Thailand's rulers must act fast to reverse COVID-19 economic damage

[webfact]

OPINION

Thailand's rulers must act fast to reverse COVID-19 economic damage

Vital reforms elude Prime Minister Prayuth's cabinet despite six years in power

William Pesek

 

File photo

 

William Pesek is an award-winning Tokyo-based journalist and author of "Japanization: What the World Can Learn from Japan's Lost Decades."

 

Thailand's worsening unemployment troubles start, literally, at the top.

 

Last week, the government's entire economic team resigned, with departures by the ministers of finance, energy and innovation, as well as Deputy Prime Minister Somkid Jatusripitak, the veteran technocrat charged with efforts to save more than 10 million jobs at risk from COVID-19.

 

The exodus seemed partly performance based. Thailand's economy is expected to shrink 8.1% this year, putting it on track to become Southeast Asia's worst performer just as Prime Minister Prayuth Chan-ocha's cabinet celebrates its anniversary. The reshuffle, though, is "more about political consolidation than formulating new ways of thinking about economic policy," says Bob Herrera-Lim from Teneo Research.

 

Full story: https://asia.nikkei.com/Opinion/Thailand-s-rulers-must-act-fast-to-reverse-COVID-19-economic-damage

 

 

-- © Copyright Nikkei Asian Review 2020-07-20

 

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[Thaiwrath]

The bigger worry, though, is that Thailand will just be putting new names and faces on the same old policies of a military-junta-turned-elected government.

 

Sums up the whole 6 years of these <deleted>, at the helm.

Edited July 19, 2020 by Thaiwrath

[smedly]

24 minutes ago, webfact said:

Thailand's rulers must act fast to reverse COVID-19 economic damage

Start with paying all the money back to the Thai people

[CLS]

“A key priority must be diversifying the economy away from exports and tourism, which together generate 70% of gross domestic product. That requires a battery of tax incentives and regulatory changes to favor startups in the services sector.

 

As Asian growth becomes more about ideas than low-wage labor, Bangkok must invest exponentially more into education and training, and move beyond rote learning to championing critical thinking and problem solving.”

 

So true. But in a country where the students’ hair length and their ability to sing the anthem are more important than their readiness to succeed in a competitive world, this remains a mission impossible.

[RichardColeman]

55 minutes ago, webfact said:

as well as Deputy Prime Minister Somkid Jatusripitak, the veteran technocrat charged with efforts to save more than 10 million jobs at risk from COVID-19.

Like him or hate him, with your hands tied behind you back with no tourists no wonder he resigned

[itsari]

The protests are being attended by more than students . Now the Thai people are suffering from the economic pain from covid 19.

Perhaps we are witnessing the beginning of the end for the present sham government .

 

. 

[Ravi98008]

Is this the reason why the Bhat is losing its value since the past one week. From 31.00 Bhat per dollar to 31.78 Bhat today and maybe go up even higher

[ChakaKhan]

The teflon baht....if that starts moving there is surely trouble afoot!

[2 is 1]

17 minutes ago, Ravi98008 said:

Is this the reason why the Bhat is losing its value since the past one week. From 31.00 Bhat per dollar to 31.78 Bhat today and maybe go up even higher

YES and i love it lol. Please continue your doing! Make more idiot laws and keep coundry lock down until BTH is 50 

Last i sent money here BTH 34.8/€ today its 36.29. So sent 1000€ i get 3 case Chang for free.

Edited July 20, 2020 by 2 is 1

[Burma Bill]

7 hours ago, webfact said:

economic damage

Could sell the US Stryker armored cars, helicopter gunships and the Chinese tanks, but "never", now that students and activists are protesting on the streets again!

[hotchilli]

7 hours ago, webfact said:

The reshuffle, though, is "more about political consolidation than formulating new ways of thinking about economic policy," says Bob Herrera-Lim from Teneo Research.

It has been for the last six years, hence the economic bubble that's about to burst.
Covid was the last straw but truth be told the economy has been sliding for quite some time.

We've constantly been told that tourism is only 12% of GDP, so with most people back to work now the other 88% should be looking good and keeping Thailand afloat, unless someone's been lying for a long time and it's about to sink ?

 

[hotchilli]

6 hours ago, CLS said:

Bangkok must invest exponentially more into education and training, and move beyond rote learning to championing critical thinking and problem solving.”

