Bangkok: The private sector is calling on the new government to urgently tackle pressing economic issues and improve livelihoods, emphasizing the importance of including professionals in the economic team to restore confidence.
According to Thai News Agency, the private sector has outlined immediate tasks for the government, including resolving the SME crisis, addressing household debt, and fostering investor confidence through swift formation of the government and cabinet.
Mr. Kriengkrai Thianukul, President of the Federation of Thai Industries (FTI), highlighted the formidable challenges expected in 2026 for both the Thai and global economies. He stressed the urgent need for the government to address economic problems and support the people's livelihoods, citing Thai household debt nearing 90% of GDP. When including informal debt, this figure could rise to approximately 104%, indicating a severe mismatch between income and expenses that diminishes purchasing power.
The private sector has identified several urgent issues for governmental attention:
1. The SME crisis, particularly affecting businesses with credit lines under 500 million baht, is contributing to a rise in non-performing loans (NPLs).
2. The export sector is under pressure from a strengthening baht, affecting its competitive edge.
3. SMEs are facing liquidity issues due to restricted access to funding, exacerbated by cautious lending practices from financial institutions. Targeted measures are necessary to inject funds into the economy.
4. The influx of cheap foreign products, notably from China, poses competition challenges for Thai businesses, leading to closures.
Mr. Kriengkrai noted the swift economic preparedness demonstrated by political parties like the Bhumjaithai Party, which have formed experienced economic teams in collaboration with the private sector, enhancing business and public confidence. He advocates for the appointment of professionals to economic ministries, as seen in the caretaker government, to tackle economic challenges comprehensively.
Concerns persist over government formation delays affecting budget disbursement, as witnessed in early 2026. However, if the current economic team maintains efficacy, it could propel measures forward, especially through collaboration with the Joint Committee of the Three Private Sector Institutions (JCC), which is already yielding 'Quick Big Win' results.
Furthermore, the private sector and the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) stress that combating corruption should be a top national priority, as it undermines the economic system and causes budget leaks. Suppressing corruption would enhance the effectiveness of economic measures.
The private sector believes political stability hinges on forming a coalition government with over 300 votes to ensure smooth policy implementation, reduce friction, and bolster confidence among investors and the public. Participating parties should enhance the government's credibility on both domestic and international fronts.