Thailand
Thailand: Supattanapong urges positive approach
Deputy Prime Minister Supattanapong Punmeechaow has called on the public and private sectors to stay positive to help boost the country’s economic recovery next year.
“Almost all economic statistics have shown improving trends in the country including household consumption, private consumption, investment, exports, and private investment after the country’s reopening on Nov 1,” Mr Supattanapong said at a seminar on Monday. “The cooperation from the public and private sectors is hence desperately needed to maintain the sentiment and momentum until next year to help revitalise the overall economy.”
Mr Supattanapong said he is confident that investment applications filed to the Board of Investment (BoI) will reach 600 billion baht this year, which is close to the value achieved in 2019.
The total value of investment applications filed by both local and overseas investors to the BoI in the first nine months of this year amounted to 520 billion baht, more than double the 217 billion worth of applications filed during the same period last year.
The applications stood at 756 billion baht in 2019 and 481 billion baht in 2020.
According to the BoI, in terms of the number of projects, the first nine months of 2021 saw 1,273 project applications, up from 1,037 year-on-year.
There were 1,623 project applications for the whole of 2020.
The 12 targeted sectors represented a total of 605 applications, with a combined investment value of 270 billion baht, more than the 533 applications with a value of 127 billion baht in the same period the year before.
“The government believes the investment values in electric vehicles, energy, medical services and other targeted industries, especially those in the Eastern Economic Corridor, will play a key role in driving economic growth over the next 3-4 years.”
Mr Supattanapong said that although tourism is the only sector that has yet to recover, statistics in November for international tourist arrivals showed spending of 70,000 baht per head per trip, up from a previous figure of 40,000-50,000 baht per head per trip, in line with the government’s policy of drawing high-quality visitors to the country.
The government also pledged to come up with additional measures to stimulate the recovery next year, while continued infrastructure development over the next 3-4 years is expected to help boost the Thai economy over the period, Mr Supattanapong said.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said that after the Covid-19 pandemic Thailand should focus more on strengthening domestic consumption and beefing up the country’s competitiveness by improving laws and regulations to attract foreign investors.
The government should speed up free-trade agreement negotiations and join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, he said, while calling on the government to function as the facilitator rather than the regulator and support the private sector to share a greater part in the country’s economic rehabilitation.
In a separate development, Finance Minister Arkhom Termpittayapaisith on Monday said that his ministry has already finished and submitted new packages to stimulate spending during the festive seasons, a key part of which is offering a tax deduction for individual taxpayers when purchasing goods or services.
According to Mr Arkhom, the packages with features similar to the previous Shop Dee Mee Khuen scheme, that offers a tax deduction for individual taxpayers of up to 30,000 baht when purchasing goods or services, will entice people with high purchasing power and those who are in the tax system to pay more during the festive seasons.
“We’ve already submitted the measures to the cabinet, but it now rests upon the premier whether to bring it into the cabinet for approval at today [Dec 14]’s or next week’s meeting,” Mr Supattanapong said.
According to Mr Arkhom, as the economy starts recovering, as indicated by many statistics including domestic sentiment, manufacturing production and higher exports, the ministry may opt to phase out cash handout schemes such as the Khon La Khrueng co-payment subsidy scheme.
Source: https://www.bangkokpost.com/business/2231347/supattanapong-urges-positive-approach