The recent order by the Constitutional Court to suspend Move Forward Party (MFP) leader Pita Limjaroenrat from his duties as a member of the House of Representatives has prompted apprehension within the business sector regarding potential street protests and the impact on the economy.
Nath Vongpanich, president of Central Restaurants Group (CRG), acknowledged that while politics does not directly influence the expansion of the restaurant and beverage business, a swift appointment of a new prime minister is desired to effectively manage the country. He stressed that political stability is a crucial factor in attracting foreign investment.
Praphon Potivorakhun, deputy managing director of Mitsubishi Electric Kang Yong Watana, expressed concern over the possibility of street protests and their potential negative impact on the country’s economic recovery. He warned that a domestic economic slowdown, combined with an unstable political situation, could deter foreign investment in Thailand.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), expects the Pheu Thai Party to lead a new government and initiate economic plans.
Despite these political developments, Kriengkrai expressed confidence as long as the process of establishing the new government adheres to the timeline. The FTI anticipates a new prime minister will be appointed during the third parliamentary voting session. Kriengkrai highlighted that any delays caused by political conflicts, including street demonstrations by Pita’s supporters, would raise concerns. Such delays could impact new investment plans and budgeting for the upcoming fiscal year.
According to the FTI, many business leaders are awaiting the composition of the new government and its policy direction before making decisions regarding their investment projects. Additionally, Thailand needs to expedite the budget planning process to stimulate economic recovery.