The Paetongtarn Shinawatra government should not resort to dissolving the House of Representatives to address weakened political stability, following a leaked phone call between the premier and Hun Sen, the former Cambodian prime minister, says the Employers' Confederation of Thai Trade and Industry (EconThai).
"We are worried about a political vacuum if the prime minister decides to dissolve the House," said Tanit Sorat, vice-chairman of EconThai.
"Thailand needs to organise a new election and form a new government, which may take up to 5-6 months."
The country is already struggling with a sluggish domestic economy, a territorial dispute with Cambodia and trade negotiations with Washington to reduce steep tariffs on Thai imports, said Mr Tanit.
House dissolution would also affect consideration of the government's 3.78-trillion-baht budget for fiscal 2026, he said.
The resignation of Ms Paetongtarn would be good for the country, which must find economic solutions rather than put the brakes on key public policies for a new election, said Mr Tanit.
Yesterday the premier apologised to the public in a news conference for the leak of her discussions on the border conflict, which some view as putting Thailand at a disadvantage.
She is under pressure from some politicians and people to resign.
Public trust in the government has eroded, while the withdrawal of the Bhumjaithai Party from the coalition stings, he said.
This could affect investor confidence, especially among foreigners, who may postpone their new projects, said Kasemsan Sujiwarodom, chief executive of MAI-listed Kijcharoen Engineering Electric (KJL), a Thai electrical control cabinet manufacturer.
Most of the company's products are sold to new house or building construction projects.
Target customers include data centre developers that need equipment to control a huge amount of electricity.
Though worries over government instability may affect new investments, KJL believes its products remain in demand from entrepreneurs shifting to renewable energy, especially rooftop solar power, as the country reduces its carbon dioxide emissions.
These changes will drive demand for electrical control cabinets, said Mr Kasemsan.