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August 2011 : Thailand Got First Female Prime Minister

  • Thaksin's sister became first female Prime Minister
  • 300 baht minimum wage
  • Fuel prices reduced
  • Flood victims to get more aid
  • Phue Thai MPs surety for Red Shirts
  • EC disqualified Boonchong
  • Top government jobs for Red Shirt leaders
  • Abhisit re-elected Democrat leader
  • Court to rule on BMA fire truck case
  • Appeal Court overturned Shin Corp. tax case
  • Seized assets returned to Thaksin’s children
  • First community radio license granted
  • Thai economy upgrade
  • BOT warn about rising public debt
  • Employment figure rose in 2011

    Thaksin's sister became first female Prime Minister

    On 8th August, His Majesty the King endorsed former Prime minister Thaksin Shinawatra’s youngest sister Ms. Yingluck Shinawatra as the 28th Prime Minister of Thailand and on the next day, the Yingluck Cabinet members were endorsed. They were:
    1. Deputy Prime Minister and Interior Minister: Yongyoot Wichaidit
    2. Deputy Prime Minister: Pol Capt Chalerm Ubumrung
    3. Deputy Prime Minister: Pol Gen Kowit Wattana
    4. Deputy Prime Minister and Commerce Minister: Kittiratt Na-Ranong
    5. Deputy Prime Minister and Tourism and Sports Minister: Chumpol Silapa-archa
    6. Prime Minister's Office Minister: Kitsana Seehalak
    7. Prime Minister's Office Minister: Surawit Khonsomboon
    8. Defence Minister: Gen Yuthasak Sasiprapha
    9. Finance Minister: Thirachai Phuvanatnaranubala
    10. Deputy Finance Minister: Wiroon Tejapaibul
    11. Foreign Affairs Minister: Surapong Tovichakchaikul
    12. Social Development and Human Security Minister: Santi Promphat
    13. Agriculture and Cooperatives Minister: Theera Wongsamut
    14. Deputy Agriculture and Cooperatives Minister: Pornsak Jaroenprasert
    15. Transport Minister: ACM Sukumpol Suwannathat
    16. Deputy Transport Minister: Pol Lt Gen Chatt Kuldiloke
    17. Deputy Transport Minister: Kittisakdi Hathasonkorh
    18. Natural Resources and Environment Minister: Preecha Rengsomboonsuk
    19. Information and Communication Technology Minister: Capt Anudith Nakornthap
    20. Energy Minister: Pichai Naripthaphan
    21. Deputy Commerce Minister: Poom Sarapol
    22. Deputy Commerce Minister: Siriwat Kajornprasart
    23. Deputy Interior Minister: Chuchard Hansaward
    24. Deputy Interior Minister: Thanis Thienthong
    25. Justice Minister: Pol Gen Pracha Promnog
    26. Labor Minister: Phadermchai Sasomsup
    27. Culture Minister: Sukumol Khunplome
    28. Science and Technology Minister: Plodprasop Suraswadi
    29. Education Minister: Woravat Auapinyakul
    30. Deputy Education Minister: Bunruen Srithares
    31. Deputy Education Minister: Surapong Eungampornwilai
    32. Public Health Minister: Wittaya Buranasiri
    33. Deputy Public Health Minister: Torphong Chaiyasarn
    34. Industry Minister: Wannarat Channukul
    35. Deputy Finance Minister: Boonsong Teriyapirom

    Following the Election Commission’s (EC) official endorsement of 496 winning candidates which is more than 95% of the total 500 required by the Constitution, the House of Representatives convened on 2nd August and Phue Thai Khon Kaen MP Somsak Kiatsuranont won the vote to become House Speaker and President of Parliament. Chareon Jankomol and Visut Chai-naroon, also from Phue Thai became first and second deputy respectively.

    The EC decided 4 to 1 to certify Jatuporn Promphan, Phue Thai party-list candidate as a MP. He was remand in custody on charges of lese-majesty for speeches made on 10th April 2011. That event was to commemorate the first anniversary of the military crackdown on Red Shirts. During his custody, Phue Thai Party nominated him as its 8th party-list candidate, but he was refused permission to go and cast his vote. The EC therefore had to confirm his parliamentary membership status. Once that was done he was released under the law relating to parliamentary immunity.

