Business leaders voiced pessimism over the outcome of Thailand's first post-coup polls yesterday, saying it would not likely ease the political uncertainty that has plagued the economy for two years.
The People Power Party (PPP), which was overtaken by allies of deposed prime minister Thaksin Shinawatra, looked set to win 228 of the 480 parliamentary seats up for grabs, but fell short of a majority after Sunday's election.
Its main rival, the Democrat Party, was set to win 166 seats, with five minor parties sharing the rest.
PHOTO: EPA
The PPP immediately began wooing potential coalition partners, but the Democrats refused to bow out and said they would set up a new government if PPP fails to.
Thai markets were closed yesterday for a national holiday, but with the shape of a new government still uncertain, business leaders said they had little confidence that the country's lackluster economy would pick up next year.
"We still have lots of political uncertainty after the election," said Pornsilp Patcharintanakul, deputy secretary-general of the Board of Trade, a major business body.
"The next coalition government will not be able to ease political uncertainty because its foundation is shaky. I believe that the new government will last no more than one year," Pornsilp said.
Thailand's economy is expected to grow 4.5 percent this year, which ranks among the lowest in South-east Asia, with business and consumer confidence plummeting to five-year lows owing to prolonged political uncertainty.
When the military ousted Thaksin in a bloodless coup in September last year after months of protests, hopes were high that the army-backed government would lift the country from its political morass and set the economy humming.
But the junta made a series of policy blunders, including tough capital controls, and has failed to restore business confidence at home and abroad over the past 15 months.
Adisak Rohitasune, vice chairman of the Federation of Thai Industries, the kingdom's largest business group, said he had little hope that the new elected government would do any better.
"[The] stability of a new coalition government is questionable. We don't know how well the new government can unite [a divided country] and push forward economic policies," Adisak said.
Analysts have predicted the outcome of Sunday's election will be unlikely to resolve deep divisions between anti-Thaksin urban dwellers and the rural masses, who remain loyal to the deposed leader.
PPP drew most of its support from farmers, while the Democrat Party was popular with Bangkok's middle-class, who spearheaded anti-Thaksin protests that culminated in the coup.
Supavud Saichua, a senior economist at Phatra Securities, said the economy was unlikely to turn around after the election given the country's polarized political landscape.
"It is difficult for investors to regain confidence after the election because politics will remain intense" with struggles between pro and anti-Thaksin forces, Supavud said.
Promon Suthiwong, a former executive of Thai conglomerate Siam Cement and chairman of the Board of Trade, said he saw no end to the political uncertainty plaguing the country.
"Nothing is clear at the moment in terms of who will be forming a new government. Politics has yet to stabilize due to lots of uncertainty," Promon said.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS