Muay Thai are straightforward martial art, use strength in beating opponent with versatile skills. It is the descendant from Muay Boran. Muay Boran (Ancient boxing) was created to use in war when the warrior lost their weapon. The art of Thai weapon fighting is called “Krabi Krabong”. Most of Muay Boran’s techniques didn’t exist in modern Muay Thai. Muay Boran can fight in every formats. With the basic of Muay Boran that was created for fighting many opponent in war. Sometimes the warriors lost their weapon They have to fight the enemy with their bared hand. Therefore Muay Boran emphasizes a brutal and powerful elbow and knee techniques, in beating the opponent as quick as they can and prepare for the next opponent in the battlefield.

Muay Boran is divided to Muay ThaSao (North), Muay Korat (Esarn or NorthEast), Muay Lobburee (Center region), Muay Chaiya (South)

There are a phrase about Muay Thai Boran that “Punch Korat, Wit Lobburee, Posture Chaiya, Faster Thasao”

Muay Korat emphasizes in strength. There are one technique call “Throwing buffalo punch”. It was call like this since it can defeat the buffalo in one blow.

Muay Lobburee emphasizes in clever movements. Its strength point is the straight and turned punch.

Muay Chaiya emphasizes in posture, defending. It’s difficult for opponent to attack. Muay Chaiya stress in elbows and knees.

Muay Thasao emphasizes in speed. Muay Thasao stress in speeding kick. Cause of their faster speed, this Muay Boran was call “Ling Lom” (windy monkey or Loris)

Muay Thai in present is different from the past. Muay Thai Boran (Old Muay Thai) use the wit in fighting. It’s not like Muay Thai in today that all the fighters emphasize in strength.

Exports. During 1988-1992 total value of exports increased at an annual average of 20.3 percent. Total value increased from about 18 percent of the Gross National Product in 1984 to approximately 29.5 percent in 1993.

There have been improvements in the structure of Thai exports value, most notably the diversification of export commodities. The share in total exports held by the country’s seven major agricultural products, (rice, tin, rubber, maize, sugar, kenaf and tapioca) declined from about 54 percent in 1978 to 12 percent in 1993. Meanwhile, exports of manufacturing sectors increased from 65.8 percent in 1988 to 81.0 percent in 1993. An impressive rate of export growth has also occured for textile and garment, electronic equipment, frozen squid, canned pineapple, fish meal and canned marine products, gems and jewellery.

Thailand’s traditional export markets are concentrated in the East Asia region. In 1993, Japan took up 17.05 percent of total exports and three other countries in the region-Malaysia (2.8 percent), Hong Kong (5.29 percent), and Singapore (12.07 percent). With the high rate of growth in the East Asia region, as well as the growing economic interdependency between Japan, the newly industrialized countries in Asia and ASEAN, the prospect for future export expansion looks bright.

Imports. Thailand’s import bill increased from 242,284 million baht in 1984 to 1,143,000 million baht in 1993. Most of the increase was experienced after 1986 when the country started a period of economic boom. Between 1961 and 1973, the portion of the total Gross National Product spent on the imports stood at between 18 and 21 percent. During 1973-1982, the ratio increased to 28 percent as a direct result of substantial rises in the import price of petroleum. In 1993 expenditures on imports accounted for about 36.6 percent of the Gross National Product.

Import structure has changed in recent years. The proportion of consumption goods imports has continually declined from 23.7 percent of total import value in 1967 to only 9.6 percent in 1993 as a result of the government’s industrial development policy oriented towards import substitution. At the same time, imports of raw materials and capital goods increased substantially to about 73 percent of total imports by the end of 1993.

Thailand relies on imports from certain major trade partners, particularly Japan and the United States. In 1993 imports from these two countries accounted for 42.3 percent of the total. Over the period 1978-1988, the proportion of imports from West Germany and the United Kingdom declined from 9.67 percent of the total to about 8.3 percent while imports from Saudi Arabia and Qatar, the major exporters of petroleum, increased substantially. During the period under review there has been no significant change in the direction of imports from ASEAN countries. Imports from Malaysia and Singapore totaled respectively 6 percent and 9 percent of the total in 1993.

Terms of trade. With the continuing increase in fuel prices, world-wide inflation, and the decline of primary product prices in the world market since 1975, the terms of trade have become less favourable. However, there was a significant improvement in 1992/1993 with the sharp rise in primary commodity prices in the world market.

The fabric of the Thai economy remained virtually unchanged up to the late 1950s. In the early 1960s, the industrial and service sectors began supplementing agriculture as significant income and employment generators. Today, Thailand is still predominantly an agrarian country, with about 57 percent of its working population engaged in agricultural production and earning about 12 percent of the national income. Over the years, however, the industrial and service sectors have been increasing their shares of the total GDP.

