Thailand’s Board of Investment (BoI) admits that foreign investment is declining, and a top banker warns that the government’s economic stimulus policies will fail if its populist policies cause a rise in household debt.
Kosit Panpiemras, Bangkok Bank executive chairman, said the government’s economic stimulation efforts through monetary and fiscal policies would not bear fruit if it continued to implement populist policies in the way that prevents household debt from falling.
Kosit Panpiemras, Bangkok Bank executive chairman.
He suggested that the government cooperate with the private sector to catch up with the changes of global markets.
Thai exports are declining despite the global economic expansion.
Kosit urged the government to closely supervise production. Thailand’s economic growth rate is predicted at 3-4 percent next year due to its low base this year, he said, noting that previous populist policies and household debt continue to heavily affect the Thai economy and prevent its growth from reflecting the real potential of the country.
Chokedee Kaewsang, BoI deputy secretary-general said foreign investment in the first 10 months of this year dropped by 10 percent compared with the same period last year because Thailand could not support the investment projects that turned to use higher technologies.
He estimated the overall value of projects seeking BoI promotional privileges at Bt700 billion this year, lower than the corresponding figure last year.
The projects center on the automotive, electrical, electronic and machinery industries.
