BANGKOK, Thailand – The Thai Chamber of Commerce has put forward a set of urgent proposals to Prime Minister Paetongtarn Shinawatra, with the goal of reviving confidence and steering the economy towards a sustainable annual GDP growth of 3-5%. These proposals focus on addressing the country’s current economic challenges through immediate and long-term strategic initiatives.
During a meeting on August 23, 2024, at the Shinawatra Tower in Bangkok, the Chamber’s chairman, Sanan Angubolkul, along with other business leaders, presented these critical economic recommendations. The meeting was attended by key government figures, including Finance Minister Pichai Chunhavijira, Deputy Finance Minister Julapan Amornvivat, and Secretary to the Prime Minister Dr. Phrommin Lertsuridet.
Key Proposals
The Chamber’s recommendations are structured around three primary objectives:
- Restoring Confidence: The Chamber emphasized the need for immediate, medium-term, and long-term plans to build trust and stabilize both domestic and international confidence in the Thai economy.
- Enhancing Competitiveness: Specific measures to strengthen the competitiveness of Thailand’s SMEs and enhance the country’s ability to compete on the global stage were prioritized.
- Strategizing for Sustainable Growth: The Chamber stressed the importance of long-term planning for sustainable economic growth, with a particular focus on innovation, digital trade, and transitioning towards green energy.
Immediate Actions
In the short term, the Chamber proposed several immediate actions to stimulate the economy, including:
-Decentralizing Budget Allocation: Speed up the distribution of the 2024 budget across all regions and ensure that the 2025 budget is finalized promptly. Local governments should be encouraged to utilize their available funds to drive economic activity in their respective areas.
-Targeted Economic Stimulus: The Chamber suggested a tailored approach to stimulate spending among different population groups. For vulnerable groups, direct financial aid should be considered, while middle-income earners could benefit from programs like the “Half and Half” scheme to boost purchasing power. For wealthier groups, the government could introduce measures such as easy e-receipts or tax incentives to encourage higher spending.
-Cost Relief and Debt Solutions: The Chamber recommended measures to reduce electricity and fuel costs, freeze the prices of essential goods, and offer targeted debt relief. For example, good debtors and those who have taken loans for business purposes should receive interest rate reductions and extended payment terms. Additionally, financial institutions could be encouraged to waive late payment penalties.
-Strengthening Local Economies: The Chamber also advocated for tax incentives to promote investment in key cities with high tourism potential and the continuation of previous government projects aimed at elevating secondary cities into major economic hubs.
Medium and Long-Term Plans
For long-term growth, the Chamber emphasized the importance of:
-Public-Private Partnerships: Enhanced collaboration between the government and private sectors, using existing mechanisms such as provincial economic forums (GROR) and promoting partnerships akin to the “Team Thailand Plus” model.
-Clear Economic Communication: The Chamber urged the government to clearly communicate economic policies to boost business and consumer confidence.
-Targeted GDP Growth: Setting a target of 3-5% annual GDP growth, focusing on increasing foreign and domestic investments. The government should act as a proactive promoter of Thai business abroad, while also monitoring progress through key economic performance indices like the Ease of Doing Business Index.
-Green Energy and Human Capital Development: The Chamber highlighted the need to transition towards renewable energy and called for investments in green energy infrastructure, such as solar power plants and energy storage systems. Additionally, they urged for educational reforms to better prepare the workforce for high-skill industries, including initiatives to promote STEM education and partnerships with universities to offer relevant internships.
Looking Forward
Sanan concluded by expressing confidence that these measures would help Thailand achieve sustainable GDP growth of at least 3-5% annually. The Chamber and its nationwide network are ready to work closely with the government to ensure the successful implementation of these economic proposals.