Significant structural changes in the Thai economy have taken place since the early 1960s. Agriculture’s share of the national income declined steadily from about 40 percent in 1960 to 12 percent in 1993. At the same time, the manufacturing sector expanded very rapidly, increasing its portion of the national income from 13 percent in 1960 to 37 percent in 1993. Such a structural change does not, however, imply that agricultural output failed to rise during the period. On the contrary, it increased by about five percent per year. Moreover, a high degree of diversification took place, enabling Thailand to boost its export items from only three major commodities namely rice, teak and rubber in the early 1950s to more than 10 main agricultural products in 1993.

The industrialization process initiated during the 1960s was geared towards import-substitution. It was succeeded in the 1970s by a drive to produce export-oriented items. By the mid-1970s Thailand was exporting manufactured goods ranging from cement to watch parts, and including canned fruit, garments, chemical products, transport equipment and television sets. In 1993 manufactured exports accounted for about 81 percent of total export earnings.

International trade is vital to the Thai economy. Thailand’s entry into foreign markets in the mid-19th century enabled its economy to expand rapidly. Today, export and import transactions together account for about half of the national income. Although there were annual deficits in the balance of trade, the balance of payments recorded continuous surpluses throughout the 1960s and early 1970s, Sharp increases in oil prices since 1970, however, affected the balance of payments position severely. Large tourist earnings are foreign capital inflow put the balance of payments back into a surplus position.

The public sector supports the growth process by providing development facilities through the construction of basic infrastructure and by creating a conductive environment for the private sector to operate effectively.

Despite the steady increase in population, real per capital income has doubled over the past two decades. At current prices, it increased from 4,000 baht per head in 1970 to 53,215 baht per head in 1993. The proportion of the country’s population living at the subsistence level has declined from around half in the early 1960s to less than a quarter in recent years.

In short, the performance of the Thai economy over the past two decades has ranked high among developing countries. Some basic economic problems such as income disparity, the need to conserve natural resources, the uncertainty of export markets, and the need for improving administrative efficiency, remain to be solved but judging by past performance as well as from the present economic outlook, it is clear that Thailand has the potential to expand its economy and thereby improve the welfare of its citizens.

Modern industrialization started in the early 1960s. Although the first Industrial Promotion Act was promulgated in 1954, it was only implement in 1960 with the establishment of the Board of Investment. The Act was revised in 1962 to promote investment in specific activities, mainly through tariff protection, tax holidays and reduction of taxes on imported raw materials and machinery. A new law was introduced in 1972 in accordance with the government’s shift in policy from an import-substitution to an export-oriented economy.

Growing at an average rate of approximately 10 percent per year since 1960, in 1993 manufacturing accounted for more than 24 percent of the national income; employed 10 percent of the entire labor force; and accounted for 64 percent of exports, making it the nation’s largest sector.

In 1960, industrial activity was concentrated on food processing, which accounted for over one-third of total manufactured products. Other significant products were beverages, tobacco, garments and chemical compounds. From 1960 to 1969, the fastest growing was the petroleum products industry, averaging 103.1 percent per year. However, between 1980-1989 the average growth rate declined to only 5 percent per year as a result of the diversification of the industrial sector.

Intermediate products, among them machinery, electrical machinery, iron and steel, metal products, and non-metallic products also expanded rapidly. As a result of the relatively high growth rates of these industries structural change took place in this sector. Instead of concentrating on a few industries, the manufacturing sector’s activities broadened to encompass several new groups of industries. Thus, in 1970 more intermediate products were manufactured, e.g. electrical machinery, transportation equipment, textiles and garments not only to substitute for imported products, but also for exported products.

Between 1986 and 1988, textiles and garments was the most important industry, accounting for 29.2 percent of principal export, while canned food accounted for 12.7 percent in 1988.

Between 1970 to 1993, the share of tobacco products in Gross Domestic Product declined from 8.5 percent to 0.85 percent, non-metallic mineral products decreased from 4 percent to 2 percent, and rubber and rubber products from 2.6 percent to 0.68 percent while general machinery and electrical machinery increased from 5 percent to 12 percent.