 

So true. But in a country where the students’ hair length and their ability to sing the anthem are more important than their readiness to succeed in a competitive world, this remains a mission impossible.

History shows educated and intelligent people ask difficult questions, do not tolerate stupidity, and challenge peoples authority.
The PM is not ready for that yet, and history shows Thailand has never pushed education seriously specifically for that reason.

[Grumpy John]

I think they have "Missed the boat" shown by their complete disregard for the average Thai.   To me the question they should have asked themselves is "What can we do to make Thailand truly great for every Thai?" not "How can we enrich ourselves beyond our wildest dreams."   The sad fact is by doing the former they themselves would have achieved the riches they desire and adulation from the people as well.  Missed opportunity.  Growing hatred.  The clock is ticking. 

[Mikeasq60]

6 hours ago, itsari said:

The protests are being attended by more than students . Now the Thai people are suffering from the economic pain from covid 19.

Perhaps we are witnessing the beginning of the end for the present sham government .

 

. 

Dont people feel like their being manipulated by govt, I do!

[connda]

8 hours ago, webfact said:

Thailand's rulers must act fast to reverse COVID-19 economic damage

I love the wording:  Thailand's rulers.  Not Thailand's leaders. 
Of course, given the current state of affairs world-wide with 'leader' issuing 'dictates', the same could probably be said of pretty much the rest of the world, i.e.:

World rulers must act fast to reverse COVID-19 economic damage.

Same, same.  No difference.  As we learned from Tears For Fears in the 80's, "Everybody wants to rule the world."

[connda]

8 hours ago, webfact said:

Last week, the government's entire economic team resigned, with departures by the ministers of finance, energy and innovation, as well as Deputy Prime Minister Somkid Jatusripitak, the veteran technocrat charged with efforts to save more than 10 million jobs at risk from COVID-19.

Those revolving door ministry appointment help corporations and CEOs get a inside track to government legislation and funding - until it all goes pear-shaped.  Then it's every man to himself as the Rodentia as well as the wise jump ship.

[holy cow cm]

Rulers. Hahahaha. Ain't that the truth!

[Isaan sailor]

Sink Baht, sink!

[Deli]

2 hours ago, hotchilli said:

It has been for the last six years, hence the economic bubble that's about to burst.
Covid was the last straw but truth be told the economy has been sliding for quite some time.

We've constantly been told that tourism is only 12% of GDP, so with most people back to work now the other 88% should be looking good and keeping Thailand afloat, unless someone's been lying for a long time and it's about to sink ?

 

It was 19 % in 2019

[somtumwrong]

11 hours ago, Ravi98008 said:

Is this the reason why the Bhat is losing its value since the past one week. From 31.00 Bhat per dollar to 31.78 Bhat today and maybe go up even higher

Yes please. I hope they keep pumping the hysteria some more to have the THB on its knees.

[Michael19641965]

Don't put so much blame on the Thai government. The European governments from Sweden to Italy are not acting much better. The only difference is, that travelling within the EU has almost normalized, borders are open and travelling is almost hassle free. There are a few hundred new Corona cases in the big EU countries every day, most of them without symptoms or very minor symptoms, ICU stations in the EU are almost empty. The EU governments have at least understood, that with some measures it is possible to keep new infection numbers very low and the numbers are easily manageable and causing no headaches. The Thai government insists on zero new infections, that is in reality not achievable and an idiotic appoach, unless you lock up the country like North Korea. 

[Michael19641965]

Or to put it simply, you could easily revive foreign arrivals with very low risk. Just start with small numbers of foreign arrivals. Demand an RT-PCR Test within 3 days before departure and do a quick test (fingerblood) at Suvarnabhumi for all arrivals. The quick test shows the result within 10min and cost a retail price of about 15US-Dollar. The quick test after arrival combined with the RT-PCR before departure would give more 98% security that an arriving foreigner is Covid free. Then monitor the number of infections in the country and when you see that this system works, the number of new infections remains low, than increase the number of new foreign arrivals every month. It is not rocket science. Just buy a few million quick test for the airport's and employ nurses for taking the fingerblood and do the test. Thailand could even make money charging the arrivals 80-100US-Dollars for the quick test.  

[IAMHERE]

Wonder if Chinese arms or American arms will be used to control those students?  What was used back in 1976 ?

