The Thai Economy Is In Crisis

[Steely Dan]

After some negotiation my wife agreed on a figure to pay, she explained that showing them the tax invoice would cause them to lose face and would result in them extracting money for something even more spurious.

the underlying problem in a nutshell ,

and , as blatantly FALSE as the Emperors new clothes ...........................

Of course, I must have made it all up being delusional being mugged after a long flight. Of course customs don't give you a hastily scrawled official looking document without filing a copy away for accounting purposes. Never would they merely pocket their tea money any more than they would sit on sea freight for months whilst extorting money out of some farang. Of course Song Taews treat their customers in a standard manner and border police never have a bad day at the office either.

Thailand operates as a boutique banana republic with the pretensions to being something grander but has more in common with some African regimes than with other asian tigers. Roll on the currency crisis and dont forget to stash your savings in dollars or Euros.

I was afraid that my post should be thus misinterpreted ......................

I was suggesting that the concept of face was comparable to the Emperors new clothes in this instance ,

NOT casting dispersions on your story .

mid

spelling

Mid,

Sorry for jumping to the wrong conclusion, I was strung out with jetlag. As a follow up the wife and I went to immigration and had it confirmed to us that we should not have been charged seeing we only brought in one camera which was allowable as personal posessions. The guideline seems to be one of each type of item is allowable the rest is discretionary, we had 12 packets of tea with us which we were told is more plausable than say bringing in say 20 books to read over a 30 day period. I suspect customs are given revenue quotas to meet and we were just unlucky, though next time we will clear customs in Bangkok rather than having our bags checked through to Chiangmai.

[Mid]

I suspect customs are given revenue quotas to meet and we were just unlucky

suspect your right , and outrageous is an adapt emotive .................

welcome to the land of quality tourists .

[Jai Dee]

BOI seeks ways to boost investment in high-potential industries

Deputy Prime Minister and Industrial Minister Kosit Panpiemras had a meeting with the Board of Investment (BOI) members, and the meeting has agreed for the BOI to find ways to quickly promote investment in the industries with high potentials such as automotive, electronics, metals, petrochemicals, and agriculture. The objective is to boost the export sector of Thailand.

Mr. Kosit says foreign countries are still confident of Thailand and they are continuing to invest in the country. This year, the Thai economy continues to expand. Besides, the eco-car project will be resolved this June.

The BOI has also approved a total budget of 82 billion baht for seven investment projects.

Source: Thai National News Bureau Public Relations Department - 02 May 2007

[llothar]

A lot talks about investment, why is nobody talking about investments in education?

They should have learn't that the uneducated work sector is not a place to build the future.

But yeah, stupid people are easyier to control. TiT.

[Jai Dee]

Thai economy heads for 6-year low

Thailand finance minister Chalongphob Sussangkarn says political uncertainty following last September's coup is threatening the kingdom's economy, which he says could be heading towards its lowest growth in six years.

Thailand's consumer confidence has dropped to a five-year low and the central bank cut its growth forecast for 2007 from five percent to four percent .

Mr Chalongphob told AFP that the government plans to launch measures to boost economic performance but has cautioned against optimism.

"After the coup, people are waiting to see a clear signal as to what the political situation will look like after the next election," he said.

The military-backed government has promised to hold elections in December, but pro-democracy groups have held a series of protests urging Prime Minister Surayud Chulanont to hold them as soon as possible.

The country is also jittery as the Constitutional Court prepares to rule on voting fraud charges against Thailand's two biggest political parties -- Thai Rak Thai and the Democrat Party -- at the end of the month.

If the parties are found guilty, they will be dissolved and their members will be banned from politics for five years, meaning prominent leaders may be excluded from the December polls.

Analysts say a recent escalation in violence in the Islamic insurgency in Thailand's Muslim-majority south is also harming confidence.

Mr Chalongphob says the government is to launch an economic stimulus package, including extending more loans to farmers and grassroots workers from state-owned banks, and easing tax measures.

"We need to inject a certain amount of money to turn the situation around, but it's not going to go overboard," he said.

"We tend to focus more on what can be done this year because after the election in December, we will be gone."

Source: Radio Australia - 03 May 2007

[Mid]

too little , far too late ,

but , thanxs for admitting it's all tits up ..........................................

[Galong]

I predict that foreigners will be blamed for the economy and that violence against foreigners will increase.

[Dakhar]

I can attest that theft has gone up in our area. Renters are behind on rent now by 2 months. Someone stole our Stainless steel mailbox! Lucky we still have our stainless steel gate!!!!

