March 25, 2014, at 0930hrs, at Huay Jor Ra Kae Room, Sam Phran Royal Police Cadet Academy, Sam Phran District, Nakhon Pathom, Prime Minister and Defense Minister Yingluck Shinawatra chaired Cabinet’s meeting. Some of the resolutions are as follows:
Title: Thai economic situation for the 4th quarter of 2013 (B.E. 2556) and economic outlook 2014 (B.E. 2557)
The Cabinet acknowledged Office of the National Economic and Social Development Board (NESDB)’s report as follows:
Gist
1. Thai economic situation 2013
Thai economy in 2013, in general, though expanded by 2.9%, was much slowed down from 6.5% in 2012 due to the remarkably high household expenses and private investment in the latter half of 2012 as a result from First Car Tax Rebate Policy. Therefore, domestic demand in 2013 was much decelerated, coupling with the decrease of people’s confidence towards the end of the year which resulted in only 0.2% expansion of general household expenses, and 2.8% contraction of private investment. Government spending and investment, as well as export of goods and services also slowed down since global economy was still at the beginning of its recovery. Deceleration of spending and export resulted in the deceleration of production in all sectors throughout the year 2013. Agricultural, industrial, construction, and hotel and restaurant sectors were expanded by 1.4, 0.1, 1.2 and 12.1% respectively. Total number of foreign tourists was 26.7 million, which was an increase of 19.6%.
However, the economy was still stable. Unemployment and inflation rates were at 0.7% and 2.2%, and current account ran in deficit at 0.6% per GDP.
2. Thai economic outlook 2014
Hypothesis for the forecast include: 3.6% expansion of global economy (accelerated from 3.1% in 2013), Dubai crude oil price at an average of USD102.5-107.5 per barrel (adjusted from USD105-110 per barrel at the previous estimation), and Baht value at an average of 32.0-33.0 baht per USD (weakened from formerly estimated 31.5-32.5 baht per USD).
NESDB predicted that Thai economy will expand by 3.0-4.0%, an increase from 2.9% in 2013. Contributed factor is the expansion of export, which is expected to recover following the recovery of global economy. Tourism will continuously expand. It is expected the number of tourists will increase by 3.0%.
In the big picture, weakening domestic demand and consumption, as well as delay in public investment will result in the lower-than-expected economic expansion rate (earlier forecasted on November 18, 2013 at 4.0-5.0%).
Economic stability is expected to be satisfactory with the inflation rate of 1.9-2.9% since domestic demand has not been much expanded, and oil price has not been significantly increased. Unemployment rate will not be lower than 1%. Current account balance is expected to run deficit at 0.2% of GDP, a decrease from 0.6% in 2013.
Cabinet agreed with resolutions to the problem concerning migrant workers of Myanmar, Laotian and Cambodian nationalities who have been through nationality verification process and whose 4 year employment will be expired, as suggested by Ministry of Labor. Myanmar, Laotian and Cambodian migrant workers holding passport, temporary passport, or certification of identity, yet residing in the Kingdom exceeding the permitted period who have been through nationality verification process and whose 4 year employment will soon expired, may reside in the Kingdom as special case for another 180 days, or until there will be the subsequent Cabinet, in order to allow their employers to file a request for visa and working permit following regulations and places determined by the Department of Employment.
Following suggestion from Ministry of Foreign Affairs, the Cabinet approved establishment of Honorary Consulate of Republic of Chile in Phuket and appointment of Mrs. Nantana Wongsatayanont as Honorary Consul, whose authority covers Phuket, Krabi and Phang Nga.
The Cabinet approved transfer and appointment of National Security Council (NSC) Secretary General Lieutenant General Paradorn Patanatabutr (high-level executive) as adviser to Prime Minister (senior official and high-level executive), Secretariat of the Prime Minister, Office of Prime Minister.
Following suggestion from Secretariat of the Prime Minister, Cabinet approved to revoke Cabinet’s resolution made on September 6, 2011, which approved transfer and appointment of National Security Council (NSC) Secretary General Thawil Pliensri (high-level executive) as adviser to Prime Minister (senior official and high-level executive), Secretariat of the Prime Minister, Office of Prime Minister in order to allow Mr. Thawil to resume his position as NSC Secretary General since September 30, 2011 following the ruling of Supreme Administrative Court.
The Cabinet acknowledged command of Office of Prime Minister (24/2557) on appointment of body of persons as advisers to Center for the Administration of Peace and Order (CAPO).
Following announcement on the invocation of the Internal Security Act to cover the areas of Bangkok, Nonthaburi, Lat Lum Kaeo District in Pathum Thani and Bang Phli District in Samut Prakan during March 19, 2014 and April 30, 2014, and an establishment of Center for the Administration of Peace and Order (CAPO) under the authority of Internal Security Operations Command, with Labor Minister Chalerm Ubumrung as CAPO Director.
In order to ensure effective administration of peace and order, as well as public safety, and in accordance with Article 11 (6) of State Administration Act B.E. 2534, Prime Minister, thus, issued a command to appoint the following advisers to CAPO: 1. Deputy Prime Minister and Foreign Affairs Minister Suraphong Tovichakchaikul as Chief Adviser, 2. Deputy Prime Minister Plodprasop Suraswadi as Adviser and 3. Science and Technology Minister Phiraphan Phalusuk as Adviser.
To be effective from March 19, 2014 to April 30, 2014.
--Cabinet Meeting (Yingluck Shinawatra) March 25, 2014--