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Published on November 20, 2007

Speaking at a seminar on Thailand's economy after the election, hosted by the Federation of Thai Industries on the occasion of its 40th anniversary, Somkid said that clear policies establishing an economic framework would help the country grow sustainably and break through the present crisis.

He said the new government would be an important mechanism for resolving the economic slowdown of recent years. The new prime minister's first priority should be to select reliable and acceptable people to be ministers. Alternatively, such people should at least be appointed as a working group for the government, in order to help restore investor confidence.

Somkid said the new government should also announce a clear direction for the country's administrative policies in the long term, especially in terms of economic policy related to trade and investment.

"The new government should have a five-year economic framework, with economic targets and implementation plans," he said.

"The new government should also be brave enough to announce a consecutive three-year budget-deficit policy," he said, adding that this would help boost the economy, while spending by government projects would reach communities' grass roots. Meanwhile, the private sector should be pushed to continue its involvement in government projects, especially construction projects.

Somkid said the new government should exploit China and other Asian countries to drive Thailand's economy, because the Kingdom had an advantage in terms of strategic geography.

He said the country would encounter several negative factors next year, such as rising oil prices, the baht's appreciation and uncertainty about the US and other world economies. Therefore, the government should do everything clearly, in order to restore investors' confidence.

Regarding industry, Somkid suggested Thailand focus on real-sector productivity and innovation, so as to compete with its rivals amid market liberalisation.

Watcharapong Thongrung

 The Nation