Thread: Finance minister confident economy to grow 6% this year

Finance minister confident economy to grow 6% this year

BANGKOK, Feb 26 (TNA) – Deputy Prime Minister and Finance Minister Surapong Suebwonglee on Tuesday expressed confidence the combined economic stimulus package and mega-project investments of the new government would help boost the country's economic growth to 6 per cent for this year.

He said the upward revision of the economic growth projection for this year by the National Economic and Social Development Board (NESDB) to 4.5-5.5 per cent from the 4-5 per cent projected earlier had not included the implementation of the planned mega-projects in its estimate.

Should the mega-projects get off the ground, large amounts of money would flow into the economic system later this year and early next year.

This positive factor, coupled with the expected recovery of public consumption, would make the economy this year grow as much as 6 per cent, he said.

To ensure continued economic growth and ease public hardship, Dr. Surapong said the government had completely prepared the framework of its economic stimulus package.

More than 10 measures will be effected within six months to one year to stimulate the economy.

Included are savings in the insurance system, a property stimulus package, and tax incentives for investment.

The measures willd be submitted to the cabinet for consideration next week.

He affirmed the stimulus measures would be taken in a short run by taking into account the fiscal and monetary disciplines.

Mr. Surapong believed revenue lost from the implementation of tax measures would be brought back indirectly to stimulate the economy.
With these measures, he was confident that consumption and investment will begin to recover. (TNA) – E005

enews.mcot.net


be interesting to revisit this thread later in the year ..................

Originally Posted by Mid

Finance minister confident economy to grow 6% this year

...And I am confident that my fattened pigs will fly this year. Now how do you fit those ACME wings again...?

Wonder how many workers from neighboring countries they will have to import to do the job?

Finance Ministry to issue more stimulus measures

BANGKOK, March 4 (TNA) – Thailand's Cabinet on Tuesday approved an economic stimulus package proposed by Deputy Prime Minister and Finance Minister Surapong Suebwonglee who said that the ministry will present additional economic stimulus measures to benefit tax collection schemes later this month.

He said the economic stimulus package approved by the cabinet involves tax measures aimed at helping low-income people, boosting savings, and reducing spending.

Many people were reluctant to spend and invest because they were uncertain about the economy and future incomes.

Mr. Surapong said he believed the tax measures, when implemented, would help boost confidence in spending and investment.

Tax money lost would be brought back indirectly in the form of the value-added tax in the next one to two years. It would enable the government to prepare a balanced budget within the next three or four years.

“Beside the tax measures, the ministry will issue additional economic stimulus schemes such as investment promotion and provision of soft loans,"he said. "It still focuses on helping low- and medium-income people because they are considered a key force to driving economic growth,” he said.

Among the tax measures submitted to the cabinet for consideration this afternoon is an exemption of personal income tax for people whose monthly salary is below 20,000 baht, an increase in personal spending, tax assistance for community enterprises, corporate tax exemptions for a certain amount of profits earned by small- and medium-size enterprises, extension of tax benefits for listed companies, extension of the current VAT rate. (TNA) – E005

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Details of tax package
Tue, March 4, 2008


Following are details of the tax stimulus package


Corporate

- Corporate income tax cut for newly listed companies in the Stock Exchange of Thailand (SET) from 30% to 25% for three accounting years

- Corporate income tax cut for newly listed companies in the Market for Alternative Investment (MAI) from 30% to 20% for three accounting years

- Corporate income tax cut for existing companies in the SET from 30% to 25% for profit below Bt300 million for three accounting years

- Corporate income tax cut for existing companies in the MAI from 30% to 25% for profit below Bt300 million for three accounting years

-Tax allowance for energy-saving machinery, equipment and installation at 1.25% of costs

-Depreciation allowance for machinery and equipment related to productions and services at 40% of costs on the delivery date

-Depreciation allowance for computer programs within three accounting years

Individuals

-Higher taxable income waive from Bt100,000 to Bt150,000

-Higher tax allowance for life insurance premium from Bt50,000 to Bt100,000

-Higher tax allowance for Retirement Mutual Fund (RMF) plus provident fund or pension fund contribution is raised from Bt300,000 to Bt500,000