No, being serious, I do not know if direct violence will go up on falangs, but I do agree with the spirit of the prediction. Thais have had a long history of blameing falangs, so I would not be surprised if the poor economy is going to be spun as "The falangs attemt to influene Thailandd's policies." "If you do not obey, we will not invest," type blame game. "So we as a responsable govt have a duty to PUSH back, and protect the Kindom!" "We are a soverign nation, we are the hub of South E. Asia, feel our power.... blah blah blah"

It will only get worse before it gets better.

[cclub75]

Siam Paragon and The Emporium shopping complexes said sales of luxury and brand-name products fell between 5 per cent and 10 per cent in the quarter.

Versace, the luxury apparel and accessory brand, saw sales fall almost 30 per cent in the first three months of the year compared to the same period last year.

And with economic and political uncertainty expected to continue, sales of luxury and brand name products are expected to remain lacklustre for the rest of the year or even decline.

http://www.nationmultimedia.com/2007/05/05...ss_30033419.php

A basic rule : when rich people start to buy less... it smells quite bad for the rest of the population...

[LaoPo]

A basic rule : when rich people start to buy less... it smells quite bad for the rest of the population...

It doesn't smell bad..it stinks, but already since months.

Sales of motobikes are way down also (30% in March alone I believe); and the rich don't buy motobikes...

This all because of the struggle for power and selfprotection by the elite...killing the economy at the same time...

LaoPo

[Naam]

A basic rule : when rich people start to buy less... it smells quite bad for the rest of the population...

but not for us farangs who cherish low inflation.

[LaoPo]

An increasing number of worrying stories:

HOUSING SECTOR

Smaller property firms now failing to secure loans

Work halted on Bt20 billion of projects amid bleak demand outlook - expert

Construction stopped on more than 100 property projects worth up to Bt20 billion in the first quarter of the year as developers failed to get loans from commercial banks, according to a property expert.

Most of the projects belong to small and medium-sized developers and are worth between Bt100 million and Bt500 million each, said Dr Teerachon Manomaiphibul, senior executive director of Property Perfect.

"Their loan applications were turned down due to the bleak demand outlook. They have had to suspend construction. Some of them have decided to sell their projects to other property firms who are stronger financially," he said.

Many of the projects are located in Bangkok at Rangsit, Bang Bua Thong, Bang Na-Trat kilometre 10-30 and Suvinthawong. Most offered detached houses and town houses.

Teerachon said demand in the market had dropped 20 per cent in the first quarter as home-buyers delayed decisions to buy new houses because of fears of deteriorating economic conditions that could affect their income.

Many prospective home-buyers are waiting to see if the new government implements measures to support the property market, especially a possible reduction in the special business tax of 3.3 per cent, the transfer tax of 2 per cent and the one-per-cent mortgage fee.

More here:

http://www.nationmultimedia.com/2007/04/30...ss_30032995.php

Comment: one of the reasons that the Cement industry is down as well.

LaoPo

[Mid]

A basic rule : when rich people start to buy less... it smells quite bad for the rest of the population...

but not for us farangs who cherish low inflation.

no man is an island

[LaoPo]

A basic rule : when rich people start to buy less... it smells quite bad for the rest of the population...

but not for us farangs who cherish low inflation.

Maybe you can explain that to the 45 million poor of LOS; wonder if they know what inflation means ?

sorry for being cynical and my words are not directed as much to you as to the elite in BKK.

LaoPo

[highdiver]

An increasing number of worrying stories:

HOUSING SECTOR

Smaller property firms now failing to secure loans

Work halted on Bt20 billion of projects amid bleak demand outlook - expert

Construction stopped on more than 100 property projects worth up to Bt20 billion in the first quarter of the year as developers failed to get loans from commercial banks, according to a property expert.

Most of the projects belong to small and medium-sized developers and are worth between Bt100 million and Bt500 million each, said Dr Teerachon Manomaiphibul, senior executive director of Property Perfect.

"Their loan applications were turned down due to the bleak demand outlook. They have had to suspend construction. Some of them have decided to sell their projects to other property firms who are stronger financially," he said.

Many of the projects are located in Bangkok at Rangsit, Bang Bua Thong, Bang Na-Trat kilometre 10-30 and Suvinthawong. Most offered detached houses and town houses.

Teerachon said demand in the market had dropped 20 per cent in the first quarter as home-buyers delayed decisions to buy new houses because of fears of deteriorating economic conditions that could affect their income.

