M.R. Pridiyathorn says economic stimulation scheme now will be a waste

[Lite Beer]

M.R. Pridiyathorn says economic stimulation scheme now will be a waste

BANGKOK: -- Implementation of economic stimulation programme under the current situation when the world is experiencing economic slump which has the tendency to drag on for 2-3 years will not work and will be a waste of budget, said Deputy Prime Minister M.R. Pridiyathorn Devakula over the weekend.

Instead, he pointed out that budget should be injected into the segments which are weak and which require financial help such as rice farmers and rubber planters so that they will not fall deeper into debt.

On top of that, he suggested that authorities concerned should closely monitor the damage rendered to rice farmland by the current drought and then quickly mete out measures to help mitigate the damage.

The deputy prime minister, however, said that Thailand’s weakening economy would recover quickly and growth rate may surge to 4-5 percent if consumers have confidence and spend more as consumption constitutes 56 percent of the GDP compared to tourism which accounts for only 10 percent of GDP while government’s spending accounts for only 20 percent.

He attributed global economic slump to global oil price cuts as a result of the increased commercialization of oil shale which, he explained, has suppressed global oil prices and pulled down the prices of consumer and farm products worldwide.

As a direct result of global economic slump, he pointed out that Thai export expansion has dropped steadily from 10 percent per annum to 2.9 percent in 2012, to 0.26 percent, 0.01 percent and -4.69 percent in 2013, 2014 and 2015 respectively.

Source: http://englishnews.thaipbs.or.th/m-r-pridiyathorn-says-economic-stimulation-scheme-now-will-be-a-waste

-- Thai PBS 2015-07-12

[IMA_FARANG]

He attributed global economic slump to global oil price cuts as a result of the increased commercialization of oil shale which, he explained, has suppressed global oil prices and pulled down the prices of consumer and farm products worldwide.

-------------------------------------------

Absolute nonsense......lower oil prices are a direct result of deliberate overproduction by certain large volume oil producing countries for political reasons and a deliberate attempt by large scale producers to lower prices to force low volume producers out of the production game by lowering prices with over production to force the lower volume producers out by cutting their income and thus maintaining the monopoly and control of large scale producers.

It is classic underselling to cut your smaller competition out of the game and maintain your control of a monopoly by the large volume oil producers.

[worgeordie]

Will purchasing 3 Subs be a waste of money?

regards Worgeordie

[Asiantravel]

" Thailand’s weakening economy would recover quickly and growth rate may surge to 4-5 percent if consumers have confidence and spend more "

shouldn't someone tell the Deputy Prime Minister that affordability is the big problem? Where anywhere in the world are real incomes growing sufficiently to keep up with food price increases and money grabbing governments that want to continually increase taxes?

Edited July 12, 2015 by Asiantravel

[dcutman]

Instead, he pointed out that budget should be injected into the segments which are weak and which require financial help such as rice farmers and rubber planters so that they will not fall deeper into debt.

Has not around a trillion baht been dumped in to these so called segments in the last 3 or 4 years? How has that been working out so far?

[Srikcir]

“Implementation of economic stimulation programme under the current situation … will be a waste of budget”

Devakula's solution: No economic stimulus

The Experts:

- Tim Leelahaphan, Maybank Kim Eng Securities (Thailand) economist and assistant vice president of its Research Department, The Nation 2015-04-24: “the worst-case scenario for the economy could happen if government investment does not occur, there is stronger than expected opposition to the new charter and inflation rises.”

- The chairman and chief executive officer of Asia Wealth Securities, Pichit Akrathit, The Nation 2015-04-24: “capital from government investment was still not there and investors were waiting to see clarity in the government's investment plans while household debt, lower crop prices and uncertainty over future income were hindering internal consumption.”

- The chief executive officer of Asia Plus Group Holdings Securities, Kongkiat Opaswongkarn, The Nation 2015-04-24: “THE RISKS to the economy from now until the end of the year are mostly internal factors such as the slower than expected recovery of the grassroots section of society and the possibility of further delays to the government's investment plans.”

- Thanawat Polvichai, director of the Economic and Business Forecast Centre of the University of Thai Chamber of Commerce, 2015-04-17: “The contraction of economic growth, the shrinking of export and domestic consumption, farm price slump and delayed disbursement of government’s spending budget have combined to make the private sector feel not confident with the state of the economy,”

- Thanawat Polwichai, director of the Center of Economics and Business Forecast of the Thai Chamber of Commerce University, 2015-04-15 : “Increasing government spending through investments in mega projects around the country in order to stimulate the job market and spending is probably the best way to inject money into the economy”

The real waste in the budget is paying Devakula for his economic expertise.

[DonaldBattles]

This is a classic situation where they are trying to keep the farmers from revolting. The Esan rent a mob has proven that they can play havoc with any government. 38% of the work force is involved in farming but contributions to the GDP are only 13%. Farmers need to be given machines to plant and harvest rice. This way the balance of the work force could be distributed to the industrial or services parts of the GDP.

[i claudius]

Will purchasing 3 Subs be a waste of money?

regards Worgeordie

Of course not ,we have a yellow one here in Pattaya it does great buisness, Hua hin will have a blue one Phuket a green one and Bangkok a pink one .

[eliotness]

He attributed global economic slump to global oil price cuts as a result of the increased commercialization of oil shale which, he explained, has suppressed global oil prices and pulled down the prices of consumer and farm products worldwide.

-------------------------------------------

Absolute nonsense......lower oil prices are a direct result of deliberate overproduction by certain large volume oil producing countries for political reasons and a deliberate attempt by large scale producers to lower prices to force low volume producers out of the production game by lowering prices with over production to force the lower volume producers out by cutting their income and thus maintaining the monopoly and control of large scale producers.

It is classic underselling to cut your smaller competition out of the game and maintain your control of a monopoly by the large volume oil producers.

I basically agree with what you are saying except I thought it was done to harm Putin's Russia more than the smaller players. Hence the crash of the Rouble.

[chilli42]

Thai households are so deep in debt that there is no room to spend more. They are just barely servicing the debt they have. Hard to see how they can spend more.

[Ichabod]

Pridyathorn was supposed to spend substantial funds last to stimulate the economy, but he didn't. At one point he allowed as how it would be better for the funds to be released in December, way behind schedule, since the farmers would have finished their harvest. All just meaningless gibberish for his failure or refusal to do his job. As far as I have heard, he never released the funds. Now he comes up with new reasons not to spend tax money to stimulate the economy. Pridyathorn has been a consistent anti-democrat calling for stopping elections.

The same man who single-handedly crashed the Thai stock market in 2007. Just another incompetent who could never win an election.

Edited July 15, 2015 by Ichabod