Govt won't meddle with BoT policy: PM

Srettha aims to meet gov on weekly basis

The government respects the central bank’s independence and would never interfere with any of its decisions, according to Prime Minister Srettha Thavisin.

However, he expressed his wish to meet the governor of the Bank of Thailand (BoT) on a weekly basis in the hope of improving their work consistency.

Mr Srettha and BoT governor Sethaput Suthiwartnarueput met yesterday at Government House to discuss the central bank’s strategy for raising the policy rate.

The meeting was held after Mr Srettha voiced his opposition to the policy, saying it would cause problems for the poor, as well as for small-and medium-sized businesses.

On Sunday night, he posted on X that the central bank is planning to raise its policy rate.

Speaking after meeting Mr Sethaput, Mr Srettha said he had no authority to interfere with the central bank’s interest management policy.

He said he discussed with the governor the overall economic situation in Thailand, the global economic situation, Thailand’s negative inflation rate, the domestic market, and how people were being affected by all of this.

The PM said he also discussed with the BoT governor the issue of negative inflation, which has been occurring for several months now following the government’s interference in oil and electricity prices — moves carried out with the aim of helping to curb living costs.

“In this regard, I have told the BoT governor that we should meet up over a coffee every week. If he wants me to go to the BoT’s headquarters, it’s okay. I can do that because we need to be in constant communication,” he said.

Mr Srettha, who is also the finance minister, said he did not discuss with the BoT the government’s plans for its 10,000-baht digital money handout scheme as that matter could be discussed later at a meeting of the main parties involved in implementing it.

Pichai Naripthaphan, deputy chairman for strategies and politics of the ruling Pheu Thai Party, meanwhile, elaborated on his recent call for the BoT to come up with more financial policies to help revive the economy, which has been in a sluggish state for years.

Considering the various financial tools at its disposal, the BoT could help support the government’s efforts to revive the economy, he said.

The BoT’s authority to regulate commercial banks is one of these mechanisms, he said.

Public discontent has been rising after it was known that these banks had in the past year netted 220 billion baht in combined profit, while the country’s economic situation was not good, he said.

The BoT could help by better controlling these banks in terms of their profit margins, he said.

In 2020 when the entire country was badly affected by the Covid-19 pandemic and its economic consequences, which resulted in negative 6.1% economic growth, commercial banks here netted 146 billion baht in combined profits, said Mr Pichai.

Most if not all commercial banks in other countries at the same time recorded heavy losses, he noted.

That has raised doubts over the BoT’s efficiency in regulating commercial banks, preventing them from making too much profit and ensuring sufficient access to loans offered by these banks, he said.

Mr Pichai also outlined areas of work the BoT is encouraged to do more to help boost the country’s economic growth.

The BoT should demonstrate to the public what it can do to help accelerate the country’s slow economic growth, tackle the more than 16.5-trillion-baht household debt (90% of gross domestic product), improve the situation of bad debts facing small- and medium-sized enterprises and other problems involving debt.

On top of those things, it must also deal with negative inflation which has continued for three months and now risks become deflationary, and improve the negative value of exports and low liquidity in the country’s economic system, said Mr Pichai.

“I’d like the BoT to offer an explanation as to what it could do to help tackle these problems because it always said everything is going well and the country’s economic engine is going full steam ahead,” said Mr Pichai.

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Land rights upgrade to cover 22 million rai

Agriculture minister insists land reform for farmers will be free of loopholes that nominees could exploit

Land rights upgrade to cover 22 million rai
Agriculture Minister Thamanat Prompow speaks to reporters about the planned issuing of title deeds for agriculture on Wednesday. (Photo: Ministry of Agriculture)

Over 22 million rai covered by Sor Por Kor 4-01 documents, widely known as land rights for the poor, will be upgraded to land title deeds for agriculture within five years, according to Agriculture Minister Thamanat Prompow.