    Of all 500 candidates endorsed by the EC, two were given yellow cards and re-elections called in those two constituencies.

    On 5th August, the House of Representatives convened and voted 296 to 3 with 197 abstaining to support Yingluck Shinawatra, to form a government. She became the first Thai female Prime Minister and the 28th in Thai democratic history.

    According to the law, party list MPs with ministerial portfolios can resign their parliamentary membership and the EC will move the next party-list member into that position. However, resignation is not obligatory, but those who do not resign their parliamentary membership while holding Cabinet positions will not be able to vote in Parliament. On 25th August, a Phue Thai MP Pol Lt Gen Chatt Kuldiloke resigned his parliamentary membership to become the Deputy Transport Minister and his membership was taken up by the next party list candidate.

    On 23rd August, Yingluck delivered a policy statement to the National Assembly focusing on 3 major areas:
    1. To instill a strong and balanced economic structure in the country with emphasis on domestic growth.
    2. To reconcile Thai society, uphold the rule of law to international standard and treat all Thais equally.
    3. To lead Thailand towards the ASEAN Community in 2015, by strengthening the country’s economic, social, cultural, political, and security aspects.

    Implementation plan is divided into urgent and continuing phases, as follows:
    The urgent phase comprises of 3 aspects: economic, social and foreign affairs.
    Economic:
    1. To reduce the price of petrol by stopping payment into the petroleum fund and providing petroleum credit cards for public transport vehicles.
    2. To launch a debt service program for a period of three years to small agricultural households whose debts are less than 500,000 baht. Debt restructure scheme will be applied to debts of more than 500,000 baht. Daily mnimum wage is to increase to 300 baht and starting monthly salary for bachelor degree graduates will be increased to 15,000 baht. Increase monthly allowance for senior citizens to 600 baht for those 60-69 years, 700 baht for 70-79 years, 800 baht for 80-89 years and 1,000 baht for 90 and over. There will also be a tax reduction scheme for the first-time homeowner and car buyer.
    3. To reduce corporate tax to 23% in 2012 and 20% in 2013.
    4. To increase village funds to 1 million baht for each village and 300,000-500,000 baht to SME funds.
    5. To launch a rice pledging program starting at 15,000 baht per ton.
    6. To boost tourism industry in 2012.
    7. To strengthen the One Tambon One Product: OTOP policy.
    8. To manage water resources in a comprehensive and integrated manner.

    Social and foreign affairs policies:
    1. To apply reconciliation and remedial measures to people affected by political violence
    2. To designate drug problems as a national agenda.
    3. To launch a law reform program to prevent and suppress corruption.
    4. To return peace and safety to the southern provinces by eliminating poverty, drugs, gang control and to compensate victims.
    5. To improve cooperation with neighboring and other countries.
    6. To improve efficiency in the public health 30 baht program.
    7. To provide tablet computers to first grade students in pilot project schools.
    8. To draft a new constitution, organize a public referendum and promulgate the new constitution.


    Continuing phase that will be implemented in 4 years
    1. To uphold the institution of the monarchy, to develop and strengthen the army.
    2. To increase national income, restructure industrial and agriculture sectors and promote public accessibility to capital funds. To reform the tax structure comprehensively and promote of financial discipline. To develop rail transport, build express lines between Bangkok and Chiangmai, Nakorn Ratchsrima and Hua Hin. To complete construction of the 10 mass transit lines in Bangkok and pheripery areas within 4 years. To expand Suvarnabhumi airport to accommodate 65 million passengers annually.
    3. To increase educational opportunities to all sectors, increase efficiency of the social security program and improve the quality of life all the way from the unborn through old age.
    4. To preserve, reforest, and balance the use of natural resources.
    5. To promote research and scientific education.
    6. To promote cooperation with neighboring countries while safeguarding national interests in the international community.
    7. To promote good governance, public administration and ethics, reform law and justice.

