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  • Thailand : New economic team to turn economy around

    New economic team to turn economy around
    19/08/2015

    Somkid Jatusripitak, deputy prime minister, finance minister & commerce minister in Thaksin Shinawatra's government, to head new economic team to turn economy around.



    ECONOMICS & POLITICS

    New economic team tipped for cabinet


    Ministers awaiting royal endorsement
    19/08/2015
    Post Reporters

    After Prime Minister Prayut Chan-o-cha yesterday submitted a new cabinet list for royal endorsement, it was confirmed that six economic ministers in five ministries are being replaced by a new team led by Somkid Jatusripitak, who will replace MR Pridiyathorn Devakula, say people familiar with the new line-up.

    Until Gen Prayut declared his intentions last week, speculation had run rife for two months about the possibility of a cabinet reshuffle, ever since the prime minister expressed frustration about slow economic improvement.

    SOMKID AS DEPUTY PRIME MINISTER

    It has been widely expected that Mr Somkid, an adviser to the prime minister, would become the new deputy prime minister replacing MR Pridiyathorn.

    Mr Somkid served as deputy prime minister, finance minister and commerce minister in Thaksin Shinawatra's government.

    Speculation over Mr Somkid's appointment was strengthened when he resigned as chairman of Saha Pathana Inter-Holding Plc yesterday.

    The law prohibits ministers from holding positions in any company in order to prevent conflicts of interest.

    NEW COMMERCE MINISTER

    A source said Suvit Maesincee, who also resigned yesterday as a board member of Siam Food Products Plc, would replace Deputy Commerce Minister Apiradi Tantraporn, who is now tipped to head the Commerce Ministry.

    Mr Suvit was a vice-minister under Mr Somkid when he was serving in the Thaksin government.

    Commerce Minister Chatchai Sarikulya, who is also a key member of the National Council for Peace and Order (NCPO), is reportedly being moved to another post.

    NEW FINANCE MINISTER


    Apisak Tantivorawong, who has been a candidate for finance minister since the beginning of this government, will now take up that position, replacing Sommai Phasee, a high-ranking official said.

    Mr Apisak also resigned yesterday as a board member at Quality Houses Plc.

    Kittiya Todhanakasem, a first senior executive vice-president of Krungthai Bank (KTB), said Mr Apisak, who is tipped to be the new finance minister, is suitable to rein in Thailand's economic slowdown.

    Given his capabilities and good morals, Mr Apisak is an excellent choice to help turn around the economy, she said.

    Mr Apisak was president of state-owned KTB for eight years before retiring in late 2012.

    Prior to taking the helm at KTB, he was president of Siam City Bank, which has since been integrated into Thanachart Bank.

    NEW INDUSTRY MINISTER

    Also, industry permanent secretary Atchaka Sibunruang will become the industry minister, replacing Chakramon Phasukvanich.

    Mrs Atchaka has served for decades on the Board of Investment including as secretary-general before her appointment as permanent secretary.

    NEW TRANSPORT MINISTER

    Meanwhile, ACM Prajin Juntong, the transport minister and a key member of the NCPO, is also being removed and replaced by current Deputy Transport Minister Arkhom Termpittayapaisith.

    Mr Arkhom served as secretary-general of the National Economic and Social Development Board before being appointed as deputy transport minister.

    NEW ICT MINISTER

    Information and Communication Technology Minister Pornchai Rujiprapa, meanwhile, is likely to be replaced by Bangkok University president Uttama Savanayana. Mr Pornchai has already acknowledged he will be replaced.

    bangkokpost.com
    http://thailandchatter.com/showthrea...ll=1#post45112

  • #2
    Thaksin thinks, Prayuth acts.

    Comment


    • #3
      Originally posted by Mid View Post
      .

      SOMKID AS DEPUTY PRIME MINISTER
      I always say, put some kid in charge of the finances, and things will turn around for sure.

      Comment


      • #4
        Thailand's economic point man a divisive figure
        TAMAKI KYOZUKA
        August 20, 2015


        Somkid Jatusripitak

        BANGKOK -- The head of Thailand's military government is shaking up his cabinet in a bid to improve the economy, and the choice for overseeing economic affairs is a man who may become yet another point of contention against the embattled junta.

