Competent ministers key to boosting government trust, economists say

Only highly competent and well-recognised individuals should be appointed to head key ministries to strengthen the government’s credibility and stability, two leading economists said on Reporters' Day.

They were Somkiat Tangkitvanich, president of the Thailand Development Research Institute (TDRI), and Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), speaking at a panel organised by the Thai Journalists Association.

Amid doubts about the transparency of the election and a host of challenges facing the country — including trade wars, climate change, the war in the Middle East and digital disruption — Somkiat said it is imperative that the new government, which has yet to be formed, inspires confidence and trust. Therefore, those appointed to head key ministries must be well qualified.

Describing the current situation as unusual and volatile, he said the new government should delay the implementation of mega-projects that require huge investment and would tie up state budgets for several years.

With uncertainties in the Middle East and volatile oil prices, he said the government should not subsidise oil prices for too long, but should instead allow market mechanisms to work to reflect realities, which may encourage people to become more energy-conscious.

Danucha said Thailand’s major challenge is to remain resilient and able to cope with external impacts, whether geopolitical changes, climate change or wars, while also building confidence in the country among the public and foreign investors.

To boost trust and confidence, he noted that it is vital for key cabinet ministers to be competent and honest.

The immediate challenge for the new government, he said, is the impact of the war in the Middle East on global oil prices. He predicted that crude oil may surge to US$125 per barrel if the war drags on for more than a month and the Strait of Hormuz remains closed.

He noted, however, that Thailand has sufficient oil reserves to last about 95 days, which should provide temporary respite.

Meanwhile, Prime Minister Anutin Charnvirakul said today that he is concerned the fallout from the war in the Middle East could have extensive impacts on Thailand, from oil and consumer goods prices to the stock market.

He said he has instructed authorities to closely monitor the situation in the Middle East and try to mitigate its impacts on the public.