Firms call for calm amid political tumult
Speaking after a meeting of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) on Wednesday, Payong Srivanich, chairman of the Thai Bankers' Association, said a key element in rebuilding trust and confidence is emphasising the rule of law.
According to Mr Payong, the JSCCIB is preparing to hold discussions with the Bank of Thailand, the National Economic and Social Development Council (NESDC), the Finance Ministry and the Commerce Ministry to realign economic priorities given the limited available resources, with a focus on the next 6-12 months.
"The objective of the meetings is to reprioritise in line with global transformations and the intense challenges we're facing," he said.
Political uncertainty could impact government disbursements and the formulation of the 2026 budget, said Mr Payong.
If budget disbursements are delayed, this will affect the national economy, he said.
Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said the private sector is worried about the government's stability. Political processes must be concluded as quickly as possible so the country can function normally again, he said.
In addition, a special taskforce is needed to restore confidence both domestically and internationally, said Mr Poj.
"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 expects Thailand's economy to grow by 1.5-2.0% this year, unchanged from a previous forecast, with exports shrinking by 0.5-0.3% and headline inflation ranging between 0.5-1.0%.
However, if the US imposes a reciprocal tariff rate of 18% on Thai exports, this could lower Thai GDP growth to 1.5% this year, said Mr Payong.
The JSCCIB is also concerned about the baht's appreciation to 32.5 per US dollar, which it views as stronger than other regional currencies.
Meanwhile, he said Thailand needs more protective measures to support both the domestic manufacturing and service sectors in a balanced and standardised way, including addressing the subrogation of import rights of Thai-made products by third countries and improving the Board of Investment's (BoI) incentives.
Companies receiving BoI investment privileges should be required to use designated levels of local content, employ domestic labour, and support Thailand's supply chain, said Mr Payong.
The JSCCIB predicts Thai exports grew 15% year-on-year in the first half of 2025, though a contraction of 10% is anticipated in the second half, putting full-year export growth close to 0%.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, said in the first five months of this year, Thai exports expanded by 14.9%, with a gain of 18% in May.
However, this level of export growth contrasts with the weak performance of Thailand's Manufacturing Production Index.
He suggested the high export figures may be due to transshipments -- using Thailand as a pass-through hub for goods bound for third countries, notably to the US, which surged 27% for the period.
Imports from China in the first five months also rose 29% year-on-year.
Mr Kriengkrai recommended protective measures for domestic producers and a review of investment promotion policies.
He also addressed the Thailand-Cambodia border trade dispute, noting total trade between the two countries totals 180 billion baht, with 170 billion coming from border trade.
Border checkpoint closures have affected trade by about 500 million baht per day, with Thailand losing about 390 million baht in exports and Cambodia about 100 million baht in exports to Thailand.
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