Strategies for Education Reform

15 June 2015

Prime Minister General Prayut Chan-o-cha has stated that the Government attaches great importance to education reform, with an emphasis on basic education, as its effects would shape the future of the country.

 

In his televised national address on 12 June 2015 in the program "Return Happiness to the People,” the Prime Minister touched on the issue of strategies for basic education reform.

 

The issue was discussed recently by the Basic Education Commission, which set three major strategies to be implemented from 2015 to 2020. The strategies include teaching and learning reform, vocational development reform, and education management reform.

 

In the initial stage, six guidelines for basic education reform must be carried out urgently from now until March 2016. In the first guideline, an effective form of teaching should be developed to ease learners’ difficulties with learning to read and write. The second guideline seeks to manage basic education in accordance with vocational skills. Emphasis is placed on schools in special economic zones in border provinces, namely Tak, Mukdahan, Sa Kaeo, Songkhla, Trat, and Nong Khai.

 

In the third guideline, the teaching of English at the basic education level must be developed. For instance, the Ministry of Education should seek cooperation with the British Council in improving skills in English communication for Thai students, in preparation for the ASEAN Community.

 

The fourth guideline seeks to produce, develop, and train teachers, education administrators, and education supervisors. The fifth guideline involves the upgrading of distance learning, while the sixth one involves the qualification development of learners.

 

The Prime Minister said that he wanted to see the country’s education focus not only on an intelligence quotient, but also emotional quotient. He believed that parents also wanted to see their children be able to live happily with other people, without the use of violence.

 

Speaking at a recent seminar on curriculum and teaching reforms, Education Minister Admiral Narong Pipatanasai stressed the need for Thailand’s education to adjust in order to produce and develop human resource, in response to the changing situation. Education reform is not the matter of the Ministry of Education alone; all sectors of Thai society should also give a helping hand.

 

He pointed out that education reform must help the country cope with future challenges and prepare Thai workforce for multicultural society and the increased application of new technology. Moreover, because of the shifting demographic structure of Thailand’s population, the number of older persons will increase significantly. The Thai education needs to be ready to meet this trend, as well.

Public Health Volunteers Playing an Active Role in a New Anti-Smoking Campaign

13 June 2015

Public health volunteers across Thailand are joining a project to reduce the number of smokers, as a tribute to Her Royal Highness Princess Maha Chakri Sirindhorn on the occasion of her 60th birthday anniversary this year.

 

The project was launched jointly by the Ministry of Public Health and the National Alliance for Tobacco Free Thailand in a new anti-smoking campaign.

 

Public health volunteers are close to local villagers, as they help take care of their health. They have also played a role in assisting people to change their behavior in order to improve their health. Aware of the important role of public health volunteers, the Ministry of Public Health has asked them to urge local villagers to give up smoking.

 

A target has been set for one public health volunteer to help one person quit smoking within a period of three months. In the first year of the project, it is expected that 100,000 people, or one in each village, will quit smoking.

 

Those who give up tobacco consumption during the period will be given purple wristbands, with the statement "Giving up smoking as a tribute to Her Royal Highness Princess Maha Chakri Sirindhorn on the occasion of her 60th birthday.”

 

Tobacco causes health hazards and both smokers and non-smokers are affected by tobacco-related diseases. The effects of smoking are serious. According to the Ministry of Public Health, about 50,000 Thais die each year from tobacco-related diseases. The number represents 12 percent of all deaths in the country. Smoking causes emphysema, lung cancer, and cardiovascular disease, as well as other diseases, such as hypertension, diabetes, and damaged blood vessels. The Government spends about 45 billion baht each year on the treatment of tobacco-related diseases.

 

Statistics compiled by the National Statistical Office showed that, in 2014, 11.4 million Thais over 15 years old were smokers. This means that one in five of Thailand’s population is a smoker. Seventy percent of them live in rural areas. The number of smokers who are younger than 18 was around 400,000 and 100,000 youths become first-time smokers each year. Seven in 10 of the new smokers would be addicted to tobacco for the rest of their lives. The number of smokers is likely to increase, if no action is taken.

 

All agencies involved are, therefore, stepping up the anti-smoking campaign. The project to encourage public health volunteers to urge people to give up tobacco consumption also focuses on providing the public with knowledge about the dangers of smoking.

 

Many people are found to have decided to give up tobacco consumption because of their determination, while a number said that they have been advised by doctors to quit the smoking habit for a better life.

Good Response from Foreign Investors

12 June 2015

Deputy Prime Minister M.R. Pridiyathorn Devakula said that Thailand had received a good response from foreign investors.

 

Speaking in the program "Moving Thailand Forward,” the Deputy Prime Minister revealed that during his recent visit to Japan, he learned that the number of new companies seeking to co-invest with Thailand exceeded the set target.

 

Over the past four months, 150 foreign investors have proposed to co-invest with Thailand. It is expected that in the next two years and a half, these companies would complete establishing their production bases here and start to export.

 

In his opinion, the Deputy Prime Minister said that foreign investors were interested in investing in Thailand, because they were impressed by the favorable investment atmosphere here.

 

However, he said, Thailand should improve the tax system in order to encourage more investors to use Thailand as a multinational trade center. It should also focus more on co-investing with foreign investors in new industries, with complex manufacturing processes and with innovation development.

 

Concerning the Thai economy over the past nine months, he said that the overall situation has improved because of the expansion of the tourism sector and public investment. The private sector investment is also picking up, but the export sector still needs some time for improvement.

 

According to a report by the Office of the National Economic and Social Development Board, Thailand’s total investment grew by 10.7 percent in the first quarter of 2015, accelerating from a 3.2 percent growth in the previous quarter. Public investment expanded by 37.8 percent. Private investment expanded by 3.6 percent. For the first time in seven quarters, the Business Sentiment Index stood at a level higher than 50, which is the level at which business expand their investment.

 

The export value in the first quarter was recorded at 52.9 billion US dollars – a 4.3 percent contraction – and the export volume declined by 2.6 percent. The decline was a result of the slowdown in the global economy.

 

Meanwhile, the Bank of Thailand’s Monetary Policy Committee on 10 June 2015 decided to maintain the policy rate at 1.50 percent per annum. It said that economic momentum in the first four months of 2015 softened due to sluggish private consumption and continued contraction in exports, as a result of a slowdown in the Chinese and Asian economies and a shift in global trade structure.

 

 Nevertheless, increased disbursement of public investment expenditure and continued improvement in tourism helped shore up the economy. In the periods ahead, the Thai economy is projected to improve gradually, but subject to downside risks from slower-than-expected recovery of the global economy, especially China and other Asian economies. Therefore, the monetary policy stance should continue to be accommodative in order to support the economic recovery.

 

The Monetary Policy Committee will closely monitor Thailand’s economic and financial developments, and stand ready to utilize the available policy space appropriately in order to support the ongoing recovery and maintain long-term financial stability.

Government Seeking to Stimulate Tourism

11 June 2015

Government agencies, state enterprises, and local administrative organizations have been urged to organize more meetings and seminars in the provinces, as a way of stimulating local tourism.

The Cabinet, during its meeting on 9 June 2015, approved measures proposed by the Ministry of Tourism and Sports to stimulate tourism.

As the Government has declared 2015 the "Year of Discover Thainess,” with a marketing campaign focusing on unique Thai culture, the Ministry deems it necessary for the public and private sectors, as well as the general public, to give cooperation in promoting tourism and serving as good hosts.

For instance, in organizing meetings and seminars in the provinces, various agencies should use services provided by legally registered hotels. In the North, the International Convention and Exhibition Center Commemorating His Majesty’s 7th Cycle Birthday Anniversary, located in Chiang Mai province, should be given priority as the venue for the meetings and seminars.

As for the 2015 Discover Thainess Campaign, it emphasizes the country's unique cultural treasures and the Thai way of life. The campaign is an attempt to attract first-time and repeat visitors to explore Thailand’s new destinations. In the campaign, 12 provinces that tourists should not miss have been recommended. Recognized as "hidden gems,” the 12 provinces include Lampang, Phetchabun, Nan, Buri Ram, Loei, Samut Songkhram, Ratchaburi, Trat, Chanthaburi, Trang, Chumphon, and Nakhon Si Thammarat.

As for tourist arrivals in 2015, Thailand has set a target of 28 million visitors, generating around US$42 billion, or 1.4 trillion baht, in revenue.

Meanwhile, the Tourism Authority of Thailand reported that three of Bangkok’s most famous landmarks were voted among the top ten in Asia by travelers on the popular website TripAdvisor. They are the Reclining Buddha in Wat Pho, the Grand Palace, and Wat Arun, or the Temple of Dawn. These places were rated highly in a list of 25 landmark attractions in the site’s prestigious Traveler’s Choice Awards for 2015.

In total, four Bangkok landmarks were listed among the top twenty. The Reclining Buddha in Wat Pho, also known as Wat Phra Chetuphon, was fourth on the list of Asia’s 25 best landmarks, while the Grand Palace took sixth place. The symbol of Bangkok, Wat Arun, came ninth in the rankings. The Temple of the Emerald Buddha, or Wat Phra Kaeo, located within the Grand Palace, was listed at 15.

Many TripAdvisor members expressed the view that if tourists had not seen these important landmarks, they had not really experienced Bangkok, the capital of Thailand.

Showing Strong Intention to Fight Corruption

10 June 2015

The Government has declared its strong intention to fight corruption and is stepping up an awareness-raising campaign against corruption.

Prime Minister General Prayut Chan-o-cha led various groups composing Thai society to issue a declaration showing their determination to combat corruption. The gathering took place on 8 June 2015 at Santi Maitri Building, Government House.

Organized by the National Anti-Corruption Committee, the event was joined by about 16,000 people, including members of the diplomatic corps and representatives of international organizations. It was also intended to launch anti-corruption campaigns, carried out by the Government and the National Council for Peace and Order.

The Prime Minister stated that the Government would take serious action against corruption in all dimensions. Those who have been involved in corrupt practices must be severely punished. Inspections must be strictly made to ensure transparency, while rules and regulations would be handled properly to prevent corruption. In addition, moral consciousness must be fostered, especially among children and youth, who are the future of the country.

He cited corruption as a major issue, saying that it corrodes public trust in government officials and the public sector. The Prime Minister stressed the need to eliminate this social ill, which has affected the bureaucratic system as well as the business sector. As a way of dealing with this problem, he said, the Government must reduce the gap between the rich and the poor through the application of the Sufficiency Economy philosophy of His Majesty the King.

The Prime Minister also quoted Transparency International, which reported that Thailand had improved 17 places to 85th out of 175 countries in the Corruption Perception Index for 2014. It received a score of 38 out of 100. In ASEAN, Thailand was ranked third, after Singapore and Malaysia. He said that although the country performed better, according to these figures, further improvements are needed.

The Prime Minister called on the public and private sectors, as well as civil society, to join hands in strengthening the country through anti-corruption efforts. The Government has appointed a committee to check and follow up on the spending of the national budget by the public sector. Legal action would be taken against offenders.

He said that amendments to tax collection must be made to bring income earners into the tax system. The Government would also seek ways to help low-income earners.

In declaring his firm stand against corruption, the Prime Minister pledged to work with honesty, saying that he would not abuse his power for personal gain. He would apply His Majesty the King’s Sufficiency Economy to national administration and stand by the side of honest people to bring prosperity to Thailand.

Thailand to Be Developed as a Muslim-Friendly Destination

9 June 2015

In response to the Government’s strategy to position Thailand as a Muslim-friendly destination, the Tourism Authority of Thailand (TAT) will launch its first smartphone application designed specifically to make it easier for Muslim visitors to find Muslim-friendly products, services, and facilities across Thailand.

To be launched on 22 June 2015, the app for IOS and Android will be both an online and offline guidebook that will help Muslim visitors find mosques, halal restaurants and hotels, shopping centers with prayer rooms, and other facilities around the country. It will initially be in Thai and English, and will later be expanded to include Arabic and Bahasa Indonesia, as well.

TAT has also produced guidebooks and brochures to help Muslim visitors, such as "Halal Check-in Thailand, which contains a list of halal certified restaurants and Islamic attractions in the southernmost provinces of Yala, Pattani, and Narathiwat.

The "Muslim-Friendly Destination” is a pilot project to welcome more Muslim visitors to Thailand. TAT realizes the potential and readiness of Thailand to promote this market. Thailand is already the top destination in Asia for Middle East travelers. Among destinations that are not Muslim countries, it is ranked second in the world by the Global Muslim Travel Index.

At present, the population of Muslims worldwide is estimated at 1.6 billion, or about one in four of the total world population. The Muslim population in the ASEAN region is about 240 million, a significantly large and growing market, especially from Indonesia, Malaysia, and Brunei Darussalam. The potential will rise further after the ASEAN Community is launched at the end of 2015.

As such, Thailand has great potential to serve this market, in which there is a whole new generation of young Muslim Thais emerging nationwide. They will seek promising opportunities in the tourism sector in the future.

Acting TAT Governor Juthaporn Rerngronasa said that the number of Muslim visitors from ASEAN neighbors is expected to increase significantly, especially in southern Thailand. TAT also aims to attract Muslim families to spend the Holy Month of Ramadan in Thailand, especially in some southern provinces, such as Phuket, which is gearing up to be a halal food center, and Krabi, which is positioning itself as a "Dream Destination for Muslims.”

According to TAT, other target markets, such as India, the Gulf Cooperation Council (GCC) countries (United Arab Emirates, Oman, and Kuwait), Egypt, Iran, and North Africa (Morocco, Tunisia, and Algeria) are also very attractive markets in this category. Although the Asia-Pacific region is a major destination for Muslim tourists, led by Malaysia and Indonesia, there are still a lot of opportunities for Thailand to tap the market.

A lot of new products are emerging to cater to the market, such as a leading halal hotel scheduled to open in October 2015 in Bangkok, and quality halal restaurants in the major tourist cities, especially in the southern provinces, as well as the promotion of "Halal Lanna” food in the northern provinces.

