Business leaders are scheduled to meet with the Bank of Thailand governor on Nov 14 to discuss new financial measures to help the sluggish economy, which may face more challenges following the US presidential election.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is worried that Thailand’s exports might be affected by higher tariffs once Donald Trump assumes the US presidency in January.
If the export sector faces obstacles, it will deal a blow to the economy, so the country needs new measures to cope with economic uncertainties, according to the JSCCIB.
“Thailand needs financial measures to support the economy and the central bank can help with that,” said Sanan Angubolkul, chairman of the Thai Chamber of Commerce, a key member of the committee.
The country has mainly depended on state spending using fiscal policy, but more measures are needed, he said.
The JSCCIB expects GDP growth of 3% in 2025 due partly to state stimulus measures, up from an estimated range of 2.6% to 2.8% this year. Growth could reach 3.5% if central bank monetary policy complements fiscal efforts, committee members believe.
Apichit Prasoprat, vice-chairman of the Federation of Thai Industries, said his group would also ask the Bank of Thailand to help deal with sluggish domestic car sales, especially in the pickup segment, as banks have been very strict about auto loans amid high levels of household debt.
“We would like the central bank to work with financial institutions to relax loan granting criteria for pickup buyers who need the vehicles for their jobs,” he said.
The JSCCIB recently handed what it calls a “white book” of stimulus proposals to Prime Minister Paetongtarn Shinawatra. One idea is a fund granting auto loans to pickup buyers, jointly overseen by financial institutions and the government.
The panel will be monitoring the trade policy of the new US administration, as Thailand currently has a trade surplus with the US.
“We are concerned that exports to the US, such as hard disk drives, solar panels and air-conditioners, may be affected if Washington increases tariffs,” said Mr Sanan.
The committee is also worried the influx of low-cost imports from China will rise if the new US government launches measures to better protect domestic industries. This will cause China to dump more products in Asian and Thai markets.