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Published on November 18, 2007

The Thai Chamber of Commerce (TCC) yesterday expressed concern that populist policies proposed by several political parties contesting the December 23 election could hurt the country in the long run.

Citing the heavy public spending announced by some parties, chairman Pramon Sutivong told the annual TCC meeting that politicians should exercise caution so as to avoid harming the country.

"Populist policies are a two-edged sword, so the new government must be careful if such policies are adopted," he said, adding that the country would have to shoulder a higher public debt and face other financial problems if a wide range of populist measures was implemented. Pramon said the private sector expected the next government to adhere to sound economic management and practice good governance so that the economy could grow at a higher rate.

Further liberalisation of trade and investment, development of the provincial and rural economy and boosting business competitiveness are also important, said the TCC chairman, adding that the government also needed to push for quick implementation of mega-infrastructure projects.

If economic growth is stronger, the government will be able to collect more taxes and the private sector will invest more, thus creating new jobs, he said.

Pramon said the private sector also hoped the new premier had high ethical standards plus strong management skills.

Ajva Taulananda, honorary chairman of the TCC, said too many people were dependent on populist policies so the new government should instead help people to help themselves so as to make economic growth more sustainable. The TCC will today submit a proposal to the Surayud government to freeze oil prices, which have risen significantly in the past months.

Pipat Paniangvait, the TCC vice chairman, said expensive oil had raised production costs while reducing consumer spending.

With petrol prices exceeding Bt30 per litre, most businesses are in trouble, so the government should regulate prices, especially for diesel, which is mainly used in production and logistics, he said, adding that the government needed to further develop the national railway system as it was a cheaper mode of transport.

Petchanet Pratruangkrai

 The Nation

Phetchaburi