The delay in the election of a new administration worries Thailand’s corporate sector since it may have an impact on new investments and the tourism industry.The business sector is concerned that the delay may erode investor confidence and cause future investment choices to be postponed.
The delay in forming the government may have an impact on Thai investor confidence and fresh investment.
Violent demonstrations can harm the tourism industry and turn away potential customers.
The corporate sector is asking for a delay in the deadline for registering undocumented workers because it depends on foreign labor to power the economy.
They stress the value of a tranquil political atmosphere and exhort the interim administration to carry on with its duties. A new government must prioritize enhancing the capacities of SMEs and putting a premium on long-term growth, according to business leaders.
Street protests raise issues
There are worries that public demonstrations could harm Thailand’s reputation and turn off potential tourists. The effects of violent protests on corporate confidence and public safety are of particular concern to the event management industry.
The corporate sector is also getting ready to suggest extending the deadline for registering unauthorized workers. They emphasize the crucial role that foreign labor plays in boosting the economy, especially in industries like tourism, construction, and food processing.
According to the Kasikorn Research Center (K-Research), Thailand’s internal political climate would significantly affect the economy in the second half of this year.
If a new administration is not established by August, GDP growth may slow down. Furthermore, the Thai economy, notably the export and tourism sectors, would be impacted by China’s slow economic recovery.
K-Research forecasts a 3.4% increase in Thai shipments to China this year, despite a 1.2% decline in total Thai exports. However, the research center keeps its forecast for 2023 GDP growth at 3.7% and anticipates that the growth rate will increase in the second half of the year as a result of a recovery in the tourism industry and increased exports.
Another issue that the new administration must deal with is family debt, which would need to be reduced to 80% of GDP in the nation in about five years. The steps taken by the central bank to control household debt could result in a 2% decline in profitability for the banking sector.
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