Thread: Thailand : 1.2 trillion baht to stimulate economy implemented

1.2 trillion baht to stimulate economy implemented
14 October 2008

The Government plans to inject about 1.2 trillion baht through six measures’ implementation to try to stimulate local economy, severely affected by prevailing Western financial crises, to grow 5.1% this year and four per cent in 2009. Deputy premier Dr. Olarn Chaipaavat betted his position with the stimulus measures, stressing he would quit if they failed to turn around Thai economy.

Mr. Somchai Wongsawat, Prime Minister, called an urgent economic ministers’ meeting on Monday (October 13) at Don Muang airport, the Government’s temporary office as the Government House has been seized by anti-government People’s Alliance for Democracy for almost two months.

The meeting, lasting for about three hours and also attended by chiefs of Bank of Thailand and Stock Exchange of Thailand, was aimed at seeking measures stimulating Thai economy severely affected by prevailing Western financial crises.

Dr. Olarn, Deputy Prime Minister overseeing economic portfolios and main architect for the economic stimulus measures, said after the meeting that the meeting adopted six measures preventing untowards impacts from Western financial crises.

The measures, he said, called for relevant government agencies to seek about 1.2 trillion baht from 2009 national budget for injection into local economy to stimulate Thai economy to grow at least 5.1% this year and four per cent in 2009.

“I will monitor relevant agencies’ performances monthly. If they fail to make the measures to yield good results, responsible parties must be located. As head of economic ministers’ team, I will immediately resign.

“I came here to work. If there are factors obstructing (my) works, (I) will have to go. Now, who is responsible for any matters, he has to work. The measures are aimed at building up (people’s) confidence towards economy. Whether they can build up political confidence, I don’t know,” said Dr. Olarn.

The six measures included:

1. Funds will be established shoring up good return and cheap Thai stocks. The fund will replace foreign investors’ funds which have so far this year been ploughed back to their countries amounting to about US$3.5 billion (around 110 billion baht).

The shoring up funds include : five matching funds amounting to two billion baht jointly established by local securities firms and the SET, matching funds amounting to 10 billion baht jointly set up by financial institutions and SET, funds buying back stocks amounting to 30 billion baht established by about 20-25 listed companies, and amplifying long term equity funds and retirement mutual funds from 500 billion baht to 700 billion baht.

2. Bank of Thailand (BOT) will ask financial institutions to extend new loans amounting a combined 400 billion baht, increasing about five per cent from now to general public. State-run financial institutions will also increase lending amounting to 50 billion baht, a five per cent increase.

BOT’s officials told the meeting that at the moment, the country possessed about one trillion baht financial liquidity. BOT was prepared to take care of financial liquidity to help expanding Thai economy.

3. Ministries of Commerce and Tourism and Sports will team up as “Team Thailand” to jointly host road shows to expand new export markets in the Middle East, Australia, Africa, and America.

Sufficient credits for exports and local market’s trade will also be provided. Loans for small and medium enterprises (SMEs) will also be provided especially for furniture products, and gems and jewelry. This measure is aimed at increasing the businesses’ revenues by additional 360 billion baht, including 300 billion baht more from exports in 2009 and 60 billion baht more from tourism. Ministry of Commerce’s officials told the meeting that income from exports in 2009 are expected to amount to 6.6 trillion baht, up a record 600 billion baht from this year. 4. Budget distribution process will be accelerated by relevant government agencies. The budget amounts to 180 billion baht in fiscal 2009. Special speeding up process should be done by first half of fiscal 2009 so as the money will be sufficiently distributed to general public at large.

5. Investment acceleration fro mega infrastructure projects will be done. An additional 100 billion baht to 350 billion baht will be spent, including additional 60 billion baht from sky train projects, 10 billion baht from nationwide logistics system, and 30 billion baht from PTT Plc’s energy project.

And 6. Thailand will Speed up consultation with other Asian nations to jointly establish Asian financial community so as to make Asia the world’s new financial centre in place of the US and Europe. China and Japan may have to play leading roles for the proposed the world’s new financial centre. Linkage of Thai economy in terms of trade and investment with other Asian nations’ will be set up.

thainews.prd.go.th

Deputy premier Dr. Olarn Chaipaavat betted his position with the stimulus measures, stressing he would quit if they failed to turn around Thai economy.

see ya ................

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When I first saw the headline I thought Mid had posted something from Not the Nation.

And 6. Thailand will Speed up consultation with other Asian nations to jointly establish Asian financial community so as to make Asia the world’s new financial centre in place of the US and Europe. China and Japan may have to play leading roles for the proposed the world’s new financial centre. Linkage of Thai economy in terms of trade and investment with other Asian nations’ will be set up.

f'n clowns , can't even keep the electricity on for 24 hrs straight here .

London must be shaking in it's boots ....................

Just seems they're digging a deeper hole with money they don't have...gonna be a lot more richer people than before, allegedly, with pots calling kettles black for yet another generation.

Originally Posted by Mid

And 6. Thailand will Speed up consultation with other Asian nations to jointly establish Asian financial community so as to make Asia the world’s new financial centre in place of the US and Europe. China and Japan may have to play leading roles for the proposed the world’s new financial centre. Linkage of Thai economy in terms of trade and investment with other Asian nations’ will be set up.

f'n clowns , can't even keep the electricity on for 24 hrs straight here .

London must be shaking in it's boots ....................

Its not such a bad idea, lets face the the facts. New York and Londons recent track record has removed 25 trillion dollars from stock values this year.