Problems pile up for beleaguered cabinet
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Problems pile up for beleaguered cabinet

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Prime Minister Paetongtarn Shinawatra, centre, arrives at Government House for a cabinet meeting on Tuesday morning. Chanat Katanyu
Prime Minister Paetongtarn Shinawatra, centre, arrives at Government House for a cabinet meeting on Tuesday morning. Chanat Katanyu

The private sector is urging the new cabinet to urgently address economic and agricultural challenges.

Poj Aramwattananont, chairman of the Thai Chamber of Commerce and the Thai Board of Trade, said the new cabinet must tackle pressing issues related to the economy, society and security.

"They must dedicate their efforts to addressing economic challenges and export concerns, especially given the uncertainty surrounding the outcome of tariff negotiations with the US," he said.

Mr Poj said he expects the conflict between Thailand and Cambodia to eventually be resolved, allowing for trade relations to normalise and border security to return.

Another concern is the decline in agricultural product prices, as he said the government should work to lower production costs and enhance farming productivity.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the agricultural sector should increase its investment in R&D, particularly in crop variety innovation.

He said he was disappointed that previous administrations simply proposed the same policies focusing on financial aid for farmers, while failing to introduce any groundbreaking strategies, which has left the agricultural sector stagnant.

In addition, Mr Chookiat said he hopes the new commerce minister will inspire civil servants to take a more proactive approach for exports.

To enhance rice trading amid challenging conditions, he called for increased marketing and promotion of Thai rice, as export prices are not considerably higher than those of competitors.

For instance, Thai rice is priced at US$380 per tonne, while Vietnam's is at $390 and India's at $375.

Visit Limlurcha, president of the Future Food Trade Association of Thailand, said the new cabinet needs time to prove itself, with the younger ministers hopefully offering fresh ideas.

Mr Visit said he expects the new commerce minister to expedite efforts to increase exports in the latter part of the year.

"The private sector is ready to collaborate with the government and the new commerce minister," he said.

"The minister must quickly engage with pressing issues, as there's no time for a honeymoon period."

Sorathep Rojpotjanaruch, head of the Restaurant Business Club, said while restaurateurs face rising raw material costs, there has been a decline in agricultural production at farms.

He urged the commerce minister to use market mechanisms and resolve the unusual price mismatches along the supply chain.

In addition, Mr Sorathep called upon the finance minister to establish a dedicated taskforce to tackle the sluggish economy, highlighting the absence of such a team.

He advocated for the revival of the "Khon La Khrueng" (half-half) scheme, which provides a 50% co-payment subsidy, which should benefit small vendors in the industry.

Mr Sorathep also called for the government to introduce a tax rebate scheme for individuals dining at registered value-added tax restaurants, allowing them to use receipts for tax rebates.

He said businesses can qualify for this scheme to help reduce corporate taxes.

The sluggish economy has also affected operators in the creative industry, according to the Publishers and Booksellers Association of Thailand (Pubat).

Theerapat Charoensuk, a member of Pubat's executive committee, said the government must improve the country's economy to better support the creative sector, particularly the book industry, which is struggling due to reduced consumer purchasing power.

Although the government has initiated support for creative industries through its soft power policy, he said a strong economy is vital to support the growth of the creative sector.

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