Private sector: further delay in forming govt will be costly
The private sector is worried about further delays in the formation of the next Thai government, fearing that if, as some have suggested, this could take 10 more months, the impact on the Thai economy and investment will be significant.
Kriengkrai Thiennukul, president of the Federation of Thai Industries (FTI), expressed concerns about the potential delay, saying that while he understands that a process has to be followed, this will affect investor confidence and likely push new foreign investors to seek other options.
The scenario of waiting for another ten months for the formation of a government, if such an option were to be taken up to overcome the current impasse caused by the Senate whose term will expire in the next ten months, is worrying the business sector. After May 2024, the senators will no longer be part of the voting session, making it easier to form a government from a political perspective. However, there has been no discussion about the potential economic impact of such a delay, and this issue needs to be carefully considered, as everything comes with a cost, Kriengkrai noted.
In the meantime, entrepreneurs have plenty to contend with, including household debt, which is impacting domestic purchasing power, sluggish export growth, interest rate adjustments in the US, which poses risks to the global economy and financial stability, the uncertainty of China's economy, and the drought caused by the El Niño phenomenon.