        Interim Prime Minister Prayuth Chan-ocha is removing several members of his economic inner circle, including Pridiyathorn Devakula, the deputy prime minister in charge of economic matters. Pridiyathorn will be replaced by Somkid Jatusripitak, who served as both deputy prime minister and finance minister in the administration of former Prime Minister Thaksin Shinawatra. The appointment is a flashpoint both the Thaksin faction and the anti-Thaksin faction, potentially causing more problems for a government already rocked by bombing attacks.

        The shakeup appears to have the consent of King Bhumibol Adulyadej of Thailand, with the government to officially announce the changes soon. Prayuth insisted that the move does not represent his government bending to criticisms against current economic policies but an effort to "assemble the best team."

        The lagging economic recovery has undermined the confidence of the Thai public and foreign investors in the effectiveness of the interim government, which took over in a coup in May 2014. Around $8 billion in public spending fell flat, and the government was forced to bring 2015 GDP growth estimates of 3-4% down to between 2.7% and 3.2% on Monday.

        Somkid currently serves as an adviser to the military government. He has deep connections to China, where he visited in July 2014 and secured a deal to have the Chinese cooperate on rail projects. However, his experience comes with an asterisk.


        Pridiyathorn Devakula

        When Thaksin was prime minister in the early-to-mid 2000s, he had a testy relationship with the military, and Somkid -- a former economist turned finance then commerce minister -- was considered to be his right-hand man. Somkid is said to have engineered the so-called "Thaksinomics" policies that embraced generous programs for the lower class and boosted Thaksin's popularity. Because of his position in government, Somkid also intervened in monetary policy, which caused a huge rift with then-central bank chief Pridiyathorn.

        After Thaksin lost power in the 2006 coup, Somkid was appointed head of an international coordinating committee during the government of Interim Prime Minister Surayud Chulanont. But Pridiyathorn resigned from his post of deputy prime minister and minister of finance in protest of Somkid's appointment, an action that contributed to the Surayud junta losing its mandate.

        The economic theories espoused by Somkid, which place a heavy emphasis on the market, are easily acceptable to investors from Western countries. The military government expects that Somkid will serve as a credible champion of its economic policies. However, the view from inside the country is much more complicated.

        The Thaksin faction regards Somkid as a traitor who sold out to the junta, while the anti-Thaksin faction treats him coolly as a close associate of the former prime minister. Considering the appearances of Somkid driving out Pridiyathorn, who is part of the royal family, the conservative bloc is not likely to embrace him either.

        Prayuth apparently submitted the roster for the government shakeup to the king before Monday's terror attack in Bangkok, meaning the move had nothing to do with the deteriorating security situation. Yet Pridiyathorn's resignation from Surayud's government came soon after the series of bombings that hit Bangkok at the end of 2006 in the leadup to the military junta losing its footing. The events of this week bear a striking resemblance to the situation from less than a decade ago.

        asia.nikkei.com
        http://thailandchatter.com/showthrea...ll=1#post45112

        Comment


        • #5
          Whoever is tasked with the economic woes of Thailand has a huge task in front of them. The Bombings will be another check in the debit box for firms looking to invest in SE Asia.

          Comment


          • #6
            Somkid is no more of a divisive figure than Yingluck. I don't know why any of the Thai media articles state the full truth either- Somkid, along with the dreaded Tman, was one of the primary and original founders of TRT. It was never thaksinomics- it was somekidnomics. His appointment, frankly, represents a victory for thaksin style politics over the yellow bellied gerontocracy that care about their own cadre more than the country they supposedly work for, and who will actively sabotage Thailands national prospects to entrench their own self entitled 'privilege'. Kudos, General. Thailand remains a military dictatorship however, and the mere stroke of a pen does not change the many economic challenges it faces. Nevertheless, a sound move that will be appreciated as such internationally. But expect the yellow bellied old guard that bloats the Thai bureacracy to try and stymie every move he makes. That's how childish this country is.
            Last edited by sabang; 08-20-2015, 08:49 AM.

