Thailand has been picked as the host of the 21st World Economic Forum on East Asia which will be held next year. Thai Prime Minister Abhisit Vejjajiva on Monday took part in the 20th World Economic Forum on East Asia in Jakarta. PM Abhisit had an opportunity to make his remarks during the “Thailand Luncheon” session, as follow:

Excellencies, Distinguished Guests, Ladies and Gentlemen,

It is my great pleasure to be your host at today’s Thailand Luncheon. I’d like to convey my sincere congratulations to the Indonesian Government and the participants from all over the world in making the 20th anniversary of the World Economic Forum on East Asia a success. East Asia has, no doubt, emerged as one of the most important regions in the world, as a strong and dynamic engine of growth that has led many countries out of the latest financial crisis. 

With this momentum, all eyes are indeed on East Asia. The region has developed rapidly with ASEAN at its core. The Republic of Korea and Vietnam have hosted previous WEF on East Asia meetings, and this year we have gathered here in Indonesia. As an important pillar of ASEAN, Thailand is honoured to host the 21st WEF on East Asia in 2012. So next year, I hope that you will all be visiting Thailand to take part in deliberating the region’s opportunities and challenges and its roles and responsibilities for the decades to come.  And I can assure you that you will enjoy and benefit greatly from your participation in our Land of Smiles.

(On new globalism and the rise of Asia)

The global financial crisis and the recent debt crisis in Europe have reminded us once again that we are indeed “one global community”. Such a global-scale crisis needs global cooperation and solutions. The pledge for the post-crisis global action,   which has accelerated the economic rebound, has given us opportunities to reflect and rethink our development objectives. While focusing on economic growth we must also emphasize inclusiveness and equality, regardless of differences in stages of development. At the same time we must address reform of the global governance system which has led to the “new growth model”, promoting development that is more inclusive and more sustainable.

Asia is now regarded as one of the most dynamic regions, and Asia is continuously evolving and expanding. ASEAN, meanwhile, will have a combined GDP of almost 2.9 trillion US dollars and a population of close to 700 million when we achieve the ASEAN Economic Community by 2015. ASEAN has also been continuing to broaden and deepen relations with other countries and regions, like in the ASEAN Plus Six framework, with China, Japan, Republic of Korea, India, Australia, and New Zealand. This grouping will have a combined GDP of approximately 25 trillion US dollars and a population of 3.5 billion in 2015, almost half of the world’s population.

But for today, to sustain global economic recovery, it is important to accelerate national development that is focused on inclusive growth and sustainability. While successfully catalyzing its growth engines towards sustained economic recovery, Thailand has attached high importance to a human-centered development strategy that enhances our peoples’ productivity. We also aim to enable all segments of the society to have equal opportunities and maximise the benefits from the accumulated wealth of the country.

(On building up Thailand’s competitive edge)

Though Thailand has experienced a series of unprecedented challenges in the last few years, the business community has shown itself to be strikingly resilient. Despite many challenges, economic development remains our shared goal, and there are many factors behind our accomplishments which we are proud of.

Firstly, Thailand has maintained solid macro-economic foundations, underscored by the dynamism of its economy. The GDP has grown 7.8 per cent in 2010, the second highest in ASEAN and third highest in Asia. This is a remarkable rebound, and the growth is expected to be quite healthy this year. The value of export in 2010 increased almost 29 percent year-on-year, and in the first four months it has increased over 27 percent compared to the same period the previous year. Thailand’s unemployment currently remains at a very low rate of 0.7 per cent. Our public debt to GDP ratio is around 41 per cent with foreign currency reserves of 187.5 billion US dollars — among the world’s top 13. The private banking system is sound and healthy with a manageable inflation rate that was also reflected in the recent WEF Global Competitiveness Report that ranked Thailand 8 of 139 economies for low inflation. We have also implemented many measures to increase income for the majority of the people, reduce costs of living, and provide social security benefits, which have substantially increased the people’s purchasing power.

Secondly, because of many factors, Thailand is one of ASEAN’s gateways to the world. Let me cite some examples of clusters of important business activities that make us the regional hub in different industries. In the food industry, Thailand has long been known as the Kitchen of the World, not only from our wealth of tastes and spices, but as the world’s biggest rice exporter.

Moreover, Thailand is the world’s number one producer for hard disk drives and its supporting industries, as well as Southeast Asia’s number one in the petrochemical industries.

