Thailand

The government in Thailand is hailing a recent agreement with China as a significant step towards reducing its extensive rice stockpile. However, critics of the programme, which offers growers a minimum price for their crops, say that the deal with Beijing will put only a dent in Thailand’s so-called rice mountain.

The government in Thailand has strongly reiterated its commitment to an ambitious Bt2trn-plus ($60bn) transport system investment plan. The massive programme of spending would focus on rail, urban rapid transit and ports, and the government asserts that it would strongly enhance Thailand’s competitiveness in trade and investment, helping the country make up lost ground.

With one of the world’s strongest tourist industries, Thailand is now working to build on its international reputation, developing high-earning segments and broadening its market reach.

The Thai government has unveiled a new package of measures aimed at promoting economic activity and maintaining growth at up to 5%, though opinions are mixed whether the stimulus programme will be able to meet its targets, or even whether it is warranted in the current economic climate.

Auto manufacturers based in Thailand are continuing to boost production capacity, with ground being broken for a series of new plants and expansions to existing facilities. However, there are some concerns that both domestic and export sales may ease later in the year due to expected economic cooling at home and abroad.

For some months, concerns have been voiced about the possible emergence of a bubble in the Thai housing market. To help prevent this from occurring, both the central bank and commercial lenders are taking a more cautious stance towards property lending, having learned the lessons of the 1997 Asian financial crisis.