            Comment


            • #7
              Prayut defends stocking cabinet with brass
              Wassana Nanuam
              21/08/2015

              CHON BURI - Prime Minister Prayut Chan-o-cha on Friday strongly defended his decision to keep retired or active generals in the new cabinet.

              The reshuffle saw all the generals appointed a year ago stay on in the new lineup, just in different positions. In addition, two more top Royal Thai Army officers were added to the list, which was announced on Thursday.

              The so-called Prayut 3.0 administration has 14 former and present generals from all military branches -- 15 if the former army chief prime minister is counted.

              "So what when the new cabinet has more generals,'' he angrily retorted to a reporter's question at the 21st Infantry Regiment, Queen's Guard, "What happened with the past (governments) when there were none," he added.

              Gen Prayut has decided, however, to move some top brass out of key ministries and let civilians take over.

              ACM Prajin Juntong was moved from transport minister to deputy prime minister. Gen Tanasak Patimapragorn retains his deputy premiership, but passed his foreign minister hat to Don Pramudwinai. ACM Narong Pipatanasai was reassigned from education minister to just deputy prime minister. Commerce Minister Gen Chatchai Sarikulya will become agriculture minister.

              The newcomers in uniform are Gen Anantaporn Janjanarat, who will be in charge of the Energy Ministry, and Gen Sirichai Distakul as the new labour minister.

              Gen Prayut said he hoped for a better image for the government by moving the top brass in charge of the economy out of the ministries to be his deputies.

              The prime minister joined an event marking the anniversary of the elite regiment in Chon Buri province. The group was established on Aug 1, 1959 and moved from Bangkok to a new camp in the eastern province on July 31, 1968.

              bangkokpost.com
              http://thailandchatter.com/showthrea...ll=1#post45112

              Comment


              • #8
                ECONOMY

                Somkid's big plan for economy: More household debt & won't help exports

                Wichit Chantanusornsiri, Sawai Boonma & Nicholas Owen
                4/09/2015

                Somkid's 136-billion-baht stimulus will get money flowing in farming areas again, but doesn't solve long-term problem of export sector decline & will likely worsen household debt problem.


                A mask from traditional Thai dance drama being sold at an OTOP fair.

                ASIA & THAILAND'S BLEAK ECONOMIC SITUATION

                China's slowing economic growth has reduced demand for goods and natural resources from the ASEAN region (Southeast Asia) which, in turn, is hitting demand for Chinese exports in ASEAN which is the biggest market for China outside the US and Europe.

                This has reduced prospects for a second-half recovery across ASEAN with currencies at multi-year lows and depressed stock markets squeezing income and investment. It also complicates China's efforts to revive growth in its economy, the world's second largest.

                ASEAN exports have fallen as Chinese demand for Indonesian coal , Malaysian electronics and Thai auto parts has slumped, with China heading for its weakest growth since 1990.

                The 10 economies in ASEAN took nearly $160 billion of China's exports in January-July, around the same as Japan, South Korea and Taiwan combined.

                Sharp falls in stock markets and capital flight from ASEAN are further battering confidence and pushing up funding costs, hobbling growth in a region where recent expansion has been fuelled by cheap debt.

                ECONOMIC STIMULUS PACKAGE

                Hopes are that a stimulus package with government spending can reverse the economic slowdown in Thailand.

                The 136-billion-baht stimulus package, created by Deputy Prime Minister Somkid Jatusripitak, brings back the Village Fund programme channelling money directly to each village across the country. Cheap loans to SMEs and a plan to accelerate government spending for small investment projects will generate income for local communities across the country, reignite the economic growth engine and revitalise the economy. A special investment promotion package for investors is planned in the second phase.

                As a keynote speaker on Thailand's economic direction last week, Mr. Somkid repeated the messages he gave 10 years ago. This included the need to boost competitiveness; adopt a domestic-driven economic model to lessen Thailand's dependence on the export and service sectors, which takes up 77% of GDP; the creation of an industrial cluster that will strengthen SMEs as an economic base; the branding of local products; the Village Fund; Otop development, and so on.

                SHRINKING OF THAILAND'S EXPORT MARKET

                However, Thailand's biggest problem remains the shrinking of the export market, notably by about 4.66%, in the first seven months of the year. The contraction is partially caused by the troubled world economy.

