Bangkok: Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, is gearing up to address the impact of rising oil prices and the ongoing issues between Thailand and Cambodia. He has indicated potential use of oil reserves to alleviate financial pressures and is closely monitoring capital movement, while introducing measures to assist with the Thai-Cambodian situation.
According to Thai News Agency, Mr. Chunhavajira chaired a meeting to prepare the private sector for potential escalations in the Thai-Cambodian conflict. The meeting aimed to devise strategies to support affected private sectors and to be ready for any situation that might develop. He noted the possibility of utilizing the remaining 40 billion baht from the economic stimulus project to provide low-interest loans to SMEs and Social Security Fund members impacted by the crisis.
The ongoing conflict in the Middle East poses a risk of rapidly increasing oil prices. Mr. Chunhavajira mentioned that the Oil Fund might be employed to mitigate this burden to an extent, while also emphasizing the careful consideration required for any excise tax adjustments. Despite the global oil production being stable, persistent issues could still elevate prices. He stressed the importance of closely observing capital movements influenced by fluctuating interest rates and confidence in the baht, although Thailand’s low inflation provides some reassurance.
In terms of the Thai-Cambodian conflict, relevant parties, including PTT, are tasked with assessing the impact of halting oil purchases from Thailand. The oil market remains open, with alternative purchases from Singapore. As Thailand is an exporter, maintaining additional oil reserves is crucial for national security, with commercial reserves potentially exceeding legal requirements.
The ongoing tariff negotiations between Thailand and the United States have yet to reach a definitive conclusion, similar to other countries. Successful negotiations are expected to restore confidence. The Stock Exchange of Thailand has been instructed to revise its regulations to set a three-day timeframe for certain processes, acknowledging that the Middle East conflict has minimal impact on the Thai stock market.