1. Monetary and Financial Policies
The Government intends to build a strong and stable national economic system, to maintain financial and monetary disciplines, to encourage domestic savings, to promote financilal liberalization within an appropriate period of time in consistent with other economic sectors, to internationalize the country’s capital market, and decentralize monetary and financial authorities to local administrative agencies. This government will implement the following measures :
1.1 control the country’s inflation rate at a proper level, in line with the growth rate and economic conditions;
1.2 encourage domestic savings, particularly within households, and long-term savings such as through the establishment of pension fund and provident fund;
1.3 maintain a reasonable foreign exchange rate to stabilize the country’s economic system and increase the country’s competitiveness;
1.4 develop Thailand as the monetary centre of the region through financial liberalization;
1.5 remove the taxation on people’s savings intended for home purchases, children’s education, and retirement;
1.6 widen and deepen the capital market consistent with international standards by encouraging busines in Bangkok and other provinces as well as overseas to be listed in the Stock Exchange of Thailand (SET) ; to mobilize capital and to link domestic capital markets with those abroad, particularly the neighbouring countries, and to encourage the issuance of new capital debentures for debts and capitals to diversify and create more options in capital mobilization;
1.7 promote financial decentralization to allow agencies to increase their revenue and efficiency;
1.8 improve the management of the national budgetary system;
1.9 encourage private sector participation in the country’s infrastructural development and public services to alleviate the budget burden on the government; and
1.10 initiate monetary and financial measures and policies to encourage Thai investments in the economic development of the neighbouring countries.
2. Agricultural Policy
The Government intends to develop the potential and increase the standard of living of the farmers. As for the advanced agricultural sector, the Government shall increase its international competitiveness by increasing efficiency and reducing production costs, by opening new agricultural markets, by developing the farm processing industry, and by raising the prices of farm commodities. As for the less developed agricultural sector, the Government shall give emphasis to increasing the income of the farmers by reducing production costs, developing water sources for agriculture, and by resolving the debt problem of the farmers by undertaking the following measures :
2.1 Raise the prices of agricultural products to a level acceptable to farmers by expanding new export markets, particularly exports of agricultural products to newly opened markets under the framework of international economic obligations, and support “futures market”.
2.2 Encourage farmers to cultivate marketable crops, particularly those in demand by the processing industry.
2.3 Assist farmers in purchasing fertilizers, pesticides, and other chemicals at acceptable prices in order to promote the competitiveness of agricultural products.
2.4 Provide a sufficient supply of water for agricultural purposes as well as for general usage and consumption by developing natural water resources and constructing water reservoirs. Cooperate with the neighbouring countries for water utilization from international sources and increase the efficiency of water management.
2.5 Promote the growth of the agricultural sector comparable to that of other economic sectors by encouraging farm mechanization through the reduction of import duties on equipment and machinery, and by promoting technical research with a view to improving the quality and productivity of agricultural products.
2.6 Strengthen the role of agricultural institutions in the production and marketing of farm goods.
2.7 Support and encourage the private sector to cooperate with the government in investment relating to the development and expansion of all agricultural sectors.
2.8 Develop and improve the mechanism of the agricultural cooperative system and farmers with an emphasis on the revolving fund for the members.
2.9 Solve the debt problems of the farmers by providing long-term credit at low interest rates as well as improve the efficiency of credit management.
2.10 Accelerate land reform for impoverished farmers in accordance with laws relating to agricultural land reform.
2.11 Accelerate the process of justly resolving the problem of illegal occupation of state-owned land in accordance with the stipulated laws, as well as to consider the community rights and managing the local resources.
2.12 Promote projects of the community organizations in acquiring additional income for agricultural families in the rural areas.
3. Industrial Policy
The government intends to maintain and strengthen Thailand’s industrial competitiveness in the world market by increasing the capability and efficiency of production along with environmental protection and decentralization of investment to the rural areas through the expansion of infrastructure networks; stress private sector participation in industrial development. The government will undertake the following measures :
3.1 Promote and encourage the relocation of industries to the regional and rural areas by establishing industrial estates and special zones. Offer incentives for investment to encourage local employment and distribute income to the rural areas.
3.2 Promote and encourage investment in industries of all sizes, especially medium and small industries as well as cottage industries in large urban communities.
3.3 Render full support for investment in potential industries which help generate income and employment such as agro-processing industries, high-technology industries, tourism and export industries.
3.4 Develop and upgrade the competitiveness of national major export industries to increase the country’s market share and sustain the development of labour skills, marketing, production, quality, design etc..
3.5 Accelerate the expansion of public facilities, utilities and infrastructures consistent with the increasing needs of industrial development.
3.6 Reform rules and regulations with a view to streamlining bureaucratic procedures regarding the granting of permits to help ease the investors’ industires.
3.7 Promote and develop supporting industries to supplement the potential key industries.
3.8 Control industrial pollution to sustain and nurture the environment and ecological balance at a standardized level by implementing strict laws relating to environmental protection.
4. INTERNATIONAL ECONOMIC POLICY
The government intends to sustain and increase Thailand’s economic prosperity both in the short and long term through the promotion of trade, investment, tourism, and technology transfer and development. To this end, international economic cooperation will be fostered and further expanded, with adherence to international agreements and consistent with economic transformations in the new global community. The government will :
4.1 Strengthen Thailand’s international competitiveness through the following measures :
4.1.1 Promote free trade to increase production and internal markets and create effective remedial measures to assist the sectors adversely affected by economic liberalization.
