Private sector hopes to see a new PM elected soon
FTI, TCC and leading businesses stress the need for a new prime minister and cabinet to be chosen quickly so planned economic measures can continue
The business sector is hoping that Parliament will soon elect a new Prime Minister so that the government can continue its economic policies, including the 10,000-baht digital money handout and launch of new state-owned securities Vayupak Fund.
The Constitutional Court on Wednesday voted 5:4 to remove Srettha Thavisin as PM over the appointment of Pichit Chuenban as PM’s Office minister, despite knowing that the appointee was disqualified for the post as he had been jailed in 2008 for bribery.
Kriangkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), noted on Wednesday that the court’s ruling has stunned investors and forced them to put their investments on hold.
He pointed out that investment has been delayed for 84 days since the case began, with stakeholders waiting to see how the situation evolves. While the situation is being closely monitored, the impact varies across different industries.
Kriangkrai added that the Srettha government came into power nearly a year ago at a time of global challenges, including trade wars, geopolitical issues and unprecedented shifts in production bases.
Nevertheless, Srettha managed to adapt quickly and started to address the issues within four months of taking the post.
Thai Chamber of Commerce (TCC) chairman Sanan Angubolkul said on Wednesday the election of a new PM and appointment of Cabinet members would take at least a month.
He hoped the government would complete this process as soon as possible so any pending policies can progress, mentioning the digital wallet scheme, the new Vayupak Fund and disbursement of the government budget.
He estimated that Srettha’s ouster would not affect this year’s economic expansion, which the Finance Ministry has predicted at 2.4% year on year.
“The Chamber of Commerce wants to see politics moving forward with stability as soon as possible, since addressing people's immediate economic concerns is crucial and needs urgent resolution,” Sanan said. “We hope that the political parties, through the parliamentary system, will work together under democratic processes to return Thailand to a fully empowered government capable of effective administration.”
Paiboon Nalinthrangkurn, CEO of TISCO Securities and president of the Investment Analysts Association, said that Srettha’s removal could cause a temporary vacuum in policies that the government has been pushing.
“The capital market is waiting to see how the new Prime Minister and Cabinet will change things. We need to assess how much of this year's budget will be disbursed and whether the government's flagship policies will continue to move forward,” he said.
Paiboon believed that economic policies should be able to progress as planned if the Pheu Thai Party still remains the core power in the government coalition.
“No matter who the new PM will be, planned campaigns like digital wallet and Vayupak Fund should be able to continue, and the Thai capital market in the last quarter of this year should bounce back in line with recovering global investments,” he added.
