Analysts: China’s property stock surge unsustainable – Asia Times

The long-awaited rally of Chinese property shares this month has sparked cheers from stock investors, but analysts warn that the upsurge wo n’t be sustained over the medium term. &nbsp,

Reason: The People’s Bank of China ( PBoC )’s ( PBoC ) proposed home purchase scheme is too small and wo n’t be able to reverse the market’s declining trend.

Analysts predict that property developers ‘ profitability wo n’t improve over the next six months, and that their shares will once again be under pressure. They claim to be bullish on other stocks because the Chinese economy’s weak domestic consumption continues to be the biggest issue.

Asia Times interviewed Arthur Budaghyan, key emerging markets and China planner of BCA Research, a Canada- based funding research organization, to find his take.

” Four to six months from today, Chinese home companies will probably be lower than yesterday’s level”, Budaghyan said. ” Over the medium term, elements will prevail, but in the short term, stock areas can be unreasonably driven by some false beliefs,” the statement goes.

He claimed that the Chinese government has been working to stimulate the economy and property markets for two and a half decades, but the work has failed. For example, he said, the government decided in late 2022 to provide 1.88 trillion yuan ( US$ 259 billion ) funding to property developers to complete unfinished apartments but the move failed to boost property prices and sales.

He claimed that the funding for local governments ‘ purchases of unsold houses from the industry is very little in comparison to property developers ‘ total profits in 2023.

Exceptional housing stock&nbsp,

In a bid to lower property inventory in the market, the PBoC announced on May 17 that it would establish a global program to launch a low-cost 300 billion yuan funding program.

The central bank will provide loans to national banks to protect 60 % of the scheme’s borrowing, which means that the banks will have to provide SOEs with another 200 billion yuan, increasing the total to 500 billion renminbi.

However, the number is just equivalent to 4.3 % of China’s home selling number, which was about 11.66 trillion yuan in 2023.

Does the new cash bring the housing market back to its former glory days? Almost certainly not”, Harry Murphy Cruise, an analyst at Moody’s Analytics, says in a study word. Given the size of empty stock, the 300 billion yuan money is a drop in the ocean.

According to estimates, the value of China’s remarkable housing stock has increased by more than 7.5 trillion renminbi since 2018. He claimed that only 4 % of that is funded by the new package.

He continued, saying that Chinese officials appear to have only attempted to decrease the property firm’s decline and bide until it finds a floor naturally rather than attempt to return to its former glory days.

This month, the stocks of many Chinese property developers have already more than doubled. On Wednesday, Shimao Group rose 5 % while China Vanke increased 4 %. &nbsp, &nbsp,

Low fertility level

Beijing, according to experts, wants to regulate the housing markets while avoiding rising house prices, which would lessen the desire of young couples to have children. &nbsp,

In January, the NBS said China’s populace amounted to 1.409 billion at the end of last year, down 2.08 million people from a month earlier.

That was the second time in a column for China to recorded recession in people, after the number dropped by 850, 000 in 2022 from 2021. &nbsp,

” China’s fertility rate is one of the lowest in the world, also lower than that of Japan and Italy”, Budaghyan told Asia Times. ” Young folks say properties are very expensive. The statistical situation will get worse if the government increases home charges right away.

He claimed that the Chinese government wants to lower home costs so that couples can afford to purchase a more luxurious room and have one or two kids. &nbsp,

” The Taiwanese government has a much longer time perception and wants to target on&nbsp, populations, rather of boosting home prices. That’s why it has not been very violent in rousing rates”, he said.

Some home experts believe that it’s possible to quickly raise property prices by removing home purchase restrictions in first-tier cities like Beijing and Shanghai, but it’s unlikely that the main government will do it.