He said the policy would provide the maximum benefits for eligible people, and insisted that there would be no loopholes for nominees to take advantage of.

Prime Minister Srettha Thavisin will kick off the programme by presenting land rights documents to 1,000 holders in Bang Sai district of Ayutthaya on Jan 15.

The ministry hopes to convert the status of 22 million rai of land under its responsibility within five years. The process could go faster if it had a bigger budget, Capt Thamanat said.

Documents for 2 million rai are now ready to be upgraded based on specific conditions, including that the land must have been in the holder’s possession for five years or more.

He said the ministry has come up with extra measures to prevent the illegal possession of land, and that wrongdoers will face criminal charges.

“We are focussing on the screening procedure to prevent the transfer of land to non-eligible people,” he said.

The minister has been a strong advocate of proper title for agricultural land, saying current regulations under the land reform law were out of date and not in line with societal changes.

If people no longer want to farm, he said, they should still have the option to benefitting from the land, including the right to sell it.

The ministry has established three regulations to support the policy, which would grant people the right to sell the land to other farmers or others conducting farming-related businesses.

Capt Thamanat said that more than 200,000 people have registered for the land title upgrade and that the Agricultural Land Reform Office branches in each province are ready to support them.

Some 22 million rai of Sor Por Kor land is now occupied by 1.6 million families.

Sor Por Kor 4-01 papers were introduced in 1975 to give poor landless farmers plots, mostly on degraded forest land, for small-scale farming. The land cannot be sold and can only be transferred to the children or heirs of the holders.

But over the years, many plots have changed hands illegally with the land used for commercial purposes including resorts. In 1995, then-agriculture minister Suthep Thaugsuban was accused of overseeing the granting of Sor Por Kor land to wealthy and connected people in Phuket. The resulting scandal brought down the Democrat Party government of Chuan Leekpai.

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Power tariff capped at B4.20 a unit

Energy regulator reduces variable charge to bring rate in line with what government wants

The Energy Regulatory Commission (ERC) has confirmed a decision to cap power tariffs at 4.20 baht per unit of electricity from this month until the end of April.

The rate is based on a decision to lower the fuel tariff (FT), a variable in the power tariff structure, by 50 satang to 0.3972 baht per kilowatt-hour (unit), ERC secretary-general Khomgrich Tantravanich said on Wednesday.

Electricity generation depends mainly on natural gas which accounts for almost 60% of the fuel used, followed by imported and domestic coal at 20-22%.

The FT charge, based on prevailing fuel prices, currency exchange rates and other variables, is reviewed every four months.

At present the government offers a subsidised power tariff of 3.99 baht per unit for households whose consumption does not exceed 300 units per month.

The government has yet to approve the 4.20-baht tariff proposed by the ERC.

The ERC said earlier that it planned to increase the power tariff to 4.68 baht for the January-April period because of a projected increase in fuel costs and the need to reimburse the state-operated Electricity Generating Authority of Thailand (Egat).

Egat shouldered huge losses after it subsidised electricity bills between September 2021 and May 2023, under a government programme to ease the impact of higher fuel prices on households and businesses.

If the power tariff is capped at 4.20 baht a unit, Egat said it would have a liquidity problem, meaning it would take longer to pay down its debt.

The government has yet to outline how it intends to help Egat resolve its problems.

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King gives royal guidance to children

King gives royal guidance to children
His Majesty the King gives the kingdom’s children royal guidance in a booklet issued for National Children’s Day. (Royal Household Bureau)

His Majesty the King has given the kingdom’s children royal guidance in a booklet issued for National Children’s Day, encouraging them to pay full attention to their studies and training for their own future success and happiness.

 “All happiness comes from working and doing good deeds. Every child should concentrate on their education and fully train themselves to acquire the ability to work and perform good deeds for their own happiness and public happiness in the future,” he wrote.

The booklet was issued on Jan 3, but the royal message not made public until Wednesday.