    Following the Prime Minister’s policy statement, Opposition Party leader, Abhisit Vejjajiva, pointed out that poor control in the rice pledging program easily leads to corruption. Referring to Phue Thai campaign promise, he asked whether the Government proposed a 300 baht daily allowance or 300 baht minimum wage. Deputy Prime Minister and Commerce Minister Kittirat na Ranong later confirmed that all workers should get a daily minimum wage of 300 baht before 2012 fiscal year.

    Expanding the Prime Minister’s Policy statement, Cabinet members gave further details as follow:

    Finance Minister Tirachai Phuvanatnalanubala explained 5 measures to boost the economy:
    1. Alleviating measures to help flood victims.
    2. Financial measures to restructure the tax system.
    3. Monetary measures to stabilize the financial system.
    4. Aids to promote industry and entrepreneurs.
    5. Promotion of public-private cooperation.

    Each state agency should study the Policy statement carefully and feel free to submit recommendations to the Cabinet. The Finance Ministry and the Bank of Thailand will cooperate closely so that ecomomic policy will move in the same direction.

    Deputy Finance Minister Boonsong Teriyapirom gave details about:
    • The first car policy: people who buy their first car will be exempted from tax up to a maximum of 100,000 baht. The Ministry is considering whether this exemption should apply to excise tax at the manufacturer or to give monthly cash refund to the buyers. Vehicles, whether passenger cars or commercial pick-up trucks, must be brand new and the sale price must not exceed 1 million baht. Transfer of ownership will be restricted during the first 5 years.
    • The first home policy is under detailed consideration by the Government Housing Bank and private banks might also join. This, however, is unconnected to the two-year 0% interest housing loan which is already closed.
    • The energy and farmer credit card policies: management of these will be given to State and private banks with the latter given benefits in the form of tax incentive.

    Transport Minister Air Chief Marshall Sukumpol Suwannathat said he will solve airport-rail link problems urgently and accelerate construction of 10 mass transport rail systems announced during the campaign. He will also reconsider the free bus and rail ride policy initiated by the former government, since it is costly and not very popular.

    Agriculture and Cooperation Minister, Teera Wongsamut, said his most urgent mission is to increase financial aid, currently at 606 baht per rai, to the flooded farmers.

    Education Minister, Woravat Auapinyakul, said he that has assigned the Secretary General of the Higher Education Commission, Dr. Sumet Yamnoon, to make detailed implementation plan for the student tablet PC policy. Universities will be assigned to be co-responsible in the project. He anticipates that the policy could be launched after the 2012 fiscal budget but on condition that schools are qualified and competent in English. He will not decide which school will get the tablet PCs but confirmed that teachers will also receive them so they can check on and communicate with the students. Further, the 15-years free schooling, started by the Democrat government, will continue with current rights protected under the Constitution. A survey amongst students and parents will be used to determine what other additional privileges are preferred.

    The Dean of the Panyapiwat Institute of Management, Dr. Sompop Manarungsan, stated that the government’s urgent policy does not respond to the global economic crisis threathening the United States and the European Union. He questioned how Thailand can survive the crisis as capital funds are pouring into the country strengthing the currency and hurting exports. Thai economy does not need the stimulus of populist campaign promises, and certainly not all at the same time. Policies should be prioritized according to the global crisis and attending problems affecting the local economy. Thailand should also prepare for the free trade zone of the ASEAN Economic Community (AEC) in 2015. From that time, there will be no barrier to the free flow of goods and services. Countries with limited competitiveness will be at a disadvantage. Influx of cheaper goods from neighboring countries will be preferred over more costly products.

    He does not disagree with the 300 baht minimum wage policy but thinks that it should not be immediately implemented . The government should first listen to opinions from stakeholders and have the relevant supporting structures in place.

    300 baht minimum wage

    Following on from Pheu Thai campaign promise of 300 baht daily minimum wage and 15,000 baht monthly salary for graduates. The Cabinet resolved to raise salaries of civil servants holding bachelor and master degrees, to a minimum of 15,000 baht and 15,500 baht respectively, effective on 1 January 2012. Current new graduate salary is 9,140 baht plus extra allowance of 1,500, total 10,640 baht.

    The President of the Thai Federal of Industries (TFI), Payungsak Chartsuthipol, said that his agency was preparing information to discuss with the government. He would like to see stepped increases over 3-4 years to be considered by tripartite committees on provincial and national levels. Inflation should also be considered as well state aid to the enterpreneurs who have to close down and lay-off workers.

