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Historical profile

One of the few Asian countries not to have been colonised, the pattern of modern Thai history has been one of dictatorship with a few slices of democracy. Pibul Songkhram, the strongman from 1938 for almost twenty years, was himself driven into exile by the army chief, Field Marshal Sarit Thanarat. When Sarit died in 1963, he was succeeded by his prime minister, then colonel (and later marshal) Thanom Kittikachorn. For the next ten years Thanom and his military colleagues, Field Marshal Prapas Charusathiara and Thanom's son Colonel Narong – popularly known among Bangkok's diplomatic circle as 'the Father, the Son and the Wholly Gross' dictated, cosyed up to the US and became sucked in to the Indochina conflicts while maintaining an increasingly intolerant régime. In 1972 Thanom promulgated a new constitution that gave him even more powers and allowed him to rule with the support of an assembly in which two thirds of the seats were held by army and police officers.

In the twentieth century Thailand often appeared to be a country on the edge of a revolution; Thanom fell victim to popular protest in the form of student demonstrations, forcing the King to send the hapless trinity into exile. Yet another brief experiment with democracy followed and yet another constitution was promulgated, Thailand's tenth. Periods of intermittent democracy and military rule continued until 2000.

The modern Thai language originates from the Tai-speaking people who migrated south in the first millennium AD from the Chinese province of Yunnan, south of the Yangtze River.

1767 The former capital of Siam, Ayutthaya, fell to Burmese invaders.

1782 King Rama I – first of the Chakri dynasty – was crowned and founded the capital city Bangkok.

1851–68 King Mongkut (Rama IV) began a period of reform and modernisation while adroitly avoiding European colonisation. Treaties were signed with the US, Great Britain, France and Japan, among others. Barriers against traders were eliminated, allowing expansion.

1868–1910 Chulalongkorn, (Rama V) continued his father’s programmes by modernising the legal and administrative systems, reforming the political structure and abolishing slavery. He also began construction of a railway network. Some Siam territories in Indochina were ceded to Britain and France.

1910 Vajiravudha (Rama VI) became King. He introduced compulsory education, among other reforms.

1925 Prajadhipok, the brother of Vajiravudha, became King.

1932 A group of students, led by Pibul Songgram and Pridi Phanomyang, in a bloodless coup d’état forced King Prajadhipok to replace absolute monarchy with a constitution monarchy and introduce parliamentary government. A new National Assembly was established.

1933 The first general elections were held.

1935 The King abdicated. A council of regency chose his 10-year old brother, Ananda, to be Rama VIII. He was studying in Switzerland at the time.

1938 Pibul Songgram became prime minister

1939 Siam was renamed Thailand.

1941–1946 Under the leadership of Pibul, Thailand allied itself with Japan and allowed Japanese troops to traverse the country. Thailand declared war on the US and Britain but the Thai ambassador in Washington withheld the official declaration and so technically the country remained neutral. Pridi Phanomyang led an American-backed anti-Japanese movement.

1945 Pridi became prime minister and Pibul was jailed briefly for war crimes.

1946 King Ananda returned for the second time from studying in Switzerland but died shortly after in mysterious circumstances. He was succeeded by his brother, Bhumipol Aduldej, the present King Rama IX, although he was not formally crowned until 1950. Inflation and corruption marred the government’s reputation.

1947 Pibul led an army coup d’état and instituted a military dictatorship. Pibul was staunchly anti-Communist and under his rule the Chinese community, suspected of being Communist sympathisers, was harassed.

1950 Bhumibol Adulyadej became King and was crowned Rama IX. Thailand aligned itself with the US during the Cold War and sent troops to fight in the Korean War.

1957 Pibul was overthrown in a coup led by Field Marshal Sarit Thanarat.

1958 Sarit deposed his own premier, took power himself and imposed martial law and dissolved all political parties.

1973 Student riots destabilised the military government and free elections were held. The King appointed a civilian, Sanya Thammasak, as premier.