Viewing the past two decades of industrial development in Thailand, the following observations can be made:

* A high degree of diversification has taken place in the industrial sector. As a result, industrial activity in Thailand today has become more evenly distributed among many groups of industries and is more complex than in the 1960s. * The growth of manufacturing output during the 1960s was characterized by import substitution. Since the 1960s, the share of consumer and manufactured goods among Thailand’s total imports declined continuously, while that of intermediate and capital goods increased. By the 1970s, the Thai economy reached the stage where component parts and other intermediate capital goods could be produced locally. As a result, the imported content of many locally-made industrial products is decreasing. * In the early 1960s, Thai exports consisted almost entirely of primary commodities. A decade later the manufacturing sector had developed to the extent that locally-made products were competing on world markets. Thereafter export-oriented industries began to gain prominence. Part of this shift resulted from a widespread concern in the early 1970s over limited demand in the domestic market. Also conductive circumstances in the world market at that time called for a shift in policies from producing for domestic markets to producting for export. The textile boom which started in 1972 came basically in response to export potential. The import quota on Japanese goods imposed by the U.S. enabled Thai textiles to capture a larger share of that market. The sugar boom which began in 1974 was in response to the sudden increase in the world price. Production of other items such as food products, animal feed, chemical products, pharmaceuticals, iron and steel products, and electrical components also grew in response to domestic and foreign demands.

One important aspect of industrial development in Thailand has been the private sector’s rapid response to shifting market demands. This is reflected in the changing structure of manufactured imports and exports since the early 1960s.

In 1955, Thailand’s imports of manufactured goods accounted for about 75 percent of the total value of imports. By 1993 the proportion had declined to about 28 percent but capital goods such as machinery and transport equipment, increased from 28.9 to about 45.8 percent. Import of raw materials also incresed remarkably.

On the export side, Thailand’s manufactured exports contributed about 2.4 percent of total export earnings in 1957. This had risen to 64.45 percent by 1993. For the period 1983-1993. the share of basic manufactured goods rose from 17.8 percent to 18.23 percent, and machinery increased from 5.7 percent to 30.0 percent while the export of miscellaneous manufactured goods increased from 10.1 percent to 20.8 percent.

In the current phase of Thailand’s industrial development, dating from the realignment of the Japanese yen and other major currencies, the country is benefiting from a major regional restructuring of manufacturing. Production of a new range of intermediate manufactures is being fuelled by a wave of foreign investment and industrial relocation from Japan, Taiwan and other Asian NIEs, in addition to the U.S. and other countries.

On the whole, Thailand’s manufacturing sector’s performance has been impressive. With its ability to expand and adapt to world market conditions, the country can look forward to further diversification and growth and to resultant increased prosperity.

Taking into consideration the availability of resources and the potential of projects already underway, one may expect to following industries to grow in significance over the next decade.

Agro-based industries. At present Thailand has abundant supplies of farm produce. The advantage of establishing additional food processing industries is, therefore, apparent. Large-scale commercial livestock production offers unlimited growth potential. Other agro-based industries with good prospects include palm oil, vegetable oil, canned fruit, and paper pulp.

Non-ferrous construction materials. Thailand’s cement industry is reputedly the largest is Southeast Asia; prior to 1975, the country was a net exporter. But during the uncertain period following the oil crises, the Thai government took measures to control inflation by freezing the prices of major commodities including cement. As a result, investment in this industry was delayed, and the country became a net importer of cement. By mid-1979, however, with government encouragement, a massive expansion of capacity was underway which turned Thailand back into a net exporter of cement by 1982. Other construction materials with strong potential are aluminium, glass and ceramics. The economic boom of 1987-89 led to another surge in the construction sector.

Light machinery and equipment. Effective January1, 1987, the Thai government in July 1986, advised local passenger car assembly plants that they must use locally-produced components not less than 54 percent. This measure has helped to accelerate the production of automotive components. The prospect is further enhanced by the cooperation among ASEAN countries to expand intra-ASEAN trade which would enlarge the market for individual countries. Other activities include production of agricultural machinery, diesel engines, drilling and welding machines.

Chemical products. With current market demand, the chemical products industry is expected to expand rapidly over the next few years. Items in this group include herbicides, pesticides, acetylene black, glue gelatin and cellulose acetate.

Mineral processing industries. Developments in this sector point to future expansion of zinc, rock salt and gypsum processing facilities.

In summary, Thailand’s prospects for industrail exports in the near future appear bright. This assessment is based on five major factors: capable producers who now have a strong and flexible agricultural base; much closer contact with world markets than before; low-cost skilled labour capable of producing advanced industrail procucts; the dynamism of East Asian trade and investment growth, and a relatively well-functioning economic system free from distortion by high levels of protection or rapid inflation.

Industrial services. The technical assistance and training services provided by the Department of Industrial Promotion (DIP) serve to promote industrial development. DIP also have five regional centers in Chiang Mai, Khon Kaen, Songkhla, Chon Buri and Suphan Buri. The training and advisory services offered cover all aspects of industrial management, investment and joint-venture, industrial technology and industrial design.