    A survey conducted by the private sector disclosed that enterpreneurs are looking at alternative cost management techinques, such as, reduce material costs, bring in more machinery, improve logistics, reduce workforce, improve labor efficiency, reduce production and finally move production to neighboring countries.

    Bangchak Petroleum Plc. announced that starting from 1st January 2012, their service personel will get a minimum daily wage of 300 baht instead of the current 250 baht.

    The Ministry of Finance stated that the minimum wage increase to 300 baht will be a one time production increase and the resulting decrease in profit can be absorbed by the entrepreneurs. The Vice President of the TFI, Thanit Sorat, responded that the Federation has conducted a survey among members and it revealed that the 300 baht minimum wage will increase production cost by 12-16% which will be passed on to consumers. An increase of prices will reduce Thailand’s competitiveness in the global economy.

    Small and medium enterpreneurs are 70% of the industry, they will be unable to bear the increase since their profit is marginal.

    Petroleum prices reduced

    Following Phue Thai campaign promise on petroleum, the Board of Energy Policy and Planning, chaired by Prime Minister Yingluck Shinawatra, resolved to revoke payment into the petroleum fund for 1 year effective on 27th August. This has the effect of reducing the prices of diesel, benzene 95 and 91 by 3, 8.20 and 7.17 baht per litre respectively. New retail prices are 26.99, 39.52 and 34.77 baht per liter

    This revocation created a monthly loss to the fund of 6,160 million baht, or a net loss of 3,000 million baht per month taking into account other receipts. The fund liquidity, currently at 15,000 million, is expected to last until January 2012 when the government will have to find other resources to subsidize the NGV and LPG prices for domestic consumption and transport. NGV and LPG prices for industrial use have already been freed to follow the market during the Democrat administration.

    Since new retail prices of benzene 95 and 91 prices were slightly lower than those for gasohol 95 and 91, demand for gasohol dropped by 25% within 3 days of the new prices being effective. So on 30th August, the government had to convert the gasohol payment of 1.60 baht into a subsidy of 1.50 baht per liter. This is to help cane sugar and tapioca growers as they are major souces of ethanol production.

    It is uncertain whether the new petroleum prices will apply after a trial period.

    Flood victims to get more aid

    Following extensive flooding in north and northeastern regions where many agricultural households were affected, the Cabinet resolved on 30th August to approve a budget of 8,174,545 million baht for flood relief. The budget is divided into:
    1. Paddy rice fields will get 2,222 baht per rai instead of 606. Dry crops 3,150 Baht per rai, horticulture and others 5,098 baht, and if completely destroyed, the aid will be equivalent to 55% of production costs.
    2. Fish farming will get 4,225 baht per rai at a maximum of 5 rai per farm. Other aquatic animal farms 10,920 baht per rai at a maximum 5 rai.
    3. Animal livestock aid will follow current standards.

    Agricultural farm in flooded areas can apply for financial aid at their provincial offices within a designated period.

    Phue Thai MPs surety for Red Shirts

    Following the May 2010 rioting, 132 Red Shirts were arrested and imprisoned in Udon Thani, Bangkok and Ubon Ratcha Thani. On 16th August, 2011, 22 in the Udorn Thani were bailed by Phue Thai MPs surety bond plus 1 million baht each on conditions that they do not incite violence and do not leave the country. The bail was organized by a Red Shirt leader, Kwanchai Sarakum or Pripana, he convinced Phue Thai MPs to use their positions as surety to bail Red Shirts offenders. The 22 were charged with burning down the Udorn Thani provincial office in May 2010.

    On 19th August, Nattawut Saikua and other 20 other Phue Thai MPs tried to do the same for 29 Red Shirts in Bangkok. Only 5 were released, at a 300,000 baht each, as their charges were only possession of bomb material. The rest are either at the appeal stage requiring the approval of the Appeal Court or charged with serious offences of burning the Central World shopping complex. The Court refused bail as they might flee these serious charges.

