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Finance Minister and Central Bank Set Inflation Target of 1-3%

Published

1 day ago

December 26, 2024

Wadi

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.

News

Public Invited to Join New Year’s Eve Chanting Ceremony Honoring Monarchs

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3 hours ago

December 28, 2024

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New Year’s Eve Chanting Ceremony to Celebrate Royal Merit

The Ministry of Culture has extended an invitation to the public for the “New Year’s Eve Chanting” ceremony, a significant event aimed at receiving blessings and welcoming the New Year. Scheduled from December 31, 2024, to January 1, 2025, this ceremony will honor the royal merit of Thailand’s past monarchs and commemorate His Majesty King Maha Vajiralongkorn’s upcoming 72nd birthday on July 28, 2024.

Promoting Buddhist Traditions and Teachings

This event seeks to uphold Buddhist traditions while promoting the application of Buddhist teachings in daily life. It also encourages participants to abstain from harmful activities during the New Year festivities. Sudawan Wangsupakitkosol, Minister of Culture, emphasized the importance of this ceremony in fostering spiritual reflection as the year comes to a close.

Sacred Flame and Symbolic Gifts for Participants

The Ministry has received a royal blessing from the Supreme Patriarch of Thailand, who provided a sacred flame for lighting auspicious candles during the chanting ceremony. Additionally, the Supreme Patriarch has graciously allowed his initials to be printed on matchbox covers that will be distributed by provincial cultural offices across the country. These matchboxes will be used to light candles during the ceremony and serve as symbols of blessings for attendees.

Central Events in Bangkok

In Bangkok, central events will occur at prominent locations including Sanam Luang, Wat Arun, and Wat Pho on December 31. The ceremonies will be broadcast live via television and other media platforms, allowing people nationwide to participate in this spiritually enriching experience.

Special Activities and Nationwide Participation

Participants will have the opportunity to pay homage to the Buddha’s relics (Sacred Tooth Relic) enshrined at Sanam Luang from December 4, 2024, to February 14, 2025. The Department of Religious Affairs has also encouraged religious organizations to host New Year activities according to their respective practices. For instance, Christian churches will hold Thanksgiving services, Hindu-Brahmin temples will organize prayer ceremonies, and Sikh Gurdwaras will conduct Ardas prayer ceremonies.

Nationwide Alms-Giving Ceremony

On January 1, 2025, a nationwide alms-giving ceremony will take place for Buddhist devotees as a way to usher in blessings for the New Year. All 76 regional offices will host chanting events and alms-giving ceremonies, with additional activities coordinated by 17 provincial cultural offices along Thailand’s borders with ASEAN nations.

A Unified Celebration of Faith and Tradition

The “New Year’s Eve Chanting” ceremony represents a unique opportunity for individuals across Thailand to come together in celebration of their faith and cultural heritage. By honoring past monarchs and His Majesty King Maha Vajiralongkorn through this spiritual event, participants can reflect on the year gone by while welcoming new beginnings with hope and positivity.

News

Pattaya’s Property Market Set for Exponential Growth Amid Rising Demand

Published

3 hours ago

December 28, 2024

Wadi

Surge in Condominium Developments in Pattaya and EEC

Experts predict significant growth in the property market in Pattaya and the Eastern Economic Corridor (EEC), driven by increasing demand for beachside condominiums and the relocation of Chinese production bases. Phattarachai Taweewong, director of research and communication at Colliers Thailand, announced that 20 new condominium projects worth 43.28 billion baht have been launched in Chonburi province.

Condominium Projects Concentrated in Key Areas

Out of these projects, 13 are located in Jomtien Beach, offering a total of 7,897 units, while seven projects with 2,540 units are situated outside Pattaya. Most of these developments are spearheaded by prominent Bangkok-based property developers such as Origin Property, Riviera Group, Sansiri, and AssetWise. This influx has pushed the condominium supply in Pattaya to a five-year high, indicating a robust market poised for further expansion.

Historical Sales Data and Market Trends

Phattarachai revealed that from 2011 to 2024, a total of 116,075 condominium units have been made available for sale. Notably, 39.66% of these units are located in Jomtien Beach, followed by Phra Tamnak Mountain (18.82%) and central Pattaya (18.70%). Currently, 36,471 units, or 76.29%, have been sold, leaving only 11,329 units on the market.

