Central Scrutinizer Posted January 19, 2009 Report Share Posted January 19, 2009 Get consumers spending again, say industry leaders NAREERAT WIRIYAPONG The local automobile industry, which could be the hardest-hit sector in the global recession, says the government must move aggressively to stimulate domestic spending as exports are sinking "I don't want to say how bad the situation will be next year, but a two-digit fall in both domestic and export sales is very likely. It depends on how fast and effective the relief package is for us," said Ninnart Chaithirapinyo, vice-chairman of Toyota Motor Thailand. "Today, we need an aggressive government that has the guts to implement decisive policy as soon as possible and it should be 'extreme medicine' that can halt the domino effect to the industrial sector now." Speaking yesterday at a seminar on the auto sector in a world recession, Mr Ninnart said the industry firmly agreed with the suggestions to reduce corporate income tax to 25% from 30%. It also supports cutting value-added tax (VAT), which it believes would have a direct effect on increasing purchasing power. "The government must have the guts to cut taxes now to help those with low incomes, who are the first to feel the pinch of an economic slowdown," he said. He also supports further cuts in interest rate, saying the Bank of Thailand has more room to manoeuvre now that the local benchmark is 2.75% while the US rate is between zero and 0.25%. Mr Ninnart said the overall economic situation in the country should not be as poor as it is now, and blamed protracted political tensions and instability for hurting the domestic market. However, Thailand was still better off than many countries, he acknowledged. "Given that the decline of the Thai economy has been quite soft, I don't think the unemployment rate will be as bad as during the crisis in 1997. At that time, overall job losses in the automotive sector were the worst - there were about 80,000 jobs cut from total employment of 300,000." Vehicles sales this year are expected to reach 615,000 units in the domestic market and 770,000 for export. Piengjai Keawsuwan, chairperson of the Automotive Club of the Federation of Thai Industries said car production next year would drop to 1.2 million units from an estimated 1.4 million this year. Speaking for the parts industry, Thavorn Chalassathien supported Mr Ninnart's view, saying the six-point stimulus measures passed by the Samak Sundaravej administration, which will end in January, should be extended for another year. The Finance Ministry, however, remains reluctant to cut taxes, given the difficulty it will face raising revenue in the coming year. It has pointed out that for every 1% of VAT reduction, the government would lose 50 to 70 billion baht, while a 5% reduction in corporate tax would cost the state an equal amount. Ekniti Nitithanprapas, a spokesman for the Fiscal Policy Office, said that instead of tax cuts, authorities might consider offering tax incentives for training costs, which would encourage businesses to keep their workers. http://www.bangkokpost.net/191208_Business/19Dec2008_biz37.php Link to comment Share on other sites More sharing options...
Faustian Posted January 19, 2009 Report Share Posted January 19, 2009 But still condo prices aren't coming down... A soft recession...does that mean condo prices wont fall? Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted January 19, 2009 Report Share Posted January 19, 2009 The best stimulus for the Thai economy would be to hand out 2 vouchers that will pay bar fines for each day farang males plan on staying in the Kingdom. Link to comment Share on other sites More sharing options...
Faustian Posted January 19, 2009 Report Share Posted January 19, 2009 Not sure the government will go for that idea.... Link to comment Share on other sites More sharing options...
Torneyboy Posted January 19, 2009 Report Share Posted January 19, 2009 Do they have *any* ideas... Link to comment Share on other sites More sharing options...
Faustian Posted January 19, 2009 Report Share Posted January 19, 2009 I guess not...! Wish the prices of bloody condos would drop though. Saw an advert for some new development on Sukhumvit. Prices start at 7.2 million! Holy fark! They start at that! That's the smallest size for a condo in a developing country, with average wages of 20k Baht per month. Fark, fark and fark some more! Link to comment Share on other sites More sharing options...
Torneyboy Posted January 19, 2009 Report Share Posted January 19, 2009 We are looking in Hua Hin....same sort of prices 5-10mill ...modern with either beach front or good sea views ...going in two weeks to twist some arms... Link to comment Share on other sites More sharing options...
Central Scrutinizer Posted January 19, 2009 Author Report Share Posted January 19, 2009 Had a friend buy a condo in HH on the beach with a beach view blacony a few years back. 20G USD for a studio. He bought the one next to him at about the same price to rent out a little later when it went up for sale. His values have risen dramatically. It was a smart move. The prices these days are absurd and I sure as hell would not spend that sort of money here, even on a condo that is supposedly in 'my' name. The gov here is fucked up and I do not trust them to not mess with things later on down the road with farang ownership. I just don't trust the pricks. Renting is the smartest way here I feel, and cheaper in the long run really. Plus if things go to shit here you can just leave and stop paying the rent (after putting your stuff in a storage rental space) and return when things are cool and rent another place. Link to comment Share on other sites More sharing options...
Torneyboy Posted January 19, 2009 Report Share Posted January 19, 2009 Yeah ..sound advice ..we plan to spend 4-6 months in LOS and the rest at home in Sydney or traveling....would rather rent for a few months and invest the cash to fund the rest of our plans..... Just need to talk my wife around Link to comment Share on other sites More sharing options...
Faustian Posted January 19, 2009 Report Share Posted January 19, 2009 TB good luck with that Cent, I've rented and rented...but I would like to get a small place I can call my own, decorate to my tastes etc. But I'm not playing these ridiculous prices. Have the money, don't want to spend it on crap. Of course I'd really like a house...but that's not going to happen for some time. Need to get married first! Link to comment Share on other sites More sharing options...
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