Agreement on Inflation Framework for 2025

Finance Minister Pichai Chunhavajira and Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput have reached a significant agreement to establish an inflation target of 1% to 3% for the upcoming year. This decision is part of a broader effort to coordinate fiscal and monetary policies effectively and prevent deflation.

Memorandum of Understanding Approved

The memorandum of understanding (MoU) outlining this inflation target was approved by the Cabinet on Tuesday. The MoU emphasizes that maintaining price stability is crucial for the Thai economy and reflects a commitment to collaboration between the government and the central bank.

• Long-Term Goals: The 1-3% inflation target is set as a medium-term goal, with an eye towards achieving stability in 2025.

Shift in Tone Between Government and BOT

Previous Tensions Addressed

This agreement marks a notable shift in tone between the Finance Ministry and the BOT, especially following previous tensions regarding interest rate policies since the Pheu Thai-led coalition came to power in 2023.

• Commitment to Coordination: The MoU highlights that both parties will work together to ensure inflation remains within the established framework, avoiding significant deviations either above or below the target.

Flexibility in Economic Framework

Adapting to Economic Conditions

The MoU acknowledges that the inflation framework will be flexible to accommodate the needs of Thailand’s small and open economy. Regular consultations will be held to ensure effective coordination between fiscal measures and monetary policy.

• Use of Monetary Tools: The BOT plans to utilize various tools, including policy rates and measures aimed at protecting the value of the baht, to maintain the inflation target.

Preventing Deflation Concerns

Shared Commitment Against Deflation

Both the Finance Ministry and the Monetary Policy Committee (MPC) of the BOT have expressed their determination to prevent prolonged deflation, which could signal economic weakness.

• Reporting Mechanism: The MPC is tasked with reporting its operations to the government every six months, ensuring transparency and accountability in managing inflationary pressures.

A Unified Approach to Economic Stability

The agreement between Thailand’s Finance Minister and the central bank represents a unified approach towards achieving economic stability through a clear inflation target. By fostering cooperation and maintaining open communication channels, both parties aim to navigate potential economic challenges effectively while safeguarding the interests of consumers and businesses alike.

Overview of the Forex-3D Case Verdict

On December 26, 2024, the Criminal Court in Bangkok acquitted three celebrity defendants involved in the high-profile Forex-3D case, which has drawn significant public attention due to its massive financial implications. The court’s decision comes amidst a backdrop of serious charges related to a Ponzi scheme that defrauded nearly 2.5 billion baht from thousands of victims.

Acquitted Celebrities and Charges

The court acquitted Daryl Cai Yonghui, a Singaporean businessman, Pattanaphol Kunchorn (known as DJ Man), and singer Sutheewan Kunchorn. They were previously accused of operating fraudulent loan schemes and providing false information through a computer system.

• Insufficient Evidence: The court cited a lack of sufficient evidence linking these individuals to the alleged offenses, leading to their acquittal.

Sentencing of Other Defendants

Harsh Penalties for Remaining Accused

While three celebrities were acquitted, three other defendants received severe sentences. Each was sentenced to 20 years in prison after being found guilty of their roles in the Ponzi scheme.

• Total Damages: The court ruled that these defendants were responsible for defrauding 9,825 victims, resulting in total damages exceeding 2.487 billion baht.

Personal Impact on the Acquitted Celebrities

Reactions from Sutheewan Kunchorn

Sutheewan Kunchorn, who had spent six months in detention before being granted bail in November 2023, expressed her relief at the verdict.

• Family Reunion: She emphasized her joy at being able to reunite with her child for the New Year celebrations and reiterated her commitment to following the law throughout the proceedings.

Background on the Forex-3D Scheme

Overview of the Ponzi Scheme

The Forex-3D case is one of Thailand’s largest Ponzi schemes, with total losses amounting to billions of baht. The scheme was initiated by Apirak Kodti, chairman of the Thamma Apirak Foundation, who misled many individuals into investing in foreign currency exchange trading through a program called Forex-3D.

• Celebrity Involvement: The scheme gained traction as it involved various celebrities who helped promote its legitimacy, further enticing victims to invest.

Implications of the Verdict

The acquittal of three celebrities in the Forex-3D case highlights ongoing challenges within Thailand’s legal system regarding financial fraud and consumer protection. As the case continues to unfold with appeals likely from the prosecution, it remains a significant topic of discussion within Thai society and serves as a cautionary tale about investment schemes.

Authorities Implement Crackdown to Reduce Fire Risks

The Bangkok Metropolitan Authority (BMA) has announced a ban on fireworks, floating lanterns, and related items for the New Year countdown celebrations, allowing them only in 14 designated areas. This regulation aims to prevent fire hazards during the long holiday period, especially as many residents may be away from their homes.

Permission Required for Fireworks Displays

Bangkok Governor Chadchart Sittipunt emphasized the importance of safety, stating that event organizers must seek permission from local authorities before setting off any fireworks.

• Consequences for Violators: Those who disregard this regulation could face fines of up to 60,000 baht and/or imprisonment for up to three years.

Designated Locations for Fireworks

Approved Sites for New Year Celebrations

Despite the general ban, the BMA has permitted fireworks displays in specific locations across Bangkok. The approved sites include:

• CentralWorld
• One Bangkok
• Seacon Square
• Terminal 21
• Iconsiam
• Asiatique The Riverfront
• The Salil Hotel Riverside
• Chatrium Hotel Riverside
• Montien Riverside Hotel
• Chang Chui Creative Park
• Nakapirom Park
• Rim Lagoon Cafe and Restaurant
• JC Kevin Hotel
• Capella Hotel

Safety Measures During Celebrations

Emergency Centers Established

To ensure public safety during the countdown festivities, the BMA will set up emergency centers in various locations. These centers will be equipped to respond to any incidents that may arise during celebrations.

Prioritizing Safety During Festivities

As Bangkok prepares for the New Year celebrations, the decision to restrict fireworks is a proactive measure aimed at ensuring the safety of residents and visitors alike. By designating specific areas for fireworks displays and requiring permits, authorities hope to mitigate fire risks while allowing people to enjoy the festive atmosphere responsibly.