Thailand Politics

American auto-maker General Motors (GM) is concerned that the new automobile excise-tax structure will not serve as a level playing field for all manufacturers.

Financial experts are not concerned about the impact of capital inflows, as they are confident the domestic financial system is capable of accommodating high liquidity.

Foreign business leaders are hoping for more political stability after Thailand's general election while calling on the new government to promise more consistent policies and open up the economy.

The London Stock Exchange is urging Thai companies to sek a listing on the international bourse, said Securities and Exchange Commission Secretary-General Thirachai Phuvanatnaranubala.

LPN Development is expected to be a prime beneficiary of a government plan to offer zero interest loans for first-time homebuyers who purchase properties costing below Bt3 million, said DBS Vickers Securities (Thailand).

Thailand, Malaysia and the Philippines will be adversely affected if crude-oil prices reach the critical level of US$130 per barrel this year, the United Nations Economic and Social Commission for Asia and the Pacific (Escap) says.

As expected, the Cabinet quickly approved the huge Bt66-billion budget for its populist policies with the hope of winning majority support in the next general election.

The Bank of Thailand expects an eventual balance between capital inflow and outflow this year, with such a position likely to be even more clearly seen next year.

Food prices are expected to rise on growing demand from catastrophe-hit Japan and more frequent natural disasters cutting the supply of ingredients.

The new government should focus more on tax restructuring, as it is the key to maintaining fiscal discipline amid greater need for infrastructure investment and spending on social programmes, economists say.