Your Excellencies, Deputy Prime Minister of Bahrain, Minister of Commerce and Industry, Minister of Housing,
Your Excellency, Chairman of the Bahrain Chamber of Commerce,
Excellencies, Distinguished Guests,
Ladies and Gentlemen,
It is an honour to be here in Bahrain, a country with whom Thailand shares a strong friendship and a growing economic partnership. This is why I have chosen Bahrain for my first ever official visit to the Middle East. May I express my appreciation to the Government and people of Bahrain for the warm welcome extended to me and my delegation, and for all the arrangements.
Thailand and Bahrain share a strong friendship developed from 35 years of diplomatic relations. During time of challenges, our two countries have been there for one other. Like last year, when Thailand faced the floods, we received generous assistance from Bahrain. This is well appreciated by the Thai people. On this issue, let me just say that 11.4 billion US dollars are being invested in measures to prevent a repeat of last year’s floods. We are well prepared for the upcoming rainy season, a belief shared by foreign investors.
Likewise, whenever Bahrain faces challenges, Thailand is with you as a true friend. Thailand has full confidence in Bahrain and continues to support the Government’s initiatives for national reform and reconciliation. In our view, political violence is not the way forward; rather it is peaceful dialogue. We also see Bahrain as a safe and dynamic place to do business and a welcomed partner to invest in Thailand. This is why I am here with a strong business delegation, to enhance our economic and business partnership.
Ladies and Gentlemen,
We are confident that the Thai economy is attractive for your trade and investment because of three things: our strong economic fundamentals, our comparative advantages, and our pro-growth and business-friendly policies.
First, despite the devastation caused by the floods, our economic fundamentals remain strong. Our foreign exchange reserves are at 180 billion US dollars. Public debt is 40 percent of GDP. Our exports and tourism continue to grow. We predict economic growth of 5.5 to 6.5 percent for this year.
Second, in terms of our advantages, we have a highly skilled and hard-working labour force and dynamic entrepreneurs. Our geographic location is at the heart of the Mekong region and the emerging ASEAN Community of 600 million consumers. Thailand will spend some 74 billion US dollars in national infrastructure development over the next five years. ASEAN is enhancing its connectivity by developing economic corridors through Thailand. We are working with our neighbours to increase their potential, such as developing the Dawei deep seaport in Myanmar to be linked to Bangkok and Laem Chabang seaport. You can see that Thailand is not just a growing market but also your gateway to the regional market.
Third, our pro-growth, business-friendly policies speak for themselves. We are promoting greater domestic consumption and reducing income gaps. Our corporate income tax rate is reduced this year to 23 percent from 30 percent and will reduce further to 20 percent next year. We are undertaking measures to facilitate further foreign investment, including setting up of regional corporate headquarters in Thailand.
Ladies and Gentlemen,
In view of these business opportunities, our current trade volume of some 300 million US dollars is too small, so I hope we can expand trade significantly in the next few years. With His Royal Highness the Prime Minister having graciously granted an audience to the Thai business delegation, I am confident that we will expand and deepen our economic and business partnership. In this regard, there are some priority areas that I wish to highlight.
First, our two countries have complementary advantages in the food industry including the Halal food industry. I hope that the two sides will explore cooperation projects and business ventures in this area, from Halal food products to hydroponic farming. In this connection, I am pleased to announce that we have just signed an MOU on food security, trade and investment in commodities and agriculture, in particular Halal food. Indeed, Bahrain’s support for the Halal food industry in the Southern Border Provinces of Thailand will help the latter’s economic development. I also hope that you will welcome Thai food products, reflecting the rich diversity of Thai cuisine and food industry that can be a “Kitchen to the World”. I hope that some Thai food will be shown here and that all of you can have a taste of it.
Second, infrastructure projects including those to enhance connectivity, from construction to ICT, have great potential. Thai companies are ready to participate in your infrastructure projects, from airport development to mobile phone and internet networks. We would welcome Bahrain investment in our many infrastructure projects as well.
Third is people-to-people connectivity. Tourism is an area of strength which could be made stronger. Thailand is fast becoming a regional medical hub as well as a centre for international conferences and meetings, as seen in the World Economic Forum on East Asia in Bangkok later this month. Our tourism industries can explore new areas of investment and cooperation.
I am sure there are many other areas where the private sectors of the two countries can work together, from energy to product design to capital investment. There are so many opportunities. With the strong bilateral relations as a framework, and the shared interests and mutual respect between the two countries, I am confident that the Thailand-Bahrain business partnership, supported by the private sectors, will continue to grow for our mutual benefit.
Thank you very much for your attention.
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