Thailand has a substantial number of financial institutions, namely, commercial banks, finance companies, agricultural cooperatives, savings cooperatives, life insurance companies, pawnshops and credit fonciers. In addition, there are a number of specialized financial institutions, namely, the Government Savings Bank, the Bank of Agriculture and Agricultural Cooperatives (BAAC), the Industrial Finance Corporation of Thailand (IFCT), the Government Housing Bank, and the Export Import Bank of Thailand (EXIMBANK).

Within the organized financial markets, commercial banking is the most important institution in the Thai economy; it will likely maintain this position in the future.

With regard to the outstanding amounts of credit extended by the various institutions, commercial banks also pay the leading and most active role, accounting for 72 percent in 1992. Finance companies accounted for about 18 percent and the remaining 10 percent was shared by other institutions.

The Bank of Thailand

The Bank of Thailand was established in 1942 to act as the country’s central bank. Its function is to issue notes, act as banker to the government and other banks, act as fiscal agent of the government in its dealing with international monetary organizations, manage public debt, maintain exchange controls, supervise commercial banks and manage public credit fonciers.

As banker to the government, the Bank of Thailand holds the main accounts of the Government as well as those of government enterprises. It extends loans to the Government through the purchase of treasury bills and government bonds, and advises it regarding the formulation and implementation of monetary policy. The Bank of Thailand has three branches in the provinces-a southern branch at Songkhla, a north-eastern branch at Khon Kaen, and a northern branch at Lampang.

Under the Commercial Banking Act of 1962 and its revision of 1979, the Bank of Thailand is entrusted with supervising the commercial banks and has the power to prescribe the cash reserve ratio, the maximum rates for loans and deposits, and the ratio of capital funds to risk assets. The Bank also acts as a lender of last resort for commercial banks by giving short-term loans against government securities and making available rediscount facilities. In 1979, a repurchase market was established whereby the Bank of Thailand bought and sold government bonds with an agreement to repurchase or resell. It is considered one of the best central banks in Asia.

As of 1993, there were 15 local commercial banks with 2,700 branches, including head offices: 757 in Bangkok and 1,943 in the provinces. In addition, there were 39 overseas branches of Thai banks, and 14 foreign banks(with 2 branches) registered abroad but operating in Thailand. The commercial banking network reaches practically every town in the country.

The commercial banks in Thailand had total assets of 2,756.9 billion baht of which more than 79 percent was in the form of bill, loans, and overdrafts. Commercial bank lendings are concentrated to a large extent on manufacturing(24.3 percent), wholesale and retail trade(17.9 percent) mostly in the form of working capital financing, and imports and exports(11 percent).

The commercail banks normally provide credit in the form of overdrafts which are on a short-term basis but may be rolled over on a year-to-year basis. Due to fluctations in internet rates both in the international and domestic markets, commercial banks at present encourage customers to utilize term loans instead of overdrafts. Moreover, many commercial banks also provide guarantees for foreign and domestic loans, most of which are in the form of short and medium-term for local companies purchasing machinery and equipment from overseas manufactures.

To further improve the role of commercial banks, the Commercial Banking Act of 1979 stipulated requirements for reducing the banks involvement in non-banking activities, encouraging lending to selected sectors and promoting a better relationship between the banks and their clients.

To promote Thailand as a regional financial centre, the Bank of Thailand implemented foreign exchange liberalization and in 1993 authorized 46 commercial banks to operate International Banking Facilities by providing loans in foreign currency to foreign and local borrowers. Of these, 20 banks were newly-established foreign banks in Thailand.

Other Sources of Finance

Finance companies cannot take deposits, but they can raise funds by issuing promissory notes or similar instruments; these, in turn, are lent to business and individuals. Finance companies came into existence in 1969 and have grown rapidly, reaching a total of 91 as of December 1993. Of these, 20 companies are licensed to offer only finance services, 71 to provide both finance and securities services, and 13 to offer only securities services and 17 credit fonciers companies. Finance companies are not subject to the same interest rate restrictions as commercial banks on their promissory notes, but are subject to the same restrictions on lending rates.

Many finance companies also perform the functions of investment banks by underwriting and marketing the securities of private sector companies. While some of the larger, finance companies have been moving towards term lending, the bulk of their assets are still concentrated on short-term consumer financing and cheque discounting services. With the passing of the Finance Business, Securities and Credit Fonciers Business Act of 1979 and its revision of 1983, all finance companies are to be authorized and regulated by the Ministry of Finance and the Bank of Thailand.

Agricultural cooperatives are organized by farmers for concerted efforts in agricultural activities including the provision of credit to members, while savings cooperatives are formed on an occupational basis with most of the members being salary earners. The agricultural cooperatives obtain most of their funds from the BAAC and lend them directly to member farmers. The savings cooperatives, on the other hand, obtain their loanable funds through a payroll withholding system. The loans given by the savings cooperatives are mostly for meeting current needs, or unexpected expenses or for financing the purchase of consumer goods.