Many prospective home-buyers are waiting to see if the new government implements measures to support the property market, especially a possible reduction in the special business tax of 3.3 per cent, the transfer tax of 2 per cent and the one-per-cent mortgage fee.

More here:

http://www.nationmultimedia.com/2007/04/30...ss_30032995.php

Comment: one of the reasons that the Cement industry is down as well.

LaoPo

the above is definatly a sign of financial crisis ready too boom.but its reasons are far from thailand.

the USA and the europeans are reporting the same problems in real estate and those indicators are just building up.

the US is the larges consumer market in the world and if they go down everyone else will follow.

I am realy concerned with the US economy as the indicators are that they have a housing recession, an auto recession, a manufacturing recession, and a real investment recession already present. the domino effect is building up..

Sorry for sounding so doomsday but I am realy worried about this.

the impact on thailand will be felt when those export to us and europe will go down and forign investors hungry for cash will try and liquidate at the same time.

[cclub75]

I am realy concerned with the US economy as the indicators are that they have a housing recession, an auto recession, a manufacturing recession, and a real investment recession already present. the domino effect is building up..

Sorry for sounding so doomsday but I am realy worried about this.

the impact on thailand will be felt when those export to us and europe will go down and forign investors hungry for cash will try and liquidate at the same time.

I share your fears. To see the DJ over 13 000 points is surreal... Anyway.

As for Thailand, the coming US recession will have some effects.

My main fear is the perfect storm : recession in US + crisis in Thailand because of internal factors.

A recession in the US will remove a lot of gas from the main engine of thai economy : exports.

A that point, a -good- government can make a difference... Or at least, try.

The problem is that with the current string of bozos that pretend to "run" Thailand... well they would probably make the situation even worse.

I should add that we have in Thailand a very specific... political issue on the horizon. This is why I do believe that the military will stay in power until this specific political issue is settled. And I'm not speaking about Thaksin.

This process could last a long time...

Only the dreamers can believe that we will have -free- elections by the end of 2007... And that everything will go back to normal.

Edited May 5, 2007 by cclub75

[midas]

the above is definatly a sign of financial crisis ready too boom.but its reasons are far from thailand.

the USA and the europeans are reporting the same problems in real estate and those indicators are just building up.

the US is the larges consumer market in the world and if they go down everyone else will follow.

I am realy concerned with the US economy as the indicators are that they have a housing recession, an auto recession, a manufacturing recession, and a real investment recession already present. the domino effect is building up..

Sorry for sounding so doomsday but I am realy worried about this.

the impact on thailand will be felt when those export to us and europe will go down and forign investors hungry for cash will try and liquidate at the same time.

Yes and as the Dow keeps on raging ahead and the Thai market breaks through the 700 again -

we should bear in mind.......................................................:-

The Dow Jones Industrials Average features prominently in the mainstream financial press because it is the principal tool used by wholesale vendors of stock to sucker the ordinary retail investor into buying at market tops. On a 10-year chart for the DJIA it broke new highs last year, an event that was accompanied by great fanfare in the media, who have since been trumpeting the glorious achievements of the "bull market" ever since. The problem is that the Dow Jones Industrials is not a true representation of the state of the market as a whole, being made up as it is of a narrow basket of very high cap stocks.

The real stock market is shown much more accurately and faithfully by the relatively neglected S&500 index, the chart for which tells a very different story. On its 10-year chart we can see that it has definitely not broken out to new highs, and is instead buckling beneath the heavy resistance approaching its 2000 highs, with which it is danger of forming a Double Top.

If you factor in the decline of the dollar over the past 4 years, the gains during this period look nowhere near as impressive. The 10-year chart of the S&P500 chart plotted against the Euro exposes the ugly and sordid reality that the so-called bull market of the past 4 years is nothing more than an anemic bear market rally, that has taken the form of a bearish Rising Wedge - and some mighty unpleasant stuff is likely to hit the fan once it breaks down from this pattern, which it is now close to doing........................

[MiG16]

well to those that maybe interested in this issue, Im aware of a seminar that you might want to look at:

Seminar: Rule of Law and Economic Freedom

Judge Vichai Ariyanuntaka of the Supreme Court will speak on Rethinking Intellectual Property Rights Enforcement at a seminar on The Importance of Rule of Law in Economic Freedom on May 21st at the Arnoma Hotel, Bangkok. The Keynote address will be followed by a panel discussion with prominent panellists from United Kingdom, India and Thailand. The session will be moderated by Dr. Thitinan Pongsudhirak.

