The Govt. plans a six-packed package to boost Thailand economy

The Thai government has issued a package of economic measures to cover up the blow on the economy of the country owing to the looming global financial crisis. The meeting was chaired by Prime Minister Somchai Wongsawat. Deputy Prime Minister Olarn Chaipravat said that essentially, six economic measures are to be implemented. The finance ministry has approved increasing the investment amount for retirement mutual funds and long term equity funds to Bt700,000 (RM71,919.875) from Bt500,000 (RM51,379.378), funding a Bt2 billion (about RM205.4 million) joint cooperation between the private sector and the Stock Exchange of Thailand (SET), establishing a Bt10billion (about RM1.03 billion) matching fund linking the SET and financial institutions, and encouraging major listed firms to buy back stocks amounting to Bt30 billion (about RM3.08 billion).

To ensure that businesses have enough revolving capital, the Bank of Thailand (BoT) will persuade commercial banks to extend a minimum loan of five per cent, equivalent to Bt400 billion, while state-run banks such as the Bank for Agriculture and Agricultural Cooperatives, and the Government Savings Bank would raise its lending amount to Bt1.15 trillion, up from Bt1.1 trillion earlier. (RM1 = Bt 9.75876)

The commerce ministry agreed to boost income from exports and tourism by at least 5 per cent or up Bt300 billion and Bt60 billion respectively. They also expressed their intentions to expand markets in Asia, the Middle East, Australia, Africa and Latin America.

Another measure to strengthen the Thai economy is to accelerate disbursement of government expenditures, which have been raised by Bt180 billion during the current 2009 fiscal year from the previous fiscal year. Additionally, speeding investment on the government-sponsored mega-projects, for which total investment has been raised to Bt350 billion from Bt250 billion, will help the economy.

The last measure would be to enlarge cooperation between the Association of Southeast Asian Nations (ASEAN) and other countries, including Australia, Brazil, Russia, India, China, Japan and South Korea.

If these measures are implemented, the Thai economy this year and in 2009 is likely to sustain growths by 5.1 and 4 per cent respectively.

With the lingering global financial crisis, which originated in the US, Siripol Yodmuangcharoen, Permanent Secretary for Commerce, said world trade in 2009 is projected to grow less than 6 per cent and in order to achieve export growths in terms of value by Bt300 billion and Bt600 billion in 2008 and 2009 respectively, his ministry would expand commercial attache offices to 66 from 60 presently. The commerce ministry will also cooperate with 44 honorary advisers to assist on trade and investment issues, said Siripol.