JSCCIB forecasts GDP growth at 3-3.5%

Supant Mongkolsuthree, president of the Federation of Thai Industries, said this year was expected to see no less than Bt1.5 trillion in public and private investment, which result in GDP growth of 3 per cent.

He said that the Board of Investment was expected to see Bt450 billion worth of projects apply for investment promotion in 2016. Of that total, about 30-40 per cent or Bt135 billion to Bt180 billion in investment was projected to be made this year.

In addition, about 40-50 per cent of Bt2 trillion worth of projects approved in 2014 and last year were in the pipeline, and 20 per cent of the government’s Bt1.9 trillion worth of mega-projects, or about Bt380 billion, were estimated to make investments this year.

Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, said exports were estimated to rise by no more than 2 per cent this year in light of a sluggish global economy, the country’s drought and global political conflicts.

China was expected to see its economy grow by no more than 7 per cent this year, while Europe would likely continue to see economic slowdowns.

However, the baht is expected to depreciate further, which could help Thai exporters, he said.

In regard to tensions between Saudi Arabia and Iran, Thailand has not yet seen any impact on trade with Iran, given its small volume, Isara said.

On the tax front, Prasong Poontaneat, Revenue Department director-general, insisted that a launch of an emergency decree for tax exemptions and promotions was not a tax amnesty, but aimed at forestalling retrospective tax inspections and offering incentives to compliant businesses.

This measure was expected to encourage more small and medium-sized enterprises to enter the tax system.

From January 1, 2019, the Finance Ministry and the Bank of Thailand will require submission of similar financial statements as those given to the Revenue Department for credit requests, and that would allow SMEs that make tax payment to gain easier access to capital.

Boontuck Wangcharoen, chairman of the Thai Bankers’ Association, said this measure would be a turning point that could boost the nation’s competitiveness, while SMEs would also find it easier to access funding.

The government-supported e-payment measure could also lessen the use of cash, which could lead to a financial system with more transparency, more efficiency and higher capability. Based on this system, money will be transferred via a mobile phone number or an identification-card number.

The e-payment system is expected to commence in the third quarter of this year and to lower expenses by Bt100 billion per year or about 1 per cent of GDP.