The cabinet on Monday approved a 200 million baht budget for providing assistance to victims of the earthquake and subsequent tsunamis that have devastated northeast Japan, and will send a medical team and supplies to help rescue efforts.

The cabinet met on Monday to approve a budget for relief and rescue assistance in Japan. The 200 million baht is for "administrative costs".

It resolved to send 10,000 tonnes of Jasmine rice and 5,000 tonnes of glutinous rice to Japan, a team of medical personnel and medical supplies.

Prime Minister's Office Minister Ong-art Klampaibul said the government is ready to deliver the package as soon as possible.
 
Before the meeting, Deputy Prime Minister Suthep Thaugsuban said a proposal to send cooked food to help tsunami victims in Japan would also be discussed during the meeting.

Mr Suthep said the South of Thailand, hit by a tsunami on Dec 26, 2004, now had a good warning system. Tsunami warning towers had been installed along the beaches.

However, evacuation drills need to be held regularly in the region, he added.

Bank of Thailand (BOT) assistant governor Krirk Vanikkul said the natural disaster in Japan will not affect financial institutions in Thailand.

Mr Krirk said the economic impact from the 8.9-magnitude earthquake and the devastating tsunamis in Japan would be minimal, as the total amount of loans between the two countries was quite small.

The central bank will continue monitoring the effect on the overall economy, which will be greater on the economic sector, he said.

Kasikorn Research Centre said the massive quake and tsunamis in Japan should have only a small affect on the Thai economy.

The KRC said the negative impact on Thailand would likely cause gross domestic product growth to drop by only 0.1 per cent, and other positive factors would compensate for this.

There would be no need to adjust the country's economic growth projection for this year. The disasters damaged many of Japan's major airports and seaports and would briefly disrupt trade between the two countries, the leading think tank said.

It said Thai producers of auto parts and electronic products might receive fewer sales orders from Japan. Manufacturers who import Japanese goods and raw materials might face a delay in deliveries.

Source: Bangkok Post