The Employers’ Confederation of Thai Trade and Industry (EconThai) has urged the Paetongtarn Shinawatra government not to dissolve the House of Representatives, warning that such a move could worsen Thailand’s already fragile political and economic climate.
The caution follows a leaked phone conversation between the Thai prime minister and former Cambodian leader Hun Sen, which has stirred public debate and increased pressure on the administration.
“We are worried about a political vacuum if the prime minister decides to dissolve the House,” said Tanit Sorat, vice-chairman of EconThai.
“Thailand needs to organise a new election and form a new government, which may take up to 5–6 months.”
The country is already grappling with a sluggish domestic economy, a border dispute with Cambodia, and trade negotiations with the United States to reduce steep tariffs on Thai exports, he added.
Mr. Tanit also warned that any move to dissolve the House could stall deliberations on the government’s 3.78-trillion-baht budget for the 2026 fiscal year.
He suggested that Prime Minister Paetongtarn’s resignation would better serve the country, allowing a focus on solving economic challenges without the disruption of a fresh election cycle.
“Thailand must find economic solutions rather than put the brakes on key public policies for a new election,” he said.
The prime minister issued a public apology yesterday during a press conference regarding the leaked border conflict discussion, which critics claim may have placed Thailand at a diplomatic disadvantage.
Pressure on Ms Paetongtarn to resign is mounting—from both political opponents and segments of the public. The recent departure of the Bhumjaithai Party from the ruling coalition has further weakened her administration.
According to Kasemsan Sujiwarodom, chief executive of MAI-listed Kijcharoen Engineering Electric (KJL), the growing political uncertainty could erode investor confidence, particularly among foreign businesses, who may delay or reconsider planned investments.
“This could affect investor confidence, especially among foreigners, who may postpone their new projects,” he said.
KJL, which manufactures electrical control cabinets, supplies products primarily to housing and commercial construction projects. Its clientele includes data centre developers requiring high-capacity power management systems.
Despite the unstable political climate, Mr. Kasemsan remains optimistic about continued demand, especially as businesses shift toward renewable energy solutions such as rooftop solar.
“These changes will drive demand for electrical control cabinets,” he said, noting that Thailand’s efforts to reduce carbon emissions are fueling a rise in green energy infrastructure.
