Private sector advises govt to speed up spending, investment
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The private sector yesterday urged the new government to undertake a range of key tasks to stimulate the economy, advising new Prime Minister General Prayuth Chan-ocha to speed up spending and infrastructure investment.
The sector also called for the government to remove barriers affecting business and fuel private consumption.
It also wants to see the Cabinet support free market competition in order to stimulate the economy in the short term and increase the country’s competitiveness in the long run.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is currently reviewing 216 measures designed to support business and stimulate the economy. It will deliver its findings to the Joint Public and Private Committee, to be chaired by Prayuth, when it meets next.
The economy experienced a slowdown in the first half the year after months of political unrest.
“The two best ways to stimulate the economy at the moment is for the new government to accelerate its budget spending and investment while coming up with policies to motivate private consumption, which is the main engine of the Kingdom’s economic growth,” said Boontuck Wungcharoen, chairman of the Thai Bankers’ Association.
Boontuck said the committee had seen a low level in stimulation of public and private investment.
He said the government could help businesses by eradicating corruption, reducing customs procedures and regulations to allow the market to operate under the free market theory.
To increase the country’s competitiveness and public sector efficiency, Supant Mongkolsuthree, chairman of the Federation of Thai Industries, said the government should increase the involvement of the private sector in the economic stimulation process and use technology to manage government procedures to enhance speed and transparency.
It should also invest in infrastructure in order to lower logistic costs, Supant said.
He highlighted the importance of free-trade agreements and urged the government to resume the FTA negotiation process as soon as possible. He also recommended improving border checkpoints to support increased trade with neighbouring countries.
Issara Vongkusolkit, chairman of the Thai Chamber of Commerce, said the JSCCIB was satisfied with the make-up of the Cabinet because it included experienced and capable people who were in charge of various economic-related ministries and this could increase the confidence of the private sector.
TCC vice chairman Pornsil Patcharintanakul expects the Cabinet to find long and sustainable measures to stimulate the economy.
Urgent tasks underlined by Pornsil include budget disbursement, infrastructure development projects, reducing production costs in the agricultural sector and finding sustainable measures to help farmers.
He called on the Cabinet to announce its policies so as to create transparency.
Chai Chaiyawan, president of Thai Life Insurance, wants to see mega-investment projects. If the country has a good investment structure, it could become a hub or gateway of the region, Chai said.
Nopporn Thepsithar, chairman of the Thai National Shippers Council, urged the government to focus on promoting exports and economic growth as well as developing human resource and improving the education system.