Bangkok Symposium on Landmine Victim Assistance

8 June 2015

Thailand will host an international symposium on landmine victim assistance between 14 and 17 June 2015 in Bangkok and the northeastern province of Surin.

The symposium, titled "The Bangkok Symposium on Landmine Victim Assistance: Enhancing a Comprehensive and Sustainable Mine Action,” will be organized by the Ministry of Foreign Affairs.

It is a follow-up on the success of the previous Bangkok Symposium on Cooperation and Assistance, hosted by Thailand in 2014. Thailand has been a State Party to the Anti-Personnel Mine Ban Convention since 1999 and is currently a member of the Committee on Victim Assistance under the Anti-Personnel Mine Ban Convention.

According to the Ministry of Foreign Affairs, the Bangkok Symposium 2015 aims to provide a forum for the participants to engage in an exchange of opinion and experience regarding current status and developments of landmine victim assistance around the world. The participants include representatives and experts from States Parties of the Anti-Personnel Mine Ban Convention and other observer states, as well as international organizations and relevant non-governmental organizations.

By connecting landmine victim assistance to the empowerment of persons with disabilities in general, the objective of the symposium is to ensure full, equal, and effective participation of mine victims in their societies.

The Bangkok Symposium consists of two parts: a forum to exchange opinions and experiences in Bangkok and a visit to minefield in Surin Province.

Under the Ottawa Treaty on the Prohibition of the Use, Stockpiling, Production, and Transfer of Anti-Personnel Mines and Their Destruction, Thailand established the Thailand Mine Action Center (TMAC), which functions as the operations center for all activities involving land mine clearance and humanitarian work. The Royal Thai Armed Forces are the key organizations in the structure of TMAC.

Strict Law Enforcement Emphasized in Fighting Human Trafficking

8 June 2015

The Thai government attaches great importance to the problem of human trafficking, and it stresses strict law enforcement in dealing with this problem.

In his televised national address on 5 June 2015 in the program "Return Happiness to the People,” Prime Minister General Prayut Chan-o-cha said that his government is ready to cooperate with the international community in anti-human trafficking operations.

He hopes that Thailand’s great efforts in fighting human trafficking will gain international recognition and that the country’s ranking in the United States' Trafficking in Persons (TIP) report will be upgraded. The Prime Minister stated that the Government wanted all sectors of Thai society to be aware of this issue and take part in preventing and suppressing trafficking in persons on a continual basis.

Anti-human trafficking had been included in the national agenda. While serious action must be taken against wrongdoers, trafficked victims must be taken care of and other related problems must be dealt with. The Prime Minister explained that human trafficking was involved not only with Rohingya migrants, or any groups of illegal migrants. The issue also exists in other forms, such as child labor, prostitution, beggars, and forced labor.

Also on 5 June 2015, the Prime Minister presided over the opening ceremony of the 2015 National Anti-Human Trafficking Day at Santi Maitri Building, Government House. Speaking at the ceremony, he pointed out that human trafficking is a matter of human rights violations. It has eroded confidence in Thailand’s industrial sector, especially exports, as well as economic performance. The problem has also affected the country’s image and reputation. Thai people must, therefore, join forces in seriously combating this issue.

The Government has expressed its strong intention to work closely with the private sector, non-governmental organizations, civil society, academics, and the media in Thailand and abroad in an attempt to bring trafficking in persons under control.

The Prime Minister said that the Government is also stepping up efforts to handle other related issues, such as those concerning migrant workers, child prostitution, and beggars. At the same time, it is improving the operations of various relevant agencies, especially those in the justice process, for greater efficiency in handling the human trafficking problem.

He said that human trafficking is a complicated issue and could not be solved during a short period. However, he hopes that the situation will improve this year.

Meanwhile, the Ministry of Social Development and Human Security has launched a project "Thailand against Human Trafficking.” Donations are welcome for the project from now on until 5 September 2015, through the Kung Thai Bank, Account No. 021-0-17650-4. Proceeds will go to various foundations to help victims of human trafficking.

Transport Infrastructure Development Contributes to Thailand’s Tourism Growth

7 June 2015

Thailand is in the process of developing its transport infrastructure and is also stepping up efforts to attain the goal of becoming an aviation hub in this part of the world.

The developments in aviation and overland transport infrastructure will contribute to the country’s tourism growth and attract both quantity and quality visitor arrivals in the years to come.

Speaking at the Thailand Travel Mart Plus 2015, held on 3-5 June 2015, the Acting Governor of the Tourism Authority of Thailand (TAT), Mrs. Juthaporn Rerngronasa, stated that Airports of Thailand Public Company is expanding three of Thailand’s key aviation gateways. The expansion at Bangkok’s main gateway, Suvarnabhumi International Airport, will almost double its annual handling capacity to 80 million passengers a year by 2020.

The renovation at Don Mueang International Airport, which handles low-cost airlines, will bring its annual capacity to 30 million passengers by 2015. In addition, Phuket International Airport is being expanded to more than double its annual capacity to 12.5 million passengers by 2016.

Overland travel will connect Thailand with its neighbors in the Greater Mekong Subregion, especially Lao PDR, Cambodia, and Myanmar. There are currently four friendship bridges linking Thailand with Lao PDR, from Nong Khai to Vientiane, Mukdahan to Savannakhet, Nakhon Phanom to Tha Khaek, and Chiang Khong in Chiang Rai to Houay Xai.

Mrs. Juthaporn said that intra-ASEAN travel will be served by plenty of air services and sea ports. It will allow visitors to Thailand to extend their vacation in order to explore the charming culture and various world-renowned tourist attractions in neighboring countries, which are all within three to four hours flying time, similar to the European countries.

In order to facilitate intra- and inter-regional travel, the ASEAN Connect Tourism campaign has been launched. The objectives are to entice visitors to experience new destinations in ASEAN and to promote the connection routes from Thailand to Myanmar, Cambodia, Lao PDR, and Vietnam.

The transport infrastructure will facilitate connectivity to, within, and around Thailand and its neighboring countries.

Concerning tourism growth, Minister of Tourism and Sports Kobkarn Wattanavrangkul said that the Thai tourism industry is set for a promising future, thanks to increased arrivals projected from China, India, and the ASEAN countries, all of which are in Thailand’s immediate neighborhood.

In 2015, TAT has set a target of 28 million visitors, generating around US$42 billion, or 1.4 trillion baht, in revenue. TAT’s new marketing campaign "Discover Thainess” focuses on high-spending, long-staying niche markets, such as health and wellness, weddings and honeymoons, culinary tourism, and marine tourism.

U-Tapao to Be Developed as a Commercial Airport

5 June 2015

U-Tapao – Rayong – Pattaya International Airport, commonly known as U-Tapao Airport, will be developed as a commercial airport, linking with Suvarnabhumi and Don Mueang international airports.

U-Tapao is located in Ban Chang district, Rayong province. It is about 140 kilometers southeast of Bangkok and about a 45-minute drive from Pattaya.

Transport Minister Air Chief Marshal Prajin Juntong and Commander-in-Chief of the Royal Thai Navy Admiral Kraisorn Chansuwanich on 3 June 2015 signed a Memorandum of Cooperation (MOC) on the development of U-Tapao Airport. The project came after Head of the National Council for Peace and Order General Prayut Chan-o-cha on 29 July 2014 instructed the Ministry of Transport and the Royal Thai Navy to cooperate in seeking ways to develop U-Tapao as Bangkok’s third commercial airport.