For the automotive industry, we now have a production capacity of 2.1 million automobile units per year and currently rank among the top 15 automobile producing countries. By 2016, I believe that we will be in the world’s top 10. We are already the world’s largest manufacturer for one-ton pick-up trucks. And as all cars use rubber tires, you will also find that Thailand is also the biggest producer and exporter of natural rubber. For those who are interested in value-added investment in rubber, Thailand welcomes you and is keen to offer many investment privileges.

In tourism, in the first quarter of this year, we have already 5 million visitors, including many who come as medical tourists and have their check-ups while enjoying the country. With this trend, I believe that we will be host of up to 18 million visitors this year. Of course our services are second to none and Thai hospitality is known worldwide.

Moreover, the Government has been working on its transition to a Creative Economy which focuses on innovation and creativity to drive new ideas by being creative, be it in design, fashion, animation, graphic arts, or digital media. The aim is to boost growth by being creative and different; to nurture a skilled and creative workforce; to strengthen intellectual property rights; and to capitalize on our rich culture and national heritage. We aim to increase the country’s proportion of creative economy value to 20% of GDP by 2012.

Thirdly, Thailand has a good investment environment. UNCTAD’s Multinational Cooperation Report rated Thailand as the 11th most attractive FDI destination and the World Bank rated us at rank 19th in its Ease of Doing Business ranking. The latest World Economic Forum’s Global Competitiveness Report also ranked Thailand at the world’s top 12th for Investor Protection, 23rd for Market Size and 24th for Labour Market Efficiency. From January to April 2011, 3.6 billion US dollars worth of new applications were received by our Board of Investment. These figures speak for themselves.

Fourthly, Thailand has well-developed infrastructure with a strategic location in the heart of Southeast Asia. Last year, the World Economic Forum ranked Thailand at 35th in infrastructure. In the next five to six years, the existing domestic infrastructure networks will be upgraded through mega infrastructure investment projects worth 25 billion US dollars, ranging from deep-sea port development to upgrading rail networks. We are developing the Laem Chabang sea port and linking it with Dawei sea port that is being developed, to connect the two important oceans as commercial routes and as part of the East-West Corridor. On our rail networks, we are increasing its capacity and speed, therefore reducing logistics costs. We will also have a high-speed train connecting Southern China to Malaysia and Singapore. As you can see, Thailand has been working with ASEAN and countries of the region to enhance connectivity, which will offer real opportunities for trade and investments in the region and unleash the potential of the ASEAN Economic Community that will be realised in 2015.

Last but not least, Thailand recognizes the global environmental challenges, and has played an important role in addressing the issue of climate change. Thailand is focused on green growth and being an environmentally-friendly country.  Thailand is working towards a true transformation to a greener and cleaner economy, and also press ahead for “eco-friendly” industries to protect the environment and to conserve energy. This direction is also reflected in our investment policy for sustainable development, such as maximum incentives for investment in energy conservation, alternative energy-related activities and the manufacturing of eco-friendly materials and products.  We also aim to use renewable energy as 20% of our total energy use by the year 2022.

(On invitation to join WEF on East Asia 2012 in Thailand)

Ladies and Gentlemen,

I have outlined to you Thailand’s accomplishments and potential. Most of you may already know Thailand as the Land of Smiles, or as a tourism and medical health destination. But we are also home to so many important clusters of industries. And with the general election scheduled in Thailand early next month, it is clear that Thailand is a country of continuity and resilience, and we are moving forward in our democratic development. We are fully committed to host next year’s World Economic Forum on East Asia, which I am pleased to extend a warm invitation of the Royal Thai Government and our people to all of you to visit Thailand, to see for yourselves the potential and opportunities that Thailand has to offer as a country of choice and a reliable business partner of choice. Thank you and Sawasdee Krub.

EDUCATION:
1977 — Bachelor of Economics, First Class Honours, Chulalongkorn University, Bangkok
1979 – Master of Art (Economics), University of Sussex, United Kingdom
1984 – Doctor of Philosophy (Economics), University of Sussex, United Kingdom
TRAINING:
25 June – 17 August 1990 — Program on Investment Appraisal and Management, Harvard Institute for International Development, Cambridge, Massachusetts, USA
WORK EXPERIENCE:
Oct 2008 – present — Secretary General, Office of the Board of Investment

Oct 2005 – 2008 — Director General, Office of Industrial Economics, Ministry of Industry
Jan 2004 – Sep 2005 — Senior Executive Investment Advisor, Office of the Board of Investment

Aug 2002 – Jan 2004 — Assistant Secretary General, Office of the Board of Investment