There are at present 12 life insurance companies in Bangkok with branches throughout the country. Of the different types of life insurance, endownment is the most popular, accounting for about 80 percent of all policies sold. The Life Insurance Act (1958) requires each company to maintain security deposits of two million baht and capital funds fo five million baht. It also specifies the various forms of investment into which life insurance companies may put their funds.

Credit fonciers finance the purchase of land or housing construction. They may not mobilize funds from the general public but must rely on their own resources or borrowings. There are at present 17 such companies, most of them operating in Bangkok.

The Government Savings Bank is the only wholly goverment-owned savings bank in the country. With 528 branches at the end of 1993, it has been very successful in mobilizing household savings and invests over 90 percent of its deposits in government bonds.

The Industrail Finance Corporation of Thailand (IFCT) was established in 1959. Functioning along the lines of a private development institution, it is the only industrial development bank in Thailand. Its sources of funds at present are borrowings from several institutions, namely, the Thai government, the Bank of Thailand, the Kreditanstalt fur Wiederaufban and the Japan Export-Import Bank. During the past few years, it has borrowed from the international market. Its capital, retained earnings, and debenture issues also provide loanable funds.

The IFCT makes term loans for financing fixed assets and permanent working capital. Loans are repayable up to 15 years but the average maturity is seven to eight years, including a grace period of two of three years. In addition to lending activities, it also provides specialized services to industries and has introduced securities underwriting services.

The Small Industries Finance Office (SIFO) was established in 1964 as an office in the Industrial Promotion Department of the Ministry of Industry. Its principal objective is to provide financial assistance to small industrial enterprises including cottage and handicraft industries. The SIFO’ s source of funds is limited to government budget appropriations. These funds are deposited with a government-owned bank, which supplements them at a ratio of three to one. Medium and long-term loans of up to one million baht are made at low interest rates. Approval of loan applications is given by SIFO, but collateral evaluation and lending operations are undertaken by the government bank. In 1993, the operations of SIFO were taken over by the Small Industry Finance Corporation (SIFC), with increased loan ceiling up to five million baht per borrower. The sources of funding are from the Thai Government and financial institutions.

The Government Housing Bank, established in 1953, is entirely owned by the government. Its basic function is to provide financing facilities to low-income families to obtain houses of their own. Its sources of funds are borrowings from the government, the Government Savings Bank, the commercial banks, its own capital and retained earnings, and limited savings deposits from the public.

The Export Import Bank of Thailand was established in 1994. Its basic function is to provide medium-term credit for agricultural export, long-term credit for capital goods export, export insurance service, investment guarantee for overseas investment of Thai investors and financing small and new exporters without access to commercial bank lending. The bank also finances import of machinery and equipment used for export production and import of goods beneficial to environment. Its source of funding is from the Bank of Thailand and financial institutions, local and overseas.

The Capital Market

The Securities Exchange of Thailand (SET) was established in 1974 under the supervision of the Ministry of Finance and the Bank of Thailand. In 1993, there were 347 companies listed on the SET. Its trading volume expanded rapidly in the early period of its establishment, and, recently it has become popular with offshore investors. Capital gain tax is not levied on profit on sale of listed securities on the SET. Dividends received from listed companies also receive favourable treatment.

To closely monitor and supervise the operations of SET, the Office of SET, the Office of the Securities and Exchange Commission (SEC) was established in 1992. In the same year, to give new dimension to the capital market, seven mutual fund management companies were licensed to give the general public a chance to participate in the investment through Unit Trusts.

The world sugar shortage of the mid-1970s triggered a boom in Thai cane sugar production. In 1993 sugar had an export earning of 14,820 million baht. In addition to raw cane and granulated white sugar, molasses, a by-product of sugar manufacturing, has been gaining importance. World markets have been requiring molasses in increasing quantities as an ingredient in animal feed. Additional amounts are refined locally to produce ethyl alcohol. However, due to diversification in the economy since 1987, sugar was not ranked in the top ten export earners.

Cassava cultivation on a major scale was not resumed until 1958, when it was taken up by farmers in the Northeast. Foreign demand for tapioca then increased so dramatically that Thailand is now the world’s leading exporter. Local factories process it into flour, which is used industrially, and into the chips and pellets sold as animal feed.

Thailand is the world’s largest producer of natural rubber. Production in 1993 was 1,484,000 tons earning 29,183 million baht. This substantially higher output was due largely to higher world demand for rubber products. Rubber plantations occupied mainly in the South.

Also in demand abroad are Thailand’s numerous garden variety beans. These include mung beans, soya beans and black matpe beans-the source of the famed Far Eastern beansprouts associated throughout the world with oriental cooking. The soya bean is processed into vegetable oil by domestic factories. Other crops grown for their oils inculde coconuts, peanuts, castor seeds and mint.

