Thai finance minister candidate seeks debt reduction. The finance minister-designate of Thailand’s election-winning Move Forward party pledged to raise welfare expenditure, the minimum wage, and growth by opening the economy to competition and reducing corruption.
Southeast Asia’s second-largest economy gained 2.6% last year after a slow COVID-19 recovery. Political unrest has kept Thailand behind Vietnam and Indonesia for years.
After gaining the most seats in a May 14 general election, the progressive Move Forward seeks to lead a coalition. Voters expressed their desire to replace ten years of military and military-backed administration.
The party, popular among young urban voters, wants to raise the minimum wage by 27%-37%, which has unnerved some businesses.
Sirikanya Tansakul, 42, Move Forward’s economic team leader and finance minister candidate, said debt-burdened households would be the priority.
“Household debt is the biggest issue,” Sirikanya told Reuters. One in three of Thailand’s 66 million citizens is in debt.
The French-educated Sirikanya said a Move Forward government would help homes with utility bills and provide small businesses incentives.
“Household income should grow 5% per year,” she stated. “A stronger grassroots economy will ripple.”
Sirikanya’s route to top finance is uncertain.
Her party’s military-linked competitors enjoy a constitutional advantage that might lead to a government. She believed Move Forward could form a coalition.
The former public policy researcher said a Move Forward government would raise the minimum wage immediately while considering private sector concerns and supporting business.
Some economists are optimistic about reform under a party that supports market liberalization and efficiency.
Thammasat Business School professor Pavida Pananond said Move Forward’s initiatives would be “constructive” for a slow economy if implemented gradually.
“It is natural that business sectors have concerns because many are afraid of change,” said Pavida.
“Sustainable growth may be difficult without Move Forward’s institutional restructuring.”
Sirikanya claimed Move Forward would streamline revenue, introduce new taxes, and reduce corruption to offset social spending.
We must reorganize the budget… We must remove much fat.”
Move Forward will also open up areas like the $14 billion alcohol industry, controlled by two of the nation’s wealthiest families.
“We are pro-market,” Sirikanya added. “If you look at every single piece of our policy platform that we are are trying to de-monopolize, it means that we want competition to be more fair and we want to be more efficient.”
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