Greater input from business urged
AN INCOMING government should work more closely with industry in the face of a grim economic outlook for this year, the country’s peak private sector grouping said.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) urged this course of action after the economy grew 2.8 per cent in the first quarter of 2019, the slowest pace in 17 quarters. The slump, announced yesterday, was attributed mostly to the weakening trend for exports, JSCCIB officials said at a press conference yesterday.
The economy is likely to grow at slower pace than previously expected, with exports possibly contracting this year, said Supant Mongkolsuthree, chairman of the Federation of Thai Industries, a member body of the JSCCIB. The committee will release its forecast next month, he said.
In April, it projected that the economy would grow 3.7 to 4 per cent in 2019.
To maintain economic growth, the government should work more closely with the private sector, Supant said.
After the government is established, there should be a meeting between the prime minister and representatives of the private sector at least once every six months, he said.
The chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand, Kalin Sarasin, said the development of technological skills for the labour force was the key to lifting the economy.
Economic adjustments
Supant said that while this may take time, it is necessary for the economy to adapt to the technological disruption that is occurring in various industries.
The committee said it believes the establishment of the new government will lead to more political clarity and boost investment in the second half of 2019.
Meanwhile, the trade war remains a key risk factor for the Thai economy, said Predee Daochai, chairman of the Thai Bankers Association. “This is especially the case if the negotiations between the US and China do not progress in the second half of this year,” he said.
US President Donald Trump and his Chinese counterpart Xi Jinping are set to meet during the G20 meeting on June 28-29. Supant said that the JSCCIB would monitor the event closely and factor in the negotiation results in its economic forecast next month.
The JSCCIB said in May that Thai exports may fall below their estimated 3 per cent growth. Yesterday, the committee warned that, given the negative outlook for the trade war and its impacts on global trade, there is a possibility that exports will contract this year. However, the committee shied away from a firm prediction.
In April, exports shrank by 2.6 per cent, the biggest contraction in 24 months, according to the Commerce Ministry.