Debate settlement

Former Hong Kong banker and academic Victor Ng Ming-tak claims on his YouTube channel that the government’s incentives wo n’t help increase the profitability of property developers. &nbsp,

He makes the observation that the PBoC’s residence purchase program appears to be a financial settlement plan intended to settle disputes between consumers and property developers. &nbsp,

” Three years ago, millions of people had threatened to stop paying their mortgages because apartment building designers lacked quality rooms. He claims Beijing agreed to give home developers loans to complete their projects. However, these homebuyers now object to receiving their homes because their price has fallen by 30 %.

He claims that these consumers can now be tenants of the properties under the house purchase program, avoiding a 30 % decrease in home value, while local governments will collect their revenues to pay off bank loans. &nbsp,

” For a deal does not help house developers to create income”, he says. Why are their stock then rising so quickly? He advises property investors to get ready to make the benefits in the current bear market at some point. &nbsp,

” We expect China’s latest assistance measures to help relieve some small- term pressures in the housing market, helping to clean the sector’s deleveraging and minimize structural risks”, Kelly Chen, a vice president and senior analyst at Moody’s Ratings, says in a research note. A” significant and sustained progress in contracted sales for new properties” is unlikely to be sparked by looser loan regulations.

She claims that some local governments ‘ contingent liabilities will increase as a result of the home purchase program’s potential rise in debt for state-owned local governments as a result of its potential to raise debt to buy from property developers ‘ empty stock.

No plane money

In March, Budaghyan published a research report titled” No Game Changer” after the Chinese government announced a 5 % GDP growth target for 2024 during the annual meeting of the National People’s Congress. &nbsp, &nbsp,

Without some significant impulses, he said, China will face a lot of difficulties in achieving its 5 % growth goal. &nbsp,

He claimed for the Asia Times that he still believes that due to a decrease in property sales earnings, the Chinese administration’s spendings in 2024 will fall short of the budgeted amount. &nbsp,

He claimed that it’s simple to use helicopter money to boost the economy, but he did n’t believe the Chinese government had that mindset. ” If things get really bad, it will do it”.

He added that Beijing also wants to avoid quantitative easing, which would put pressure on the Chinese currency. &nbsp,

Read: China unveils property stimuli amid falling sales

Follow Jeff Pao on X: &nbsp, @jeffpao3

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PM warns of recession risk, seeks new ideas

Rettha calls for new regular meetings to come up with ideas for reviving the sluggish economy.

PM warns of recession risk, seeks new ideas
Srettha Thavisin, the prime minister, makes an official visit to Japan that may end on Friday at Haneda Airport in Tokyo on Wednesday. ( Photo: Thai Khu Fah Facebook )

Prime Minister Srettha Thavisin stated on Wednesday that the market is at risk of a recession given the slow GDP growth, higher home debts, and burgeoning bad debts.

Mr. Srettha, who is currently traveling in Japan, announced he would lead an urgent meeting of the economy’s officials and other related bodies on Monday to come up with fresh ideas to revitalize the business.

He said the particular sessions will be held weekly for the near future, stressing the need to generate fresh ideas.

The National Economic and Social Development Council ( NESDC ) announced the move after the first three months of its report of economic growth of only 1.5 % year over year.

The state planning agency now anticipates a year-long increase in gross domestic product ( GDP ) growth of between 2 % and 3 %, which is slightly below its previous projection of 2.2 % to 3.2 %. Last year’s growth was 1.9 %.

The NESDC said the upgrade is a result of higher amounts of physical danger, particularly trade protectionionism, growing political conflicts, and increased volatility in the world economy.

Thailand’s growth in the first quarter was slower than that of six other Association of Southeast Asian Nations ( Asean ) members. The Philippines and Vietnam led the pack, at 5.7 % each, followed by Indonesia ( 5.1 % ), Malaysia ( 4.2 % ) and Singapore ( 2.7 % ), according to NESDC figures.

” GDP grew by just 1.5 %. Without the support and tourism industries as pads, we would now be at risk of a crisis”, said Mr Srettha. ” There is also credit card debt, bad debt and house debt]that needs to be addressed ]”.

When asked if the government was thinking about taking any quick-term measures to boost the economy, he replied,” That’s why the meeting of financial officials will be held. However, the meeting wo n’t present any unexpected project at this time.