1974 A new constitution was introduced, legalising political parties.

1976 The military seized power and Admiral Sa'ngad Chaloryoo, annulled the 1974 constitution and re-introduced martial law. A new constitution was introduced. Thanin Kraivixien became prime minister, he imposed a harsh rule and kept unions under tight control while he carried out anti-Communist purges of the civil service and educational institutions.

1975 With the ending of the Vietnam War Thailand became the temporary home to many refugees from Indochina.

1977 Thanin was overthrown by General Kriangsak Chomanand.

1978 A new constitution was promulgated in which a bicameral National Assembly was established.

1991 Another military coup led by General Suchinda Krapayoon replaced Kriangsak.

1992 General Krapayoon resigned and elections were held. A coalition led by the Pak Prachatipat (PP) (Democratic Party) was victorious.

1995 The Phak Chart Thai (PCT) (Thai Nation Party) won the general election and formed a coalition government.

1997 The constitution was amended to allow the direct election of a prime minister for a four-year term. The baht fell sharply during the Asian financial crisis and led to bankruptcies and unemployment. Chuan Leekpai (PP) was elected prime minister; he worked closely with the IMF to reform the badly damaged economy.

2000 Thailand's first senate election was held. Subsequent rulings against the results by the Election Commission necessitated two further elections.

2001 Elections to the House of Representatives took place. Thaksin Shinawatra became prime minister and the Thai Rak Thai (TRT) (Thais Love Thais) formed a coalition government with the Phak Chart Patthana (PCP) (National Development Party).

2002 The PCT and the Phak Khwam Wang Mai (PKWM) (New Aspiration Party) joined the ruling coalition. Supachai Panitchpakdi became director general of the World Trade Organisation (WTO).

2003 Although Thailand was not considered a Severe Acute Respiratory Syndrome (Sars) affected area, visitor arrivals had dropped by 20 per cent in April.

2004 January–March a wave of terrorist attacks by separatist Islamic and ethnic Malays from southern provinces killed over 100 people. In April over 100 Islamic insurgents were killed while attacking several police bases in the south. In October, 85 Islamic detainees were killed while in custody following violence at a rally in the south. Many suffocated to death in the back of a police van; an enquiry concluded the tragedy was unforeseen. Avian flu broke out and prompted the slaughter of millions of birds. Six provinces along the west coast of Thailand, including the tourist resorts of Phuket and Khao Lak, were devastated by a tsunami which swept the whole region on 26 December after an earthquake off the coast of Sumatra. The final estimate for Thailand was 8,212 dead or missing and 6,000 people displaced.

2005 The ruling TRT party won a landslide victory in the 6 February elections; Thaksin Shinawatra was the first Thai prime minister to win a second term in office. By mid-2005 it was estimated that over 1,000 people had been killed since 2004 in the violence in southern Thailand. There was a recurrence of avian flu in October.

2006 On 2 April, snap general elections were called amid controversy concerning allegations of corruption against the prime minister. Opposition parties boycotted the elections, which were won by the ruling TRT with 57 per cent of the vote. Despite the victory, the prime minister was forced to step down, and his deputy, Chidchai Vanasatidya, became acting prime minister on 5 April. On 6 May, the Supreme Administrative Court ruled that the general elections were invalid. The court’s ruling prompted Shinawatra to resume his duties as prime minister on 23 May. On 19 September, while abroad attending a UN General Assembly meeting Thaksin Shinawatra was deposed in a bloodless army coup led by General Sondhi Boonyaratkalin, who became head a 'Democratic Reform Council'. A ban was placed on political party activities. On 2 October, retired ex-army general, Surayud Chulanont was sworn in as prime minister. On 3 October Thaksin Shinawatra resigned his leadership of TRT, as 70 former parliamentary members also resigned from the TRT, moves likely to damage the party irrevocably. Chulanont's cabinet was granted royal approval on 8 October. Several bombs exploded in Bangkok on 31 December, killing three people and despite many accusations were made no-one claimed responsibility.

