Speech by H.E. Mr. Abhisit Vejjajiva, Prime Minister of the Kingdom of Thailand at a dinner talk with American trading companies 21 September 2009, 1930 hrs., New York
Excellencies, Distinguished Guests, Ladies and Gentlemen,
1. It is a pleasure and an honour for me to be here this evening to speak before top American traders. This is an opportunity for us to exchange views on business opportunities. Our many Thai products, or OTOP, produced locally in the communities, should also be promoted to go global.
2. I should like to start by underlining the importance of the Thai-US relationship, which has spanned over 176 years. In fact, American traders were among the first to discover Thailand’s market, and they have long made important contributions in a wide range of industries, many of which are represented here today. The reasons that made American companies trade with Thailand have not changed. We remain committed to free and fair trade and an investment regime that is open and transparent. These values therefore make us very “American-friendly”. As both the US and Thailand emerge from the global financial crisis, and I am certain that will be sooner rather than later, I am confident that the future of Thai-American relations will remain strong.
3. Over the last few months, I have had opportunities to exchange views with representatives of Thai and international public and private sectors. Many of us believe that the post-crisis world will not be the same as the one before we entered the crisis. I had many discussions, which were ultimately about the “New Global Landscape”. In our region, the Chinese and Indian economies have performed well compared to the rest of the world even in this time of crisis. Consumers in the Middle East now have greater purchasing power, while those in the world’s major industrial countries are spending less and saving more. This belief that Asia will rise is not without challenges.
4. The Southeast Asian region should not be overlooked, and ASEAN is also attracting high attention. ASEAN consists of small and medium-sized economies and markets. But, together, they become a force to be reckoned with. In the year 2015, the region is due to become an Economic Community (AEC), aiming to achieve the vision of becoming one sizeable single market of over 600 million people and also one single production base. Goods, investment and peoples will be able to move obstacle- free in the region and beyond to our neighbors. For instance, with the signing of the ASEAN-India FTA and ASEAN-China Investment Agreement, the ASEAN “Community of Connectivity” is becoming ever more real. It is no wonder then that there has been talk of Asia becoming the new growth pole for the world economy.
5. As ASEAN becomes an Economic Community and single production base, there will be a need to develop the demand and supply chain in order to increase competitiveness. The improvement of logistics management, to increase efficiency and reduce costs, especially for traders like you, will be vital for Thailand and ASEAN with closer trade relations within and beyond the region. Thailand is indeed set to become the gateway for air cargo systems, as well as for opportunities to engage in a niche market in perishable fruits, flowers and food as well as other small just-in-time items.
6. The “New Global Landscape” is therefore an opportunity not only for Thailand, but also for Southeast Asia as a whole; and not only for governments, but also for business and the region’s peoples. Here in Thailand, we recognize that we first need to prepare ourselves to strengthen the Thai economy. Thus, all of us will be able to meet the challenges and capture the opportunities presented to us. Our Government is doing this through our second economic stimulus package which aims to lay the foundations for the sustainable growth and development as well as long-term competitiveness of the Thai economy. Thanks to the successful implementation of our first stimulus package, which has helped farmers, workers who are low income earners, the elderly, children and their parents, and the private sector withstand the adverse effects of the crisis. The domestic economy held up well, so we can now focus on the long-term measures.
7. So just two weeks ago, I presided over the official opening ceremony of the second-phase economic stimulus package “Thailand : Investing from Strength to Strength 2012” organised by the Ministry of Finance. This package will be an historical investment for Thailand to strengthen its economy and regain global competitiveness. The 45 billion USD budget for the 3 year programme, about 16 per cent of GDP per year, comes from internal financial sources and will be invested in agriculture, transportation and education. It aims to create at least 1.5 million jobs within the next three years. This will not only stimulate economic growth, but will also result in the expansion of investment within the private sector and develop the physical and social infrastructure. By the end of this year, the economy will be growing at a normal rate. You do have every reason to be confident, with the opportunities to deepen and widen your business in Thailand.
8. We have some 400 projects planned for under this programme. For example, there will be massive investment in water management to boost our agricultural productivity, which will help Thailand retain her position as a major food exporter and help her to become a significant regional player in alternative fuel. We are also interested in making our Southern Border Provinces a hub for the production and export of Thai Halal food products. As for transportation, we plan to invest in a dual-track railway system, linking the North and Northeast to the Gulf of Thailand in more road and rail links connecting us to our neighboring countries thus, help facilitate the movement of goods, and as a result, to lower the logistics costs of doing business.
9. Our second economic stimulus package is also about upgrading our social infrastructure, especially our educational facilities and health, most importantly, add skills to our people. We need an educational system that produce more adaptable and creative graduates, equipped with the skills that match market demands and can help to drive the creative economy. As the world becomes more competitive, our future in the global economy will depend on our ability to move up the value chain.
Ladies and Gentlemen,
10. We believe that, for Thailand, the lowest point of the economic crisis is behind us and our economy is back on track and ready to move back into positive territory. There are also earlier than expected signs of recovery in many developed economies, such as the United States and in Europe. In Asia--China, Singapore and South Korea made a quick turnaround in the second quarter. As for Thailand, we will have improvements on the year-on-year figures and we are seeing steady quarter-by-quarter and month-on-month improvements in our economic figures. Actual unemployment is on the decline. We are aiming for the Thai economy to be back to its normal stage and soon able to prosper again.
11. As you know, the export sector is one of the most crucial business segments in Thailand. The export portion comparing to the current GDP is considered high, showing the figure of 70% worth 178 billion US Dollars in 2008. The main exports are in diversified industries--electricity industry, electronic components, automotive parts, jewelry, plastic granules, chemical supplies, agricultural and food products for instance. Given the opportunities, our exports will not decline.
12. We know economic growth is on the horizon. We have a good idea of what the “New Global Landscape” will look and be like; as well as of the things that we need to do in order to prepare for that scenario. So let us waste no time. Let us move full speed ahead together so that we can meet the challenges of our times.
Ladies and Gentlemen,
13. The opportunities for Thai-US economic cooperation are endless. With the Thai Government’s commitment, as well as yours, the business relations between Thailand and the US will indeed be deepened and widened. To be more competitive, we need to see strategically where our interests lie and how we could address ourselves to the trade and investment barriers that have hindered mutual growth.
14. I would like to assure you of the Government’s commitment to carrying out any necessary action to ensure that all foreign businesses are able to operate in Thailand in the simplest and most convenient manner. Thailand has always thrived to be an open economy. We have always believed that it is the private sector that drives the growth process. In a recent survey on ease of doing business, the World Bank ranked Thailand twelfth in the list. I also hope that you will utilize our One-Start-One-Stop service centre that will be operational at the end of the year, and in the future, that many of you will set up your regional operating headquarters (ROH) in Thailand if you had not already done so. In dealing with the private sector, I am committed to a transparent and consultative process, and am always open to your concerns regarding customs, licensing, labour, work permit, intellectual property or any other issues you may have.
15. On behalf of the Thai government, would like to take this opportunity to say thank you to you all, as traders and importers of Thai products. I strongly believe that you are truly Thailand’s best friends and that you will continuously supporting our products and services. I encourage you to expand and I appreciate your contribution to the economic growth of Thailand.
16. Thank you very much. Sawasdee krub.
For further information, please contact the Press Division, Department of Information, Ministry of Foreign Affairs, Tel.02-6435170, Fax.02-6435169, E-mail: div0704@mfa.go.th