Oct 2001- Aug 2002 — Senior Investment Promotion Officer 9, Office of the Board of Investment

Sep 1999– Oct 2001 — Director, the Planning and Development Division, Office of the Board of Investment

Jul 1993 – Sep 1999 — Director, the International Affair Division, Office of the Board of Investment

Feb 1991 – Jul 1993 — Head of Policy and Planning Section, the Planning and Development Division, Office of the Board of Investment

Jun 1989 – Feb 1991 — Head of Surat Thani Regional Office, Office of the Board of Investment

May 1986 – Jun 1989 — Senior Investment Promotion Officer, the Planning Division, Office of the Board of Investment
May 1984 – May 1986 — Investment Promotion Officer, the Project Development Division, Office of the Board of Investment

Thai premier Abhisit Vejjajiva, right, is seen chairing the meeting of BOI held at the Government House last Monday. Sitting extreme left is BOI secretary Dr Atchaka Sribunruang.

The number of investment projects applying for Thai government promotion during the first five month of this year has increased 51 percent while the combined investment value gone up 25 percent to 208 billion baht.

According to Dr Atchaka Sibunruang, secretary-general of Thailand’s Board of Investment (BOI), a total of 725 projects, with the combined value of 208 billion baht, has during the period from January to May this year applied for various investment privileges provided by the Thai government, significantly increasing from 480 projects with the value of 166 billion baht during the same period last year.  

During last Monday meeting of the 12-member BOI, chaired by Prime Minister Abhisit Vejjajiva, Dr Atchaka, on behalf of the secretary of the Board, reported that the agency expects the investment value of all applications throughout the year to reach the target of 400 billion baht due to the current recovery of both global and domestic economies.

Among the projects seeking Thai government privileges during the first five months, she said, the biggest group of 184 applications with the value of 63 billion baht is in metal, machinery and transportation equipment industries, followed by 154 applications worth 42 billion baht in service industry and public utilities sector, 99 applications worth 37 billion baht in chemical, paper and plastic industries, and 108 projects worth 28 billion baht in electronic and electric appliance industries.
One of the important factors resulting in such continuing investment growth since early last year, she said, has been the policies to promote certain investment in targeted industries, such as by promoting the replacement of the machinery for energy saving and environmental impact reduction in which the investors have so far invested more than 2.4 billion baht.

Moreover, the policy to add new investment categories and to adjust promotional criteria for small and medium enterprises (SMEs) has during the first five months of this year attracted a total of 92 SME projects, up about 1.78 times from those of the same period last year, with the investment value of 3.7 billion baht, increasing 5.25 times from the same period last year, she added.

Regarding the foreign direct investment (FDI) during the past five months, the BOI secretary said, a total of 431 projects worth nearly 141.2 billion baht have been submitted by foreign investors for consideration of the agency to grant promotional privileges, with Japanese investors remaining at the top in term of both schemes and capital.

During the first five months of this year, there were 221 projects of Japanese investors, equal to about 51 percent of all foreign investment projects, with the combined investment value of almost 57.5 billion baht, up about 77 percent from the same period last year and equal to 41 percent of the overall foreign investment value during the first five months of this year. The Japanese projects were mainly in the industries of automobile parts and electronic parts.

The investors from China ranked second in term of investment value at 20.5 billion baht, equal to about 15 percent of the overall foreign investment value, with the biggest project of tire production worth about 19 billion baht.

Listed companies on the Stock Exchange of Thailand (SET) reports record-high total sales of 2.12 trillion baht and profits of 205.29 billion baht for the first quarter of this year, up 18.22 percent and 29.74 percent respectively from the same period last year.

According to SET president Charamporn Jotikasthira, a total of 460 companies out of 506 SET-listed firms, including 32 property funds, had already submitted their operating results for the first quarter of this year and their total sales and profits surged to the highest since the establishment of SET, originally in 1962.

Charamporn on Monday said the surge in both the total sales and profits reflected the stable economic fundamentals, listed companies’ capability to generate profits amid higher operating costs, and a readiness to expand in the future.

The growth has been outstanding in SET50 stocks, particularly those in the energy and utilities sector, as their total sales and profits have continued to rise since the second quarter of last year while the listed companies in SET 100 during the first quarter of this year enjoyed an increase of 35.27 percent from the same period last year in net profits to 182.72 billion baht, representing 89.01 percent of the total profits earned by all listed firms.
During the first quarter of this year, he said, the sales of SET 100 companies rose 19.61 percent or 297.76 billion baht while the gains from foreign exchange fell 84.92 percent, the interest burden went up 15.96 percent and the cost of sales increased 18.87percent, resulting in a slight increase in their gross profit margin from 19.70 percent last year to 20.19 percent.

