Somkid outlines a bright future for Thai economy
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- Thailand is poised to soar in the global market with heightened investment attraction and a massive budget earmarked to rejuvenate the economy in the fourth quarter, as the Covid-19 pandemic eases, according to Deputy Prime Minister Somkid Jatusripitak.
- Mr Somkid says the government also plans to enhance financial cooperation with China and Hong Kong that will lead to business expansion in CLMV countries (Cambodia, Laos, Myanmar and Vietnam).
- Mr Somkid said the country needs to solve economic woes caused by the Covid-19 crisis and prepare the country for the post-pandemic recovery.
- The direction lies with sustaining the economy so it can progress through the invocation of executive decrees initiated by the Finance Ministry and the Bank of Thailand.
- One decree sponsored by the Finance Ministry involves the procurement of a one-trillion-baht loan to pay for public health defences against the pandemic and relief money to aid people who have been hit by the crisis.
“Thailand is poised to soar in the global market with heightened investment attraction and a massive budget earmarked to rejuvenate the economy in the fourth quarter, as the Covid-19 pandemic eases.”
Enthusiasm from Deputy Thai PM and finance tzar Somkid Jatusripitak speaking to Bangkok Post.
Mr Somkid believes the government also plans to enhance financial cooperation with China and Hong Kong that will lead to business expansion in neighbours Cambodia, Laos, Myanmar and Vietnam.
Mr Somkid said the country needs to solve economic woes caused by the Covid-19 crisis and prepare the country for the post-pandemic recovery.
“Some economic sectors, such as exports, will not contribute much to the economy this year.”
He has directed the Budget Bureau to find an additional fund of 200 billion baht to help the economy.The fund may also be utilised as a financial buffer, especially if there’s a resurgence of Covid-19 or when other funds for sustaining the economy fall short in the medium term into next year, when the public health problem is expected to subside.
“The 200-billion-baht fund is set aside from the current fiscal year budget. Of this, 80 billion baht is expected to be obtained for use starting next month.”
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But he admitted the investments may not be of significant help to the economy in 2020 because the “entire world is experiencing a downturn due to Covid-19”.
- Mr Somkid also maintains that Thailand has caught the attention of several countries looking to relocate their production in the wake of the pandemic, including China, Taiwan, Hong Kong and Japan. He says they are attracted by potential investments in food production, farm product processing and medical equipment manufacturing.
“Criteria has been recently tweaked to allow foreign investment projects valued at 100 million baht or less to be approved by an investment negotiation panel without having to be submitted to the BoI board. This will bring in more overseas investments.”
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Finally, the Finance Minister says the Stock Exchange of Thailand will kick off financial service cooperation previously reached with Hong Kong and the Chinese city of Shenzhen…
- “…with the joint listings on course to being clinched so shares can be traded in Thailand or in Cambodia, Laos, Myanmar and Vietnam, which are countries with robust growth of between 5-6% annually.
- SOURCE: Bangkok Post
