“Thailand Focus 2004” was organized by the Federation of Capital Market Organizations (FeTCO) in conjunction with The Stock Exchange of Thailand, Credit Suisse First Boston, and ABN AMRO. The first day of the 4 day conference was held today (Sept.20) at the Four Seasons Hotel, Bangkok. On this first day, the PM highlighted evidence of the fundamental strengths of the Thai listed companies. He said, “the companies’ strengths could be observed in the recovery of their total earnings, which totaled more than USD 4.1 billion.”
Prime Minister Thaksin continued, “Thailand-- along with almost everybody else—will inevitably be affected by higher fuel prices, rising interest rates, and terrorism. Our fundamentals are still firm even though that these conditions and obstacles are beyond Thailand’s control”. The PM further asserted that “investors should have confidence in the capabilities of this government, with its thoughtful and well-planned policy and budget administration, our economy will still be able to sustain a high rate of growth. This year’s growth should be well over 6 percent”.
“Thailand Focus 2004” has attracted as many as 200 investors, fund managers, and other financial professionals from both local and overseas institutions. The ministers managing the country’s economy, led by the Finance Minister, also assured participants that Thailand is an ideal place for investment opportunities.
PM Thaksin noted that the stock market in 2003 was tremendously active. The SET Index soared 117 percent while trading turnover jumped by more than 148 percent. These two extraordinary growth figures both led the rest of the world for 2003.
PM Thaksin also emphasized the importance of the capital market and the potential of Thailand in developing its financial instruments so that it’ll become a regional hub in, for example, in land transportation, shipping, and aviation. The New Bangkok International Airport (NBIA), also known as “Suvarnabhumi Airport,” is set for launch in 2005.
“When our government first took office, we were pre-judged that our campaign policies would all fail miserably. Then, during the application of our policies, we were faced with so many external obstacles to growth that were beyond our control. These included the SARS epidemic, the bird flu, the Iraq War, and most significantly terrorism, which have all been challenges for the current government,” the PM said.
The PM proudly noted that the strength of Thai exports no longer came from cheap labor or cheap prices, but rather from a level of quality that is now able to hold its ground against the negative pricing pressures of a highly competitive world.
He added that Thailand’s internal, as well as external, debts are still in good shape. “Our external debt has drastically come down from almost USD 80 bln. when I took office 3 years ago to the present level of less than USD 50 bln.. Despite paying off a large amount of our external debts- and paying back all of our debts to the IMF two years before due, our international reserves have actually risen to USD 43 billion, equivalent to a healthy 5 months’ worth of imports,” the PM said.
The PM reminded investors in the stock and financial markets that Standard & Poor’s Rating Services has raised Thailand’s long-term foreign currency sovereign credit from BBB to BBB+, and that this should indicate that Thailand is successfully retaining the trust and confidence of foreign investors.
“The government disbursement was only 89.8 percent of projected budget expenditures, meaning that we have not actually spent our budget yet from the last fiscal year”
Other important evidence, he noted, included an 18 percent increase in tax collection in the countryside, while, in the urban areas, the number rose by only 13 percent. This clearly shows that our current policies for stimulating domestic spending have not led to failure.
He went on, “With our increasing income, we will drive for sustainable economic growth. The government will heavily invest in infrastructure projects, productivity improvements, enhancements for our industrial competitiveness, and improvements in our communication and transport networks that will better link Thailand with its neighbors.”
PM Thaksin announced that the government would win its war on poverty by the year 2009, after having initiated a nationwide poverty registration program and using a people-centered approach.
Another point that PM Thaksin addressed is Thailand’s favorable investment climate. He noted, “This atmosphere is due to the government’s existing management competence, its clear and stable policies, its focus on good governance, and the fiscal and monetary discipline it displays, as well as the efficient supervisory bodies created to guide Thailand’s financial markets. These are all strengths that have attracted investors.”
