Thaksin urges economic reform, calls for a liquidity boost to support small businesses, and predicts a global financial realignment within five years. He criticised the Bank of Thailand’s caution and suggested a BRICS alignment to counter Western economic dominance.
Former Prime Minister Thaksin Shinawatra, last Thursday night in Bangkok, predicted a realignment of the world’s financial system within the next five years. The Pheu Thai Party figurehead and father of Thailand’s Prime Minister, Thaksin Shinawatra, was the guest of honour at the Forbes Global Chief Executive Officer Conference held at the Ritz-Carlton in Bangkok. Thaksin also used the occasion to chide the Bank of Thailand for being too protective of Thailand’s banks. In brief, he called for an injection of liquidity into the economy, not just the banking system.
On Monday, former Prime Minister Thaksin Shinawatra thanked Udon Thani voters after the Pheu Thai Party’s win on Sunday night in the province. The party secured the presidency of the local Provincial Administrative Organisation. Nonetheless, the win by Sarawut Petchpanomporn, while decisive, was not the blowout party stalwarts had been hoping for.
Its final tally was 327,487 votes compared to 268,675 votes for Kanisorn Khurirang of the People’s Party. In short, it shows that the younger, more progressive party is gaining ground.
Thaksin reflects on decisive victory as younger party gains ground in Udon Thani provincial election
Nevertheless, Thaksin on Monday used the candour that so endeared him to the Pheu Thai Party base on the campaign trail.
In brief, he thanked the voters for coming out against a strong People’s Party performance. Crucially, he acknowledged that defeat would have been a stinging setback for him personally — in short, a major personal embarrassment.
On Thursday night, Mr. Thaksin was the star of the Forbes Global Chief Executive Officer Conference in Bangkok. Thailand’s most dynamic Prime Minister, who governed from 2001–2005, is known worldwide.
He is widely associated with a golden era in Thailand’s democracy and economic affairs after the country recovered from the disastrous 1997 financial crisis. At the Ritz-Carlton Hotel in Bangkok on Thursday, Mr. Thaksin was interviewed by Steve Forbes.
Mr. Forbes is the Editor-in-Chief and Chairman of Forbes Media. Significantly, the former premier suggested that Thailand was aligning itself with the BRICS Conference of Nations.
Reportedly, the kingdom, along with Malaysia, Indonesia, and Vietnam, has applied to join the group. At this time, BRICS membership consists of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.
Thaksin promotes BRICS alliance amid economic reforms, advocates global financial system realignment
In effect, BRICS has emerged as an axis of opposition to the domination of the world’s financial system by Western powers, particularly the system that emerged after the historic Bretton Woods Conference in 1944.
In summary, this system has long been dominated by the United States and the US dollar. On Thursday night, when questioned about the economic agenda of incoming US President Donald Trump, Thaksin’s reply was intriguing.
He appeared to predict a rebalancing of the world’s financial system within the next five years. Meanwhile, his daughter, and the current Prime Minister, last week spoke by phone with President Trump.
Nonetheless, Thailand will be in the crosshairs of a proposed general tariff rate of 10–20%, in addition to a 60% rate on Chinese goods. On Thursday night, Mr. Thaksin appeared sceptical about this.
Essentially, he said it would increase costs for US consumers. However, there is a growing body of opinion that exporters may be forced to absorb the extra tax cost as the US seeks to create domestic alternatives and reorganize supply chains.
Certainly, Thailand may face higher US tariffs. But feels US moves will be tempered and have an upside
On the other hand, Thaksin’s scepticism was supported by Trump’s choice on Monday for Treasury Secretary for his incoming cabinet.
Scott Bessent is on record as suggesting that Trump’s tariff policies will be gradual so as not to shock the business and financial sectors. In short, he is seen as a more nuanced and conservative choice.
Mr. Thaksin also insisted that Thailand would benefit from increased investment as firms relocate out of China.
However, the result of the last US-China trade war, which commenced in 2017, showed that the net effect of retaliatory world trade measures was damaging to Thailand’s economy.
On Thursday, Mr. Thaksin focused much of his time on pointing out that the kingdom’s central bank must address the needs of small businesses and borrowers. This comes as, on Monday, a central bank executive revealed that Thailand has ฿5 to ฿6 trillion of excess liquidity in the banking system.
Ex-PM calls for liquidity injection and economic policies to support small businesses and borrowers
However, there is growing evidence that banks are simply not lending. This comes as Ms. Paetongtarn’s government is ready to announce a wide-ranging household debt initiative in December.
Basically, interest will be waived or suspended for up to three years for borrowers in difficulty. Certainly, such a move will prove controversial.
Thaksin on Thursday night argued that the central bank must be more responsive to the realities of the economy on the ground. In short, he claimed it was far too preoccupied with protecting the financial health of Thailand’s banks.
Monday’s revelation on bank liquidity tends to support this. At the same time, Mr. Thaksin insisted that foreign investors and firms relocating to Thailand must pay taxes, particularly if they are benefiting and profiting from doing business in the country.
Meanwhile, he urged all Thai business concerns to begin thinking about their present business models. The former premier highlighted as an example the Chinese behemoth Temu. Certainly, this is presently a major threat to small Thai business concerns and the wholesale trade.
Thaksin criticises central bank. Calls for economic responsiveness and support for grassroots concerns
Indeed, in October, Indonesia moved to ban the revolutionary Chinese direct sales app. The expanding Chinese app allows end consumers to buy directly from large manufacturers and sellers at razor-thin margins.
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Undoubtedly, the app has been causing havoc for Thailand’s small businesses this year. This comes as the country, at the same time, struggles to cope with a deluge of cheap Chinese exports. Products that cannot be sold in Western markets due to increased protectionism.
Finally, Thaksin also emphasised the Association of Southeast Asian Nations (ASEAN) unity. In short, he appeared to suggest that Thailand and other ASEAN countries should collaborate. For instance in developing alternative export markets and standing up to Western protectionism.
Thailand is currently progressing talks toward a European Union free trade deal. In the meantime, business leaders have called on the government to develop a stable trade pact with the United States.
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Further reading:
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