These factors, coupled with the volatile US dollar value, have added pressure to the already-slowing global economy, which will not facilitate recovery of Thailand’s exports in the second half of the year.

Thai economic indicators in the first half showed weak signals in both export and domestic consumption, it added.

Due to this gloomy outlook, Thailand needs to boost its domestic consumption, especially short-term measures from the government to alleviate the drought and to regain private sector confidence.

The joint committee said it would keep a closer watch on the situation but it has maintained GDP growth forecast this year in the range of 2.9 to 3.3 per cent.

It has also maintained its export growth forecast this year at between minus 1 per cent and 1 per cent growth.

Thailand’s GDP expanded 4.1 per cent last year, while exports grew 6.9 per cent.

The measures include an agricultural products price guarantee programme, investigations to ensure that prices of products and service price are fair, a boost in the country’s exports, and speeding up all trade negotiations now underway.

“Palm oil will be the first agriculture product, to be discussed today (August 7) between representatives of the government, private sector and farmers. The discussions will include the price and a way to guarantee palm oil prices, and we will then propose the plan to Thailand Palm Oil Board to consider before we make a proposal to the cabinet approve in the next step,” Jurin told a Wednesday press conference.

He added that a price guarantee for agricultural products will focus on five economic crops – palm oil, rice, rubber, corn and cassava. After the palm oil meeting today, Friday (August 9) will see a meeting between all parties to discuss rubber products, including representatives of the Agriculture and Cooperatives Ministry, private sector and farmers.

“We cannot now discuss the budget to guarantee a price programme for agricultural products – that will depend on the discussion,” he said.

Meanwhile, the ministry will continue to manage and investigate the prices of products in the market, to ensure a fair price is offered for both products and services for producers and consumers.

Boosting the country’s export is also a top first priority in order to boost the country’s economy through speeding up exports for both products and services.

“We will expand the country’s exports to the countries we now export to, open new export markets, improve our export to countries that are now non-active countries for our export products, and also improve border trade with neighbouring countries,” he said.

However, he did not say whether the ministry will revise the country’s export growth or in a  period when the baht is appreciating against the US Dollar and Yuan.

“We will be meeting with all of the relate parties about the export problem, such as Thai National Shippers’ Council, Board of Trade of Thailand, and so on, on August 14. Then we will know if we can revise our export target or not. However, at this time we will maintain our export target at 3 per cent,” he said.

The minister has continued efforts to speed up all trade negotiations aiming for a completion by the end of this year, including free-trade agreement with Turkey, EU, UK, Pakistan, and Sri Lanka, as well as the Regional Comprehensive Economic Partnership (RCEP), the Asean plus six, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Next in the six strategies of the ministry is the continued improvement of the E-filing system, aimed to improve the ministry’s services for all of parties who have contracts with the ministry.

The next action is to accelerate the registration of intellectual property and Geographical Indications both domestically and overseas. This will improve the value added to products and services that are owned by Thai people.

Another priority is to drive the country toward a modern economy through advances in digital, innovation, bio-technology among others, to support the country’s startups, OTOP products, and franchise business so that they are able to boost the country’s economy, he said.

The ministry also plans to develop the country’s smart traditional retail shop by supporting all traditional retail shop to improve their shop design and systems in order to advance their business together with the ministry’s Blue Flag shop concept.

“We will set up a master plan for how many shop we want to develop by the end of this year and the next year. This will help lower-income people to have a business and also support traditional shops in the communities to compete with modern trade in the market,” he said.

Next is to promote and improve the country’s service sector standards, including for restaurants, spas, movies and ageing business.

In order to drive all of the ministry’s strategies toward achieve the individual goals, the last strategy is for the ministry set up a system to collaborate with all parties to drive the strategy. This would be done by meeting with all of the ministry’s departments every month, meetings between the ministry and private sector to drive the country’s economy. As well there must be collaboration between all parties to consider the product and price guarantee under a participatory meeting between the government, private sector and farmers. That would set he price and the way to implement it, and also push commercial ambassadors to work together with the private sector to boost the country’s export market, he said.

Two members voted to maintain the policy rate at 1.75 per cent, according to the committee’s secretary, Titanun Mallikamas.

In deliberating their policy decision, the committee assessed that the Thai economy would expand at a lower rate than previously assessed due to a contraction in merchandise exports, which has started to affect domestic demand.

Inflation was projected to be lower than the lower bound of the inflation target. Overall financial conditions remained accommodative.

Financial stability risks had already been addressed to some extent, although there remained pockets of risks that warranted monitoring.

A more accommodative monetary policy stance would contribute to

the continuation of economic growth and should support the rise of headline inflation toward target. Most members thus voted to cut the policy rate at this meeting.

Nevertheless, two members viewed the policy rate cut as under the already accommodative monetary policy and might not lend additional support to economic growth, compared with the potentially higher financial stability risks. Moreover, there remains a need to preserve policy space, the dissenting members argued.

He said that following discussions with the Office of the National Economic and Social Development Council, THAI would need to buy more aircraft to raise its competitiveness with rival airlines in spite of its current losses. “This is because passengers today tend to prefer flying in new aircraft for comfort and value-for-money reasons. If THAI cannot compete in providing such service, the airline will suffer more losses,” he said.

Regarding the source of investment capital for the purchase of new aircraft, Thaworn said raising the registered capital should be most appropriate as it will not impact the country’s financial status. Seeking loans is seen as difficult as THAI has been making losses.

Regarding the five units of retired aircraft A340-500 and A340-600, which are parked and ready for sale, he suggested that THAI should fly such aircraft on European routes instead, as it will create more value for the airline.

Thaworn said that he also wants THAI to speed up generation of revenue, especially from the sale of tickets through agents.

“I have ordered THAI to reorganise its ticket sales through all agents, who account for 75 per cent of all ticket sales but are not quite efficient. Some agents buy tickets in bulk but later return the unsold tickets to the airline.

“Due to this lack of efficiency, THAI is burdened with this expense and a lost opportunity to find more revenue,” said Thaworn.

Thaworn said that THAI has to adjust its rules with new agents, such as giving them the exact timeframe for selling the tickets. Agents who cannot sell tickets as targeted should be punished with a fine or blacklisting, or losing their right to be agents. The airline also should find other potential channels to increase ticket sales, such as through online ticketing and application, as these channels account for only 25 per cent of total ticket sales.

Thaworn said that he also wants Thai Smile Airways to revise and clarify its positioning in the market.

“In my personal view, Thai Smile should reposition itself as a low-cost airline, from the current ‘light premium’, which is in the middle between premium and low-cost airlines. From my own analysis, the number of seats Thai Smile offers is not different from that of low-cost airlines, but its tickets are priced higher. So it cannot compete with low-cost airlines,” Thaworn said.

“Thai Smile should adjust its positioning as a ‘low-cost’ carrier and reduce some services to make the tickets cheaper. Most low-cost airlines will also fly short-distance routes and require fewer services,” he added.