A leading business group is optimistic the new government will improve public sentiment thanks to its unity and stability.
Speaking on Wednesday after a meeting of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), Payong Srivanich, chairman of the Thai Bankers' Association, said the speedy establishment of the new government is lifting public confidence and generating a positive outlook for the financial and capital markets.
Despite the involvement of multiple political parties, the new administration's cohesion and stability are expected to instil confidence in the business sector as well, he said.
"The swift formation of the new government is a positive sign. Notably, the new prime minister opened the door for discussions with the committee, which reinforces our confidence that the government will listen to the private sector," said Mr Payong.
He said the JSCCIB is preparing a white paper as a proposal from the private sector, outlining stimulus measures for the new government. The document is expected to be completed soon and will likely be submitted next month, said Mr Payong.
He said the proposal will include short-term, medium-term and long-term measures aimed at supporting economic growth.
Mr Payong said these measures will provide guidance on enhancing the country's competitiveness, developing labour skills, improving the efficiency of small and medium-sized enterprises, addressing the informal economy and tackling household debt, among other issues.
The white paper is about 90% complete and includes integrated measures focused on addressing these issues and fostering long-term economic development, he said.
"For the short term, we anticipate the government will inject additional liquidity into the economy to boost economic activities and support the cash flow of low-income groups affected by tight liquidity conditions," Mr Payong said.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said the private sector is eagerly awaiting the announcement of the new government's economic policies and the appointment of the head of the economic team.
The swift political transition and unveiling of the new cabinet have generated positive sentiment, he said.
The economy faces multiple challenges and uncertainties, both domestically and internationally, said Mr Sanan. The private sector is prepared to collaborate with the government to address economic challenges and strengthen the country's economic fundamentals in the long term, he said.
The JSCCIB maintained its GDP growth forecast for 2024 in a range of 2.2% to 2.7%. However, the panel upgraded the export growth forecast from 0.8%-1.5% to 1.5%-2.5%, following improved performance in July. Exports grew by 15.2% year-on-year in July, driven by the electronics sector as global demand rose.
The JSCCIB maintained its inflation forecast for this year at 0.5%-1%.