20-7-2023 (BANGKOK) The suspension of Move Forward Party (MFP) leader Pita Limjaroenrat from his duties as an elected member of the House of Representatives has raised concerns among Thailand’s business community about the possibility of widespread street protests. The Constitutional Court’s ruling is a major setback for Mr Pita’s leadership aspirations, despite his party’s impressive electoral victory.
Nath Vongpanich, president of Central Restaurants Group (CRG), said that while politics is not the primary factor influencing the expansion of their restaurant and beverage business, he hopes for the appointment of a new prime minister as swiftly as possible to effectively manage the country. He believes political stability is one of the vital factors in attracting foreign investment.
Praphon Potivorakhun, deputy managing director of Mitsubishi Electric Kang Yong Watana, a joint venture between Thai and Japanese companies that distributes and markets Mitsubishi electrical appliances, expressed concern about possible street protests. He fears that such rallies could negatively impact the pace of the country’s economic recovery.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), expects the Pheu Thai Party to lead a new government and resume or start plans to drive the economy. He believes that a prime ministerial candidate from the Pheu Thai Party will be nominated and eventually get the top job in the administrative branch. However, he said he is not worried about the change and its political impact as long as the process to set up the new government still follows the timeline.
Asia Plus Securities (ASPS) said the political situation will become clearer once the new government is formed and starts working next month. “The political situation is becoming more predictable, so the SET index has a more limited downside,” the brokerage noted. If the Pheu Thai Party and the original eight-party coalition form a new government, the SET index is expected to be at around 1,545-1,560 points.
Prakit Siriwattanaket, managing director of Merchant Partners Asset Management, said that after the Constitutional Court’s order, there are many questions along with risks that investors need to be aware of. “The risks are that political rallies will come in waves, with both small and large rallies. This is my personal opinion, not related to the company.”
Visit Limlurcha, president of the Thai Future Food Trade Association and honorary president of the Thai Food Processors Association, said the private sector has reiterated calls for the swift establishment of the government, regardless of who becomes prime minister or which factions form the new government. “If the formation of the government can be accomplished within August, it would still be within the expected timeline. Although there might be some delays, overall the economy can still move forward,” he said.
