Business leaders pressure govt for positive measures

Their reaction came after Finance Minister Surapong Suebwonglee promised to introduce additional measures over the next six months on top of the Bt46-billion stimulus package announced earlier.

Thanavath Phonvichai, director of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, said the country's tax structure should not be  changed because it would hurt the government's revenue in the long run. Instead, he said, the government should focus on stimulating growth in the tourism industry, as it would be the most efficient method to boost income nationwide.

Other measures that should be placed high on the agenda include investment in mega-projects, infrastructure development in urban areas, improvement of the irrigation system and the promotion of alternative fuel crops to increase revenues in the farming sector.

Ratanachai Nantapramote, managing director of Nava Leasing Public, said stimulus measures might "look" positive, but they would not last long because they do not tackle the root of the problems.

He said the government should first ensure stability in the political front before the private sector has enough confidence to invest and consume. "For instance, minimum credit card payments could be reduced from 10 to 5 per cent, thereby giving cardholders more cash on hand," Ratanachai said.

Som Pisarnsopon, head of the ACL Bank's Finance and Strategy Division, said the government should enhance productivity by increasing investment in items like Internet services and education.

"If people are educated, they will know how to select good politicians. Thai politics is in a mess right now, because people can't differentiate good politicians from the bad ones," he said. "The stimulus measures would need time to take effect and would not serve the economy in the long run. The government should launch long-term measures to strengthen our competitiveness."

Siriporn Praesri, office and marketing manager of Siam Food Services Ltd, said the government should ease the complicated procedure of importing food products, and also revise the Food and Drug Administration so the registration of imported products is not so time consuming.

Wichian Mektrakarn, president of cellphone operator Advanced Info Service, said the government should push for the allocation of new telecom licences to enable cellular operators to invest in new businesses. Mobile service operators are waiting for licences from the National Telecommunications Commission to run the 3G broadband service.

Frank Tokunaga, vice president of Sanyo (Thailand), said the government should help the private sector reduce its expenses by offering tax incentives in exchange for reduced energy consumption.

The government should also maintain the currency at Bt37 to Bt40 against the US dollar to help exporters, he said.