Thailand in a Better Position to Provide New Business Opportunities

(01/06/2012)

Prime Minister Yingluck Shinawatra has stated that Thailand is now in a better position to provide new opportunities for both local and foreign businesses, which will contribute to the prosperity of the region. The statement was part of her speech at the CNBC Power Breakfast, held in Bangkok on 31 May 2012, on the topic “Asia’s New Reality: Growth vs. Inflation.” The Prime Minister said that Thailand would continue to ensure that it would achieve sustainable growth. It already has solid fundamentals, such as a growing market, an open and flexible approach to investment and global markets, a strategic location with extensive infrastructure and a service-oriented culture, a dedicated and quality workforce, a stable democracy based on rule of law, and respect for diversity. Thailand will enhance its competitiveness by restructuring its industries, developing human resources, and investing further in new infrastructure. In addition, the Prime Minister said that Thailand would continue to implement inclusive growth measures, such as the adjustment of minimum wages and increases in the well-being of the low-income population, as well as improving the productivity of private companies. Several measures are designed to increase the opportunities of important groups, such as SMEs, women, and the grass-roots population. Touching on the issue of the Thai economy, Prime Minister Yingluck said that the Government is aiming to ensure the right balance between economic growth and price stability. The Thai economy strongly rebounded from the floods. In the first quarter of 2012, it grew by 11 percent from the previous quarter and it is likely to achieve growth of 5.5-6.5 percent for the whole year. Inflation during the first quarter of 2012 was 3.4 percent, as a result of an increase in fresh food and energy prices, which rose by 5 percent. Therefore, the sources of inflation were mainly from the situation in agricultural product market and the world’s oil price. These pressures are softening and the inflation in April 2012 dropped to 3.2 percent. This indicates that inflation in 2012 will be under control. The Prime Minister pointed out that, with strong economic fundamentals and democratic institutions, Thailand has built the necessary platform for achieving sustainable economic growth and development. She said that Thailand focuses not only on its domestic growth, but as the region becomes a key engine of the global economy, Thailand will also find ways to reduce development gaps between countries and increase the growth potential of the region as a whole. That is why Thailand closely cooperates with its neighbors to develop connectivity and economic corridors, so that economic benefits are created and widely distributed.