2007 Matial law was lifted in Bangkok and 41 (out of 76) provinces in January, two months after its imposition. Matial law continued in border regions and in the north in general. On 1 June, the constitutional court ordered the dissolution of the TRT and banned TRT leader Thaksin Shinawatra for breaking laws during the 2006 general elections; the court also banned a further 110 party members from politics for five years. The ban on political party activities that had been in place since September 2006 was lifted on June 5; the TRT remained dissolved. The government issued a warrant for the arrest of Thaksin Shinawatra on fraud charges in August. On 19 August, a referendum was held to agree changes to the constitution; there was around a 60 per cent turnout of which 70 per cent voted in favour of the proposition which, among other things, will limit a prime minister to two terms in office. King Bhumibol Adulyadej celebrated his eightieth birthday on 4 December. Although the king has few legal powers, he has been instrumental in calming relations between the military and civilian govorments and the people. In snap parliamentary elections held on 23 December the deposed prime minister, Taksin Sinawat’s TRT won 233 seats out of 480, the PP won 165 and Chart Thai Party 37.

Political structure

Thailand is a constitutional monarchy, with the King as Head of State.

The 1997 constitution was suspended, following the 2006 military coup. An interim constition was promulated on 1 October 2006, which gave the military junta the power to appoint a prime minister the cabinet and the entire legislature while the number of members of the National Assembly was reduced to 250. The junta proposes to assemble a 25 person, plus an additional 10 junta-appointed persons for a Constitutional Drafting Committee to draft a permanent constitution. The junta will have the power to vet the new constitution before being offered up to a referendum.

Constitutional monarchy

Executive power lies with the cabinet, headed by a prime minister who must be an elected member of the House of Representatives.

The interim constitution replaced the bicameral 500-member Sapha Poothaen Rassadorn (House of Representatives) and a 200-member Woothi Sapha (Senate) with a single chamber, Ratha Sapha (National Assembly) with no more than 250 members. All assembly members following the 2006 coup were appointed by the Democratic Reform Council.

Courts follow the traditional pattern of courts of first instance, a court of appeal and a Supreme Court.

23 December 2007 (parliamentary)

Parliamentary: the deposed prime minister, Taksin Sinawat’s TRT won 233 seats out of 480, the PP won 165 and Chart Thai Party 37.

23 December 2007 (parliamentary).

Political parties

None; since the coup d’état on 9 September 2006, ministerial posts are appointees of the Democratic Reform Council

Pak Prachatipat (PP) (Democratic Party)

Population

64.08 million (2005)

April 2000: 60,617,200

Population

Over 24 per cent of the population is under 14 years of age.

Approximately 80 per cent of the population are Thais, 10 per cent Chinese and 5 per cent Malays. Other ethnic minorities include Laotian, Vietnamese, Kampuchean and a number of hill tribes.

Buddhist (85 per cent), Muslim (4 per cent), Christian (0.5 per cent), Hindu and Confucian.

Education

Primary schooling lasts for six years until students are aged 13 when they progress to the lower secondary school. At aged 16 students may either follow a general academic or vocational path in an upper secondary school.

There are 16 universities in Thailand, of which 12 are in Bangkok. There are also 21 recognised private colleges of higher education. Culturally, higher education is biased towards the social sciences and humanities, with science and technology accounting for only 22 per cent of total tertiary enrolment.

The education system in Thailand is undergoing major reforms. The main objective is the eventual decentralisation of education in the country as in 2001, policy was implemented through a central office, regional office, provincial office, then a district office. From August 2002 it will be administered through a central office, a local area education office and the school.

The government hopes to transform the learning process from a teacher-oriented system to a learner-oriented method. There are plans to introduce more technology in education.

Health

Per capita total expenditure on health (2003) was US$260; of which per capita government spending was US$160, at the international dollar rate, (WHO 2006).

It is estimated that only 10 per cent of the population have pre-paid health insurance plans. Improve access to healthcare has been promised by the government by implementing a standard B30 (US$0.70) per hospital visit rule across the country. There are fears, however, that the reduced cost will entail a fall in healthcare standards.

