Bangkok: Thanakhon points out that the emergency decree for borrowing 400 billion baht is necessary to maintain economic stability, care for the people, and lay the foundation for the country's future. Mr. Thanagorn Wangboonkongchana, a Member of Parliament from the Bhumjaithai Party and former Minister of Industry, debated the issue of requesting the House of Representatives to establish a special committee to investigate the spending of the 400 billion baht loan under the Emergency Decree. He stated that he agrees with the establishment of such a committee, as the Emergency Decree authorizing the Ministry of Finance to borrow 400 billion baht is a crucial measure directly related to the country's economic and energy security.
According to Thai News Agency, Mr. Thanagorn highlighted the challenges Thailand is currently facing, including geopolitical conflict, economic polarization, and severe volatility in the global energy market. With total energy imports amounting to approximately 1.4 trillion baht per year, or about 7-8% of the country's GDP, and more than 80% of domestic crude oil needs being imported, the economic implications are significant. The increasing imports of liquefied natural gas (LNG) further impact costs across the entire economic system, affecting transportation, food prices, industrial and agricultural costs, as well as the burden on small and medium-sized enterprises (SMEs). As a result, the cost of living rises, impacting purchasing power, employment, and economic stability.
Mr. Thanakorn further stated that the first 200 billion baht has been used for short-term relief and cost of living reduction, a measure understood by many as necessary given the high living costs. Government intervention is deemed crucial to maintain purchasing power and prevent broader economic repercussions. However, questions have arisen concerning the remaining 200 billion baht earmarked for energy transition and economic restructuring. Critics question the urgency of financing through borrowing instead of the regular budget and the lack of preemptive economic improvements. Mr. Thanagorn emphasized the need for the government to provide clear explanations to the public regarding these concerns.
He pointed out that global dynamics are shifting towards a new structural economic competition, with countries investing heavily in future industries. The past year saw global clean energy investments exceeding US$2 trillion, surpassing fossil fuel investments for the first time. With major economies like the United States, China, and the European Union making significant strides in clean energy and future technologies, Thailand must act swiftly to remain competitive. The IMF projects a lower growth rate for Thailand compared to regional peers, underscoring the urgency for economic restructuring.
Mr. Thanagorn warned that Thailand's competitors are accelerating investments, and global supply chains are evolving. Delayed action could result in higher future costs compared to current investments. He stressed that the 400 billion baht loan is not merely spending but an investment in maintaining competitiveness and economic stability. However, he advocated for transparency, cost-effectiveness, and fiscal discipline in managing this investment, alongside a robust debt management plan to sustain confidence in the Thai economy.
In conclusion, Mr. Thanagorn emphasized the necessity of the loan for securing Thailand's future, drawing parallels with successful projects like the 'Half-Price' initiative under General Prayut Chan-o-cha and the 'Thai Help Thai Plus' project under Prime Minister Anutin Charnvirakul, both of which received positive responses.