Central Bank outlines resolutions for second of five-year plan
The Bank of Thailand will in 2013, the second year of its five-year plan, focus on connectivity with foreign economies to boost growth, acceleration of competitiveness through a high-value-added economy, reduction of inequality through financial inclusion
“In 2012, our key word has been common vision,” BOT Governor Prasarn Trairatvorakul said yesterday. “Several agencies have their own strategy for the nation’s development. The central bank also has a five-year strategy through nine platforms. Thus, in 2013, we will concentrate on constructive engagement with other agencies for good living and sustainability.”
Better living involves capability improvement, which differs from economic stimulus, he said. Both could yield similar results – fast economic growth – in the short term, but capability improvement would help boost growth in the longer |term.
Sustainability means immunisation to withstand future uncertainties.
Both capability improvement and sustainability play key roles for Thailand’s future.
Constructive engagement will be implemented along four lines, starting with connectivity to increase chances to grow from outside. The central bank will emphasise mutual development, such as payment systems, with other countries next year.
“We will study gaps in financial services for both services and pricing,” he said.
Second is growing from inside to raise competitiveness with a high-value-added economy.
To create in-country opportunities for economic growth, the central bank will promote a high-value-added economy through support for development of small and medium-sized enterprises across the nation. This would help boost domestic demand. Increasing competitiveness and making adjustments could be done through state policy.
Third is lessening social inequality through financial inclusion.
Prasarn said financial inclusion would be executed through state cooperation and the development of credit information to allow SMEs’ access to finances. Financial knowledge will also be provided to SMEs.
To modernise the national payment system, imaged cheque clearing and archiving as well as e-payment will be championed.
In 2013, providers of microfinance will be increased and related laws will be amended.
The last is to oversee financial stability to cope with risks, which come together with future growth. The central bank will continue monitoring capital movements.
