THAILAND FOCUS January 20th, 2015: PM vows to lay groundwork for strong economy in 2015. Prime Minister Prayut Chan-o-cha told representatives of leading private business groups last week that his government would work harder to ensure strong economic growth in 2015, as one of the country’s foremost business schools predicted 4.5 percent gross domestic product growth this year. The prime minister met with about 25 business representatives for more than four hours, and asked them to help restore confidence in the economy. Among those attending the meeting were the chiefs of the Board of Trade, the Thai Chamber of Commerce, the Federation of Thai Industries, the Thai Bankers Association and the Thai Hotels Association. The prime minister invited business leaders to participate so they could update him on their needs and concerns. Some in the business sector have expressed concerns that impeachment proceedings against for Prime Minister Yingluck Shinawatra for alleged negligence in administering her government’s rice-pledging program may spark her supporters to take to the streets and cause unrest. “Political issues are also important but they should not worry business much. Members of the private sector shouldn’t only think about political problems,’’ the prime minister told business leaders. Federation of Thai Industries chairman Supant Mongkolsuthree said the executives were was very satisfied with their discussion with the prime minister. “We are happy that the prime minister paid close attention to all of our proposals, he said. “He told the private sector to be patient with the way the economy is going right now and asked the private sector to understand, as the countrys economic situation has declined in line with the world economy.” Isara Vongkusolkit, chairman of the Board of Trade and Chamber of Commerce, said businesses do not expect high growth in 2015 because of uncertainty about a global recovery and the possibility of the U.S. raising its interest rates. But National Institute of Development Administration (NIDA) director Montree Socatiyanurak, predicted Thailand’s economy would grow by 4.5 percent this year on government spending, economic recoveries in major trading partners, and the launch of Southeast Asia’s free trade zone. Kasikorn Bank’s research center also forecast that investment in 2015 would sill total nearly US$40 billion, thanks largely to government spending on infrastructure. In addition, the United Nations Economic and Social Commission for Asia and the Pacific (ESCSAP) named Thailand as one among a group of countries that will benefit most from falling oil prices, in a report released last week. Thailand is highly dependent upon imported crude oil from the Middle East. ESCAP said, however, that the Thai economy’s gains from cheap oil could be limited if the United States raises interest rates. But, a further oil price drop of $10 a barrel could see an increase of 0.5 percent in Thailand’s GDP.
Posted on: Tue, 20 Jan 2015 21:15:00 +0000
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