Private sector makes plea for elected govt
Despite its potential to drive economic growth, representatives from the private sector said at a seminar yesterday that it still needed support from an elected, rather than caretaker, government to help businesses progress and boost competitiveness.
They demanded a general election be held as soon as possible to establish a new government. Pramon Suthivong, chairman of the Board of Trade, said in a seminar entitled "The Impact on the Thai Economy of the Political Vacuum" that the economy's resilience and strength so far has been due mainly to cooperation between the government and private sector. "The private sector can make progress at a certain level but we need the power of the government to negotiate internationally," he said. "Now, there is no real government to help negotiate. Any issue that needs support from a government agency cannot progress as most ministries do not know their direction." Pramon said the political vacuum did not lead to economic waste, but Thailand had lost an opportunity to boost competitiveness in terms of energy, logistics development and production systems. Santi Vilassakdanont, chairman of the Federation of Thai Industries, said he agreed Thailand had lost many opportunities due to the political uncertainty. "When we enter trade talks without the support of a real [as opposed to caretaker] minister, it is difficult. In international trade, both the private sector and the government must cooperate with each other. Our confidence is lessened if we have to go it alone. With a real government, negotiations are much easier," Santi said. He said the general election should be held no later than the scheduled date of October 15. The comments from private sector representatives followed a statement made earlier at the seminar by Bank of Thailand Governor MR Pridiyathorn Devakula. He said the private sector should not worry about political uncertainty or wait for the general election as it has the potential to drive the economy. Pridiyathorn said the private sector, which accounts for as much as 73 per cent of GDP, can drive economic growth on its own. Government spending represents just 27 per cent of GDP. "The Thai economy is resilient enough to absorb any impact," Pridiyathorn said yesterday. "Private investment is expected to recover much sooner than expected. "There are those who fear the government will have a lack of budget to spend, but this is not true. I would like the private sector to understand its own essence. Thailand is now a private economy and can look after itself." Anoma Srisukkasem, Jiwamol Kanoksilp The Nation
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