National Children’s Day is celebrated annually on the second Saturday of January, which falls this weekend.

Copies of the booklet, which also contains other advice, will be distributed nationwide. The book is published every year by the Ministry of Education.

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7,000 addicts to enter new rehab scheme

Drug users who are mentally ill will be admitted to two-stage care programme

7,000 addicts to enter new rehab scheme
A man works on a craft project as part of a vocational training programme at a drug addiction rehabilitation centre in Phunphin district of Surat Thani province. (Photo: Wichan Charoenkiatpakul)

More than 7,000 addicts with mental conditions caused by illicit drug use have been identified and will be brought into a rehabilitation and stabilisation programme, according to the Office of the Narcotics Control Board (ONCB).

A survey was conducted to determine the number of people needing help, said Pol Lt Gen Phanurat Lakboon, the acting secretary-general of the ONCB.

Those identified in the survey will be admitted for treatment and into rehabilitation facilities, known in Thai as Rakjai centres, before they are referred to mental health institutions, he said on Wednesday.

The Rakjai facilities, located in Nakhon Ratchasima, Prachin Buri, Ubon Ratchathani and Kanchanaburi provinces, are jointly operated by the ONCB, the Ministry of Public Health and military personnel who have been trained to work there.

Pol Lt Gen Phanurat said a stabilisation programme will also be provided for those who have been treated but require continued medical care and support so they can focus on their recovery without triggering factors.

It is designed for those whose families or communities are not ready or equipped to provide them with the degree of care they need.

He said the military would discuss where the facilities for the stabilisation programme would be set up. Initially they have been planned in Khon Kaen, Ubon Ratchathani, Udon Thani, Nakhon Ratchasima and Nakhon Phanom.

The military will provide staff while the Ministry of Public Health will provide training and make sure the facilities meet the required standards, he said after a meeting with representatives of the ministry and the police.

The ONCB will also hold discussions with the Interior, Labour and Social Security and Human Development ministries about occupational training to prepare those being treated for reintegration into society.

Defence Minister Sutin Klungsang said those who are admitted to the Rakjai centres will be there on a voluntary basis, and they will be provided occupational training.

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Unused navy land being transferred to poor next month

Unused navy land being transferred to poor next month
Defence Minister Sutin Klungsang visits a navy unit in Samut Prakan on Wednesday. (Photo: Wassana Nanuam)

Some state land currently used by the military is being transferred to the poor, starting with 3,918 rai of navy land next month, Defence Minister Sutin Klungsang said on Wednesday.

He was speaking while visiting  a navy unit in Phra Samut Chedi district of Samut Prakan. following up on  progress in policy implementation.

Mr Sutin said the Pheu Thai Party had promised voters during past election campaigns that it would find land for the poor, so they could make a living. 

This policy was being implemented by transferring to the poor degraded forest land and unused state land currently allocated to the military, the minister said. The military land actually belonged to the Treasury Department.

Poor people would be given the land-use rights and become tenants of the Treasury Department, Mr Sutin said. They would be able to transfer these rights to their descendants in perpetuity, the defence minister said. He promised to keep the rent low.

The navy was the quickest of the armed forces to respond to the policy, Mr Sutin said. It would hand back its rights to 3,918 rai of land in Phra Samut Chedi district next month, the minister said.

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Srettha ‘just explained’ rate view to BoT

‘No power to interfere’ in decisions, PM says after meeting with central bank chief

Srettha ‘just explained’ rate view to BoT
Prime Minister Srettha Thavisin speaks to reporters at Parliament prior to the budget debate in the House of Representatives last week. (Photo: Nutthawat Wichieanbut)

Prime Minister Srettha Thavisin says he “just explained” his views on interest rates but gave no orders during a highly anticipated meeting on Wednesday with the head of the Bank of Thailand.

“I have no power to interfere” in rate decisions, Mr Srettha told reporters after his talks with central bank governor Sethaput Suthiwartnarueput.

