News / Asia

Consumer Survey Shows Thais Hoping Army will Bring Order after Chaos

Vendors sell trinkets in a tourist district of Khao San Road in Bangkok, May 27, 2014.
Vendors sell trinkets in a tourist district of Khao San Road in Bangkok, May 27, 2014.
Reuters
An index of consumer confidence in Thailand jumped in May on hopes a military government that seized power promising to impose order after months of political chaos will drag the economy back from the brink of recession.
 
The army toppled the remnants of Prime Minister Yingluck Shinawatra's government on May 22 after sometimes deadly protests since November that had forced ministries to close, hurt business confidence and caused the economy to shrink.
 
The coup was the latest convulsion in a decade-long conflict between the Bangkok-based royalist establishment, dominated by the military, old-money families and the bureaucracy, and the supporters of Yingluck and her brother, Thaksin Shinawatra, who are adored by the poor in the north and northeast.
 
Since then the ruling junta has moved to suppress criticism and nip protests in the bud. Yingluck and prominent supporters of the Shinawatras have been briefly detained and warned against any anti-military activities.
 
But the crackdown does appear to have brought some stability  for now, after months of paralysis under a caretaker government that lacked the power to make policy or approve new spending.
 
The University of the Thai Chamber of Commerce (UTCC) said on Tuesday its May consumer confidence index hit its highest level since January, just before protesters disrupted a Feb. 2 election called by Yingluck in a failed bid to end the crisis.
 
The index rose to 70.7 in May from 67.8 in April, when it had fallen for the 13th month in a row and was at its lowest level in more than 12 years. Polling for the index was carried out last week, after the coup.
 
“The main factor boosting sentiment was confidence in the future due to political clarity. People were more confident the economy would get better,” Thanavath Phonvichai, an economics professor at the university, told a news briefing.
 
University President Saowanee Thairungroj said an index on the political situation jumped to 59.6 in May from 37.3 in April. “It rose 22 points in a month, compared with just a few point changes previously, and that came in just one week.”
 
Not everyone in Bangkok shared the optimism.
 
“I'm not so confident with this government. It's not simple to seize control with guns and then manage the country's economy. You're bringing an inexperienced group to govern,” said Sunantha Pornsuksawang, 64, looking for lunch in a supermarket.
 
But Tanapan Sasikanyarak, 58, who was selling goods in the supermarket, reckoned the coup was a good thing.
 
“I think this political situation was scaring all the foreigners away from Bangkok, so I actually welcome the military intervention. Hopefully, this will now improve business here,” she told Reuters.
 
Abuse of power
 
In a decision sure to please a battered tourist industry, the military on Tuesday lifted a nationwide curfew in some tourist areas, including the beach resorts of Pattaya, Phuket and Samui. The four-hour curfew from midnight remains elsewhere, including in Bangkok and the northern city of Chiang Mai.
 
Yingluck herself was ordered to step down two weeks before the coup when a court found her guilty of abuse of power.
 
Her brother Thaksin, a former telecommunications tycoon who was considered the power behind her government, had been ousted as prime minister in the last military coup in 2006. He has lived in self-imposed exile since fleeing a 2008 conviction for abuse of power.
 
The junta wants to move swiftly to revive an economy that shrank 2.1 percent in the first quarter of 2014.
 
It has extended cuts to value-added and corporate taxes and moved quickly to pay billions of dollars owed to rice farmers after a state rice-buying scheme collapsed under Yingluck.
 
It has also extended price caps on fuel to help consumers. Inflation hit a 14-month high of 2.62 percent in May.
 
The UTCC's Thanavath said he expected the rice payments to inject about 100 billion baht ($3 billion) into the economy, along with 100 billion baht in promised loan guarantees for small firms plus 50-100 billion baht from initial investment in infrastructure.
 
“That 200 to 300 billion baht could help push up economic growth by 1 to 1.5 percentage points this year and it's very likely the economy will grow 2.5-3 percent,” he said.
 
The military wants to speed up foreign investment approvals plus some of the big infrastructure projects Yingluck was unable to advance, in part because a court rejected funding methods.
 
Air Chief Marshal Prajin Juntong, in charge of economic matters for the junta, said on Monday a backlog of investment applications worth about 700 billion baht ($21.3 billion) would be acted on within two months.
 
The Board of Investment says this includes applications from 10 global car makers for investments totalling about 139 billion baht related to plans to promote the production of more environmentally friendly vehicles.
 
Shares up
 
Shares in industrial land developer Amata Corp  rose 2.4 percent and rival Hemaraj Land Development  jumped 4.4 percent on expectations they would benefit from new investment projects.
 
The main Thai stock index was 0.75 percent higher. On Monday, it jumped 1.8 percent to its highest level since Oct. 31, just before the protests against Yingluck flared up.
 
Prajin is looking at longer-term projects such as the development of economic zones on the borders with Myanmar, Laos and Malaysia, but 30 urgent proposals on the economy will go before military leader General Prayuth Chan-ocha this week.
 
Prajin has told the Finance Ministry to look at a complete overhaul of the tax structure and report to him next week.
 
On Friday, Prayuth said the military would need time to reconcile Thailand's antagonistic political forces and push through reforms, indicating there would be no general election for about 15 months.
 
The United States, European Union countries and others have called for the military to restore democracy quickly, release political detainees and end censorship.
 
The military has banned political gatherings of five or more people. On Sunday, 5,700 troops and police were sent into central Bangkok to stop anti-coup protests, which were mostly limited to small gatherings held around shopping malls.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine Could Be in Use by January

update U.S. Homeland Security says all passengers arriving in US from Liberia, Guinea or Sierra Leone must fly into one of five airports equipped with enhanced screening for Ebola More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid