Prime Minister Anutin Charnvirakul says it is a “nightmare” to see Thailand’s economy lagging behind Vietnam.
In his keynote speech at the Economic Reporters Association’s annual seminar, the premier said Thailand has fallen behind Vietnam, describing it as his worst nightmare and noting he never imagined Thailand would grow more slowly than other nations in Indochina.
“We need to work together as this is not beyond our capability. In the past we were leaders. With the strong foundations of the industrial and agricultural sectors, and Thai society as a whole, I am confident we can achieve renewed growth as the Thai economy remains resilient,” he said.
Mr Anutin said Thailand has many advantages, particularly its geographical position, which allows the country to serve as a land bridge for the region, and can result in it becoming the regional trade hub.
He emphasised the need to revive the Thai economy, increase employment, and promote domestic investment to build a stable tax base for the government, which is necessary to support the financial burdens of an “ageing” society.
The government is considering extending the retirement age for civil servants beyond the current 60 years, as people are living longer, said Mr Anutin.
On environmental policy, he said the government is accelerating its goal of achieving net-zero greenhouse gas emissions to 2050, 15 years earlier than targeted, helping Thai exports to become more accepted globally. To this end, the government plans to expedite enactment of the Clean Air Act and the Climate Change Act, said Mr Anutin.
“We must reset our way of thinking and review our actions — whether they are still necessary, effective, appropriate and aligned with global changes,” he said.
Meanwhile, Finance Minister Ekniti Nitithanprapas said at the same event if the economy is not stimulated during this government’s term, it could result in a severe downturn.
He said the Thai economy grew by 3% in the first half, with third-quarter growth projected at 1.7% and the fourth quarter only 0.3%. The issue is the administration only has a four-month tenure to work with, said Mr Ekniti.
Thailand’s economy before 1997 grew at an average of 7%, then fell to 3% after 1997. From 2012 to the present, growth failed to reach an average of 2%, largely attributed to low investment. Before 1997, investment comprised 40% of GDP, but after 1997 it dropped to only 23%, he said.
“The government will try to implement stimulus measures every week, such as resolving individuals’ debt issues and improving liquidity for small businesses,” said Mr Ekniti.
In November, the Finance Ministry is slated to revise the medium-term fiscal framework, which has been a concern for credit ratings agencies and resulted in an adjustment of Thailand’s outlook. He said the revision will cover revenue, expenditure and public debt management in a transparent manner, in a nod to the ratings agencies.
“We may not be able to accomplish everything within four months, as some measures require amendments to laws,” said Mr Ekniti.