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

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
Myanmar Border Towns Face Diesel Shortage Amid Crackdown on Scam Operations

Diesel Shortage at Thai-Myanmar Border
Border Diesel Shortage
The Thai-Myanmar border region is experiencing a diesel shortage as Thai authorities intensify efforts to combat fuel smuggling, which is intended to disrupt scam operations in Myanmar. This has led to limited fuel availability and increased prices in Myanmar border towns.
Anti-Smuggling Measures Intensified
Tackling Fuel Smuggling
Thai security forces are actively arresting individuals involved in smuggling fuel into Myanmar1. This action follows Thailand’s decision to cut off electricity, fuel, and internet supplies to five border areas notorious for online scam operations.
Impact on Local Communities
Communities Impacted by Diesel Shortage
The diesel shortage is impacting local communities, small businesses, and clinics that rely on diesel generators, especially in areas where solar panels are not a viable option. Ordinary residents are the most affected as they face increased transportation costs.
Rising Fuel Prices in Myanmar
Myanmar Fuel Prices Rising
Following the cutoff of supplies from Thailand, the retail price of diesel in Myanmar towns near the border has nearly doubled1. In Tachileik, prices have surged from 30 baht per liter to over 80 baht. Similarly, in Payathonzu, prices have increased from 32 baht to 60 baht.
Thailand’s Crackdown on Scam Centers
Scam Center Crackdown
The Thai government’s actions aim to put pressure on scam operation centers in neighboring Myanmar, particularly those run by Chinese crime syndicates. These centers are known for online fraud, human trafficking, and forced labor.
Joint Efforts to Combat Illegal Activities
Combating Illegal Activities
Joint police and military forces along the Thai-Myanmar border are increasing their efforts to seize smuggled fuel. Authorities have arrested smugglers attempting to transport diesel across the Moei River into Myanmar.
Junta’s Involvement and Restrictions
Junta’s Restrictions
Myanmar’s junta has also blocked fuel from reaching Myawaddy from central Myanmar ports. This has exacerbated the fuel shortage, with fuel trucks facing restrictions at checkpoints.
Concerns and Reactions
Concerns and Reactions to Diesel Shortage
Residents have expressed concerns about potential fuel rationing and the impact on hospitals and essential services. Under pressure from China, the junta has threatened action against local authorities involved in scam operations.
News
Majority of Thais Favor Power Cut to Myanmar Amid Scam Concerns

Public Support for Power Cut to Myanmar
Survey Reveals Strong Backing for Electricity Cutoff
A recent opinion survey indicates that a significant majority of Thais support the government’s proposal to cut off electricity supplies to areas in Myanmar where call-centre gangs are suspected of operating. Conducted by the National Institute of Development Administration (NIDA Poll) from February 10-11, the survey involved 1,310 participants aged 18 and older. The results show that over 80% of respondents back the initiative aimed at combating these criminal networks.
Government Actions Against Scam Operations
Measures Implemented to Combat Online Scams
The Thai government has taken decisive steps to address the growing threat posed by online scam operations based in Myanmar. Following public outcry, authorities decided to cut off electricity, fuel, and internet services to five towns known for harboring these illicit activities. This action is part of a broader strategy to protect national security and mitigate the damage caused by these scams, which have reportedly defrauded individuals globally.
Details of the Power Cutoff
Interior Minister Anutin Charnvirakul announced that the power cutoff would affect key areas such as Myawaddy, Tachileik, and Payathonzu. The decision was made during a National Security Council meeting, highlighting the urgency of addressing the rampant online fraud linked to organized crime syndicates operating across Southeast Asia.
Community Impact and Reactions
Local Communities Face Challenges
The power cutoff has led to significant disruptions in local communities. Reports indicate that approximately 7,500 households, along with schools and hospitals, are affected by the lack of electricity. Residents in these areas have begun seeking alternative energy sources, such as generators and solar panels, in response to the sudden changes.
Continued Operations Despite Cutoff
Despite the power outage, many scam operations continue to function using their own generators. Local officials have noted that while some businesses have been impacted, others remain operational due to their ability to generate electricity independently. This resilience raises questions about the effectiveness of the Thai government’s measures and whether they will significantly hinder scam activities.
A Divided Perspective on Effectiveness
Public Opinion on Government Strategy
While a substantial portion of the Thai population supports cutting off power supplies to Myanmar’s scam centers, there remains skepticism about whether these measures will effectively dismantle such operations. The survey also raised questions regarding potential complicity among Thai officials with these criminal networks, further complicating public trust in governmental actions.
Future Considerations for Policy Implementation
As Thailand navigates this complex issue, ongoing assessments will be crucial in determining the long-term effectiveness of these strategies against transnational crime. The government’s ability to balance public safety with humanitarian concerns for affected communities will be essential in shaping future policies regarding cross-border crime and cooperation with neighboring countries.
News
Severe Air Quality Alert: Red Smog Levels in Bangkok, Nonthaburi, and Samut Prakan

Bangkok Faces Hazardous PM2.5 Levels
On February 16, 2025, Bangkok reported alarming levels of PM2.5, reaching a hazardous peak of 94.2 micrograms per cubic meter (µg/m³) at noon. This measurement significantly exceeds the government’s safety threshold of 37.5 µg/m³, marking it as the highest pollution level in the country. The situation is dire, with the Geo-Informatics and Space Technology Development Agency (GISTDA) confirming that the air quality poses serious health risks to residents.
Surrounding Provinces Also Affected
Nonthaburi and Samut Prakan are not far behind, recording PM2.5 levels of 84.8 µg/m³ and 77.8 µg/m³, respectively. These readings place them in the same hazardous category as Bangkok, indicating widespread air quality issues across the metropolitan area. Authorities are emphasizing the need for immediate action to mitigate health impacts.
Health Risks Associated with Red Smog Levels
The presence of red-level PM2.5 is particularly concerning as it can lead to severe health complications, especially for vulnerable populations such as children and those with pre-existing conditions. Residents are advised to limit outdoor activities and utilize protective gear like PM2.5 masks when necessary.
Comparison with Other Provinces
In contrast to the hazardous conditions in Bangkok and its neighboring provinces, several southern provinces reported safe air quality levels, with PM2.5 measurements ranging from 13.5 to 14.6 µg/m³. This stark difference highlights the localized nature of the smog crisis affecting central Thailand.
Government Response and Public Advisory
The Thai government continues to monitor air quality closely while advising residents to stay informed about pollution levels through official channels. Recommendations include avoiding strenuous outdoor activities and seeking medical attention for any unusual health symptoms.
Urgent Need for Action
The persistent red smog levels in Bangkok, Nonthaburi, and Samut Prakan underline an urgent public health crisis that demands immediate attention from both authorities and residents alike. Continuous monitoring and adherence to health advisories are crucial in navigating this environmental challenge effectively.
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