PM Prayut denies the government is broke

[jayboy]

1 hour ago, scorecard said:

 
Good point and in reality this has been the scenario in Thailand for decades.
 
Compare to Singapore; the ministers and all the high level permanent bureaucrats and recognised subject experts, highly insightful at the specific subject are and are people highly capable of thinking / re-thinking valuable policies and strategies, and with future vision.
 
An extremely low level of corruption in SIngapore is a big help.
 
Here in Thailand over the last 20 years (and more) how many ministers are / were subject experts? Close to none.
 
There are dozens of examples of ministers who have no alignment whatever - just one that quickly comes back in my memory - Health Minister Chalerm.
 
All the more reason for massive reforms. 

 

Don't find much to disagree with here but it's important to remember the standard of senior bureaucrats in the finance/economic planning ministries is generally extremely high.This to some extent counterbalances the unhelpful contributions of unqualified ministers.

 

Another issue is that in most countries ministers (at least initially) are not required to be experts.Expertise is hopefully vested with senior bureaucrats.A minister's role is to provide strategic leadership/control and represent the department externally.


Sent from my iPhone using Thaivisa Connect

 

Edited February 8, 2017 by jayboy

[Get Real]

2 hours ago, rkidlad said:

Good for you. 

 

I'm talking about foreigeners who'd like to start a business here with with 100% ownership and the not having to employ 4 locals for every foreigner working at the business, etc. 

 

I'm not taking about attracting tourists or people who work for international companies, etc. I'm talking about people who'd like to invest their cash and start a business here. After all isn't that what he meant by attracting 'foreign investment'. 

 

Or did he mean leave your money at the door and you're sure to see a return? You know - in a country that's just fallen down the corruption ranks. 

Oouch! Got it. Can´t do that if you don´t feel welcome.

[chiang mai]

1 hour ago, scorecard said:

 

Good point and in reality this has been the scenario in Thailand for decades.

 

Compare to Singapore; the ministers and all the high level permanent bureaucrats and recognised subject experts, highly insightful at the specific subject are and are people highly capable of thinking / re-thinking valuable policies and strategies, and with future vision.

 

An extremely low level of corruption in SIngapore is a big help.

 

Here in Thailand over the last 20 years (and more) how many ministers are / were subject experts? Close to none.

 

There are dozens of examples of ministers who have no alignment whatever - just one that quickly comes back in my memory - Health Minister Chalerm.

 

All the more reason for massive reforms. 

BOT Chair Tarisa was also very good and more than capable.

 

https://www.bot.or.th/English/AboutBOT/RolesAndHistory/Governor/Pages/Govtarisa_new.aspx

[Kasset Tak]

If Thailand has B 75 billion in the coffers and another $177 billion in reserves then there shouldn't be much of a problem at least compared to US that owe $19 trillion to debtors and has another $120 trillion deficiency with no financial backing, its just there... this is the problem with today's fiat currencies, they are only a paper printed with a number and no backing of any form of collateral!

[OldSiamHand]

8 minutes ago, Kasset Tak said:

If Thailand has B 75 billion in the coffers and another $177 billion in reserves then there shouldn't be much of a problem at least compared to US that owe $19 trillion to debtors and has another $120 trillion deficiency with no financial backing, its just there... this is the problem with today's fiat currencies, they are only a paper printed with a number and no backing of any form of collateral!

Maybe or maybe not, but just looking at the absolute numbers and not the "bigger picture" will get you nowhere.

 

Who is worse off?  Mr. A who has a $5 million debt and only $10,000 in his bank account, or Mr. B. who has a $100,000 debt and $50,000 in his bank account?  Answer depends on the "bigger picture".  If I told you Mr. A has an annual income of $5 million whereas Mr. B is unemployed and ineligible for govt freebies, would your answer change?

 

If you don't look at these bigger picture issues (not to mention having an understanding of the difference between cash in the treasury and foreign currency reserves with the central bank), you can't truthfully answer.  Then again, I don't think many posters care for the truth.  Instead, they see what they want to see in them to confirm their preconceived notions of reality or to satisfy their wishful thinking.  "I'm an old expat relying on a fixed income from the US so I want the baht to weaken.  Therefore whenever I see any news about Thailand's finances I'm gonna see it as negative for the Thai baht.  Another beer please." 

[Lupatria]

Nothing to worry here. If the government is broke, I guess some of the junta's big brass will help out with a high interest loan.

[Asiantravel]

I wonder if it's contagious?

 

China Jan FX reserves fall more than expected to $2.998 trillion, near 6-year low

 

http://www.cnbc.com/2017/02/07/china-jan-fx-reserves-fall-more-than-expected-to-2998-trillion-near-6-year-low.html

 

Malaysia’s Foreign Reserves Fall 14 Percent to Lowest Since 2011

 

https://www.bloomberg.com/news/articles/2015-01-08/malaysia-s-foreign-reserves-fall-14-percent-to-lowest-since-2011

 

Foreign Exchange Reserves Indonesia Fell in November 2016

 

http://www.indonesia-investments.com/news/todays-headlines/foreign-exchange-reserves-indonesia-fell-in-november-2016/item7425?

