Government urged to support domestic investment and knowledge-based economy

BANGKOK, 27 January 2011 (NNT) – During a seminar on ‘Economic Forecast and Investment Trend in the Year of the Rabbit,’ Bangkok Bank Executive Chairman Kosit Panpiemrat urged the Thai government to lend further support to Thais investing in the country, and to transform the country into a knowledge-based economy.

For the nation to achieve a better, positive economic outlook in 2011, the Chairman has suggested that the government give all-out support to domestic investors enabling them to invest on par with foreign investors, and do whatever is called for to turn the country into a knowledge-based one.

According to him, foreign investments in Thailand will likely decline thanks to numerous factors not conducive to foreign funds; therefore, domestic investment should be promoted to make up for the decline. As export is predicted to grow at a slower pace this year compared to what it did last year, other factors favorable to growth in the industry must be encouraged.

Moreover, in this era of information technology, businessmen and scholars have been brought up with the realization that knowledge is the most significant power, vital in driving the nation forward. Thailand, like many other countries should then focus on turning its economy into one that is based on knowledge, which will go a long way in helping the nation cope with the problem of labor shortage, the chairman added.

Mr Kosit then stressed that in boosting domestic investment, Net National Savings must be improved, adding the total savings of the country made up only 15% of the GDP growth. The Net National Savings should largely depend on government reserve; however, the government only contributed just 4.5 percent to the GDP, given the money must be earmarked for a number of government’s measures including the nine populist policies in particular.