Listed companies in the Construction Services sector could see further delay in projects from the government sector as the 2024 fiscal budget could come six months after the fiscal year starts.
Danucha Pichayanan, chief of the National Economic and Social Development Council (NESDC) said in a business seminar on Wednesday that Thailand is expecting its 2024 fiscal budget to be ready by the first quarter of next year on an assumption that the government is ready by then.
The 2024 fiscal year for Thailand starts in October 2023. However, the delay in the process of forming a coalition government could push the budget even further. Currently, a new government is expected to be in place in August.
Earlier this week, Kasikorn Securities published an analysis on the Construction Services Sector in the Thai stock exchange (SET Index) downgraded its view on the sector from Positive to Neutral.
The brokerage firm had a negative outlook for SEAFCO Public Company Limited (SET: SEAFCO) and Pylon Public Company Limited (SET: PYLON), two securities listed in the Construction Service sector, mainly due to the political uncertainty that is likely to delay the private sector from aggressively expanding their projects.
The sector fell nearly 18% in the past six months, while the SET Index dropped about 4.5%.
Still, the chief of NESDC noted that Thailand’s economy continues to recover due to domestic expansion and tourism. He expected to see about 28 million tourist arrivals this year.