                The real challenge will be how to boost Thailand's competitiveness, and how to reduce logistics costs which account for 14% of GDP. If there is no solution to these problems, when the world economy improves, Thailand's economy may continue to flop with products that are no longer competitive in terms of both price and quality on international markets.

                Eventually, Thailand may lose its status as an investment hub for international investors. This is the reason, according to Mr Somkid, that Samsung relocated its production base from Korat to Vietnam.

                INVITATION TO EVEN MORE HOUSEHOLD DEBT?

                Aimed at pulling the economy out of stagnation, Somkid's stimulus plan is a likely invitation to even more household debt, already a big problem in Thailand.

                Mr. Somkid was the one who dreamed up the populist programmes launched in 2001 and the new stimulus package contains elements of those programmes.

                One leading element is the transfer of a large sum of money to a village-fund programme to lend money to villagers in local communities. When village funds were first launched in 2001, to avoid scrutiny of the normal government budget process, government-owned banks such as the Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC) were strong-armed into providing money for the village fund loans, with the government paying the interest to the banks because the banks were not allowed to charge the villagers interest.

                OTOP & VILLAGE FUND CONNECTION

                In the past, village funds were often used to finance One Tambon, One Product (OTOP) businesses.

                Non-performing loans (NPLs) have been a problem for many village funds. Late payment currently amounts to 2 billion baht or 30% of Village Fund funds. About 300 million baht in loans extended by Village Funds, or 5% of loans are under civil and criminal court proceedings. As mush as 25% of vilage fund loans are ranked below grade B and are considered to have problems (See here & here).

                This time around, to market products that villagers are expected to make from investments financed by village funds, major campaigns -- with great fanfare and substantial expenditure -- are expected to be launched under the banner of the old One Tambon, One Product (OTOP), or something similar.

                The government expects this to boost to economy via increased domestic expenditure to offset stagnation in major export markets, as well as to help villagers earn additional income. But results may fall short of expectations because a high portion of the money will likely go towards refinancing old debt that villagers have incurred with village funds as well as with other sources, including loan sharks.

                Although some villagers have made productive use of the provided funds, many have not. Funds are often used for ill-conceived investments or direct consumption. As debt comes due while investments run into trouble, borrowers resort to short-term funds from unofficial sources (such as loan sharks) that charge very high interest rates to pay off debt so they are qualified to borrow again.

                Village funds have largely strengthened the household debt trap that many have fallen into.

                http://www.bangkokpost.com/business/...isks-for-china

                http://www.bangkokpost.com/opinion/o...n-to-more-debt

                http://www.bangkokpost.com/opinion/o...jection-scheme

                http://www.bangkokpost.com/business/news/676860/stimulus-focuses-on-village-funds-small-projects

                bangkokpost.com
                http://thailandchatter.com/showthrea...ll=1#post45112

                Comment


                • #9
                  Thaksinomics

                  "Thaksinomics" return as Thai junta rethinks revival strategy
                  Martin Petty and Orathai Sriring
                  Additional reporting by Pairat Temphairojana; Editing by Simon Webb & Shri Navaratnam
                  Sept 7

                  The generals battling to revive Thailand's economy have been loath to employ anything resembling populism, having lambasted their predecessors for policies they say haemorrhaged billions of dollars and left Thais saddled with record household debt.

                  But in a stark strategy shift, the military has had to bite the bullet and reopen the populist playbook of the billionaire Shinawatra family whose governments they have twice overthrown in coups.

                  The junta announced last week it would channel 136 billion baht ($3.8 billion) into getting the rural masses spending to rev-up an economy stuttering amid weak exports, falling factory output and scant retail growth.

                  The man charged to lead the economic revival plan is marketing executive Somkid Jatusripitak, the new boss of a technocrat team given three months to get the economy in shape after what amounted to a purge by the junta of underperforming policymakers last month.

                  The irony is Somkid, now deputy prime minister, was the architect of "Thaksinomics", the populist handouts that spurred GDP growth to as much as 7.2 percent but angered the military-backed royalist establishment because they entrenched the popularity and electoral dominance of the man they revile - former premier Thaksin Shinawatra.

