Ministry keen to press financial bills
According to Deputy Finance Minister Paopoom Rojanasakul, the three drafts are an amendment to the National Savings Fund Act, the Financial Hub Bill and the National Credit Guarantee Agency (NaCGA) Bill.
The draft amendment to the National Savings Fund Act allows the National Savings Fund to issue a "retirement lottery", aimed at attracting more people to save. This bill is expected to be presented for its first reading in parliament on July 16.
The Financial Hub Bill is designed to attract foreign investors and financial businesses, stimulate domestic economic activity and enhance financial skills among the local workforce. This bill was already reviewed and finalised by the Council of State and is expected to be submitted to the cabinet for approval on Tuesday. Once approved by the cabinet, it will be forwarded to parliament for deliberation.
According to Mr Paopoom, the draft NaCGA Bill is expected to be submitted to the cabinet on July 8 or July 15. This legislation is meant to improve access to formal credit for small and medium-sized enterprises by allowing NaCGA to assess lending risks and provide credit guarantees to financial institutions.
He said everyone involved in the process must continue to perform their duties because the country faces many obstacles that need to be resolved, including economic problems and border-related challenges. All ministries must continue to progress with their work.
Regarding the Entertainment Complex Bill, which was already approved by the cabinet, the government aims to submit it to parliament during the upcoming legislative session this month. However, Mr Paopoom said the draft still requires a detailed review before it can move forward.
"We can't afford to stop. Everyone must cooperate to ensure Thailand continues to move forward, both economically and in resolving border issues," he said. "We are trying to push through as many items in the pipeline as we can. There are no delays, with 2-3 draft laws heading to parliament."
Last week, three major private sector groups expressed growing concern over political instability, urging the government to ramp up efforts to rebuild trust and confidence among the public and businesses.
The Joint Standing Committee on Commerce, Industry and Banking is preparing to hold discussions with the Bank of Thailand, the National Economic and Social Development Council, the Finance Ministry and the Commerce Ministry to re-prioritise economic strategies, given limited resources. The focus is on stimulating the economy over the next 6-12 months.
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Bangkok Post
a day ago
- Bangkok Post
Ministry keen to press financial bills
Despite ongoing political uncertainty, the Finance Ministry appears poised to push forward three key financial bills. According to Deputy Finance Minister Paopoom Rojanasakul, the three drafts are an amendment to the National Savings Fund Act, the Financial Hub Bill and the National Credit Guarantee Agency (NaCGA) Bill. The draft amendment to the National Savings Fund Act allows the National Savings Fund to issue a "retirement lottery", aimed at attracting more people to save. This bill is expected to be presented for its first reading in parliament on July 16. The Financial Hub Bill is designed to attract foreign investors and financial businesses, stimulate domestic economic activity and enhance financial skills among the local workforce. This bill was already reviewed and finalised by the Council of State and is expected to be submitted to the cabinet for approval on Tuesday. Once approved by the cabinet, it will be forwarded to parliament for deliberation. According to Mr Paopoom, the draft NaCGA Bill is expected to be submitted to the cabinet on July 8 or July 15. This legislation is meant to improve access to formal credit for small and medium-sized enterprises by allowing NaCGA to assess lending risks and provide credit guarantees to financial institutions. He said everyone involved in the process must continue to perform their duties because the country faces many obstacles that need to be resolved, including economic problems and border-related challenges. All ministries must continue to progress with their work. Regarding the Entertainment Complex Bill, which was already approved by the cabinet, the government aims to submit it to parliament during the upcoming legislative session this month. However, Mr Paopoom said the draft still requires a detailed review before it can move forward. "We can't afford to stop. Everyone must cooperate to ensure Thailand continues to move forward, both economically and in resolving border issues," he said. "We are trying to push through as many items in the pipeline as we can. There are no delays, with 2-3 draft laws heading to parliament." Last week, three major private sector groups expressed growing concern over political instability, urging the government to ramp up efforts to rebuild trust and confidence among the public and businesses. The Joint Standing Committee on Commerce, Industry and Banking is preparing to hold discussions with the Bank of Thailand, the National Economic and Social Development Council, the Finance Ministry and the Commerce Ministry to re-prioritise economic strategies, given limited resources. The focus is on stimulating the economy over the next 6-12 months.
