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Thai economy set to improve after general election - deejay - 08-05-2007 08:30 AM

Thai economy set to improve after general election

BANGKOK, Aug 4 (TNA) - Thailand's economy is expected to become much improved after a general election as investors gain more confidence, but the new elected government must give more attention to solving problems of poverty and restructuring the industrial sector, according to a cross-section of senior Thai economists at a seminar Saturday.


Voraphol Sokatiyanurak, vice chairman of the National Economic and Social Advisory Council, said the problem of poverty and indebtedness will be an immediate concern of any new government formed after the general election later this year. Consumer spending has slowed while household debt has doubled to Bt120,000 (US$3,640) from Bt60,000 (US$1,820) listed earlier, Mr. Voraphol said.

The new government must provide programmes to generate income and issue transparent laws regarding retail trade, foreign investment and reduce the large and growing income gaps between the rich and the poor.

Karun Kittisataporn, Permanent Secretary for Commerce, said the new government must restructure the industrial sector and the country must become the owner of more brands instead of simply being a hired producer.

Thai industry has not advanced greatly after the 1997 financial crisis, Mr. Karun observed, noting that most major local plants are hired by overseas manufacturers to produce their brands until the machinery is worn-out and the plants are closed.

In reality, the problem of Thai industry is not simply a result of the strong baht, said Mr. Karun, but an accumulation of factors made worse by the recent condition of the baht.

Another speaker, National Economic and Social Development Board secretary general Amphol Kitti-amphon said the Thai economy still depended on exports for the time being.

Although the country enjoyed a trade surplus of Bt200 billion during the first six months this year, 80 per cent of the surplus came from industries set up by foreigners in Thailand which benefited only
little to Thai people.

The new government must restructure both Thailand's system of income distribution system and the social structure, added Mr. Amphol.

TNA