3-6-2023 (BANGKOK) The Move Forward party, which emerged victorious in Thailand’s recent general election, is committed to enhancing welfare spending and raising the minimum wage, while simultaneously focusing on economic growth by promoting competition and combating corruption, according to the party’s finance minister-designate.
As Southeast Asia’s second-largest economy, Thailand experienced a modest 2.6% growth last year as it gradually recovered from the impact of the Covid-19 pandemic. However, the nation has consistently lagged behind regional counterparts such as Vietnam and Indonesia, partially due to prolonged political unrest.
Move Forward, a progressive party that resonates strongly with young urban voters, aims to lead a coalition government following its success in the May 14 election, which signified a widespread desire to end the military’s decade-long rule and military-backed governments.
Nevertheless, the party’s plans to raise the minimum wage by 27% to 37% have raised concerns among some businesses. Sirikanya Tansakul, the head of Move Forward’s economic team and the party’s choice for finance minister, emphasized that addressing household debt would be a primary focus.
“Our top priority is tackling household debt,” stated Sirikanya during an interview with Reuters. Thailand has one of the highest household debt to gross domestic product ratios in Asia, with one in every three of its 66 million citizens burdened by debt.
To alleviate the situation, Sirikanya proposed assisting households with utility bills and providing incentives to small businesses. She further advocated for a 5% annual growth in household income, believing that a robust grassroots economy would positively impact overall economic conditions.
While Sirikanya’s appointment as finance minister is not yet guaranteed due to the constitutional advantage held by the party’s military-affiliated rivals, she expressed confidence in Move Forward’s ability to form a viable coalition.
Emphasizing their pro-market stance, a Move Forward government would promptly increase the minimum wage. However, Sirikanya acknowledged the concerns of the private sector and stressed the importance of supporting businesses during the implementation process.
Economists have welcomed the prospect of reforms under Move Forward’s leadership, considering the party’s commitment to market liberalization and efficiency promotion. Professor Pavida Pananond from the Thammasat Business School described Move Forward’s policies as “constructive” for the sluggish economy, suggesting that a gradual approach to their implementation would be appropriate.
To offset the higher welfare spending, Move Forward aims to streamline taxation, introduce new taxes, and reduce corruption. Sirikanya emphasized the need to reorganize the budget and eliminate unnecessary expenditures.
Additionally, the party intends to open up sectors to competition, including the alcohol industry, which is currently controlled by two of the wealthiest families in the country. By seeking fairer competition and greater efficiency, Move Forward aims to create a more dynamic market environment.
As Thailand looks towards the future, the policies proposed by Move Forward offer a vision of economic progress with a focus on social welfare, market competition, and transparency.