-Higher tax allowance for Long Term Equity Fund (LTF) from Bt300,000 to Bt500,000

-Higher allowance for child, adopted child, spouse, and parents who are disable persons to Bt30,000

Property

-Cut the special business tax to 0.1% from 3%

-Cut transfer fee to 0.01% from 2%

SMEs

- Personal income tax waive for taxable income less than Bt1.2 million

-Corporate income tax waive for net profit below Bt150,000

The Nation
nationmultimedia.com

-Depreciation allowance for computer programs within three accounting years

Do you even get a receipt at MBK? That would be 33.3% depreciation on 100baht per annum for many companies here. Nice.

Odd, but as an economist I would have thought that stimulus packages that are solely funded by tax revenue would not necessarily lead to growth as he explains it . . . but what do I know . . . I'm not Thai

Originally Posted by Mid

-Cut the special business tax to 0.1% from 3%

-Cut transfer fee to 0.01% from 2%

That should solve the property slow down

Originally Posted by panama hat

Odd, but as an economist I would have thought that stimulus packages that are solely funded by tax revenue would not necessarily lead to growth as he explains it . . . but what do I know . . . I'm not Thai

I was thinking something along those lines too, their announcement contradicts some of the objectives they are trying to accomplish. Are they looking for more inflation ?

Finance Ministry revises estimated 2008 economic growth

BANGKOK, March 24 (TNA) – The Finance Ministry will revise Thailand's economic growth estimate for this year in response to new economic developments both locally and internationally, according to the Fiscal Policy Office (FPO).

Ekniti Nitithanprapas, director of the FPO's Macro-economy Analysis Group, said the ministry's Economic Policy Committee will meet on Wednesday (March 26) with representatives of the Thai Chamber of Commerce, the Federation of Thai Industries, the Bank of Thailand, and commercial banks to jointly assess the overall picture of the economy.

The move is aimed at revising Thailand's national economic growth projection for this year from the 4.5-5.5 per cent level expected earlier.

Mr. Ekniti said a revision of the economic growth estimate must be made because the latest economic data had not yet been included the government's new economic stimulus package, planned investment in mega-projects, surging oil prices and global economic slowdown. (TNA)-E005

enews.mcot.net

I wrote a paper on the government's planned investment in mega-projects - in 2005.

The fact is, the government has no idea how it is going to finance its proposed investment in mega projects, and with the world markets they way they are at the moment, I doubt that has changed significantly.

The fact is, the government has no idea how it is going to finance its proposed investment in mega projects, and with the world markets they way they are at the moment, I doubt that has changed significantly.

agreed , there was one story a while back asking the who's going to pay question , purported to be from grass roots orgs , never got much traction .

no mention of whether the revision will be up or down , though as seen in this thread the OP has the Minister @ 6% and the latest news clipping has the Dept at 4-4.5 % .

all to be revealed on Wednesday ??

Property stimulus scheme to help boost GDP growth



BANGKOK, March 26 (TNA) – Deputy Prime Minister and Finance Minister Surapong Suebwonglee on Thursday said measures issued to stimulate the property business would help increase the gross domestic product (GDP) growth this year to 6.5-6.7 per cent from 6.2 per cent estimated earlier.

Delivering a keynote speech at a seminar on “Property: Main Economic Indicator for 2008,” he said the government issued easing tax measures including a reduction of ownership transfer and mortgage fees to boost people’s purchasing power early this month.

It is expected the measures would be published in the Royal Gazette soon.

In addition, the Government Housings Bank had been asked to study and work out a plan to help people with a monthly income of no more than 15,000 baht (US$475) to afford a purchase of houses.

Dr. Surapong said he was confident the measures to stimulate the property and construction industries would help enhance the economic growth by 0.2-0.3 per cent or make the GDP grow 6.5-6.7 per cent this year instead of 6.2 per cent estimated earlier.

It would also boost the recovery of supporting industries including advertisement and construction contractor.

In addition, he said, the government had considered more measures to help stimulate the property sector, which is a key to boosting the country’s economy.