” From now on, for meetings may be held every year. I want to hear ideas from anyone, including those working in foreign trade, agriculture, and law.

The discussions had been held regularly on Mondays, according to government official Chai Wacharonke.

According to the official, the president’s 500 billion-baht digital budget handout is one of the crucial steps to quickening the economy.

On Tuesday, the government approved a plan to increase the resources for the 2024 fiscal year, for 3.48 trillion ringgit, to help fund the plan.

Finance Minister Pichai Chunhavajira stated that the extra amount would be decided this month, but it should not reach the 122 billion ringgit that the Budget Bureau had previously indicated, which may raise the funds for 2024 to 3. 6 trillion baht.

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Lawyer Arm faces rape charges

Lawyer Arm faces rape charges
On Monday, authorities in Songkhla territory made the arrest. ( Police photo )

Phongsathon Suwannaraksa, a well-known attorney known for helping victims of physical abuse, has been detained for reportedly raping and blackmailing one of his own customers.

The 26-year-old assault victim is said to have experienced melancholy as a result of the alleged rape and attempted suicide by jumping off the board of HTMS Chakri Naruebet in Chon Buri on November 22, 2013, in an attempt to kill herself. She was soon rescued.

Mr Phongsathon, 34, better known as Lawyer Arm, was arrested by the Metropolitan Police Bureau ( MPB) police in Songkhla, his hometown, on Monday. He was charged with rape using power, which he denied, and insisted it was lawful sex. &nbsp,

” It was completely lawful. I will certainly get this case]countersuit]. If I lose, I will stop being a solicitor”, said the presume upon his arrest on Monday

He added that he has filed lawsuits against the person for trying to extort money from him and falsely reporting to the police against him.

The attorney has also submitted a petition to the National Anti-Corruption Commission against police officers at Don Muang police place who are looking into the murder case against him.

After surviving the suicide attempt from last year, the woman claimed to have been depressed and that she had told the MPB researchers that the prosecutor had threatened her.

She claimed to have met him in 2022 when she needed legal assistance in a lawsuit against a colleague who had refused to pay a 100, 000-baht loan. The attorney at the time ran for re-election on the Kla Party’s seat in Songkhla, but he lost.

The girl claims that the attorney raped her and invited her to what he claimed was a party organized by Kla in Bangkok. She claimed that after the tragedy, he began blackmailing her.

In the Bangkok district known as Don Muang, she afterwards made the decision to charge him with rape. The police authorities were subsequently sued by him, who later brought countersuits against her.

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Thai call centre gangsters arrested in Cambodia

Thai call centre gangsters arrested in Cambodia

Twelve Thai call centre scam gang suspects, including their leader, have been arrested at their base in Cambodia, the Royal Thai Police’s Cyber Crime Investigation Bureau (CCIB ) said on Saturday.

Pol Lt Gen Worawat Watnakornbancha, the CCIB director, said the group was arrested simultaneously by CCIB Division 2 and Thai police. The Criminal Court issued arrest warrants for each of the 15 people.

The procedure, nicknamed” Hang Up”, arrested 12 members aged 21–35, including the president identified as Pathipan or A- Ching, 21, at the bottom in O Smach City in Oddar Meanchey state, near the Thailand borders of Surin province.

Authorities are still looking for the other three people who managed to flee the field, according to Pol Lt. Gen Worawat.

One target reported being duped by the group, and the analysis started. According to Pol Lt. Gen. Worawat, this victim allegedly transferred funds to the group several times, resulting in a complete decline of 2.37 million ringgit in savings.

According to the research, the crew had made at least 1 billion ringgit in revenue from schemes each year, with most of their sufferers being retirees.

For the tips, Pol Lt. Gen. Worawat claimed that the crew had created roles for role-playing roles as bankers, police officers, and advisers.

The victim had an unidentified credit card debt, so the lender made the claim that the first visit was from a lender from Tak province to alert her to money laundering.

