Delay in Formation of New Govt Could Impact Economy: TCC

BANGKOK, July 14 (TNA) – The private sector keeps a close watch on the next parliamentary vote on a new prime minister and has expressed concern that a delay in the formation of a new government may have adverse impacts on the economy.

Mr. Sanan Angubolkul, Chairman of the Thai Chamber of Commerce and Board of Trade of Thailand said that he believed that the process of democracy within the parliamentary system had been progressing steadily. However, the Move Forward Party’s prime minister candidate Mr. Pita Limjaroenrat was unable to secure enough votes in the first vote. After this, the eight party coalition alliance will likely engage in further discussions and negotiations to find a new way forward. It is important to closely monitor the situation. The second and third rounds are scheduled preliminarily for July 19 and 20.

Political demonstrations are considered a freedom of expression under the law, and today it is seen that all parties have accepted and respected the fair process. In the short term, it is believed that demonstrations will remain peaceful and not have a significant impact on the overall economy, which many parties believe can grow by 3-3.5% this year, he said.

However, it is still too early to assess the situation. The Thai Chamber of Commerce still believes that there will be discussions and efforts to reach a consensus and mutual understanding. Eventually, all parties will realize the benefits for the country and support the formation of a new government as soon as possible, he added.

If the government formation is delayed, the appointment of the cabinet and the announcement of policies to the parliament may occur in August or September. The national budget will then be finalized and it may take until the second quarter of 2024 to start the disbursement of the budget, which will delay and affect the confidence of the business sector and foreign investors. This is why the private sector is eager for the swift establishment of a new government, so that the Thai economy can grow as planned, said the TCC chairman. (TNA)