How Thai Business Sector Reacts to the Election Results

The business sector is urging the victorious parties to form a coalition government as soon as possible and to agree on their policies, saying that this will boost the country’s confidence and stability.

• The business sector is calling for a new Thai government to be quickly established and its policies to be agreed upon by the coalition parties, saying this will greatly affect the country’s confidence.
• The private sector has called on the new government to address production costs such as electricity bills and energy expenses, and provide liquidity support for small and medium-sized enterprises.
• Economic ministers are important and should have special knowledge and experience with the ability to manage the economy without interruption amidst recession risks from outside Thailand.

According to Sanan Angubolkul, chairman of the Thai Chamber of Commerce, the new government should focus on accelerating legal reforms and various welfare policies, which are the main agendas of the party that has the opportunity to form the government. He also said that it is normal to see young people taking on leadership roles in the country, as many other countries have young leaders such as England, France, and Canada. He added that the important thing is to have knowledgeable and capable individuals in governing the country.

Prioritise stability and reduce conflicts

Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, said that the new administration and elected politicians should prioritise the nation’s interests and reduce conflicts. He said that government stability will lead to high confidence among foreign investors and a flourishing tourism industry. He also called on the new government to address production costs such as electricity bills and energy expenses, and provide liquidity support for small and medium-sized enterprises.

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The banking sector also recommended the new government to stimulate consumption, tourism and private investment, which are the key drivers of economic growth. They also suggested that the new government should continue the implementation of infrastructure projects and digital transformation initiatives.

The next few months will be crucial for Thailand’s political transition and economic recovery. The Move Forward Party will have to prove that it can deliver on its promises and address the country’s pressing challenges, while maintaining stability and harmony. The market will also have to adjust to the new reality and expectations that the election result has created.

Stimulus to small firms

The new government, once formed, should prioritize creating additional economic stimulus packages that primarily benefit small operators, rather than large ones. This was the suggestion of Somchai Pornrattanacharoen, president of the Wholesale and Retail Trade Association, who spoke to the Bangkok Post on May 16, 2023 .

Mr. Somchai proposed several ways that the government could support small businesses in Thailand, such as:

• Offering government-owned spaces to merchants for free during weekends, allowing them to generate additional income.
• Helping organize walking streets or markets in some communities, where people can sell handmade products and secondhand items, or promote local culture to attract more tourists.
• Exempting certain grocery and wholesale stores from taxes if their monthly revenue does not exceed the government-set threshold.
• Providing low-interest loans, subsidies, or grants to small businesses that need financial assistance.

These measures would help stimulate economic activity among low-income individuals and revitalize the grassroots economy. They would also encourage more people to enter or stay in the grocery store and wholesale sector, which caters to people from all walks of life across Thailand.

Small businesses are the backbone of Thailand’s economy and society. They deserve more attention and support from the government and the public. By implementing these stimulus packages, the new government can show its commitment to helping small operators overcome the challenges posed by the pandemic and thrive in the post-Covid era.