Since the list of 35 ministerial positions in the new cabinet was confirmed last week, the atmosphere in many economic ministries has been enthusiastic as new arrivals prepare to get to work.
Appointees from the Pheu Thai Party are eager to brush off criticism of their controversial decision to unite with parties from the outgoing government by focusing on solving economic issues.
Pheu Thai promised last week it would immediately reduce energy costs at its first cabinet meeting to ease the burden on residents.
Prime Minister Srettha Thavisin has already held discussions with several business sectors.
Given the anticipation from the private sector, new ministers have little time to celebrate as challenges and risks await their initial days in office.
NO FAVOURS
Though Mr Srettha has a background in business administration as the previous owner of one of the biggest listed property companies in Thailand, developers think it is unlikely the real estate industry will be granted more privileges than other sectors because of the perception of bias.
Tritecha Tangmatitham, managing director of SET-listed developer Supalai, said the new prime minister has a solid understanding of the economy and will likely emphasise businesses that promote economic expansion.
"Mr Srettha's history with the property sector could lead to scrutiny if new policies were perceived to favour property businesses, even if the benefits are not limited to any single company," he said.
Pornarit Chounchaisit, president of the Thai Real Estate Association, agreed that property sector measures are unlikely to be the priority for the new prime minister.
However, incentives such as a reduction of transfer and mortgage fees were frequently used by past governments to stimulate the economy and property market, he said.
"Given their past usage, it wouldn't be a surprise if the prime minister dusts off these measures again," said Mr Pornarit.
Mr Srettha pledged to enhance the country's tourism competitiveness in his first week on the job.
TOURISM EMPHASIS
The new cabinet is expected to be a dream team, especially the economic ministers, according to Federation of Thai Industries (FTI) chairman Kriengkrai Thiennukul.
Thailand's political outlook is clearer with a new government and the private sector believes the administration can bring hope to the country and build a strong economy, he said.
Thailand needs to accelerate its economic recovery because the tourism industry has not yet returned to its pre-pandemic level, while the export sector is slumping, said Mr Kriengkrai.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, called for an enhancement of the tourism sector as this industry could be the main driver of the economy in the final quarter, during the peak tourism season.
This upgrade involves facilitating the visa process for Chinese tourists, such as streamlining e-visa procedures or offering them free visas, said Mr Sanan.
Chamnan Srisawat, president of the Tourism Council of Thailand, said he believes the industry has higher hopes for development during the upcoming four-year term as Sudawan Wangsuphakijkosol, the new tourism and sports minister, is a member of Pheu Thai, the leader of the coalition government.
This is the first time since 2006 this post has been filled by the largest party in a coalition government, as ministers from Pheu Thai controlled this seat before Thaksin Shinawatra's government was ousted by a military coup in September of that year.
Mr Chamnan said budget allocation and tourism development is expected to run seamlessly with a minister from the leading party that is prioritising economic policies.
The prime minister pledged to enhance the country's tourism competitiveness on his first week on the job.
Nattakit Tangpoonsinthana, executive vice-president of marketing for Central Pattana Plc, said it is appropriate to prioritise the tourism industry to stimulate the economy.
He said tourism is one of the most important revenue-generating engines of the economy.
"The government should also improve the quality of airports to be on a par with other airports in Southeast Asian countries that are tourism competitors with Thailand," Mr Nattakit said.
He said the administration should immediately launch economic stimulus packages for both domestic and international consumption, such as the tax reduction shopping scheme called "Shop Dee Mee Khuen", which he deemed a very successful campaign.
"Shopping in Thailand is known for its value for money as well as the quality of hospitality and logistics," said Mr Nattakit.
"The retail industry should also gain a positive impact from the foreign arrivals."
He wants the new government to lure more "quality" tourists, high-spending individual travellers, and young affluent consumers.
MULTIPLIER EFFECT
The FTI insists it wants to see the implementation of new measures, such as the 10,000-baht digital wallet scheme, to boost individuals' purchasing power.
Burin Adulwattana, managing director and chief economist of Kasikorn Research Center, said the digital wallet scheme should help to spur economic activity and drive GDP growth, assuming the economic multiplier effect.
However, Mr Burin said the policy should be targeted at low-income earners rather than all citizens aged 16 and above, as intended by Pheu Thai.
If the scheme's eligible participants remain unchanged, it would require roughly 560 billion baht, or 15-16% of the fiscal 2024 budget of 3.35 trillion baht, he said.
In addition, Mr Burin said the digital wallet should be spent at small shops rather than department stores or modern trade outlets to provide low-income earners greater access to such merchants.
"While a cash handout policy would help to stimulate the Thai economy, we are concerned about the funding source as it could put a burden on the country's public debt over the long term," he said.
"We need to wait for clearer details about the scheme."
Debt resolution is another priority for the new government after household debt reached 16 trillion baht in the first quarter of this year, accounting for 90.6% of GDP.
The Bank of Thailand has implemented several debt assistance measures to mitigate the problem, but now plans to spend more time reducing the debt ratio.
If the new government can support this effort through legislation and collaborate with related public and private parties, it should be able to manage the debt burden efficiently, said Mr Burin.
He said a household debt resolution would not drive the economy directly, but it would strengthen the purchasing power of consumers.
If the government can help vulnerable borrowers or those trapped in a persistent debt cycle over a long period to exit the pattern, it would sustain domestic consumption and economic expansion in the long run, said Mr Burin.
Mr Srettha announced the 10,000-baht digital wallet scheme at a rally in April. The FTI hopes the scheme boosts purchasing power. Pattarapong Chatpattarasill
URGENT FOCUS
The FTI expects the new government to support Thailand's economy and boost investor confidence.
Mr Kriengkrai said the new government should accelerate the approval of a new fiscal budget for 2024 and the disbursement process for investment projects to revive the economy.
The administration is also encouraged to negotiate with foreign countries for new trade opportunities to support the export business and expand into new markets, he said.
This effort includes negotiating for more free trade agreements and addressing non-tariff barriers, said Mr Kriengkrai.
The government should help small and medium-sized enterprises to mitigate the impact from increasing interest rates on loans, he said.
Mr Sanan said among the urgent economic measures the private sector wants addressed within the first 100 days are programmes to help reduce the cost of living and production costs for the private sector, such as fuel oil prices and electricity bills.
The administration is also urged to do more to tackle high levels of debt for entrepreneurs and households, coupled with facilitating access to funding sources for entrepreneurs, he said.
In addition to expediting the disbursement of outstanding budgets and preparing the 2024 expenditure budget to create continuity in projects nationwide, as suggested by the FTI, Mr Sanan said the government needs to improve investor confidence to attract new outlays from abroad.
This effort should contribute to job creation and have a positive impact on export figures, he said.
The chamber wants the government to focus on exports over the last four months of this year to help them rebound, though the annual outlook may remain slightly negative, Mr Sanan said.
The Pheu Thai Party promised the public last week it will reduce power bills at its first cabinet meeting to ease the cost of living.