Bangkok: PwC Thailand released the results of a survey of CEOs revealing that revenue has fallen to its lowest level in three years. This reflects the views of Thai executives who are becoming more cautious about several factors amidst global economic uncertainty, geopolitical tensions, and the accelerating adoption of AI in organizational development.
According to Thai News Agency, the PwC 2026 Global CEO Survey, which included 59 Thai CEOs, indicates that Thai business leaders are facing pressure from economic volatility, geopolitics, costs, and cyber risks. At the same time, they are seeking new opportunities, particularly by upgrading the use of artificial intelligence (AI) at the organizational level for long-term growth. They are investing in adapting their production plans to accommodate AI. Thai CEO confidence this year has fallen to its lowest level in three years because the challenge is not just an economic slowdown, but a series of overlapping risks ranging from macroeconomic volatility and tariffs to cyber risks and geopolitical conflicts, all impacting costs.
It is acknowledged that Thailand's GDP growth has been the lowest in ASEAN, at only 1-2% for several years following the COVID-19 pandemic, while other ASEAN countries are growing at 5-7%. This has led to a lack of confidence in the Thai economy among CEOs, resulting in a decline in economic sentiment. Only 34% of Thai CEOs expect the domestic economy to improve this year, lower than the global average of 55%. The survey found that while 33% of Thai CEOs indicated their organizations increased revenue from using AI last year, only a small percentage (18%) were able to increase revenue and reduce costs simultaneously. This reflects challenges in organizational structure, data strategy, workforce skills, and AI governance frameworks.
Mr. Pisit Tangthanakul, Chairman of PwC Thailand, further stated that the conflict in the Middle East is causing problems for businesses in repaying debts and making payments, impacting cash flow and liquidity, as well as leading to a borrowing crisis. If businesses cannot borrow the money they need, it could result in a crisis, potentially necessitating delays or postponements in debt payments. Regarding the demand for corporate bond issuance, it is currently more difficult than in the past due to cash flow issues among businesses. This is a concern for investors; when liquidity is problematic, investors worry about whether they will receive repayment for loans, significantly impacting the overall bond market.
Regarding the impact of war and rising inflation, the war situation has forced all agencies to reassess inflation trends, directly affecting the Monetary Policy Committee's (MPC) interest rate decisions. When inflation increases due to rising oil prices from US$60 per barrel to US$100 per barrel, it significantly impacts the interest rate structure. Over the past 10 months, inflation has been negative. The rise in energy prices could cause inflation to rebound, so we need to wait for official clarity on the extent of inflation before making any interest rate decisions.