The measures, if concluded, would be submitted to the cabinet for consideration in due course, he added. (TNA) – E005

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Thailand's FPO looks to higher economic growth for 2008



BANGKOK, March 27 (TNA) – Thailand's Fiscal Policy Office has revised its economic growth estimate for this year upward to 5.6 per cent from 5 per cent projected earlier, citing improved local consumption and private spending.

FPO's Director-General Pannee Sathavarodom said the country's economy this year is expected to expand 5.6 per cent against 4.8 per cent last year and 5 per cent estimated earlier.

The economy is likely to grow in a more balanced manner since local consumption and private spending have picked up, the FPO projects.

It is projected that private consumption this year will grow 4 per cent -- a significant compared with 1.4 per cent in 2007 because the real incomes of the other than public sector employees, civil group are forecast to increase due to higher incomes of farmers and an increase in government officials' salaries and minimum wages.

Simultaneously, the government's tax measures issued to stimulate the economy would contribute to an increase in people's incomes.

Private investment is anticipated to surge 9.7 per cent this year from last year's very low level of 0.5 per cent.

She said the government's efforts to accelerate budget disbursements under its plan to run a budget deficit of 1.8 per cent of the gross domestic product (GDP) in fiscal 2008 and a deficit 2.5 per cent of GDP in fiscal 2009 would increase the local spending and encourage the private investment.

She said the country's export growth is forecast to decline to 6.9 per cent compared with 7.1 per cent in 2007 since the global economy had experienced risks from the economic slowdown in the United States.

The imports and services are projected to increase thanks to the recovery of the local demand.

Thailand's inflation rate is likely to edge up to 4.5 per cent since global crude and commodity prices are expected to continue growing.

It is forecast the current account balance surplus will fall this year due to the expected slowdown in exports.

But the value of imports is expected to accelerate in tandem with improved local spending and the baht is likely to hover around 31.5 to the dollar. (TNA)-E005

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Originally Posted by William

The fact is, the government has no idea how it is going to finance its proposed investment in mega projects

I'm pretty sure I saw an interview on Bloomberg tv the other day with this finance minister named above, he claimed that they have access to funds borrowed from overseas to commence the projects. Sorry no link to this to back this up though..

also no links to back up ,

however my feelings are that the Thai's have announced the loans from Japan as a done deal locally whilst there's still on going discussions internationally .

happens enough to notice that the same story in the domestic media ain't what's being reported internationally .

Originally Posted by Spin

Originally Posted by William

The fact is, the government has no idea how it is going to finance its proposed investment in mega projects

I'm pretty sure I saw an interview on Bloomberg tv the other day with this finance minister named above, he claimed that they have access to funds borrowed from overseas to commence the projects. Sorry no link to this to back this up though..

Mate if it is the JBIC loan you are talking about, JBIC has always said that it would help fund [I think] the purple line extension to the metro - or whatever it is called.

It's one train line of about 7kms. A big project - yes.

A whole mega project - no.

I was speaking with a friend of mine from ADB the other day. ADB were, and I believe still are, interested in helping to finance another of the track extensions - could be MRT though. He tells me all the Thais wanted to talk about was how much ADB were interested in lending for the research/development of a nuclear power plant, even though this was not on the meeting agenda.

Anyone looking at the development of mega-projects in Thailand need only look at the previous track-record:

* Hopwell was talked about for circa. 20 years
* new airport was "new" - in design and all - 40 years ago

I mean, the second job I worked on in Thailand was the privatisation of EGAT - 12/13 years ago.

Originally Posted by John

Cannot help but I have more trust in ANY Thai government to boost the economy than in the one of the US. Just look how they manage the Baht - great job! And if I look at the US candidates for the next president my feeling does not change

Take Pattaya - a (somehow) great city coming out of nothing in such a short time. Look at Bangkok - booming.

When I was in the US a couple of months ago I saw a joke in a newspaper there. Osama says to his friends that they should bomb some infrastructure in the US before it collapses anyway. Very often I could not use my cell phone over there - no network and so many other problems I do not have to care about here. My brother living close to NY needs his own well and often his power generator and so on. The street lamps switch off at 8 in the evening. Why do they switch them on???

