Bangkok: Amidst global economic volatility and domestic pressures, Dr. Bundit Nijthavorn, Chairman of the Public Policy Foundation for Society and Good Governance and former Deputy Governor of the Bank of Thailand, clearly indicates that Thailand's major challenge today is not just accelerating economic growth, but maintaining stability and building long-term confidence.
According to Thai News Agency, the Thai economy is grappling with structural challenges, such as high levels of household debt, below-potential growth, and policy uncertainty, which undermine investor and public confidence. Dr. Bandhit emphasized that stability is not an obstacle to growth, but rather a "condition" for sustainable growth. If economic policies lack prudence or a clear framework of discipline, risks will accumulate and become a cost the country must pay in the future.
In a world where capital moves quickly, confidence is the most important asset. Transparent policymaking, good governance, and sound economic principles build confidence among both domestic and foreign investors. Conversely, uncertainty or unclear policy signals increase the 'cost of risk' for the overall economy.
Thailand needs to look beyond short-term solutions. Key reforms include enhancing labor productivity, restructuring the economy towards high value-added activities, managing debt and budget with discipline, and strengthening governance systems in the public sector. While these reforms may not yield immediate results, they are a crucial foundation for stable growth.
The Thai economy today faces a crucial choice: focusing on addressing immediate problems or laying a long-term foundation. In Dr. Bandhit's view, the answer lies in adhering to the principles of discipline, stability, and good governance. Countries that maintain credibility will have more room and opportunity for growth than those that allow risks to accumulate without addressing them. In a volatile world, policy stability may be the most important driving force for the Thai economy in the coming period.