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Bangkok Post
6 days ago
- Business
- Bangkok Post
Thai consumer confidence slips further
Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday. The index compiled by the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, it said. 'The confidence index shows no signs of recovery, with consumer purchasing power still subdued,' university president Thanavath Phonvichai told a press conference. 'The economy shows signs of stagnation and needs more stimulation,' he said, adding that the economy might grow by only 1.7% this year, after 2.5% expansion last year. While the United States has reduced its tariff on imported goods from Thailand to 19% from 36%, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Mr Thanavath said. 'What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly,' he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra pending a ruling in a case seeking her dismissal for her mishandling of a phone call with former Cambodian premier Hun Sen. 'The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence,' Mr Thanavath said.
New Straits Times
6 days ago
- Business
- New Straits Times
Thai consumer confidence hits lowest level in over two years
BANGKOK: Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday. The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said. "The confidence index shows no signs of recovery, with consumer purchasing power still subdued," university president Thanavath Phonvichai told a press conference. "The economy shows signs of stagnation and needs more stimulation," he said, adding that the economy might grow by only 1.7 per cent this year, after last year's 2.5 per cent expansion. While the United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Thanavath said. "What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly," he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said. "The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence," he said.
Business Times
6 days ago
- Business
- Business Times
Thai consumer confidence hits lowest level in over two years
[BANGKOK] Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over US tariffs, a lagging economy and government instability, a survey showed on Thursday (Aug 7). The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said. 'The confidence index shows no signs of recovery, with consumer purchasing power still subdued,' university president Thanavath Phonvichai told a press conference. 'The economy shows signs of stagnation and needs more stimulation,' he said, adding that the economy might grow by only 1.7 per cent this year, after last year's 2.5 per cent expansion. While the United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, there are still uncertainties relating to US tariffs on transshipments via Thailand from third countries, Thanavath said. 'What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly,' he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said. 'The political situation remains unstable following the prime minister's suspension from duty, creating an unclear outlook and undermining confidence,' he said. REUTERS
Bangkok Post
05-08-2025
- Business
- Bangkok Post
Tariff to reduce 2026 exports by B275bn
Thai exports are projected to dip by roughly 275 billion baht in value next year, or 1.48% of GDP as a result of the US's 19% reciprocal tariff, according to the University of the Thai Chamber of Commerce (UTCC). Thanavath Phonvichai, president of the UTCC, said the US tariff policy is projected to impact Thailand's exports by 115 billion baht over the next five months, potentially leading to a GDP contraction of 0.62 percentage points. This projection includes an estimated loss of 107 billion baht from the tariff hike, with an indirect impact via global supply chains causing a loss of 27 billion baht. Meanwhile, Thailand could gain 18.9 billion baht from trade diversion, according to the UTCC. The university maintained its GDP growth projection at 1.5-2%, with a midpoint of 1.7%. For next year, export revenue losses are projected to reach 275 billion baht, accounting for 1.48% of GDP. This figure includes an estimated direct loss of 256 billion baht due to tariff increases, and a negative indirect impact via global supply chains of 64.7 billion baht. The possible gain from trade diversion is estimated at 45.3 billion baht. The UTCC's study identified sectors particularly vulnerable to the tariff as electrical and electronic equipment, machinery and parts, and rubber products, primarily due to their substantial market share in the US and their dependence on that market. However, a comparison of Thailand's top 10 exports to the US reveals it is not at a significant disadvantage to competitors, as it faces similar tariff levels to those of Malaysia, Indonesia, the Philippines and Cambodia. Regional countries enjoying lower tariffs than Thailand include Singapore at 10%, and Japan and South Korea at 15%. This tariff difference gives them an advantage for advanced integrated circuit boards, advanced chemical products, advanced semiconductors, advanced machinery and industrial equipment. Nations facing steeper tariffs than Thailand are Vietnam, Taiwan, Sri Lanka and Bangladesh at 20%, India and Brunei at 25%, Laos and Myanmar at 40% and China at 51%. This tariff gap offers an opportunity for Thailand to expand its share in the US market in sectors such as electrical equipment, electronics, machinery, computers, furniture and miscellaneous goods, according to UTCC. To address these challenges, the university proposed six policy recommendations for the government: providing support for affected industries; enhancing enforcement of rules of origin; diversifying export markets; attracting high-value foreign direct investment; stimulating domestic demand; and engaging in proactive trade diplomacy to support the country's economic growth. The UTCC also conducted a poll on Mother's Day spending, estimating 11 billion baht this year, growth of 1.9% year-on-year.
Straits Times
05-08-2025
- Business
- Straits Times
Thailand plans $737 million stimulus spending and will compensate border conflict casualties
Sign up now: Get ST's newsletters delivered to your inbox Thailand will compensate families of those who died in July's border conflict. BANGKOK – Thailand will spend 18.5 billion baht (S$737 million) on stimulus measures to support the economy as it braces for the impact of US tariffs, and will compensate families of those who died in July's border conflict, officials said on Aug 5 . The stimulus measures approved by Cabinet are aimed at enhancing economic competitiveness and supporting student loans, Deputy Finance Minister Julapun Amornvivat told reporters. The government still has about 25 billion baht of funds to use to mitigate the impact of US tariffs and for broader relief efforts, Mr Julapun said. The US last week set a 19 per cent tariff on imported goods from Thailand, lower than the 36 per cent rate announced earlier i n 2025 and more aligned with other countries in the region. Mr Julapun said Cabinet gave the government approval to prepare a joint statement on tariffs and trade with the United States, but said discussions were ongoing and there was no set signing date. On Aug 5 , the University of the Thai Chamber of Commerce said it expected the economy to grow 1.7 per cent in 2025 . That is below both the Finance Ministry's revised forecast of 2.2 per cent growth in 2025 and an actual growth of 2.5% in 2024. The Cabinet also approved a 10 million baht (S$398,000) payment to the families of government officials who died in the July conflict with Cambodia, while those injured will receive up to 1 million baht, government spokesperson Jirayu Huangsap told a briefing. Top stories Swipe. Select. Stay informed. Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim Singapore Beauty industry consumers hit by 464% rise in prepayment losses in first half of 2025 Singapore Doctor hounds ex-girlfriend, threatens to share her intimate photos, abducts her from public street Singapore 13 taken to hospital after accident involving SBS buses, car in Tampines Singapore New cargo handling centre at Changi Airport reduces processing time; test bed for future T5 ops Singapore 60 lactation pods to be set up in public spaces by Q1 2026 for breastfeeding mothers Life Urinary issues: Enlarged prostate affects half of men in their 50s and up Singapore Elderly man charged after he allegedly molested, performed sex act on 'vulnerable' man Families of Thai civilians who died during the conflict will each receive a payment of 8 million baht, he said, while the injured would receive up to 800,000 baht. REUTERS
