Siam News Network

Thailand’s parliament is meeting this week for the first time since the July 3 general elections that resulted in a clear majority for the Pheu Thai Party and its leader, Yingluck Shinawatra.

But Ms. Yingluck faces considerable challenges ranging from selection of her Cabinet to implementing the party’s populist election promises.

Thailand’s first female PM

Thailand’s parliament is expected to elect the country’s first woman prime minister, Yingluck Shinawatra, in a vote that could come as early as Friday.

The 44-year-old’s Pheu Thai Party won 265 seats in the house and joined minor parties to hold a ruling majority of 300 seats in the 500 member House of Representatives.

At Monday’s ceremonial opening, Thailand’s Crown Prince Maha Vajralongkorn, speaking on behalf of his father, the Thai king, called on lawmakers to show responsibility in office.

_{Thailand’s Crown Prince at Monday’s opening parliamentary session in Bangkok, Aug. 1 2011 (Reuters)}

Crown Prince Vajiralongkorn told the almost 500 parliamentarians they had to be “honest and sincere in their duties” as well as being aware of the public benefits to the community.

The July elections capped a tumultuous few years in Thailand between supporters of former prime minister Thaksin Shinawatra and his opponents.

Thaksin’s power

Thaksin is Ms. Yingluck’s brother who has been in exile since fleeing Thailand in 2008, where he faces a two year jail term on corruption charges.

Pro-Thaksin parties won elections in 2007. But court rulings and anti-government protests led to a coalition led by Democrat Party leader Abhisit Vejjajiva in December 2008 backed by the urban elite and military.

The Abhisit administration faced two years of protests by pro-Thaksin supporters, known as the Red Shirts. These turned violent last year that left over 90 people dead as security forces moved to end the rallies.

Former government spokesman and Pheu Thai Party member, Kudeb Saikrajang, says a Yingluck led government is expected to be cautious but enjoy strong support in the medium term.

“I think Khun Yingluck is very cautious and Khun Thaksin also has chosen to warm walk this way for him and for the government,” Kudeb says. “I think she has learned that how to run the country, how to assume the power in a more flexible way. So she will have this instruction from many quite concerned. I think she will do much better than we expected.”

Governing challenges

Analysts say Ms. Yingluck faces several challenges including selecting Cabinet posts. Political observers say she is considering some candidates from outside her party for key positions in finance, foreign affairs and defense ministries.

Political scientist Thitinan Pongsudhirak, from Chulalongkorn University, says the new government faces considerable challenges in implementing its policy program as well as from those opposed to Thaksin when he was in power.

“There will be no honeymoon for Yingluck,” says Thitinan. “She has to hit the ground running. There are all kinds of questions and bumpy challenges confronting her. She has to maintain some space and some kind of workable relationship with her brother, the deposed former Prime Minister Thaksin Shinawatra, at the same time she has a lot of demands on her.”

Thitinan says the demands include placating the pro-Thaksin Red Shirt movement, of which several members were elected to parliament, and implementing election promises that include higher salaries as well as a sharp increase in rice prices for farmers.

There is also the issue of several pending corruption cases against Thaksin. While the cases would only go forward should he return to Thailand, the Pheu Thai Party said it is considering an amnesty bill covering events since 2006 that analysts say is likely to include Thaksin. Such a move, that paves the way for Thaksin’s return to the country, could trigger fresh protests from pro-royalist and anti-Thaksin groups.

Continued here:
Thai Parliament Prepares to Elect First Woman Prime Minister

Thailand Business News

The 18 Red shirts leaders were accused of violating Articles 112 and 116 of Thailand’s Criminal Code by allegedly violating the monarchy with their speeches.. Share this Article

Read more:
Red Shirts protesters charged with sedition

The output of other sectors was also affected during the recent crisis, although less markedly because they had been growing slower than the sectors linked to external demand.
Policies that could contribute to reducing Thailand’s dependence on foreign demand include a phased liberalization of the services sector, boosting transport infrastructure, a reform of educational curricula and improved access and quality of higher education to boost skills of the labor force, better integration of universities, firms and government, and improved social safety nets

‘‘The bigger Thai companies going on international road shows still stop in the US, Europe, Hong Kong and Singapore. But a few are also beginning to go to China and the Middle East as well,’’ Mr Wood said.
Many Thai listed companies, while public, aren’t really public : they remain family-owned companies with low free floats.

