PM's adviser calls for energy saving

The Prime Minister's economic adviser, Narongchai Akrasanee, said that the most urgent measure to boost the economy was to promote energy saving, as people have to spend too much on fuel.

He said that the economy had the capacity to grow more than 5 per cent this year, despite political instability.

"Even though foreign investment has been low over the past few years, Thailand has good economic fundamentals and high foreign reserves. The government should do more to promote economic growth by focusing on energy serving and helping reduce the cost of living," he said.

Narongchai pointed out that the country spends too much on oil per day. Demand for oil has pushed up prices of food and consumer goods as crops are being diverted to produce alternative fuel sources.

In addition, he suggested the government allocate at least 25 per cent from its annual fiscal budget for infrastructure development.

Pramon Sutivong, chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand, said he expected the economy to grow by more than 5 per cent this year.

However, as the political situation is still fluid, with three ministers still under fire, private investors, particularly those overseas, have taken a wait-and-see stance to see how the situation unfolds before making any new investments.

Meanwhile, people have welcomed the government's low-price goods fair, "Made in Thailand, Special 2008", which began yesterday and will run until Sunday.

Thousands will visit the fair to buy low-priced goods including staples including pork, rice, eggs and vegetable oil.

Commerce Minister Chaiya Sasomsap said the fair was expected to generate more than Bt5 billion over 10 days. About one million local and foreign visitors are expected to attend.

"The ministry will continue running low-priced goods fairs to help ease the financial burden on consumers. I will also meet with food producers and manufacturers and ask them to freeze or lower their prices," Chaiya said.