Incoming government must urgently address economic challenges: TCC
The Thai Chamber of Commerce will urge the new government to expedite addressing the people's economic challenges through stimulus policies, as the Thai economy has slowed due to reduced consumer spending.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce and Board of Trade, said the private sector is closely monitoring the progress of government formation. However, the crucial factor is the stability of the government, which must have sufficient and strong support to drive policies and ensure continuity.
In taking stock of the current situation, the Thai Chamber of Commerce is confident that the country could have a new government by September, noting that Thailand needs a new government as soon as possible to boost economic recovery, and restore investors' confidence.
The urgent priority that must be addressed immediately is resolving the public’s problems through economic stimulus policies, reducing the cost of living, and lowering costs for the private sector including fuel and electricity expenses, which remain high. Additionally, the new government needs to enhance the tourism sector, a main driver of Thailand's economy, in the upcoming high season.
This includes facilitating visa procedures for Chinese tourists, increasing flight capacity to accommodate the expected rise in tourists, accelerating the budget for fiscal year 2024 to ensure continuity in driving various national plans, as well as boosting investor confidence to attract new foreign investments, which will aid job creation and benefit future export figures.
In the medium term, planning and mitigating risks from severe droughts are necessary to support the needs of the agriculture, service, and industrial sectors, Furthermore, the government needs to continue with trade agreements with various countries, particularly in accelerating new market expansion, such as the Thailand-EU Free Trade Agreement and others, to enhance Thailand's competitiveness on the global stage, Sanan said.
In the long term, it will be crucial to start building a solid foundation of knowledge and understanding across all sectors about prioritising environmental and sustainable issues. Global trade standards have now evolved to include environmental and social aspects, becoming trade barriers to which Thailand must adjust promptly. This especially means promoting BCG (Bio-Circular-Green) and ESG (Environmental, Social, and Governance) directions with international formats and standards, Sanan added.