“The BoT is an independent organisation. I haven’t ordered. I just explained the situation.”

The talks came two days after Mr Srettha, who is also the finance minister, publicly urged the central bank to start cutting borrowing costs following months of negative inflation.

The discussions covered interest rates and the economic situation, Mr Srettha said. He acknowledged that the meeting was in no way an exercise to reduce the central bank’s autonomy. 

There was no immediate response from Mr Sethaput, but the BoT has scheduled a briefing on Monday to explain its policies. 

Mr Srettha said he explained to Mr Sethaput the current economic situation. Southeast Asia’s second-largest economy has been staging the region’s slowest recovery post-pandemic, while inflation has been in negative territory for three straight months through December amid signs of waning demand.

The baht was little changed on a day when most major Asian currencies were down versus the US dollar.

While Mr Srettha believes that cheaper borrowing costs are needed to boost credit demand, and in turn economic activity, the BoT has in the past maintained that the deflationary trend is a result of state subsidies, most notably for electricity and fuel, and is not an accurate reflection of falling consumption. 

The central bank paused its tightening campaign in November after eight straight rate increases totalling 200 basis points to a decade-high of 2.50%.

It will hold its next meeting on Feb 7 but so far has not signalled any readiness to start reducing interest rates.

“We maintain our forecast that the BoT will keep the policy rate on hold for the foreseeable future,” said Standard Chartered Bank economist Tim Leelahaphan. “However, we believe risks are increasingly skewed towards a cut in 2024.”

Mr Srettha also said on Wednesday that he would brief the central bank head about the government’s proposed economic stimulus programme at a separate meeting.

Mr Sethaput has expressed some reservations about the 500-billion-baht digital wallet programme, the cornerstone of the government’s stimulus plan.

The economy is forecast to expand by 3.2% this year, up from an estimated 2.5% in 2023, according to the World Bank. Mr Srettha wants to lift that pace to 5% during his term.

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Police say they have identified gold shop robber

Police say they have identified gold shop robber
Forensic officials work the crime scene at the Siriporn gold shop in Tha Sala district, Nakhon Si Thammarat on Tuesday afternoon. (Photo: Nujaree Rakrun)

NAKHON SI THAMMARAT: Police have identified the armed man who robbed a gold shop in Tha Sala district of necklaces worth about 500,000 baht on Tuesday, and investigators have applied for a court arrest warrant.

A police source named the suspect as Chaiwut Wethayawong, 54, and said he is being actively sought. 

Pol Maj Gen Somchai Suetortrakun, chief of Nakhon Si Thammarat police, on Wednesday inspected the crime scene in Tha Sala district.

Police have already found the motorcycle believed used in the holdup, at a house in tambon Talingchan in Tha Sala district. Clothes matching those worn by the robber were also found there, the suspect was not.

The Siriporn gold shop in downtown Tha Sala district was heldup on Tuesday afternoon. Security camera recordings showed a lone robber wearing a crash helmet entering the shop around 2pm. He threatened employees with a gun before making off with three gold necklaces totalling 15 baht-weight.

He fled on a motorcycle in the direction of Sichon district.

It was the second gold robbery in the district this month.  In the first, a lone man heldup a gold shop inside a Tesco Lotus superstore and made off with two necklaces weighing 6 baht in total. Police took less than one hour to arrest the robber, named as Supanat Phathong, 24.

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Draft bill on cannabis control not finished, says Cholnan

Draft bill on cannabis control not finished, says Cholnan
Health officials inspect a cannabis shop on Khao San Road in Bangkok. (Photo: Pattarapong Chatpattarasill)

The drafting of the new cannabis and hemp control bill is still not complete and it has not yet been forwarded to the cabinet for approval, Public Health Minister Cholnan Srikaew said on Wednesday.

