Thai executives warn against fiscal burden increase: SET survey
The Stock Exchange of Thailand (SET) has published a survey in which top executives from Thai listed firms have urged the government to avoid amplifying the nation’s fiscal burden and distorting markets. The executives also proposed more involvement from the private sector in policymaking. The survey, titled Economic Outlook 2023 to 2024, was the work of the SET’s research department and collaborating partners.
The survey, which spanned from August 16 to September 30, gathered responses from executives of 68 companies across 21 business sectors, representing 26.2% of the SET’s market capitalisation as of October 31. It revealed that the majority of the CEOs project slower economic growth than their earlier prediction of 2.3% for this year, with an anticipated improvement to 3.4% in 2024.
“Tourism, fiscal policy, government expenditure, and domestic political stability are predicted to be the key drivers of Thailand’s economy in 2023 and 2024. On the other hand, domestic political stability, purchasing power, and exports pose as risk factors.”
The survey also indicated an optimistic outlook for business revenue in 2023, with 53% of respondents forecasting a growth of 10% or more, and further growth expected in 2024. The executives also anticipate an improvement in net profit for both 2023 and 2024, reported Bangkok Post.
Investment levels are projected to rise in 2023 and 2024, with 56% of respondents predicting additional investment in 2023 and 73% anticipating more investment in 2024, said the SET.
“For this year, the respondents have expressed considerable concern over fuel inputs, raw material costs, and consumer purchasing power. They believe that reopening the country to stimulate the economy and prioritising sustainable development will be beneficial for their companies.”
The executives have advised the government to formulate economic development policies that are sustainable and speed up the establishment of a new economic engine. They also stressed the need to enhance the existing economic engines and the competitiveness of the private sector and to promote fair competition in every industry.
The survey noted that executives are in favour of policies that do not distort the market and align with the economic environment.
“The private sector should also be encouraged to contribute to policy proposals, expedite reforms of outdated laws and regulations, and foster the potential and competitiveness of the country.”
The SET also suggested that the government should endeavour to secure political stability, which would enhance foreign investors’ confidence and aid in attracting foreign investment, thus promoting Thailand as a regional hub.
