Chiang Rai: The Thai Chamber of Commerce has urged the government to support sustainable economic management and to promote policies that address social inequality rather than just concentrate on growth.
The call was made yesterday at the 32nd seminar of nationwide provincial chambers of commerce, which ends today in Chiang Rai.
The chamber made special note of the social effects of economic policies and urged the government to be compassionate rather than focus exclusively on ways to improve growth figures, TCC vice-president Vichai Assarasakorn said.
He said the government needs to limit its fixation on growth data at the end of each year when large companies and banks close their accounts. That's because smaller companies, farmers and blue-collar workers are at the same time struggling with low income and debt.
The TCC members also discussed whether the new constitution should include measures that would ensure economic policies are sustainable. The chamber had earlier conducted a survey, asking its members for their opinions on plans for national reform and the new constitution.
It found the members wanted the new charter to enable "inclusive growth" in which all sectors of society grow proportionately, Mr Vichai said.
TCC vice-chairman Pornsil Patcharintanakul said the government should also devise a long-term economic stimulus plan as the effects of short-term stimulus policies — such as state subsidies for rice and rubber growers — would not last long.
He said measures to help subsidise agriculture should be turned into a law which clearly specifies which crops deserve state support.
The chamber urged the government to accelerate investment in infrastructure such as dual-track rail projects to stimulate the economy.
This year the economy is likely to post modest growth of 1% as exports fall flat, Mr Pornsil said.
He warned next year's export growth was likely to reach only 2%, short of the Commerce Ministry's 4% projection. Slow global economic recovery is likely to pose challenges next year to growth in Thailand as key markets — namely the United States, Japan, Europe and China — remain fragile, Mr Pornsil said.
The only sector that is predicted to grow significantly next year is tourism, he said, adding the number of foreign tourists tipped to visit Thailand is 30-35 million, up from around 26 million this year.
Ian Pascoe, managing partner of financial advisory firm Grant Thornton, said more than a decade of political volatility had left a serious mark on Thailand's global competitiveness.
A consistent lack of investment with no cohesive long-term strategy and action had taken a toll, while stagnant global economic growth was pressuring the economy.
"Thailand needs to sustain 4% GDP growth to remain at neutral growth," he said.
Mr Pascoe said problems among the major trading partners and lack of sustained action on policies that encourage foreign investment will keep growth prospects in neutral for the next 24 months.