at Heart]

A week ago, there was no problem, now the month long Protests are causing the problem?, the economy has been slowing down for a while.

[HiSoLowSoNoSo]

Govt injecting new economic stimulus = injecting stimulus to Shinawatra family and friends bank accounts.

Edited December 4, 2013 by metisdead
Oversize font reset to normal. Please do not post using overly large font.

[rubl]

What about the review and possible adjustment of the minimum wages? Something which used to be done with effective date 1st of January.

[Tokay]

There is another crash coming, prepare accordingly. A lot of Thailand will be up for grabs if you have the cash.

[Rob8891]

Tam sabai, K Y. Don't rush with the economic aspirins.... Baht now at 52.78 / £... plenty of time, plenty of time.......

[Noi657]

Economics aren't really my thing, but I believe that whatever goes up must come down! A crash? To what extent?

[jaltsc]

"The premier reportedly told the meeting to strengthen confidence among domestic and international investors, boost employment in the private sector, promote essential industries and find measures to avoid a delay of the government’s Bt2 trillion investment plans."

Sounds like she stole the speech of every western politician who makes promises which are usually never fulfilled.. Word of warning: Those promises did not pan out in countries with economies that are far more advanced than Thailand's. Secondly, the skills necessary to increase employment in the modern tech industries do not exist among the Thai population. Therefore, the jobs that the premier is talking about will either go to industries in other ASEAN countries, or Thailand will have to import foreign labor. Either way, money will be leaving the country and the economy will continue to suffer.

[tomacht8]

Raising 2.200.000.000.000 Baht (B2.2-trillion) for infrastructure-spending,
On credit!
The next two generations can pay back over 50 Years around 6 Trillion Baht with compound interest.

And as i read in http://www.aljazeera.com/indepth/opinion/2013/12/protesting-against-thailand-big-brother-20131227421913272.html

The investment planning paper is only 4 pages long!!!
4 pages (in words: four pages)
to borrow 2.2 Trillion Baht from the own state bank.

Every start up in this world must submit a complete business plan for a micro-credit bank loan.
But 2,2 Trillion Baht for a 4 Pagesplan.
incredible!

Is there really no parliamentary scrutiny?

Edited December 4, 2013 by tomacht8

[haroldcane]

... http://www.aljazeera.com/indepth/opinion/2013/12/protesting-against-thailand-big-brother-20131227421913272.html ...

a perfect & detailed article written by an insider into thai politics. my recommodation: READ IT!

[noitom]

Raising 2.200.000.000.000 Baht (B2.2-trillion) for infrastructure-spending,

On credit!

The next two generations can pay back over 50 Years around 6 Trillion Baht with compound interest.

And as i read in http://www.aljazeera.com/indepth/opinion/2013/12/protesting-against-thailand-big-brother-20131227421913272.html

The investment planning paper is only 4 pages long!!!

4 pages (in words: four pages)

to borrow 2.2 Trillion Baht from the own state bank.

Every start up in this world must submit a complete business plan for a micro-credit bank loan.

But 2,2 Trillion Baht for a 4 Pagesplan.

incredible!

Is there really no parliamentary scrutiny?

3 1/2 are dedicated to walking you through the intro - what's the problem?

[Eddy B]

Yingluck!! Can you hear me?? No. I guess not. Stop f%$king around trying to make Thailand's baht stronger than other nations. You have no exports of worth to anyone at the moment, import is overly priced and foreign exchange is shit even during this period of protesting. Thailand is using Monopoly money now. Pack your bags and go and see big brother and have a holiday.

[hellodolly]

Interesting how the recent protests are again blamed, for the sagging economy, rather than the government's economic-policies over the past two-and-a-half years.

Interesting also to note that the B75-billion bond-sale, to raise more cash to enable BAAC to resume pay-outs under the rice-scheme, was undersubscribed by 50% ?

Yet raising B350-billion for flood-work, or B2.2-trillion for vague infrastructure-spending, is still assumed to be a doddle ?

I suspect there's a shortage of 'white-lies' from the poo-yais !

Also a shortage of gray matter.

The premier reportedly told the meeting to strengthen confidence among domestic and international investors, boost employment in the private sector, promote essential industries and find measures to avoid a delay of the government’s Bt2 trillion investment plans.

Am I wrong but shouldn't they be doing those things any how?

[Thai at Heart]

Yingluck!! Can you hear me?? No. I guess not. Stop f%$king around trying to make Thailand's baht stronger than other nations. You have no exports of worth to anyone at the moment, import is overly priced and foreign exchange is shit even during this period of protesting. Thailand is using Monopoly money now. Pack your bags and go and see big brother and have a holiday.

Do you know anything about how this works????

[Thaddeus]

Economics aren't really my thing, but I believe that whatever goes up must come down! A crash? To what extent?

My guess would be it will be between 'a bit' and 'monumental'

Just like the level of falsification spouted by both sides recently.

In the short term, lies can be buried, swept under the carpet........

In the longer term.............

When the next election comes, be it next week, next month, next year or in two years time, it will take a brave person to stand up and say they will sort out this financial mess.

[hellodolly]

A week ago, there was no problem, now the month long Protests are causing the problem?, the economy has been slowing down for a while.

I thought you had left Thailand. You sure take a lot of interest in it. I can certainly understand that. I remember going back to the old country to sell every thing or give it away. (I refused to be owned by my possessions) At any rate a friend of mine went with me to see the play the King and I. I got home sick watching it.

Yes the economy is slowing down as there is not that many tourists coming. Also try as she can Yingkluck Yingluck is not a confident inspiration to big money investors.

She should get a book on how to run a government for the betterment of it and stay home and read it. She can send her minister of commerce and minister in charge of foreign relations to fly around the world and do their job.

[lemoncake]

What about the review and possible adjustment of the minimum wages? Something which used to be done with effective date 1st of January.

What about compensating businesses for loss of trade for a month now and more to come?

[EricBerg]

The missunderstood fugitive needs an end of the year bonus?

Edited December 4, 2013 by EricBerg

[JRSoul]

Paying the rice farmers what they are owed would be a good start. Or not.

[Thai at Heart]

A week ago, there was no problem, now the month long Protests are causing the problem?, the economy has been slowing down for a while.

I thought you had left Thailand. You sure take a lot of interest in it. I can certainly understand that. I remember going back to the old country to sell every thing or give it away. (I refused to be owned by my possessions) At any rate a friend of mine went with me to see the play the King and I. I got home sick watching it.

Yes the economy is slowing down as there is not that many tourists coming. Also try as she can Yingkluck Yingluck is not a confident inspiration to big money investors.

She should get a book on how to run a government for the betterment of it and stay home and read it. She can send her minister of commerce and minister in charge of foreign relations to fly around the world and do their job.

Well I still have assets to dispose of.

Just read the headlines. The funny thing is the white lie man jumping up and down a few months ago to get his devaluation. Well now he has it. My missus is still waiting for visas and stuff. Ironically, business maybe be bringing me back that way

After 18 years its still partly home and always will be. My wife is thai my kids are half thai. Am I not meant to care anymore. It's not tourists that have slowed down, in general it slowed down because the baht got strong so now they cut interest rates and exports get a push but imports go up.

Its basic stuff.

[waza]

"The premier reportedly told the meeting to strengthen confidence among domestic and international investors, boost employment in the private sector, promote essential industries and find measures to avoid a delay of the government’s Bt2 trillion investment plans."

So basically Yingluck has told the Cabinet’s economic ministers to find ways to push ahead with the 2.2 trillion baht loan using the rationale it will boost the economy. The problem is it will have the opposite effect but they need this money to bail out the BAAC, to fund the existing rice scam debt and its expansion and to fund the budget deficit. Remember 20% of the 2013- 2014 budget will be funded with debt, then there's the 350 billion baht water management and an election to fund. Plus the existing 2 trillion off the books debt has to be serviced. Its more of the Thaksinomic theory of robbing Peter to pay Paul then kicking the can down the road for other future governments to deal with.