                  And he's not worried about a backlash.

                  "I think positively," Somkid told Reuters. "You have to build the strength of the grassroots economy or else the whole economy cannot survive."

                  Though no longer part of Thaksin's political clique, Somkid has made no attempt to brand the policies any differently, using Thaksin's term "village funds" and promising to relaunch his One Tambon One Product (OTOP) initiative, where each small area grows or produces just one high-quality product.

                  SPENDING FOR THE MILITARY

                  Somkid says the stimulus is just the start and measures to boost long-term competitiveness will follow. It's unclear if the extra spending will spur a durable economic recovery though, with growth clocking a feeble 0.4 percent on-quarter in April-June.

                  "Some kind of populist policies will help reignite the country," said Tim Leelahaphan, economist of Maybank Kim Eng.

                  "A populist policy with low risk will help shore up the popularity of the military regime."

                  Somkid, 62, who runs a marketing business, has held finance and commerce portfolios in previous governments. He was an advisor to the junta but is reported to have clashed with the man he replaced as deputy prime minister, royalist Pridiyathorn Devakula, who served two military governments.

                  The new rural stimulus measures - 60 billion baht in village microloans, 36 billion in sub-district spending and 40 billion for small projects - represent a smaller-scale revival of the policies that stoked months of protests last year against Yingluck Shinawatra's government, which culminated in a coup.

                  Populism is core to Thailand's political crisis, angering middle classes who consider it vote-buying in the guise of fiscal stimulus and a reckless use of their tax money.

                  TIME BOMB

                  The rescue package comes at a critical time, with low commodity prices hurting farmers' income and consumer confidence, which was down in August for an eighth successive month to its lowest since the May 2014 coup.

                  Output from the autos and electronics-led manufacturing sector has fallen on an annual basis in 27 of the past 28 months, while exports, equivalent to 60 percent of Thailand's $374 billion economy, have fallen for seven straight months after two years of annual contraction.

                  Somkid has been an instant hit in local business circles, drawing loud laughter and applause during an hour-long speech in front of hundreds of businessmen last month during which he promised to revamp the rural economy and create "spark and motivation".

                  Thirachai Phuvanatnaranubala, the first finance minister in Yingluck's ousted government, welcomed the new approach but with household debt at 80 percent of GDP, he said Somkid's team should tread very carefully.

                  "Grassroots stimulus through consumption is not the answer," he told Reuters.

                  "Stimulus through personal debt is just a time bomb. The benefit will be short lived, and the payback painful."

                  reuters.com
                  http://thailandchatter.com/showthrea...ll=1#post45112

                  Comment


                  • #10
                    150830manager.jpghttp://2bangkok.com/71946.html
                    http://thailandchatter.com/showthrea...ll=1#post45112

                    Comment


                    • #11
                      Public must play strong role: Somkid
                      September 20, 2015

                      Deputy PM also warns conflicts will occur if the economy isn't fixed

                      DEPUTY PRIME MINISTER Somkid Jatusripitak has urged the public and the private sector to help the government reform the country and turn it into a "people's state".

                      In a people's state, the citizens have a duty to learn and educate themselves about the country's administration while the government has only a guiding role, he said.

                      "You want to fight corruption and issue so many laws, but the people are not aware of the problem - thick-faced people continue to misbehave," he said. "It is not only government officials who take kickbacks but also businessmen who pay the bribes.''

                      Somkid said public participation in the fight against corruption and the people's movement were the keys to the reform process.

                      He spoke at a seminar titled "Thailand's Economy and Politics" organised by the National Legislative Assembly in Chon Buri yesterday.

                      Somkid said when he was an adviser to the National Council for Peace and Order, he thought that if the government's work methodologies continued the same way, the country would face big hassles.

                      He had economic policies secretly devised so he could immediately implement them when he became deputy PM.

                      He said after taking office he had instructed every government agency to focus on controlling budget spending.

                      He said the purchasing power at the base of the economy was weak, leading to the poor performance of business conglomerates.

