Ex-PM Abhisit: Modern Legal Reforms Crucial for Thailand’s Economy

[webfact]

Abhisit Vejjajiva. File photo courtesy: Wikipedia

 

Thailand's economy is facing severe stagnation and cannot be revived merely through short-term fiscal measures, says former prime minister Abhisit Vejjajiva.

 

The country's current economic policies, including the government's 500-billion-baht digital money handout scheme, are expected to yield results for only one or two quarters at best.

 

In an interview with the Thai media, Abhisit underscored the necessity of updating and amending outdated laws to support the growth of modern businesses, especially those focused on clean energy and the green economy. These reforms, he asserts, are essential for Thailand to overcome its economic inertia and attract international investment.

 

Abhisit criticised the current government led by Prime Minister Srettha Thavisin, stating that its efforts to entice global businesses have not been as successful as anticipated. The former PM referenced Srettha's overseas meetings, which have so far failed to produce significant investment.

 

Abhisit highlighted that Thailand's outdated legislative framework is a major deterrent for foreign investors who are looking for a clear and robust business direction, particularly in modern sectors like technology and clean energy. Investors are also wary due to the government's lack of clarity regarding Thailand’s future business environment.

 

The former PM pointed out that even large tech companies like Microsoft have shown reluctance in committing to substantial investments in Thailand. In contrast, they have announced clear plans for countries like Indonesia and Malaysia.

 

Abhisit also argued that the current administration is focussing on sectors with minimal growth potential while neglecting critical structural issues. High household debt and uneven consumer purchasing power are among the problems exacerbating the economic stagnation, he said.

 

To address these deep-rooted issues, Abhisit called for comprehensive legal reforms. He noted that the government’s digital wallet scheme and the increase of the minimum wage to 400 baht per day would also require legal amendments.

 

The coalition government’s lack of unity further complicates efforts to revive the economy, according to Abhisit. He warned that without tackling the structural problems, the economy would likely falter again after the initial impact of any short-term stimulus fades away.

 

In response to these criticisms, Deputy Finance Minister Paopoom Rojanasakul acknowledged the sluggish economic conditions and reiterated the need for the digital wallet handouts to re-energize the economy.

 

Prime Minister Srettha, meanwhile, promised additional economic measures, to be announced later this month.

As Thailand endeavours to navigate its economic challenges, the call for modernising its legal framework and adopting a long-term strategy appears increasingly urgent.

 

-- 2024-06-24

 

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[ikke1959]

It is impossible to go forward if the old laws are not being upgraded, The 10k scheme is a burden for the country and will not do any good, but the raise of the daily wage is much better. The businesses are afraid it cost money, but when people have more money to spend they will sell more and it will be paid back. Besides that it is a long term investment as people get every day more salary. But with dinosaurs in the Government, people who only think how to get more money in their billions wallets, and keeping the people poor and uneducated it is impossible to break the monopoly. 

A big reform of the whole country is needed, instead of taxing people and goods as that will not solve any problem

[Ben Zioner]

27 minutes ago, webfact said:

The former PM pointed out that even large tech companies like Microsoft have shown reluctance in committing to substantial investments in Thailand. In contrast, they have announced clear plans for countries like Indonesia and Malaysia.

Malaysians speak English and have normal brains, Bahasa Indonesia is easy to pick up. While Thai brains are as convoluted as their gibberish. So if I was a business man I'd avoid Thailand only for that reason, while there are so many other negatives.

 

And let's no forget Vietnam.

[HaoleBoy]

52 minutes ago, ikke1959 said:

It is impossible to go forward if the old laws are not being upgraded, The 10k scheme is a burden for the country and will not do any good, but the raise of the daily wage is much better. The businesses are afraid it cost money, but when people have more money to spend they will sell more and it will be paid back. Besides that it is a long term investment as people get every day more salary. But with dinosaurs in the Government, people who only think how to get more money in their billions wallets, and keeping the people poor and uneducated it is impossible to break the monopoly. 

A big reform of the whole country is needed, instead of taxing people and goods as that will not solve any problem

It's not just the 400 thb per day for workers, but a rise in minimum salary for new graduated university workers from 15,000 thb to 25,000 thb per month!

[ikke1959]

1 hour ago, HaoleBoy said:

It's not just the 400 thb per day for workers, but a rise in minimum salary for new graduated university workers from 15,000 thb to 25,000 thb per month!

Indeed and 400 THB is not enough either it should be at least 500/600 THB a day.. or better pay monthly 15k than are all the holidays paid too for these people... Look how many free and substitute days are being cancelled and that will be better for the economy too

[mfd101]

Big structural change requires big long-term issues (education?) and unmentionables (feudal hierarchy, plutocracy and corruption) to be addressed ... with force if necessary.

 

I don't expect to see it even if I live another 20 years.

 

 

[hotchilli]

Thailand isn't seeking change from within, it looks for niche markets from outside to come in, set-up and make Thailand look great.

[Purdey]

The 10,000 baht giveaway will be spent in a few weeks. How does that help? 

An increase in the minimum wage will be passed on to consumers as higher prices. How will it help the national economy? 

Thailand remains last in Asian education so how will high technology companies justify investing here?

The government needs long term strategies.

[Dogmatix]

5 hours ago, hotchilli said:

Thailand isn't seeking change from within, it looks for niche markets from outside to come in, set-up and make Thailand look great.

 

Quite right. Grinning cheshire cat PM who lost the election clocks up air miles circling the world in search of the quick wins his boss tells him are out there for the taking - land bridge, huge investments by Microsoft and Tesla etc etc - but comes home empty handed each time. You notice that no one is talking bout the land bridge any more.  What a waster.

[Tropicalevo]

11 hours ago, webfact said:

the increase of the minimum wage to 400 baht per day would also require legal amendments.

 

10 hours ago, HaoleBoy said:

It's not just the 400 thb per day for workers, but a rise in minimum salary for new graduated university workers from 15,000 thb to 25,000 thb per month!

 

8 hours ago, ikke1959 said:

Indeed and 400 THB is not enough either it should be at least 500/600 THB a day.. or better pay monthly 15k than are all the holidays paid too for these people... Look how many free and substitute days are being cancelled and that will be better for the economy too

 

And lots more businesses will go bust or pull out of Thailand.

Not every employer is a rich, golf playing git with a chauffeur driven Mercedes.

[OneMoreFarang]

Abhisit was the best PM candidate Thais ever had. Smart and well educated and (it seems) honest.

But unfortunately, most Thais prefer corrupt incompetent liars.

 

 

[ikke1959]

3 hours ago, Tropicalevo said:

 

 

 

And lots more businesses will go bust or pull out of Thailand.

Not every employer is a rich, golf playing git with a chauffeur driven Mercedes.

No I know, but when people have money they will buy more and that will benefit everybody... from the shop in the street to big companies, but people see only the costs and not the benefits. Always trying to cancel progression

[HaoleBoy]

12 hours ago, Tropicalevo said:

 

 

 

And lots more businesses will go bust or pull out of Thailand.

Not every employer is a rich, golf playing git with a chauffeur driven Mercedes.

Don't forget the 40,000 thb / mo schools they send their kids to.

Try living on 400-600 thb per day wage ....  Just to pay for what you want.