FTI urges swift Thai coalition to back high-tech hub and green growth

The Federation of Thai Industries (FTI) is preparing a position paper outlining the economic policies favoured by businesses, with plans to submit it to the newly formed government once it takes office. Montri Mahaplerkpong, the FTI vice-chairman, stated that the paper is in its final stages and should be approved by the end of the month.

The document will highlight the private sector’s expectations from the new government, urging the Move Forward and Pheu Thai parties, which secured the most votes in the recent election, to expedite the formation of a coalition government. This will enable the continuation of key economic policies initiated by previous administrations, such as the Eastern Economic Corridor scheme, which aims to transform parts of Chon Buri, Rayong, and Chachoengsao into high-tech industrial hubs.

In addition, the FTI seeks the promotion of electric vehicle production and consumption, as well as support for bio-, circular, and green economic development, which was declared a national agenda item by the Prayut Chan-o-cha administration.

Montri said…

“If things go smoothly, the appointment of a new cabinet should be made in early August. A delay in forming the government will affect budget planning for the new fiscal year.”

He emphasised the need for government spending to stimulate Thailand’s economy and urged authorities to remove barriers to investment and trade, as well as to enhance the country’s competitiveness. Thailand’s ranking in the International Institute for Management Development’s World Competitiveness Ranking dropped to 33rd out of 63 economies in 2022, down from 28th in 2021, partly due to the pandemic’s impact.

According to the FTI, expensive electricity prices and a policy to increase the daily minimum wage are among the issues that affect the country’s competitiveness. The federation reported that April’s Thailand Industry Sentiment Index (TISI) fell for the first time in four months to 95 points, down from 97.8 points in March. The decline was attributed to a drop in goods purchase orders overseas as the global economy cooled, along with many days off during the Songkran festival that decelerated manufacturing.

Expensive power bills and interest rate hikes were major concerns among the 1,164 companies surveyed to compile the April TISI, reported Bangkok Post.