This seminar will look at the role of Rule of Law in safeguarding the proper and efficient functioning of market economies. The seminar will be in English with Thai interpretation. Seats are limited. For reservations call Ms. Kaweeworn on 02 365 0570.

theres also a website, but I think Im not suppose to post URL .... the programme can be requested through that phone number I believe.....

Its free of charge......and open to public...but i think mainly those invited are corporates, government and media people.

[Steely Dan]

the above is definatly a sign of financial crisis ready too boom.but its reasons are far from thailand.

the USA and the europeans are reporting the same problems in real estate and those indicators are just building up.

the US is the larges consumer market in the world and if they go down everyone else will follow.

I am realy concerned with the US economy as the indicators are that they have a housing recession, an auto recession, a manufacturing recession, and a real investment recession already present. the domino effect is building up..

Sorry for sounding so doomsday but I am realy worried about this.

the impact on thailand will be felt when those export to us and europe will go down and forign investors hungry for cash will try and liquidate at the same time.

Yes and as the Dow keeps on raging ahead and the Thai market breaks through the 700 again -

we should bear in mind.......................................................:-

The Dow Jones Industrials Average features prominently in the mainstream financial press because it is the principal tool used by wholesale vendors of stock to sucker the ordinary retail investor into buying at market tops. On a 10-year chart for the DJIA it broke new highs last year, an event that was accompanied by great fanfare in the media, who have since been trumpeting the glorious achievements of the "bull market" ever since. The problem is that the Dow Jones Industrials is not a true representation of the state of the market as a whole, being made up as it is of a narrow basket of very high cap stocks.

The real stock market is shown much more accurately and faithfully by the relatively neglected S&500 index, the chart for which tells a very different story. On its 10-year chart we can see that it has definitely not broken out to new highs, and is instead buckling beneath the heavy resistance approaching its 2000 highs, with which it is danger of forming a Double Top.

If you factor in the decline of the dollar over the past 4 years, the gains during this period look nowhere near as impressive. The 10-year chart of the S&P500 chart plotted against the Euro exposes the ugly and sordid reality that the so-called bull market of the past 4 years is nothing more than an anemic bear market rally, that has taken the form of a bearish Rising Wedge - and some mighty unpleasant stuff is likely to hit the fan once it breaks down from this pattern, which it is now close to doing........................

Phew! You must be reading the same books as me. I also find the Baht's strength surprising given matters parochial and expect a hedge fund inspired collapse at some point.

[Mid]

Govt's revenue collection missed target

May 9, 2007 : Last updated 03:37 pm (Thai local time)

The Nation

The government's net revenue collection from October to April missed its target by Bt6.93 billion, or 1 percent, due partly to delays in revenue expected from state enterprises in April, the Finance Ministry said Wednesday.

as if further proof is necessary .......................

[cclub75]

The "little dirty music of the crisis" is becoming louder.

Here is the daily harvest :

-Tax revenues lower than expected : in 7 month (fiscal year) -1 % compare to target.

But the 2 points interesting : the trend is much worse. In april , it's -9 %...

And VAT collection : -3.5 % compare to target. VAT is one of the best indicator regarding the "health" of the economy.

However, and like always, the gvt is in denial. The spokeman said that for the whole year (september, end of current fiscal year), the "government might miss that target by 1-1.5 per cent. But he said it would not be a serious issue matter."

Again, it's a gross mistake. The first semester was still okay. But the second will take the "hard landing" in full face.

To think that the situation of the economy could improve until september is not even whisfull thinking : it's just plain moon thinking.

So the budget deficit is likely to be higher than the forecast.

http://www.nationmultimedia.com/2007/05/10...ss_30033817.php

-CPF plunges to Bt1.14-bn loss in Q1

Compare to profit of 550 million in last year's first quarter.

CPF is an "emblematic" thai company. And a very good "thermometer" of the economic situation. The one on the ground, for the day to day life of thai people (69 % of turn over is made on the domestic market).

http://www.nationmultimedia.com/2007/05/10...ss_30033833.php

See you tomorrow for the next bad news...

Edited May 9, 2007 by cclub75

[bingobongo]

this won't help.....nothing like newly minted graduates going nowhere.......

Jobs to get scarce as industrial activity dips

About 700,000 new graduates face bleak prospects in finding jobs as the worst economic conditions in 10 years force many manufacturers to reduce output.