    On 24th August, the Ubon Ratcha Thani Provincial Court sentenced 4 Red Shirt offenders to life terms reduced by one third to 33 years for cooperating with the prosecution. Four were sentenced to 3 years reduced to 2, three to 1 year reduced to 8 months, and 9 acquitted. Moreover, Pichet Tabudda who was acquitted of terrorism was sentenced to a one-year in prison for incitement by broadcasting calls to Red Shirts to gather at the provincial office.

    The Ubon Ratcha Thani Provincial office was completely burnt down at a cost of 95 million baht.

    For those who died during the April-May 2010 violence, Phue Thai party list MP Jatuporn Prompan asked the State to compensate their families at 10 million baht each. Minister of Justice Pol. Gen. Pracha Promnog said that the government should set up a committee to consider the evidence and recommendations from the Rights and Liberties Protection Department. Financial compensation should be paid as appropriate.

    EC disqualified Boonjong

    On 22nd August, the Election Commission decided by 3 to 2 to charge Bhum Jai Thai constituency MP, Boonjong Wongtrirat, with electoral offences of hosting a party and giving gifts to 300 voters at a resort in Rayong province prior to the 12 December 2010 by election. This decision will be referred to the Election Section of the Supreme Court, if the Court accepts the case, Boonjong will be temporarily suspended from his parliamentary membership until the Court gives its decison. If he is found guilty, he may be relieved of his membership and banned from political activities for 5 years. If acquitted, he will resume office.

    Top government jobs for Red Shirt leaders

    On 25th and 30th August, the Cabinet appointed almost 30 Red Shirt leaders to important political positions. Some of these are:
    1. Anusorn Iamsa-ad to become the deputy government spokesperson;
    2. Chinnawat Haboonpad, advisor to Transport Minister ACM Sukumpol Suwanatat;
    3. Rak Chiang Mai 51 group leader, Phetchawat Wattanapongsirikul, advisor to Social Development and Human Security Minister Santi Prompat;
    4. UDD Red guard chief Aree Krainara, to secretary to Interior Minister Yongyuth Wichaidit;
    5. Yoswaris Chuklom - also known as Jeng Dokjik, assistant to Deputy Interior Minister Thanit Thienthong's secretary;
    6. Gen Chongsak Phanitchakul, adviser to Defence Minister Gen Yutthasak Sasiprapa;
    7. Phichit UDD leader Nawin Bunseth, secretary to Foreign Minister Surapong Tovichakchaikul; and
    8. Pattaya UDD leader Sa-nga Thanasanguanwong, secretary to Labour Minister Padermchai Sasomsap

    Government spokesperson Thitima Chaisaeng said that these Red shirts contributed to Pheu Thai Party, the appointments will strengthen the government in that the appointees can act as links to the grassroot and help the government to respond to people's needs better.

    Abhisit re-elected to Democrat leader

    On 6th August, the general assembly of the Democrat Party re-elected Abhisit Vejjajiva to become the party leader with 96.038% votes. Abhisit will preside over the oldest political party in Thailand with 3 deputy leaders: Apirak Kosayothin, Juti Krairirk and Chamni Sakdiset. Chalermchai Sri-on was elected as the Secretary General.

    Supreme Court accepted BMA fire truck case

    On 24th August, the Supreme Court's Criminal Division for Holders of Political Positions accepted the National Anti-Corruption Commission complaint against former Interior Minister Wattana Muangsook, former BMA Public Diaster Prevention and Relief Department Pol. Maj. Athirak Tanchookiat, the Steyr-Daimler-Puch Spazialfahrzeug AG and former BMA governor Apirak Kosayothin. Complaints against them were that they failed to prevent damages to BMA in buying of 6,687 million baht fire trucks and ships. The first hearing will be on 2nd November.

    Appealed Court overturned Shin Corp tax case

    On 24th August, the Appeal Court overturned the Criminal Court’s decision in the Shin Corp tax case. Khunying Pojaman Damapong or na Pompetch and her personal secretary, Mrs. Kanjanapa Honghern, were sentenced by the lower court to 3 years and 2 years imprisonment respectively, for evading taxes and falsifying documents in selling 738 million baht worth of shares in the Shinawatra Computer and Communication Public Company to her stepbrother Bunnapot Damapong. The Appeal Court also reduced the sentence against Bunnapot from 3 years to 2 year-imprisonment and a fine of 100,000 baht.

