Cabinet OKs Bt6.5-bn job creation scheme

The programme consists of nearly 5,000 projects that would create enough jobs to affect about 2 million households. The projects, which would comprise 6,740 "activities", are largely aimed at the agricultural sector.

Meanwhile, Thailand is seeking bilateral trade relations with South Korea, as trade ties between the two countries currently exist only within the Asean framework.

Under the job-creation scheme, the Cabinet yesterday approved 4,966 projects. Besides directly creating employment, the projects aim to reduce various agricultural production costs.

"The aim is to help farmers and low-income earners and to stimulate the grass-roots economy, which currently needs the most help from the government," said Interior Minister General Anupong Paochinda, whose ministry is spearheading the measures.

The Bt6.529-billion cost of the projects will be allocated from the fiscal 2015 central budget, which was set at Bt80 billion at the beginning of the fiscal year. Budget Bureau director Somsak Chotrattanasiri did not reveal how much of the central budget has been disbursed or how much is left, as that is confidential information between the bureau and the prime minister, who has direct authority over its disbursement.

Anupong said the hiring, procurement and contract signings were expected to be completed by the end of this month and the disbursement of the budget was expected to begin by September.

"The disbursement of the budget is expected to be fast, as these are existing projects that have had some preparation in terms of the procurement process, and the majority of the projects are in clusters that consist of collective aims," he added.

Meanwhile, Deputy Government Spokesman Maj-General Weerachon Sukhonthapatipak said the government was seeking to further the Kingdom’s trade ties with South Korea via a bilateral free-trade agreement.

"There is huge potential in furthering Thailand’s trade ties with South Korea, as the trade value between the two countries is currently only US$1.3 billion, while that between Thailand and Japan is $6.3 billion and that with China is $6.5 billion," he said.

"The only trade agreement between Thailand and South Korea currently is under the South Korean-Asean framework, but Singapore, Vietnam and Indonesia all have FTAs with South Korea, so the Cabinet believes there is a possibility to increase the trade relationship with South Korea," he said.

Weerachon said the Thai side had reviewed the benefits it would enjoy by increasing trade ties between the two countries and has proposed measures to reduce tax and non-tax trade barriers, while South Korea had proposed measures to boost and facilitate bilateral investments.

"The Cabinet has approved the Thai proposals and the government along with the South Korean government is currently reviewing the proposed measures before making it into a reality as soon as possible," he said.