Japanese | English

Font Size:  Default Smaller Larger

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.

Wat Lokaya Sutha, Sri Ayutthaya

Thailand Review Aug. 2008 (extracted)

Economy

In Thai Central Bank’s inflation report (issued July 28th, 2008), the economic growth forecast for 2008 was revised downward from that announced in May of between 4.8% and 6.0% to between 4.8% and 5.8%. Among the factors cited as responsible for slowing the economy are the high price of crude oil and weakening economic growth among Thailand's trading partner nations. Additionally, the economic growth forecast for 2009 is between 4.3% and 5.8%. The Consumer Price Index (CPI) is expected to grow within 7.5% to 8.8% in 2008, and within 5.0% to 7.5% in 2009.

Bank of Thailand’s monthly financial and economic report (issued July 31st for June) states that the balance of trade contracted from a US$1.27 billion surplus in May to a US$930 million surplus in June. Exports were worth US$16.1 billion (up 28.5% compared to the same month in the previous year), and imports US$15.2 billion (up 31.5%, similarly), marking the highest monthly export figures posted so far. The balance of current account surplus expanded from US$630 million in May to US$720 million in June. The foreign currency reserves at the end of June were US$105.7 billion (US$3.2 billion down on the previous month).

According to a Thai Ministry of Commerce announcement on August 1st, the Consumer Price Index (CPI) for July, 2008, was up 9.2%, compared to the same month in the previous year, surpassing June's 8.9%. This was the highest increase since 9.8% posted in June, 1998. Food and drink items were up 11.8% on the same month in the previous year, while non food and drink items were up 7.6%, similarly. Among food and drink items, rice and flour products were up 33.5%, and among non food and drink items, petrochemical fuels were up a huge 46.9%. Excluding perishables and energy, the core CPI increase rate was 3.7%, compared to the same month in the previous year.

Politics

On July 15th, the government approved a package of six relief measures, aimed at alleviating the burden of rising prices on the poorest and worth some Bht46 billion. The measures comprise (1) a reduction of duties levied on gasohol and diesel, (2) a freeze on household gas prices, (3) a reduction in water charges, (4) lower electricity charges, (5) free use of non-air conditioned buses in Bangkok and (6) free third class rail travel throughout the country. However, these measures will be in effect for a six month period, from August 1st, till January, 2009.

Prime Minister Samak held a reshuffle of his Cabinet on August 2nd and announced his new Cabinet lineup. The Samak administration had been hoping for some political stimulus from the Cabinet shakeup, but there were only two new faces in the lineup, and the Cabinet was seen as lacking in freshness. Further, with developments such as the addition to the Cabinet of former national police chief Kowit Wattana, who is considered close to former Prime Minister Thaksin, as Deputy Prime Minister and Interior Minister, some still comment on the emergence of a pro-Thaksin element.

 Royal Thai Embassy /  Board of Investment /  Tourism Authority of Thailand /  JTECS /  AOTS /  JCC Bangkok /  JFTC /