I think the Thais to a great job even if they still have to learn and improve some things.

Odd that I never experienced your problems in the US, but have since moving to the LOS.

Oh dear, John. You can't see the forest for the trees, it seems.

Finance minister concedes economy may not grow as targeted
BANGKOK, June 23

(TNA) – Finance and Deputy Prime Minister Surapong Suebwonglee on Monday conceded the country's economy this year might not grow 6 per cent as previously targeted since it had been pressed by Thailand's ongoing political turmoil.

"We admit we were optimistic in early May that our economy should grow at that rate despite the political problems and surging fuel prices, but now that the political tensions have not yet eased while the oil prices continue to grow unabated and tourism begins to take a toll from the situation," he said.

Earlier, the minister forecast the Thai economy would expand up to 6 per cent since the government had come up with various measures to stimulate the economy.

He said the government had accelerated implementing the measures sooner than scheduled in order to safeguard the economy from being adversely affected by surging oil prices and political disturbances.

He hoped the political situation and oil price crisis would eventually ease.

Dr. Surapong said he was confident of clearing all doubts cast by the opposition party in the parliament, particularly on economic issues.

He added that the economy managed to grow for the time being because of the implementation of the Finance Ministry's economic stimulus package.

"The economy continues to expand for now because we have carried out all measures, including tax incentives and budget distribution, to stimulate it," he said.

Last week, the opposition Democrat Party filed a no-confidence motion against Prime Minister Samak Sundaravej and seven cabinet members including the finance minister.

The censure debate will take place Tuesday and Wednesday June 24-25. (TNA)

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those surprised please take one step forward ...............


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Economy likely to grow 4% if global oil prices continue to rise: TDRI

BANGKOK, June 23 (TNA) – The Thai economy is expected to grow around 4 per cent this year, not 6 per cent as targeted by the government, if global oil prices continue increasing, according to the Thailand Development Research Institute.

Somchai Chitsuchon, TDRI research director for the overall economy and income distribution, said should oil prices change and drop, the economy is likely to expand 5 per cent.

But what should be of concern now is accelerated inflation in the next three to four months due to a further increase in product and fuel prices.

He said the economy would not be affected if an inflation rate stayed at around 5 to 6 per cent.

Mr. Somchai warned the government not to accelerate economic growth nor inject money into the grass-roots level to overstimulate the public's purchasing power because it could fuel inflation.

Now, he said, inflation in the rural had areas increased to 13 per cent from 7.4 per cent four months ago.

Should the government attempt to boost consumer purchasing power too greatly, inflation in the areas might surge to 20 per cent.

He said the government's efforts to inject money to help ease living costs of poor people are considered good policy, but the money must be distributed in a form of coupons, not cash, to the real poor.

Otherwise, it would fuel the current inflation trend.

"The government should not build a demand pool nor inject money to boost consumer purchasing power too much because it may push up the country's inflation rate to stay close to 25 per cent, the rate Vietnam is now experiencing.

"Now, the actual interest rate is in a negative territory. Should inflation go up considerably, labourers may need to seek a further increase in wages.

Likewise with producers, who want to raise product prices. If the costs of everything are high, the economy will further slow down," said Mr. Somchai.

The TDRI executive said he agreed with a possible policy interest rate hike by the Bank of Thailand, but warned the adjustment must be made gradually to prevent repercussions in the overall economy. (TNA)

enews.mcot.net

Originally Posted by William

I mean, the second job I worked on in Thailand was the privatisation of EGAT - 12/13 years ago.

It is still not privatized yet, right?

^the best I know - no

^^Come on, these things take time. It took 40 years to decide to build an airport on a swamp...

What, What, What and What.

The country is in deep shit and debating and percentages claims of improvement will not produce a solution.

The cnuts at the top need to make practical and shrewd decisions and to firstly concentrate and to ride through the inflation crisis we have on our doorsteps at this time.

Fcuk them and when they get on their soap box and announce a 6% improvement in whatever. People on the streets are hurting at the moment and the first thing they should do is to sort themselves out first.

End all this bullshit rooster strutting in Bangkok and get on with their job and to solve the problems that are right there and under their noses!.

God help this country.