A survey by the University of the Thai Chamber of Commerce (UTCC) released yesterday shows that the industrial sector's revenue is projected to slump by 34 per cent in the second quarter this year, due to negative factors including rising oil prices, political instability and an economic downwards trend expected to trigger an unemployment problem.

http://www.nationmultimedia.com/2007/05/04...es_30033359.php

[bingobongo]

lowest in 5 years.......the horror.....

Consumer confidence index hits lowest level in five years

http://etna.mcot.net/query.php?nid=29330

[cclub75]

An important one today.

Central bank may end capital controls

(dpa) - The Bank of Thaliand may lift its controversial capital controls after acknowledging that they have failed to slow the appreciation of the baht currency against the dollar, BoT governor Tarisa Watanagase said Thursday.

Ms Tarisa acknowledged that huge capital inflows into Asia had caused the baht to appreciate 4.3 per cent against the dollar already this year, after appreciating more than 8 per cent against the greenback in 2006.

http://www.bangkokpost.com/breaking_news/b...s.php?id=118658

Why ? First, BOT told us that a THB under 35 would be the end of the thai exportations.

Then, they told us it was the fault of :

-foreign speculators

-then the thai exporters themselves

-and the final straw : some thai commercial banks (that were selling their USD) !

Miss Doctor Tarisa was standing, against the wind, with pride (but without prejudice). It was beautifull.

Of course, in real life, we had some casualties and secondary effects : THB continues to increase despite the capital control, panic in stock exchange, fear among foreign investors, an hilarious dual rates for currency exchange (on and off shore), global confusions, and eventually less money coming in and some disorders in the economy.

So basically, Tarisa tells us today... that she was 100 % wrong, all the way, right from the begining. It's astonishing.

And, I believe, this is a serious sign of weakness : they aknowledge that the capital control was like a brake on foreign investments and for the whole thai economy. And because the situation is getting bad, they have to make this U-turn.

Poor Miss Tarisa. Must be really painfull...

Edited May 10, 2007 by cclub75

[Steely Dan]

An important one today.

Central bank may end capital controls

(dpa) - The Bank of Thaliand may lift its controversial capital controls after acknowledging that they have failed to slow the appreciation of the baht currency against the dollar, BoT governor Tarisa Watanagase said Thursday.

Ms Tarisa acknowledged that huge capital inflows into Asia had caused the baht to appreciate 4.3 per cent against the dollar already this year, after appreciating more than 8 per cent against the greenback in 2006.

http://www.bangkokpost.com/breaking_news/b...s.php?id=118658

Why ? First, BOT told us that a THB under 35 would be the end of the thai exportations.

Then, they told us it was the fault of :

-foreign speculators

-then the thai exporters themselves

-and the final straw : some thai commercial banks (that were selling their USD) !

Miss Doctor Tarisa was standing, against the wind, with pride (but without prejudice). It was beautifull.

Of course, in real life, we had some casualties and secondary effects : THB continues to increase despite the capital control, panic in stock exchange, fear among foreign investors, an hilarious dual rates for currency exchange (on and off shore), global confusions, and eventually less money coming in and some disorders in the economy.

So basically, Tarisa tells us today... that she was 100 % wrong, all the way, right from the begining. It's astonishing.

And, I believe, this is a serious sign of weakness : they aknowledge that the capital control was like a brake on foreign investments and for the whole thai economy. And because the situation is getting bad, they have to make this U-turn.

Poor Miss Tarisa. Must be really painfull...

I most welcome this news. The comedy dual rates had many side effects. First it meant that anyone taking say 1 million Baht to Singapore could convert the money there have a holiday fly back and convert the money back into Baht having a free holiday to boot - (I would add that the stress of doing this made it not worth the bother and serial flyers would soon have attracted attention from customs). Secondly the sort of foreign money they wanted probably dried up to a degree replaced by hedge fund speculators who could afford to play the long game until exchange controls were lifted .

So having admitted trying to keep a lid on the Baht had failed what does Miss Tarisa think will happen when controls are lifted? Maybe perhaps that the Baht may rise a bit but foreign investment would help prop up a faltering economy? I suspect that speculators will seize on this as a sign that the economy is about to hit the buffers and sell Baht like it's going out of fashion. For us mere mortals at least the end of the capital controls will mean that we can hedge Baht assets again by spread betting on it's depreciation (Something not possible with the Capital controls in place).

[Jai Dee]

Thai car sales drop 7.3 percent in April

Thai car sales continued to slide in April, falling 7.3 percent from the same month last year, but automakers were hopeful of a boost as new models are released, the industry said in a statement Friday.

