PM downplays Moody’s downgrade, cites global tariff impact

Prime Minister Paetongtarn Shinawatra has downplayed Moody’s downgrading of Thailand’s economic outlook, from “stable” to “negative”, saying it was just the rating agency’s perception and that the economic outlooks for Cambodia, Romania and Georgia have also been downgraded due to the impending US tariffs.

She said that Thailand’s outlook was downgraded before, in 2008, but the country eventually recovered and its credibility rating was restored to “stable”.

In her speech, delivered at a TNN dinner talk yesterday evening, the prime minister said her government has not sat idly by, but has made preparations to cope with increased tariffs on Thai exports to the US market. It has taken steps to improve the economy through increased investment in future industries and to attract more foreign investment in technology, such as data centres.

She said that the government has rolled out short, medium and longer term measures to boost people’s purchasing power, boost the economy, create employment opportunities and to help SMEs through economic difficulties.

Due to these efforts, the prime minister claimed that the growth rate for the last quarter of last year increased to 3.2%, from 2.5% throughout most of the year.

Touching on the controversial entertainment complex project, she insisted that the whole concept is to create a man-made, all-year-round attraction for tourists and locals alike, who will be able to enjoy the entertainment there, such as concerts featuring internationally-renowned artists.

The project is not about gambling, as claimed by critics and opponents, as the casino will account for just 10% of the entire project, said the prime minister.

She also said the government has given placed great importance on the development of Thai products, such as durian, which are now being produced by several other countries and compete with Thai varieties in the same markets.

Regarding the tariff talks with the US, the prime minister offered an assurance that her government will do its utmost to negotiate directly with the US, and through the ASEAN block, for a deal which will have the least impact on the country.