Thai auto exports to pick up in second half of 2009

Thailand’s exports of vehicles are expected to improve in the second half of 2009 on the expectation that the world economy, including that of Thailand, would recover, an auto expert said Saturday.
Spokesman Surapong Paisitpatnapong of the Federation of Thai Industries’ Automotive Industry Club said the sector in Thailand is optimistic that the world economy, including Thailand and its major trading partners including the United States, Europe, Australia, China, Japan, Indonesia and Malaysia, should improve during the second half of this year after governmental economic stimulus measures to boost their economies.
With high expectations that the recovery measures will help boost economies around the world, the number of purchase orders for cars assembled in Thailand should also increase, Surapong said.
The Automotive Industry Club has maintained vehicular production in 2009 at 1.08 million units, with exports taking 590,000 units and the rest for domestic sale. In the same timeframe, dealers are expected to import about 10,000 units.
Car production in Thailand during the first two months this year contracted 49 percent in line with an earlier projection, Surapong said.
Overall contraction for the first half of 2009 has been estimated at between 40-50 percent of the same period last year. (TNA)

PM Abhisit: Government to propose terms for borrowing Bt70 billion

Prime Minister Abhisit Vejjajiva said Sunday that his government is preparing to propose terms for borrowing some Bt70 billion as part of the government’s measures to fight against economic slump in the country.
Speaking during his weekly TV address, Abhisit, who survived a censure vote in Parliament on Saturday, said more investment is needed in order to boost Thailand’s economy and competitiveness in solving the country’s medium- and long-term economic problems.
He said his government will propose conditions on borrowing Bt70 billion to be spent on building basic infrastructure, including water resources and roads.
Global trade now demonstrates shrinkage of 20-30 percent and a need for money to be injected into the economic system, Abhisit said. The government plans to invest about Bt1.4 trillion in the next three years and planning for it is taking place now.
The planned investment will be spent on high-speed rail, road improvement, building water resources to assist farmers, education and public health, said Abhisit.
The prime minister said the investment plan will be presented to economic ministers for consideration this Wednesday.
In January Abhisit’s government announced a Bt116.7 billion stimulus package aimed at boosting Thailand’s sagging economy, hit by last year’s airport blockade and by the world financial crisis.
The plan comprises a mix of cash handouts for low earners, tax cuts, expanded free education and subsidies for transport and utilities.
Abhisit has said that he plans to meet his economic team to evaluate the effects of the global financial crisis on the domestic economic situation while the government would initiate a second round of economic stimulus package.
The first government economic stimulus package - including Bt2,000 grants for employees earning less than Bt15,000 monthly, monthly pension payments of Bt500 to persons over 60, and free 15-year education to children will be gradually implemented from late March, said Abhisit. (TNA)