FTI urges Thai PM for definitive strategy, not just lower energy costs

The Federation of Thai Industries (FTI) called for a more definitive strategy and concrete plans from Prime Minister Srettha Thavisin, rather than just a pledge to lower prices. The FTI’s focus is on energy costs, particularly oil and electricity, as they have an impact on both businesses and households.

During a two-day parliamentary debate on the Pheu Thai-led coalition government’s policies which concluded today, Thavisin emphasised remedies including a 10,000 baht digital handout and decreased energy costs, to aid Thailand’s recovery from various economic challenges.

Montri Mahaplerkpong, the FTI’s vice-chairman, remarked, that the government cannot simply get the job done by reducing power bills. It has to clarify how to restructure energy prices.

Previously, the business sector requested the government to consider alterations to the energy price structure to decrease electricity costs. FTI Chairman Kriengkrai Thiennukul stated that while the government’s new attempts to reduce oil and electricity prices are appreciated, they are only short-term solutions and aren’t sustainable.

Kriengkrai added that a sustainable energy price structure has levels that enable Thai businesses to better compete with other countries. There is no need to frequently adjust energy prices.

The FTI is currently examining energy prices with plans to suggest short and long-term solutions to the government, along with other measures to manage economic issues and support the 45 industries under the FTI, according to Kriengkrai. These proposals are expected to be finalised early next month.

Kriengkrai indicated that energy prices are an urgent issue as global oil prices are likely to increase while the value of the baht may fall, which could result in higher oil prices in Thailand in the cool season.

The FTI announced today that the Thailand Industry Sentiment Index fell for the second consecutive month to 91.3 points in August, down from 92.3 points in July, due to the global economic slowdown, weak purchasing power in key trading partners like the US, Europe and China, and the inconsistent Thai economic recovery.

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