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PM's Weekly Address

 Saturday 24 November 2018  0

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From the Sufficiency Economy Philosophy to Sustainable Development Goals November 23, 2018 From the Sufficiency Economy Philosophy to Sustainable Development Goals November 23, 2018

Good evening to you all.

His Majesty the King has graciously initiated the organization of a winter festival under the theme “Love and Warmth at Winter's End, the River of Rattanakosin” from December 9th, 2018 to January 19th, 2019 at the Dusit Palace’s Royal Plaza and Sanam Suea Pa.

His Majesty the King also graciously initiated the organization of the “Bike Un Ai Rak” event at the opening of the winter festival, in a bid to raise public awareness about health and exercise as well as foster love and unity among family members and citizens. His Majesty the King will lead other bikers through the historic routes passing several canals and waterways such as Khlong Maha Nak, Khlong Phadung Krung Kasem, main canals on , and Khlong Lat Pho in Phra Pradaeng District, Samut Prakarn Province which is part of the Royal project of His Majesty King Rama IX. The riding distance will be 39 kilometers.

At the same time, biking activities will also be held in the central region and other parts of Thailand. Registration for interested bikers has been opened since November 19th at provincial city halls, district offices, and online through the website now appearing on your screen. So far, a total of 200,000 people have already registered.

In addition, His Majesty the King has designed “Un Ai Rak” or love and warmth shirts to be given out to people who registered for the event. The shirt is in yellow color with touches of blue. The back of the shirt bears the Royal signature and a picture designed and drawn by His Majesty himself.

On November 28th, provincial governors will be receiving these specially designed shirts which will be handed out to bikers on December 1st and 2nd at city halls. As for , the shirts can be picked up at Supachalasai Stadium, the National Stadium.

Fellow Thai citizens, I’d like to talk about my overseas trip last weekend. I attended the 26th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting, in Papua New Guinea. The meeting was held under the theme “Harnessing Inclusive Opportunities, Embracing the Digital Future” with 3 priorities including 1) Improving connectivity, and deepening regional economic integration, 2) promoting inclusive and sustainable growth, and 3) strengthening economic growth through structural reform.

While meeting with members of the APEC Business Advisory Council, I was able to inform them of progress in Thailand’s digital infrastructure development such as the Pracharat Internet Project or the installation of high-speed internet across the country, even in remote districts, the revision of laws and regulations on digital development, and public-private cooperation on professional skill improvement for Thai citizens to be able to earn extra income.

Moreover, there is a platform to educate micro-, small-, and medium-sized enterprises about e- Commerce, helping them reach online and international audiences. Also, the Government is working with Alibaba to enhance the potential and capabilities of Micro SMEs. With these efforts, Thailand is ready for business and investment connectivity with other businesses region.

At the APEC Economic Leaders' Meeting, I proposed to the meeting that we should look into the future and strengthen our cooperation on skills and educational improvement to prepare people for the digital era, prepare personnel on cyber security, support multilateral trade, and establish more free trade zones to promote food, agricultural, and fishing security and sustainability. I also highlighted that opening up for free trade must be done together with the promotion of inclusive and people-centered development as well as green business practices for the future of our children.

The 26th APEC meeting revealed several trade issues and disagreements between countries. We have heard about these issues for a while and have prepared countermeasures to minimize and prevent any possible impact.

As for Thailand, we will continue to work with all allies to promote multilateral trade and barrier free economy, which is better off for countries and citizens in the long run.

Meanwhile, countries in this region can work together to promote economic connectivity in order to increase capabilities and cope with global changes such as the advent of the digital economy, and sustainable and inclusive economic development.

In order to prepare Thai people, in particular our youths for the aforementioned changes in the future, the Government has continuously hosting various activities. For example, this weekend, from November 23rd to 25th, the Ministry of Science and Technology will be hosting “Thailand 4.0 In the Making” event at Siam Square in central Bangkok, showcasing the country’s progress toward establishing a digital society under this administration, which will increase the country competitiveness and the expansion of research and development for commercial purposes as well as the improvement of SMEs and startups through the Pracharat Initiative etc.

I, therefore, would like to interested members of the public, particularly entrepreneurs and the youngsters who will grow up to be people of the 21st century to attend the event during the aforementioned period. My fellow citizens, amidst the global trade war and global economic downturn, the Thai economy continues to thrive. Export in the first 9 months of this year surged 8.1% compared to the same period last year.

Although tourism revenue from Chinese tourists has declined, Thailand remains number 1 destination for Chinese people. The most important thing that this Government has always been emphasizing is income distribution, specially income distribution among local people and low-income earners.

The Government has taken several steps to assist them in terms of income generation, infrastructural improvements such as roads and the internet as well as skills development and informal debt assistance for those abused by unfair agreements. We would like to see people get on with their lives without facing too many difficulties.