The top five companies with the highest net profits are PTT Plc, Siam Commercial Bank Plc (SCB), Indorama Venture Plc (IVL), PTT Exploration and Production Plc (PTTEP), and Siam Cement Plc (SCC) while the top five industries with the highest net profits are the resources, financial business, raw materials for industrial products, property and construction, and technology sectors.

The groups with the highest profit growth rate were industrials, resources and financials while the energy and utilities, the petrochemicals and chemicals, and the banking sectors were the top three with the highest sales and net profit, with combined sales of 58 percent of total sales and combined net profits of 67 percent of total net profits.

Dr Panitan, the government spokesman

Thailand’s general election has been set to be held on July 3 after His Majesty the King yesterday endorsed a Royal decree to dissolve the House of Representatives and set the date for the country’s ballot casting.

Government Spokesman Panitan Wattanayagorn said yesterday during a news briefing that the country’s King Bhumibol Adulyadej has already endorsed the Royal decree which would come into effect today and the election will be held on the date.
The announcement by Dr Panitan was prior to the nationally televised address of Prime Minister Abhisit Vejjajiva scheduled for 8.30 p.m. last night, summarising the implementation of several projects by his government during the tenure of more than two years since December 2008.

In his address, the Thai premier also thanked the members of the Lower House, the Cabinet member and the officials of all ministries for performing their duties the best that his government can push forward several policies into effects, and moreover confirmed to all Thai people that he had done his best throughout his term of premiership even though some people might not happy with some of his efforts.

Meanwhile, the government controlled MCOT Plc reported that during its tenure the Abhisit administration’s Democrat-led coalition has encountered both political turbulence and economic problems, resulting in demands for the premier’s resignation or the dissolution of Parliament.
One major crisis taking place during the Abhisit administration has been the repeated demonstrations of the anti-government United Front for Democracy against Dictatorship (UDD), so called the “Red Shirts”, which last year culminated in violence and the death of 90 people including protesters, soldiers and some civilians.
The prime minister earlier reasserted to anti-government groups that the Lower House will be dissolved only when economic condition is favourable, the charter is amended and political divisiveness is diminished.
Prime Minister Abhisit however announced he would dissolve Parliament in the first week of May immediately after the two drafts of the charter amendment regarding changes in the electoral system from single constituency to multiple seats, and a parliamentary approval requirement for international treaties have been approved by Parliament, taking effect March 5.
The term of the Democrat-led government finishes at the end of this year. It is the 12th Thai government having ended with the dissolution of the House. The previous dissolution took place in February 2006 when fugitive ex-premier Thaksin Shinawatra announced the move following the pressure from the yellow-clad People’s Alliance for Democracy.
Under the terms of dissolution, the authority of the Abhisit Cabinet ends with the royal decree to dissolve the parliament, but a caretaker government will run the country until a new Cabinet is appointed following the general election.
The caretaker Cabinet has legitimacy to announce the enforcement of measures to ensure national security such as a state of emergency or martial law, but is prohibited from transferring civil servants or government officials, and approving any project which will be binding to the new government, the MCOT said.

BIFF & BIL 2011 is the highlight of April 2011 events.

April 2 – 10, 2011

Events:
Furniture Show 2011
Bangkok Wedding Show 2011
Fashion & Jewelry Show 2011
Venue:  IMPACT Arena, Muang Thong Thani
Organiser:  World Fair Co., Ltd.
Tel:  +66 (0) 2 731 1331 
Fax:  +66 (0) 2 375 9206
Email:  exhibit@worldfair.co.th 
Website:  www.worldfair.co.th 

April 5 – 6, 2011

Event:  SEA Future Expo
Venue:  Royal Paragon Hall
Description:

Fine a one-stop information on continual education including: 
- Sport Activities
- Performing Arts
- Preparedness for famous faculties
- All about admissions and worldwide scholarship 
Organiser:  Shoot It Co.,Ltd. 
Tel:  +66 (0) 2 580 18301 

April 19 – 24, 2011

Event:  Bangkok International Gift Fair and Bangkok International Houseware Fair 2011 (BIG & BIH 2011)
Trade:  April 19 – 22 (10am – 6pm)

Public:  April 23-24 (10am – 9pm)

Venue:  Bangkok International Trade & Exhibition Centre (BITEC), Bang Na
Description:

One of ASEAN’s leading international trade fairs for trendy gifts and lifestyle products recognized as Thailand’s excellent platform for buyers and sellers in the gift and houseware industry.

