This year will see political conflict boil over with
fugitive former prime minister Thaksin Shinawatra as the "death trap"
for the Yingluck Shinawatra administration, while the soaring cost of living
could also spell trouble, deputy Democrat Party leader Korn Chatikavanij warned
yesterday.
Korn, the ex-finance minister,
said the economic risks confronting Thailand will originate from both domestic
and foreign fronts. The public is worried about the surging cost of living -
especially after prices jumped as a result of the recent flood and won't easily
come down.
Deputy Premier Kittirat
Na-Ranong, who is also the commerce minister, should do more, he said.
The political instability and
disputes will deal a direct blow to the economy. This should have been avoided
because the Pheu Thai Party scored a resounding victory in the general
election, he said.
Economic growth was a paltry
1.1 per cent last year, according to the Finance Ministry, he said. This is
very low, and stemmed from the mismanagement of the flood crisis. It's still
unclear how much the impact will extend into the current year.
As for the international
outlook, the oil price is still a risk factor but there appears to be less
volatility, as bigger economies are demanding less oil. Politics in the Middle
East need to be carefully monitored, he said.
The eurozone debt crisis also
calls for close scrutiny, as it may have serious consequences for the economy
in terms of trade and tourists, he said.
"The economic expansion
will also be affected by political factors such as the US presidential
election, which will likely not be good news for trading partner nations. The
economic expansion in the US is also not good and will impact the Thai economy.
This is combined with the slower growth of other trading partners like China
and India. So the prospects [for this year] are not as bright as they should
be.
"As for the stimulation of
domestic consumption, it will be up to the government's management, which
includes fiscal tools, so I don't think there will be a crisis. Nevertheless,
it will be better than 2011 unless there is a severe political conflict or
major natural calamity that the government can't handle," he said.
The government's forecast for
the economy to expand by 7 per cent this year is possible because the base was
very low last year. However, the government should not get carried away with
the growth figure as it doesn't reflect the true well-being of the nation, he
said.
"I believe that some of
the 15 million voters are beginning to be disappointed as the government has
failed to act as it advertised during the election campaign. This includes the
Bt15,000 minimum wage, guaranteed rice price, debt moratorium and the expectation
that living costs will be reduced. So it is believed this will definitely have
an impact on the electoral base of Pheu Thai.
"The government must
recognise that any attempt to stir conflict as a result of acting for their own
good should not be done, especially with regard to any actions that serve
Thaksin. This will be their death trap," he said.
The latest Dusit poll shows
that 52.2 per cent of respondents are worried about the high cost of living,
42.7 per cent believe that politics will be as chaotic this year because
politicians remain the same.
The survey of 2,114 people
conducted from December 20-31 revealed that more than 40 per cent are concerned
about corruption, especially budget-related graft.
On the economy, 44.2 per cent
believe this year will be better, although the government should quickly
restore investor confidence.
On social issues, 53.6 per cent
of respondents were concerned about drugs and crime and other vices while 40.6
per cent expect no improvement as the penalties for criminals are not grave
enough.
The Nation/Asia News Network
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