[webfact]

New measures planned to boost economy
Piyanart Srivalo
The Nation

BANGKOK: -- Four key government agencies are in the process of working out a major economic stimulus package to boost investor confidence in the face of ongoing political instability. This was announced as part of an order issued by Prime Minister Yingluck Shinawatra yesterday.

The order was released after finance-related ministries met yesterday, government spokesman Teerat Ratanasevi said, adding that the government was also evaluating how the current turmoil has affected the economy.

The key objectives of this stimulus package are to ensure that tourism - a sustainable resource of the country's income - is not affected by the political situation, that the confidence of both Thai and foreign investors remains unaffected and that new jobs can be created.

Yingluck is believed to have raised these ideas in order to show to the world community that Thailand was progressing economically and that travelling around in Bangkok and elsewhere was convenient in general, with the exception of some areas where rallies are being held, Teerat said.

The four agencies working on the package are the Finance Ministry, Tourism and Sports Ministry, Bank of Thailand and Office of the National Economic and Social Development Board. They have been instructed to complete the draft by early next year. Other economics-related ministries have also been told to heed proposals to be submitted by the business sector.

Foreign Minister Surapong Tovichakchaikul, who attended the meeting, said Yingluck had also raised the idea of getting the national carrier to introduce more domestic flights for tourists who land in Bangkok and can be flown to the provinces immediately.

Other measures proposed include holding grand sales at certain locations in Bangkok or promoting the country as a destination for movie productions.

"The government is planning to turn Bangkok into a place where tourists can enjoy the countdown during the cool weather. If possible, I would like to call on protesters to halt their activities during the holiday period," Surapong said, adding that the capital had lost its chance of securing revenue from shopping.

Tourism Minister Somsak Pureesrisak said organisers of events and seminars have also been losing business due to the street protests.

Meanwhile, Teerat said Yingluck had asked Surapong to speak to foreign embassies, especially those of Japan and certain European countries, and make them understand that the situation is not serious enough for them to issue travel advisories.


-- The Nation 2013-12-05

[Thai at Heart]

They have been instructed to complete the draft by early next year.

The protests will be finished by then.....

[chooka]

The best way to attract foreign (Farang) confidence and investment (Money) is to cease with constant political unrest and demonstrations. Both sides need to grow up and put the country ahead of self interests.

[belg]

they can do a new safari :

come visit the protestors in their natural environment, either protesting or watching the rice grow in the fields

[mok199]

^{im still trying to figure out why the ladyboys asses are getting so big..}

[WilliamCave]

Raising 2.200.000.000.000 Baht (B2.2-trillion) for infrastructure-spending,

On credit!

The next two generations can pay back over 50 Years around 6 Trillion Baht with compound interest.

And as i read in http://www.aljazeera.com/indepth/opinion/2013/12/protesting-against-thailand-big-brother-20131227421913272.html

The investment planning paper is only 4 pages long!!!

4 pages (in words: four pages)

to borrow 2.2 Trillion Baht from the own state bank.

Every start up in this world must submit a complete business plan for a micro-credit bank loan.

But 2,2 Trillion Baht for a 4 Pagesplan.

incredible!

Is there really no parliamentary scrutiny?

Can I ask how much is this in US dollars ?

[hellodolly]

Raising 2.200.000.000.000 Baht (B2.2-trillion) for infrastructure-spending,

On credit!

The next two generations can pay back over 50 Years around 6 Trillion Baht with compound interest.

And as i read in http://www.aljazeera.com/indepth/opinion/2013/12/protesting-against-thailand-big-brother-20131227421913272.html

The investment planning paper is only 4 pages long!!!

4 pages (in words: four pages)

to borrow 2.2 Trillion Baht from the own state bank.

Every start up in this world must submit a complete business plan for a micro-credit bank loan.

But 2,2 Trillion Baht for a 4 Pagesplan.

incredible!

Is there really no parliamentary scrutiny?

Can I ask how much is this in US dollars ?

http://www.oanda.com/currency/converter/