5-7-2023 (BANGKOK) Business leaders are anticipating a smoother path for the Move Forward Party (MFP) and its seven political allies to establish a government and address economic challenges after reaching a resolution on the House speaker position.
A conflict had arisen between the MFP and the Pheu Thai Party regarding the appointment of the House of Representatives’ top job, as both parties desired their MPs to assume the role.
However, they managed to resolve the dispute on Monday with the commencement of the new parliamentary session.
Wan Muhamad Noor Matha, a 79-year-old leader of the Prachachat Party, was chosen as the House speaker, which is viewed as a compromise between the two parties.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, stated that the selection of the House speaker indicates that all eight parties remain united, adhering to the goals outlined in their memorandum of understanding, with the common objective of proposing MFP leader Pita Limjaroenrat as the new prime minister.
He emphasized that the government formation process is progressing in accordance with democratic principles.
With the House speaker matter now resolved, attention will shift to the prime ministerial selection, according to Mr. Sanan.
“We must closely monitor every step of the prime ministerial selection process. If a new government can be formed without protests and establishes stability, the economy should be able to recover quickly, aligning with the positive economic outlook predicted by various agencies,” he remarked.
“The World Bank recently upgraded Thailand’s growth forecast for this year from 3.6% to 3.9%.”
Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, expressed approval of the House speaker appointment, noting that Mr. Wan Noor is regarded as a seasoned politician and a neutral figure capable of collaborating with all political parties.
“I hope the process of selecting the prime minister and forming a cabinet will proceed smoothly,” he added.
The business sector seeks a conflict-free and stable political environment, which is crucial for fostering investor confidence, emphasized Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI).
Since the general election on May 14, both Thai and foreign investors have closely monitored the successor to Prime Minister Prayut Chan-o-cha.
The political situation is among the topics to be discussed at the scheduled meeting of the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) today, in addition to domestic and international factors influencing the economy, as stated by the FTI, a key committee member.
The slowdown in exports is another significant concern for manufacturers and exporters, the federation pointed out.
In May, the value of customs-cleared exports declined for the eighth consecutive month, dropping by 4.6% to US$24.3 billion.
The FTI anticipates zero export growth for Thailand this year, with a worst-case scenario of a 1% contraction.
The federation intends to propose the establishment of a panel within the JSCCIB to expedite a plan for exporting plants to the Gulf Cooperation Council.