The highlights are gifts, decorative items, home textiles, stationery, toys and games, artificial flowers and plants, handicrafts, household products and small electrical appliance.

Organiser:  Department of Export Promotion (DEP)
Tel:  +66 (0) 2 547 4270
Fax:  +66 (0) 2 547 4266
Email:  big@depthai.go.th
Website:  www.depthai.go.th,: +66 (0) 2 507 8361 – 4
Event’s URL:  www.bigandbih.com

Tel:  +66 (0) 2 507 8361 – 4

Fax:  +66 (0) 2 547 4281

April 20 – 21, 2011

Event:  World Tapioca Conference 2011
Venue:  IMPACT Arena, Muang Thong Thani
Description:

The official conference aims to support the Thailand’s potential as the world’s leading exporter and producer of quality tapioca products. 
Organiser:  Department of Foreign Trade, Ministry of Commerce
Website:  www.dft.go.th/tap_th.asp 

April 20 – 24, 2011

Event:  Bangkok International Fashion Fair & International Leather Fair 2011 (BIFF & BIL 2011) and ASEAN Fashion Plus 
Venue:  Challenger 2-3, IMPACT Arena, Muang Thong Thani
Description:
The event features Fashion Designer, Sourcing From First to Finish, Clothing, Brand Preference, Pick & Pay, Exotic Asia, International & Asia Power, Fashion Accessories, Bag & Carry, Move on Feet, Material & Tanning, Fashion Supporting and special activities, such as Fashion Shows, Business Matching, Exhibition, Thailand Trade Mart Tour , and Seminars. 
Organiser:  Department of Export Promotion (DEP)

Tel:  +66 (0) 2 547 4270
Fax:  +66 (0) 2 547 4266
Email:  biff@depthai.go.th
Website:  www.thaitradefair.com
Event’s URL:  www.biffandbil.com

April 23 – May 1, 2011

Event:  Furniture Grand Sale
Venue:  Queen Sirikit National Convention
Description:
The furniture and decorative items exhibition for furniture industry. 
Organiser:  Home Show Co., Ltd.
Tel:  +66 (0) 2 719 0408 
Website:  www.unionpan.com 

April 27 – 28, 2011

Event:  CAT Network Showcase 
Venue:  Queen Sirikit National Convention
Organiser:  Good View Advertising Co., Ltd.
Tel:  +66 (0) 2 363 4465-66
Website:  www.catdatacom.com 

April 28 – May 1, 2011

Event:  Thai-China Industrial Expo 2011
Venue:  IMPACT Arena, Muang Thong Thani
Description:
The first show of Thai-China association, the exhibition show of the industrial products from both China and Thai producers. They bring the thousand of new trend of products to show and sale.
Organiser:  I got it Co.,Ltd.
Tel:  +66 (0) 2 579 3377

Fitch Ratings today said the outlook on Thai banks should remain stable for the next 12 to 18 months as economic conditions are expected to remain supportive of banks’ overall performance during the period of time.

However, the global rating agency also sees several main risks which include strong credit growth in some large corporate and retail sectors, surging funding costs and potential asset quality pressure due to higher interest rates from rising inflation, and lingering global uncertainties.

According to the report, entitled “Thai Banks: Annual Review and Outlook – Resilient Economy Supports Bank Performance, but Inflation and Global Uncertainties Pose Risks”, Fitch said, the banks’ earnings and core capital nevertheless provide reasonable buffers against economic shocks.
While rising funding costs and competition are likely to pressure Thai banks’ net interest margins, Fitch expects healthy loan demand, rising fee income and moderate provisions to support overall profitability, with major banks in better position than their smaller competitors to manage the impact of rising funding costs given their larger deposit franchises.
The banks’ steady earnings help support core capital buffers at acceptable levels for their ratings, said the agency while noting that the banks do not rely significantly on hybrid capital securities as paid-up capital and retained earnings, which have the strongest loss absorption capacity, remain the major components in their capital structure.
The banks’ asset quality has shown steady improvement, with declining non-performing loans (NPLs) and increasing reserve coverage. At the end of 2010, Thai banks’ NPL ratio was 4.4 percent, compared with 5.9 percent in 2009, and reserve coverage was 91 percent, compared with 76 percent in 2009.

