Private sector urges Thai govt to prop up local economy

[webfact]

ECONOMIC
Private sector urges govt to prop up local economy
The Nation

BANGKOK: -- The private sector is urging the government and all other sectors to step up promotion of the domestic side of the economy, given weaker-than-expected signs in regard to export performance.

It is also proposes that the government re-examine the possibility of establishing an export development committee to tackle the country's trade difficulties.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which comprises the Federation of Thai Industries, the Thai Chamber of Commerce and the Thai Bankers' Association, met recently to discuss June's economic situation, which saw year-on-year export contraction of 7.9 per cent and a 4.7-per-cent fall in shipments for the first half of the year.

Thai exports in June shrank by a larger amount than the May figures, the JSCCIB said, expressing concern over the whole year's exports, which could now see a contraction for the third year in a row despite the weakening baht.

The Kingdom's falling exports are in line with the performance in other regional exporting countries, following the economic slowdown in China and Asean, it added.

In June, the Thai economy was driven mainly by tourism, with a 53.1-per-cent rise in the number of foreign visitors, and accelerated disbursement of the government budget.

Private spending started improving - albeit remaining at a low level - given an expansion of spending on non-durable goods.

However, consistent drops have been seen in the consumption of durable goods, due to lower farm income on the back of low prices of agricultural products, the drought and low consumer confidence, said the JSCCIB.

Meanwhile, most private investment in June was made for equipment repair and improvement of production efficiency.

The joint committee said the government may have to drive the economy consistently with support from all sectors in order to strengthen the domestic economic recovery.

This would help alleviate impacts from the export sector, which is signalling weaker-than-expected performance.

The JSCCIB is also urging the government to reconsider a proposal for the establishment of an export development committee, which could be the key to solving obstacles to trade and accelerating exports in key product groups.

One such obstacle involves the ease of doing business, with examples of how this can be achieved being a value-added-tax exemption on imports of raw materials and a tax waiver on income remitted from operators that invest abroad, the committee said.

To help facilitate trade and investment in the Asia-Pacific Economic Cooperation area, the committee is extending the Apec Business Travel Card's (ABTC) validity period from three years to five years for Thai businessmen submitting an application from the beginning of next month.

Applications for the ABTC, whose holders will spend less time on immigration procedures, incur reduced visa costs in some countries, and be able to get multiple visas with 60-90 days per stay, will be available online from the beginning of next year.

The JSCCIB also supports Thai negotiations for free-trade agreements with Turkey and Pakistan, which are targeted to be finalised in 2016 and 2017, respectively.

Meanwhile, at the July 22 meeting of the Thailand-Myanmar border business development committee in Bangkok, both sides agreed to propose that their governments open a Yangon-Mae Sot route and accelerate negotiations between the countries' central banks for a direct exchange-rate system.

Others measures include speeding up construction of the second Friendship Bridge crossing the Moei River and acceleration of the countries' negotiations on opening routes for public buses and transportation trucks under the memorandum of understanding on the Initial Implementation of the Greater Mekong Sub-region Cross-Border Transport Agreement.

Source: http://www.nationmultimedia.com/business/Private-sector-urges-govt-to-prop-up-local-economy-30265882.html

-- The Nation 2015-08-05

[tbthailand]

reap what you sow...

They paid for and backed the staged chaos that sent tourists elsewhere for 6 months

They supported the general and his intervention

They have participated in their myopic political purge / "reforms"

Now they want the 'government' to 'do something'....

Please, give me a break... The Thai elites have been farming on the back of the poor people all these long decades, ignoring the rest of the country and their fellow Thais... They're still going about it with talk of "reforms" for the healthcare system, the privatizing public universities, cutting 10 billion from the budget and then adding 10 billion to the miltary's part, ...

yeah, the economy is in the dumpster and there are good reasons for it... Take your lumps chumps...

[jerojero]

Yep, create another committee of Generals. That ought to work. Why can't they see that some outside advice from the West might actually help them? So arrogant. So pathetic.

[mike324]

reap what you sow...

They paid for and backed the staged chaos that sent tourists elsewhere for 6 months

They supported the general and his intervention

They have participated in their myopic political purge / "reforms"

Now they want the 'government' to 'do something'....

Please, give me a break... The Thai elites have been farming on the back of the poor people all these long decades, ignoring the rest of the country and their fellow Thais... They're still going about it with talk of "reforms" for the healthcare system, the privatizing public universities, cutting 10 billion from the budget and then adding 10 billion to the miltary's part, ...

yeah, the economy is in the dumpster and there are good reasons for it... Take your lumps chumps...

Don't think the export sector has anything to do with supporting the coup or tourism. Its just the bad world economy in general. If you are trying to link these two together, can you care to explain what policies cause the drop in exports?

As for the local consumption, this was mostly due to accumulated debt from previous government populist policies which made everyone go on a spending spree accumulating debt. When shit hits the fan, these folks can't keep up with the payment. Again, its the Thais own fault. Falling rice price and low rubber demand from China are the main points.

Yes I agree, government can't do much for these businesses, no need for intervention or setting up more committees that waste tax payers money. The only thing that I can see which would help boost domestic spending is to cut import taxes. I know cutting import taxes is unlikely, just saying - it would give Thais a higher standard of living being able to afford better quality goods.

[bamnutsak]

The only thing that I can see which would help boost domestic spending is to cut import taxes.

Meh, while this would potentially increase spending, a lot of that revenue would then be directed back out of the country.

Lowering the import duty on a Merc really won't help much, sure the sales rep. might get a commission, and the country's coffers will benefit, but the bulk of the spend will head back to Germany.

[Konaboy1]

will the general bring charges against Suthep?

could, for the Palm fraud-Airport etc.

lets wait and see-Thailand politics always take a turn.??