Loan decree, when approved, will enhance all embracing economy

Kongkiat Opaswongkarn, President of the Securities Analysts Association, stated passing the loan decree, now being debated in an extraordinary session of Parliament, would bring new funds into the country’s economic system.

The infusion would instantaneously improve investment-related businesses such as construction and building materials. Once the economy expands, it would foster purchasing power and reactivate consumer-related businesses including retail and commercial banking.

However, he said, since it is a long-range investment project, the government must give priority to the transparent use of the loan. If there is any corruption in the loan-supported projects, it could weaken public confidence in the government.

“The loan decree, if approved, will bode well for the implementation of the second economic stimulus package. However, the government must be careful and transparent in spending unless it wants the public feeling to be affected,” he said.

As the global economy is on the path of recovery led by the strong Chinese economic resilience, he suggested the Thai government to hold more discussions with the Chinese counterpart.

Currently, the Chinese economy has rapidly recovered and begun to enjoy robust growth again.

“A lot of countries place strong confidence in the resiliency of Chinese economy to steer their economies.

Therefore, Thailand should neither overlook such an opportunity nor ignore it,” he said.