Map Ta Phut case to definitely impact economy next year

BANGKOK, Dec 23 (TNA) – The suspension of investment projects in the Map Ta Phut Industrial Estate will definitely affect the Thai economy next year, but how extensively it will impact depends on the government’s competence in establishing clear-cut investment rules, according to the Bank of Thailand (BoT).

“The government must have clarity on investment regulations and timing for addressing the problem because the private sector wants a clear policy so that they can establish the investment plan,” said BoT governor Tarisa Watanagase

She said the Monetary Policy Committee would revise its estimate of impacts from the investment suspensions on the Thai economy at its January 13 meeting since the situation had changed.

Earlier, the MPC estimated the Map Ta Phut impasse would reduce Thailand’s economic growth by 0.5 per cent next year.

The Supreme Administrative Court allowed 11 of the 76 projects to continue operating, while 65 will remain shuttered until they comply with the environmental and health requirements of Section 67 of the 2007 Constitution.

Speaking of economic conditions in 2010, the BoT chief said that the budget disbursements under the 2nd phase economic stimulus programme should be monitored as to whether it meets the targeted amount.

Should the disbursements miss the mark, it would impact the short- and long-term economic stimulus packages and the government’s tax collection in the future.

She predicted loans extended by commercial banks will expand next year if the private sector would pursue the government’s plan to invest in various projects.

Mrs Tarisa allowed the inflation rate next year would be higher than that of this year due to the global economic recovery, but said it remained unnecessary to raise the policy interest rate if the inflation rate went up in the target range.

She said the Commerce Ministry’s revelation that the country’s exports in November grew 17 per cent lived up to the central bank’s expectation. Previously, the BoT forecast that exports would expand 10-15 per cent next year in tandem with global economic recovery. (TNA)