BANGKOK: Thailand’s Finance Ministry is seeking fresh stimulus measures to offset the slowdown in activity during the mourning period and ward off downside risk in the fourth quarter. The measures, however, will not oppose the feelings of Thai people at the moment, said permanent secretary for finance Somchai Sujjapongse. Finance Minister Apisak Tantivorawong has told his ministry to explore additional measures to maintain economic momentum during the three months to December.
The Finance Ministry will continue to push promotions to ramp up private investment next year. The ministry has forecast GDP growth of 3.3 percent this year. Mr. Somchai said Mr. Apisak had ordered him to monitor business sectors that may be hit during the mourning period. The service sector, including exhibition centers, hotels and entertainment, would be affected as it would not be appropriate to hold any celebrations, he said, adding that the impact would be temporary and not significant. But officials must monitor and seek ways to help those that are affected if the impact turns out to be long term.
Commenting on the effect on the capital market, he said that the situation had become stable after the recent wild ride. The local stock market last week experienced a roller coaster, dipping below the 1,400 mark during intraday trade from 1,504.34 points at the market close on October 7. The SET index clawed back more than 70 points or five percent on Friday from last Wednesday’s close at 1,477.61 points.
Given the high volatility of the capital market, the Finance Ministry has instructed specialized financial institutions to prepare for any emergency in case the financial market faces chaos or a liquidity crunch. The Bank of Thailand has also ordered commercial banks to prepare plans for any uncertainty that might occur, he said, adding that turmoil is not expected. The government has set up a center chaired by Prime Minister’s Office Minister Suwaphan Tanyuvardhana to monitor the daily situation.