Over the longer term, Fitch expects that the enhancement of underwriting standards and active prevention and resolution of impaired loans to further improve asset quality. 
Meanwhile, the agency viewed that funding and liquidity risks should remain manageable. While the average loan-to-deposit ratio of 97 percent, for the six largest banks which account for about 80% of the banking system’s assets, is generally higher than most banks in Asia, the agency said , funding risk is manageable due to their adequate liquid asset levels and stable retail deposits. 
Events which notably raise capital impairment risks, such as sharp rises in NPLs due to weaker-than-expected economic growth and/or overly aggressive growth, could be negative for ratings. The continued improvements in key performance measures, such as higher return on assets and lower NPLs, should generally be positive for Thai banks’ credit profiles. 

Date of Birth:  June 8, 1955

Education:

2007 — Certificate, Capital Market Academy
1994 – Certificate, National Defence College
1977 — Certificate in Population Studies, University of Hawaii
1983 – PhD Economics, University of Hawaii
1978 — MA Economics, Thammasat University, Bangkok
1976 — BA Economics (Hon.), Thammasat University, Bangkok

Working Experiences:

2009 – 2010 — Deputy Permanent Secretary, Ministry of Finance
2007 – 2009 — Inspector, Ministry of Finance

2004 – 2007 — Director General, Fiscal Policy Office, Ministry of Finance

1998 – 2004 — Rector, Thammasat University
1997 – 1998 — Director, College of Innovative Education, Thammasat University
1994 – 1997 — Dean, Faculty of Economics, Thammasat University
1993 – 1994 — Vice Rector for Planning and Development, Thammasat University
1992 – 1993 — Chairman of Thammasat Faculty Senate

Other Experiences:

- Board member, Communications Authority of Thailand
- Chairman, Industrial Estate Authority of Thailand
- Board member, Petroleum Authority of Thailand
- Board member, Government Savings Bank
- Vice Chairman, SME Institute
- Board member, Attorney General Council
- President, University Sports Board of Thailand
- Chairman, Secondary Mortgage Corporation
- Board member, National Economic and Social Development Board
- Board member, Government Pension Fund
- Board member, Council of State
- Board member, Neighbouring Countries Economic Development Cooperation Agency (Public Organization)
- Board member, Anti-Money Laundering Office
- Chairman of Management Board, Thai Asset Management Corporation
- Board member, Bank of Thailand
- Board member, Thai Asset Management Corporation
- Advisor, The Stock Exchange of Thailand
- Board Member, Brain-Based Learning Institute
- Vice President, Saint Gabriel College Alumni Association
- Chairman, Small Industry Credit Guarantee Corporation
- President, Thammasat Economics Association

Other Current Positions:

- Chairman, National Economics Research Council
- Board Member, Thai Oil Public Company Limited
- President, East West Center and Hawaii Alumni Group of Thailand
- President, Thailand Special Olympics
- President, Thammasat Association
- Chairman, Board of Directors, Export-Import Bank of Thailand
- Board member, Asian Property Development (Public Company)
- Board member, PTT Public Company Limited
- Board member, Ananthamahidol Foundation, Thammasat Division
- Board member, Thammasat University Council

Thailand’s Ministry of Finance yesterday announced the economic growth of the country for this year is expected to be within the range of 4-5 percent as earlier forecast since December last year.

Dr Naris Chaiyasoot, the director-general of the ministry’s Fiscal Policy Office (FPO), said although the office had revised its estimation for the country’s gross domestic product (GDP) growth for 2011, it believed the annual GDP would however grow 4-5 percent as targeted earlier, compared with the growth of 7.8 percent last year.
This year’s GDP growth, he said, might be also affected by the current major flooding in several southern provinces, which has so far damaged some 56,000 rai of farmland.
However, there are several positive factors to the GDP growth, such as the global economic recovery, the country’s general election which is expected to be held around the middle of this year, an increase in domestic consumption due to higher prices of agricultural products, and the increased salaries of government officials and state enterprise employees.
In addition, Boonchai Charassangsomboon, director of FPO’s Bureau of Macroeconomic Policy, added that in 2011 Thailand’s economic stability remains robust, with headline inflation is projected to stand at 3.6 percent for the year while core inflation to stand at 2.5 percent.

He said the external stability remains resilient, with projected current account surplus of 3.5 percent of this year’s GDP, which is slightly lower than that of last year due to the revival of private consumption and investment coupled as well as the rise in oil price.

Dr Naris added that the economic projection needs to take several risk factors needing close monitoring into account, they are especially the speed of recovery of Japanese economy from the recent earthquake and tsunami, the political turmoil in the Middle East that could affect the volatility of global crude oil price, and the international capital flow situation that could impact the exchange rates.

