Thai Business Lobby Warns of Economic Challenges, Calls for Swift Policy Action
Thailand's leading business lobby, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), has issued warnings about the Thai economy's challenges and proposed solutions. It has called for collaboration to clarify off-system transactions' impact and urged swift policy implementation.
The JSCCIB has expressed concern about the lack of granular data to assess the impact of off-system transactions like the rising gold trade and cryptocurrency dealings on the real economy. It has called for relevant government agencies to collaborate on data linkage to clarify and analyze these transactions' true effects.
The lobby has projected global GDP growth of 3.3% for 2025 and a further slowdown to 2.9% in 2026, largely due to tariff increases impacting spending and employment. Despite this, it has maintained its 2024 export growth projection at 2%-3% and reaffirmed its 2025 economic growth forecast for Thailand at 1.8%-2.2%, with the potential to reach 2.5% if certain 'Quick Big Win' targets are achieved.
The JSCCIB has proposed a 'Reinvent Thailand' blueprint to revive the economy, which includes key structural reforms. It has suggested establishing a Sovereign Wealth Fund to manage currency volatility and increasing the Regional Value Content (RVC) in manufacturing. The Ministry of Finance has already prepared for the establishment of a sovereign wealth fund.
The JSCCIB has warned that Thailand's exports to the U.S. market are projected to contract by 12.7% due to global economic fragility and a strong baht. It has formed a dedicated 'Zero Corruption: JSCCIB Will Not Tolerate' working committee to propose governance reforms across eight key areas to combat corruption. The lobby has urged the government to implement its economic policies quickly and effectively to build market confidence.
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