Remarks by H.E. Prime Minister at the "Thailand Night" Event in Davos

Remarks

Her Excellency Ms. Yingluck Shinawatra

Prime Minister of the Kingdom of Thailand

at the "Thailand Night" Event

27 January 2011, Davos

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Excellencies, Distinguished Guests, Ladies and Gentlemen,

It is a great honour to be your host at the Thailand Night in Davos this evening. I very much appreciate representatives from Governments and the private sector being here, as old friends and Friends of Thailand. Thank you for sharing your evening with us. I hope that you have enjoyed the reception so far.

Thailand is not only a country rich in tradition and natural beauty but also a place full of potential and business opportunities.

For the flooding and recovery, I would like to begin by informing you that Thailand has emerged stronger after the floods last year. Many countries, and the public and private sectors have assisted us during our difficult times. I would like you to know that we are grateful for your kindness.

Looking forward, plans are ongoing to ensure that the crisis will not be repeated. To achieve this, we have set aside about 11 billion US dollars to create a new and improved water and crisis management system.

Dams and barriers will be built to protect infrastructure and key economic areas. Floodplains and waterways will be created to manage efficient water flows. Early warning system, business continuity plans (BCP) and preparations of communities will be improved. And most importantly, single command authority on water management will be in place to operate at all times.

As you are already aware, Thailand has faced many challenges over the past couple of years, including the recent flooding, political unrest and global economic recessions. But because of our strong economic fundamentals, we have always managed to recover quickly from any crisis. This year, we are expecting strong growth rebound at around 5 percent. Thailand's foreign exchange reserves remain high at around 180 billion US dollars. Our fiscal position is strong with public debt to GDP at around 40 percent. This allows the Government to finance the water management master plan and the Government's economic policies.

Thailand is also a great place to invest simply because of its strategic location at the center of a fast integrating ASEAN Community of over 600 million people. This makes us a gateway not only into ASEAN but also connecting with the rest of the East Asian region as well.

In addition, our plans to invest in public infrastructure projects in particular the roads and rails projects linking with our neighbors will further enhance connectivity between Thailand, ASEAN and beyond.

This Government intends to ensure that Thailand continues to be a country with a business-friendly environment. And we have already approved plans for reduced corporate income tax, which will be lowered to 20 percent by next year. In addition, we have a productive and highly skilled workforce which is valued by companies worldwide.

We have also addressed your concerns regarding political instability. We had a good election last year where all parties accepted the results. This gave Thailand a fresh start and an opportunity to move forward together. The Government will continue to work towards reconciliation and ensure rule of law and promote social cohesion.

In conclusion, I would like to reassure you that, not only your investments will be better protected as a result of our new water management plan but Thailand can also provide you with a stable environment to allow your business to prosper.

Finally, I would like to invite you to the 21st World Economic Forum on East Asia in Bangkok from 30 May to 1 June this year.

Come and see for yourself the great potentials and opportunities of Thailand. Enjoy the traditionally warm and generous hospitality of the friendly Thai people. I very much look forward to welcoming all of you in Bangkok.

Thank you and please enjoy the rest of the evening.

Sawasdee Ka

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