Prayut to meet Phuket business leaders on 'Pracha Rat'

Prayut to meet Phuket business leaders on 'Pracha Rat'

Stimulus package 'starts to bear fruit'

Deputy Prime Minister and economy czar Somkid Jatusripitak gives a thumbs-up for the Pracha Rat (people's state) economic stimulus package. (File photo by Krit Promsaka na Sakolnakorn)
Deputy Prime Minister and economy czar Somkid Jatusripitak gives a thumbs-up for the Pracha Rat (people's state) economic stimulus package. (File photo by Krit Promsaka na Sakolnakorn)

Twenty leading businessmen will meet Prime Minister Prayut Chan-o-cha this Thursday on ways to help make the government's economic stimulus package, known as Pracha Rat, a success.

The phrase, which literally means people's state, has been heard more often since Gen Prayut introduced it in September.

The government is now watching closely the outcomes of its 136-billion-baht economic stimulus package aimed at strengthening the economy at the grassroots level, which is key to the Pracha Rat approach.

The business sector plays a key role in Pracha Rat, so the meeting will be essential to help drive the policy forward, Deputy Prime Minister Somkid Jatusripitak told chambers of commerce members nationwide at a seminar in Udon Thani Sunday.

Mr Somkid said he believes in the potential of the business community, which in his view is currently "stronger than other sectors", making business a key player in many development fields.

That is why the business sector has been chosen as a key player behind the Pracha Rat model as the government attempts to give the economy a needed shot in the arm. The government and the public are the other two key players.

Mr Somkid said Pracha Rat does not aim to win votes from people but, through grassroots economic development, intends to "reduce social inequality and build up national reconciliation", which the government views as core to the country's sustainable development.

The meeting will help forge a closer relationship between the parties as the government attempts to eradicate public adversity. "I'm not boasting about the Pracha Rat," Mr Somkid said. "In fact, we don't know whether we can do it, but we need to give it a try."

Representatives of the regional chambers of commerce agreed with the government's attempt to forge economic development among people at large rather than big, high-profile companies.

They pronounced the "Udon Thani declaration" in which the chambers of commerce in each province will focus on strengthening community economies, arguing this would help take Thailand out of a group of countries "trapped in middle-income earner status".

Business observers believe the economic stimulus package is starting to take hold.

State money, including cash lent to people through village funds, is helping to stimulate consumption and local investment, though consumption needs more time before it will increase significantly, said Thanawat Phonwichai, director of University of the Thai Chamber of Commerce Centre for Economic and Business Forecasting.

Recent consumption has slowed down due to farmers' low incomes and high household debts, but the "good signal" sent by the package has reached them, he said.

The Thai Chamber of Commerce said Thailand is on track for an economic recovery and the results should be more clearly seen in the second quarter of next year.

The economy is expected to grow by 4% next year, on the back of a tourism boost, state investment in megaprojects and the creation of economic zones along the border, it said.

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