Three major private sector organisations have voiced growing concern over Thailand’s ongoing political instability, calling on the government to act swiftly to restore public and business confidence.
Following a meeting of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) on Wednesday, Payong Srivanich, chairman of the Thai Bankers’ Association, said reinforcing the rule of law is crucial to rebuilding trust.
“The objective of the meetings is to reprioritise in line with global transformations and the intense challenges we’re facing,” said Mr. Payong.
According to him, the JSCCIB plans to hold discussions with the Bank of Thailand, the National Economic and Social Development Council (NESDC), the Finance Ministry, and the Commerce Ministry.
These talks aim to realign economic strategies over the next 6 to 12 months, focusing on optimising the use of limited resources.
Mr. Payong warned that prolonged political uncertainty could disrupt government spending and delay the drafting of the 2026 national budget. “If budget disbursements are delayed, this will affect the national economy,” he noted.
Poj Aramwattananont, chairman of the Thai Chamber of Commerce, echoed these concerns, stating that the private sector is increasingly uneasy about the government’s stability. He urged a swift resolution of political processes to allow the country to resume normal operations.
In addition, Mr. Poj proposed establishing a special taskforce to help rebuild trust both domestically and internationally.
“We are in a vulnerable position, facing economic challenges stemming from both domestic and international issues. We urge the government to act swiftly to address these problems,” he said.
“We are not involved in politics. Whichever group forms the government is fine, but it needs to get to work on solving problems promptly and listening to the views of the private sector.”
The JSCCIB maintained its forecast for Thailand’s GDP growth at 1.5–2.0% for 2025, with exports expected to contract by 0.3–0.5% and headline inflation ranging between 0.5–1.0%.
However, Mr. Payong cautioned that if the United States imposes a reciprocal tariff of 18% on Thai exports, economic growth could slow to just 1.5% this year.
He also raised concerns over the baht’s appreciation to 32.5 against the US dollar, which he said is stronger than other regional currencies and could impact competitiveness.
To protect domestic industries, Mr. Payong called for more balanced and standardised support measures for the manufacturing and service sectors.
He highlighted the need to address the subrogation of Thai-made product import rights by third countries and recommended improvements to the Board of Investment (BoI) incentives.
He added that companies receiving BoI privileges should be required to meet minimum local content requirements, employ Thai workers, and contribute to the domestic supply chain.
The JSCCIB reported that Thai exports grew by 15% year-on-year in the first half of 2025. However, a contraction of 10% is projected for the second half, bringing full-year export growth close to zero.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, noted that while exports expanded 14.9% in the first five months of the year—including an 18% increase in May—this performance contrasted with a sluggish Manufacturing Production Index.
He suggested that the strong export figures may be attributed to transshipments, with Thailand serving as a logistical hub for goods bound for third countries, particularly the United States, which saw a 27% rise in shipments during the period.
Meanwhile, imports from China rose 29% year-on-year in the same timeframe.
Mr. Kriengkrai called for updated investment promotion policies and stronger protective measures for domestic manufacturers. He also highlighted the ongoing border trade dispute between Thailand and Cambodia, which has caused significant losses for both sides.
According to him, the total trade value between the two countries stands at 180 billion baht, with 170 billion coming from border trade.
Recent checkpoint closures have disrupted this flow, causing daily losses of around 500 million baht – 390 million from Thai exports and 100 million from Cambodian exports to Thailand.