The government has as a central objective, the standardisation of healthcare throughout the country. Plans stress the need to reorganise and decentralise public health administration. Private sector healthcare is expanding faster than the public sector, with private healthcare expenditure currently estimated to be running at double the public sector level. Private hospitals (over 370) account for 25 per cent of all hospital beds.

The ministry of health provides free medical services to the poor in all government hospitals. Thailand has well over 1,000 public hospitals, over 13,000 specialised private clinics, over 8,000 health centres and an estimated 0.23 doctors per 1,000 of the population. The health of the Thai population has improved significantly over the last 20–30 years with life expectancy rising by 17 years, the infant mortality rate dropping by about two-thirds and the proportion of the population with access to safe drinking water more than trebling.

In 2004 avian flu broke out, killing nine people and prompting the slaughter of more than 100 million poultry.

Welfare

The social insurance bill provides for cover during illness or accidents unrelated to work, maternity, disability, funeral expenses, child welfare, pensions and unemployment. The welfare system was radically restructured in 1997 with the introduction of a centralised Government Pension Fund (GPF) worth about B71 billion (US$1.57 billion), replacing the old civil service pension scheme with a privately managed autonomous entity.

The labour department of the Ministry of the Interior manages workers' security and welfare and oversees a compensation fund for workers. In 70 out of 73 provinces, employers with more than 20 workers are required by law to contribute to the compensation fund. This fund provides benefits to employees who suffer injury in the workplace, or who fall ill or die as a result of the performance of their work. On average, 60 per cent of the monthly wages will be paid. This amount should not fall below B2,000 (US$46) and should not exceed B9,000 (US$206). Medical expenses are also paid in the case of an injury and in the case of death, the funeral expenses will be covered by the employer.

The public welfare department (PWD) of the Ministry of the Interior provides welfare services to various groups of people such as children and the young, landless farmers, hill tribe minorities, the destitute, the disabled, the handicapped, the aged and those hit by disaster.

Thaksin Shinawatra has ambitious objectives to deal with social problems in Thailand. These include plans to establish family advisory centres and childcare clinics.

Child prostitution in Thailand has received strong international attention. Eradicating the trade in children and women is likely to be a slow process for Thailand, since anti-trafficking laws have been difficult to implement. Female unemployment in Thailand remains high, so many turn to prostitution to earn their living.

Main cities

Bangkok (Krung Thep – City of Angels) (capital, estimated population 7.0 million (m) in 2005), Samut Prakan (1.5m), Si Racha (1.8m), Khlong Luang (834,202), Chon Buri (573,423), Chiang Mai (168,135).

Languages spoken

Business is conducted in Thai. Chinese (mainly the Zhiu Zhou dialect from southern China) is spoken in major towns. Many senior government officials and businessmen speak some English which, along with French and German, is increasingly being used in tourist areas. Malay and indigenous languages are spoken.

Thai

Media

Much of terrestrial television and radio is controlled and operated by the government and military.

In Thai, main newspapers includes the mass-circulation Daily News (www.dailynews.co.th) and Thairath (www.thairath.co.th); other local and regional publications include Thai Post (www.thaipost.net) and Matichon (www.matichon.co.th), principal in of a media network. In English, the principal example include The Bangkok Post (www.bangkokpost.co.th) and The Nation (www.nationmultimedia.com) and Chiang Mai (www.chiangmai-mail.com).

Daily newspapers produce weekend editions including, in Thai, Matichon and Matichon.

In Thai, Krungthep Turakij (www.bangkokbiznews.com), Manager (www.manager.co.th), Post Today (www.posttoday.com), Prachachat Turakij (www.matichon.co.th/prachachat), Siam Turakij (www.siamturakij.com) and Than Settikij (www.thannews.th.com); in English, Business Day (http://www.biz-day.com), Thailand News and Press Releases (www.thailand4.com) is a business media outlet.

Various international publications such as New York Times, Newsweek, The Economist and Asiaweek are sold by newsagents.

The National Broadcasting Service of Thailand (NBT) (www.prd.go.th) operates a national network and external service which broadcasts in nine languages, including English. There are many commercial including MCOT (http://radio.mcot.net) and Bangkok FM (www.bangkokfm.com) and non-commercial radio stations, such as KU Radio network (http://radio.ku.ac.th) operated by Kasetsart University and Army Radio (www.tv5.co.th).

