Thailand in Focus

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Distinguished Industry Leaders,
Ladies and Gentlemen,

It is my great pleasure to be in New York and to have the opportunity to meet key American investors today. All of you have contributed significantly to the growth of the Thai economy and the Thai people. I would like to commend the Ministry of Industry and the Board of Investment for organising this event. I thank all of you for taking time from your busy schedules to join us this afternoon.

While I have visited New York many times, this is my first visit as Prime Minister. I am always impressed by the vitality and resiliency of the American economy, and I have no doubt that American economy has bottomed out from the severe financial storm that took place a year earlier.

Of course, all of you have been following Thailand very closely. But today, I want to update you on our direction and why you should continue to be confident about investing in Thailand, including what we are doing to revitalize the economy and prepare the country to emerge from this global crisis stronger and healthier than ever. Second, and perhaps more important, I want to hear from you, our major clients, about your investment plans and what we can do to help you and other American companies invest in Thailand. I would like to assure you that Thailand will continue to be your friend and the Government will support and facilitate your businesses.

Ladies and Gentlemen,

When I assumed office earlier this year, the government inherited not only the economic recession but also a political situation which was very complicated. But these ?twin challenges? have neither derailed nor detracted us from our determination---we came out with clear priorities and concrete actions which are producing effective results. We are working to achieve the aims of economic recovery and reconciliation.

The first thing that we did was to swiftly implement a short-term stimulus package, which were quite effective and our efforts paid off. It was? aimed at helping those very vulnerable people, and also carrying out a number of programs to make sure that the broadest spectrum of Thai people would benefit. If you look at the economic figures from April month-on-month, you can see improvements and increased confidence. The employment numbers have also been good.

And just two weeks ago, I presided over the official opening ceremony of the ?Thailand : Investing from Strength to Strength 2012? programme organised by the Ministry of Finance. This second-phase economic stimulus package will be an historical investment for Thailand to strengthen its economy and regain global competitiveness. The US $45 billion budget, about 16 percent of GDP spread for the next three years, around 5 percent a year. It is funded from internal sources and will be invested in agriculture, transportation health care and education projects. It will create at least 1.5 million jobs within the next three years. This will not only stimulate economic growth, but will also result in the expansion of investment within the private sector. Over US $9 billion in projects have already been launched. In transportation, the projects include the ?Purple Line? mass transit system, repairing railways, and ?roads without dust,? a program to build new asphalt roads upcountry.

We are also upgrading our healthcare system. In agriculture, there will be massive investments to increase water production, and for energy there will be measures to ensure that Thailand is an important player in alternative fuel. We are also improving the tourist and the service sector---thus pushing Thailand forward to the creative economy. To fund the stimulus package, we are tapping into excess liquidity in the banking system.

In the industrial sector, our aim is to bring the logistics costs down, so that we may be able to realize our potential as a hub in the Southeast Asian region, with China in the north.? And as ASEAN becomes a ?Community of Connectivity? in 2015, with our new Charter already in place, we will have an integrated market of 600 million, the fastest growing market in the world.

Ladies and Gentlemen,

We are on track and on time, and I am certain that with confidence in Thailand, there will we fresh opportunities available to all of you.? We are committed to openness, and we welcome new investments.

The same reasons that you originally invested in Thailand have not changed. Thailand continues to be outward-looking, export-oriented, and I believe that the private sector is the real engine of growth for the economy.

Finally, I would like to assure you of the Government?s commitment to carrying out any necessary action to ensure that all foreign businesses are able to operate in Thailand in the simplest and most convenient manner. I am always open to your concerns regarding customs, licensing, work permit or any other issues you may have. I hope that you will all utilise our ?One Start One Stop" service post for investors that will be set up by the end of the year at the Office of the Prime Minister, and eventually, I hope that you will set up Regional Operating Headquarters (ROH) in Thailand, for those who have not yet benefitted from the incentives offered. The World Bank?s 2009 ?Ease of Doing Business? report has already ranked Thailand number 12, which makes us number 2 in ASEAN and number 3 in Asia.

I realize that there are a host of investment-related issues in the country that need resolution, and I have personally chaired three meetings. Some cases have been solved, some remain. The Government will take that effort to deregulate and rationalize pending issues. Some offices provide contradictory information, on what can and cannot be done.

On the political situation, we have the will to go through the difficult times. The Government has focused on accountability, transparency, and participation in the process.? The people have the right to express themselves, but it must be done in the confines of the law. Thailand is anxious to move ahead. In short, no one wins in a conflict.

With that note, I thank you very much for your contribution to the economic growth of Thailand. I look forward to working with you as the private sector to open up more opportunities. I welcome you are partners in our task to build stability and for Thailand to realize her great opportunities as a country.

Government Spokesman Bureau
Foreign Relations Division