Thaksin Can’t But We Can
Abhisit on Thai Economy
05:57 AM Jun 23, 2009
by CHANNEL NEWSASIA
Thailand’s recession-hit economy should move back into positive territory by year-end and, depending on the global economy, hit 2-per-cent growth by next year, said Thai Prime Minister Abhisit Vejjajiva at a Thomson Reuters dialogue session with business leaders and media during his one-day visit to Singapore.
Protests in recent months have taken its toll on the country’s key tourism sector and have kept foreign investors away, but Mr Abhisit was positive about Thailand’s core economic strengths.
“We’re determined to keep our base production hub for auto industries, part of the electronics industries and hope to increase the services portion in the economy, as a whole. Potential and strengths are there. The politics has to be reformed to support that,” he said. A second major stimulus package, now before the Senate for approval, would allow the government to borrow almost US$12 billion ($17.5 billion) and create up to 2 million jobs.
The funds will be used for irrigation and infrastructure projects, but should not put a strain on domestic liquidity, Mr Abhisit assured. “We won’t draw liquidity away from the private sector … We’re determined to crowd in investments, not crowd out.”
He added that the Thai government will not restrict foreign businesses and was working to liberalise the financial sector as well as stimulate the development of capital markets.