Canned rambutan and longan have found ready markets overseas but by far the most important of the country’s fruit exports is canned pineapple, of which Thailand is the world’s leading exporter. In 1993 canned and processed food earned 42,605 million baht.

Flowers are also an important export item. Thailand is one of the world’s biggest suppliers of orchids. There are about 2,000 commercial growers, mostly in the Bangkok area. Major markets are Japan and European countries.

In the past, beef production was a profitable farming sideline but in recent years growing demand brought about by the increase in population and urbanization and by a rising standard of living has led to specialization in livestock breeding and commercial stockfarming using scientific methods. High-quality cattle, pigs and poultry have been imported to improve local breeds through cross-breeding. It has also been shown that cattle thrive on coconut plantations if the space between the trees is planted with suitable grass.

Thailand has export markets for beef in Singapore and Hong Kong and is trying to gain entrance into the potentially large Japanese market. Increased scientific beef cattle production will also be a boon to the fast-growing leather and tanning industry.

Thailand’s wide variety of hard and soft-wood forests has created a burgeoning wood industry. Tropical evergreens, hill evergreens, mangroves, deciduous dipterocarps and mixed deciduous are processed to produce firewood, stick lac, gum benzoin, rattan used in the manufacture of cane furniture, bamboo used both for furniture and paper, dyes, tanning bark and a huge variety of medicinal herbs, leaves and roots.

Thailand’s waters are every bit as bountiful as its fields and forests. Thailand is the world’s foremost exporter of frozen shrimp; squid and cuttlefish are also popular export items. According to the Fisheries Department, a fleet of more than 16,000 powered vessels plying the waters off the country’s roughly 3,000 km. coastline approximately 2.6 million tons of marine products a year.

Freshwater fish abound. Besides the many varieties which breed naturally in rivers, lakes and streams, there are those raised by rice farmers in their flooded paddy fields and harvested together with the rice. In addition, the Fisheries Department is vigorously promoting freshwater aquaculture by farmers with large ponds. Freshwater prawns are also plentiful.

Mineral reserves in Thailand are rich and varied, with 1993 exports earning of 3,980 million baht. Tin, for centuries the biggest moneymaker among Thai minerals, remains so today, with the country ranking fourth behind Brazil, Indonesia, and Malaysia.

Gemstones, among them the legendary Siamese rubies and sapphires, have also long been mined in Thailand. Thailand’s coloured gems market is one of the world’s largest. Export of gems and jewelry in 1993 ranked third among exports, earning 40,921 million baht. In addition, many different minerals, ores and metals are being exported. The major minerals, exported, are fluorite, zinc, barite, gypsum, feldspar, antimony, lead one and dolomite.

Minerals mined but not exported include limestone, marl, lignite, potash, kaolinite, ball cay, quartz and tantalum, all of which are used by local manufacturers.

In recent years, the limelight has shifted to other modern buried treasures: natural gas and oil in the Gulf of Thailand. The country’s dependence on imported oil rose from 50 percent of the total energy consumption in 1962 to 75 percent in 1981. By producing and utilizing indigenous sources of energy for substitution, such as natural gas, lignite, hydro-power and non-conventional energy sources, Thailand has reduced her dependence on imported oil. Thus, dependence on foreign energy sources was down to 62 percent in 1993.

Natural gas and oil have been discovered in the North, Northeast, and in the Gulf of Thailand. The new Eastern Seaboard industrail centre comprises a gas separation plant, a petrochemical complex and other manufacturing facilities. Located in three eastern provinces – Chon Buri, Rayong and Chachoengsao – it covers 8.3 million hectares of land. After the successful laying of a 425 km. natural gas submarine transmission pipeline, from the Erawan gas field in the Gulf of Thailand to the onshore terminal and then to the Bang Pakong and south Bangkok power plants, the gas came on stream in 1981.

As a government-owned enterprise, the Petroleum Authority of Thailand (PTT) is engaged in the business of oil supply, oil refinery, gas pipeline operation, gas-processing plant operation and petroleum industry. With the cooperation of other government agencies, PTT has been responsible for the development and exploitation of fossil fuel resources in the country.

In 1993, farm population comprised approximately 57 percent of the total labour force. If the people indirectly engaged in agri-business industries were also included in the estimate, labour force absorption by agriculture totaled 57.2 percent.

Agriculture exports were the major source of foreign exchange earning during the 1960s and 1970s. However, as Thailand’s progress towards industrialization increased, manufactured exports gained importance. In 1993, exports of agricultural products amounted to only about 18.1 percent of total exports compared with the share of 40 percent in 1982.

