How Thailand plans to jump-start its economy

[webfact]

How Thailand Plans to Jump-Start Its Economy
By JAMES HOOKWAY
THE WALL STREET JOURNAL

Somkid Jatusripitak, Thailand’s new economics czar, is trying to turn around one of Asia’s worst performers

BANGKOK—Asia’s economies looked to consumers to spend their way out of a rut in the 1990s. Many cut lending rates to encourage them to start spending again after 2008’s global slump.

Now Thailand’s new economics czar, Somkid Jatusripitak, is trying to turn around one of the region’s worst performers, offering some 136 billion baht ($3.7 billion) in interest-free loans and cash injections to help reinvigorate small businesses in the country’s rural heartland. At the same time, he is offering a series of tax waivers and other incentives to lure high-end manufacturers to the country and persuade those already here to stay.

It won’t be easy to get Thailand moving again, though, or the rest of Asia, for that matter.

“The problems are very different from before. In the 1990s it was the rich who were affected after the baht was floated,” Mr. Somkid said, referring to the continentwide currency crisis that spread out from Thailand.

Full story: http://www.wsj.com/articles/how-thailand-plans-to-jump-start-its-economy-1443759023

-- THE WALL STREET JOURNAL 2015-10-02

[bamnutsak]

Just push the jalopy down the hill, pop the clutch, and, oops, watch out for the cliff....crash/burn.

[cloudhopper]

In other words they're going to print money and make loans they know will never be repaid, like all the other countries are trying. It won't work here either.

[khwaibah]

Keep up the excellent work Thailand USD for TT @ 36.52.

[Oziex1]

Just push the jalopy down the hill, pop the clutch, and, oops, watch out for the cliff....crash/burn.

You say if the economy doesn't recover it is because, "the brakes failed!"

[Muirton]

There's a snag to this "plan". The cable-jumpers are being used down at the police station.

[slapout]

And here I thought the plan was to build new entertainment ???? centers paid for by upstanding Thai citizens with monies which have been acquired in some questionable ways and cannot be moved out of the country via legel methods.

[Sam Jones]

Just push the jalopy down the hill, pop the clutch, and, oops, watch out for the cliff....crash/burn.

You say if the economy doesn't recover it is because, "the brakes failed!"

and the Economics Czar fleed the scene ....

[yellowboat]

It is an open economy with "Thai Characteristics" and it is not working all that well. Little innovation takes place compared to most places in Asia. Thailand is just not competitive .

[Shiver]

Just push the jalopy down the hill, pop the clutch, and, oops, watch out for the cliff....crash/burn.

You say if the economy doesn't recover it is because, "the brakes failed!"

"I believe I can fly...."

...but learn to fly like ducks do - from the ground, not the top of the cliff/condo.

[jadee]

In other words they're going to print money and make loans they know will never be repaid, like all the other countries are trying. It won't work here either.

If the baht weakens, tourist numbers may increase and the economy may improve. Long-term though you're right that printing money isn't a sound fiscal solution.

[thhMan]

Why dont they get educated politicians in seats of power.... ?

[djjamie]

Why dont they get educated politicians in seats of power.... ?

I am on your side mate. Prayut is trying.

That is why reform is needed.

Edited October 2, 2015 by djjamie

[khunsiam]

Why dont they get educated politicians in seats of power.... ?

Somkid is educated, the junta isn't.

Prayuth's speech at the UN was in Thai, his audience at the UN...notice most of the seats were empty:

[Nowisee]

Sometimes, the playground is just too sophisticated for the kids on the other side of the tracks.

This is the result of biting the hand that feeds you.

I'll sit back and watch the show.

[MZurf]

Why dont they get educated politicians in seats of power.... ?

I am on your side mate. Prayut is trying.

That is why reform is needed.

Yes, he's trying so, so hard, as is evident from his wise decision to have a single gateway for all Internet traffic to and from Thailand. Truly a visionary!

[Muirton]

Why dont they get educated politicians in seats of power.... ?

Somkid is educated, the junta isn't.

Prayuth's speech at the UN was in Thai, his audience at the UN...notice most of the seats were empty:

About 3/4 empty, yes? Last night's yak at 8:15 was all about the triumphs at the UN -- which couldn't go past 23 thin minutes, the jewel event being a HappySnappy with Moon. The days of monopolizing the telly for over an hour are long gone.

[Expat1]

I wish them luck as they are going to need it especially with 2016 coming up and AEC is to open. I quote from the ASEAN Economic Blueprint , A. Single Market and Production Base, 9. An ASEAN single market and production base shall comprise five core elements: (i) free flow of goods; (ii) free flow of services; (iii) free flow of investment; (iv) freer flow of capital; and (v) free flow of skilled labour.... signed by General Surayud Chulanont for the Kingdom of Thailand That is fairly self explanatory. Thailand is about to have some real economic issues to deal with and they aren't doing much about it. At least it is not obvious to business observers.

Our company, which is very high tech and green product made in a robotized mfr facility, has been discussing with them for a while about placing a facility here and the terms they offer are less than exciting when compared to their ASEAN neighbors. They still have a mentally of it is the 1980's and everyone needs to come here for cheap labor. Well, the labor is no longer cheap but more than that the skill and english levels have not risen with wages. The Thais can do skilled work but there are far too few that have the education and those that do have the education and skills want to leave and go to other countries for better jobs and salaries. If the govt wants high tech firm to come here and stay they are going to need more than loans and fiscal incentives they need to buckle down to the task of proper education and training of their workers and upgrading their English levels (which most technical manuals are written in).

[Artisi]

Doubt that Thailand could jump-start a 125cc motorcycle yet alone Thailand's economy, no real governance, no long term direction, the majority more interested in self than the countries welfare, major corruption on every project undertake with shoddy or useless materials / methods.

Such a crying shame ​as this country has so much to offer but is completely screwed due to complete and utter ongoing mismanagement.

[metisdead]

Off topic posts about the USA budget deficit have been removed. Topic is about jump starting Thailand's economy.