February 2013 : Cabinet approved ฿2 trillion-infrastructure loan Transportation strategic plan to cost ฿2 trillion Minister qualification endorsed Democrat MP perged State agencies to save energy Thailand removed from money laundering list Thai- Malaysia border policy resolved Criticism on PULO chief TV interview Narathiwas militant outpost ambushed Tax collect over-estimate 2013 GDP to rise 4.5-5.5% SMEs mostly effected by minimum wage Former Defense permanent secretary asset froze Ratree released from Khmer jail Diesel excise tax waived re-extended 2.75% interest rate reaffirmed Cabinet approved ฿2 trillion-infrastructure loan On 27th February, the Cabinet approved a plan to borrow Baht 2 trillion to construct a network of transportation links. These are: Four high-speed trains: Bangkok-Chiangmai, Bangkok-Nakorn Ratchasima, Bangkok-Hua Hin and Bangkok-Pattaya; Ten mass transit rail lines in Bangkok; Two new motorways between Bangkok-Nakorn Ratchasima and Bangkok-Kanjanaburi; A national waterway plan. Court endorsed Minister On 1st February, the Constitutional Court ruled by 6:3 that the Minister of the Prime Minister’sOffice,Varathep Ratanakorn, is qualified to hold that position even though he had been banned from holding political positions. The Court’s reason was that Varathep’s ban was a suspended sentence. A group of Senators sought the Constitutional Court’s ruling citing Articles 182(3), 182(5) and 174(5) of the Constitution. In 2009, the Supreme Court's Criminal Division for Holders of Political Positions sentenced him to a suspended jail term with a ban from holding a political position for 5 years. Varathep became Ministerin October 2012 before the 5 years ban expired. Democrat MP purged On 27th February, the Supreme Court’s Election Cases Division revoked electoral rights of Sri-Saket Democrat MP, Somkiat Trisoranapanya, for 5 years. The Court found him guilty of bribing voters. Public agencies to save energy In order to cope with the expected energy shortage in April, the Cabinet, on 19th February, resolved to obtain energy saving measures from state agencies, e.g. asking officials not to wear suits, turning-off air conditioners and lights, using car pools and where possible using stairs instead of elevators. The Cabinet wants state agencies to become role models for the public. Thailand no longer a money-laundering country The Anti-Money Laundering Organization disclosed that on 18th February 2013, its Financial Action Task Force had removed Thailand from the list of money laundering countries (AML/CFT). It was a result of the recent passage of two anti-money laundering bills. Thai-Malaysian border problems resolved During the 5th annual meeting in Malaysia, Thai and Malaysian Prime Ministers agreed to resolve the following issues: Immigration, Dual-nationality citizens, Cross-border crimes, Transfer of inmates, To review extradition law, To combat human trafficking, To cooperate on cross border trade and transport. PULO chief on TV On 25th February, Channel 3 TV was widely criticized for its interview of the PULO chief, Gasturi Magota. PULO or the Patani United Liberal Organization is behind the violence in the southernmost provinces. The show, on air at 22.45 hours, allowed Magota to speak for 7 minutes on national security issues. Narathiwas military ambushed On 13th February at 01.30 a military outpost in a rubber plantation in Narathiwas province was attacked by an armed group of 50-60 men. After an hour of gunfire, 30-40 of the attackers withdrew leaving behind their dead and injured. The soldiers were all safe since they were warned about and prepared for the ambush. More taxes collected than expected The Fiscal Policy Office revealed that public income in January 2013 was ฿161 billion which was ฿17.7 billion, or 12.3% higher than estimated and also 20.1% higher than the same period last year. The strong economy was a result of higher domestic consumption. Tax collection from personal income, vehicle excise, corporation, and VAT were respectively ฿4,399million, ฿3,506 million, ฿2,976 million and ฿2,965 million higher than expected. GDP to grow 5.5% in 2013 The National Economic and Social Development Board disclosed that GDP growth in Q4 of 2012 was 18.9% higher than same period previous year, being a result of a 6.5% growth in the economy. GDP in 2013 is estimated to grow at 4.5-5.5 % and inflation rate at 2.5-3.5%. Minimum wage increase affects mostly SMEs The National Economic and Social Development Board (NESDB) stated that the increase in daily minimum wage to ฿300, effective since 1st January 2013, added to total operation costs by 6.4%. The number of companies that closed down in Q4 of 2012 was 26.6% higher than the same period of 2011, the period of the great flood, and the highest in 9 years. SMEs of 1-199 employees were the most affected since their labor costs rose 8.95%, against 0.57% for big companies. It is estimated that 9.99 million people are employed in the SME sector. Debts of all households rose 21.6%, or equivalent to ฿2.91 trillion. The biggest item, 33.9%, is from vehicle leasing being the result of the first car policy. The NESDB proposed that the government should provide households with better access financing to reduce the risk of them having to resort to loan sharks. However, financial discipline and savings should also be promoted. Former Defense Permanent Secretary’s assets frozen On 26th January, the National Anti-Corruption Commission(NACC) resolved to temporary freeze ฿65 million belonging to a former Permanent Secretary of the Defense Ministry, General Sathien Permthongin. The NACC stated that while on the Board of the National Warehouse Organization between 2007-2008, Gen. Sathienhad falsely declared assets of ฿14,127,364.79. The case, in accordance to article 119 of the Anti-Corruption Law and article 91 of the Criminal Code, was forwarded to the Supreme Court's Criminal Division for Holders of Political Positions. If Gen. Sathien is found guilty, he would be barred from political positions for 5 years.The NACC also asked Gen. Sathien, his wife and minor children to submit lists of their assets within 30 days. Ratree released from Khmer jail On 1st February, Ratree Pipatanapaiboon was released from Cambodian prison, having received a pardon on the occasion of King Narodom Sihanouk’s cremation. Ratree and Weera Somkwamkit were captured by Khmer soldiers on 29th December 2010 and convicted of illegal entry and espionage. They were sentenced to 6 and 8 year-jail respectively. Ratree and 400 other Khmer inmates were freed and Weera had his sentence reduced by 6 months. Diesel tax reduction extended On 19th February, the Cabinet resolved to extend diesel excise tax reduction for another month, or until 31st March 2013. BOT affirmed interest at 2.75% The Bank of Thailand disclosed that the Fiscal Policy Board, by a majority, had reaffirmed interest rate at 2.75%. The votes were 6:1 with the minority reasoning that the rate should be lowered by 0.25% to reduce the risk of excessive funds flowing into the country.