Thread: Thailand : Huge economic-stimulus package to be unveiled today

SRT : free trains but no money left to… pay wages in october

from Thailand Crisis by ThaiCrisis

Here is a perfect illustration of the total non sense of the gvt’s policies.
In july, the government decided, among a pack of tax cuts on fuels, to offer “free” rides on all trains (3rd class) for 6 months…
Nothing is free. People do not understand this very basic idea.
And SRT is not a regular… company. It’s a public black hole, with debts, poor infrastructures, trains from the past century, insanely over staffed, etc.
Anyway. A few weeks later… some ugly figures are coming out. The SRT won’t be able to pay salaries in october, unless the government provides a massive money injection (another one, after 4 billions) !

Employees of the State Railway of Thailand may not receive their salaries in October if the government does not speed up the allocation of an emergency liquidity injection of Bt4.2 billion this month.
“Our cash flow is enough to cover expenses for September,” said SRT chief financial officer Arak Ratboriharn. “If the government delays a decision on the emergency injection, we will have no money left for salary payments, starting in October.”
SRT has to pay Bt500 million to Bt600 million in salaries monthly. The agency hopes that the Cabinet will speed up its consideration of the emergency liquidity injection. The matter was submitted for Cabinet consideration two months ago, but so far the Cabinet has delayed making a decision.
Besides the emergency injection of Bt4.2 billion, SRT also requires the Cabinet’s approval to increase its overdraft loan limit by approximately Bt800 million.
The agency believes that the emergency funding as well as the overdraft increase would be enough to cover expenses in the 2008 fiscal year including employees’ salaries and interest expenses, said Arak.
Early this year, the Cabinet approved an injection of Bt4 billion for SRT. If the Cabinet approves the additional Bt4.2 billion, emergency funding this year will total more than Bt8 billion.
Arak said SRT faced losses due mainly to the increase in diesel prices, as the agency has not been able to adjust fares because that would affect the public. SRT expects to post losses of Bt9 billion this fiscal year, which will end in September.
SRT also provides a free rail service as one of the six government measures to help people cut living costs. However, the agency does not know how the government will subsidise the policy. SRT expects the government to pay the agency Bt40 million to Bt50 million per month. This service will not affect SRT’s liquidity, Arak said. (Nation)

^How does this fit with the Samak plan for high-speed trains?

Originally Posted by Mid

"The oil tax reduction benefits (no sector) but it will cost the government about Bt 40 billion. At the same time, the tax cut goes against the energy-saving campaign," he said.

There we have the 40 billion baht to make the BTS system debt-free.

The free buses are a joke. Poor thais will stand and watch a non-free bus go by to wait for a free bus. So the non-free buses are empty and the free buses are jam-packed, and lots of people get a less comfortable ride and get home later than previously.

Actually that's brilliant, everyone who can afford a bus ride will ride much more comfortable.

Originally Posted by Fabian

Actually that's brilliant, everyone who can afford a bus ride will ride much more comfortable.

FTI to submit 8 proposals stimulating Thai economy
03 October 2008

Mr. Santi Vilassakdanont, Trustee Chairman of the Federation of Thai Industries (FTI), will forward eight proposals helping to turn around Thai economy during the last quarter of this year to the Ministry of Finance this morning (October 3)

Meanwhile, Thailand's inflation rate in September eased for the second month to 6% as global oil price was on downtrend, according to Ministry of Commerce.

Mr. Santi Vilassakdanont, Trustee Chairman of the Federation of Thai Industries (FTI), a body grouping Thai private industries, President of Saha Pathana Inter-Holding Public Co., Ltd, Thailand’s consumer products' conglomerate, said on Thursday that FTI’s executive board would today (October 3) meet with and submit eight proposal to Minister of Finance, Mr. Suchart Thadathamrongvech, to help pushing Thai economy to turn around during the last quarter of this year.

The eight proposals include : 1. Four measures to be prepared for adverse impacts from prevailing US financial woes which has adversely affected the world’s economy, including the financial authorities’ monitoring and taking care of liquidity in the Thai financial market, financial authorities’ taking care of baht’s exchange rate to be coincident with neighbouring forex rates, either maintaining or adjusting local interest rates to play increased role to help stimulating Thai economy, and accelerating tax rebate procedures to indirectly boosting Thai exports.

