Premier promises recovery of Thai economy in fourth quarter

[webfact]

ECONOMIC
Premier promises recovery of economy in fourth quarter
The Nation

BANGKOK: -- The economy will recover next quarter, said Prime Minister General Prayuth Chan-ocha, who indicated that a planned inheritance tax would have no negative impact on low-income earners.

After the first meeting of his Cabinet yesterday, Prayuth expressed confidence in the country's economic recovery in the final quarter of the year.

He said this was not up to the government or the prime minister only, but would be driven by the public sector, the private sector and the people.

A joint committee of the public and private sectors is discussing what is required. If more subsidies are needed, that will mean more borrowing and, in the end, such borrowing will only cover debt repayments with nothing left for national administration, he warned.

To make the nation more competitive, the government will focus on export products that are innovative, are technologically advanced, and add value, Prayuth said.

Price mechanisms that depend on external factors for agricultural products such as rice, rubber and tapioca may need to be explained to people, he said, citing agreements under the World Trade Organisation.

Given Thailand's rising wages, new brands and innovation are required to compete with other countries.

On the proposed inheritance tax, Prayuth said this was still in the review process, but low-income earners would be exempted from it. The draft is being reviewed for fairness, he said, noting that the richer would pay a higher tax, and the poorer would pay less.

The concentration of wealth and widespread poverty were difficult to solve, as this situation had developed over a long period and several governments were unable to find solutions, Prayuth said, adding that this government would do its best as well.

He said Thailand was facing problems moving into a digital-based economy because of delayed investments.

Prayuth insisted that martial law, which was not discussed at the Cabinet meeting, would not affect Thailand's internal economy, but there could be some impacts on foreigners, so the effects on tourism needed to be assessed.

He added that only some articles of the martial law had actually been employed.

Source: http://www.nationmultimedia.com/business/Premier-promises-recovery-of-economy-in-fourth-qua-30243434.html


-- The Nation 2014-09-17

[givenall]

More good news even if not true. These Premiers should heir the same expert reported on the tourism

http://www.thaivisa.com/forum/topic/761073-experts-pinpoint-thai-tourism-setbacks/

[Upset]

Wow....miracles now.

[Thailand]

It's OK.

TAT will be providing the stats.

[spidermike007]

I think he did not consider the fallout from the Koh Tao incident. The statements he had been making will in no way contribute to an economic recovery. He inadvertently seems to have sabotaged his countries recovery, due to his careless, and heartless words on this recent double murder. The extent to which it is reverberating around the world, at this moment, is pretty dramatic. In the tourism industry there is a such thing as a tipping point. If foreigners feel they might be targeted here, it could have an effect on which country they decide to visit, in the region. I realize Thailand is pretty safe. But, alot of people do not. And incidents like this, with callous statements such as the recent ones he has issued, do not help anyone, or anything. They are most unproductive, and possibly evidence of an immature mind, and a man who is completely out of his element in the political arena.

Granted, tourism is only one part of the Thai economy. But, considering that the various estimates put it at between 8 and 15% of the overall economy, it is significant. All I am pointing out here, is that when someone makes a blanket statement like this, in regard to the economy improving, they better have some good info that they are basing such a pronouncement on. And they are never able to take into account unforeseen events, such as the Koh Tao murder tragedy.

[Snig27]

It's what happens when a bunch of people who are only good at spending excessive military budgets attempt to oversee something they have no experience of such as an economy. We're back in the land of Oz here. As spidermike says, completely out of their depth.

And spidermike, I agree - tourism was tanking before Koh Tao but that's the sad icing. I wish it were not so.

[Mr Yim]

Like I have said before, the opponents to the coup need do nothing but bide their time. Contrary to their belief, military government's skills are not in governing the economy. Give them enough rope. . . .

[Alwyn]

Incredible. Has somebody been at the opium?

[rickirs]

"The concentration of wealth and widespread poverty were difficult to solve, as this situation had developed over a long period and several governments were unable to find solutions ... "

Apparently 12 military coups followed by coup-tailored governments also failed. But what is known with historical certainty is that following every coup there was an immediate loss in GDP and short-term economic stagnation. I appreciate the Junta's PROMISES for recovery in the fourth quarter but are not promises the stuff politicans are made of as a promise is not a fact?

[heybruce]

Generalities about sectors, competitiveness, and advanced technology. Nothing about immediate action that would have positive results in the near future, like lifting martial law.