Foreign confidence returns as Government press ahead with reform plan

The situation in Thailand, in particular Bangkok, has returned to normalcy. The use of the Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (2005), announced last April pursuant to the protests by the United Front for Democracy against Dictatorship (UDD), was completely lifted on 22 December 2010. Despite the political situation, during 2010 the confidence in Thailand of foreign businesses and visitors has quickly been restored, as reflected in various indicators. Last year, the Thai economy grew by almost 8 per cent and the country’s exports by 28.1 per cent with US$ 12.9 billion trade surplus. In terms of foreign direct investment, the number of the projects applying for investment privileges from the Board of Investment increased by 9.9 per cent from 788 to 866, despite a decrease in their value. More than 15.8 million foreign visitors arrived in the country – an 11.96 per cent growth compared to 2009.

Meanwhile, the reconciliation and reform processes which the Royal Thai Government initiated last May are moving forward. On 1 and 9 January 2011, Prime Minister Abhisit Vejjajiva announced a set of measures under the Thailand’s reform plan to address issues related to economic and social disparities, formulated on the basis of “putting people first.” Aiming at creating opportunities and empowerment and providing welfare and security, particularly for those in the poorer segments of the society and those in the informal sector, these measures will address such issues ranging from the cost of living, childcare, healthcare, alternative education, skills development and quality of teachers, to access to credit for people in the informal sector such as taxi drivers and street vendors, provision of housing and expansion of the coverage of the social security system. Other reform measures to be implemented include a programme to enable people at the community level to have easier access to legal services and further actions to address crimes, such as utilization of CCTV technology and promotion of cooperation between the police and local volunteers. The Government’s undertaking in this regard is done in parallel to the on-going work undertaken by the National Reform Committee, chaired by former prime minister Anand Panyarachun, and the National Reform Assembly, chaired by Dr. Prawes Wasi.

Progress has also been made with regard to political reform and constitutional amendment. On 25 January 2011, the Joint Sitting of the House of Representatives and the Senate voted to adopt in the second reading the proposed draft amendments of the Constitution to amend the election system for members of the House of Representatives and to specify more clearly which international agreement require parliamentary approval. These are based on two of the recommendations submitted to the Cabinet by the Constitutional Reform Committee, and will pave the way towards holding of the next general elections. The third and final reading of the amendments is expected to be held in February 2011.

Be that as it may, there may continue to be political rallies, which are normal in a democratic society. The Royal Thai Government attaches great importance to the safety of the public, Thai and foreign alike. In this regard, security agencies will continue to monitor the situation and implement measures to ensure safety and security both of the public and those participating in these gatherings. It should also be noted that foreigners have never been targets of such activities.

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26 January 2011