Latest news with #PayongSrivanich
Bangkok Post
15-07-2025
- Business
- Bangkok Post
Bankers' association pushes formal economy to the fore
The use of public policy to support the economy should primarily focus on the formal economy and Thai labour, according to Payong Srivanich, chairman of the Thai Bankers' Association (TBA). Speaking at the iBusiness Forum seminar hosted on Tuesday by the Manager Group, Mr Payong said this approach would help drive economic mechanisms and boost Thai people's income over the next 5-7 years. Last week, the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) held discussions with the Bank of Thailand (BoT) on economic support through public policy, as heightened uncertainties -- particularly due to the US tariffs -- are expected to impact both business and household sectors in various ways. The private sector council proposed that the use of public policy to support the economy should primarily focus on the formal economy and Thai labour. Typically the formal economy covers both taxpayers and non-taxpayers. According to Mr Payong, the current economic situation, impacted by US tariffs, presents an opportunity for both the public and private sectors to initiate meaningful reforms in economic and business practices. During global crises in the past, many countries leveraged the situation to reform their economies and enhance their post-crisis potential. For instance, during the global financial crisis of 2008 and 2009, global GDP growth fell sharply -- dropping to 2.1% in 2008 and contracting by 1.3% in 2009 -- down from growth rates of 4.5% in 2006 and 4.4% in 2007. In the aftermath, global GDP rebounded, reaching 4.5% in 2010 and 3.3% in 2011. Similarly, during the Covid-19 pandemic in 2020, global GDP contracted by 2.9%. In response, many countries, including Southeast Asian nations, undertook significant economic reforms, leading to improved growth potential post-pandemic. "Thailand, however, has not yet capitalised on such crises as opportunities for meaningful economic reform. Now is an opportune moment to implement reforms in preparation for future recovery," Mr Payong said. He noted that reforms should focus on Thailand's export and manufacturing sectors, both of which are vulnerable to US tariffs, as well as long-standing structural issues. Technological development is another critical area, which is essential for improving national productivity and upskilling the Thai workforce. In 2024, Thailand ranked 39th globally in digital and technological skills, trailing Singapore (2nd), Indonesia (20th) and Malaysia (36th). ChatGPT adoption per internet user in Thailand stands at 6%, compared to 17% in the Philippines, 14% in Malaysia, 9% in Vietnam and 7% in Indonesia. Mr Payong also stressed the need for increased investment in research and development (R&D) to boost productivity and GDP per capita. Currently, Thailand's R&D investment is less than 20% of GDP, he noted.
Bangkok Post
02-07-2025
- Business
- Bangkok Post
Firms call for calm amid political tumult
Three major private sector groups have expressed growing concern over political instability, urging the government to ramp up efforts to rebuild trust and confidence among the public and businesses. 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.
Business Times
04-06-2025
- Business
- Business Times
Thai business group cuts 2025 GDP forecast as US tariffs threaten exports
[BANGKOK] Thailand's export engine could stall, and the economy is expected to slow sharply in the second half of the year due to the impact of US tariffs, a leading Thai business group said on Wednesday (Jun 4). The economy was likely to grow by 1.5 per cent to 2.0 per cent this year, down from an earlier forecast of 2.0 per cent to 2.2 per cent, the Joint Standing Committee on Commerce, Industry and Banking said. Committee chair Payong Srivanich said annual growth would fall below 1 per cent in the second half of the year from 3 per cent in the first half, after the group cut its forecast for exports to a range of a drop of 0.5 per cent to a rise of 0.3 per cent, from 0.3 per cent to 0.9 per cent growth previously. Businesses were concerned about the uncertain status of trade negotiations with Washington, and the prospect that other nations could strike a better deal than Thailand. 'We also have to look at our neighbours ... if Vietnam receives a lower tariff than us, the impact will be quite severe,' Federation of Thai Industries chair Kriangkrai Thianuku said. Thailand faces a 36 per cent US tariff if a reduction can't be negotiated before a moratorium expires in July, while Vietnam faces a tariff rate of 46 per cent. Hanoi has held two rounds of talks with Washington. Payong said there were also concerns amongst firms that an appreciating baht would hit their competitiveness. REUTERS
