PM: Investment key to high-income economy
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PM: Investment key to high-income economy

Pheu Thai highlights achievements since taking office and says much more remains to be done

Prime Minister Srettha Thavisin speaks at an event held by the ruling Pheu Thai Party at party headquarters on Friday. (Photo: Pattarapong Chatpattarasill)
Prime Minister Srettha Thavisin speaks at an event held by the ruling Pheu Thai Party at party headquarters on Friday. (Photo: Pattarapong Chatpattarasill)

The government aims to develop Thailand into a high-income economy through foreign investment and a raft of projects that will improve people’s quality of life, Prime Minister Srettha Thavisin said on Friday.

Speaking at an event held by the ruling Pheu Thai Party, Mr Srettha said the government had wasted no time and had worked relentlessly to tackle the problems facing the country.

The theme of the event was “10 Months Without Waiting, Moving Forward to Achieve 10 out of 10”. The “10 Months” reference was to suggestions made after the election last year, when the Move Forward and Pheu Thai parties were trying to form a coalition. Some people said they should consider waiting until the term of the military-appointed Senate expired in May 2024, since it was hostile to Move Forward. Pheu Thai disagreed, ditched Move Forward and successfully formed a new coalition.

Mr Srettha highlighted a number of issues the government has tried to address since it took office, among them better management of water resources to solve flooding, a new approach to unrest in the deep South, opening borders to stimulate tourism, regulating prices of agricultural products and tackling haze pollution.

“The government attaches importance not just to core policies. We’re giving our best and I am confident investment will follow,” he said. “We’re not only aiming to increase income for farmers but targeting a high-income economy, and attracting foreign investment is a must.”

Mr Srettha reaffirmed the government’s commitment to alleviate people’s debt problems, while admitting its efforts to tackle informal debt have yet to bear fruit. He said the decision by Thai banks to cut the minimum retail rate (MRR) for loans was a result of the government’s efforts.

Commercial banks agreed to cut the MRR by 25 basis points for six months to ease the financial strain on vulnerable clients after Mr Srettha met with chief executives of the country’s four largest banks. The talks followed a number of unsuccessful attempts to persuade the Bank of Thailand to cut its benchmark interest rate. 

Mr Srettha stressed that he entered politics not because he had political ambitions but because he wanted to elevate the quality of life of Thai people. He said the government has a little over three years left in office and it is determined to achieve its goals.

Prime Minister Srettha Thavisin and Pheu Thai leader Paetongtarn Shinawatra arrive at party headquarters on Friday. (Photo: Pattarapong Chatpattarasill)

At the same event, Pheu Thai leader Paetongtarn Shinawatra said the party made the right decision when it agreed to lead the formation of the coalition government.

However, she criticised the Bank of Thailand, saying its independence from the government was posing an “obstacle” to efforts to resolve a raft of pressing economic problems.

The country has relied heavily on fiscal policy to shore up the economy, she said, which has resulted in high public debt and budget deficits.

“If the BoT doesn’t understand and cooperate with the government [in its efforts to tackle economic problems], we can’t [win],” she added.

She said the country had lost opportunities for almost two decades due to military coups but Pheu Thai could reverse its fortunes before the next election.

“We just had a cabinet reshuffle and several academics praised the move,” she said. “Everything is moving forward and there’s no way things will get worse. We know our job is ‘thankless and endless’ but we’re willing to do it.”

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