Some of the resolutions are as follows:
The cabinet acknowledged report of the Monetary Policy Committee (MPC) on Thai economic performances for the 1st quarter of 2023.
According to the report, Thailand?s trading partners are expected to grow 2.5% in 2023 and 2.9% in 2024 thanks to growth momentum in the services sector of US and euro area economies and China?s strong economic gains since COVID containment measures have been lifted. However, the global economic outlook faces greater uncertainties due to persistently high global inflation, and tighter financial conditions following banking stresses in advanced economies, which would have implications for monetary policy directions and the global economy going forward.
On the other hand, Thai economy is expected to continue expanding, growing 3.6% in 2023 and 3.8% in 2024. Growth would be driven by (1) a strong recovery in tourism as it is expected that foreign tourist arrivals would reach 28.0 and 35.0 million in 2023 and 2024, respectively; (2) a continued recovery in private consumption, which is expected to grow by 4%, especially for those in the services sectors related to tourism; and 3) rebound of merchandise export in the latter part of the year as global demand grows. Value of merchandise exports is projected to increase by 4.3%YoY. Headline inflation projection for 2023 is revised down slightly from the previous assessment at 2.9% and would return to the target range in Q2/2023, while headline inflation projection for 2024 is revised up slightly at 2.4%.
Thailand?s overall financial conditions remain accommodative. Financial conditions have tightened somewhat but remain supportive of the ongoing economic recovery. Commercial banks? interest rates and short-term bond yields increased from the previous quarter in line with the higher policy rate. In Q1/2023, the baht averaged 33.93 per U.S. dollar, appreciating by 7.2% from the average value in the previous quarter. The baht?s appreciation during the earlier parts of the quarter was initially due to China?s reopening announcement and expectations about the recovery in Thai tourism.
According to the report, financial stability remains sound overall but banking stresses in advanced economies and the recovery of the vulnerable groups must be monitored. The MPC also forecasted that Thai economy would continue to expand mainly driven by tourism and private consumption, and might post stronger growth than expected. Headline inflation would return to the target range in Q2/2023 but the outlook is still subject to upside risks stemming from higher cost-passthrough and rising demand-pull inflationary pressure from the ongoing economic recovery. The MPC also judged that policy rate should be normalized in a gradual and measured manner to a level that is consistent with sustainable growth in the long term, and at its meetings on January 25 and March 29, 2023, voted unanimously to raise the policy rate by 0.25 percentage point from 1.25% to 1.50% and from 1.50% to 1.75%, respectively.
The cabinet acknowledged Industrial Economic Report for March 2023, as proposed by Ministry of Industry.
Based on the report, manufacturing production index (MPI) in March 2023contracted by 4.6% YoY due to the contraction in manufacturing for export of several products as a result of global economic recession. Key industries that contributed to the contraction were hard disk drive (-30.83%), plastic beads (-11.72%), and furniture (-39.11%).
Key industries that have expanded well in March 2023 (YoY) were automobiles (+8.18%), and oil refinery (+6.15%).
The cabinet approved the draft Phnom Penh Declaration on the International Code for the Protection of Tourists (ICPT). Should there be an amendment in parts that are not gist nor against national interest, Ministry of Tourism and Sports may proceed without having to resubmit to the cabinet. Deputy Permanent Secretary to Ministry of Tourism and Sports (Ms. Daranee Likhitworasak), who represents Minister of Tourism and Sports, is authorized to adopt the Declaration without signing. This is as proposed by Ministry of Tourism and Sports.
The draft Phnom Penh Declaration on the International Code for the Protection of Tourists (ICPT) demonstrates the intent of UNWTO Tourism Ministers in promoting cooperation and partnership to revitalize post-COVID-19 tourism through protection of tourists (especially in an emergency situation), information dissemination, and implementations under UNWTO International Code for the Protection of Tourists.
Title: Outcome of the fifteenth meeting of the Conference of the Parties to the Convention on Biological Diversity (COP-15) Part Two and related meetings
The cabinet acknowledged outcome of the fifteenth meeting of the Conference of the Parties to the Convention on Biological Diversity (COP-15) Part Two and related meetings, which were attended by high-level representatives from 139 Parties to the Convention, including Thailand, with Secretary-General of Office Of Natural Resources and Environmental Policy and Planning, as head of the Thai delegation.
The meeting noted with concern over biodiversity degradation acceleration and habitat loss during the past decade, while the Secretary-General of Office Of Natural Resources and Environmental Policy and Planning affirmed Thailand?s commitment to join with the global community in working to achieve the objectives of the Convention on Biological Diversity through conserving, restoring, and capitalizing biodiversity in parallel with sustainable economic development. The Secretary-General emphasized bilateral and multilateral cooperation of all concerned sectors to promote the BCG Economic Model, implementation of innovative financial mechanism, exchange of technologies, and capacity enhancement to stop biodiversity loss and to achieve SDGs by 2030.
At the official-level meeting, several agendas were discussed and agreed upon, i.e., adoption of ?Kunming-Montreal Global Biodiversity Framework? (former Post-2020 Global Biodiversity Framework), and objectives for an inspirational and motivating 2030 mission as a stepping stone towards the 2050 Vision ?Living in harmony with nature?.
On capacity enhancement, establishment of the Global Biodiversity Fund was agreed upon, and Parties to the Convention were encouraged to put in place national financial plans for biodiversity. Marine and coastal biodiversity, including the issues of Invasive Alien Species (IAS) and Living Modified Organisms (LMOs), was also discussed.
The cabinet approved an appointment of Mrs. Julamanee Chartsuwan as new ThaiGovernor to Asia-Europe Foundation (ASEF), replacing Mr. Darmp Sukontasap. Her appointment will take effect by June 2023. The new Thai Governor to Asia-Europe Foundation (ASEF) is scheduled to attend the 44th Asia-Europe Foundation Board of Governors' Meeting (ASEFBoG44) and Related Meetings in Barcelona, Kingdom of Spain during July 6-7, 2023. This is as proposed by Ministry of Foreign Affairs.
Source: Cabinet Meeting (Prayut Chan-o-cha) June 13, 2023