Prime Minister's BOI speech aimed at reassuring investors

Before I begin, I would like to take this opportunity to thank former [British] prime minister Tony Blair for being with us here in Thailand and also for sharing your views and experiences at the CEO Forum earlier this morning. 

 It is a pleasure to welcome all of you to this gala dinner hosted in honour of participants to the CEO Forum. 

This forum highlights, once again, the importance of close partnership between the private sector and government in particular, at a time of both challenge and opportunity.   

Last year, Thailand experienced one of the most serious floods in our modern history. Many people died and thousands lost their homes. The economic impact was significant as the flood caused disruptions in industrial and agricultural production. 

But Thailand overcame the crisis. We are grateful for the assistance and support that we have received from many of you. 

The flooding in Thailand and other natural disasters that have occurred in many parts of the world over the past year underscore the problem of climate change, in which we must work together to address. Looking forward, this government is determined to turn this crisis into an opportunity to ensure that our economy is better protected from disasters and is also more productive.    

Ladies and Gentlemen, to achieve this, we have adopted a new approach on water management. Around 11 billion US dollars have already been set aside to create a new and improved water and crisis management system.

First are protective measures.  

Flood walls, barriers and dams will be built and reinforced.  Infrastructure will be made more flood-resistant, and industrial estates will be better protected. Foreign and local companies can rest assured. Your investments shall be protected.

Second are water management measures. 

Floodways and flood diversion channels need to be created for water to flow in and out in an orderly manner. Drainage systems must be improved to prevent water build-up. Flood retention areas will be developed to help manage water outflow and protect important economic areas.  

Third are early warning systems

An effective information database and organisation should be developed to improve early warning for floods and other disasters. At the same time, local contingency planning must be developed to limit risks to communities.

Fourth are organisational measures.    

A single command authority on water management will be in place during times of crisis. This will allow for effective planning and timely response. In addition, this will also allow the government to provide sufficient assistance to those affected. 

And fifth, environmental protection measures.

We need to pursue reforestation and better manage our eco-systems. We recognise that climate change and environmental protection deserve greater attention, nationally and regionally.  

Ladies and Gentlemen, despite the flood challenge that we faced, we expect to see our economy expand at 4.5 to 5.5 per cent this year.  That is because our core strengths have not been affected.

Thailand’s economic fundamentals remain strong, and the level foreign exchange reserve is high at around 180 billion US dollars. We also have a large pool of skilled and quality labour that is valued by multinational companies.  

This government is committed to promote domestic demand through investment and government spending. Projects that have been planned include large transportation and infrastructure projects to promote national and regional connectivity. 

With regards to policies for private sector businesses, corporate income tax is being lowered from 30 to 23 per cent this year. We have removed some restrictions in order to make it easier for companies to set up regional operating headquarters in Thailand. In addition, labour skills are being upgraded, and Thailand is preparing itself for the Asean Community in 2015.

And we have greater political stability through this government’s policy of reconciliation. Just last week, remedies have been approved for people and families who suffered from the political violence of the past few years. With good governance, the rule of law and transparency, we have strong foundations for sustainable growth.  

Finally, I would like to reaffirm my government’s commitment to working with all of you, so that everyone will benefit from Thailand’s ever growing opportunities.