Govt scores poorly on economy
Executives say politics is hurting Kingdom
- Published: 30/11/2009 at 12:00 AM
- Newspaper section: News
Leading businessmen have given the government an average of 5.3 out of 10 for its performance in tackling economic problems over the past year.
The finding is based on questions asked by the Thai Chamber of Commerce University of about 1,000 members of provincial chambers of commerce who attended a three-day annual meeting in Chiang Mai which ended yesterday.
The respondents were made up of members of the private (85%) and government (15%) sectors.
The results show the government "only narrowly passes the test", said Thanavath Phonvichai, director of the university's economic and business forecast centre.
Business leaders from the central and northeast regions gave the government a 5.6 rating while those from the North rated the government 5.2 and those from the South gave it a 5.1.
Businessmen from the eastern region gave the government just 4, mainly because they were unhappy with its failure to settle a dispute involving investment projects in the Map Ta Phut industrial estate.
Most respondents felt political instability was the major factor hurting the economy, followed by the global economic recession and the rising price of oil and raw materials.
Political unrest was the most urgent issue needing a government solution, although 90% of respondents said they also wanted the government to tackle corruption.
Almost 40% of respondents believed the economy would recover in the first half of next year as a result of government investment projects and increasing farm commodity prices.
The survey also found there were no signs of lay-offs and employment was beginning to rise, Mr Thanavath said.
"Most people in the private sector are worried the economic recovery remains fragile," he said.
"Most respondents have projected Thailand's economic growth at 2% to 3% next year, which is below the government's forecast. This is because of political conflict, the appreciation of the baht and the Dubai World banking crisis."
Most respondents back the Thai Kem Kaeng scheme as a means to stimulate the economy, and the debt refinancing programme to tackle loan sharks.
Chamber chairman Dusit Nontanakorn said the Thai Chamber of Commerce would recommend national economic strategies to the government this week.
The plans are aimed at developing the economy, helping it adapt to global changes and paving the way for the establishment of the Asean Economic Community.
The strategies call for the development of the upper northern region, covering Chiang Mai, Lamphun, Lampang and Mae Hong Son, into a centre of tourism and culture, and a production base to process fruit and vegetable for exports.
The upper northeastern region, covering Udon Thani, Nong Khai, Loei and Nong Bua Lam Phu, would become a commercial, investment, tourism and transport hub for the Mekong subregion.
The lower northeastern provinces, covering Chaiyaphum, Nakhon Ratchasima, Surin and Buri Ram, would be developed into a hub for alternative energy and a base to produce and export silk products and Hom Mali rice.
The upper central region, such as Pathum Thani, Nonthaburi and Ayutthaya, would serve as a base to produce hi-tech industrial products.
The southern border provinces, covering Pattani, Yala, Narathiwat, Satun and Songkhla, would be made a base to produce and export halal food and to process rubber.
About the author
- Writer: Phusadee Arunmas
- Position: Business Reporter