Dr Cholnan said what he earlier forwarded to the cabinet was the ministry’s views on the bill and on cannabis, after MPs sent a letter to Prime Minister Srettha Thavisin saying it was financial legislation. The  prime minister’s secretariat then asked the ministry for its views.

He said the drafting of the cannabis legislation was expected to be finished next week.

He was speaking after advocates of cannabis legalisation criticised his decision to endorse the draft bill   without consulting the civil sector, as he had earlier promised.

Dr Cholnan was firm in his belief that cannabis should be used only for medical purposes, as the prime minister said in his policy statement to parliament. The legislation was being drafted to support this principle.

Cannabis extracts that contained more than 0.2% tetrahydrocannabinol (THC) would be classed as a narcotic, Dr Cholnan said.

Existing cannabis shops were allowed to open as they were granted permission to operate as business establishments, he said. The planned bill would focus on controlling misuse of cannabis.

Sa-nga Ruangwattanakul, president of the Khao San Road Business Association, said cannabis was one reason foreign tourists chose to visit Khao San Road, in order to experience the taste, because Thailand was the only country in Asia where cannabis was not listed as an illegal drug.

Cannabis shops on Khao San Road could generate 20-30 million baht in revenue a month, Mr Sa-nga said.

“Khao San Road is considered a top 10 tourist destination in Thailand, one that foreign tourists should not miss. Aside from its entertainment venues and restaurants, cannabis is another draw card,” Mr Sa-nga said. If cannabis was restricted to medical use only, it would greatly affect cannabis shops in tourist areas.

He said the government should declare zones for cannabis, such as tourist areas. 

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House panel to visit hospital but meeting with Thaksin uncertain

House panel to visit hospital but meeting with Thaksin uncertain
Former prime minister Thaksin Shinawatra greets supporters on arrival at Don Mueang airport on Aug 22 last year. (Photo: Pattarapong Chatpattarasill)

Members of the House committee on police affairs will on Friday visit the Police General Hospital but it is still uncertain if they will be able to see its most high-profile patient, convicted former prime minister Thaksin Shinawatra.

Committee chairman Chaichana Detdecho said on Wednesday that the hospital had approved the visit, which was timed for 10am on Friday, as requested.

The hospital management agreed to let the committee inspect the sixth floor of the Sriyanont Building and meet a police colonel who oversees the hospital’s operations, he said.

Thaksin was reportedly admitted to the 14th floor of the hospital’s Maha Bhumibol Rachanusorn 88 Phansa Building on Aug 22 last year.

According to Mr Chaichana, the House committee will ask about service standards for prisoners and seek information on all admitted inmates including Thaksin, to see if he was being treated the same as the others. The cost of medical treatment for admitted inmates is met by the National Health Security Office, he said.

“Degrees of illnesses cannot be made public, but we must know about the kinds of illnesses, the number of inmates admitted to the hospital and the services it provides them,” Mr Chaichana said. “We will see how much permission the Police General Hospital allows. Can we meet the inmates in person, or see them by CCTV?” 

Former MP Niphit Intharasombat has meanwhile suggested that the National Anti-Corruption Commission should investigate the government officials responsible for Thaksin’s treatment outside prison. If it does not do so, then people should ask the president of the Supreme Court to appoint independent investigators to do the job, he said.

Thaksin, 74, returned to Thailand on Aug 22 after 15 years of self-exile and entered the justice system. He had been convicted and later sentenced in absentia for corruption and abuse of authority while in office prior to the military coup in 2006. He was taken to court that same day and sentenced to eight years in prison, later reduced to one year by royal clemency.

The former premier was immediately admitted to Bangkok Remand Prison and later that night moved to the Police General Hospital for “medical reasons”, and reportedly has been there ever since.

By law, the minister of justice must acknowledge any stay exceeding 120 days by an inmate receiving medical treatment outside a prison hospital. That deadline passed on Dec 21. 

The acknowledgement must be based on a report from the chief of the Department of Corrections.

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