NationThailand-June 10
The business sector is closely monitoring factors that could impact the economy and business activities for the remainder of 2024. These include the Constitutional Court’s upcoming ruling on Prime Minister Srettha Thavisin’s appointment of Phichit Chuenban as Minister of the Prime Minister’s Office despite his being disqualified from holding a ministerial post. Another is the case of the Move Forward Party, accused of attempting to overthrow the constitutional monarchy. Business leaders are also closely watching the US presidential election, which will take place in November. Other critical issues to which businesses must pay attention are geopolitical conflicts in the Middle East, Asia, and Europe, which could affect investment flows, energy prices, and shipping costs. Domestically, the economy faces risks from pressures to restructure the economic and industrial sectors, as well as from household debt problems that impact consumption. But while some are concerned that political uncertainties could undermine confidence, others believe the economy could show improvement in the second half of the year. Among these is Jareeporn Jarukornsakul, chairman and CEO of WHA Corporation, who believes the economy will be boosted by tourism and budget disbursements for fiscal year 2024-2025. She also noted that the US presidential election could influence global dynamics as both candidates view China as a threat and aim to counter China to gain political support. This could lead to a significant shift in the production base towards Thailand. Thailand’s position as a hub for electric vehicle (EV) manufacturing is also expected to attract more investment in the electronics and semiconductor sectors from both Chinese and US investors. The initial investment wave is expected in the EV sector, followed by supply chain relocations, including the electronics and semiconductor industries, positioning Thailand as the world’s third-largest producer of electronic circuit boards (PCBs). Nonetheless, political stability remains a significant concern for investors, who are keen to understand the direction of Thai politics. Read more at: https://www.nationthailand.com/business/economy/40038684