If the sufferer denies the claim, the scam instructed the sufferer to call the Tak officers and provided a Line ID for quick communication. The fictitious police demanded that the target transfer funds to an investigation team. If the victim was anxious, another call may be made to convince them of the secure transfer.

Thai citizens had filed a complaint with the Royal Thai Embassy in Phnom Penh about being conned into working as con users, according to Pol Lt. Gen. Worawat, who is currently in charge of Thai officers.

Prior to the arrest activity, four subjects who worked for the group had already been rescued.

All the defendants admitted the violence, saying they worked under Mr Pathipan. The crew chief punished them literally, including administering energy surprises, if their staff failed to make 20 million baht a month, said Pol Lt Gen Worawat.

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Maybe it’s time to move on

Maybe it’s time to move on
Cholnan: Pride trampled on?

Three devoted Pheu Thai Party soldiers have been left out in the cold thanks to the most recent case change, known as Srettha 1/1.

According to an observer, two chose to suffer the loss of their faces in silence, while the other refuses to accept the shame lying over.

The greats shown the door were Dr Cholnan Srikaew, who was replaced as public health secretary, Puangpet Chunlaiad, who lost her post as Prime Minister’s Office minister, and Chaiya Promma, who was deputy agriculture minister.

Following the reshuffle, Mr. Chaiya wasted no time yuttling a salvo at Pheu Thai and yutta warning that it was inappropriate to let the axe fall on him, with the Move Forward Party ( MFP ) snatching up the party’s sleeve for dominance in national politics.

No one else could better reflect Pheu Thai’s northern electors in the case, according to Mr. Chaiya.

Pheu Thai defeated the MFP with about 5.11 million votes in the Northeast despite their unexpected battle at the previous election in its enclave in the north. The MPs in Pheu Thai’s district prevented the MFP from wooing citizens, which was credited with this success.

Mr. Chaiya, an MP for Nong Bua Lam Phu and one of Pheu Thai’s most well-known officials in the Northeast, claimed it was district MPs like him who worked tirelessly to safe and keep the redoubt in the Northeast. This was done so that list prospects may use their reputation to run for office.

Mr. Chaiya warned that the MFP is quickly catching up with the major opposition party in areas where it was originally in the lead in several elections and is giving Pheu Thai a run for its money.

He noted that while winning in some constituencies in the general election next year, the MFP had little to do with regular campaign ads.

He claimed that it was high time the ruling party looked inside and discovered how to best prepare and formulate new strategies for the upcoming standard vote less than four years from today.

He said that it is wrong to sideline hard-working and devoted MPs who have tough devotion to their constituencies.

” Do n’t forget that Pheu Thai has been given a chance by Isan]northeastern ] voters many times already.

What does the group have to offer in exchange for their unwavering help, the question is today. “he said.

While Mr. Chaiya expressed his frustration, a communication lamenting Dr. Cholnan’s removal from the cupboard had trampled on his pride circulated on social media.

The message was posted on the day before the most recent cabinet appointments took effect on the Mor Cholnan FC Mai Mee Drama ( Dr. Cholnan’s Fan Club, No Drama ).

A profile picture of a Dr. Cholnan image that was allegedly operated by Dr. Cholnan’s long-standing followers was posted to the site. A comment next to the photo claimed that the original public health minister had been abandoned and discarded while others ruthlessly searched for power.

It was shared frequently, although access to the Social blog’s comment box was restricted.

At the same time, some social critics were candid about Dr Cholnan’s resignation.

They claimed that Dr. Cholnan previously demonstrated leadership skills despite having led the Pheu Thai Party, which explains why he had been exempt.

Jittakorn Bussaba, a political scientist and well-known journalist, claimed on the Naewna website talk program that despite having been given the Pheu Thai command, he continued to be in the shadow of Paetongtarn, the head of the Pheu Thai Family, a position that is believed to have been created specifically for her.

Dr. Cholnan has then taken over as Pheu Thai president as the youngest child of paroled former top Thaksin Shinawatra, who is believed to still have a lot of influence in Pheu Thai.

