National Pension Scheme Awaiting Approval

22 May 2009

In the next few months, the government will seek approval from Parliament for the nation’s new national pension scheme which would provide pension benefits to 23 million persons not entitled to social security or other welfare programs. The pension scheme would be implemented immediately after receiving approval from Parliament.

Pensioners under the scheme would be eligible for pension benefits of at least 2,800 baht per month, and the scheme is to cost the government an estimated 15 billion baht yearly if 23 million persons, out of a population of over 60 million, participate in the scheme.

Self-employed workers, such as motorcycle taxi drivers and agricultural laborers, would be the first group entitled to pension benefits under the scheme, and must be in the 15-60 age group. These will need to save from at least 100 baht to 1,000 baht a month until they are 60. The government will match 50 baht for every 100 baht contributed.

After 2 years of implementing the scheme for self-employed workers, those covered by social security or a private provident fund would be able to participate in the scheme, subject to an arrangement for employers and employees, although the government would not match funds.

Currently, it is estimated that only 38 percent of the average workers’ income in the last month of work is the amount provided to them through monthly pension benefits at retirement, which is not enough to maintain normal living standards.  

India – Asean to Sign Free Trade Agreement

22 May 2009

India and Asean are due to sign a free-trade agreement at the Asean Economic Ministerial Meeting this coming August in Thailand. However, the signing may be postponed until the 15th Asean Summit in October should problems arise concerning a tariffs reduction document. The implementation of the FTA is scheduled for January.

India and Asean will be committed to liberalizing 95 percent of trading in goods under the proposed FTA. Moreover, the parties will reduce 75 percent of tariffs set for agricultural and industrial products to zero by 2012, and eliminate 10 percent of excise taxes on other products by 2015. Tariff reductions on the remaining products will be negotiable. 

With the lower tariffs subject to the FTA, trade is expected to increase between India and Asean. In the coming few years, trade between Thailand and India is forecast by some experts to increase by $10 billion USD (341 billion baht).

Suspension of Illegal Trading Task Force

16 May 2009

The Deputy Commerce Minister has suspended a special task force authorized to suppress illegal trading in counterfeit goods, reportedly for lack of transparency. The move came a week after the task force raided vendors’ stalls at Patpong night marker, confiscating both illegal and legal items, thereby angering over 200 vendors. The Ministry will complete a review of the incident by next week and plans to renew the operations of the task force after a review of the team’s role.

The task force team consists of officials from the Royal Thai Police, the Intellectual Property Department, and the Internal Security Operations Command.

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