                      "If the situation continues, social and economic problems will erupt, which will lead to national conflicts. The poor will think that the government ignores their plight, making them vulnerable to being exploited,'' he said.

                      That's why he opted for the Bt1-million Village Fund and the Bt5-million Tambon Fund. "This is to sow seeds to bring about sustainable projects and not to stimulate the economy. This will create inner economic strength,'' he said.

                      He said he told Prime Minister Prayut Chan-o-cha that the country needed a balance between an export and a domestic economy. "Over the past 30 years, we gave too much weight to exports and ignored the domestic economy," he said.

                      "Exports grew because the world economy boomed. We were pleased with our GDP [gross domestic product] without looking at our domestic strength or taking into account our agricultural strength, which is wrong."

                      He said balancing the export and domestic economy was difficult because the country's administrative system was outdated and placed too much emphasis on exports.

                      "Our backbone on exports has degenerated and needs to be reinforced with steel," he said.

                      The deputy PM said the Board of Investment must adjust by persuading investors not to relocate their production bases at expanding industrial zones at Map Ta Phut and Laem Chabang.

                      "Industries that get BOI privileges should be green ones. Look at how South Korea, Japan and Italy do it,'' he said.

                      Somkid said state information disclosure was important to development. The government must have an information technology centre that gathers important information.

                      "The PM has instructed that we should have all links to information but we don't have this centre due to some court cases. We have an agency in charge of the digital economy but it takes care of only state bidding,'' he said.

                      Somkid said once he steps down from his post as deputy PM, he would not return to politics.

                      "I did not even think that I would return again. I thought that I had quit politics for good. But it was fate that I have to come back to work at a difficult period. It is not easy but I regard it as my duty.''

                      nationmultimedia.com
                      http://thailandchatter.com/showthrea...ll=1#post45112

                      Comment


                      • #12
                        ^

                        "If the situation continues, social and economic problems will erupt, which will lead to national conflicts. The poor will think that the government ignores their plight, making them vulnerable to being exploited,'' he said.

                        Somkid is not alone with this thought
                        "If that is all the government can come up with there is little hope of restoring political faith," Mr Teerasak said. "Sooner or later this pot will boil over. You can't suppress it for long if you don't solve the problems."

                        http://www.straitstimes.com/asia/se-...ay-low-for-now

                        http://thailandchatter.com/showthrea...ll=1#post45112

                        Comment


                        • #13
                          Economy expands on stimulus spending
                          16/11/2015

                          The Thai economy grew more than analysts projected in the third quarter as government stimulus spending and a rise in tourist arrivals offset weak local demand and exports.

                          Gross domestic product gained 2.9% in the three months through September from a year earlier, the National Economic and Social Development Board said in Bangkok on Monday. That compares with the median estimate of 2.5% in a Bloomberg survey of 26 analysts.

                          GDP grew 1% over the previous quarter, up on the predicted 0.6% gain.

                          The projection for 2015 GDP growth is now 2.9%, compared to the range of 2.7-3.2% previously predicted in August.

                          The NESDB now expects exports to shrink 5.0% this year, rather than fall 3.5%.

                          For 2016, the agency predicts economic growth of 3.0-4.0%, with exports rising 3.0%.

                          The Bank of Thailand (BOT) has forecast economic growth of 2.7% this year and 3.7% in 2016. It will give new forecasts next month.

                          Economists polled by Reuters newsagency predicted 2.7% growth in 2015.

                          For 2016, the projection is 3.0-4.0% growth, with exports rising 3.0%.

                          The Bank of Thailand (BOT) has forecast economic growth of 2.7% this year and 3.7% in 2016. It will give new forecasts next month.

                          Economists in the Reuters poll predict 2.7% growth in 2015.

                          Southeast Asia's second-largest economy has yet to regain traction nearly 18 months after the army seized power to end political unrest. Exports and domestic demand remain weak, and economic growth last year was just 0.9%.

                          bangkokpost.com
                          http://thailandchatter.com/showthrea...ll=1#post45112

                          Comment


                          • #14
                            Thai October exports slide for 10th month
                            Wednesday, 25 November 2015

                            BANGKOK:Reuters
                            http://thailandchatter.com/showthrea...ll=1#post45112

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