Suriya said the Petroleum Institute of Thailand would take about six months to complete the study.

Suriya was speaking to reporters while he was visiting the Industrial Estate Authority of Thailand on Monday. He said he would soon sign a contract to hire the petroleum institute to study the plan to reclaim 3,000 rai of land from the sea near the Laem Chabang deep seaport.

He said the move was not aimed at just allowing Exxon Mobil Crop to invest Bt330 billion in Thailand but also prepare Thai and foreign investors to invest in the port.

“Now, Exxon Mobil has an oil distillery near the Laem Chabang port in Si Racha district. They want to invest more and they want another 1,000 rai of land. The land on the shore near their initial investment site has all been occupied so we have to consider the land reclamation option,” Suriya said.

“So, I think we must look ahead to plan not just facilitate investment by Exxon Mobil.”

The minister said the study would be done comprehensively on both the environmental and economic impacts.

“If the study does not back the plan, it will be halted immediately,” Suriya said.

Environmentalists have cried foul, saying the massive land reclamation would severely affect the sea ecological system.

On the opposition by environmentalists, Suriya said if the study found the project would benefit the country, create jobs and expand the economy, he would go ahead with the project.

“We won’t do it for free because we will collect land-lease fee from investors,” Suriya added.

Somjin Philuek, governor of the Industrial Estate Authority of Thailand, said if the project were approved, her authority would be in charge of land reclamation. She said the authority would first wait to see the results of the study by the petroleum institute.

Also, since August 16, every hospital has been required to print out QR codes so patients can compare prices.

Prayoth Benyasut, the department’s deputy director-general, said private hospitals, manufacturers, importers and dealers provided the department with their price lists on July 31, and DIT has used this data to set a price for each item, which will be made accessible to customers.

Previously, patients could not compare prices and were overcharged as private hospitals used to add additional costs such as the pharmacist’s salary and the cost of maintaining the medicine department.

“If hospitals are not able to explain why a medicine is overpriced, they will be fined Bt140,000 or be imprisoned for seven years, or face both a jail term and fine,” Prayoth said.

DIT will release a list of pharmacies on its official website, www.dit.go.th, so people can have their prescriptions filled there, though this option is still being considered by the Pharmacy Council of Thailand.

The department has also sent its agents to check if private hospitals are displaying the QR codes. People can also check the price of drugs on the www.hospitals.dit.go.thwebsite.

Private hospitals will also be required to follow the Joint Standing Committee on Commerce, Industry and Banking’s notification on regulations on drugs, medical supplies and medical services, which insists that patients be provided with estimated costs before they are admitted to hospital.

Hospitals are also required to provide patients with prescriptions that have clear information and instruction.

Meanwhile, DIT said it will summon 20 private hospitals to testify after they failed to meet the July 31 deadline to provide their price lists. If they don’t show up, they will face three months in jail and/or fined Bt5,000. Those who have failed to provide complete data will be fined Bt2,000, while those that have failed to respond to the deadline will be fined Bt20,000 and/or imprisoned for a year.

Of the projects seeking investment, 57 per cent are industrial companies valued at a total of Bt131 billion. The highest number of applicants are electrical appliance manufacturers, followed by carmakers, agriculture and food-processing businesses.

Meanwhile, in the first half of the year, foreign investors have spent Bt147 billion on 468 projects, 109 per cent more than Bt70 billion invested in the same period last year.

Japanese investors top the list with Bt42 billion, followed by China at Bt24 billion, Switzerland at Bt11 billion, Singapore Bt7.6 billion, and Hong Kong Bt7.3 billion.

Duangjai said BoI’s investment promotion was in line with the Thailand 4.0 investment plan. The board has approved investment promotion for 717 projects, which will create 43,878 jobs and promote the use of local materials worth Bt236 billion and earn up to Bt337 billion in exports.

“It is not crisis, the economy is still expanding ,” secretary general of the NESDC Thosaporn Sirisumphand, told a press conference yesterday.