		The Center for the Administration of Peace and Order (CAPO) has expected that about 30,000 supporters would show up in the upcoming mass gathering of the United Front of Democracy Against Dictatorship (UDD).
Thailand Business News

Follow this link:
Thailand braces for New Mass Gathering of Red Shirts

For 2009 as a whole, nonetheless, real GDP fell 2.3 percent despite a pick-up in consumption in the fourth quarter, external demand will be the main contributor to growth in the near term.
Government consumption will likely contract due to the phase-out of consumption measures of the first fiscal stimulus package. Investment is expected to recover, as capacity utilization rises and deferred maintenance, machine replacements and limited expansion of existing plants take place. In addition, there are indications that construction investment, long subdued, may be picking up.

Pathom Yongvanich, a founding partner of PYI, says Asian markets have not only benefited from the inflow of international capital, but also from the growing sophistication of Asian investors themselves.
‘‘Only 35 companies on the SET have market capitalizations of more than $1 billion, with another 80 companies between $200 million and $1 billion.

		About 1,500 police officers — will be deployed on the route where anti-government protesters of the United Front for Democracy against Dictatorship (UDD) will march in the Thai capital Saturday to demand the government to release its leaders imprisoned on charges of terrorism, a senior police officer said.
Thailand Business News

Link:
Red Shirts protesters to march in Bangkok

A severe drought and a decline in rice prices in early 2010 do not bode well for agricultural production and consumption, although increased employment in manufacturing will partly offset the impact to agriculture.
The continuation of certain government policies, especially the pension to the elderly and free education should also support higher consumption levels for the poor. The longer-term goal of reducing reliance on external demand will take time, especially given political uncertainties that hinder the government’s ability to implement not only its investment program but also needed structural reforms.

There has been a massive outflow from China, particularly into energy and resources. The more savvy Thai companies are increasingly tailoring their investor relations strategies to the changes in power in the markets.
‘‘Only 35 companies on the SET have market capitalizations of more than $1 billion, with another 80 companies between $200 million and $1 billion.

Author: Chalongphob Sussangkarn, TDRI, Bangkok

The Red Shirts’ protracted occupation of a central Bangkok area and the eventual violent and deadly end in May 2010 reiterated the highly divisive situation in Thai politics. Continue Reading

HONG KONG (MarketWatch) — The Greek sovereign-debt crisis and fiscal frailty of many European nations can reinforce the idea that the time has come for Asia — state finances here are in good health, supported … Thailand Business News

Read more here:
Should Hong Kong be worried about Thailand’s ‘Red Shirts’?

Thailand’s 2010 GDP growth is projected at 3.5%, driven by domestic demand. In the context of weaker global demand in 2010, exports will grow modestly, but the restocking cycle and slow rebound in investment also imply a pick-up in imports, which results in muted net external demand. Public and private investment add 0.8% point to the growth rate, while normal stocking patterns provide a boost to growth of 1.5 % points . Thailand’s Household consumption picks up modestly, adding 0.8 percentage point to the growth rate, whereas public consumption decelerates from 2009 levels but still adds 0.4 percentage point.

FDI policies

The country’s well-defined investment policies focus on liberalization and encourage free trade. Foreign investments, especially those that contribute to the development of skills, technology and innovation are actively promoted by the government. Thailand consistently ranks among the most attractive investment locations in international surveys, and the World Bank’s 2010 Ease of Doing Business report places Thailand as the 12th easiest country in the world in which to do business.

Government support and incentives are provided for foreign investors in Thailand

Numerous government agencies support investors. Through the Board of Investment, the government offers a range of tax incentives, support services and import duty exemptions or reductions to an extensive list of promoted activities.
Companies receiving investment promotion privileges from the Board of Investment are not subject to foreign equity restrictions in the manufacturing sector, and there are no local content requirements nor export requirements, as Thailand’s investment regime is in total compliance with WTO regulations.
The Board of Investment also coordinates the activity of the One-Stop Service Center for Visas and Work Permits, which enables foreign staff of BOI-promoted companies to obtain work permits and long-term visas within three hours or less.
The BOI also administers the One Start One Stop Investment Center, which opened in November 2009 to facilitate a full range of services and streamline investment procedures by bringing representatives from more than 20 government agencies under one roof.
In addition to the activities of the BOI, other government organizations, such as the Department of Export Promotion and international chambers of commerce, provide invaluable support and a host of other important services.

