The Thai Chamber of Commerce is calling on the new government, likely headed by the Pheu Thai Party, to conduct a thorough economic assessment before proceeding with a proposed 10,000-baht digital cash giveaway policy.
The chamber said this policy requires substantial expenditure and should be carefully evaluated for its economic viability.
Sanan Angubolkul, chairman of the chamber, said the group believes the policy is viable, but there are concerns from various parties regarding the source of funding and the impact on the nation's fiscal position, which must be clearly addressed.
"The assessment should focus on determining whether such massive spending yields greater value and is not a burden to the country's fiscal health," he said.
The chamber instead suggests the new government consider pursuing policies that support and incentivise businesses to enter the formal tax system.
Many medium-sized and small enterprises are not fully compliant with tax regulations, and improving tax compliance is vital to expand the tax base and enhance the country's revenue in the long term, said Mr Sanan.
He said distribution of a 10,000-baht digital payout, if implemented as pledged, should be specifically targeted at groups of people in immediate need.
This approach would help avoid excessive budget allocation and allow a portion of the funds to be dedicated for infrastructure investment, job creation or public welfare investment, said Mr Sanan.
The chamber views the swift establishment of a new government as the utmost priority as the country faces various challenges, including an uncertain economic recovery, cautious foreign investment amid a fluctuating global economy and the Russia-Ukraine war.
Urgent priorities the new government should address immediately include the cost of living, often dealt with by offering stimulus policies, and measures to lower the operating costs for businesses, including fuel and electricity, which remain pricey, said the chamber.
There is also a pressing need to tackle the downturn in exports this year, while the new government should accelerate the improvement of the tourism sector, which is a key driver of the economy, he said. This involves facilitating the visa process for Chinese tourists, increasing flights to accommodate the expected rise in tourism and expediting the fiscal 2024 budget allocation to sustain various nationwide projects.
Mr Sanan said increasing investor confidence to attract new foreign outlays is crucial, leading to job creation and improved exports.
For the medium term, the government needs to plan for and mitigate the risks posed by severe drought, which is estimated to cause 53 billion baht in economic damage, said the chamber. Management and storage of water resources are essential to meet the needs of agriculture, services and industries, supporting economic recovery in the coming year.
The new administration should continue free trade agreement (FTA) negotiations with countries to expand markets, especially the Thailand-EU FTA, as they are a means to enhance Thailand's competitiveness, he said.