Bangkok: The Thai Chamber of Commerce has identified a structural trap hindering the Thai economy, advocating for targeted support for vulnerable groups and the development of new industries to address ongoing crises. Mr. Wisit Limluecha, Vice Chairman of the Chamber, shared these insights during an interview on the Good Morning ASEAN program on MCOT News FM 100.5. He highlighted that Thailand's economic progression within ASEAN is hampered by structural issues and energy pressures. Despite the availability of a "500 billion baht loan," he cautioned that borrowing alone is not a solution, even as the public debt ceiling offers room for up to 800-900 billion baht in borrowing. The critical challenge, he emphasized, is the effective utilization of these funds.

According to Thai News Agency, Mr. Wisit suggested that borrowing should be seen as a short-term measure, akin to the strategies employed during the COVID-19 pandemic, to bolster the economy and instill confidence amidst global economic slowdowns, international conflicts, and rising energy costs. He specifically noted the impact of the situation in Iran on oil prices, a significant concern for Thailand as a net oil importer.

Mr. Wisit stressed the importance of "targeted" funding, urging that vulnerable groups such as bedridden patients be prioritized. He also advocated for supporting individuals with business potential to stimulate economic circulation and aid SMEs facing challenging conditions. While short-term stimulus measures are essential, Mr. Wisit underscored the need to focus on medium- and long-term goals, advocating for economic restructuring that shifts from price competition to innovation-driven value creation. This approach, he argued, would enhance competitiveness and liberate Thailand from the constraints of traditional industries facing rapid technological changes.

From a financial perspective, Mr. Wisit expressed confidence in borrowing, provided there are clear plans for fund utilization. He noted that Thailand's public debt is not worrisome, especially as most borrowing occurs domestically, which presents a lower risk.

Discussing alternatives, Mr. Wisit acknowledged the challenges of raising taxes during an economic downturn, given Thailand's narrow tax base. He mentioned the government's efforts to expand the tax base gradually through digital systems. He also touched on the feasibility of discriminatory taxes, such as those on land or luxury goods, suggesting they may be more appropriate during an economic recovery phase.

In conclusion, Mr. Wisit likened the current economic scenario to being "adrift in water," stressing the urgency for the government to provide immediate financial "lifebuoys" while simultaneously preparing long-term solutions like reducing logistics costs and restructuring the economy to ensure sustainable progress.