Bangkok: Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, expressed satisfaction after S and P Global Ratings maintained Thailand's credit rating at BBB+ with a stable outlook. This decision, made on June 18th, reflects confidence in Thailand's economic resilience and fiscal stability, with projected economic growth of 2 percent for the year. Ekniti emphasized that political stability is crucial for continued policy implementation, aligning with the country's long-term strategies. Simultaneously, the International Institute for Management Development (IMD) elevated Thailand's competitiveness ranking from 30th to 26th among more than 70 economies.
According to Thai News Agency, Ekniti mentioned that the upcoming meeting of the Economic and Social Development Council (ESSC) will focus on restructuring four key areas and launching the 'Thailand Fast Pass' initiative. This project aims to amend investment laws without relying on government budgets, setting a model for efficient regulatory changes to promote investment. The Joint Public-Private Sector Committee for Economic Problem Solving (JPC) will convene its first meeting on June 22nd to address these issues.
Ekniti highlighted the role of the IPO in driving Thailand's long-term development, with Prime Minister Anutin Charnvirakul as chairman and himself as vice-chairman. He instructed the IPO secretariat to prepare agendas that align with S and P, Moody's, and IMD's interests, focusing on infrastructure, technology, human resources, and regulatory reforms. The Thailand Fast Pass project, officially launching on June 23rd, showcases the potential of regulatory adjustments in boosting investment.
Ekniti underscored the importance of investment in infrastructure, human resources, and regulatory reforms, as highlighted by Moody's and S and P. He noted that removing unnecessary regulations can significantly drive investment without requiring large budgets.
Under the National Economic and Social Development Council (NESDC), Ekniti announced plans to form sub-working groups tackling infrastructure, trade and competitiveness, business law and regulations, and labor. He anticipates substantial improvements within 3-4 years through a public-private partnership model.
Regarding competitiveness rankings, the IMD Institute assessed four areas: economic efficiency, government efficiency, private sector efficiency, and infrastructure. While international trade indicators declined, international investment improved, reflecting an increase in foreign direct investment. Fiscal indicators also improved, particularly in tax system ease, though business law and licensing procedures require attention.
Ekniti expressed concern about infrastructure, specifically energy intensity, where Thailand ranks 67th due to high import dependence. He stressed the necessity of accelerating the energy transition to mitigate risks.
Commenting on the economic situation, Ekniti noted that Thailand faces inflation and a high cost of living crisis, primarily due to high energy costs. He pointed out the structural issue of oil and natural gas import dependence. Despite challenges, Thailand's commitment to fiscal discipline and policy efforts has bolstered investor confidence, as seen in the improved Thai capital market performance.