The development project also involves the construction of an "airport link,” connecting Suvarnabhumi, Don Mueang, and U-Tapao with the city of Bangkok in order to cope with the growing air traffic in the future.

The Ministry of Transport and the Royal Thai Navy began to discuss the project in December 2014, and later, they decided to upgrade U-Tapao, under the concept of "One Airport, Two Missions.” According to the MOC, they will work together in infrastructure development and business planning, under the management of the airport by the Royal Thai Navy.

The development of U-Tapao Airport is divided into three phases. In the first phase, to be carried out from 2015 to 2017, a new passenger terminal will be constructed together with other facilities. With the new building and the existing passenger terminal, the airport will have the capacity to accommodate three million passengers a year. Construction of the second passenger terminal will be completed in 2016.

If the numbers of flights and passengers increase significantly beyond expectation, Airports of Thailand Public Company and Thai International Airways will offer a helping hand in terms of ground services, if requested by the Royal Thai Navy.

Various relevant agencies have also been urged to develop the cluster of eastern provinces into a major tourist destination, so that more passengers will use services at U-Tapao Airport.

The second phase will be implemented from 2018 to 2020 to prepare for accommodating five million passengers a year. The third phase will be implemented from 2020 onwards. It will involve the development of landside and airside, as well as other facilities to enhance the airport's potential, so that it will be able to cope with aviation growth in the future.

After the signing of the MOC, two working groups will be formed to carry out the project, starting from June 2015 onwards.

Bangkok on the List of Top Global City Destinations

5 June 2015

For the second year in a row, Bangkok is predicted to be the world’s second top destination and the number one in Asia-Pacific.

The Tourism Authority of Thailand (TAT) quoted the newly-released MasterCard Global Destinations Cities Index that 18.24 million visitors are expected to spend time in the Thai capital in 2015. London ranked top city for the world with 18.82 million visitors.

The TAT Acting Governor and Deputy Governor for International Marketing, Mrs. Juthaporn Rerngronasa, said that Thailand is seeing a strong recovery in all tourist markets. She thanked all concerned parties and stakeholders for their tireless efforts in building and reiterating the image of Bangkok, Thailand’s main gateway, as one of the world’s most popular tourist cities that is complete with both modern conveniences and old charms.

The MasterCard Global Destinations Cities Index provides a ranking of the 132 most visited cities from around the world, in terms of international overnight visitor arrivals and spending. On the global scale for 2015, Paris ranked third with 16.06 million visitors, Dubai came fourth with 14.26 million visitors, and Istanbul was in fifth place with 12.56 million visitors.

When compared with other destination cities in Asia and the Pacific, Bangkok retained its position at number one, followed by Singapore, Kuala Lumpur, Seoul, and Hong Kong. This ranking has remained unchanged since 2013 when the Thai capital became the first Asian city to top the global list.

In terms of spending, Bangkok ranked seventh in the world and third in Asia-Pacific, with US$12.36 billion projected in international visitor expenditure for 2015.

Mrs. Juthaporn said, "This ranking as well as a number of awards and honors that Thailand and various Thai destinations, including Bangkok, have received so far this year will certainly motivate us to work harder to welcome tourists.

"Under our 2015 Discover Thainess campaign, we hope to share with all our international guests the Thai way of happiness through the various aspects of Thainess; such as, Thai food, Thai arts, Thai wellness, and Thai festivities.”

Thailand expects to welcome a total of 28 million visitors generating an estimated US$ 42 billion (1.4 trillion baht) in 2015.

Strategies for Boosting Thai Halal Products and Services

4 June 2015

The Cabinet, during its meeting on 2 June 2015, approved strategies for developing and enhancing the potential of Thailand’s halal business for the period between 2016 and 2020.

It also gave the green light to an action plan, to be implemented under these strategies, proposed by the Ministry of Industry. The Bureau of the Budget was told to provide budget allocations for relevant agencies that would implement the action plan.

The vision for these strategies is that Thai halal products and services will be developed to higher standards in the world market and certified by halal science on the basis of Islamic principles.

The objectives are to develop Thailand as a major halal production and export base in the ASEAN region and the world and to make Thai halal products better known and gain greater recognition.

In order to achieve this aim, four strategies have been worked out to expand the halal service sector. The first strategy seeks to develop halal standards and certification. In the second strategy, production of Thai halal goods and services will be enhanced. The third strategy seeks to develop the Thai halal business linking with the international market. In the fourth strategy, halal science research and development will receive a boost in order to strengthen the country’s halal industry.

Many agencies are involved in the five-year action plan for developing and enhancing the potential of Thailand’s halal business. They include the Ministry of Foreign Affairs, the Ministry of Tourism and Sports, the Ministry of Agriculture and Cooperatives, the Ministry of Commerce, the Ministry of Interior, the Ministry of Science and Technology, the Ministry of Education, the Ministry of Public Health, the Ministry of Industry, and the Southern Border Provinces Administrative Center, as well as religious and private organizations.

Thailand has great potential for producing and exporting more halal food to the world market, especially ASEAN countries. As the ASEAN Community will be in place in late 2015, the regional market for halal products and services is likely to expand significantly. This huge market is waiting to be tapped by the Muslim Thai community, since around 46 percent of 650 million people in the 10 ASEAN countries are Muslim.

Thailand now ranks fifth among the world’s largest halal producers. The Government has provided support for the halal industry in an effort to upgrade the standards of Thai halal products.

The Halal Science Center at Chulalongkorn University is Thailand’s first halal science agency, and it plays an important role in developing the standards of Thai halal food and providing analytical services and research for the detection of contamination detrimental to halal food manufacturing.

Laying Foundations for Sustainable Economic Growth

2 June 2015

The Government is confident that it is now on the right track in laying the foundations for Thailand’s sustainable economic growth.

 

Deputy Government Spokesman Major General Sansern Kaewkamnerd quoted the recent report by Moody's Investors Service that Thailand's stable BAA1credit rating is supported by a very strong government financial position.

 

He said that Prime Minister General Prayut Chan-o-cha had been informed of the report and thanked all sectors of Thai society for their efforts to help stabilize the Thai economy, so that it has been well-recognized internationally. The Government intends to introduce political and economic reforms for sustainability, instead of establishing populist policies that would lead to negative impacts in the long run.

 

According to Moody’s credit analysis, Thailand's well-diversified economy and high foreign reserves are additional credit strengths. Manufacturing, wholesale and retail trade, and agriculture accounted for around 52 percent of nominal GDP in 2014, and 66 percent of employment. The services sector was the single largest source of GDP growth in 2014, whereas the contribution from agriculture was negligible.

 

Increased public investment spending will be the key to Thailand's growth recovery in 2015 and 2016, whereas sluggish external demand recovery and constraints on private consumption spending due to high household debt may act as a drag on growth. In Moody's view, infrastructure improvements are likely to help improve Thailand's regional competitiveness.

