Thai business leaders grill PM Paetongtarn on economic rescue

Thai business leaders and economic gurus are turning up the heat on Prime Minister Paetongtarn Shinawatra, urging immediate and long-term strategies to avert an economic catastrophe. Top of their list? Comprehensive debt restructuring, help for the low-income earners, and bolstering small and medium-sized enterprises (SMEs) against the foreign online trading juggernauts.

In a dramatic parliamentary session yesterday, September 15, the 38 year old Thai PM unveiled a bold ten-point action plan. The highlights are slashing energy prices, lowering public utility fees, rolling out the much-anticipated Pheu Thai Party’s digital wallet handout, and overhauling visa processes to lure more tourists.

Economist Vorapol Sokatiyanurak didn’t mince words, calling for rapid economic policies to alleviate public suffering.

“We’re moving into an era of AI-driven hardware.”

Vorapol declared, stressing the need for speedy adaptation to the digital economy. Thailand’s growth numbers are bleak—an 8% average from 1980-2000 has plummeted to just 2% since 2020.

“Remember the 2011 floods?”

Private sector

Vorapol says that was the turning point. The disaster disrupted Thailand’s role as a global production hub and triggered a decline in foreign direct investment (FDI). The country’s failure to adapt swiftly has left it lagging in the global market.

Chanavat Uahwatanasakul of Central Pattana Plc hailed PM Paetongtarn’s policies, particularly the focus on tourism. He called for policy consistency, assuring that the private sector is ready to collaborate, endorsing the digital wallet handout to boost consumer spending.

“Thailand has everything to be a regional tourism hub. A tax cut on luxury goods will enhance our image.”

Kobsak Pootrakool, Chairman of the Federation of Thai Capital Market Organisations, threw his weight behind short-term stimuli like the 10,000-baht handouts and electricity tariff cuts, pushing for clear investment policies to revive the economy and restore investor confidence.

“We need easily accessible funds for those in dire need.”

Somchai Lertsutiwong of Advanced Info Service emphasised the dire need for comprehensive debt restructuring and utility fee reductions to drive sustainable growth. Jaymart Mobile’s Dusit Sukhumvithaya backed the digital wallet scheme, predicting it will fuel economic growth in the last quarter of the year.

Fair competition

E-commerce expert Pawoot Pongvitayapanu called on the government to shield Thai businesses involved in cross-border exports within Southeast Asia. He stressed the need for fair competition rules to protect SMEs from the aggressive tactics of online giants.

Jareeporn Jarukornsakul, CEO of WHA Corporation, urged the government to keep promoting foreign investment. She emphasised maintaining business confidence among foreign investors, while suggesting the Land Bridge megaproject to boost southern region investments.

“Many foreign entrepreneurs aren’t deeply concerned about Thai politics, but the government must safeguard their investments.”

Praipol Koomsup from Thammasat University advised the government to be more judicious with energy price subsidies, suggesting more selective, short-term measures and negotiating discounts from power plants.

Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, called for fast action to address the economic crisis. He championed the accelerated disbursement of the fiscal 2024 budget and the digital wallet handout as quick fixes, stressing the need for cooperation with Chinese authorities to align import laws and VAT registration for foreign e-commerce platforms.

“We need immediate deployment of the 2024 budget nationwide and timely disbursement of the 2025 budget to revive consumption.”

Thienprasit Chaiyapatranun, President of the Thai Hotels Association, insisted on tackling unfair foreign competition and integrating underground economies into the tax system. He called for swift taxation of foreign online travel agents and a crackdown on illegal hotels.

The business leaders’ message to PM Paetongtarn is loud and clear: act now or risk economic meltdown. Comprehensive debt restructuring, support for small hotel operators, and a competitive service sector should be top priorities.