Call for major rethink of economic policy

Economists slam lack of direction

- WICHIT CHANTANUSORNSIRI

Academics have raised concerns about the lack of tangible progress in the government's economic performance.

Aat Pisanwanich, an analyst in international economics and advisor on Asean affairs at Intelligence Research Consultant, said a cabinet reshuffle is needed to align the government's operations in a more unified direction, especially in economic ministries, as their performance remains unclear.

He said the ministries that should be changed include Finance, Commerce, Agriculture and Cooperatives, and even Foreign Affairs.

Mr Aat criticised the Finance Ministry for lacking clarity in its economic stimulus policies. He pointed to the direction of trade negotiations with the US, as the finance minister leads the negotiation team, but has not aligned with the Commerce Ministry, resulting in a loss of investor confidence.

As for the Commerce Ministry, Mr Aat said it has allowed the prices of many goods to fall, particularly palm oil, which dropped from 6 baht to 4 baht per kilogramme. This dip was partially due to China's refusal to purchase soybeans from the US, causing a surplus in the market.

The Commerce Ministry must clarify how many soybeans the government intends to import from the US, as soybeans are used as an oil substitute for palm oil, which can drive down its price, he said.

Furthermore, the Agriculture and Cooperatives Ministry should play a key role in setting standards for agricultural imports, and should be part of the trade negotiation team with the US, yet it has had no involvement in these matters, said Mr Aat.

In addition, the prime minister needs to take a more active role in coordinating among coalition parties to improve the government's efficiency, he said.