Thailand: Business wary of political climate

While the Thai economy had been pressured by global geopolitical tensions leading up to the National Economic and Social Development Council’s decision last week to revise down the upper range of its growth forecast to 3.2% from 3.5%, the business sector also has to keep a close eye on the stormy domestic political climate as it could lead to a critical juncture for the country, which is still undergoing rehabilitation.

The opposition parties submitted a petition on Aug 17 seeking the Constitutional Court’s ruling on the legitimacy of Prayut Chan-o-cha’s premiership, as it is concerned Gen Prayut’s rule may exceed the eight-year limit for the position as laid out in Section 158 of the 2017 constitution.

Even though political experts believe there is a slim chance Gen Prayut could be deposed, as the timeline for the next general election in 2023 draws near — when the current government will complete its four-year term — such an incident could create more turbulence for the Thai economy.