[rabang]

38 minutes ago, Michael19641965 said:

Don't put so much blame on the Thai government. The European governments from Sweden to Italy are not acting much better. The only difference is, that travelling within the EU has almost normalized, borders are open and travelling is almost hassle free. There are a few hundred new Corona cases in the big EU countries every day, most of them without symptoms or very minor symptoms, ICU stations in the EU are almost empty. The EU governments have at least understood, that with some measures it is possible to keep new infection numbers very low and the numbers are easily manageable and causing no headaches. The Thai government insists on zero new infections, that is in reality not achievable and an idiotic appoach, unless you lock up the country like North Korea. 

The EU opened their doors to select countries in different continents as well, including Thailand, but without reciprocity from Thailand. It is not only Thailand that is being hysteric about Covid-19 though, the likes of Australia are trying to eradicate it completely as well. Only time will tell who is right but every epidemic will eventually end in one way or another and my feeling is that the likes of Sweden or even Brazil might get back to normality sooner than those who are isolating themselves completely, even if the price is of course very high.

[samsensam]

14 hours ago, Grumpy John said:

I think they have "Missed the boat" shown by their complete disregard for the average Thai.   To me the question they should have asked themselves is "What can we do to make Thailand truly great for every Thai?" not "How can we enrich ourselves beyond our wildest dreams."   The sad fact is by doing the former they themselves would have achieved the riches they desire and adulation from the people as well.  Missed opportunity.  Growing hatred.  The clock is ticking. 

 

it's not about making thiland great, it's about creating and nurturing an environment that provides people the opportunity to better themselves and their lives, which in turn will benefit the country as a whole.

[Michael19641965]

10 minutes ago, rabang said:

The EU opened their doors to select countries in different continents as well, including Thailand, but without reciprocity from Thailand. It is not only Thailand that is being hysteric about Covid-19 though, the likes of Australia are trying to eradicate it completely as well. Only time will tell who is right but every epidemic will eventually end in one way or another and my feeling is that the likes of Sweden or even Brazil might get back to normality sooner than those who are isolating themselves completely, even if the price is of course very high.

I do fully agree. There have to be some parameters, for example Germany says countries with less than 50 new infections per 100000 people within the last 7 days are ok. Zero new infections is a military approach, generals want to win battles 100%. In normal life nothing is 100%. We have to live with the new virus. And with a low number of new infections. Thats realistic.

[tribalfusion001]

1 hour ago, Michael19641965 said:

Or to put it simply, you could easily revive foreign arrivals with very low risk. Just start with small numbers of foreign arrivals. Demand an RT-PCR Test within 3 days before departure and do a quick test (fingerblood) at Suvarnabhumi for all arrivals. The quick test shows the result within 10min and cost a retail price of about 15US-Dollar. The quick test after arrival combined with the RT-PCR before departure would give more 98% security that an arriving foreigner is Covid free. Then monitor the number of infections in the country and when you see that this system works, the number of new infections remains low, than increase the number of new foreign arrivals every month. It is not rocket science. Just buy a few million quick test for the airport's and employ nurses for taking the fingerblood and do the test. Thailand could even make money charging the arrivals 80-100US-Dollars for the quick test.  

That is a very logical plan which could work, but logic doesn't count for much in Thailand.

[AndrewMciver]

No fan of the current leadership, but you can hardly blame a pandemic (that they have largely controlled) and the financial fallout on them. 

 

Most of the world (except China) are suffering. 

 

Thailand in particular will hurt, because of it's huge dependence on tourism on it's economy. 

[The Barmbeker]

10 hours ago, Michael19641965 said:

Don't put so much blame on the Thai government. The European governments from Sweden to Italy are not acting much better. The only difference is, that travelling within the EU has almost normalized, borders are open and travelling is almost hassle free. There are a few hundred new Corona cases in the big EU countries every day, most of them without symptoms or very minor symptoms, ICU stations in the EU are almost empty. The EU governments have at least understood, that with some measures it is possible to keep new infection numbers very low and the numbers are easily manageable and causing no headaches. The Thai government insists on zero new infections, that is in reality not achievable and an idiotic appoach, unless you lock up the country like North Korea. 

Germany will take down their travel warning for many overseas- countries soon.

Guess which country is among those!