 

The rating agency also says that the military coup on 22 May 2014 restored public order and stemmed economic uncertainty. The stable rating outlook means that credit strengths and weaknesses are balanced.

 

Meanwhile, the Bank of Thailand issued a report on the economic and monetary conditions for April 2015. The report says that the tourism sector and public spending continued to play an important role in supporting the economy. Thailand’s tourism industry continued to expand well, thanks to Chinese and Malaysian tourists.

 

Public spending, particularly on capital expenditure for transportation and irrigation, continued to be disbursed well, despite a slight decline after acceleration in March 2015. Meanwhile, government revenues increased significantly from the same period in 2015.

 

On the stability front, the unemployment rate declined slightly, thanks to improving employment in the production sector after a continuing drop since the beginning of the year. Inflation decreased on the back of domestic retail oil prices, following the lower government oil fund levy and lower prices for meat and eggs.

 

The current account registered a surplus, mainly because of import contraction. The capital account also registered a surplus from inflows of foreign direct investment. Overall, the balance of payments continued to record a surplus, and the ratio of international reserves to short-term external debt remained high.

Bangkok Declaration of the Twelfth Anniversary Celebrations of the United Nations Day of Vesak

1 June 2015

All governmental and non-governmental bodies have been urged to invest more in education to promote mindful education, religious diversity, ethical values, and spiritual development, both among the young and for society at large, as, for instance, in the Village of the Five Precepts Project in Thailand.

 

The call was contained in the Bangkok Declaration of the Twelfth Anniversary Celebrations of the United Nations Day of Vesak, issued on 30 May 2015 in Thailand.

 

The declaration came after the conclusion of the celebrations, organized by Mahachulalongkornrajavidyalaya University (MCU) and supported by the Thai government from 28 to 30 May 2015. Buddhist leaders and Buddhist monks from 85 countries joined the celebrations and meetings under the theme of "Buddhism and World Crisis."

 

As a way to help solve all forms of crises occurring in the world, participants in the Twelfth Anniversary Celebrations of the United Nations Day of Vesak urged all parties concerned to promote the optimistic view that, through compassion and wisdom, crises can be turned into opportunities for well-being. They also urged all individuals, especially those in positions of responsibility, to promote the empowerment of women worldwide.

 

The Bangkok Declaration called for relief efforts for natural disasters and famines, such as the recent earthquake in Nepal, already undertaken by the Buddhist communities worldwide. All governments and communities within the ASEAN Community, together with their neighbors, were also urged to find a solution for the dire situation of the Mekong River and its fragile ecosystem.

 

Buddhist leaders were encouraged to strengthen their ongoing inter-religious and inter-ethnic and cultural dialogue in order to promote mutual understanding, reconciliation, respect, peace-building, and harmony, to create a more integrated society within the ASEAN Community and beyond.

 

In addressing social problems, such as narcotic drugs, ethnic violence and domestic abuse, the Bangkok Declaration called for the use of resources available in the Buddhist traditions, such as the practice of mindfulness, compassion, wisdom, self-responsibility, and respect for life and for all people, regardless of social status and gender, as, for example, with the use of mindfulness meditation to rehabilitate prisoners.

 

On the occasion of the 60th birthday anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn in 2015, the Common Buddhist Text will be published. The Bangkok Declaration also stated that, in commemoration of this special occasion, Phase I of the Union Catalog of Buddhist Texts (UCBT) will be launched. There will be a new UCBT online catalog that will link the online catalogs for all the Buddhist canons. Phase 1 will consist of creating and launching a technically advanced catalog website for the MCU edition of the Pali canon and the MCU Thai translation of the Pali canon.

 

"Vesak," commonly referred to among Thais as "Visakha Puja,” is the most sacred day to millions of Buddhists around the world. It is recognized internationally by the United Nations to acknowledge the contribution that Buddhism has made and continues to make to the spirituality of humanity.

 

Thailand is holding a Buddhism week from 29 May to 9 June 2015 nationwide to mark Visakha Puja, or the "World Day of Vesak.”

Amazing Thailand Grand Sale 2015

30 May 2015

The Amazing Thailand Grand Sale 2015 will be held during the green season from June to August, as part of Thailand’s "Discover Thaines” campaign.

 

The event aims to stimulate the domestic tourism market and promote local products. As in previous years, the Grand Sale is intended to boost tourism and visitor expenditure. It will help promote the image of Thailand as a major shopping destination and contribute to employment generation and income distribution nationwide.

 

In order to encourage spending among local and international tourists, the Tourism Authority of Thailand (TAT) has encouraged many shops, malls, and tour companies, as well as accommodation and spa establishments to join the Grand Sale by offering up to an 80 percent discount on their products and services.

 

In launching the Amazing Thailand Grand Sale 2015, TAT and NCC Exhibition Organizer will join hands in organizing the Amazing Thailand Grand Sale Fair at the Queen Sirikit National Convention Center in Bangkok from 11 to14 June 2015.

 

The fair, which will be in its 14th year, is one of Thailand’s major discount events for tourism products and services. This year, a total of 340 exhibitors, including vendors and operators of tourism-related products and services, have registered to participate in the fair.

 

The Amazing Thailand Grand Sale Fair will feature fashion products from young designers who have made their names on the Internet. They will use this event as a stage to show their potential and further expand their businesses.

 

According to TAT, the four-day fair is expected to attract up to 80,000 visitors, representing a 10 percent increase over the previous year. It is likely to generate about 120 million baht spending on the tourism products and services available at the event.

 

The Government declared 2015 the Year of "Discover Thainess” for tourism campaign. This campaign emphasizes the country's unique cultural treasures and the Thai way of life. It is an attempt to attract first-time and repeat visitors to explore Thailand’s new destinations.

 

Thailand is a world-class shopping destination. From numerous street stalls to one of the world’s biggest bazaars, the Weekend Market, and the mega-malls of Bangkok, there is a shopping spree for every income bracket.

 

Thai silk, woodcarvings, and other handicrafts have become internationally renowned. Many items, such as sterling silver, are as famous for their quality as their affordability. As a result of the promotion of the "One Tambon, One Product, or OTOP,” program, many craftspeople from rural parts of the country have been able to set up cottage industries to revive dying arts and crafts, which are then sold to tourists.

The Thai Government’s Vision in the Years 2015-2020

30 May 2015

Prime Minister Prayut Chan-o-cha has stated that his government’s vision is to see Thailand in the years 2015-2020 enjoying "Stability, Prosperity, and Sustainability.”

 

The statement was part of his remarks at the opening ceremony of the 71st Session of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), on 28 May 2015, at the United Nations Conference Center in Bangkok.

 

In his remarks, the Prime Minister explained the vision. "Stability includes political stability as well as safety of people’s lives and properties. The rule of law and access to justice are the foundation of development. At the same time, stability is the cornerstone of prosperity as it provides an atmosphere conducive to economic growth, trade and investment. Trade and investment must have prudent measures, risk protection, as well as resistance to shocks such as fluctuations in the global economy or natural disasters. Most importantly, to ensure sustainability, economic growth must be environment-friendly so not to impact on the development capital of future generations.