Another measure that the Government has been implemented continuously is assisting the low income- earners through the social welfare card. Through the card, we help ease burdens of daily expenses for commodities, cooking gas, transportation fares, career training for interested individual including the elderly, and the reimbursement of value-added tax.

According to the latest survey, reports, and thorough analysis in regard to the problems and needs of the social welfare cardholders, it can be said that measure has addressed many needs of those eligible, but not all their needs. We are focusing on putting in place specific measures to address specific needs for the best interests of the people.

I think as we are living together, we must share both good and bad times. Many people are less fortunate than the others due to the lack of opportunity in the past. They need an opportunity to grow, hence the easing of burdens. The Government has continuously working to make sure that our measures are addressing their problems. Most recently, we have issued 4 assistance measures.

1. We have water-electricity funds for cardholders who consume fewer than 50 units of electricity per month for 3 consecutive months. Those using fewer than 50 units do not need pay. For those who use more than 50 units, we will give a maximum of 230 baht and 100 baht a month for power and water bills.

The money will be provided per one household, not individually. When paying their water and power bills they will have to show their welfare cards. The money will be reimbursed onto their cards and they can take the money out of the card at the following month. This temporary measure will be in effect from December 2018 to September 2019, for a total of 10 months.

2. We have an additional stipend of 500 baht for the month of December, 2018. The money will be electronically wired to the cards. The extra money can be used for end-of-year expenses among those with low income who need to travel back to their hometown to celebrate New Year with their loved ones.

3. We give 1,000 baht to cardholders for medical expenses. Eligible people must be 65 years and older. The 1,000-baht allowance will be given in December only, but can be used until September next year.

4. We give 400 baht a month for house rentals to cardholders of 65 years old and above. They will receive this monthly allowance from December 2018 to September 2019.

The money under the four assistance measures will be wired to welfare cards which can be used like an ATM card. These additional expenses are financed by the local economy and society fund in response to the needs of the poor and the low-income earners.

In addition, Thailand is becoming an ageing society where senior citizens are forced to deal with a number of problems such as high expenses which are eating into their medical and transportation budgets.

Many retired civil servants need a new pension system so that their incomes are more in line with today’s circumstances, allowing them to live their lives more sustainably and happily. The state pension system is being recalibrated for suitability.

1. The increase of monthly pension from less than 10,000 baht to 10,000 baht.

And 2. The expansion of pension ceiling for retirees who are 70 years old and above to 500,000 baht, 100,000 baht more than the previous 400,000 baht ceiling. This is what they are already entitled to.

In addition, there are people who don’t earn enough money to have a home of their own. The Government is obligated to build stability for all people. Therefore, we have assigned the Government Housing Bank to initiate a one-million-unit house project.

These houses must be affordable by this group of people, meaning they must be compatible with the income of the target audience who are deprived of access to loans of commercial banks.

This group includes working people who are just starting a family, and senior citizens. They will be offered housing loans under fewer conditions.

The loan will be for buying/building accommodation with a credit limit not exceeding 1 million baht with a maximum loan period of up to 40 years etc. This program has begun since the Cabinet approved the project on November 20th and will last until December 30th next year.

In this regard, it is advisable for you all to keep following (the news) and updating yourself about the Government measures through various Government channels in order to make sure that you don’t miss out on your benefits. This is something the Government is offering to the people to alleviate their troubles.

I understand the feeling of the low and medium income citizens. We, therefore, have the intention to leave no one behind. We must care for low income citizens; this is a matter of humanitarian.

Respected citizens, regarding the troubles of rubber farmers, I would like everyone to understand the nature of the rubber market, otherwise you may not fully understand what we are trying to do for both short term and long term. Most importantly, we need to work together to solve the problem through mutual understanding.

For over 10 years since 2004, the country has supported the planting of millions of Rai of rubber farms without production planning in line with market demand. As a result, Thailand has become the largest producer and exporter of rubber in the world.

But today, the price of rubber in the country and the world market is likely to decline continuously, which affects the income of rubber farmers. The Government must then step in to provide assistance as with other economic crops by studying the foundations of the problem, the origins of the rubber price crisis, and solutions to falling rubber prices based on information and facts from all areas across the country.

This includes obtaining information from the International Rubber Study Group (IRSG), government agencies, and educational institutions. Important conclusions are as follows,

1. Thailand has the most rubber tapping land, leading Indonesia, Malaysia, China, Vietnam, and India. In 2017, Thailand has over 20 million Rai of rubber tapping area, enabling it to produce up to 4.5 million tons, the largest amount in the world when compared to the six major rubber producers.

2. The cost of production of raw rubber sheets in Thailand in 2007 to 2016 grew at a rate of 7% no sign of decline.

3. While production costs increased, prices have dropped. Between 2007 and 2016, the production cost increased by around 6.94% while sales prices dropped by around 3.76%.

