Bangkok: "Wanwichit" highlights the government's initiative to engage in discussions with top CEOs as a strategic move to "restore confidence" and encourage bold investments from the private sector to tackle the global economic crisis.
According to Thai News Agency, Associate Professor Dr. Wanwichit Boonproong from Rangsit University's Faculty of Political Science remarked on the recent government meeting at Government House involving high-level executives from prominent businesses. He emphasized that this forum should not merely be seen through a political lens or as an indication of close associations between the government and capital groups. Instead, it represents an effort to build "economic confidence," urging the private sector to invest and continue propelling the Thai economy forward.
Dr. Wanwichit pointed out the prevailing uncertainties in the global economy, such as geopolitical conflicts, energy price fluctuations, rising production costs, and fierce competition for international investment. These factors are causing businesses to slow down their investments and approach expansion with caution.
In this context, he argued that the government's role extends beyond implementing economic stimulus measures. It must instill "confidence" in the private sector, demonstrating that the nation maintains direction, stability, and a government ready to listen and collaborate to surmount economic challenges.
During periods of global economic instability, investors consider more than GDP figures. They assess the government's stability, clarity of direction, and willingness to engage with the business community. Confidence emerges as a decisive factor in investment choices, according to Dr. Wanwichit.
This political science expert contends that the government's initiative to invite CEOs from various industries for direct conversations signifies an attempt to bridge the gap between the "public sector" and the "real economy." The business sector experiences firsthand issues such as costs, competition, purchasing power, employment, and investment barriers-information that may not always be captured in government reports.
Therefore, such forums are vital as "listening channels," enabling the government to comprehend the economic landscape from those actively engaged in it. This understanding allows for the formulation of policies that more effectively address challenges.
Dr. Wanwichit also underlined the pivotal role large businesses play in the Thai economy, being integral to the supply chain, employment, investment, and numerous small businesses. Continued investment from these large companies can sustain employment levels and keep the economy moving.
He cautioned that if the private sector lacks confidence and refrains from investing, the economy could decelerate swiftly, as the government alone cannot bear the national economy's weight. Therefore, creating an environment that encourages business investment decisions, ensuring a promising future for investment in Thailand, is crucial.
However, Dr. Wanwichit stressed the importance of shifting discussions towards achieving tangible outcomes. This involves reducing regulatory barriers, facilitating investment, accelerating infrastructure development, and providing support to businesses grappling with rising costs.
Talks that are merely performative, lacking subsequent policy implementation, may fail to build genuine trust. Furthermore, the government must balance economic progress, ensuring support for large enterprises does not overshadow medium-sized businesses, small enterprises, or the general populace. Steady economic advancement for Thailand necessitates the simultaneous development of large capital, SMEs, the labor force, and the grassroots economy.
If the government can assure the private sector of national stability, consistent policies, and genuine investment support, it could attract new investments, ultimately fostering job creation, income generation, and economic growth for the country, Dr. Wanwichit concluded.