Total vehicle sales in April registered at 49,658 units, dropping in every category from last year, Toyota Motor's Thai unit said in a statement.

Sales of passenger cars dropped 8.2 percent, one-tonne pickups fell 5.6 percent, and commercial vehicles were down 2.5 percent.

"Although April car sales dropped for the fourth consecutive month, the fall is likely to improve as new models enter the market and lower interest rates stimulate consumer spending," the statement said.

However, Toyota predicted that sales would drop again in May, which is the back-to-school period in Thailand when families spend money on tuition for the new academic year. May also marks the start of the rainy season, when sales are typically slow.

For the first four months of the year, vehicle sales totaled 187,928 units, down 15.9 percent from same period last year.

Japanese auto giants Toyota, Isuzu, and Honda accounted for 74.2 percent of the market, the statement said.

Toyota said it still expects sales this year to reach 700,000 units, up 3.0 percent from 2006.

Source: The Nation - 11 May 2007

[cclub75]

Thai car sales drop 7.3 percent in April

Thai car sales continued to slide in April, falling 7.3 percent from the same month last year, but automakers were hopeful of a boost as new models are released, the industry said in a statement Friday.

"Although April car sales dropped for the fourth consecutive month, the fall is likely to improve as new models enter the market and lower interest rates stimulate consumer spending," the statement said.

In march, we had the glorious 28th Bangkok International Motor Show... No effect.

Now, what a spine chill, we are going to have "new models". Combined to interest rates (no big change in MLR, despite the decrease of BOT), that should lift up the market.

When they will understand that it's not a matter of color or design of cars : it's a problem of solvability.

Every thai would like to buy a BMW : they just can't afford it.

[Old Man River]

An important one today.

Central bank may end capital controls

(dpa) - The Bank of Thaliand may lift its controversial capital controls after acknowledging that they have failed to slow the appreciation of the baht currency against the dollar, BoT governor Tarisa Watanagase said Thursday.

Ms Tarisa acknowledged that huge capital inflows into Asia had caused the baht to appreciate 4.3 per cent against the dollar already this year, after appreciating more than 8 per cent against the greenback in 2006.

http://www.bangkokpost.com/breaking_news/b...s.php?id=118658

Why ? First, BOT told us that a THB under 35 would be the end of the thai exportations.

Then, they told us it was the fault of :

-foreign speculators

-then the thai exporters themselves

-and the final straw : some thai commercial banks (that were selling their USD) !

Miss Doctor Tarisa was standing, against the wind, with pride (but without prejudice). It was beautifull.

Of course, in real life, we had some casualties and secondary effects : THB continues to increase despite the capital control, panic in stock exchange, fear among foreign investors, an hilarious dual rates for currency exchange (on and off shore), global confusions, and eventually less money coming in and some disorders in the economy.

So basically, Tarisa tells us today... that she was 100 % wrong, all the way, right from the begining. It's astonishing.

And, I believe, this is a serious sign of weakness : they aknowledge that the capital control was like a brake on foreign investments and for the whole thai economy. And because the situation is getting bad, they have to make this U-turn.

Poor Miss Tarisa. Must be really painfull...

Well, actually, it was foreign speculators and then it was exporters themselves (both foreign and Thai) and then it was a some of the Thai banks. The capital controls closed down opportunities for speculators in the debt markets, but opened up arbitrage opportunities for others via the offshore/onshore markets. As opportunities arose, different groups that could benefit, did. Now, with the 100% hedge requirement in place, the capital controls are no longer needed.

[nick2k]

I got confused. ..so, does that mean the baht will get stronger or will it get weaker?

[Jai Dee]

Finance Minister says Thai economy will rebound after the general election

Minister of Finance says the Thai economy will rebound in the next 2-3 months due to the general election at the end of the year in addtion to the government’s mega-projects, including the electric train route-extension project.

Minister of Finance Chalongphob Susangkarn (ฉลองภพ สุสังกร์กาญจน์) delivered a special lecture on next year’s economic policy, saying that investor confidence will rise again after the general election and the overall economic situation will be improved. However, the export of garments is expected to decrease by 19%.

As for the government’s financial policy, the minister says the Ministry is able to relax its policies so as to bolster the economy. Both the relaxed financial policy and the continuously decreased inflation rate will help strengthen the economy.

The minister adds that this year's fiscal deficit and the state's collection of taxes which is lower than expected might make the government consider launching more measures to stimulate the economy.

Source: Thai National News Bureau Public Relations Department - 11 May 2007