Govt gets tips to run economy

The government is mulling a white paper containing proposals on ways to revitalise the flagging economy, in the hope of reaching a 3% growth rate by the end of next year.
The paper, received by Deputy Prime Minister Anutin Charnvirakul on Sunday, contains proposals made by participants at the 42nd national seminar organised by the Thai Chamber of Commerce and Thailand’s Board of Trade, held over the weekend in Chon Buri.
It contains a veritable wishlist or grab-bag of proposals spanning the gamut of debt relief for small businesses to measures to alleviate floods, price controls for basic products, regulatory controls on energy prices and help for the provinces.
“Once Thailand succeeds in restructuring its economy, in particular through resolving the nation’s household debt burden and improving income distribution, we should be able to grow at a maximum rate of about 5%,” said Sanan Angubolkul, in his capacity as the chairman of the Thai Chamber of Commerce and Board of Trade.
The suggestions fall into three categories.
The first concerns the need for the government to raise confidence in its ability to manage the economy among consumers and investors, both domestically and internationally, through measures to bring down the cost of living and operating costs among businesses.
The government should control prices of basic consumer products and services which people need on a regular basis, such as by freezing electricity and diesel price hikes, he said.
Mr Sanan said the government should also consider a proposal for a joint public-private committee on energy, as such a panel would have a better chance of regulating energy prices.
Private companies are also urging the government to distribute the budget equally to all parts of Thailand to stimulate economic activities outside the capital and major cities, he said.
A new co-payment scheme, Mr Sanan said, could increase the purchasing power of consumers in such areas.
The government’s project to stimulate the economy in 10 secondary provinces should also be sped up and expanded, he said.
The government must leave the minimum daily wage adjustment to the tripartite committee on wages and avoid interfering with the committee’s job again, he said.
The second area of proposals concerns the need to improve competitiveness among small and medium-sized enterprises (SMEs), particularly by reducing their debt burden, Mr Sanan said.
In this case, the government must develop policies to improve income distribution.
It should also cushion the impact of debt on SMEs by suspending loan repayments and/or extending the debt repayment period for heavily indebted individuals and SMEs, he said.
Government intervention to protect local vendors against the impact of price dumping and the influx of low-quality products from other countries is also crucial to ensure the survival of local businesses, he said.
“More investments are also encouraged in sectors with a good potential to grow well and employ many people,” he said.
The third set of proposals concerns new strategies to achieve and sustain economic growth, including ways to attract more investments, he said.
“The government should bear in mind the need to keep up the momentum for growth in key business areas, namely food, tourism, health and wellness, logistics, and education-related businesses,” he said.
In addition to these mainstream sectors, the development of new S-curve businesses including AI-based, digital, electric vehicle and green energy industries, also needs a real push from the government, he said.
And while focusing on stimulating economic growth, the government should never neglect the water management problems as repeated floods and drought could hold back development, he said.
The change in the world’s geopolitical situation after Donald Trump won the US presidential election for a second time should also be considered by the government as it adapts to the global economic situation, the TCC chairman said.
“Even though Mr Trump’s return may bring more uncertainties to the global economy and international trade, the looming trade war is better than a real war,” he said.