Bangkok Post
2 days ago
- Bangkok Post
Thai auto sector showing signs of recovery, minister says
Encouraging signs are emerging in Thailand's industrial sector, particularly in automotive manufacturing, which is showing a strong recovery after a prolonged contraction, according to Deputy Finance Minister Paopoom Rojanasakul. The government is beginning to see positive momentum in the automotive industry, which had been in decline for two years, Mr Paopoom said on Saturday. The country's Manufacturing Production Index (MPI) in May increased by 1.9% year-on-year, marking the second consecutive month of growth following nine months of contraction, he said. The automotive MPI rose by 12.7% — also for the second consecutive month — after turning positive for the first time in 21 months. Automobile production in Thailand rose 10.3% in May from a year earlier, with the first annual rise in 22 months helped by higher pickup truck output for export markets, the Federation of Thai Industries (FTI) reported earlier. However, for the first five months of 2025, output was still down 7.8% from a year earlier to 594,492 vehicles. Most industry leaders expect the full-year figure will also show a contraction. Domestic car sales (including pickup trucks) rose for a second month in May, up 4.7% year-on-year, though demand is still constrained because of high household debt and tougher screening of loan applications. Passenger car production in May surged by 22.1%, maintaining momentum after posting positive growth in April for the first time in a year. New passenger car registrations in May also grew by 8.7%. The pickup truck MPI in May grew by 5.2%, its first increase in 23 months. However, the pickup market requires additional stimulus as it has been affected the most by lending constraints, said Mr Paopoom. The Ministry of Finance has proposed a new programme that would offer tax reductions on new pickups to buyers who trade in their old ones. Meanwhile, the MPI for motorcycle manufacturing continued its growth for the third consecutive month, rising by 7.4%, in line with a 5% increase in domestic motorcycle production.
Bangkok Post
4 days ago
- Bangkok Post
Explainer: What is Japan's trade policy on rice?
TOKYO - US President Donald Trump has complained that Japan was not buying American rice, putting pressure on Tokyo as it struggles to seal a trade deal before so-called "reciprocal" tariffs are set to kick in on July 9. Tokyo has not budged on rice, a staple food and cultural heritage that it says is fundamental to its national food security. The rice market is largely protected with trade barriers, although a domestic shortage and a spike in prices have led to a surge in imports this year. What is Japan's trade policy on rice? Under a World Trade Organization (WTO) "minimum access" framework introduced in 1995, Japan imports about 770,000 metric tonnes of rice tariff-free every year. Up to 100,000 tonnes of that is earmarked for staple rice, equivalent to about 1% of total domestic consumption of about 7 million tonnes. Of the total 767,000 tonnes Japan imported in the last fiscal year to March 2025, 45% came from the United States. Beyond the "minimum access" framework, Japan imposes a levy of 341 yen (76 baht) per kilogramme, which has, for the most part, effectively priced imports out of the market. As domestic rice prices soared over the past year, a panel advising the Finance Ministry proposed expanding imports of staple rice - which is eaten at meals rather than used for feed or as an ingredient in other products - saying that lifting the 100,000-tonne tariff-free cap could help stabilise supply. In the annual report released by the US Trade Representative in March, Washington criticised Japan's rice import and distribution system as "highly regulated and nontransparent" and said that it limited US exporters' ability to have "meaningful access" to Japanese consumers. Is Japan importing more rice? A doubling in domestic rice prices from the levels of a year ago has fuelled a surge in imports, as businesses and consumers clamour for cheaper options. In the fiscal year that ended in March 2025, tariff-free imports of staple rice hit the 100,000-tonne cap for the first time in seven years. About 60,000 tonnes came from the US. In an effort to provide cheaper rice to consumers more quickly, the Farm Ministry brought forward to June a tender usually held in September for the first 30,000 tonnes of tariff-free, imported staple rice for this year. Of the total tendered, 25,541 tonnes were from the US, followed by 1,500 tonnes from Australia and 708 tonnes from Thailand. For tariffed staple rice, private companies imported some 10,600 tonnes in May alone, of which about three-quarters came from the US, according to Finance Ministry data. That compares with total imports of 3,004 tonnes for all of fiscal 2024. What happened in the last US-Japan trade deal? The last bilateral trade deal was sealed in 2019 during Trump's first term, with then-Japanese Prime Minister Shinzo Abe. The US aimed to restore its farmers' lost market share after Trump pulled the US out of the Trans-Pacific Partnership (TPP) trade pact in 2017. Japan made concessions on US beef and pork, agreeing to gradually lower or eliminate tariffs, but rice was left out. Under TPP, Japan would have accepted 70,000 tonnes of US staple rice per year tariff-free under a US-specific quota, but this was not included in the bilateral deal.