NBT operates Channel 11 (www.prd.go.th); Thailand Independent Television (TiTV) and Modernine TV (http://modernine.mcot.net) are government operated; TV5 (www.tv5.co.th) and BBTV (www.ch7.com) are operated by the Royal Thai Army. Thai TV3 (www.becnews.com) is commercial.

Advertising is available in the press, on commercial radio and television, in cinemas and outdoors. Static and mobile loudspeakers are widely used. Tobacco advertising is banned, and alcohol advertising was banned in 2007. While the media is free to report and criticise government policies reporters exercise self-censorship regarding such issues as the monarchy, the military and the judiciary.

Economy

While maintaining its position as the world's leading rice exporter, Thailand has steadily diversified its economy. To broaden the traditional agrarian base, the government has long encouraged industrialisation, both generally, through a succession of five-year economic development plans, and specifically, by making incentives available to encourage investment from domestic and foreign sources. Thai governments have acknowledged that the prosperity of Thailand lies in its ability to cope successfully with an increasingly competitive world economy.

After a couple of years' growth exceeding six per cent per annum, Thailand suffered a setback in 2005 as a consequence of several unforeseeable occurrences – the tsunami of December 2004, which damaged the tourist sector, a recurrence of the avian flu outbreak, a prolonged drought, escalating oil prices and a further escalation of the unrest in the south. Inflation, which had doubled in 2004, has continued to rise, while trade and current account balances have worsened.

Exports account for around 65 per cent of GDP. Thailand's ability to maintain strong export growth depends on the economic performance of key markets, notably Japan, the USA and the EU. Thailand has a shortage of skilled labour and outdated technology and measures to support productivity and competitiveness will be needed to sustain growth.

In January 2007, the government began introducing new rules in foreign investment laws, which may force some foreign-owned Thai companies, particularly in service industries, to divest shares to become, if not wholly Thai-owned, then joint partnerships. The stock market fell sharply when the proposals were published. The government's attitude was that these measures brought Thailand's foreign direct investment into line with international practice.

External trade

Thailand belongs to the Association of South East Asian (Asean) Free Trade Area (Afta) and maintains a list of goods that have preferential import duties between members and a programme of tariff reductions due to be introduced in the next few years. It also belongs to the 21-member Asia-Pacific Economic Co-operation (Apec) forum, which is a bloc of countries that border the Pacific with the aim of facilitating trade, economic growth and investment in the region.

A diversified manufacturing sector provides 46 per cent of GDP and a wide range of export commodities from rice (Thailand is a world producer), rubber, steel, tin, vehicles, hi-tech electronic goods, garments, seafood and processed food and electricity.

Principal imports are capital goods, intermediate goods and raw materials, consumer goods and fuels.

Japan (22.0 per cent total, 2005), China (9.4 per cent), US (7.4 per cent), Malaysia (6.8 per cent), UAE (4.8 per cent), Singapore (4.5 per cent),

Principal exports are textiles and footwear, fishery products, rice, natural rubber, jewellery, vehicles and computers and electronic goods and electrical appliances.

US (15.5 per cent total, 2005), Japan (13.7 per cent), China (8.3 per cent), Singapore (6.8 per cent), Hong Kong (5.6 per cent), Malaysia (5.2 per cent)

Agriculture

Agriculture accounts for around 10 per cent of GDP and employs just over half of the workforce. The rise of the manufacturing industry has meant that agriculture's share of GDP is declining, although farming still provides income for the majority of the population.

About 39 per cent of the total land area is cultivated. Production has generally been increased by expansion of planted acreage, rather than productivity improvements such as irrigation or use of fertilisers. Yield per paddy is one of the lowest in south-east Asia.

