Thailand Politics

Everything in Terminal 1 at the old Don Mueang Airport remains intact and in good working condition after five years of inactivity during which it has faded from the memories of many travellers.

Key elements of the incoming government's populist policies, particularly the planned increase in the minimum wage and heavy subsidies, are a major concern for companies, as they fear the measures will slow the business sector down over the remainder of the year and during 2012.

Charoen Pokphand Group, the country's largest agro-business conglomerate, said yesterday that it stood ready to increase minimum wages to Bt300 and new graduates' salaries to Bt15,000 in line with the incoming government's policy pledges, in order to drive the country's growth and domestic consumption.

Two food chains under Minor Food Group _ Dairy Queen and Burger King _ aim to expand their businesses faster in the second half of this year to respond to the public's greater spending power.

The Revenue Department is ready to cut the corporate income tax rate, though it is also proposing a rise in the value-added tax (VAT) rate, says Satit Rungkasiri, director-general of the department.

The Thai Consumer Confidence Index (CCI) surged to 81.7 points in June, the highest in four and a half years, with consumers expecting the new government's policies to result in better economic conditions.

Economists are advising the new government to focus more on income distribution, as it is an efficient way to strengthen the country's economic fundamentals.

The Tourism Ministry has prepared a five-year tourism development plan aimed at receiving 30 million tourists and Bt1 trillion revenue per year.

Property developers believe the new government's policies offering special financial packages for first-home buyers will create growth in the property market, but they are waiting to see what conditions might be imposed with the new deal.

Exporters are uncomfortable with the prospect of a strengthening baht, as they want a stable exchange rate to help them keep pace amid tough global competition