Businesses Optimistic about Economic Stability under Newly Elected Government

Pruksa Holding Public Company Limited has expressed confidence in the stability of Thailand’s political landscape after the recent removal of Srettha Thavisin as Prime Minister. The company emphasized that the swift selection of a new leader ensures the continuation of government policies, which is crucial for maintaining public confidence during this period of transition.

Key Takeways

Pruksa Holding Public Company Limited affirmed confidence in Thailand’s political stability post-Srettha Thavisin’s removal as Prime Minister, underscoring swift leadership transition as essential for policy continuity and public confidence. CEO Uthen Lohachitpitak noted the coalition government’s likely stability and the necessity of quick decision-making in avoiding policy disruptions.
Uthen discussed positive economic prospects for the year’s second half, urging the Bank of Thailand to consider reducing interest rates to boost consumer spending and purchasing power. He warned of potential economic strain should interest rates remain high, which could burden debt and weaken purchasing power.
Pruksa reported first-half revenues of 9.86 billion baht with a gross profit margin of 33%, maintaining a low net gearing ratio of 0.39. The company recorded significant transfer values and sales, with plans for 23 new projects worth 19.6 billion baht in the year’s second half. Additionally, Pruksa launched “Wizlah TH,” an AI-enhanced interior decoration e-marketplace, in partnership with Singapore’s Sunray Group.

Uthen Lohachitpitak, CEO of Pruksa Holding, commented that the current coalition government is likely to remain stable and bring positive outcomes. He highlighted that the quick decision-making process that led to the appointment of a new Prime Minister overnight has been essential in avoiding interruptions in government policies, which is vital for the public during such times. Uthen also discussed the economic outlook for the second half of the year, suggesting that maintaining current economic policies would likely enhance consumer spending. He speculated that the Bank of Thailand might reduce interest rates in line with global trends, which could boost consumer purchasing power. However, he warned that if the Bank does not lower rates, it could increase the debt burden and further weaken purchasing power. In terms of Pruksa’s financial performance, the company reported first-half revenues of 9.86 billion baht, maintaining a strong gross profit margin of 33%. The company continued to strengthen its financial position with a low net gearing ratio of 0.39. Pruksa achieved a transfer value of 8.31 billion baht and sales of 7.47 billion baht in the first half of 2024, with plans to launch 23 new projects worth 19.6 billion baht in the second half of the year. Pruksa has also launched “Wizlah TH,” a comprehensive e-marketplace service for interior decoration, in partnership with Sunray Group of Singapore. The platform utilizes AI, AR, and 3D technology to provide customers with realistic interior design simulations, helping reduce uncertainty in purchasing decisions.

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