Deputy Thai PM tackles long-term economic agenda

[webfact]

ECONOMIC
Deputy PM tackles long-term economic agenda
Erich Parpart
The Nation

BANGKOK: -- Since he took office, MR Pridiyathorn Devakula, the deputy prime minister in charge of the economy, has been laying down long-term economic plans in the hope of bringing Thailand back to its real gross domestic product potential, such as the campaign to transform the country into a trading nation via the introduction of the international trading centre and regional operating headquarter schemes.

"We have the agriculture dimension, a well-placed manufacturing sector. We have a service industry. We have simply exports and if we can add overseas trading to the equation, all economic dimensions will be complete and I believe that we can come back from average GDP growth of 2.9 per cent to our real potential of 5 per cent.

"If we can do it, since trading profit is much higher than the other economic dimensions," he told a seminar arranged by the Stock Exchange of Thailand last week.

Other initiates he has made are revising the agenda of the Board of Investment (BoI), moving to exploit the country's unused natural resources and modernising the country via the digital economy.

He successfully changed the focus of the BoI's investment promotions last year towards supporting industries that the country really truly benefits from and making use of the country's resources and geographical advantages, such as renewable energy, research and development, special petrochemicals, ready-made food, airports and capital-intensive industries.

"We have to step towards products that require higher technology and innovation such as bioplastics, which other emerging Asean countries still cannot produce but Thailand can begin to do it now.

"One bioplastics factory is expected to open soon. The airport business is also another one that we should pursue since Thailand is most suitable for it in this region, along with the special petrochemicals industry," he said.

"We are champions in pickup trucks and eco cars but after this promotional round of eight remaining years we will not give privileges to the eco car industry anymore since we have to move forward to electric and hybrid cars. The reason for that is we have to move faster than others in region," he said.

Many large corporations have begun to ask for BoI privileges for R&D. The agency also aims to provide privileges to industries that make use of the country's abandoned and unused resources such as rubber by encouraging China to come and open a factory to make tyres, which has the biggest market demand when it comes to rubber products.

One Chinese factory already started up last year while seven more are expected to open, which means that Thailand will have the ability to export around one million tonnes of tyres annually if all these factories are operating in two to three years, he said.

Potash is a resource that the country has not fully utilised. Thailand's reserves of potash are the highest in Asia - 400 billion tonnes were surveyed worth about Bt2 trillion. Potash can be used to make leavening agents for fertilisers and the country already has the technology to mine clean potash. Two factories to mine potash will be opened within the first half of this year.

"We need new products and industries to drive this country forward," he said.

The digital economy will support all the efforts to drive the economy such as the services industry, which requires greater use of Internet technology and would stand to benefit in terms of an increase in visitors from hotels booked online.

The idea of a digital branch for retail banking is not that far away.

Another effort is to fix the country's weaknesses in energy consumption and energy resources. About 18 per cent of GDP is spent for energy. The natural gas reserves of the country are about to run out in seven years.

This means that Thailand has to look for more gas or move into other forms of energy. However, nuclear power is out of the question "because people's lives are more precious than energy".

Clean coal power should be considered even though its production cost is higher, as it is safer, he added.

Source: http://www.nationmultimedia.com/business/Deputy-PM-tackles-long-term-economic-agenda-30252152.html


-- The Nation 2015-01-19

[NongKhaiKid]

Long term outlook from DPM - " well my bank account is good and getting better and my overseas assets well, a story for a rainy day ! "

Before anyone starts jumping up and down, I married into money.

Edited January 19, 2015 by NongKhaiKid

[billd766]

Long term outlook from DPM - " well my bank account is good and getting better and my overseas assets well, a story for a rainy day ! "

Before anyone starts jumping up and down, I married into money.

Can anybody remember the last few governments financial forward planning?

I can't.

At the very least this government seem to be looking more than a couple of weeks into the future.

Good for them I say.

[tbthailand]

Another effort is to fix the country's weaknesses in energy consumption and energy resources. About 18 per cent of GDP is spent for energy. The natural gas reserves of the country are about to run out in seven years.

too bad Thailand doesn't have much sun or wind.

[brucec64]

Long term outlook from DPM - " well my bank account is good and getting better and my overseas assets well, a story for a rainy day ! "

Before anyone starts jumping up and down, I married into money.

Can anybody remember the last few governments financial forward planning?

I can't.

At the very least this government seem to be looking more than a couple of weeks into the future.

Good for them I say.

Yes, they are making a lot of long-term plans, almost as if the don't plan on leaving. The only planning I don't see is for the election originally promised in late 2015, now mid 2016, and soon to be?????

[rickirs]

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Long term outlook from DPM - " well my bank account is good and getting better and my overseas assets well, a story for a rainy day ! "

Before anyone starts jumping up and down, I married into money.

Can anybody remember the last few governments financial forward planning?

I can't.

At the very least this government seem to be looking more than a couple of weeks into the future.

Good for them I say.

Most of the Junta's 2014 and 2015 budgets were extensions of Yingluck's budget proposals. This government hasn't had an original financial idea and beyond PLANNING. it can't EXECUTE (programs that is).

[rickirs]

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Another effort is to fix the country's weaknesses in energy consumption and energy resources. About 18 per cent of GDP is spent for energy. The natural gas reserves of the country are about to run out in seven years.

too bad Thailand doesn't have much sun or wind.

The current administration does seem to have a lot of NATURAL GAS however.

[rickirs]

Here is Finance Minister Sommai Phasse's long-range plan:

"The spending power of Thailand's neighbouring countries is still high. So, when I address international financial institutions, I ask them to give our neighbouring countries financial aid, instead of Thailand. This is because if our neighbours are doing well, we will be also do well," - Nation 2014-12-29.

This Junta-led government is such a powerhouse of responsible fiscal policy makers!

[rubl]

Long term outlook from DPM - " well my bank account is good and getting better and my overseas assets well, a story for a rainy day ! "

Before anyone starts jumping up and down, I married into money.

Look again. The "MR" before his name suggest having been born with a silver spoon in his mouth

[rubl]

Here is Finance Minister Sommai Phasse's long-range plan:

"The spending power of Thailand's neighbouring countries is still high. So, when I address international financial institutions, I ask them to give our neighbouring countries financial aid, instead of Thailand. This is because if our neighbours are doing well, we will be also do well," - Nation 2014-12-29.

This Junta-led government is such a powerhouse of responsible fiscal policy makers!

I'm sure some would prefer the 'little white lies' fellow who was Minister of Finance under PM Yingluck

PS The full Nation article is a bit more balanced

http://www.nationmultimedia.com/business/Govt-plans-boost-to-flagging-economy-next-year-ami-30250875.html

Edited January 19, 2015 by rubl

[MaiChai]

Anyone seen any Thai car/pickup brands on the roads here? Only ones i see are foreign brands?

Thailand is no longer a cheap place to make things nor is it a first world country with well educated people who can invent things. Thus the problem.