Business leaders exhaled yesterday after the Constitutional Court endorsed two executive decrees, especially one regarding 350 billion baht in emergency loans.
Business leaders agree that yesterday’s ruling bodes well for the economy, as several megaprojects can now begin in earnest, attracting more investment and restoring confidence. PATTANAPONG HIRUNARD
The private sector is pinning its hopes on the government to proceed with megaprojects quickly afterward even though businesses are lukewarm to the idea of imposing decrees. "This is just a relief, as earlier we worried the decrees may not get endorsed, given the public doubts," said Pornsil Patchritanakul, deputy secretary-general of the Board of Trade of Thailand.
"The government can now proceed with projects immediately, as the committees in charge have already recommended projects to tackle, such as floodways."
But he said there is concern about whether the government can execute these projects in time with transparency.
Tanit Sorat, a vice-chairman of the Federation of Thai Industries, said the government can now cut its interest burden by transferring the responsibility in the 1.14-trillion-baht debt of the Financial Institutions Development Fund (FIDF) to the Bank of Thailand.
The issue has been contentious, raising questions of possible government interference with the central bank.
"This allows the Pheu Thai government to have more funds to finance public works, and we hope they can manage this budget efficiently," said Dr Tanit.
"There is huge liquidity available in Thailand, even as the global economy does not look good."
Charl Kengchon, managing director of the Kasikorn Research Center, said the court's endorsement of the decrees will build confidence, particularly in the government's flood management.
"With the legal process past, the focus shifts to fulfilment of flood-prevention measures," he said. "Now the government should speed up implementation with the decrees' endorsement."
As for the FIDF debt transfer, no new issues should arise after the settlement on a new fee, said Dr Charl.
Commercial banks should adjust themselves ahead of the new regulation.