The private sector has indicated optimism about the direction of the new government, following the selection of the new house speaker on Tuesday.
Thanit Sorat, Vice-Chairman of the Employers’ Confederation of Thai Trade and Industry (EconThai), expressed satisfaction with the appointment of Prachachat Party Leader Wan Muhamad Noor Matha as House Speaker. Thanit noted that the appointment strengthened confidence among investors, citizens and businesses alike, given Wan Noor’s seniority and prior experience as a speaker. This has elicited a favorable response from all sectors, including in investments and the stock market, elevating overall confidence.
The secondary political focus is on whether the prime minister’s nomination will be delayed in forming a new government. The business sector hopes that further disruptions to the economy, such as political demonstrations, can be avoided.
However, if Pita Limjaroenrat, the prime ministerial candidate and leader of the Move Forward Party, fails to clinch the top job, businesses are still confident that other candidates – such as Srettha Thavisin from the Pheu Thai Party – would be beneficial for the private sector. A crucial point is that the new government is expected to urgently bring in economic experts. Once names are proposed, the response from local and foreign investors should be immediate, as the presence of experts will help build trust with all parties to help tackle debt and slowing exports while boosting domestic purchases.
Dr. Thanawat Pholvichai, President of the University of the Thai Chamber of Commerce, said that following Tuesday’s (4 July) election of the House Speaker, the appointment of the prime minister should be closely watched. Pita’s support among Senate members is far from certain due to the lack of prior support. The private and investment sectors are keeping a close eye on the formation of the new government, and would prefer not to see a protracted process. (NNT)
