(L-r), Analysts Dr. Ekniti
Nitithanprapas, Dr. Anusorn Tamajai,
and Dr. Kobsak Pootrakul, pictured with the Money Channel’s presenter,
Naowarat Charoenprapin, pictured at the recent Stock Exchange of Thailand’s
investment presentation in Chiang Mai.
Thai financial analysts have stated that the world economy has hit bottom,
with little likelihood of further deterioration, and have suggested that, to
further Thailand’s economic recovery, the Kingdom should expand its business
links with China and India.
Bank of Thailand executive Dr. Kobsak Pootrakul considers that, although the
world recession is the worst in 89 years, an upswing is imminent. However,
full recovery will take 3-4 years, as the crash was caused by a lack of
liquidity in financial institutions.
When asked about Thailand’s economy, Dr. Kobsak stated that it is dependent
on the world economy as the majority of its income comes from exports, which
have fallen considerably due to a lack of purchasing power in its core
marketplaces abroad. Investment in Thailand has also fallen due to a lack of
liquidity worldwide. Dr. Kobsak concluded that the speed of the Thai
economy’s recovery will depend on worldwide recovery.
A spokesman from the Fiscal Policy Office, Dr. Ekniti Nitithanprapas,
reiterated Dr. Lobsak’s initial statement, adding that a total of 70% of the
kingdom’s GDP comes from exports and the service industry. He noted that the
unstable political situation had caused a drop in domestic consumption, but
reported that, in 3 export sectors, electronics, jewellery and processed
products, demand from China and India (countries relatively unaffected by
the crash) had increased.
Dr. Ekniti considers that the solution for the Thai economy rests on
government policy as the springboard for improved confidence amongst
investors and consumers. Short term policy needs to focus on immediate aid
to the poor and cash for projects to stimulate SME businesses as well as
larger concerns. Long term policy needs to focus on the reduction of
corruption and the streamlining of government investment projects.
A government grant of 1.86 million baht was recently given to Chiang Mai
under the Thai Khem Khang project, to be invested in mainly medical
education based on the establishment of the city as a medical hub. A number
of dams will also be built to solve water shortage problems in agricultural