Thailand
Thailand: FTI wants election results
The Federation of Thai Industries (FTI) is urging government agencies to announce election results soon in order to expedite the creation of a new government and ward off investor fears of post-election instability.
“As the private sector, we expect to see new developments to form a coalition government very soon because any longer would lead to a decline in confidence in the Thai business and investment sectors,” said FTI chairman Supant Mongkolsuthree.
The FTI is concerned that the country’s economy cannot wait any longer for a government to coalesce, as there are many economic policies and projects pending approval.
“There will be negative momentum and a political vacuum if Thailand does not have a new government take charge within a schedule,” Mr Supant said.
He said political stability after the election is the key concern from business operators and investors, while the new government should control all situations that occur going forward.
The private sector is observing Thailand’s political direction to see how post-election stability manifests, he said.
“All local and foreign companies are monitoring the situation. Once there is instability, firms could consider putting off expansion and investment projects,” Mr Supant said. “New investors might draw back their investment plans amid post-election instability.”
He said the FTI expects the next administration to overhaul the country’s corruption, which has been a protracted problem putting pressure on the country’s competitiveness.
Business operators and investors are also concerned about corruption, which has harmed Thailand’s reputation, he said.
“Corruption is a terrible issue, leading to political conflict for several years, while the FTI believes that once this problem has been resolved, the economy can move forward with sustainable growth in the long run,” Mr Supant said.
He said the corruption issue should be resolved in both political parties and at government agencies.
“The FTI wants to see Thailand clean up the corruption issue and form a system where all processes can be proven or examined at any time,” Mr Supant said. “The next government should restructure all government agencies and reduce the number of officials because Thailand has many government officials but they are not productive, while the government’s processes are very complex with many ministries and departments.”
He said the number of government officials should be cut by 20% in the next five years and by 60% over the next 20 years.
In addition, the FTI opposes a sharp minimum wage hike in the future as promised by various political parties, saying small and medium-sized enterprises (SMEs) will suffer the most from the policy because the market will be altered.
Parties promoted a higher daily minimum wage to attract voters, with promises reaching as high as 425 baht per day. The current daily minimum wage has seven rates: 308, 310, 315, 318, 320, 325 and 330 baht.
Mr Supant said business operators are concerned about populist promises because they would increase operating costs across several industries.
“We already have high labour costs because of daily minimum wage hikes in the past several years,” Mr Supant said. “There is not high demand for a sharp wage increase based on sentiment. Most companies already pay daily wages of over 400 baht.”
The FTI is calling for the next government to reconsider wage policies, instead suggesting wage rises in line with the market mechanism to reflect actual labour costs, Mr Supant said.
“The government should let economic circumstances drive the movement of wages, meaning a healthy economy can increase wages organically, based on the market mechanism, which is better for all stakeholders,” he said.
Source: https://www.bangkokpost.com/business/news/1652692/fti-wants-election-results