Dear members,

With 100 out of the total 1,000 participants to the PM luncheon, our chambers again outperformed all the others. But that was not the point. It was good that so many of us showed up to learn first hand from the Prime Minister what he and his cabinet are up to.

And the message was a positive one indeed. In the words of the PM, foreign investors are key drivers of the economy and true partners and friends of Thailand. And to show that he really wants to listen, Khun Abhisit stressed on several occasions that the private sector (Thai and Foreign Investors) is invited to consultations with the government. The structure that has been set up is called the Public-Private Sector Committee. The council of economic ministers meets 3 times per month and the fourth time is with this Public-Private Sector Committee. The many questions that were asked during our luncheon today will again be submitted directly to the PM, and will be discussed during the Public-Private Sector Committee meetings. Subjects include BOI, lack of consultation with the different Ministries, public debt, Liberalisation of the Service sector, Telecom competitiveness, Mega-projects, Support to specific sectors such as the automotive industry, Customs and Labour.

The short term support to boost the economy was mentioned. Interestingly, the cabinet decided not to stretch its budget to the legal limit so as to keep a reserve in case an additional stimulus package is needed for Q3/Q4 and for the next fiscal year (starting October).

In addition to the short term support, the council of economic ministers have agreed on a framework for long term competitiveness. 3 main points of emphasis were mentioned: Education, Water distribution, and Food, Service Industry and Added Value Creation.

But, to turn things around, "a lot of reform is needed" said Khun Abhisit. He is serious about using the current economic situation as an opportunity to implement some fundamental structural, legal and regulatory reforms (but this, he stressed again, through participation and in consultation with all stakeholders including the foreign business community).

We can only wish him and the team good luck for the sake of Thailand, its people and all investors.

Best regards,

Bert Cesar