Bangkok: Academics and the private sector are expressing concerns over the economic issues arising from the current political upheaval. They are advocating for the swift implementation of the 2016 budget to support small and medium enterprises (SMEs) and revitalize the border economy, which has been adversely affected by the political situation.
According to Thai News Agency, Assoc. Prof. Dr. Montree Soktiyanurak, Director of the Executive Management Program at the National Institute of Development Administration (NIDA), highlighted the political scenario, which includes a royal proposal to dissolve parliament. The People’s Party has shown support for Anutin as the new prime minister. This has led to a societal expectation for the Speaker of the House of Representatives to await a potential royal resolution during the proposed dissolution. Despite the political transition, there are pressing economic issues that need immediate attention.
The potential formation of a new government within a four-month period following parliament’s dissolution presents both challenges and opportunities. Amidst an economic slowdown and a budget deficit of 800 billion baht for 2016, there is optimism for accelerated investment. However, sluggish exports, impacted by a 19% US tariff, pose additional challenges. The Ministry of Finance, Commerce, and Industry must prioritize measures to assist SMEs and the public, as the Thai economy faces substantial hurdles.
Mr. Saengchai Thirakulwanich, Strategy Chairman of the Thai SME Federation, emphasized the fragility of the Thai economy. GDP growth projections for 2025 suggest a mere 2 percent increase, the lowest in ASEAN, while neighboring countries anticipate higher growth rates. Saengchai likened Thailand’s economic path to running on dusty dirt roads compared to the concrete roads of its neighbors. He urged the government, even in a caretaker capacity, to implement strategies supporting small businesses and revitalizing the Thai-Cambodian border economy. He stressed the importance of attracting foreign workers and leveraging technology and AI for business development, while acknowledging the urgency of addressing political issues without neglecting the public’s livelihood.