Contraction of exports, lower growth in foreign tourist arrivals, weakening private investment and delay of budget disbursement all attributed to the lower growth in the second quarter, according to the state think tank.

The NESDC has revised downward its projection of this year’s economic growth to 3 per cent, or to a range of between 2.7-3.2 per cent, compared to an earlier estimate of 3.3-3.8 per cent.

Key assumptions have also been changed to reflect latest economic condition globally and domestically, according to the NESDC.

Export values in dollar term this year is expected to contract by 1.2 per cent following a contraction of 4 per cent and 4.1 per cent in the first and second quarter from the impact of the ongoing trade war between the United States and China, said deputy secretary general Wichayayuth Boonchit.

Previously, the NESDC forecast export growth at 2.2 per cent for 2019.

The four-per cent contraction of exports in the first half of the year had largely weakened the economy, he said.

Meanwhile, private investment expanded at a slow pace of 3.7 per cent from an earlier estimate of 4.5 per cent. The export contraction led to slower capacity utilisation, affecting private investment.

Public investment is expected to slow to 4 per cent from the previous estimation of 4.5 per cent, largely due to the delay in the formation of the new government after the May election.

The NESDC, however, was optimistic about household consumption, keeping its previous forecast of 4.2 per cent. Public consumption is also predicted to stay at its previous estimate of 2.2 per cent as government spending to support lower income groups would in turn support household consumption.

The number of Chinese tourist arrivals has yet to recover from the 8.8 per cent contraction in the third quarter of last year . Chinese tourist arrivals in the fourth quarter last year, first quarter and second quarter this year decreased by 10 per cent, 1.7 per cent and 8.2 per cent respectively.

Slower growth of Chinese economy and weakening of yuan currency were the major causes, he said.

“The NESDC miscalculated that more Chinese would have visited Thailand due its proximity, but instead they travelled to neighbouring countries such as Japan, South Korea, Taiwan, Hong Kong and Macau,” Wichayayuth said.

Major risks are on horizontal.

The euro-zone economy may lead the world into recession as Germany suffered economic contraction of 0.1 per cent in the second quarter, Italy zero per cent and a flat growth of 0.2 per cent in France.

The International Monetary Fund has revised its global growth projection to 3.3 per cent from 3.6 per cent and it could be lower if euro-zone economies face a sharper downturn, it warned. World trade growth is expected to slow to 3.4 per cent from 3.6 per cent estimated previously.

The euro zone could also face trade restriction on car and parts exports to US while Italy may see political problems. And if Britain ended up with a no-deal Brexit, it would multiply economic problems for the region, he warned.

The Chinese economy is sensitive to capital outflows while slower growth and weakening yuan currency have worried consumers and investors.

In Japan, the economy remains on an expansion trajectory. But if the US imposes trade restriction on Japanese autos, it could have an impact. Moreover, Japan plans to increase consumption tax rate later this year.

The impact of drought on the Thai economy is a serious issue as fresh water reserve remains at a lower level of 13 billion cubic metres as of August 15.

However, there are some encouraging signs which could cushion the weakening economy, he said.

Due to trade diversion, investors have started to relocate their factories out of China and importers are seeking imports from new sources, in fear of high tariff rates imposed by the US government omn Chinese imports.

“Judging by more applications for BOI tax privileges in the second quarter, we expect a rise in new investment in Thailand in line with a 8-9 per cent expansion of factory construction this year,” said Wichayayuth.

Prices of some farm products have risen, including Hom Mali fragrant rice, pork, meat and durian. The price index of farm product in the second quarter turned to positive for the first time in nine quarters, suggesting a rise in farmers’ income, he said.

The government stimulus package, to be approved by the Cabinet today (August 20), will also help boost the Thai economy. Moreover, the new government is expected to accelerate public investment in the rest of the year, he added.