 

 "Sustainable development must embrace people’s needs and build on a genuine understanding of their concerns on the grounds, from their communities. In this regard, Thailand has been guided by His Majesty the King’s Sufficiency Economy Philosophy in formulating our development policies.

 

"Sufficiency Economy Philosophy teaches us to build strength from within, at the individual, community and society levels. It teaches us to act with knowledge, understanding and moderation. In business terms, this translates to resource efficiency, evidence-based policy-making, as well as having insurance, immunity and resilience.”

 

Prime Minister Prayut said that Thailand will strive for a balance between the three pillars of development, namely, economic, social and environment.

 

"Economic pillar: A strong economy is one that expands inclusively, strives to alleviate poverty and inequality, narrows development gaps, and provides opportunities for equal access to resources. Thus, Thailand emphasizes strengthening the development of small and medium enterprises (SMEs) and the agricultural sector. To enhance national competitiveness, we have given high priority to science and technology as well as innovation to create high-value added products.

 

"Social pillar: Societies must be equal and equitable, adhere to good governance, and geared towards raising the living standards of people in terms of health, education and welfare. Thailand has promoted universal health coverage and has focused on human life-cycle development to promote quality growth of children from birth on, so that one can have a decent employment and retirement with dignity.

 

 "Environmental pillar: The impacts of climate change and natural disasters are common challenges for humankind. Economic growth must not be achieved at the expense of the environment. We should promote renewable energy and environment-friendly industrial development. Moreover, countries must accord priority to disaster risk reduction and strengthening resilience to disasters which are increasing in severity. Other areas in which Thailand attaches great importance to are integrated water resources management, restoration of upstream forests, and incorporating resiliency to urban planning and development to lower losses of lives and properties.”

 

Prime Minister Prayut emphasized that a balanced and sustainable development can only be achieved with people, quality people. The development of human capital should encompass their physical, mental and intellectual growth. A country’s competitive edge cannot be heightened in the absence of human resources. Access to quality education is a common challenge for many countries. Social development begins in families and schools. Life-long learning must be promoted.

 

"Moreover, the digital age we are living in now allows us to learn and communicate in every single minute. Therefore, we should use social media to create value and knowledge rather than provoke division and hatred,” he said.

OTOP Midyear 2015 Fair and Efforts to Expand OTOP Markets

28 May 2015

The Government is striving to expand markets for Thai community products, under the "One Tambon One Product,” or "OTOP,” program.

 

Deputy Interior Minister Suthee Markboon stated that the Ministry of Interior, through the Community Development Department, has continued to develop the quality and potential of OTOP products, which would have a larger market in the ASEAN region.

 

Mr. Suthee presided over the opening of the OTOP Midyear 2015 Fair, being held at the Exhibition Halls 3-8, IMPACT Trade and Exhibition Center, Muang Thong Thani, Nonthaburi province, from 25 to 31 May 2015.

 

In the opening ceremony, he explained that the Government has a policy to promote the OTOP program in order to strengthen the local economy, thus contributing to the overall Thai economy. In 2015, the Ministry of Interior has set a target for earnings from OTOP products to reach 100 billion baht.

 

The OTOP program aims to build up small enterprises in communities by encouraging the people to manufacture local products using their homegrown skills and expertise. It is a way of stimulating human creativity and innovation at the grassroots level, as well as generating more income for local people. The Government offers assistance and advice in terms of modern technology, marketing, and management techniques. The assistance will make their products attractive to both domestic and international markets. It will also enable villagers to produce their goods to meet higher standards.

 

The OTOP Midyear 2015 Fair comprises more than 1,500 booths, with OTOP products from the four regions of the country. There is a food bazaar comprising 120 booths. Apart from an exhibition and demonstrations of OTOP making, the fair also features halal OTOP products from the southern border provinces. The fair also includes several cultural performances.

 

Apart from marketing channels, OTOP operators also want the Government to provide them with greater access to funding sources. At the OTOP Midyear 2015 Fair, a special zone is arranged to provide financial counseling services for OTOP operators by leading financial institutions, such as the Government Savings Bank and SME Bank.

 

The ASEAN Community, which will become a market of 600 million people, will be in place in late 2015. OTOP operators will have greater opportunities to expand their products into other ASEAN markets.

 

The OTOP initiative has provided employment and generated income in respective localities, while helping communities reduce out-migration in search of jobs elsewhere. At the same time, it will ensure that wealth circulates within the communities, thereby increasing the purchasing power in rural areas.

Celebrations of Visakha Puja Festival 2015 in Thailand

27 May 2015

The Religious Affairs Department is scheduled to hold a Buddhism week from 29 May to 9 June 2015 nationwide to mark the Visakha Puja Festival, or the "World Day of Vesak.”

 

On this occasion, Thailand is hosting the 12th United Nations Day of Vesak Celebration 2015 between 28 and 30 May. More than 5,000 Buddhists and Buddhist monks from 90 countries are expected to attend this event.

 

Visakha Puja, or the Day of Vesak, commemorates the birth of the Buddha, his attainment of enlightenment, and his passing away. An extraordinary aspect of the occasion is that the three incidents took place on the same day but different years. In 2015, this significant day coincides with 1 June. Visakha Puja is recognized as an international event by the United Nations

 

In Bangkok, events for the Buddhism week will be held at the Sanam Luang ceremonial site. Among various activities are exhibitions, Dhamma lectures, sermons, prayers, alms-offering, and a candle-lit procession. The Religious Affairs Department is also joining hands with the Bangkok Mass Transit Authority in organizing religious tours of nine temples for interested people. The Bangkok National Museum will allow people to pay homage to significant Buddha images inside the museum during the period. In the provinces, the provincial culture offices and local temples will jointly hold religious activities to celebrate this festival.

 

Culture Minister Vira Rojpojchanarat said that copies of pamphlets in Thai, English, and Chinese have been distributed for both Thais and international tourists, to help them know more about the Visakha Puja Festival. A campaign has also been launched to encourage the people to display the Thai national flag, together with the Dhamma Wheel flag, in front of their households, and to make merit, as well as refraining from all vices, as a tribute to the Buddha.

 

As for the 12th United Nations Day of Vesak Celebration 2015, it will take place at Mahachulalongkornrajavidyalaya University, a public Buddhist university in Wang Noi district of Ayutthaya province, and at the United Nations Conference Center in Bangkok. The participating Buddhist leaders and monks will also join a candle-lit procession at Buddhamonthon, a Buddhist religious center in Nakhon Pathom province.

 

The 12th United Nations Day of Vesak Celebration features an international conference on the theme "Buddhism and World Crisis.” The conference comprises discussions on four major topics: Buddhist Response to Social Conflict, Buddhist Response to Environmental Degradation, Buddhism and ASEAN Community, and Buddhist Response to Educational Crisis. There will be a keynote address on Buddhism and World Crisis by Dr. Damien Keown, Emeritus Professor of Buddhist Ethics at Goldsmiths College, University of London.

 

Dr. Keown stated that, while the world had faced many crises in the past, the threat seems greater today because of modern developments, such as globalization, advanced technology, mass migration, and the accelerated speed of transport and communications. There is a greater need than ever for Buddhist teachings to be heard, and not just heard but implemented with commitment and decisiveness.

