Business owners should adjust themselves and support the new government’s plan to increase the daily minimum wage, say economists from the Panyapiwat Institute of Technology and the Thailand Development Research Institute (TDRI).
Tag Archives | Thailand Election 2011
Thailand could witness its economic growth slow to 4-4.5 per cent this year, given its automotive sector hit by the supply chain disruptions from Japan’s disasters and the tightened monetary stance to curb inflation, according to the Asian Development Bank.
Key elements of the incoming government’s populist policies, particularly the planned increase in the minimum wage and heavy subsidies, are a major concern for companies, as they fear the measures will slow the business sector down over the remainder of the year and during 2012.
The Revenue Department is ready to cut the corporate income tax rate, though it is also proposing a rise in the value-added tax (VAT) rate, says Satit Rungkasiri, director-general of the department.
The Thai Consumer Confidence Index (CCI) surged to 81.7 points in June, the highest in four and a half years, with consumers expecting the new government’s policies to result in better economic conditions.
Economists are advising the new government to focus more on income distribution, as it is an efficient way to strengthen the country’s economic fundamentals.
Exporters are uncomfortable with the prospect of a strengthening baht, as they want a stable exchange rate to help them keep pace amid tough global competition
As the dust settles on Pheu Thai’s landslide victory, the political situation in Thailand has become clearer but the economic situation for the property sector is still ambiguous.
Stock investors reacted positively to the election result, with the Stock Exchange of Thailand Composite Index opening 33.48 points or 3.21 per cent higher.
If implemented, the political parties’ election campaign promises, and their populist policies in particular.