NCPO holds urgent meeting

NCPO holds urgent meeting

Companies wary of economic measures

The National Council for Peace and Order (NCPO), chaired by Prime Minister Prayut Chan-o-cha, held an urgent meeting with businessmen Monday to find solutions for the ailing economy.

No eye contact: At an "urgent" meeting Monday, Supant Mongkolsuthree (right), chairman of the Federation of Thai Industries, and Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, flanked Gen Prayut Chan-o-cha, head of the National Council for Peace and Order. (Photo courtesy of Government House)

Key business leaders across all sectors attended including government ministers and NCPO advisers.

"The government desperately needs to rev up its fiscal budget disbursement and spending on infrastructure development to spur the overall economy, which remains bearish," said Isara Vongkusolkit, chairman of the Thai Chamber of Commerce.

The businessmen questioned pending government policies that could further damage the economy such as the value-added tax (VAT) hike from 7% and called for investment projects to materialise as soon as possible.

"In light of the fragile economic prospects, the government should delay a VAT increase as long as possible," said Mr Isara, adding it would weaken already-meagre consumer purchasing power.

"Companies project a maximum for the country's economic growth of 3.5% this year," he said.

"The government must accelerate budget disbursement and public spending in all sectors as well as take real action on investments."

Mr Isara said businesses repeated their calls for the government to tackle corruption seriously as well as make the best use of free trade agreements.

He warned companies should be wary this year of volatile foreign exchange, adding that the government should monitor the issue.

Nopporn Thepsithar, president of the Thai National Shippers' Council (TNSC), also participated.

"The TNSC told the prime minister we're concerned about the government's 2015 export target of 4% growth. We think that's far too high compared with the central bank's forecast of 1% and our forecast of 2%. Many risks for exports lie ahead," he said.

"We think the government must implement additional measures to boost exports."

Mr Nopporn said Gen Prayut reassured attendees that the NCPO was serious about the economy and would set up a team to monitor it.

The Federation of Thai Industries (FTI) said it was satisfied with the government's direction in helping small and medium-sized enterprises but wanted more action to ensure the 200,000 registered SMEs receive government aid. 

The FTI wants SMEs to focus on marketing, production and finance and the government to increase the capacity of SMEs, especially those with non-performing loans.

Thiraphong Chansiri, president and chief executive of Thai Union Frozen Plc, demanded the government speed up tackling human trafficking.

"The government started working on this issue, but I want to emphasise it. It's possible for Thailand to rise from Tier 3 on the US watch list this year," he said.

Supaluck Umpujh, vice-chairwoman of The Mall Group, suggested the retail sector could not rely only on domestic consumption, so the government must beef up tourism promotion and ensure tourists' safety, labelling tourism one of few existing lifelines that could help to shore up the tepid economy.

However, she played down calls for the government to lift martial law, warning of a repeat of political mayhem. Ms Supaluck said martial law had little effect on tourism sentiment, citing The Mall Group's sales increasing by more than 25% last year.

Gen Prayut asked companies to be patient, saying various measures were beginning to come into effect and the global economy remained fragile. Some stimulus measures are still stuck in bureaucratic processes.

Commerce Minister Chatchai Sarikulya insisted this year's 4% GDP growth projection could be reached, citing clear-cut stimulus measures such as setting up new special economic zones to boost border trade and a focus on ramping up exports to Asean markets.

The government is also mulling expansion of the special economic zones to cover Nong Khai in addition to the approved locations of Tak, Mukdahan, Songkhla, Sa Kaeo and Trat provinces, he said.

The plan, starting with Mae Sot in Tak and Aranyaprathet in Sa Kaeo, will be carried out this year and next.

Do you like the content of this article?
COMMENT (4)