PM defends stimulus plan

Published: 15/01/2009 at 09:40 PM
Online news: Breakingnews

Prime Minister Abhisit Vejjajiva used the Post Forum stage to defend his government's stimulus package, saying that the projects have targeted the right groups and that they are intended to boost economy from the first quarter of this year onwards.

Mr Abhisit defended one of the most criticised projects -- the scheme to grant a one-off 2,000-baht allowance to eight million employees under the Social Security Fund and 1.4 million civil servants making less than 15,000 baht per month.

"We want to help employees with the low income," he said. "What we do is to give cash into their hands to induce spending by injecting cash into the economy. This would help the economy in the first, second and third quarters."

The premier also said that the government is emphasised on boosting Thailand's tourism.

Next week, the government will propose measures aimed at stimulating tourism, including the waives of visa fees for tourists for three months.

He then vowed to continue mega-projects including the construction of electric train and dual rail projects.

"I am not going to boast by committing how much the economy will grow, but I can assure you that the government is committing to to spur economy and to lift the quality of life of all the Thais," he said.

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Minnie

Discussion 9 : 17/01/2009 at 05:36 AM9
Ama...do you live in cloud cuckoo land...when people worry about jobs and security...they do not spend their money..they save it.
It your incompetent leader really wanted to help Thailand he would have reduced corporate tax, reduced export and import duty, PLOUGHED the money intoInfrastructure projects WHICH he himself said is NOT a priority and got Thailand moving that way..ratherthan paying white collar, civil servants and additional 2000 bht thereby increasing inflation, as if Thailand did not have enough inflation to worry about..

You live in fantasy land
David

Discussion 8 : 16/01/2009 at 12:42 PM8
The US economy not the only place going down.

They will be the last to cave in, if the do.

All States in the USA are richer than ALL Thailand!

Most of Thailand is still a fish and rice country!
soveny

Discussion 7 : 16/01/2009 at 12:18 PM7
It may be the case that Abhisit is realizing that a new election is in the near future. Abhisit says the 2000 bath is to the right group. This groups vote is crusial in the next election. Its a golden situation for Abhisit. He can buy votes with taxpayers money, the Demcrats dont have to puy up a singel bath. Who says he is stupid?
Cashy

Discussion 6 : 16/01/2009 at 10:07 AM6
Shouldn't the US dollar be going down some more (against Thailand and other currencies) instead of strengthening?

The US economy is in a nose dive, its banks are faltering and near collapse, the US consumers have used up all their credit cards and defaulting on mortgages and other loans, the US auto companies are collapsing and as nearly bankrupt as the US banks. And the US government keeps on feeding bail out money and credit to any and every American company near bankruptcy. And a foreigner investing in US Treasury note would be receiving near zero interest rate return! Whoa!

So what is all this fuss about the Thai Baht looking strong agains the US dollar?
O. B. Ama

Discussion 5 : 16/01/2009 at 09:08 AM5
The Abhisit government is doing the right thing. In principle, more Thai government spending should stimulate Thailand's economy now weakened by marked slowdown in export markets due to the global financial turbulence.

The one-off Baht 2,000 give-away to the low income earners will prod immediate spending because the money will be surely be spent, not saved. That should provide the early stimulation during the first/second quarter of Y2009.

The whole world is seizing up because global credit has frozen (from the US subprime crisis). Abhisit should pay attention to make sure that liquidity and credit continues to flow in Thailand - - these Thai bankers could not be relied upon to keep loans flowing to the companies and industries in need, particularly the exporting companies.

Business and consumer confidence is dissipating and Abhisit government so far is making good moves to revive that sagging confidence.
Kenny

Discussion 4 : 16/01/2009 at 01:51 AM4
The dollar rose against the euro when ECB cut borrowing costs by 50 basis points.

BUT ONLY IN THAILAND:-
The baht rose against the dollar when the Thai Central Bank cut borrowing costs by 75 basis points.

See my point, higher cut by Thai Central Bank and still the Baht rose against the dollar. Everywhere else in the whole, it will weaken their currencies except for Thailand.
John

Discussion 3 : 15/01/2009 at 11:13 PM3
Devalue the baht, that would help tourism, nothing else will. In case they hadn't noticed, foreigners don't have as much spare cash to go on holiday with due to the global economic problems.
NonB

Discussion 2 : 15/01/2009 at 10:30 PM2
Next week, the government will propose measures aimed at stimulating tourism, including the waives of visa fees for tourists for three months.

Yes this is the very item that has slowed Thai tourism a visa fee?...I think not

Will the 15 day visa exemption still count on land borders or will everyone get 90 days now ? if by land or Air arrival

Will My Non B visa be free for 90 days

What happens after high season ???? in 3 months time ...maybe a 6 month no visa fee LOL

Idiotic
voice of reason

Discussion 1 : 15/01/2009 at 10:22 PM1
Oh my word! How naive is Abhisit? Does he really think that we will believe it will work because he says it will? There have been several occassions the world has had reason to laugh at thailand. I hope he said this in english, the video clips will be on youtube so that everyone can get a good laugh!

So the new question is; Is Abhisit niave or stupid? Or does he think everyone else is naive and/or stupid?

Someone famously once said that "A lot of education can be poured into an empty head"

PM defends stimulus plan