Thailand is known as the rice bowl of Asia and is one of the world's leading net exporters of food. The principal rice-growing area is the Chao Phya river basin. Tapioca is mainly produced in the south-east, kenaf in the north-east and maize in the central plain. Thailand is the world's largest exporter of natural rubber. Over 90 per cent of the rubber is produced in the south and most of it is exported through Penang in Malaysia.. Other major crops include sugar, cassava, cotton, jute, tobacco, fruit (especially pineapples), beans, oilseeds and coffee.

Livestock raised includes pigs, cattle, sheep and poultry. Buffaloes, oxen, horses and elephants are used as draught animals.

Crocodiles are farmed for their skins.

Agricultural co-operatives are organised by farmers to help co-ordinate joint farming activities and to provide low interest credits to members. The co-operatives are regulated by the ministry of agriculture and co-operatives.

Crop production (‘000) in 2005 included: 31,490 tonnes (t) cereals in total, 27,000t rice, 16,938t cassava, 4,180t maize, 2,000t bananas, 298t pulses, 1,500t coconuts, 5,250t oil palm fruit, 1,130t citrus fruit, 45t grapes, 270,000t tomatoes, 2,050t pineapples, 1,105t oilcrops, 70t tobacco, 60t green coffee, 1,800t mangoes, 3,020t natural rubber, 34t ginger, 49,572,000t sugar cane, 47t treenuts, 6t tea, 136t kapok fruit, 8,138t fruit in total, 3,380t vegetables in total; 400 tonnes cocoa beans.

Livestock production included: 1,896,859t meat in total, 115,000t beef, 62,314t buffalo meat, 682,500t pig meat, 930t goat meat, 1,035,800t poultry, 694,060t eggs, 900,000t milk, 3,500t honey, 5,000t cocoons, silk.

Thailand is the world's main exporter of fish and seafood. Exports typically earn US$4 billion per year. Shrimp products account for over half of the export revenue. Canned tuna is another important export item, typically accounting for 15 per cent of export revenue. The government has focussed on upgrading the fishing industry by cutting production and improving product quality. Shrimp exporters are moving to create more ready-to-eat fish-based products.

In December 2004 Thailand complained to the WTO that the US imposition of import duties was a violation of free-trade agreements. The US imports US$1 billion worth of shrimp and has provisionally set at tariff of 5.56–10.25 per cent on imports it claims are being ‘dumped’ on US markets.

In 2004, the total marine fish catch was 2,267,116 tonnes and the total crustacean catch was 139,089 tonnes.

Forests are estimated to cover 17 per cent of total land area, with a further 18 per cent subject of a reforestation programme following a rapid decrease in the 1980s. There has been a ban on logging in natural forests since 1989 and the government has implemented a number of measures to protect the remaining forests and encourage plantation forest management.

Exports of forest materials in 2004 amounted to US$941.3 million, while imports amounted to US$1.4 billion.

Production in 2004 included 28,685,240 cubic metres (cum) roundwood, 8,700,000cum industrial roundwood, 288,000 cum sawnwood, 2,900,000cum pulpwood, 300,000cum sawlogs and veneers, 685,000cum wood-based panels, 19,985,240cum wood fuel; 1,262,465 tonnes (t) charcoal, 3,420,000t paper and paperboard (including 120,000t newsprint), 920,000t printing and writing paper, 990,000t paper pulp, 819,000t recovered paper.

Industry and manufacturing

The industrial sector contributed around 44 per cent to GDP in 2004 and employs 15 per cent of the workforce. Manufacturing accounted for around 35 per cent of GDP and 80 per cent of exports.

The majority of industries are in the private sector and most registered factories are small undertakings, but there is a range of medium- and large-concerns. Main industrial products include processed food, precious stones and jewellery, cement, sugar, refined oil, synthetic fibres, textiles, assembled vehicles and parts, paint, steel, paper, pharmaceuticals, galvanised iron sheet, plastics (including artificial flowers), electronics, electrical appliances, glass, tin ingots, condensed milk, tin plate, detergent, hydrochloric acid and caustic soda. The local processing of wood has been encouraged and exports of plywood, veneer, parquet, furniture, household utensils and paper products show significant growth potential.