Prime Minister Abhisit Vejjajiva on Monday gave a keynote speech at the annual dinner of the Foreign Correspondents’ Club of Thailand (FCCT) at the Intercontinental Hotel in Bangkok. The Thai premier had once again met with FCCT members and guests after 14 months, and this year’s speech of his seems to have reflected a lot of things, not only in relation to what have been going on and what will be happening in Thailand but also, of course, what the Oxford-educated prime minister of Thailand is thinking now.

Here is the transcript of PM Abhisit’s keynote speech we would like you readers to read between the lines.

**********************************

President of the FCCT,
Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

First of all, allow me a brief moment to express my deepest sympathy and condolences to our Japanese friends on what they have been through as the result of the devastating earthquake and tsunami on Friday the 11th of March. Japan has long been a good friend of Thailand and has always helped us when problems strike. She has shown her commitments to Thailand, especially in terms of trade and investment, through good and bad times. And, we also recall that when we were hit by the tsunami the Japanese government and the people gave us full support. So let me at this stage again show our concern and consideration to our Japanese friends and wish them the best so that they can overcome the current crisis.

It has always been a pleasure for me to come and meet members of the Foreign Correspondents’ Club of Thailand although admittedly it was a greater pleasure when I was in the Opposition. And I’m sure that over the last couple of years, you always asked yourself in your mind is this guy going to be back next year? Well, this year is no different. You will be wondering whether I will be here next year. I’m wondering too. But the people of Thailand will decide through the ballot box whether I should be here next year. And I remember last year when I was here, I said that it was a good rehearsal for the censure motion. This year is the reverse. I had a good rehearsal for tonight from last week’s four day grilling.

But the point that I would like to make tonight is that it is time for Thailand to move forward. We’ve been through so much over the last two years during my tenure, and a few years before that even through the turbulence and the political challenges. But at least over the last couple of years, they have had a government that has been determined to remain focused on moving the country forward, steering the economy through one of the severest global financial crises that we have witnessed in recent or even in modern times, and also to face up to the political challenges whereby when we assumed office there was hardly a functioning government. And we have steered the country and the political system over this last couple of years through enormous and unprecedented challenges.

There are times and events where we have all regretted what had happened, particularly the loss of people’s lives, but it was our job, first and foremost, to ensure that there was a rule of law; and that we exercise the utmost restraint, tolerance and patience, and try to move the country though these difficult times, at the same time, remaining focused on what really matters to the majority of Thais — which is that their lives should be improved. And we’ve done that as well.

It is not just about the macroeconomic numbers that you see today where we move from a 2.3 percent contraction of the economy to 7.8 percent registered last year; or the numbers that now say we have the highest number of tourists and exports, revenues record high still expanding at the very healthy rate; or the fact that we have been able to keep fiscal and monetary stability despite the scale of the financial crisis that hit the global economy. The ability to keep the debt GDP ratio which is now currently at 41-42 percent and declining and, of course, keeping unemployment relatively low, well actually, by international standard it would be very low, to around 1 percent or below. These things matter, these things help, but there are a number of policies that we actively pursue despite the turbulences.

Free basic education for 15 years, so that families are now comfortable by having their kids in school, where there would be no tuition fees, and they would get uniforms and supplies and books for their children. Two years ago a lot of families would still have set aside a fair bit of their income for the elderly. Today, at least, they get the 500 baht a month support — not nearly enough but very meaningful to a majority of poor families, especially in the rural areas.

Two years ago, farmers always faced uncertainties, about the weather, about prices, and now farmers who make the majority of the population enjoy the income guarantee programme if they grow rice, if they grow maize, if they grow tapioca — which is for the first time led to increased security in their lives. And one of the numbers that has not been mentioned much but it has been meaningful to me and those who have worked with me is the increase in the amount of money in their bank account with the bank for agriculture and agriculture cooperatives. The deposit per account has increased on average 10 percent for the last couple of years, suggesting that they actually have an opportunity to be savers rather than being so in debt.