4. Today, rubber prices are in a state of decline. Between 2008 and 2017, the price of rubber sheets contracted by 4.12% while the price of 3-layered smoked sheets decreased by 2.86%. and 5. The situation of rubber prices in comparison with the whole country in the last 20 years shows that average output in Thailand has increased. In the past 4 years, the output growth skyrocketed to 4.5 million tons.

At the same time, rubber prices in the global market have declined against increased production. Moreover, the price of crude oil in the world market from 2014 to 2018 has decreased, resulting the rise of oil-based synthetic rubber rather than natural rubber.

Also, the trade dispute between the United States and China and other trading partners of the US has caused Thai rubber exports to China and other major buyers to decrease, resulting in a price slump.

From the above facts, it can be seen that the most sustainable solution to the price of rubber in Thailand that doesn’t impact the country’s fiscal budget would be to reduce dependence on exports because the price of rubber in all foreign markets are on the decline while domestic prices are pegged to foreign futures prices.

At the same time, we must increase the amount of rubber utilization in the country while reducing supply, which will result in more stable domestic prices.

Therefore, the Government has proposed the following urgent solutions to the Rubber Authority of Thailand and the Natural Rubber Policy Committee in order to provide relief to farmers,

1. Establishing a career development project for the rubber farmers and their families so that they can earn more income during the fall of rubber prices.

2. Reducing the amount of rubber production by switching out rubber trees aged above 25 years or 15 years with low yield in favor of other crops.

Encouraging farmers to grow other crops in the rubber plantations by providing them with more incentives to accelerate the decision to reduce the amount of rubber production.

This must be done in tandem with the incentive to manufacturers in the furniture industry who use rubber tree wood as raw material or reducing the tax on furniture using rubber wood to increase demand for rubber wood to match the supply increase.

3. Inviting and welcoming rubber farmers throughout the country who are interested in joining the rubber deposit program during times of price decline or wish to agree on stopping rubber tapping for 1-2 months, may immediately reduce rubber supply from the market by 500,000 tons per month.

This is to stimulate rubber prices in the market because the rubber is traded in the same pattern with other commodities with futures contracts and fixed delivery dates at the end of the contract.

If we can control the rubber tapping, it will affect the price of rubber to be much higher. If up to 80% of rubber farmers in the country agree to cooperate with such measures, the Rubber Authority of Thailand will implement this measure.

This is a voluntary measure. If up to 80% take part in this program, we, then, will implement the aforementioned assistance program so that they will still be able to make a living during the rubber tapping pause.

4. Asking for the cooperation of companies, processing businesses, and factories that produce and sell tires to both domestic and global markets to take part in a campaign to encourage people to purchase new car tires during the new year for road safety. Buyers will be provided with an personal/corporate income tax deduction.

At the same time, private companies or factories participating in the project to produce cheap tires will receive tax privileges as well when they provide evidence of purchasing rubber from farmers or institutions that are certified by the Rubber Authority of Thailand.

The Government will also encourage domestic and foreign companies to invest in rubber production/processing/exporting business. These business entities will be eligible for investment incentive packages to be issued by related government agencies, the Industrial Estate Authority of Thailand, or the Board of Investment.

5. Promote and accelerate the use of rubber in the country by promoting the use of rubber and rubber products in all forms, starting from government agencies. We then expand this measure to other markets/industries.

The aforementioned measures are short-term measures decided to urgently alleviate the suffering of farmers.

The Government are working to put in place new measures to ensure sustainability in the rubber industry. The most important thing is to understand the fundamental of the issue as I have already mentioned. This will bring more cooperation and results as suggested by the Government.

Another problem is that we not only have owners of rubber trees, we also have rubber tappers. Therefore, we have to proportionally assist both farm owners and farm tappers. There are already people who registered to this program and we will be able to provide assistance to them.

Finally, I have prepared a New Year gift for everyone, particularly our youths by supporting reading and providing access to quality books from government agencies and educational institutions.

I have requested for the creation of e-books, videos, and audio files to further disseminate knowledge and promote educational books from the Ministry of Education and various agencies.

The Government aims to unveil a National e-Library on National Children’s Day next year, consisting of learning materials and general information for the youths and for the general public.

I request all ministries and agencies to create data files for uploading to the system so that students and people across the country can have a better access and be benefited from the e-Library.

I would like you all to follow up on this constructive program that would enable us to grow, progress, and develop ourselves to be invaluable assets of the country in the future.

I believe that people’s potential is limitless if given the opportunity to thrive. Examples of this include Ariya Jutanugarn, the number one ranked golfer in the women's golf who made history by winning all awards in the LPGA Tour along with several other awards.

And Damkoeng Moonthanya aka Ice who although is visually disabled, however he was able to overcome his limitations and complete his studies at the Faculty of Education at University with first place honors and is now able to realize his dream an English teacher.

I would like to commend (both of them) for being inspirational icons to all Thais. Don’t give up or give in to any obstacles or faith.

Thank you. Please stay determined. May all families be blessed with happiness and warmth.