Bangkok: "Phongsak" has revealed that the government has established a significant challenge to tackle household debt, emphasizing a "Quick Big Win" approach.
According to Thai News Agency, Mr. Payong Sriwanich, President of the Thai Bankers' Association, shared insights after a meeting led by Prime Minister Anutin Charnvirakul with the economic team. The discussions focused on the strong baht and unusual capital inflows, highlighting the need for expedited efforts to "Connect the Dots." Mr. Payong noted it was unprecedented in the 58-year history of the Thai Bankers' Association for the Prime Minister to personally attend such a meeting.
The meeting with the Prime Minister addressed concerns over the strong baht and significant capital inflows, speculating on the movement of gray capital. The Prime Minister clarified these issues, stressing the urgency of linking financial security systems. Various market mechanisms, including the money and capital markets, the exchange rate, and capital flows, are being integrated. The Bank of Thailand and the Anti-Money Laundering Office are expediting this process.
The government has posed a significant challenge to addressing household debt, a critical issue requiring a collective system-wide approach. With only four months left, priorities must be set to achieve a "quick, big win," as emphasized by the Prime Minister. The banking sector has received detailed policy revisions to ensure cooperation across public, private, and public sectors.
While the Thai Bankers' Association is not pressing for further government action, Mr. Payong acknowledged the comprehensive understanding of banking, finance, investment, and energy by the Prime Minister and his team. This historic meeting included a focus on industry sectors and employment. Although liquidity is not a significant issue, there is a need to determine gaps and take prompt action, pending clarity in the policy statement to Parliament. The Prime Minister is committed to prioritizing results.
The review of the SME structure revealed that 48% of entrepreneurs are outside the system, resulting in a lack of information and impacting debt quality. The Prime Minister, with his business background, understands the supply chain and the components essential for an efficient economic system.