Government Emphasizes Innovation for Development

25 May 2015

The Government is attaching great importance to fostering innovation and has introduced measures to promote research and development in order to attain the goal of stability, prosperity, and sustainability.

 

In his televised national address on 22 May 2015 in the program "Return Happiness to the People,” Prime Minister Prayut Chan-o-cha said that the listing of Thai innovations and the opening up of markets for innovative Thai products and services are among measures to promote innovation for development.

 

Government agencies are also allowed to buy products and services on the innovation list with at least 10 percent of their budget allocations each year, but not exceeding 30 percent. However, the products and services must be certified by relevant agencies to ensure their accepted standards. They also must be creative and applicable on a commercial basis.

 

The Industrial Technology Assistance Program has been carried out and extended in an effort to strengthen small and medium-sized enterprises (SMEs). The project is intended to help SMEs solve their technical problems and meet the challenges in introducing technology-based products and processes.

 

The Prime Minister explained that a target had been set to develop 13,000 entrepreneurs. The public sector will provide five billion baht in financial assistance, which accounts for one-third of the total investment budget. The remaining amount will come from investments by the private sector. It is expected that the program will reduce production costs for SMEs and contribute to the country’s overall economy. The program is likely to generate employment, valued at 90 billion baht, within six years, as well.

 

The Prime Minister said that a fund has been set up in the form of a "fund of funds” to mobilize money for investment through a joint-venture fund, established by universities and research institutes. The funding source will support the country’s innovation on a commercial basis.

 

Meanwhile, Minister of Science and Technology Pichet Durongkaveroj said that the Committee on the Development of the National Innovation System, during its recent meeting chaired by the Prime Minister, stressed the importance of using science and innovation in enhancing Thailand’s competitiveness and upgrading people’s quality of life.

 

The meeting agreed to spread innovation to the regional areas of the country. The Ministry of Science and Technology has been assigned to hold a Thai innovation festival in 2015 in the North, the South, and the Northeast.

 

The Government Public Relations Department has been instructed to disseminate more news and information on innovation, so that Thailand’s innovative products and services would become better known. The meeting also agreed to use markets in the public sector to launch certain innovative products and services, which would make them more widely accepted.

Trends and Challenges in Thailand and the Region

24 May 2015

Banks have been urged to plan ahead and invest more for the future to meet trends and challenges in both Thailand and the region.

 

In his speech at the Association of International Banks Dinner Talk on 21 May 2015 in Bangkok, Governor of the Bank of Thailand Dr. Prasarn Trairatvorakul highlighted the trends and challenges from technological developments, the ageing society, urbanization, and regionalization.

 

Firstly, Dr. Prasarn stated that, with technological developments, traditional barriers to entry were brought down, allowing non-banks, such as financial technology ("fintech”) companies and cross-border players, into the market, which helped reduce operating costs. At the same time, consumers expect better and more timely services. Banking has become something that customers want to do "anytime and anywhere,” and they want to do it cheaply as well. While technology may help people reach their destination faster, it also dictates that they be more adaptive and responsive to changes. Banks that get stuck in the past will lose out quickly.

 

A second challenge that put banks’ adaptability to the test is the shifting demographic structure of Thailand’s population. It is expected that by 2025, the number of older persons in Thailand will account for 20 percent of the population and exceed the number of children under 15 years old.

 

In an ageing society, Dr. Prasarn said, banks that are able to cater to the needs of an older population and tailor their products to accommodate changing demands would be successful.

 

The next trend, urbanization, happening in many East Asian countries, brings both challenges and opportunities. According to the World Bank Research that had come out early this year, almost twelve million people in Thailand now live in urban areas; about ten million live in Bangkok alone. The number seems low for the area outside Bangkok because of the strict definition of urban areas employed by the World Bank.

 

The same research also says that cities outside Bangkok are growing at a much faster rate, and some cities, such as Surat Thani, have more than doubled their population in ten years. Urbanization results in increased purchasing power and fuels domestic demand. More infrastructure investments, such as housing, electricity, and transportation, will be required. This is where the financial sector can contribute and benefit from the development.

 

The trend toward regionalization poses a fourth challenge as well as an opportunity for the banking sector. With the commencement of the ASEAN Economic Community in late 2015, competition will intensify, benefiting those prepared to pursue opportunities across borders. ASEAN as a group has already agreed on its Financial Integration Post-2015 Vision for 2025, and now is in the process of operationalizing it with the milestones and targets to be set in all areas, including banking, capital markets, and insurance.

 

The Governor of the Bank of Thailand stressed that banks could no longer afford to focus on maximizing short-term returns at the expense of future growth and competitiveness. They should not get struck with maximizing short-term returns or past successes, but must invest more for the future.

National Budget for the 2016 Fiscal Year

23 May 2015

The national budget for the 2016 fiscal year has been set at 2.720 trillion baht, representing an increase of 145 billion baht, or 5.6 percent, over that of 2015.

 

In his statement on the 2016 national budget at the first reading by the National Legislative Assembly on 21 May 2015, Prime Minister General Prayut Chan-o-cha explained that out of the national budget, more than 2.706 trillion baht would be set aside for the regular expenditures of various government agencies and state enterprises, while 13.5 billion baht would be allocated as payments for the national reserves.

 

Like the 2015 national budget, the 2016 national budget has been set on the basis of the Sufficiency Economy approach and the royal advice to "understand, reach out, and develop.” The objective is to attain the goal of stability, prosperity, and sustainability, in accordance with Thailand’s vision 2015-2020.

 

The budget is also based on the principles set in the 11th National Economic and Social Development Plan, 2012-2016. It will be a deficit budget because there are still many risks in the country’s economic situation. The investment budget accounts for 20 percent of the total budget.

 

The Government expects that it will be able to earn 2.439 trillion baht in revenue in the 2016 fiscal year. It will also continue to maintain strict fiscal discipline. Public debt now accounts for only 46 percent of GDP.

 

General Prayut said that the Thai economy in 2016 is predicted to expand by 3.7 to 4.7 percent, as the global economy is likely to improve and Thai exports are expected to increase. Inflation is expected to stand at a low level of between 1.1 and 2.1 percent. A major risk is that oil prices might increase more quickly than expected, and the stronger baht might affect the export sector.

 

Thailand’s international reserves at the end of March 2015 were 516.3 billion US dollars. This level is considered stable. As of 14 May 2015, the national reserves stood at 180.7 billion baht. Thailand continues to record a current account surplus.

 

In order to prepare Thailand for the ASEAN Community in late 2015, a budget of about six billion baht has been set aside for 18 ministries and 153 agencies. The Ministry of Foreign Affairs, the Ministry of Commerce, and the Ministry of Social Development and Human Security will serve as major responsible agencies.

 

About 6.4 billion baht has been allocated for developing special economic zones, 70 billion baht for water resource management, and 30.5 billion baht for the resolving of problems in the southern border provinces.

 

The National Legislative Assembly passed the national budget bill in its first reading and formed a 50-member ad hoc committee to scrutinize the bill. The second and third readings are scheduled for 17 August 2015.