Major Crops Field crops, which accounted for 50 percent of agricutural output in 1993 , increased at an annual average rate of 8 percent between 1961 and 1993. Agricutural production was still dominated by seven major crops: rice, tapioca, rubber, maize, sugar-cane, mung beans and tobacco leaves, most of which were grown primarily for export.

Since 1970 the increase in crop production have come from both the expansion of cultivated areas and improvements in yields. In response to high agricultural prices, the total area planted has continued to increase. Furthermore, farmers are switching from crops with relatively low returns per hectare to those with higher earnings. Performance, however, varies considerably: sugar-cane, rubber and tapioca yields have been increasing significantly, rice and maize yields growing slowly, and kenaf yeild declining. The trend towards crop diversification continues in response to price incentives as the proportion of cropped area devoted to rice declines.

Although the national average rice yield has remained low, a recent trend clearly indicates certain structural changes in production. At present, rice cultivation is undertaken in intensive irrigated areas, wet-season irrigated areas, and rainfed areas. Intensive irrigated areas, which enable farmers to produce at least two crops a year, increased phenomenally from 407,488 hectares in 1977/78 to 4,240,000 hectares in 1992/93. Furthermore, there is ample evidence that yields in both intensive and wet-season irrigated areas have risen sharply during the past five years. About four million hectares of paddy land now benefit from wet-season flood control to keep fields free of excess water which would damage crops. Nevertheless, the remaining six million hectares represent rice production in rainfed areas where limited access to modern technology and inputs results in low yields.

Livestock Livestock production is second in importance in the agricultural sector. Between 1988 and 1993, its share of the total GDP of agriculture declined from 1.7 percent to 1.3 percent.

The Government has been trying to improve beef and dairy production through cross-breeding and artificial insemination using high-grade stock imported from United States, Switzerland, Germany, Denmark, and Australia. LIkewise, indigenous breeds of swine have been improved through cross-breeding with pure-breds imported from aboard. The Livestock Department has set up swine breeding centres throughout the country and has conducted a nationwide artificial insemination programme.

Of all livestock raised for the market, poultry has improved the most. Pure-bred chickens are popular among poultry raisers and research in breeding and management with the aim of improving egg production and feed conversion rate has been conducted with great success. As a result, frozen chickens have become one of the country’s important exports.

Forestry A 1993 satellite photo survey showed that forest areas in Thailand had diminished to only 13.35 million hectares or about 26 percent of the country’s total land area. Thus, during 1973-1993 deforestation had claimed about 8.8 million hectares. Most of the devasted forest areas are located in the Northeast, the North, the upper part of the Central Plains and the West; where there was extensive slash-and-burn agricultural practive by villagers and illegal log poaching.

In view of the depletion of forest resources and the government’s restrictions on cutting, the growth rate of forestry output declined from an annual average of 2.61 percent during the Second Five-Year Plan (1982-1986). The Royal Forest Department undertook various reforestation projects in various areas of 607,492 hectares in 1980, 648,512 hectares in 1987 and about 1,000,000 hectares in 1993.

Fisheries Thailand’s fishing industry is dependent on marine catches. Fish from natural fresh waters, commercial fish farms, and irrigated paddy fields account for less than 10 percent of the total catch. The remainder comes from the sea.

During the Fifth Five-Year Plan (1982-1986) fishery output increased by an annual average of 2.45 percent as compared with the 4.49 percent per year during the Fourth Plan (1977-1981), 3.4 percent per year during the Third Plan (1972-1976), and 18.6 percent per year during the Second Plan (1967-1971). Depletion of marine resources during the Sixth Five-Year Plan (1987-1991) reduced fishery output so much that the government is effectively enforcing regulated fishing to ensure sustainable yields for both present and future generations. An alternative which the government has undertaken to encourage the production of fish helps to expand freshwater fish farms to offset declining marine catches. Towards this end, about 45 freshwater fishery stations have been set up.

To overcome the effect of 200-mile economic zone, the government has promoted private joint fishing ventures with foreign countries aimed at alleviating the problem of limited fishing sources, in addition to private joint ventures in the waters of Indonesia, Malasia, Bangladesh, Australia, India, Vietnam, Cambodia and Myanmar. Further expansion of such joint ventures holds bright prospects.

Mining The mining industry in Thailand is dominated by tin. However, with later developments, the output of other minerals such as fluorites, gypsum and lignite has become more prominent. In addition, significant increases in the output of a number of other minerals such as iron, antimony, manganese and lead have been achieved. During the Third Five-Year Plan (1972-1976), new mineral deposits were found and output expanded to include tungsten (wolfram and scheelite), barite and zinc. The value of zinc production rose from 377.4 million baht in 1984 to 1,974 million baht in 1993. Mineral output in Thailand to a significant extent depends on foreign demand as domestic consumption remains low.

