Thai PM vows to end business monopoly, plans more cash stimulus
Some outdated Thai laws will be amended to usher in greater competition in areas such as rice exports and liquor production
THAI Prime Minister Paetongtarn Shinawatra pledged to end monopoly in some businesses as she unveiled her administration’s priorities for next year, including plans for more cash handout to stimulate South-east Asia’s second-largest economy.
Some outdated Thai laws will be amended to usher in greater competition in areas such as rice exports and liquor production, Paetongtarn said in a televised address on Thursday (Dec 12) to mark the completion of her administration first 90 days in office. The changes will benefit small and medium enterprises, especially in liquor manufacturing, she said.
Some of Thailand’s biggest industries, from retail to power and liquor, are dominated by a handful of local conglomerates. Paetongtarn’s promise to dismantle monopolies also echoes the campaign by People’s Party, the nation’s main opposition group.
“All kinds of monopolies either by private sector or the government increases cost for people and make them poorer,” Paetongtarn said. “The government believes that ending business monopoly is important.”
Paetongtarn, 38, became Thailand’s youngest prime minister in August when her predecessor Srettha Thavisin was ousted by a court order for an ethics violation. Her administration has focused on bolstering economic growth through a mix of cash handouts, ramping up state spending and drawing foreign investment in areas such as data centres, high-value electronics and electric vehicles manufacturing.
The government will continue a cash handout programme next year with about four million senior citizens in line for 10,000 baht (S$397) each by Chinese New Year at the end of January, Paetongtarn said. Authorities distributed about 145 billion baht to nearly 14.5 million welfare card-holders in September, saying the move will spur consumption and help manufacturing.
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More than 30 million people had registered for the government’s so-called digital wallet scheme, the flagship programme of ruling Pheu Thai Party that leads a multi-party coalition. A third phase of the programme may be launched later next year, the premier said.
Paetongtarn is the third member of the influential Shinawatra clan to lead Thailand, after her father Thaksin Shinawatra and aunt Yingluck Shinawatra. Her administration is focused on reviving growth that’s lagged the pace of its neighbours over the past decade and slashing the cost of living for the country’s about 66 million people.
The government expects to lower electricity tariffs next year through restructuring of the local power industry, the prime minister said. An affordable housing programme using land owned by the State Railway of Thailand will be launched to provide homes to first-time buyers, Paetongtarn said. Beneficiaries may lease a 30 square metre condominium for 99 years, paying 4,000 baht a month for 30 years, she said.
With parts of Thailand ravaged by the worst flooding in decades this year, Paetongtarn said her government will pursue an integrated water management strategy to prevent frequent floods and droughts. The government will also take steps to curb drug-trafficking and address air pollution before the end of her government’s tenure in 2027, she said.
The electricity and other power charges will likely be lower next year as the government plans to take steps to restructure power industry and reduce unnecessary costs, she said. The administration is also working on a flat fare of 20 baht for all rail mass transit system in the Bangkok Metropolitan area, she added.
On Wednesday, Paetongtarn’s administration unveiled steps to provide relief to millions of retail borrowers and small businesses struggling to pay off debt.
The country’s household debt level calculated as a percentage of GDP at 89.6 per cent is the highest in South-east Asia and has been a major deterrent in boosting consumption and manufacturing.
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