Meanwhile, Don Nakornthab, senior director of economic and policy department at Bank of Thailand said the central bank cut policy rate in the latest meeting of Monetary Policy Committee to 1.5 per cent due to slower economic growth.

Looking forward, the Thai economy faces several risk factors including further impact from the US-China trade war, uncertainty of central bank policies in many countries and consistency of budget disbursement and economic policies implemented by the Thai government, he added.

Kasikorn Research Centre told the government to look at the labour market, saying that should external factors deteriorate it would further impact Thai exports, sending a wave of repercussion on the labour market and private consumption.

The research house maintains its growth projection at 3.1 per cent, but warned of risks which could lead to a range of 2.9-3.3 per cent.

It also said the stronger baht in the second quarter had eroded competitiveness of Thai exports, especially industries depending on input of local raw materials such as processed farm products.

“I have faith in Thai police. Even if the Cabinet does not approve the proposal of visa-exempt entry, criminals will still come to Thailand and get caught. The finance minister agreed with the measure on August 16, and I will propose it to the Cabinet today [August 20] to seek a final solution,” Phiphat said.

The move to boost tourism in the country includes two main measures, namely allowing Chinese and Indian tourists to enter Thailand without requiring a visa from November 1 to October 31, 2020 and exempting visa-on-arrival fees for 19 countries, with the exception of Chinese and Indian passport holders.

Another measure proposed by the finance minister is to give tourists a gift of Bt1,000, in addition to three extra measures, namely the Bt100 eat-shop-travel project, 15 per cent discount at a limit of Bt30,000 for tourists on food, hotel and travel, and a special week-day tourism plan.

Phiphat also said he will have an informal discussion with Prime Minister General Prayut Chan-o-cha and related ministries on extending the closing time for entertainment venues in some zones to 4am. However, Phiphat said he has asked the Tourism Authority of Thailand to study this measure first.

“The investment in this project is estimated at Bt330 billion,” he said. “However, the entire area of Laem Chabang Industrial Estate is occupied, so we have to look for new land.”

The minister further explained that Exxon Mobil proposed to fill the sea near their existing refinery in Laem Chabang, since the new petrochemical factory will need a supply of raw material from the refinery, so putting them close to each other would help reduce transports cost.

“The ministry and IEAT have agreed to reclaim 3,000 rai of land near Laem Chabang port,” he said. “Half or 1,500 rai will be allocated to Exxon Mobil’s new factory, while the rest will be reserved for future industrial estate development projects to be carried out by the IEAT.”

The Ministry of Industry has already tasked the Petroleum Institute of Thailand with studying the project’s feasibility and environmental impact. The study started in August and is expected to take six months.

Suriya said that if the study proves that the project is worth the investment while posing no serious threats to the environment, land reclamation should begin as soon as possible. “The ministry is weighing the pros and cons of this project carefully,” he said. “When finished, this project will help boost the economy, create more jobs, and promote the transfer of high technology from foreign partners. Meanwhile, the land filling technology nowadays is highly advanced and creates very little environmental impact, as we can see in many industrial countries such as Japan, Singapore and Hong Kong.”

Thai law dictates that all land reclamation projects must be carried out by government agencies, therefore IEAT will be responsible for the reclamation process, a while private joint-venture may be formed to increase efficiency.

He said the National Economic and Social Development Council (NESDC) report on the gross domestic product (GDP) in the second quarter showed growth in line with his ministry’s forecast, which is a why new stimulus measures are necessary. He added that the new measures, which will cost the government Bt310 billion, will boost the GDP by 0.55 to 0.56 per cent.

“According to the NESDC, the GDP expanded 2.3 per cent in the second quarter compared to the previous quarter’s growth of 2.8 per cent. This indicates a slower growth in Thai economy due to the state of the world economy. If these measures are not applied, the full-year growth may be lower than 3 per cent,” he said.

Uttama will submit a draft of the economic stimulus measures and management plans using the Bt310 billion budget to the Cabinet on August 20. Once they are approved by the Cabinet, some measures will be implemented this month.