During the past decade, the mining sector expanded slowly. Its share in the total Gross Domestic Product remained fairely stable at about 2.5 percent.

Several important factors have contributed to the country’s enviable growth. Its principal comparative advantage has been the abundance and diversity of its natural resources. Blessed with large expanses of fertile land and ideal growing conditions, Thailand not only enjoys agricultural self-sufficiency but is also the only net food exporter in Asia and one of the largest food exporters in the world.

Growth and diversification into new industrial areas have to a large extent been initiated by the dynamic private sector. Innovative private enterprise broadened the nation’s agrarian base by exploiting the value-added potential of basic staple crops, and at the same time expanded into new product areas in response to world demand. With the government providing infrastructural support and exerting relatively limited control over private industry, a free enterprise system has emerged which has allowed development to take place at a rapid rate consistent with the needs and resources available.

With its agrarian base as the bedrock, the economy has experienced steady growth. The introduction of improved technology and marketing expertise has made Thailand a world leader in the sales of staple commodities. It has also transformed the country into a fast-rising manufacturer of sophisticated products built to international standards which find ready acceptance in world markets.

Thailand’s primary money earners in the late 1970s were the crops grown on its rich land. Today agricultural products are produced in such quantities that in many commodities the country ranks as the world’s number on supplier. Thus besides being the world’s foremost exporter of tapioca and rice, it is a leader in the production of frozen shrimp, canned pineapple, natural rubber and sugar. Moreover, Thailand’s industrial sector produces a wide number of goods ranging from textiles including the famous Thai silk and ready-made garments to integrated circuits, plastics, jewelry, footwear, knocked-down furniture and fibre-glass yachts. In recent years in fact, manufacturing has surpassed agricultural products in Thailand’s GNP, while tourism has replaced agricultural products as Thailand’s largest source of foreign exchange. The country’s rich reserves of minerals are eagerly sought by the world’s industries. In recent years, local factories have been established to manufacture industrial goods from the ores and thereby enhance their value.

With permission from : The National Identity Office, Office of the Prime Minister, Royal Thai government. (1995). Thailand in the 90s. Bangkok: Amarin Printing and Publishing Public Company Limited.

Customs

One of the most distinctive Thai customs is the wai, which is similar to the Indian namaste gesture. Showing greeting, farewell, or acknowledgment, it comes in several forms reflecting the relative status of those involved, but generally it involves a prayer-like gesture with the hands and a bow of the head.

Physical demonstrations of affection in public are common between friends, but less so between lovers. It is thus common to see friends walking together holding hands, but couples rarely do so except in westernized areas.

A notable social norm holds that touching someone on the head may be considered rude. It is also considered rude to place one’s feet at a level above someone else’s head, especially if that person is of higher social standing. This is because the Thai people consider the foot to be the dirtiest and lowest part of the body, and the head the most respected and highest part of the body. This also influences how Thais sit when on the ground — their feet always pointing away from others, tucked to the side or behind them. Pointing at or touching something with the feet is also considered rude.

It is also considered extremely rude to step on a Thai coin, because the king’s head appears on the coin. When sitting in a temple, one is expected to point one’s feet away from images of the Buddha. Shrines inside Thai residences are arranged so as to ensure that the feet are not pointed towards the religious icons — such as placing the shrine on the same wall as the head of a bed, if a house is too small to remove the shrine from the bedroom entirely.

It is also customary to remove one’s footwear before entering a home or a temple, and not to step on the threshold.

There are a number of Thai customs relating to the special status of monks in Thai society. Because of their religious discipline, Thai monks are forbidden physical contact with women. Women are therefore expected to make way for passing monks to ensure that accidental contact does not occur. A variety of methods are employed to ensure that no incidental contact (or the appearance of such contact) between women and monks occurs. Women making offerings to monks place their donation at the feet of the monk, or on a cloth laid on the ground or a table. Powders or ungents intended to carry a blessing are applied to Thai women by monks using the end of a candle or stick. Lay people are expected to sit or stand with their heads at a lower level than that of a monk. Within a temple, monks may sit on a raised platform during ceremonies to make this easier to achieve.

Cuisine

Thai cuisine is famous for the blending of four fundamental tastes:

* sweet (sugar, fruits, sweet peppers)
* spicy hot (chilies)
* sour (vinegar, lime juice, tamarind)
* salty (soy sauce, fish sauce)

Most of the dishes in Thai cuisine try to combine most, if not all, of these tastes. It is accomplished by using a host of herbs, spices and fruit, including: chili, cumin, garlic, ginger, basil, sweet basil, lime, lemongrass, coriander, pepper, turmeric and shallots.