Meanwhile, Thai Inflation soared to a 10-year-high of 9.2% in July prompting the Bank of Thailand to cut policy interest rates by 25 basis points to 3.75% in August which saw inflation up 6.4% on the previous year.

According to Ministry of Commerce, although the downtrend in oil prices had pushed consumer price inflation down again in September, the cost of food was up.

General food prices in September rose 15.7% from last year, due mainly to rising costs of rice, flour, fruit and vegetables.

"The decline of the inflation rate in September was due mainly to a decline in oil prices," said a Ministry of Commerce official.

Mr. Siripol Yodmaungcharoen, Permanent Secretary of Commerce, said on Wednesday Thailand’s inflation in the first nine months of the year averaged 6.5%, while fuel prices were at 30.9%.

Oil prices hit record highs of more than 147 dollars a barrel in July, but steadily went down and slid even further in late September as US lawmakers rejected a 700-billion-dollar rescue package for ailing American banks.

Ministry of Commerce forecast inflation in Thailand over the year at between 6.5% and 6.9%.

"As the oil price is tending to be significantly lower than the ministry's assumption, inflation this year shouldn't be at the high-end of the range," Mr. Siripol said.

Thai economy has been shaken by ongoing street protests by the People’s Alliance for Democracy and prevailing US financial crisis, with the Thai stock market falling nearly 30% since May.

thainews.prd.go.th


Mid : is over stimulation possible ? , or perhaps 'tis just dead ..............

.

Originally Posted by Mid

Thai Inflation soared to a 10-year-high of 9.2% in July prompting the Bank of Thailand to cut policy interest rates by 25 basis points

You dont control inflation by cutting interest rates, well, not in a normal country you dont.

Originally Posted by Mid

Poll: People satisfied with economic stimulus programme

(BangkokPost.com) - More than 60 percent of those questioned in a recent poll conducted by Suan Dusit Rajabhat University are satisfied with six government measures to solve economic crisis.

Of all six measures, respondents throughout the country are most happy with the postponement of the increase in price of LPG gas.

But those in Bangkok alone are happy with the cut in excise tax for fuel, according to the survey.

For those with income lower than 10,000 baht, they are most satisfied with the free buses for Bangkok residents and free third-class train travel.

The government announced six measures early this week to help low-income people, at a cost of 47.4 billion baht. All effective from Aug 1 to Jan 31 except the fuel tax cut, which starts July 25.

bangkokpost.com

LPG

Thailand raises LPG price by Bt6 per kg
Thu, November 13, 2008 : Last updated 18:23 hours

Liquefied petroleum gas price for transport and industrial use will be increased Bt6 per kg, or 33 per cent, within three months from November, according to the National Energy Policy Committee.

The price would be raised Bt2 a month until it reaches Bt24.13 per kg.
Energy Minister Wannarat Charn-nukul said yesterday that next week it would be known the date when the price increase would take effect.

nationmultimedia.com

Another good idea, wait until everyone (or at least every taxi driver) switched to gas and then rise the price by 33%

THANKS, BUT NO THANKS. I'M WAITING FOR THE REVOLUTION....

LPG

Taxi drivers petition LPG price hike
Wed, November 19, 2008 : Last updated 15:32 hours

Siam Taxi Co-operative Ltd Chairman Vitoon Naewpanich and about 10 representatives of taxi clubs on Wednesday submitted a petition to Prime Minister Somchai Wongsawat, asking for the suspension of a hike in the liquefied petroleum gas (LPG) price.

snip

nationmultimedia.com


https://teakdoor.com/business-finance...tml#post839637 (Thailand Posts Biggest Trade Deficit in Three Months)

appoligies for the double post ,

should of gone in here and went there instead

Thailand delays LPG price rise after PM quits

BANGKOK, Dec 3 (Reuters) - Thailand has postponed a plan to raise the priceof liquefied petroleum gas (LPG) used in cars and industry after Prime MinisterSomchai Wongsawat was forced to step down, a minister said.

"We have to wait for the new prime minister to sign for final approval.It will depend on how long it takes for the new cabinet to be formed,"
EnergyMinister Wannarat Charnnukul told reporters on Wednesday.

Somchai was banned from politics for five years on Tuesday and his partydisbanded for electoral fraud. Coalition party members will switch to new"shell" parties and vote for a new prime minister on Dec. 8.

