Wednesday, January 14, 2009

Thailand unveils $3.3bn stimulus

Wednesday, January 14, 2009
Al Jazeera

Thailand's government has announced a $3.3bn economic stimulus package aimed at helping the country avoid sliding into recession and recover from recent political turmoil.

Abhisit Vejjajiva, the recently-appointed prime minister, said the money would be allocated to help the poor and efforts to prop-up the country's vital tourism industry which has been battered by months of political unrest.

Thailand is forecasting economic growth of 0.5 to 2.5 per cent this year, well below rates of 5-7 per cent seen earlier in previous years.

"The measures are based on the idea of reviving the economy directly, that is, adding money in people's pockets," Abhisit told reporters after a weekly cabinet meeting on Tuesday.

"Giving money directly to people is the most effective way. It will lead to more spending that will help industrial, agricultural and business sectors."

He said the package will be officially submitted to parliament on January 28.

Abhisit was named as Thailand's new prime minister in December after a court dissolved the party leading the previous government.

The government says the stimulus funds will be used to support social security, free education programmes, create jobs and provide low-interest loans to farmers.

A package of economic measures implemented by the previous government will also be extended by another six months.

These include lower water and electricity charges, free rides on some of Bangkok's public buses and free third-class train rides nationwide.

Phaithoon Kaeothong, the labour minister, told the Associated Press that a portion of the funds will be doled out in a one-off allowance of $57 to several millions of low-income employees and government officials.

Only those who earn less than $400 a month will qualify.

Abhisit has previously said his government would retain populist policies including cheap credit and health care implemented under Thaksin Shinawatra, the exiled former prime minister, who has loomed over Thai politics even after being ousted by a military coup in 2006.

A cabinet statement also said the stimulus package will also be used to help promote the country's battered tourism industry – a vital pillar of the Thai economy and one on which millions of jobs depend.

The Bank of Thailand has estimated the country's economy stands to lose $8.3bn as a result of November's week-long blockade of Bangkok's two main airports by anti-government protesters.

It said the shutdown of the airports could see visitor arrivals fall by up to 3.4 million in the coming year.

2 comments:

Anonymous said...

How about the strong man of Cambodia? How much stimulus package to put in his own family pockets? Well, not less than Thailand! Who don't know Hun Sen.

Anonymous said...

this sounds like copying what's going on in the USA by thailand, which is good to imitate the USA. if cambodia could do the same, then it is good, too. well, i just want to point it out that it wasn't thailand's original concept to do this; it called copying from the USA. the thai have a long history of copying from other culture or tradition. i wouldn't be surprise to hear that they even copied their system from the gov't of then the khmer empire either during the great khmer angkor civilization, etc... how clever! however, the only problem with doing that is thailand often forget to credit or mention such countries they borrowed from. now that not clever, but obnoxious and thug-like, indeed!