Business leaders have begun to think about the outlook for Thailand in the first 100 days under a new administration, with the poll less than a week away.
From the appointment of new ministers to policy priorities in the business sector, executives share their wishes for the incoming government.
A motorcyclist drives past election campaign posters of various political parties near the Rama VIII Bridge in Bangkok. (Photo: Apichart Jinakul)
SUITABLE MINISTERS
Jareeporn Jarukornsakul, chairman of industrial developer WHA Group, is interested in how the new government will appoint ministers because capable people are badly needed to drive Thailand through a storm of economic challenges.
Of course she wants the peaceful establishment of a new government, but the knowledge and character of new ministers are among the key factors that can pave the way for the development of the Thai economy and businesses, said Ms Jareeporn.
She said the new administration must carefully choose persons who know how to lead state officials while dealing with a range of issues following the full reopening of Thailand, which led to a rapid increase in foreign investors and tourists entering the country.
"The business sector wants to see ministers most suited to their ministries," said Ms Jareeporn.
"They should not come from a political party quota because we are afraid they will not fully understand the nature of their jobs, which will eventually hamper policy implementation."
Thailand needs policies that go beyond promoting populism, she said. The proposal to increase the daily minimum wage may please labourers and help relieve their financial burden, but it is not a solution to massive household debt.
"The new government should give people fishing gear, not only fish. They have to learn how to fish in order to be more self-reliant," said Ms Jareeporn, stressing this approach as a sustainable solution.
While the business sector waits to see if new government policies can modernise the economy, foreign investors are also monitoring the poll.
One foreign investor who has never invested in Thailand told WHA he wants to understand the election result first before deciding on whether to expand his business to Thailand, according to Ms Jareeporn.
"This prospective customer is a large investor who contacted WHA because he wants to buy industrial land from our company," she said.
A jogger runs past campaign posters of various political parties on Rama IV Road. (Photo: Nutthawat Wicheanbut)
WIND BENEATH MY WINGS
Wutthiphum Jurangkool, chief executive of Nok Air, said in the first 100 days of the new government he expects to see the removal of barriers that prevent the flow of tourists.
For example, the government should consider waiving the visa requirement for Chinese tourists as travellers from the mainland face a longer waiting period than previously, he said. The government should also abandon the planned 300-baht tourism fee, which might discourage visitors, said Mr Wutthiphum.
As an airline operator, he said the Thai aviation industry is still feeling the impact of the pandemic as airlines have to carry a heavy cost burden.
The government should continue extending relief measures such as the fuel excise tax reduction, which is slated to end in June, said Mr Wutthiphum.
He said extending this tax cut to five years is appropriate to help sustain the aviation business, as airlines can plan their costs without waiting for state decisions on a half-year or quarterly basis.
Mr Wutthiphum said other fees that should be reduced include the aeronautical radio fee, airport fee and self check-in system fee.
"These measures not only help airlines to survive, but passengers will also benefit from lower airfares, resulting in more tourists," he said.
Mr Wutthiphum said the new transport minister should urgently allow the import of aircraft. He said many airlines have been asking for permission for years to increase their fleets.
Instead of centralising such power in the Transport Ministry, the Civil Aviation Authority of Thailand should be the sole authority responsible for aircraft imports, he said.
A faster import process can help airlines plan their routes more effectively, or they can rent out their fleet to other airlines abroad to make more revenue during the low season.
Given a four-year term, Mr Wutthiphum said the government should accomplish much cooperating with airlines to improve the transport and logistics industries. For example, the government can support connections between secondary and major cities by improving airport facilities.
Election posters from various parties are seen in front of the Bangkok Youth Centre (Thai-Japan) in Din Daeng district. (Photo: Apichart Jinakul)
COST OF LIVING
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said the private sector wants the new government to accelerate efforts to tackle the cost of living, while simultaneously rolling out measures to rehabilitate and stimulate the economy.
If necessary, a new expenditure budget should be quickly implemented to ensure that each province's economy moves forward rapidly, he said.
Campaign policies should have clear action plans and funding sources to ensure appropriate spending and management, without creating future financial burdens for the country, said Mr Sanan.
In addition, the government should expedite the management of energy and business costs at appropriate levels, including electricity, water, labour and interest rates, as these affect the business sector's costs, which are currently higher than those of neighbouring countries, he said.
Given the volatile global economy, many countries face political instability, presenting an opportunity for Thailand to build confidence internationally and attract foreign investment, especially in specific investment zones such as the Eastern Economic Corridor.
The real estate sector has many opportunities for growth, and if the new government studies and clarifies regulatory guidelines, it can benefit the country immensely, said Mr Sanan.
Updating and improving outdated regulations is essential to meeting the needs of entrepreneurs and making it easier to conduct business, he said.
"More importantly, the new government must not create societal conflicts," said Mr Sanan.
"It must have a clear direction in creating cooperation among all sectors, including the government, the private sector and the public. These sectors must work closely together to move the country forward with stability and the ability to compete sustainably."
Wallaya Chirathivat, president and chief executive of Central Pattana Plc, said the company hopes the new government works to build a long-term competitive advantage and confidence in Thailand's investment, both domestically and internationally, while accelerating the economy and supporting businesses of all sizes.
The new government needs to prioritise policies to support the tourism sector rebounding to the same level as in 2019, working to springboard local tourism across the country for wealth distribution, she said.
The administration should ensure sustainability on key issues such as supporting wealth creation in communities, policies to take care of the environment and dealing with the PM2.5 ultra-fine pollution miasma, said Ms Wallaya.
"We also believe the new government should strengthen the infrastructure in all dimensions and have policies that support the private sector," she said.