He spoke after leading a meeting with three subsidiary agencies namely the Department of Trade Negotiations, Department of Business Development and Department of Intellectual Property as well as local entrepreneurs from Nakhon Ratchasima.

The said project aims to work with Cambodia to open trading gateways in four provinces.

“These provinces are Nakhon Ratchasima, Chaiyaphum, Buri Ram and Surin as the name Nakorn Chaiburin suggests,” he said.

Weerasak added that he has told the Department of Trade Negotiations to collaborate with the Thailand-Cambodia Joint Trade Committee to design policies that promote cooperation between the two countries and ease trade restrictions.

“For instance, we plan to upgrade the temporarily permitted area on Buri Ram border into a permanent trading gateway, which will not only expand opportunities along the border, but also attract more tourists to visit nearby provinces,” he said.

The deputy minister also added that the project will help expand markets for key agricultural products such as rice, mango, pineapple, corn and pomelo, as well as unique handcrafts such as Pakthongchai silk.

“I am confident that the Nakorn Chaiburin project will bring our products to one of the most promising free-trade zones in the world, as trade value between Thailand and Cambodia is estimated to reach US$15 billion [Bt462.5 billion] by 2020,” Weerasak said.

Weerasak was speaking after visiting operators of traditional retail and wholesale shops in Nakhon Ratchasima.

“Our discussions with traditional retail and wholesale operators revealed that most of them lack a good management system. Their displays are a mess and it is quite difficult for buyers to find the product they are looking for. They also lack a stock-check system, which may result in overstocking of goods and many of them going past their shelf life. More importantly, most traditional retailers and wholesalers are not able to organise promotions that can attract shoppers,” he said.

Weerasak said that by participating in the ministry’s Smart Cho Huay programme, which is designed to transform traditional retail shops into smart retailers, store owners will see their monthly sales increase by between 10 per cent and 15 per cent on average thanks to use of new technology. The system makes it easier for individual shoppers to find their preferred products and enhances stock management. They are also able to join with major suppliers to host promotion campaigns, which will attract more shoppers to the store.

“I have ordered the Department of Business Development to assess the problems and obstacles faced by traditional retailers, suggest measures to support them and submit these to me as soon as possible. We will focus on cooperation between government and the private sector to make the transformation more effective under the network of business partners. It will help traditional retailers and wholesalers move forwards sustainably. I believe that we can actually transform 10,000 traditional retail stores into smart retailers by the end of 2020,” said Weerasak.

“I’m confident that traditional retail shops will remain part of Thai society and not be just a place to buy and sell goods but also serve as a centre for exchange of information among people in that village. It will be a retail venue that helps out by allowing villagers to take home products and pay the next day. This is the generosity culture of the community that cannot be offered by modern convenience stores,” he added.

From mid-September, the Government Housing Bank (GHB) will begin offering soft loans to people wanting to purchase new homes priced at less than Bt3 million.

The loans, at the interest rate of between 2.99 and 3 per cent, will be available to customers regardless of their salary, GHB managing director Chatchai Sirilai said on August 19.

The interest could be further reduced to 2.55-2.75 per cent per year based on the stimulus packages the government is expected to launch in the coming months, he added.

GHM has allocated around Bt1 trillion for these soft loans and is expecting twice that amount in revenue. Chatchai said GHB was aiming to spend up to Bt18 billion per month on loans for the rest of the year. It gave out loans worth a total of Bt17 billon in the month of July.

Of the loans GHM has given out so far, 4.86 per cent are non-performing loans, which Chatchai said was satisfactory, adding that the bank was planning to write-off Bt12 billion in NPLs over eight months from now.

Meanwhile, the GHB lottery-linked savings account offering fixed returns of 1.4 per cent has been overbooked, with subscription hitting Bt47 billion, well beyond the target of Bt27 billion. As a result, a new lottery-linked savings will be launched with a sale target of Bt10 billion.