4.1.2 Restructure the tax system and remove hindrances to trade and investment. Accelerate the restructuring of the tariff system and reduce customs procedures, and production costs to enhance the country’s export capacity.
4.1.3 Promote the service sectors vital to trade and investment, particularly transportation of merchandise, shipping, Thai merchant shipping fleet, and insurance.
4.2 Conduct trade and investment policies with a view to reducingthe current account deficit through the promotion of high value-added exports, tourism and services.
4.3 Seek new markets and sources of funding to increase the economic benefits of the country.
4.4 Enhance Thailand’s role in the international economic arena to protect the country’s interests and raise the quality of life and welfare of the people through the following measures :
4.4.1 Prepare for the establishment of a coordinating unit responsible for international economic policy, which will coordinate with other agencies on international trade matters.
4.4.2 Strengthen cooperation among member countries of ASEAN and the Asia-Pacific Economic Cooperation (APEC) to enhance Thailand’s role in international economic negotiations.
4.4.3 Develop and establish Thailand as the regional hub of production, trade, finance, telecommunications and transportation in Southeast Asia.
4.4.4 Encourage foreign investment in Thailand and support the expansion of Thai overseas investment in both the industry and services sectors. Facilitate and protect Thai investors and workers abroad through diplomatic, legal, fiscal, and financial means. A number of agencies will also be established if necessary.
5. Transport and Telecommunication Policies
The government intends to further expand land-air-waterway transport networks throughout the country with emphasis on the development of transport infrastructure, the expansion of the use of modern equipment and high tecnology in telecommunications, the reduction of service fees and the support of private sector participation in transport and telecommunications development and management in a free market system. The government will undertake the following measures :
5.1 LAND TRANSPORTATION
5.1.1 Develop, improve and extend highway system and road transports linking Bangkok with the provinces as well as among the different provinces nation-wide by accelerating the expansion of inter-provincial highways from four to six lanes; while the congested routes linking the different regions will be expanded from two to four lanes within four years.
5.1.2 Introduce parallel main railway tracks and use appropriate high-speed trains.
5.1.3 Accelerate the establishment of transport-tation networks, both roads and railways, connecting the neighbouring countries, namely the northern part of Thailand with the southern part of the People’s Republic of China, with the Union of Myanmar, and with the Lao People’s Democratic Republic; the northeast of Thailand with the Lao People’s Democratic Republic, with the Socialist Republic of Vietnam, and with Cambodia; the southern part of Thailand with Malaysia.
5.2 AIR TRANSPORTATION
Accelerate the construction of the second Bangkok international airport (Nong – Ngu – Hao). Modernize and improve international and regional airports; increase efficiency of air transportation management to provide convenience, safety, and quick service for the public as well as construct more regional airports, as and when necessary.
5.2.2 Promote and support the establishment of more airlines and national airlines. Expedite the establishment of a wide-body aircraft maintainance centre and a centre for international air transport.
5.3 SEA AND WATERWAY TRANSPORTATION
5.3.1 Maximize utility of deep sea ports in the Eastern Seaboard; expedite the feasibility studies in the construction of deep sea ports in the South and other apropriate areas such as the west coast of Thailand. Cooperate with the neighbouring countries in joint investment and utilization of the deep sea ports.
5.3.2 Promote and organize the water transport system to reduce costs and alleviate traffic congestion as well as establish effective safety control measures.
5.4 TELECOMMUNICATIONS
5.4.1 Develop, improve, and extend telecom-munication services nation -wide. Provide modern and inexpensive technology facilities and equipments. Expedite the installation of telephone lines in every district, which may be extended to the sub-districts and villages.
5.4.2 Support the application of advanced telecommunication system for the benefit of national defense and economic interests.
6. ENERGY POLICY
The government intends to ensure a sufficient supply of energy to meet demand at a reasonable price; support private sector participation in energy management, by undertaking the following measures:
6.1 Promote an economical and efficient use of energy at industrial and household levels, by supporting the production of highly efficient energy-saving facilities; promote a campaign for energy conservation in accordance with the Energy Conservation Act. Raise public awareness of energy conservation.
6.2 Secure a sufficient supply of energy resources for consumption at a fair and stable price. Explore and develop domestic sources of energy resources and enhance the efficiency of government agencies in energy supervision and management.
6.3 Conduct feasibility studies on the use of alternative energy for future consumption and promote cooperation with the neighbouring countries to develop and acquire new energy sources.
6.4 Improve and develop oil pipeline networks to reduce transportation costs and introduce uniform retail pricing nationwide.
7. Tourism Policy
The government intends to promote and develop the tourism industry to increase national revenue, whilst at the same time, to maintain and preserve the valuable cultural and natural resources of tourist destinations, through the following measures :
7.1 Promote and support investment in tourism and related businesses, particularly the hotel industry; upgrade the quality of services to maintain its international competitiveness.
7.2 Develop tourist destinations to accommodate the increasing number of visitors as well as provide facilities and safety measures and other basic public utilities. Conserve and restore cultural heritage, historical and natural tourist locations; protect tourists from business mal-practices which may affect the country’s image.
7.3 Promote international cooperation in tourism to create Thailand as a regional centre for tourism.
7.4 Encourage Thai travellers to tour Thailand.
7.5 Increase the number and quality of personnel to meet the demand of the tourism industry.