Tourism

Tourism is Thailand's single most important foreign exchange earner. There were 11.8 million arrivals in 2004, the majority coming from Malaysia, Japan, the UK, the US and Germany. Despite adverse factors in 2005, notably the December 2004 tsunami, but also avian flu and higher fuel costs, as well as the unrest in the south, visitor numbers did not fall taking the year as a whole. Arrivals numbered around 12 million, an increase of 3 per cent. The projection for the year had been 13 million. There was a rise in tourists from Asian countries and the government intends to pay particular attention to the new Chinese market and to Japan.

Environment

Mining

Mining accounts for around 2.5 per cent of GDP and employs three per cent of the workforce.

Mining has been officially designated a priority economic sector eligible for preferential tax and promotional privileges from the Board of Investment. The Bank of Thailand sets guidelines for private commercial banks to extend loans to the sector at prime lending rates.

Although many reserves remain largely unexploited, Thailand has a rich variety of mineral resources, including antimony, fluorite, iron ore, lead, lignite, limestone, manganese, precious stones, tungsten and zinc.

Tin, which is produced in northern, central and southern Thailand, is the most important mining commodity in terms of revenue. It is estimated that only 30 out of 145 tin mines are still active in the country.

Thailand is the world's biggest gem exporter. Low cost labour has helped Thailand remain a leading exporter. China is expected to become a major competitor in gem production and export. While Thailand's gem industry is more developed, China's lower priced stones have already entered the market.

Hydrocarbons

Thailand had proven oil reserves of 580 million barrels in 2004 and produced 218,000 barrels per day (bpd), of which only around 100,000 bpd was crude oil. Consumption was 909,000 bpd, an increase of around nine per cent on 2003. Thailand is dependent on imports, but in the face of a surge in prices in 2005, the government is encouraging refiners to reduce their imports and increasing domestic production. Thailand has four refineries with a joint capacity of around 700,000 barrels per day.

Thailand had natural gas reserves of 430 billion cubic metres in 2004 and produced 20.3 billion cubic metres. Consumption was 28.7 billion cubic metres, an increase of 4.7 per cent on 2003 levels. Most of the output is used for electricity generation. The largest gas field is in Bongkot, in the Gulf of Thailand, and is operated by a subsidiary of the state-owned Petroleum Authority of Thailand (PTT). This field supplies up to 35 per cent of national demand. Domestic demand is increasing at a greater rate than production levels, so to fulfil its requirements Thailand has become a net importer of natural gas from Myanmar.

Thailand had coal reserves of 1.50 billion tonnes in 2004 and produced 5.8 million tonnes oil equivalent (mtoe). Consumption was 10.2 mtoe, an increase of 10.2 per cent in 2003. Thailand imports coal to meet domestic requirements.

Energy

Thailand had electricity generating capacity of around 26GW in 2005. It is estimated that Thailand will need a further 20GW over ten years to meet future demand. Most of the genration is supplied by natural gas. Electricity is imported from Laos and Malaysia and an interconnector with Cambodia is under construction.

Thailand is attempting to reduce its dependence on imported oil by developing use of indigenous natural gas, lignite and hydro-power.

Geothermal resources have been discovered in Chiang Mai, Mae Hong Son, Chiang Rai and Phrae provinces.

Financial markets

The Stock Exchange of Thailand (SET) handles a daily turnover of B4–8 billion (US$95–191 million). Total capitalisation stood at US$50 billion in 2002, with 383 listed companies.

Banking and insurance

Thailand set up the Thai Asset Management Corporation (TAMC) in 2001 to take over bad loans in the banking sector. The high level of non-performing loans has prevented Thailand's banks from functioning properly. Banks have been reluctant to lend and this has made economic recovery difficult.

Internal reform also continued in 2001–02 as part of the ongoing restructuring drive. The implementation of risk management systems has been high on the agenda. Siam Commercial Bank, Thailand's most profitable bank is concentrating on upgrading technology and attracting more customers to its internet banking system. Thai Farmers Bank underwent major restructuring, splitting its branches into different departments and making them more customer-oriented.

Bank of Thailand

Bangkok