    The Attorney General charged them for evading liability to pay tax of 546 million baht.

    Seized asset returned to Thaksin's children

    On 8th August, the Revenue Department returned seized assets belonging to Thaksin’s children, Panthongtae and Pinthongtha Shinawatra, comprising of 200 million cash, stocks and other assets totaled more than 10,000 million baht. This follows the Central Tax Court ruling that both were not real owners of the Shin Corp stocks, and therefore, were not liable to pay tax on it. Previously the Supreme Court's Criminal Division for Holders of Political Positions made a finding that the real owners were Thaksin and Khunying Pojaman.

    First community radio license granted

    On 23rd August, the National Broadcasting and Telecommunications Commission granted a temporary license of 1-year to the Plang Yoa radio station in Pad Riew District, Chachoengsao Province. It became the first community radio license in Thai history following a Constitutional provision granting community rights and accessibility to air waves. It is anticipated that the rest of 5,300 community radio stations will be granted similar licenses.

    Community radio stations have to comply with certain restrictions, such as amount of commercials, antenna height and airwave frequencies. Nevertheless, its minimal capital requirement and marginal technology stimulated communities to set up their own stations. Under section 48 of the 2007 Constitution, politicians are banned from owning or letting others on their behalf own radio and telecommunication businesses including community radio stations.

    BOT warn about rising public debt

    The Bank of Thailand (BOT) disclosed that the trend for Thai public debt is moving from currently 44% of GDP to 60% in 5 years. As a result, from the end of the 2013 fiscal budget, public debt will breech fiscal disciplinary limits and might reach a critical point in 2016 if public debt rose to 70% of GDP.

    BOT commented that the Yingluck administration economic revitalization policy, such as the rice pledging program, revocation of payment into the petroleum fund, civil servants salary increase, pension and disablity allowance increase, reduction of corporate tax, the first home and first car buyers tax break will result in enormous financial burden in the future. Moreover, speculations are made about bad debts in 4 major projects: the 174,000 million baht farmer credit card, the 210,000 million farmer outstanding debt, the 10,000 million refinanced personal debt and the 48,000 million 0% interest home mortgage. These four programs totalled 442,000 million baht which is equivalent to 20% of the national budget.

    Concerning the national budget, expenditure grew at 8.8% of GDP in 2007-2011 compared to only 4.9% in 1997-2006. At the same time, income rose at 4.2% of GDP in 2007-2011 compared to 4.7% during 1997-2006.

    BOT recommends prioritizing state expenditures with emphasis on those that increase the country’s competitiveness. Each sector should have specific measures to boost the economy within strict financial discipline. Policies should be implemented gradually to curb inflation and allow business sector and civil society to adapt to changes. National income should be increased while unnessessary expenditure must be reduced to prevent greater deficit and high inflation.

    The Public Debt Management Organization (PDMO) disclosed that as of 30th June 2011, public debt totaled to 4.26 trillion baht equivalent to 40.69% of GDP. Three trillion baht is government direct debt, 1.07 trillion non-bank-State enterprises, 1.58 billion government guaranteed State enterprises and 3.05 billion, Financial Institute Development Fund (FIDF).

    From the previous month, net public debt decreased by 1.58 billion, direct government debt decreased by 1.62 billion and FIDF 56 million.

    Thai economy upgrade

    On 17th August, the World Bank upgraded Thailand’s economy from a "moderate low income" to a "moderate high income" due to the fact that the country’s national per capita income reaches US$4,210 or approximately 125,756 baht. Country in this category should have per capita income in the range of US$ 3,076-12,275 per anuum.

    Employment improving in 2011

    On 29th August, the National Economic and Social Development Board announced that employment figure in the second quater of 2011 increased 1.5% from the same period last year. Top among those was employment in the agricultural sector which rose 7.28%. National unemployment is at 0.56%, a reduction of 1.3% representing 216,000 persons unemployed. Wages and salaries in the private sector, not including fringe benefits, rose at 4.5% but inflation also rose at 4.1% making a total gain in real income of only 0.4% which is significantly lower compared to 6% last year.


    From : http://www.fpps.or.th


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