 

 

Edited February 8, 2017 by Asiantravel

[theoldgit]

Off topic post removed

[rkidlad]

1 hour ago, Get Real said:

Oouch! Got it. Can´t do that if you don´t feel welcome.

You can't do that if you're not allowed. Which was my whole point. 

 

"We want your money but we don't want you" seems to be their idea of 'foreign investment'. 

[tigermoth]

5 hours ago, ezzra said:

We're not broke, we just don't have money, so for anybody that is

the check is in the mail....

( a brand new Thai made Camry cost almost twice as much to buy

here than to buy the same car and with more accessories in Australia,  and , owing to huge taxes levied on cars here )

 

There are many products that are more expensive to buy here than in Australia. Wine is almost twice the cost, good beef and especially lamb is twice and more the cost for a couple of examples.

[chiang mai]

30 minutes ago, Asiantravel said:

I wonder if it's contagious?

 

China Jan FX reserves fall more than expected to $2.998 trillion, near 6-year low

 

http://www.cnbc.com/2017/02/07/china-jan-fx-reserves-fall-more-than-expected-to-2998-trillion-near-6-year-low.html

 

Malaysia’s Foreign Reserves Fall 14 Percent to Lowest Since 2011

 

https://www.bloomberg.com/news/articles/2015-01-08/malaysia-s-foreign-reserves-fall-14-percent-to-lowest-since-2011

 

Foreign Exchange Reserves Indonesia Fell in November 2016

 

http://www.indonesia-investments.com/news/todays-headlines/foreign-exchange-reserves-indonesia-fell-in-november-2016/item7425?

 

 

The story in the OP is mainly about Treasury Reserves rather than Foreign Currency Reserves although your point is a valid one nevertheless. Many countries in the region and further afield have been spending FCY Reserves to combat capital outflows whilst defending their currencies, mostly a function of the US Fed increasing interest rates and the flight to safety and higher yields.

[hugh2121]

 Thailand approves $1 billion in measures to help farmers in flood-hit south

 

That takes care of about THB 35billion then.

[chiang mai]

3 minutes ago, hugh2121 said:

 Thailand approves $1 billion in measures to help farmers in flood-hit south

 

That takes care of about THB 35billion then.

Exactly, the financing for that has to come from somewhere and it sure wasn't budgeted.

[Brer Fox]

3 hours ago, Alan Deer said:

Debt it self is not a problem - what could be a problem is if the national finances was managed by people who are not qualified to do so but got their jobs through graft nepotism etc...this inevitably leads to people in positions of high responsibility and power who simple aren't up to the job.

You raise a very valid point and I suspect military Generals are included in that category and they more than anyone are sure to be delusional enough to fancy themselves as economic wizards. It seems they figure that buying weaponry which is many associate with aggression will make foreign investors and people in general warm and friendly toward them. 

[retarius]

There is a huge amount of money spent in a short time. What has it been spent on? Has it all been accounted for? Is everybody happy that there has been no corruption involved?

[OldSiamHand]

7 minutes ago, retarius said:

There is a huge amount of money spent in a short time. What has it been spent on? Has it all been accounted for? Is everybody happy that there has been no corruption involved?

Not that huge, when you consider that the government spends hundreds of billions of baht every fiscal quarter.  Bigger picture people!  That's not to deny that there is corruption and poor spending choices, but the numbers alone don't tell such a story.

[khunpa]

Attracting Foreign Investment requires the investor to feel welcome and safe.

 

Thailand provides none of this and that is simply why foreign investment has dropped dramatically and will keep doing so.

 

Spending money will not promote Foreign Investment. Welcoming laws, low corruption and anti-racism will. 

 

Try to make a successful business here and show your white face at the revenue department. Then you will know what I mean.

 

 

 

 

 

Edited February 8, 2017 by khunpa

[Destiny1990]

So exactly how do they intend to get the foreign investors back?

[elgordo38]

7 hours ago, webfact said:

He assured that every government project is being carried out according to regulation and for public benefit

Thanks for the submarine we really needed that and the list of military purchases is endless. Once a soldier always a soldier.

[elgordo38]

1 hour ago, Asiantravel said:

I wonder if it's contagious?

 

China Jan FX reserves fall more than expected to $2.998 trillion, near 6-year low

 

http://www.cnbc.com/2017/02/07/china-jan-fx-reserves-fall-more-than-expected-to-2998-trillion-near-6-year-low.html

 

Malaysia’s Foreign Reserves Fall 14 Percent to Lowest Since 2011

 

https://www.bloomberg.com/news/articles/2015-01-08/malaysia-s-foreign-reserves-fall-14-percent-to-lowest-since-2011

 

Foreign Exchange Reserves Indonesia Fell in November 2016

 

http://www.indonesia-investments.com/news/todays-headlines/foreign-exchange-reserves-indonesia-fell-in-november-2016/item7425?

 

 

They are all in the same boat fighting a delaying financial action. 

[Brer Fox]

1 hour ago, chiang mai said:

Exactly, the financing for that has to come from somewhere and it sure wasn't budgeted.

