Japan-Thailand Business Forum

Japan Thailand Business Forum is an association which consists of persons who have once worked in Thailand as executives of various Japanese companies as well as government offices located in Thailand.

It was organized in August 2002 for a purpose of exchanging frank opinions with Thai authorities in regard to tourism, economy, investment and other various subjects.

Rama 8th Bridge, Bangkok

Thailand Review Feb. 2010 (extracted)

Economy

On January 22nd, Thai Central Bank published a forecast of between 3.3% and 5.3% economic (GDP) growth for 2010. While private sector investments and exports have improved particularly well and a sustainable economic recovery is expected, the economic growth rate for 2009 fell to minus 2.7% and, given the accompanying low base effect, a high growth rate is expected going forward.

Central Bank's monthly financial and economic report (issued January 29th for December) states that exports were worth US$14.5 billion (up 26.2%, compared to the same month in the previous year), and imports US$14.7 billion (up 33.0%, compared to the same month in the previous year). Domestic and foreign demand has expanded across a wide range of industrial sectors, and exports and imports are trending towards recovery. The trade balance was US$100 million in the red, and the current account US$800 million in the black. The foreign currency reserve at December's close was US$138.4 billion (minus US$1.4 billion from November).

The Thai Ministry of Commerce reported on February 1st, that the Consumer Price Index (CPI) January, 2010, was up 4.1%, compared to the same month in the previous year (food and drink items up 3.2%, non food and drink items up 4.7%), marking four consecutive months of positive growth, the highest level in 16 months. The core CPI increase rate (excluding perishables and energy) was 0.6%, compared to the same month in the previous year. As shown, the CPI increase rate also indicates a clear trend towards economic recovery.

Politics

There is growing disharmony within the ruling coalition as regards amendments to the 2007 constitution. On February 3rd, with the exception of the Democrat Party, five coalition parties presented the House with motions to amend the constitution on two points, (1) Article 94, reducing Lower House electoral constituencies from multi-seat to single seat constituencies and (2) Article 190, clarifying the government's obligation to seek House approval before ratifying international treaties. However the Democrat Party has voiced its clear opposition to amending the constitution and it is thought likely that the majority vote required for constitutional amendment will not materialize. Meanwhile, the (pro- Thaksin) Phak Pheu Thai (For Thais) Party does not support these proposed amendments and is calling for a return to the 1997 constitution.