Private Sector Responds to Cabinet Reshuffle
Source: Thansettakij
Wednesday, May 1, 2024, 05:22
Confident in "Pichai's" Leadership: Capital Market, Real Estate, and Tourism Set to Rebound
Addressing Grassroots Economy
The private sector's response to the new cabinet is positive, with confidence in "Pichai" to lead the economic team effectively. This optimism is expected to have a beneficial impact on the thriving Thai capital market. The new generation is poised to bolster and drive the digital wallet project, aimed at resolving economic challenges.
Following the Royal Command on April 27, 2024, for the formation of the new Cabinet, which saw the resignation of 10 ministers and the appointment of 12 new ones, Prime Minister Setha Thavisin is set to lead the new cabinet. The next steps involve visiting His Majesty the King to take an oath before assuming duties and advancing government policies in alignment with parliamentary directives. "Than Economy" has gathered opinions from various sectors reflecting on the strengths and weaknesses of public administration, along with proposals for implementing past and future economic policies.
Cabinet Adjustments to Promote Digital Wallets
Mr. Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, expressed his approval of the Cabinet adjustments, particularly the appointment of Mr. Pichai Chunhavajira as the new Finance Minister. He believes this choice is fitting due to Mr. Pichai's experience and knowledge in finance, as well as his understanding of the private sector. Mr. Angubolkul anticipates that Mr. Pichai will ease the Prime Minister's burden and introduce measures to stimulate the economy and provide relief to the populace.
"The Ministry of Finance is pivotal as it primarily oversees the country's economy. Mr. Pichai will lead the economic team, coordinating with other ministries and the private sector, particularly the Chamber of Commerce, in agreement with our stance," remarked Mr. Kriengkrai Thiannukul, Chairman of the Federation of Thai Industries (F.T.I.).
Mr. Thiannukul further noted that the Cabinet reshuffle primarily focuses on economic aspects, emphasizing the importance of the Ministry of Finance in driving continued economic growth. With Mr. Pichai assuming leadership and the addition of Mr. Paophum Rojanasakul as Deputy Minister, the Cabinet aims to manage the substantial budgets for 2024 and 2025, particularly in support of the forthcoming digital wallet program slated for Q4 2024, which is crucial for sustained economic stimulation.
It is hoped that the new full-time Finance Minister, leveraging his extensive experience, will effectively address various economic challenges and crises, thus contributing to the country's economic advancement. Additionally, the Prime Minister has urged financial institutions to reduce interest rates by 0.25% for vulnerable groups and SMEs within the next six months, coinciding with the launch of the digital wallet project in the fourth quarter of the year to ensure continuous economic stimulation.
Capital Market Response to New Cabinet
Mr. Prakit Siriwathanaket, Managing Director of Investment Strategy at Merchant Partners Asset Management Company Limited, commented positively on the formation of the new Cabinet, especially the appointment of Mr. Pichai Chunhavajira as Deputy Prime Minister and Minister of Finance. He believes this move bodes well for the Thai economy and capital market, instilling hope for positive developments and improved financial stability.
Mr. Kitphon Praipaisankit, Assistant Managing Director at UOB Kay Hian Securities (Thailand) Public Company Limited, echoed similar sentiments, highlighting Mr. Pichai's expertise in the Thai capital market and his capacity to steer the economy forward. With Mr. Pichai's extensive knowledge and understanding, coupled with his past experiences, Mr. Praipaisankit expressed confidence in Mr. Pichai's ability to chart a promising course for the Thai economy, emphasizing his unique expertise in capital markets and investor relations.
SMEs Call for Grassroots Economic Solutions
Mr. Saengchai Teerakulwanich, President of the Thai SME Confederation, emphasized the need for economic solutions tailored to address grassroots challenges. He underscored the importance of innovative financial and fiscal policies aimed at stimulating the economy and addressing real economic issues faced by SMEs and the populace. Mr. Teerakulwanich outlined several unresolved issues awaiting government attention, including household debt, the digital wallet project, and measures to support human resource development and job creation.
Mr. Teerakulwanich called for a comprehensive approach to address these challenges, emphasizing the need for policies that promote sustainable economic growth and income generation.
Establishment of Tourism Support Working Group
Mr. Adit Chairattananon, Secretary-General of the Thai Tourism Business Association (Atta), reiterated the importance of using tourism as an economic driver, expressing confidence in the government's approach to leverage tourism for economic recovery. He proposed the establishment of a joint working group comprising representatives from the private and public sectors to facilitate policy planning, evaluation, and implementation in the tourism sector. This collaborative effort aims to enhance the efficiency of tourism-related initiatives and ensure alignment with industry needs and objectives.
Real Estate Sector Response to Strong Economic Team
Mr. Prasert Taedulyasatit, President of the Thai Condominium Association, commended the formation of the new Cabinet, particularly the composition of the Ministry of Finance, which he described as the strongest team ever assembled. He expressed optimism that the combined expertise of both seasoned and new-generation officials would effectively address economic challenges and drive long-term stimulus measures. Mr. Taedulyasatit outlined proposals to stimulate real estate investment and development, including revisions to loan-to-value ratios and measures to attract foreign investment.
"In addition, I want the government to push Real estate project investment Large assets such as land at Mae Nam Station of the State Railway of Thailand (SRT) were used to develop the Entertainment Center project connecting Rama 4 Road and connecting Bang Kachao. A new global landmark Including investment in the monorail connecting to Laem Phak Bia. to continue onto Thailand Riviera Road of the Department of Rural Roads Create a circular economy for the area, etc."
Infrastructure Investment Advocacy
Mr. Kongsak Khuphongsakorn, President of the Phuket Chamber of Commerce, highlighted the importance of continuity in infrastructure projects, urging the government to prioritize key initiatives such as the Kathu-Patong Expressway Project and the Raw Water Pipeline Network. He emphasized the critical role of infrastructure development in supporting regional growth and economic sustainability.
Mr. Wichian Jentrakulroj, President of the Kanchanaburi Chamber of Commerce and Managing Director of Srifa Frozen Food Company Limited, called for energy restructuring and reforms in the oil price structure to address pressing economic concerns. He urged the government to focus on addressing fundamental issues such as electricity and gas prices to alleviate financial burdens on the populace.
The closure of Emmanuel Massage Parlor in the Ratchada area has sent shockwaves through the business community, signaling a significant shift in the landscape of Bangkok's real estate and nightlife sectors. The decision to sell the land at 1 million baht per square meter underscores the changing economic dynamics and social behaviors impacting traditional establishments.
The transformation of entertainment streets like Ratchadaphisek into vibrant business hubs reflects the evolving urban landscape guided by Bangkok city planning. The rise of electric trains and the redevelopment of prime locations further accentuate the transition towards modern economic districts.
The demise of traditional massage parlors, exemplified by Emmanuel, Poseidon, and others, highlights the challenges facing businesses unable to adapt to shifting consumer preferences and economic realities. The COVID-19 pandemic has accelerated this trend, pushing many establishments to reinvent themselves or face extinction.
Real estate experts, such as Mr. Wasan Kongchan and Mr. Surachet Kongcheep, emphasize the dwindling popularity of massage parlors contrasted with the high demand for prime land in strategic locations like Ratchada Road. The area's evolution into a new central business district reflects broader urban development trends reshaping Bangkok's skyline and social fabric.
As Bangkok embraces new office buildings, condominiums, and shopping centers, the decline of nighttime businesses underscores the importance of adaptation in a rapidly changing environment. The fate of massage parlors serves as a poignant reminder of the imperative to innovate and evolve to remain relevant in today's dynamic marketplace.
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