Luxury Condominiums Attracting Buyers

Luxury condominiums remain highly sought after in Pattaya, particularly in areas like Wong Amat and Jomtien, where available supply is limited. Phattarachai anticipates continued growth in the condominium market next year with new projects planned for central Pattaya, Jomtien, Na Jomtien, and Wong Amat.

Positive Sentiment from EEC Development

Sombat Chanyuttakorn, managing director of LPN Development, highlighted that numerous property projects have emerged in the EEC over the past five years. The buyer demographic includes both investors and employees from industrial estates earning between 20,000-50,000 baht monthly.

Impact of Chinese Entrepreneurs on Rental Markets

The relocation of Chinese entrepreneurs to Amata City Chonburi Industrial Estate has positively influenced the property market. Chanyuttakorn noted that rental rates for apartments and serviced apartments have surged by 80-90%, indicating strong demand for accommodation in the area.

Bright Future for Pattaya’s Real Estate Market

The combination of ongoing infrastructure development under the EEC initiative and rising foreign investment positions Pattaya’s real estate market for substantial growth. As demand continues to rise for condominiums near the beach and other desirable locations, investors are likely to find lucrative opportunities in this vibrant market. With strategic developments planned for 2025 and beyond, Pattaya is set to become a key player in Thailand’s property landscape.

News

Executives Optimistic About Thailand’s Economic Growth and Investment in 2025

Published

3 hours ago

December 28, 2024

Wadi

Survey Reveals Positive Outlook for Thailand’s GDP Growth

A recent survey published by Thansettakij shows that most senior executives in Thailand are optimistic about the country’s economic prospects for 2025. Approximately 67.3% of the 50 executives surveyed expect Thailand’s GDP to grow by 2-3% in the coming year, while 20.4% predict a slightly higher growth rate of 3-4%. This positive sentiment reflects confidence in the ongoing recovery of the Thai economy.

Investment Plans Focused on Digital Transformation and Sustainability

In terms of investment, 28.8% of executives plan to increase their spending next year, while 36.7% intend to maintain their current investment levels. Executives highlighted government policies as the most significant factor influencing their businesses, followed closely by political stability and interest rates. The survey also indicated that the ASEAN region is viewed as the most promising area for business expansion, with 49% of respondents favoring it over India (24.5%) and China (18.4%).

AI and Cybersecurity: Key Drivers of Future Growth

Executives identified artificial intelligence (AI) and machine learning as crucial drivers for Thailand’s future growth. A significant 71.4% of respondents are focusing on AI adoption to enhance operational efficiency, particularly in data analysis and administrative tasks. Additionally, 52.2% are prioritizing upgrades to their network infrastructure, while 50% are enhancing security systems to prepare for an increasingly digital landscape.

Sustainability Initiatives Gain Momentum

Sustainability is also a priority for many executives, with 59.2% planning investments based on environmental, social, and governance (ESG) principles. Key areas of focus include green technology (67.3%), carbon dioxide reduction (40.8%), and governance initiatives (26.5%). Furthermore, nearly half of the executives (49%) are planning initiatives aimed at addressing climate change.

Increased Competition and Changing Consumer Behavior

Despite optimism about economic growth, more than half of the executives (55.1%) anticipate intensified industrial competition driven by digital transformation. They recognize that super apps like Line, TikTok, Shopee, and Grab will play significant roles in business operations moving forward. To adapt to these changes, 44.9% are considering implementing new business models, while 40.8% plan to adjust their business structures or launch new ventures.

Concerns About Consumer Trends

Executives expressed concerns regarding shifting consumer behavior, particularly the increased emphasis on price over quality due to the rise of e-commerce and social commerce platforms. However, they noted that consumers are also placing a higher value on convenience and sustainability.

Need for Government Support

While most executives remain optimistic about their business performance—53% predicting growth between 0.1-10%, and 22% expecting growth above 10%—they emphasized the need for government support in several areas. Key requests include infrastructure development to boost competitiveness (28.6%), tax measures to attract investment (26.8%), and human resource development initiatives (22.4%). As Thailand navigates its economic recovery, collaboration between the government and private sector will be essential for fostering sustainable growth in 2025 and beyond