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Published on February 7, 2008

During the interview, he highlights an economic stimulus package to boost populist policies, an increase in the government's central budget to promote the SML Fund and One Tambon One Project (Otop) scheme, as well as the establishment of a Vayupak II Fund to finance mega-projects.

Here are excerpts.

What should we expect in the next six months?

Confidence. All the problems derive from the confidence of consumers as well as local and foreign investors. People have money but they don't spend because of fears for the future. Now export income accounts for 73 per cent of gross domestic product (GDP) while domestic income contributes a small amount. To push

the economy forward, we need to boost domestic consumption and this requires money. The elected government will also boost confidence as we sent a clear signal that we welcome foreign investment.

How can that be achieved?

Of four engines - exports, consumption, investment and public spending - the last engine could be restarted quickly and is under our control. Thus, the state must take a lead. Mega-projects are the key. Though the actual spending should start a year later in 2009, this creates confidence. Aside, we need to inject new money into the system. Where? Grass-roots people are the target. It took time to distribute the Village Fund and SML Fund, though these funds could generate jobs and income. Otop is also an urgent issue.

What additional budget is required?

I need to consult the Budget Bureau on the central government budget before submitting plans to Parliament in March. I will go for the additional deficit of 0.5 to 1 per cent of GDP, from 1.8 per cent at present. Then we will also revise the 2009 budget and propose it to Parliament in May. We will finance the deficit with borrowings. We are borrowing for investment purposes, not consumption.

Foreign loans are also needed to finance mega-projects. We can issue

bonds or set up a Vayupak II Fund. The projects would weaken the baht as we are financing them with dollar income.

What moves are there on the Foreign Business Act?

We must send a clear signal that nothing is retroactive and we are not shutting our door to foreign investment.

What are your views on the capital reserve requirement?

Symbolically, the measure has been continually relaxed. I need to talk with the Bank of Thailand and analyse what strengthens the baht - irregular inflows or our own economic flaws. Our trade surplus is huge due to low investment. Without investment, the baht is strong. This abnormal condition allows speculation. To solve the problem, we need monetary and fiscal measures, taking into account the entire picture.

Is there a plan to remove the Bank of Thailand governor?

I have never planned that far. I don't know where the rumour came from, but it wasn't from me. This needs discussion with involved persons.

What are the likely tax policies?

Like I said, the problem must be solved by both fiscal and monetary policies. We are looking into how to exercise tax measures in boosting the economy without jeopardising future government income. Comparatively, most neighbours' corporate taxes are lower than ours. However, I haven't yet considered tax reform, which includes individual income taxes and deductible income.

Can you comment on the Revenue Department's investigation into the former PM's tax payments?

I will never intervene in the process, as the justice procedure must be continued.

What is your expertise in fiscal policies?

We must interpret what is a fiscal expert. Through my educational background, I earned degrees in finance and accounting and an MBA. But if asked if I ever ran a bank, I haven't. How much does a finance minister need to know? Regardless of background and work experience, not everyone knows everything about the macroeconomy. They need to listen to the agencies in charge of fiscal and monetary policies and then make a decision.

It's wrong to say that those without degrees in economics can't be finance minister. Supporting the work is the team, and then you must listen to all. You must act like a half-full glass, ready to take in new water.

Who are your advisers?

I would rather keep it a secret, as some are ready to provide advice without going public. There is expectation that acceptable advisers must be well-known financiers or bankers. These people must change the mindset. In the new era, I believe in multi-knowledge.

The Nation