Post-election challenges for Thais and new government
With more than 95% of the votes in the May 14 general election counted and the opposition on the path to forming Thailand’s new government, attention must turn to strengthening the country's economy, attracting domestic and foreign investment, and alleviating concerns among the Thai population about its stability, Thanawat Polvichai, director of the University of the Thai Chamber of Commerce's Centre for Economic and Business Forecasting, said today.
If the government has clear policies and strong political stability, the country will have a robust foundation for implementing clear and sustainable policies, Thanawat added. The new government must therefore focus on policies that drive the economy, with priority given to economic recovery through tourism and strong exports, both of which are showing positive signs due to the global economic recovery.
Furthermore, it is crucial to develop various public infrastructure systems without burdening the people with excessive costs of living. Competitiveness must be enhanced to compensate for the loss of the country’s competitive edge due to a declining birth rate and weaker purchasing power. The government must utilise the existing workforce to boost productivity, and produce quality goods and services which meet local and foreign demands. Attracting more foreign investment and skilled labour to facilitate technology transfer and turn the country into a major production base is also necessary. First, though, the government must revise its business and investment laws to accommodate foreign investors and support infrastructure development projects that will enhance Thailand's competitiveness in the international arena.
While it is imperative that the country focuses on a shift towards new industries, such as the digital industry and the service sector in the next 3-4 years, there are concerns about whether there will be adequate political stability to carry out the vital business, economic and social policies to drive the country forward without major disruptions, Thanawat said.
What will really drive sustainable growth in the Thai economy is reducing social disparities. To achieve this, the government must promote secondary and tertiary cities in various provinces, allowing the younger generation better access to business loans and opportunities to earn more income. Furthermore, it should encourage environmentally friendly businesses, particularly those in the fields of healthcare, waste recycling, and green businesses that align Thai products with market demands for more environmentally friendly goods, Thanawat added