The group, according to Mr Jittakorn, showed little respect for Dr Cholnan as its leader. The fact that the party did not even choose him among the three applicants for prime minister in the previous election served as an example.

The three are now Prime Minister Srettha Thavisin, Ms Paetongtarn, and Chaikasem Nitisiri, who held no major party article at the time of his candidacy.

While Dr. Cholnan was standing next to her, with his head bent forwards and his fingers clasped in front of him, during the election campaign, Ms. Paetongtarn spoke on stage and at gatherings while” with her head held high and her again straight” and” with her head held high and her again straight.”

The critic suggested that Dr. Cholnan may consider leaving Pheu Thai if he believes the organization is not treating him fairly and should support the Bhumjaithai Party, which has been seeking to strengthen in Nan, where Dr. Cholnan has been elected numerous times.

Dr Cholnan, he suggests, may come where he might be appreciated.

waiting for holes to shape

Following new maneuvers by the ruling party that could stress connections between two partnership partners, political observers are then monitoring the possibility of a broken within the Pheu Thai-led partnership.

Anutin: Wary of plant are- listing

One is Prime Minister Srettha Thavisin’s contact for the change in the legal standing of cannabis. The Bhumjaithai Party, which effectively advocated for legalizing marijuana during the prior administration, is not in favor of the premier’s position.

The flower was delisted in 2022 as a Category 5 opiate, except extract containing more than 0.2 % THC, the substance that creates the psychedelic result.

However, decriminalization without extensive laws to regulate and control its use sparked a public outcry and concerns about its use, misuse, and potential long-term effects.

Pheu Thai and the Democrat Party claimed that the proposed rules were too weak, and Bhumjaithai sponsored a cannabis power bill that was shot down in its second studying in congress.

Common health regulations as well as the medicinal plant law, which do not sufficiently support all cannabis uses, now make it possible for people to use cannabis for clinical and research purposes.

Pheu Thai announced during the campaign leading up to last year’s election that it did not support cannabis liberalization and that it would fight against illicit drug abuse.

Eight months after taking office, Mr. Srettha demanded that a May 8 meeting be held to discuss the issue of narcotics be held in the Ministry of Public Health, stating that the decision was in the public’s best interests.

Anutin Charnvirakul, the leader of Bhumjaithai, the minister of interior, Somsak Thepsutin, and Tawee Sodsong, the justice minister, were among those present at the meeting.

Mr. Somsak was “unable to wait to complete it.” ]PM Srettha Thavisin ] has given the ministry until the end of this year to reclassify cannabis as a narcotic, “he said”. The sooner, the better,” said Mr Somsak.

Mr Anutin, who served as public health minister in the Prayut Chan- o- cha administration, was apparently cautious about Bhumjaithai’s stance on the reclassification issue.

The Narcotics Control Board had approved the marijuana use as a narcotic, and he was the only person who could object to that decision at the meeting.

Political watchers view Mr Srettha’s move on cannabis as damaging to the Bhumjaithai Party, especially considering the prime minister’s” people’s interest “remark.

This could be seen as implying that the coalition partner’s cannabis policy was ill- thought- out and driven by personal interests, they noted.

Olarn Thinbangtieo, a lecturer in political science at Burapha University, told the Bangkok Post that Pheu Thai would win over the public if it reinstated marijuana on the drug list.

After seeing its popularity decline consistently over the past few months, he predicted that the ruling party will win some points with this policy.

According to Mr. Olarn, Mr. Srettha’s actions may also lead to rifts with the United Thai Nation ( UTN) Party, which saw one of its ministers resign the cabinet just days after the reshuffle.

He was referring to Krisada Chinavicharana, who resigned as the country’s deputy finance minister due to the work arrangements made by Pichai Chunhavajira, who had just been appointed. The Public Debt Management Office’s responsibilities fell to Mr. Krisada.

Mr. Krisada claimed in his letter of resignation that the media misled him because he and Mr. Pichai had a different work philosophy and that Mr. Pichai had not treated him with respect when they collaborated.