Like the recent PM Prayuth version of rice subsidies which he gave himself immunity from. How many unbudgeted millions was that?

Edited February 8, 2017 by Brer Fox

[Get Real]

1 hour ago, rkidlad said:

You can't do that if you're not allowed. Which was my whole point. 

 

"We want your money but we don't want you" seems to be their idea of 'foreign investment'. 

No! There are many foreigners doing business in Thailand already, without any problem. The problem is just that you don´t like the rules, or just can´t measure up to them.
Out of dislike or problems to meet up to the rules, you then change this into that Thailand only want your money and not you. That´s just ain´t true.

[chiang mai]

42 minutes ago, Brer Fox said:

Like the recent PM Prayuth version of rice subsidies which he gave himself immunity from. How many unbudgeted millions was that?

The rice subsidies issue is very different from what's being discussed here, that was a project that was plain and simply not managed and everyone except the farmers were defrauding it, because it wasn't being managed.

Edited February 8, 2017 by chiang mai

[Destiny1990]

9 minutes ago, Get Real said:

No! There are many foreigners doing business in Thailand already, without any problem. The problem is just that you don´t like the rules, or just can´t measure up to them.
Out of dislike or problems to meet up to the rules, you then change this into that Thailand only want your money and not you. That´s just ain´t true.

Yes because the rules currently are unfair.who going to buy a house that u can only own for 30 years?who starts a company invest 100% of the money and owns it for just 49%?

[Brer Fox]

Just now, chiang mai said:

The rice subsidies issue is very different from what's being discussed here, that was a project that was plain and simply not managed and everyone except the farmers were defrauding it, because it wasn't being managed.

The Prayuth rice subsidy scheme (not the Yingluck rice subsidy scheme ) is exactly what is being discussed here. It is about money being spend which affects the current account deficit under the "management" of the junta military so-called economists. 

[chiang mai]

Just now, Brer Fox said:

The Prayuth rice subsidy scheme (not the Yingluck rice subsidy scheme ) is exactly what is being discussed here. It is about money being spend which affects the current account deficit under the "management" of the junta military so-called economists. 

I'm not up to speed on that one so I can't comment.

 

Do you understand what happens in most major countries around the world as governments change? What happens is that the permanent government infrastructure of that country, in the UK it's the Civil Service, remains in place and continues to business as usual. It's those people in those departments that do 98% of the day in day out work of government, the finance department, the tax department and so on. So calling the junta military a bunch of so-called economists is very silly because they are not intended to be economists, they are intended to lead.

[Brer Fox]

18 minutes ago, chiang mai said:

I'm not up to speed on that one so I can't comment.

 

Do you understand what happens in most major countries around the world as governments change? What happens is that the permanent government infrastructure of that country, in the UK it's the Civil Service, remains in place and continues to business as usual. It's those people in those departments that do 98% of the day in day out work of government, the finance department, the tax department and so on. So calling the junta military a bunch of so-called economists is very silly because they are not intended to be economists, they are intended to lead.

I suggest you are not up to speed on a number of things. You are entitled to believe what ever nonsense you like.

[rkidlad]

41 minutes ago, Get Real said:

No! There are many foreigners doing business in Thailand already, without any problem. The problem is just that you don´t like the rules, or just can´t measure up to them.
Out of dislike or problems to meet up to the rules, you then change this into that Thailand only want your money and not you. That´s just ain´t true.

This thread is about Thailand. This website is mostly about Thailand. Discussing the ease of business in Singapore or somewhere like Namibia, etc, doesn't address this thread. It doesn't help anyone who wants to do business here. It's meaningless digression. It's similar to if a bus crashes and then saying "Yea, but what about all the buses that don't crash? What about the all the buses that arrive safely?"

 

The man in charge said he wants to attract foreign investment. As a foreigner here, I gave some simple suggestions as to how that might be done. Thailand's rules are what they are. I can't change them, but I can certainly criticize them, hypocrisy and double standards. 

 

If you think the rules are fair, live safe in that knowledge and be happy. But I think you'll find many here in Thailand don't find them fair. Again, if you want foreign investment, simply make them fairer. If you want foreign investment but not foreigners, then say so. 

[bikerbri]

There was, at the start a kind of optimism, that after the coup things would get better and all corrupt practices of the past would be brought to an end, but it was short lived. People seem to forget that a country which thrived on the corruption which greased the wheels, needed something to replace it. The international investment companies are not interested in putting their money into military-run Governments and now the optimism has turned to disappointment. The people who put the regime into power are starting to realise that the utopian dream is becoming a nightmare.The junta resorts to so-called economic stimulus and is finding it doesn't make any difference. High-speed trains are on the way, so they say, but the company tasked with the job of running them is already in debt to the tune of billions of Baht and no one seems to know the purpose of the trains. Democracy may come, eventually, but can anyone tell me what new administration in its right mind would want to take on the looming disaster and take a chance that there won't be another coup around the corner?

[Jonmarleesco]

9 hours ago, webfact said:

PM denies the government is broke

Well, he would, wouldn't he?