Business leaders are looking forward to positive results from new stimulus measures soon to be introduced by the new economic team.
Newly appointed Deputy Prime Minister Somkid Jatusripitak on Thursday shared his ideas for reviving the economy with the private sector for the first time.
The former economic policy planner of the now-defunct Thai Rak Thai Party has gained a seat in the third Prayut cabinet and officially debuted the new policies to 800 businessmen.
They were attending a seminar hosted by key business organisations and the Joint Standing Committee on Commerce, Industry and Banking.
As outlined by Mr Somkid, the focus will be on measures to restore investor and consumer confidence through short-term policies aimed at directly boosting domestic purchasing power and competitiveness rather than improving exports.
The highlight of long-term policies will be start-up businesses and innovation in a bid to make the country become more driven by value-added industries.
Business leaders approved of the plan after the economy had been stagnant for almost two years, ever since the political rallies in late 2013 that eventually brought the present government to power.
Supant Mongkolsuthree, chairman of the Federation of Thailand Industries (FTI), said it was a good sign for Thailand, as the country needed practical measures to breathe new life into the suffering economy.
"This speech meant a lot to us [the business sector]. We need to be more confident about the domestic economy reviving as soon as possible," he said.
Speaking to the press, Mr Supant said the FTI had wanted to see a change in the economic team even before this new one was formed.
But he declined to compare the new policies of Mr Somkid with the former ones of MR Pridiyathorn Devakula, whom Mr Somkid succeeded as deputy prime minister in charge of economic affairs.
"We cannot compare policies outlined by two different planners during two different time periods, as the planners must formulate them based on the circumstances of the moment," Mr Supant said.
But he praised the new team for proposing to inject liquidity for low-income earners and placing priority on small and medium-sized enterprises (SMEs), the backbone of Thai economy.
Mr Somkid agreed with the FTI that the government should help SMEs to restructure their business so they could enter the formal system but said most of these operators preferred to stay outside the system to avoid paying taxes.
Consequently, the government has not been able yet to assess their actual situation or the level of their liquidity problems.
Thailand has 2.7 million SMEs, 80% of which have never paid corporate income tax.
New Deputy Prime Minister Somkid Jatusripitak got smiles and a nice gift from (from left) Joint Standing Committee on Commerce, Industry and Banking president Boontuck Wungcharoen, Thai Chamber of Commerce chairman Isara Vongkusolkit and Federation of Thai Industries chairman Supant Mongkolsuthree at Thursday's seminar. (Photo by Pattarachai Preechapanich)
Isara Vongkusolkit, chairman of the Thai Chamber of Commerce (TCC), hoped the situation would improve soon and said business people were willing to cooperate with the government. "We're more confident now that the government has shown us more clearly what they are going to do to improve the Thai economy."
The TCC on Thursdaycalled for an acceleration of the water management plan, saying it was the right way to help the farm sector.
"Better water management will mean more reliable incomes for rural residents in the Northeast," Mr Isara said. "Once most of the country has better incomes, domestic consumption will automatically improve."
Boontuck Wungcharoen, president of JSCCIB, is also pleased with the new team. He would like to see policies to help the country tap into the benefits from the imminent Asean Economic Community.