Due to the fact that he was from a different party, the division of responsibilities was widely seen as a ruling party’s move to lessen the role of the deputy minister in the Finance Ministry, which is the main component in the implementation of the digital wallet scheme.

The tension will likely grow even more so after Energy Minister and UTN leader Pirapan Salirathavibhaga asked for the relief measure, especially given Mr. Srettha’s refusal to allocate funds from the government’s central budget reserves to alleviate the hardship caused by high energy prices.

The prime minister has requested that the state’s Oil Fuel Fund be used to stabilize oil prices, and that if it runs out, the central budget reserves be used to replenish it. The Oil Fuel Fund reported that as of May 5, Mr. Pirapan’s situation caused legal issues because it was 109 billion baht in the red.

There is a chance that Bhumjathai and UTN could face a backlash from their own supporters because of the ruling party’s actions. According to Mr. Olarn, it is possible that Pheu Thai’s coalition parties will withdraw their support for the digital wallet scheme in retaliation.

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China unveils property stimuli amid falling sales – Asia Times

After falling in house sales and purchase in the first four months of this year, China released an extraordinary bundle of measures to encourage homebuyers to enter markets on Friday. &nbsp,

The People’s Bank of China ( PBoC ) said it will establish a nationwide program to unleash 300 billion yuan ( US$ 41.5 billion ) in cheap funding to help state- owned- enterprises ( SOEs ) buy unsold homes.

The minimum down payment ratios for first-time purchases were reduced from 20 % to 15 %, and second-time purchases were reduced from 30 % to 25 %, according to the PBoC and the NFRRA. &nbsp, &nbsp,

Additionally, it stated that first and second home loan rates will be abolished nationwide at the lowest rate possible. &nbsp,

According to the central bank, central bank branches is then set lower mortgage rates in accordance with local circumstances. Financial corporations should set the minimum borrowing costs based on their business climate and customer threats, it remarked.

From May 18, the PBoC may also reduce the mortgage rates of the individual accommodation retirement account, a long-term cover savings plan made up of required regular deposits by both employers and employees, by 0.25 percentage points.

Stocks of the Hong Kong-listed Chinese engineers increased on Friday after many of them more than doubled in value during the week that ended Thursday. &nbsp,

Shares of China Vanke Co increased 19.4 % to close at HK$ 6.84 (88 US cents ) on Friday while shares of Sunac China rose 25.9 % to HK$ 1.85. &nbsp,

Agile Group gained 24.3 % to 92 HK cents while Guangzhou R&amp, F Properties surged 12.7 % to HK$ 1.33. &nbsp,

Poor house figures

Meanwhile, the National Bureau of Statistics ( NBS ) released new economic data for January- April 2024 on Friday.

In the first four weeks, China’s estate investment fell 9.8 % year- on- yr to 3.09 trillion yuan. For the 23rd subsequent month, the number has been declining.

In January-April, investment in residential real estate decreased by 10 % to 2.34 trillion yuan from last year.

New home sales fell 28.3 % to 2.81 trillion rmb for the same time. New home sales slumped 31.1 %. &nbsp,

New home sales size decreased 20.2 % to 293 million square feet. New home sales level decreased by 23.8 % year over year.

In April, the average home price in 70 largest Chinese cities fell 3.1 % from a year ago, according to the NBS. It’s the biggest year-on-year drop since November 2014, in terms of terms of year on year.

” March and April are a classic great time, but both new house sales and sales volume have decreased year-on-year over the course of that time, demonstrating how severe the Chinese home markets are right now,” said Wang Xiaoqiang, chief scientist with the Zhuge Real Estate Data Research Center. &nbsp,

Wang claimed that new home sales volume in the first four months of this year decreased by 26.4 % from the same time last year, when most Chinese cities still adhered to Covid laws.

