PM Prayut Chan-o-cha will unveil his new government’s policy statement in Parliament when it sits formally on Thursday.

Leaks to the media indicate his 12 ‘urgent’ and 12 ‘long-term’ policies will help Thailand step up to “developed-nation status” with many of the policies focussing on the Eastern Economic Corridor project.

Among the urgent policies, the sixth calls for a “future-proof” economic system by promoting target industries and developing he bio-economy, circular economy and green economy.

Meanwhile, the fifth long-term policy dictates the development of Thailand’s economy and competitive ability by using technological advancement and innovations, along with creating added value to industrial, agricultural and cultural products and services of communities using local resources and biodiversity.

The EEC project will also be tapped as a channel to distribute development opportunities to the regional level, to help reduce economic disparity and he rural-urban gap. The government is aiming to build urban communities that are modern, high-tech oriented, self-reliant and capable of becoming an economic hub in Asia through the EEC initiative, according to the policy statement.

The president of the Federation of Thai Industries, Suphan Mongkholsuthee, says the private sector wants to see the government actually carry out the policies they will announce to Parliament, especially those related to promoting target industries and the EEC.

“The government should focus on pushing the investment in mega projects’ infrastructure in EEC areas and deliver tangible results as soon as possible. Only then we can create confidence among domestic and foreign corporations to invest in high-technology industries, enhancing Thailand’s manufacturing capability in the long run.”

SOURCE: The Nation

Fitch Ratings has revised its outlook on Thailand’s Long-Term Foreign Currency Issuer Default Rating to “positive” from “stable” and upgraded the rating to BBB+.

The revision reflects increasing international economic confidence that lingering political risks are unlikely to derail “sound macroeconomic management”, according to the international credit rating agency, Fitch.

“This is demonstrated by the sustained strength of external and public finances over the past several years, which has resulted in greater resilience to macroeconomic and financial shocks.”

“A major political hurdle has been passed with the formation of a new civilian-led government following elections in March. Nevertheless, a degree of political uncertainty remains in the context of the stability of the new coalition government.”

The Thai baht has been one of the strongest performing emerging-market currencies against the US dollar throughout 2019, appreciating by over 4.5% as equity and debt inflows have increased, particularly during June.

Fitch expects the current account surplus to remain high relative to peers at 5.6% of GDP in 2019 and 4.9 per cent in 2020, “supported by tourism inflows and a goods surplus, despite slowing exports”.

Fitch forecasts growth to slow, as with other trade-dependent countries in the south east asian region. It expects Thailand’s GDP growth to ease to 3.3% in 2019 from 4.1% last year.

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Economists are forecasting that Thailand’s exports will drop by up to 3.1% for 2019 after June figures fell when compared to the same period last year.

After the Commerce Ministry reported a 2.1% fall in June, the SCB Economic Intelligence Centre projected the country’s exports will drop this year by between 1.6-3.1%.

“Although the US-China trade meeting after the G20 summit in Japan last month was a positive sign, we have to wait for the outcome because both countries are still negotiating for a deal. This ongoing process is still impacting the global economy and Thailand’s export value.”

The ongoing uncertainty comes after Thailand’s exports dropped 4.4% in the first half of the year.

The EIC maintained its forecast of Thailand’s economy growth at 3.1 per cent in this year, driven by domestic consumption and government infrastructure and stimulus spending.

Meanwhile, Kasikorn Research Centre forecast Thai exports to recover in the second half, to remain at the same level as last year, amid positive outcomes in the trade war.

SOURCE: The Nation