Prime Minister Abhisit Vejjajiva Discusses the Challenges of Change with the FCCT
In reaffrming Thailand’s commitment to open, transparent and democratic governance, on 14 January 2009 Prime Minister Abhisit Vejjajiva spoke with members of the Foreign Correspondence Club of Thailand at an event billed as “Meeting the Challenges of Change.” In his keynote address to a room flled with eager listeners, Mr. Abhisit recounted both the litany of challenges that confront his government and Thailand, and the considerable success that has been achieved over the past year.
“With the economy and the political situation, the challenges for the country in the past year were enormous,” the prime minister said. “We have a completely different outlook today.”
The prime minister spoke of actual improvement in Thailand’s political landscape and outlined criteria to be met before the next election would be called. “If we stick to the democratic approach that we have taken, the Thai people and Thai society will be stronger,” he stated.
On the economic front, he was rightly able to point to the rather early upturn in the economy, quarter over quarter, adding that he was confdent the GDP would grow 3.5% in the current year. He went over the steps that had been taken by his government early on to mitigate the impact of the global recession, including payments to senior citizens and the national stimulus package that injected needed liquidity into the economy at a crucial time. The prime minister stated that the frst stimulus package worked, and now we are into a major second package.
Development and Justice
The prime minister also noted measures taken with regard to education and improving the situation in the five southern provinces, paving the way for economic development there.
In this regard, it should be recalled that Thailand has plans for robust economic development of the southern region of the country, along the lines of the Eastern Seaboard Development. In the South, development would not only create jobs and opportunity for local residents but also enable Thailand to better compete in the global economy, opening additional transit routes into neighboring countries, India, and the Middle East.
A number of questions were raised concerning the ongoing injunction of projects in the Map Ta Phut area. The prime minister recounted that of the original projects halted by an injunction imposed by the Administrative Court, several have since been freed to proceed with operations following appeal. Of those remaining before the court, Mr. Abhisit said that not all had been affected equally, as many had not even begun construction. In fact, at an earlier address organized by the Economic Reporters Association, the prime minister is reported to have indicated that 19 of the remaining 64 suspended projects have the potential to proceed.
The Cabinet has approved the establ ishment of a coordinating committee that would meet to evaluate the environmental and health impacts of industrial projects. The government has already endorsed health impact assessment guidelines for industrial projects, in order to provide clarity and enable companies with suspended projects to prepare HIA studies in compliance with Article 67, Section 2 of the Constitution.
The prime minister noted that the measures his government has put in place to resolve the diffculties at Map Ta Phut have created clarity and would resolve the outstanding issues within the next several months.
Mr. Abhisit’s comments on an improving economy can fnd support in fgures just released by the Thailand Board of Investment (BOI). Even with the economic downturn globally, foreign direct investment in the country shot past 300 billion baht in 2009, an increase of 18% y-o-y.
Thailand’s consumer confdence index also rose sharply to 77.7 points in December 2009, the second consecutive monthly increase, according to a survey by the University of the Thai Chamber of Commerce. Expenditure on cars, houses and travel in particular have climbed to their highest rates in four years. Stronger consumer confdence is a result of the economic upswing, stimulus measures, lower costs and an increase in the local minimum wage, the chamber explained.
In his speech, Prime Minister Abhisit also noted that 1.6 million foreign visitors visited the country in December 2009, one of the highest monthly fgures. He called the development a real indication that the Thai economy is making a recovery.
All in all, it was clear from the prime minister’s remarks to the foreign press that the country is on the rebound, the economy is getting stronger and the political situation has calmed. Investor confdence in Thailand is also evident from the net applications for investment promotion received at the BOI, which have reached a four decade high.
Additional evidence that Thailand remains a very attractive location within the international community for foreign direct investment has been revealed in the 2009 net applications for investment promotion received at the Board of Investment. Just as consumer confdence ticks up, the BOI reports a record number as more companies seek BOI support, marking a 40 year milestone.
Japanese investors maintained the country leadership, with 266 projects valued at 77.38 billion baht. The US had 56 projects valued at 34.63 billion baht. ASEAN countries recorded a signifcant level of applications for 144 projects at 41.66 billion baht, with the European Union with 153 projects at 80.21 billion baht.
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