14-6-2023 (BANGKOK) The private sector in Thailand has expressed apprehension regarding any delay in the formation of a new government, citing potential adverse effects on the economy. Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, stated that both Thai and foreign investors are closely monitoring the efforts of political parties to establish a new government.
“The private sector is eager for a swift formation of a new government. Any delays could impede economic progress,” warned Mr. Sanan. He further noted that the formation of the new government might not be realized until September, with estimations suggesting that it may not come into shape until August.
Concerns are particularly high among Chinese investors, who make up a significant portion of foreign companies seeking promotional privileges from the Board of Investment. These investors are closely observing the formation of the new government and awaiting clarification on its policies and potential impact on foreign investments, explained Mr. Sanan.
“The expeditious formation of the new government is in the best interests of the country,” emphasized Mr. Sanan.
In addition to the government formation concerns, Mr. Sanan highlighted the growing interest in joint investments between Thailand and Saudi Arabia. Investors from both countries are seeking collaboration on several projects, while more than 200,000 tourists from Saudi Arabia are expected to visit Thailand this year.
Meanwhile, Pita Limjaroenrat, leader of the Move Forward Party, and the party’s economic team met with Sangchai Theerakulwanich, President of the Federation of Thai Small and Medium Enterprises, to discuss policies aimed at benefiting the grassroots economy. Mr. Sangchai expressed satisfaction with the exchange of ideas, and Mr. Pita noted in the federation’s visitors’ book that he was pleased to collaborate with Thai SMEs to build a strong and equitable economic system.
Supant Mongkolsuthree, Deputy Leader of the Thai Sang Thai Party, expressed concern over mounting debt problems and bad loans among the public, particularly car loans. Mr. Supant, a former chairman of the Federation of Thai Industries, revealed that over 90,000 cars had been seized by finance companies in the first five months of the year due to loan defaults. Currently, there are over 180 billion baht in unpaid car debts, and the National Credit Bureau warned that approximately 1 million cars might be seized over the next four months.
Mr. Supant emphasized the urgency for the new government to address this loan crisis, as the longer the power vacuum persists, the greater the challenges people will face. Rising debts and limited opportunities for new income streams are expected consequences. He also lamented the lack of economic stimulus since the election.
The public and businesses have been urging the Election Commission (EC) to swiftly endorse the election results, as prolonged political uncertainty undermines investor confidence and hampers the economy. The coalition partners of the Move Forward Party, which secured the most votes in the May 14 election, are also pressuring the EC to expedite the endorsement process to expedite the government formation.
However, EC Chairman Ittiporn Boonpracong previously stated that the results are likely to be endorsed well before the mid-July deadline.
