Somkid calls for national unity to get through current crisis

"The economic meltdown in 1997 nearly paralysed Thailand. Trillions' worth of businesses went under, but fortunately we were able to get through the depressing situation quite well," he told a CEO Forum on "The Future of Thailand" held by the National Institute of Development Administration.

"After that crisis, who would imagine that we would be as miserable as we are today? The misery results from divisiveness and political turmoil. Thais have just watched the unfolding situation for nearly three years, while other countries such as China, South Korea, Malaysia, Singapore and even Vietnam have concentrated on developing their countries.

"Amid all the misery, the most important thing is that the government should be a pillar of the nation. If people have no potential model, they have to look for other solutions by themselves, which causes the confusion in society."

The government need not talk about revving up the economy, but it had better keep it stable in order not to let inflation aggravate the public's suffering, Somkid said.

"Product prices and the cost of living are much more important than economic stimulus. Huge investment projects have been delayed for several years already. Confidence can be restored, but we should be careful not to lose credibility."

The government alone cannot solve this problem, and every party, including the private sector, academia and consumers, should seek the solution together, he added.

Prasert Bunsumpun, CEO and president of PTT Group, told the seminar that the economy last quarter had posted growth of 6 per cent, which was a pleasant surprise, while the inflation rate was up to 5 per cent.

Although the skyrocketing oil price concerned everybody, it could on the contrary spin off benefits and promote the country's agricultural sector through ethanol and biodiesel production, he said.

"We should turn crisis into opportunity. Our utilisation rate in the petrochemical and petroleum industry is about 70 to 90 per cent. Therefore we're carefully moving on with our investment plan both domestically and abroad despite the murky global climate," he said, referring to PTT.

Although the oil price is high, it is correct to let it move with the market mechanism, he said.

"The government should discount the oil price for a short time, otherwise the public won't be able to cope with the rising cost of living," he said.

The government should get serious about improving the country's logistics system to reduce transportation costs in future, he added.