The Department of International Trade Promotion under Thailand’s Ministry of Commerce expects export shipments in the second quarter of the current year to increase by at least 5%, ensuring an annual export growth of 15% as planned. Exports rose by 0.91% in March after declining by 2.4% during the first two months of 2012.
Department specialists believe that exporting companies should focus on identifying new potential markets for their products. Compared to 1997, exports to the United States, the European Union, and Japan have decreased from 50.5% to 29.5%, while shipments to ASEAN countries, South Asia, China, Hong Kong, Taiwan, and South Korea have increased from 36.7% to 50.2%.
Throughout 2012, the Department plans to organize approximately 1,000 events both domestically and internationally aimed at promoting Thai products.
Social Policy and Labor Initiatives
The Ministry of Labor proposes that 24 million workers join the social security system by making monthly contributions starting from 100 baht. The system would cover agricultural workers, freelancers, truck drivers, street vendors, and homemakers aged 15 to 60. According to national statistics, more than 62% of Thailand’s 38.7 million working-age population is currently not covered by social security.
Pension Fund Contributions
Contributions to the Government Pension Fund will be increased to 12% of monthly income. Currently, the average contribution rate is 8%, of which 3% is paid by the employee and 5% by the government. The average return on investments from 1997 to 2011 was 7% per year, exceeding both inflation and bank deposit rates.
Since March of this year, more than 10% of fund participants have increased their monthly contributions. In total, the Pension Fund includes approximately 1.2 million members.
Overall, it can be confidently stated that in recent years, Thailand’s socio-economic development has been a top priority for the country’s authorities.