Srettha Thavisin, one of three Pheu Thai Party prime ministerial candidates, is greeted by Pheu Thai party supporters while campaigning near the Rama VIII Bridge in Bangkok on April 23, 2023. (Photo: Pattarapong Chatpattarasill)
BOOSTING SME CAPABILITIES
Somchai Lertsutiwong, chief executive of Advanced Info Service, said businesses face several negative factors, including inflation, weak domestic purchasing power and high household debt.
Although there are signs of an economic recovery, he said it seems mostly big corporations are enjoying the rebound rather than small and medium-sized enterprises (SMEs).
The purchasing power of low-income people has sharply declined because of higher household debt that directly affects SMEs.
Mr Somchai said the first priority for the incoming government should be to strengthen SMEs by helping them reduce operating costs, such as fixed costs including loan interest rates, as well as helping them enter long-term debt restructuring schemes.
SMEs have been struggling to survive the Covid crisis without proper state assistance, he said.
The new government needs to not only focus on big picture economic issues, such as GDP growth, but also seriously consider stakeholders such as SMEs and low-income people when making decisions, said Mr Somchai.
"Improving the quality of life for low-income people is a critical agenda item the government and political parties must prioritise to drive more sustainable economic growth," he said.
Mr Somchai said Thailand's economic engines are tourism, exports, domestic consumption and state project investment. Economic recovery in the short term needs to entail tourists, domestic purchasing power and consumption, he said.
The government should restructure each category of its economic pillars to ensure sustainable growth, said Mr Somchai. Exports should be developed to produce a wider range of products and services, while domestic consumption should be strengthened, not given a one-time bump by giving handouts to people, he said.
Phichet Rerkpreecha, chief executive of Line Thailand, said the new government should urgently implement policies that stimulate the economy.
The new administration should also keep the promises they made during their election campaigns and consider appropriate policies from opposition parties, implementing those as well, he said.
Posters of political parties are seen along Phahon Yothin Road in Bangkok. (Photo: Nutthawat Wicheanbut)
FREE POWER TRADE
Kirana Limpaphayom, chief executive of Banpu Power Plc, said some projects initiated by the Prayut Chan-o-cha administration may resume during the first 100 days of a new government, but "free trade" in the power sector can only be achieved under a long-term strategy.
Mr Kirana said free trade in this segment means businesses can buy and sell electricity, notably from rooftop solar panels, freely among themselves without trading through the state-run Electricity Generating Authority of Thailand or the distribution arms: the Metropolitan Electricity Authority and the Provincial Electricity Authority.
A new government is expected to initially develop power projects started by its predecessor, translating some of its new energy policies into action, he said.
The Energy Regulatory Commission (ERC) said earlier it plans to call for bids for power projects under the second phase of the 3.6-gigawatt renewable power scheme during the next administration.
Free trade in the power sector will take some time before it becomes a reality for local business, said Mr Kirana.
Development in the energy sector is usually more time consuming than in other sectors as careful consideration is needed to plan for power generation facilities, business models and human resource development, he said.
Mr Kirana said he believes Thailand has the potential to shift to free power trade as the country has used renewable energy technologies such as solar power panels for decades.
With the rise of digital technology, lower development costs, high prices of fossil fuels and growing concerns over climate change, Thailand is firmly on a path focusing on clean energy and new power business models, he said.
The ERC launched a sandbox scheme for state and private firms to test new technologies to see whether they can serve a peer-to-peer power trade platform among electricity users.
Entrepreneurs in the industrial sector can currently buy electricity from power companies, but once free power trade takes shape, they can buy directly from producer businesses under the independent power supply (IPS) model.
IPS refers to businesses that produce electricity, especially from rooftop solar panels, for use by themselves. Free power trade will enable them to sell some of the electricity to consumers.
Under the free trade model, customers can choose what businesses they buy electricity from, much like how motorists choose petrol stations.
"The US and Australia are good examples of the power trade business. Japan has already followed suit," said Mr Kirana.
"I believe Thailand is ready to follow this trend."
Election campaign posters are seen in this picture on Ratchadaphisek Road in Bangkok. (Photo: Nutthawat Wicheanbut)
INCENTIVES NEEDED
Adisak Phupiphathirungul, first vice-president of Thanachart Securities, said the stock exchange is awaiting policies from the new government that can stimulate investment and improve market sentiment amid a lackluster global background.
"At present, the stock market lacks any incentives for investors. This is happening with stock markets globally as interest rates are high and uncertainties surround the banking sector," Mr Adisak told the Bangkok Post.
"New tax-deductible funds such as long-term equity funds (LTFs) could help boost investment in the capital and financial markets, but they could possibly affect the government's tax revenue."
Super savings funds (SSFs), which were launched in 2019 to replace LTFs, do not seem attractive enough to investors, he said.
Investments in SSF units, which are available from 2020-24, allow deductions of up to 30% of the buyer's taxable income, but not more than 200,000 baht.
"If the new government decides to implement the financial transaction tax [FTT], I suggest all concerned parties sit down and discuss a suitable rate that would not make investment in the Thai stock market less attractive compared with other regional bourses," said Mr Adisak.
The Prayut administration decided to levy the controversial FTT in November last year, ending a four-decade waiver, with the tax set to take effect this month. That tax has been postponed after much political jostling, including lobbying by brokerages.
"Political parties have promised populist policies, mostly helicopter money, that could stimulate the economy in the short term," he said.
"My concern is if the party that wins the election spends a lot of money on these policies, it will have an insufficient budget for long-term economic policies critical to boost the country's competitiveness."
Thomas Wilson, president and chief executive of Allianz Ayudhya Assurance and country manager for Thailand, said he would like to see policies that maintain a stable environment for further economic development and the growth of Thai society.
A pedestrian walks past an election campaign poster along Tanao Road in Bangkok. (Photo: Apichart Jinakul)