The words of the Thai Royal Anthem, performed at most official ceremonies and before the start of every movie, may strike a Western ear as somewhat archaic.

After all, the system of absolute monarchy ended in 1932, following a revolution staged by a small group of disaffected civil servants and military men. Since then, Thai kings have ruled under a constitution; their powers theoretically no greater than those of European monarchs. Yet, since he was officially crowned in 1946, His Majesty King Bhumibol Adulyadej has assumed the role of constitutional monarch and has worked tirelessly on behalf of his people, gaining a measure of personal devotion that is probably more intense than that felt for any of his all-powerful ancestors. It has been said that Their Majesties King Bhumibol and Queen Sirikit are the hardest working royal couple in the world with a work load once estimated to be equal to at least one function every day of the year. Of the several institutions that form the foundation of modern Thai life, the one His Majesty represents is not only the most visible but also the most revered.

The United Front of Democracy Against Dictatorship (UDD) has responded rather positively with the proposal for national reconciliation presented by Prime Minister Abhisit Vejjajiva via a televised address. Shortly after the televised address of the prime … Thailand Business News

More:
Thailand’s “red shirts” are considering Prime Minister’s peace proposals

The political unrest in the last quarter of 2009 will continue to dampen tourist confidence into at least the first half of 2010. In addition, the slowdown in growth of the economies from which a large number of tourists come to Thailand, such as EU and Japan, will reduce tourist receipts next year. With the slowdown in exports capacity utilization is expected to fall in Thailand. A clear exit strategy from the fiscal stimulus has yet to be articulated. Because part of the government’s capital budget has been moved off-budget as part of the stimulus package, some additional capital expenditures, as well as the maintenance expenditures of the newly-built infrastructure, must be incorporated into future budgets once the stimulus package is finalized.

Thailand enjoys a strategic location and serves as a gateway into the heart of Asia – home to what is today the largest growing economic market.
The country also offers convenient trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), and easy access into the Greater Mekong sub-region, where newly emerging markets offer great business potential.

Thailand plans to be the Hub of ASEAN

Thailand was one of the founding members of ASEAN and has been instrumental in the formation and development of the ASEAN Free Trade Area (AFTA).
AFTA entered into force on 1 January 2010 for the six original ASEAN (ASEAN-6) members (Thailand, Singapore, Malaysia, Indonesia, Philippines, and Brunei), thereby reducing import duties to zero; the so-called CLMV countries (Cambodia, Laos, Myanmar and Vietnam) will follow suit in 2015.
Thailand has forged close economic cooperation with other ASEAN member nations, and Thai manufactured products and services have access to their markets, which includes all 10 ASEAN countries. ASEAN is home to more than half a billion people, GDP in excess of US$1.5 trillion and total trade of well more than US$1 trillion per year.

EGAT has also announced its solicitations for power purchase from IPP projects to enhance competition in the generation business. This has been followed by power purchase from small power producers (SPPs) to particularly promote energy efficiency and the use of renewable energy resources for electricity generation.
In terms of international cooperation, EGAT has collaborated with neighboring countries in pursuing the ASEAN Power Grid Project to integrate the transmission systems within ASEAN countries for energy security and mutual economic benefits. The Electricity Generating Authority of Thailand is also in talks with neighbouring countries, to make joint developments in hydropower projects.

Amidst changes and challenges, EGAT has been and will be tirelessly developing the country’s electric power system to ensure that its electricity supply remains the most secure and reliable infrastructure service which contributes significantly to the betterment of the quality of life and the environment and drives the country’s economic and social growth in the future. The expertise and experience gained over 35 years of operation have provided EGAT with the multi-faceted power and strength needed in maintaining its leadership and a competitive edge in the new business environment.