A customer takes a photo with his mobile phone at a Thai Airways pop-up airplane-themed restaurant at the airline’s headquarters in Bangkok on Sept. 10, 2020.

Mladen Antonov | AFP | Getty Images

Thailand will focus on spurring domestic consumption and reopening an economy badly hit by the impact of the coronavirus crisis, the country’s new finance ministry said on Monday.

Southeast Asia’s second-largest economy suffered its deepest contraction in 22 years in the second quarter as the pandemic hammered the key tourism sector and domestic activity.

The other main tasks include boosting liquidity, supporting tourism and accelerating public spending, Arkhom Termpittayapaisith told reporters on his first official day at work.

“The most urgent task is to boost liquidity for businesses affected by Covid-19 as the business sector accounts for 70% of GDP,” he said.

The government will continue to introduce measures to support domestic consumption, which makes up half of the economy, and tourism, Arkhom said.

Later on Monday, the cabinet will consider planned tax breaks to increase spending, which is estimated to add 120 billion baht ($3.9 billion) into the economy.

The ministry will speed up government spending, which accounts for 20% of GDP, including a delayed 400 billion baht budget earmarked for reviving the economy under a bigger 1 trillion baht borrowing plan, Arkhom said.

Regarding a persistently strong baht, Arkhom said it is “an unresolved problem” and the ministry will closely
monitor.

“But the central bank will take care of it,” he said, speaking after the baht hit a more than two-week high last week.

Longer-term measures will include reopening particularly to foreign tourists to help the economy to continue to expand next year, Arkhom said.

“Although the situation looks better next year and there may be a vaccine, it will still take one or two

(Bloomberg) — The Indonesian rupiah has languished at the bottom of Asian currency rankings for most of the year but a recent overhaul of the nation’s investment law may help revive its fortunes.

The rupiah rose about 1% against the dollar last week after Indonesia approved its first omnibus law aimed at cutting red tape to boost investments and create jobs. That’s after a loss of 4.1% in the quarter ended September amid concern over Bank Indonesia’s independence, debt monetization and an economy poised for its first annual contraction since 1998.

“The passing of the omnibus labor law is good news for the rupiah as it’s a long-term structural reform that will improve the growth prospects of the economy,” said David Forrester, FX strategist at Credit Agricole CIB in Hong Kong. “We forecast USD/IDR to reach 14,500 by year end.”



graphical user interface, chart: Rupiah's 200-DMA continues to limit currency's gains


© Bloomberg
Rupiah’s 200-DMA continues to limit currency’s gains

The rupiah, which traded at 14,700 against the dollar on Friday, has fallen 5.7% so far this year as Asia’s worst performer.

Even though the rupiah failed to breach resistance at its 200-day moving average, support near 15,000 has held in the second half of the year aided by a burgeoning trade surplus, and Bank Indonesia’s support. Not only has the central bank intervened in the currency market, it has also left rates unchanged at its last two meetings.

Video: More corporate job cuts are likely without new stimulus measures (CNBC)

More corporate job cuts are likely without new stimulus measures

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Rupiah bulls will therefore be focusing on the central bank’s policy decision Tuesday, hoping that it continues to prioritize the currency’s stability over growth by keeping rates at present levels. All of the nine economists in Bloomberg’s survey forecast that BI will continue to be