Next government should focus on energy-price reform, business association says
The next government should focus on energy reform to ensure lower natural gas prices so that manufacturers and other entrepreneurs can be more competitive globally, Thailand’s most powerful business lobby group said on Wednesday.
High energy prices continue to be a major concern for all businesses, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said in its monthly report card on the Thai economy.
The JSCCIB comprises Thailand’s three largest business associations: the Federation of Thai Industries, the Thai Chamber of Commerce and the Thai Banking Association.
Although global prices for natural gas have fallen, the price in Thailand remains high because the country's reference price does not match seasonal demand trends, said Kriengkrai Thiennukul, chair of the Federation of Thai Industries and a joint chair of the JSCCIB.
He advised the next government to align the way it imports natural gas with demand trends to avoid excessive imports.
Kriengkrai also urged the next government to form a joint energy committee with the private sector so both sides can work together to find the best way to set energy prices.
The private sector is ready to work with any elected government and expects the new one to implement policies that will revitalise the economy and focus on supporting small and medium-sized enterprises, he said.
Hopefully, the next government will make implementing the JSCCIB’s plan to cut costs and increase the country's competitiveness a priority, Kriengkrai said.
Its March report card on the Thai economy maintains its growth forecast for this year at 3.0-3.5%.
It expects a slight contraction in exports but says this will be offset by the stronger-than-expected recovery in tourism as well as promising growth from China.
