From an old Cabinet to an ugly one to the ugliest yet

Businesspeople are shocked, but what can they do? They only grumble at another major disappointment.

Somchai's economic team falls far below expectations. We are not yet sure about Somchai's leadership. We only have the impression that he is a nice guy, who is willing to compromise with his friends and foes.

But his Cabinet formation follows the old political style of quota allocation. A group of 15 MPs can submit a candidate for a ministerial post. The same old faces, who do not fit with Thailand's modern economic society, are making a comeback.

It seems that the People Power Party just does not care for the good of the country. It is more focused on handing out rewards to its proteges and allies during this time of political transition. It has set up the Puea Thai Party to serve as a spare part in case the People Power Party is disbanded.

Finance Minister Suchart Thadathamrongvech is not a heavyweight. Transport Minister Santi Prompat is plagued with doubts as to his educational credentials and qualifications. Commerce Minister Chaiya Sasomsap is an old-time politician, whose knowledge in trade and economic matters is doubtful. Industry Minister Pracha Promnok is a former police chief. Agriculture Minister Somsak Prissanananthakul holds tightly to his chair by default. And the public health minister is - oh my god - Chalerm Yoobamrung.

The economic team is not the only ugly one, but it looks scary too. One of the positive points in this Cabinet is the arrival of economic guru Olarn Chaipravat. Having Olarn on board is as good as putting a badge on the Cabinet's chest. Whether Olarn can overcome politicking and manage to bring the economic ministers under one roof so that they run the country in one direction is a big question mark.

If the Somchai government aims to stay just for the short haul - only to manage the fiscal budget and introduce projects before getting ready for another election - then Olarn would not be able to do anything much.

Suchart has been a surprise. He has taken over the leadership of the Puea Thai Party. The People Power Party might be trying to groom him for a bigger assignment to come. But Suchart has not yet had enough experience nor developed the ingredients necessary to oversee one of the country's most important portfolios. Having spent most of his career in the academic world, Olarn went on to serve briefly as a deputy finance minister in the Samak government, and he has enjoyed a stronger political profile.

Given the ugly face of the Cabinet's economic team, the general sentiment in the business community is that "Okay, we'll give you another chance to run the country. But you mind your own business and we are going to mind ours. If we were to wait for your leadership to guide us, we might go broke."

Those in the business community complain that they have not had any dialogue with or cooperation from the government over the past three years. But even without government leadership, the Thai business sector has managed to stay afloat by cutting costs, improving productivity and looking for new export markets. The outcome is that the Thai economy has been growing at more than 5 per cent and export growth has shot up at double-digit numbers.

It is a miracle that our country can still enjoy a degree of prosperity under the current political situation. We have the private sector, which is working hard and trying to be innovative while operating under an unfriendly environment. The competitiveness of Thailand's private sector can be judged by the competitiveness of the export sector and also from the relatively strong balance sheet of the companies. Most big Thai companies are enjoying their strongest balance sheets ever, with manageable debt.

The financial sector has also gone through a reform following the 1997 crisis. Now Thai banks and financial institutions have been in good health generally thanks to improved risk management, better accounting standards and sounder regulations from bank supervisors. Data and information in the credit market have also become more transparent. Loan classification is also clearer.

But the politicians have not reformed nor have they gone through any shake-up at all to rise to the same standard as the business community and financiers. Governance in Thai politics has not improved a single notch. The politicians are the last breed of dinosaur, which has refused to go into extinction.

We are fed up with politicians in the name of the sacred word of democracy. But we have to be patient because the prime minister has asked us to give his Cabinet a chance.

Well, there is not going to be any honeymoon period. The Cabinet must perform starting on day one - that is tomorrow, when it holds its first meeting.