And there are also a number of other initiatives that we have already undertaken which will go further to create a kind of security for our people’s lives. And also, a number of measures that have reached out to those people who have always been left behind, classified often as people in the informal sector. We have already run a successful programme for a lot of people who have been in debt to loan sharks, paying incredible interest rates, their lives being threatened having to repay these debts. And we have already helped 400,000 people to actually convert those debts or loans to bank loans — in the process, actually creating good customers for these banks as well. And we will do a second round registration for that very soon.
We are now in the process of registering people outside the social security system, because they have no employers. Now they are given a chance to contribute 70 baht and 100 baht per month, and the government will make contributions of 30 baht and 50 baht, and they will enjoy the benefits of those in the social security system. That can reach out to as many people as many as maybe 20 million who have been left out all a long in the development process. So these are the actions, these are the things that we have done and we will continue to do.

In Bangkok, special pilot projects are on their way about registering motorcycle taxis. Street vendors will be able to see their goods legally and they will also have access to loans from government banks. These are the kinds of things that we have been able to achieve beyond the headlines and despite all the challenges and turbulence that we have been through over these two and a half years. But the Thai people still deserve more, and despite the fact that we have moved on from the economic crisis, the Thai people are now faced new challenges. Rise in prices, a cost of livings going up, and it may be a global phenomenon but all they know is that they have to make ends meet.

At the same time, there are some structural or long term problems that continue needing to be solved — drugs, even the situation in the south, where we have changed our policy stance clearly and we believe we are on the right track, but the problems are still there and they need to be handled in a consistent and continuous manner.

That’s why I decided it was a good time for the people to decide on the direction of the country, since the scenario now changes we have got new challenges, it would be good for them to have a choice. Do they want to move forward with the policies that we have initiated and that we will build on — the “People’s Policies” — or do they want to stay in this cycle of conflict and violence? Do they want the government that would continue to put their interest first? Or do they want people who are still tied to one person’s interest and wouldn’t allow the country and the Thai people to move beyond that? That is the choice that would be facing the Thai electorate, maybe the end of June or, at the latest, it will be in July.

And, for me, as the Democrat Party leader, we have already been cleared about what we want to continue to do. We recognize that the number one priority now is to help people fight high prices. And while we will continue with some of the subsidies that we have put in place, for instance, for cooking gas, for diesel, we also recognize that we cannot subsidize everything or put a control on all prices and the only way to fight that is to make sure that the incomes, the money in their pockets, increase, which is why we have made a commitment that we’d like to see the minimum wage increased by 25 percent within the next two years. It is something that these people deserve. It is also something that I think that the Thai economy deserves — a stronger domestic economy, a fairer economy, and one that will allow prices and wages to move up according to the stage of development of the country.

We will increase and improve upon the income guarantee for farmers since their costs have increased and I think they deserve a higher rate of return as well on what they do because we want to continue to move forward with the revival of our agricultural sector, and also make sure that there is something that we can contribute to as far as food security is concerned not just for this country but for the region and the world.

We are also going to extend opportunities for our children. Fifteen-year free basic education is not enough. So many families, so many parents aspire to have their children going on to higher education. We will make available more loans for higher education students. 250,000 is the right number that we think need to fill that gap between all those applicants each year who get turned down by the student’s loan office. We will also continue with our policy to give community land titles so that a number of communities will enjoy the kind of security that has eluded them for so long.

And we will also strengthen police force and the personnel to deal with the problem of drugs, which clearly is a threat to families, to communities and to the country as a whole. At the same time the approach we have taken towards the southern border provinces, where we say that development and justice must be the key to achieve lasting peace, will also continue. We will build on the new legislation that we have passed where the Southern Border Provinces Administration Center has now become more unified in its command structure and also will allow the participation of local people in the advisory board and its policy making.

At the same time, as the election allows Thailand to move forward we will also be able to contribute more at the international level. During Thailand’s chairmanship, we made a commitment for ASEAN to move into an economic community by the year 2015. And last year we suggested connectivity as the key policy priority for the whole of ASEAN. And we will also of course engage in a number of infrastructure investments to make that connectivity happen like the high-speed rail and the upgrading of roads network that will allow Thailand to become the hub of what I call mainland Southeast Asia. And we can pursue further liberalization agenda with free trade agreements with all the ASEAN and ASEAN Dialogue Partners and even beyond.

And of course there are other issues that we will also hope we can better handle, for instance, dealing with corruption, where we are in the process of improving upon a number of key areas in terms of civil service transfer and promotion system, and the procurement system that needs to be revamped to prevent corruption.

These are all issues that have mattered to the Thai people all along. Some of these have been addressed over the last couple of years, but there is much more to do, and we want the Thai people to give that mandate for us to move forward. And I hope that by the time next year’s FCCT dinner arrives I should be here to report further progress on delivering the “People’s Policies” for the benefits of the Thai people and Thailand. Thank you.