Private Sector Pushing For End To Political Uncertainty

A month after the May election, government formation talks continue and the private sector is uncomfortable with the uncertainty that currently exists. They fear that it could slow growth. Foreign investors are also observing developments in case investment rules change.

• According to the Bangkok Post, an Election Commission (EC) source has confirmed that 330 of the MPs-elect do not face any complaints but another 50 need to be investigated, including possible PM Pita. By law 380 of the 400 constituency MPs need to be endorsed by the EC. Move Forward and the business sector have asked the EC to endorse the election results as soon as possible to reduce uncertainty.
• The BoT warned that a higher minimum wage, which was promised during the election, may amplify labour costs and boost goods prices. It remains concerned about the inflation outlook.
• The support of some senators will be needed for a new PM to be approved. Proposed changes to the law regarding insulting the monarchy have been a sticking point for many. Now the senate wants to discuss the issue with the parties likely to form government to find a middle ground.