Thai Rice Policies and Strategies

22 May 2015

The National Rice Policy and Management Committee has set a goal of developing Thailand as a leading country for rice trade in the world market through efficient marketing mechanisms.

 

Thailand also aims to seek cooperation with ASEAN in order to create a balance in both production and trade, so that the country will become a stable rice-producing country. As a result, farmers will have better living conditions and farmers’ organizations will be strengthened. This will also lead to a fair trade system, without market distortions.

 

In his keynote address on 20 May 2015 at Thailand Rice Convention 2015, Prime Minister General Prayut Chan-o-cha said that the Government has worked out clear policies and strategies to develop Thai rice. Despite market fluctuations and impacts on rice production, caused by various forms of natural disasters, as well as greater competition, Thailand is still striving to produce and export rice of good quality to consumers worldwide.

 

In 2014, Thailand reclaimed the world's top rice exporter status. It exported 10.97 million tons of rice, valued at 5,439 million US dollars. In 2015, Thailand has set a target to export rice in both volume and value, close to that of 2014. Major importers of Thai rice include China, the United States, the European Union, South Africa, and countries of Oceania.

 

The Prime Minister said that demand for rice is increasing in accordance with the growing world population. It is predicted to increase by 11 percent, from 435 million tons in 2009-2010 to 483 million tons in 2014-2015. The Government is aware of the need to restructure rice production and management in line with the changing situation.

 

In the short term, the Government will reduce the areas for off-season rice farming, assist farmers in rice production planning, and promote research and development in order to increase the potential for the production of high-quality rice.

 

In the long term, it focuses on developing rice varieties, with high yields but low production costs. A target has been set to increase Thai rice production by 25 percent and reduce production costs by 20 percent in 2021. At the same time, the Government will promote top-quality rice for niche markets, such as organic rice, sprouted brown rice, riceberry rice, and Sang Yot rice. The objective is to add value and diversity to Thai rice. New technology will be adopted to reduce production costs and increase efficiency, as well as upgrading the value chain and the processing of rice into various products.

 

In order to maintain the quality of Thai rice, premium rice and indigenous rice that has been registered as geographical indications, such as Thung Kula Ronghai rice, will receive a major boost. Thai rice culture will also be added to various international trade fairs in order to make Thai rice better known worldwide.

 

Moreover, the Government is implementing a policy to develop special economic zones to add value to rice and other agricultural products from Thailand and neighboring countries.

National Referendum on the Draft Constitution of Thailand

21 May 2015

The Election Commission of Thailand has been entrusted with arranging a national referendum on the draft constitution of Thailand.

 

The decision was made by a joint meeting of the Cabinet and the National Council for Peace and Order (NCPO), chaired by Prime Minister General Prayut Chan-o-cha on 19 May 2015.

 

The meeting agreed that the 2014 Interim Constitution be amended to allow the organizing of the national referendum in the next step. After the passage of the draft constitution, the national referendum would take place immediately. The Prime Minister said that the amendment to the Interim Constitution had been proposed by the National Reform Council. The national referendum would also delay the timeframe of the roadmap set earlier for a general election.

 

Deputy Prime Minister Wissanu Krea-ngam said that the amendment to the Interim Constitution is likely to be carried out in June. The Cabinet and NCPO would propose that the National Reform Council vote to amend the Interim Constitution within 15 days. The Election Commission of Thailand will have to print the draft constitution for 47 million eligible voters to consider.

 

Mr. Wissanu said that the national referendum is expected to take place in January 2016. After the referendum, about four months will be needed for the process of drafting organic laws. Then a general election will be held within 90 days after the announcement of the organic laws.

 

The upcoming national referendum on the constitution will be the second of its kind in Thai history. The first referendum took place on 19 August 2007 for the 18th constitution of Thailand. It went smoothly in all parts of the country. Official results, announced on the following day by the Election Commission of Thailand, showed that out of 45 million eligible voters, 25.9 million cast their ballots on the referendum day. A total of 57.8 percent of voters chose to support the new charter, while 42.2 percent voted against it.

 

At the joint meeting of the Cabinet and NCPO on 19 May 2015, both sides also discussed efforts to continue to move the country toward stability, prosperity, and sustainability. Their joint efforts aim to maintain internal security and prevent conflicts. They also seek to mobilize the national administration for the maximum benefit of the people, plan for reform in the future, and amend laws to facilitate national administration.

 

Mr. Wissanu explained to the meeting that Section 44 of the Interim Constitution was recently used to solve problems concerning Thailand’s civil aviation industry, in order to comply with the International Civil Aviation Organization (ICAO) standards, as well as illegal, unreported, and unregulated (IUU) fishing. It aims to complete certain tasks that would normally take considerable time to implement.

 

He reaffirmed that Section 44 had not been used in terms of judicial power, which is exercised through the courts.

Gross Domestic Product in the First Quarter of 2015

20 May 2015

The Cabinet, during its meeting on 19 May 2015, acknowledged a report on Thailand’s economic situation in the first quarter of 2015. According to the report, the Thai economy in the first quarter of 2015 grew by 3 percent, accelerating from 2.1 percent in the previous quarter.

 

The Office of the National Economic and Social Development Board (NESDB) stated that the growth rate was spurred by non-agricultural expansion, which rose by 4.1 percent.

 

The expenditure side was assisted by the expansion of private consumption expenditure, government investment, and export of services. On the production side, improvements were seen in almost all sectors, especially the construction, hotel and restaurant, transportation, and industrial sectors, which continued to grow. After seasonal adjustment, the Thai economy in the first quarter of 2015 expanded by 0.3 percent over the fourth quarter of 2014.

 

Private consumption increased by 2.4 percent, improving from the growth of 2 percent in the previous quarter. General government consumption increased by 2.5 percent, compared to a 3.6 percent growth in the previous quarter.

 

Total investment grew by 10.7 percent, accelerating from a 3.2 percent growth in the previous quarter. Public investment expanded by 37.8 percent. Construction improved remarkably, as the disbursement of the Government’s capital budget in land and construction grew by 74 percent. Private investment expanded by 3.6 percent. For the first time in seven quarters, the Business Sentiment Index stood at a level higher than 50, which is the level at which business expand their investment.

 

The export value was recorded at 52.9 billion US dollars – a 4.3 percent contraction – and the export volume declined by 2.6 percent. The decline was a result of several factors: the deceleration in key trading partners’ economies, especially China and Japan; the appreciation of the baht; the drop in export prices in line with lower crude oil prices and agricultural prices in global markets; and the end of the Generalized Scheme of Preferences (GSP) for Thai exports to Europe.

 

Export products recorded an expansion in value, including automotive products, machinery and equipment, integrated circuits and parts, and printed circuits. The export products that experienced a contraction in value included rice, rubber, cassava, petro-chemical products, and petroleum products.

 

Exports to major markets, such as the United States and Australia, expanded in this quarter, while exports to the European Union, Japan, China, and ASEAN contracted.

 

According to the NESDB’s press release on 18 May 2015, the Thai economy in 2015 is projected to grow by 3-4 percent, downwardly revised from the previous projection of between 3.5 and 4.5 percent. The revision is mainly due to a downward revision of the export volume.