Zhang Hongwei, founder of Jingjian Consulting, said property activities may improve if some urban commercial banks start offering mortgage borrowers10- 20 % discounts in the coming few months. &nbsp,

SOE home purchases&nbsp,

He Lifeng, the vice president of China, stated at a teleconference on Friday that the government will make more efforts to address the risks associated with unfinished commercial housing projects, ensure the delivery of housing projects, and encourage the reduction of property inventory in the markets.

He claimed that local governments are permitted to purchase unsold homes at fair prices and turn them into affordable or rental housing units.

In the upcoming year, 21 national banks, including China Development Bank, policy banks, state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks, will be given loans worth 300 billion yuan at an interest rate of 1.75 %, according to PBoC Deputy Governor Tao Ling. The period of time can be extended four times. &nbsp,

She stated that the central bank will provide loans to national banks to cover 60 % of the scheme’s lending, allowing them to lend SOEs an additional 200 billion yuan, increasing the total to 500 billion yuan.

She suggested that national banks should grant loans to SOEs designated by local governments in accordance with market rules, while local governments should make their own decisions about whether to join the scheme.

” The SOEs for home purchases will be designated by local governments”, Tao said. ” They must not be local government financing vehicles ( LGFVs ) or companies related to local governments ‘ shadow financing” .&nbsp,

China’s total local government debt, including LGFV loans and shadow credit, was about 90- 110 trillion yuan, or 75- 91 % of the country’s GDP in 2022, according to a research report published last November by the 21st Century China Center of the School of Global Policy and Strategy at the University of California San Diego. &nbsp,

Read: China to reboot markets with SOE home purchases

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China new home prices fall at fastest pace in over 9 years

Since 2022, Chinese authorities have made more efforts to revive the troubled property market, which is a major force behind the world’s second-largest market, but a lasting recovery has a proven to be challenging. Authorities pledged at a Politburo meeting last month to strengthen policies in order to clean theContinue Reading

Pichai downplays  ex-deputy”s criticism

Pichai downplays ex-deputy's criticism
Pichai Chunhavajira

Deputy PM and Finance MinisterPichai Chunhavajiradownplayed criticism of him in a resignation letter written by his former deputy Krisada Chinavicharana.

According to Mr. Krisada, who resigned as deputy finance minister due to his differences in work style and the fact that Mr. Pichai failed to handle him with respect when they collaborated.

” That’s understandable”, said Mr Pichai on Tuesday when asked about the causes as outlined in Mr Krisada’s text written on May 8 and published by the internet.

” There actually are always reasons]like these ] when it comes to working]together], but I simply ca n’t go into detail now”, he said.

Mr. Krisada even stated in his letter that Prime Minister Srettha Thavisin, who was also the former finance minister, had a proven track record of success in promoting the implementation of crucial expeditions.

These jobs included directing government initiatives to address issues brought on by large house debt, assisting small and medium-sized businesses in overcoming financial challenges, and accelerating the release of the federal budget for 2024.

Mr. Krisada, a former official in the finance ministry, claimed that while serving as a deputy finance minister, he always made sure the president’s spending was done in accordance with economic and fiscal control laws.

Additionally, Mr. Krisada’s May 10 letter, which stated his intentions to quit his position with the United Thai Nation ( UTN) Party, was published in the media.

UTN head Pirapan Salirathavibhaga, however, said he had now talked to Mr Krisada on the phone, and the latter affirmed his decisions.

Mr. Pirapan said it was a very specific issue and that Mr. Krisada’s withdrawal text, which pointed an accusing finger at Mr. Pichai, was in agreement with Mr. Pirapan.

He claimed that the UTN may select a replacement for Mr. Krisada to fill the position of deputy finance minister.

Paopoom Rojanasakul, the deputy finance minister, claimed only from press reports that he had learned of Mr. Krisada’s withdrawal letter.

If the reported speech is confirmed, Mr Paopoom said he would regard Mr Krisada’s choice.

Mr. Paopoom claimed to have known Mr. Krisada for ten centuries after their partnership at the Fiscal Policy Office.

Krisada Chinavicharana

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