ASEAN KEY DESTINATIONS
Thai cabinet wants more currency controls
Prime Minister Abhisit Vejjajiva said the Bank of Thailand and the Finance Ministry are scheduled to meet today to prepare new measures to ward off increased speculative foreign investment from the Fed's quantitative easing policy.
The premier said the existing 15 percent withholding tax on interest income and capital gains on foreign investment in government and state enterprise bonds has helped reduce foreign capital inflow by as much as 4 billion baht.
Finance Minister Korn Chatikavanij pledged the ministry would work closely with the central bank to monitor the US government's new economic stimulus package and its impact.
Tharadol Piempongsan, deputy secretary general to the prime minister, said ministers believe the government must issue more measures in case the US stimulus budget exceeds $1 trillion.
The US monetary easing policy is expected to generate a huge pool of liquidity in global markets that is increasingly being shifted to Asia in search of higher yields. Economic ministers agreed existing measures would remain effective if the new US stimulus package is worth less than $1 trillion..
According to a report by the Board of Investment (BoI) at the meeting, Thai foreign investment is much lower than other countries in the region, as government incentives are relatively weak. Suggested destinations include Cambodia, Laos, Burma, Vietnam, China, South Asia, the Middle East and Africa.
The World Investment Report 2010 showed Thai investment overseas ranked third in Asean at US$3.81 billion following Malaysia with $8 billion and Singapore with $5.97 billion.
Comment on this Article. Send them to firstname.lastname@example.org
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below