The government had planned to gradually raise LPG prices by a total of 6baht ($0.17) per kg, or 33 percent, in increments of 2 baht per month to bringit more into line with actual costs and reduce state subsidies. For now, the planned rise excludes LPG used in households andpetrochemical plants.

The LPG price is currently fixed at 18.13 baht per kg, but the governmentbegan moving towards a floating price regime in July in order to reduce costlysubsidies. Subsidies have been in place for years and were originally intended tohelp households and food vendors who use cooking gas.

The subsidy bill has risen as motorists have switched to the fuel. LPG is commonly used in Thai households as a fuel for cooking and forheating water and is sold to them in kgs, while LPG for vehicles is sold inlitres. Today's LPG pump price is over 11 baht per litre. Households account for 46 percent of total consumption, petrochemicalproducers 20 percent, industrial users 15 percent and cars 19 percent.

($1 = 35.45 Baht) (Reporting by Khettiya Jittapong; Editing by Alan Raybould)

orange.advfn.com

FTI backs relief measures
6/06/2009

Santi Vilassakdanont, chairman of the Federation of Thai Industries (FTI), said he agreed with the government’s plan to extend term of its “5 measures, 6 months” relief scheme as it will help ease expense burden of people at a time of economic slowdown.

The government had earlier considered to extend term of the relief scheme to help low income people for another six months. The measures include free riding of trains and busses, free using electricity and tapped water and stabilizing price of cooking gas. These measures started on February 1 and will end on July 31.

Meanwhile, Kirida Phaophichit, a senior economist at the World Bank’s Bangkok office, said the government should consider its financial status prior to make decision on whether or not to extend timeframe of the relief measures. Ms Kirida suggested that in the long term, the government should allow price of cooking gas to move in line with market mechanism.

Thanawat Polwichai, director of the Economic and Business Forecasting Center at the University of Thai Chamber of Commerce, took the same tone. Dr Thanawat said he supported the idea to extend term of the five relief measures as the economy has not yet picked up. However, he cautioned that the measures could encourage people to refrain from saving money and thus they should be revoked immediately after the economy improves.

The director also agreed that the government should stop stabilizing price of cooking gas as it has to spend more than one billion baht a month to subsidize the cooking gas’ price.

bangkokpost.com

Thai Cabinet extends free train, bus services



BANGKOK, May 1 -- The Cabinet on Tuesday extended free third-class train and non-air conditioned bus services to the low-income Thai public for another five months to help reduce their cost of living, and Prime Minister Yingluck Shinawatra convened a meeting with economic ministers and other relevant agencies to deal with the rising cost of living and ongoing inflation.

Deputy Transport Minister Chatt Kuldiloke said that free rides on third-class trains and regular (non air-con) buses will last through Sept 30. The free transport measures ended April 30.

To continue helping low-income earners, the free ride will cost the government some Bt1.66 billion as compensation for Bangkok Mass Transit Authority (BMTA) and State Railway of Thailand (SRT).

The measures began in 2008 during the administration of the late former prime minister Samak Sundaravej to assist low-income earners.

Under the free transport measures, the BMTA will provide 800 buses per day for free rides while the SRT will run 164 rail trips daily.

Meanwhile, Ms Yingluck convened a meeting with economic ministers and other relevant agencies in the afternoon to review the economic situation and handle the rising cost of living, which has been affected the consumers.

The meeting was attended by Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong, Commerce Minister Boonsong Teriyapirom, PM's Office Minister Niwatthamrong Bunsongphaisan, National Economic and Social Development Board (NESDB) Secretary-General Arkom Termpitayapaisit and Bank of Thailand Governor Prasarn Trairatvorakul.

The premier assigned Mr Kittiratt and Mr Boonsong to seek solutions to deal with rising prices of household and other consumer products.

She also called for related agencies to reduce inflation attributed to increasing energy prices as an urgent issue and mapping out measures to resolve problems and assist consumers.

Regarding Thailand’s inflation, Permanent Secretary for Commerce Yanyong Puangrach on Tuesday announced that Thai inflation rose in April by 2.47 per cent year-on-year, the lowest level in 29 months. He projected that overall 2012 inflation would grow within a range of 3.9 per cent.

mcot.net