Anutin vows to tackle baht surge to shield exports and tourism

While preparing the formal establishment of his administration, Anutin met with the Federation of Thai Industries (FTI). He confirmed that the Cabinet line-up is now complete and will be submitted for royal endorsement within the week.

Anutin said the government’s immediate priority is to implement short-term measures to stabilise the economy while laying solid foundations for long-term growth. He stressed that his so-called “dream team” will be a “real team,” working beyond party divisions.

The government and economic leaders cannot be separated. We must bring the business sector into the country’s driving force to ensure strength and stability in every dimension, including people’s quality of life. When the economy is strong, life improves, and society is peaceful, he said.

He added that his meeting with the FTI was intended to listen to concerns and recommendations. “Even though we have not yet formally taken office, we are working behind the scenes as much as possible. Things must move quickly, as this is what people expect,” Anutin said.

Turning to Thai–Cambodian border tensions, Anutin stressed the importance of protecting sovereignty and national dignity. He acknowledged the difficulties faced by Thai and Cambodian traders along the frontier, but ruled out reopening border checkpoints in the short term.

“The border will not be reopened soon, so there is no need for concern. We must use every channel — military, diplomatic, and dialogue with the Cambodian side — to resolve the conflict as quickly as possible. But we will stand firm on our principles,” he said.

Local content investment to boost GDP

Entrepreneurs in the Thailand Plus One programme targeting CLMV markets are considering matching with local content producers to replace components previously sourced from neighbouring countries. The aim is to encourage greater domestic production and investment in Thailand.

Local content is viewed as a priority issue, particularly as it relates to US tax conditions, meaning Thailand is not at a disadvantage compared with other countries. 

Additional local content requirements may also be introduced, which could present new opportunities. If Thailand can produce and export goods to the US under these rules, the country will need to strengthen incentives for local content investment. Such efforts are expected to support GDP growth.

PM ready to tackle strong baht

Anutin said that with the baht appreciating, incoming Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas will meet FTI later for detailed discussions.

Regarding the unusually high proportion of gold exports, Anutin said he had ordered the relevant agencies to investigate. If irregularities are found, legal action will follow, he noted.

On economic stimulus measures, Anutin said they would be launched as soon as his administration formally takes office. “We are ready to act immediately. In terms of details, particularly the ‘Khon La Khrueng’ (Let’s Go Halves) scheme, Ekniti will explain to the public once we are in full control of the government,” he added.

FTI tables five proposals to promote industry

Kriengkrai Thiennukul, chairman of the FTI, said the organisation has put forward five urgent proposals to strengthen the industrial sector.

1. Coping with US tariffs and trade war

Kriengkrai stressed the need for clear guidance on US import tariffs and local content rules, as well as relief measures for industries that cannot comply. 

Currently, Thailand faces a 19% tariff on certain goods, with a 40% rate applied in cases of third-country circumvention or transshipment, subject to US Customs and Border Protection (CBP) verification.

The FTI urged the government to establish advisory bodies on regional value content (RVC) calculations, help businesses adjust supply chains, and promote “Made in Thailand” (MiT) products to reduce vulnerability.

2. Supporting SME liquidity

The second proposal calls for stronger financial support and easier access to funding for SMEs, which remain highly vulnerable. The influx of cheap imported goods is already hitting 24 SME sectors and could rise to 30 if the situation persists.

As of June 2025, SME non-performing loans stood at 243 billion baht, while total SME debt reached 3.1 trillion baht — equivalent to more than 90% of GDP in household debt. The FTI called for targeted solutions such as debt haircuts and credit expansion.

3. Cutting energy costs

High energy prices are driving up costs for both businesses and households. The FTI opposes forcing private operators to use expensive imported gas, warning that this would not solve the electricity price problem.

It urged the government to complete a new Power Development Plan (PDP) by the end of 2025 to ensure fair pricing, environmental sustainability and energy security. 

Proposals include restructuring electricity tariffs and cutting the electricity security deposit requirement to 0.5 times for users with strong payment records, easing financial burdens and improving liquidity.

4. Easing border trade disruptions

To mitigate the impact of Thai–Cambodian border tensions, the FTI recommended reducing logistics costs by expanding existing routes, increasing coastal shipping via Chanthaburi and Trat, and permitting imports and exports of raw materials and components through non-conflict checkpoints.

In the short term, it proposed soft loans to maintain liquidity for SMEs trading with or investing in Cambodia. In the long run, it called for legal, secure, and mutually beneficial economic linkages once stability returns.

5. Managing the strong baht

Finally, the FTI expressed concern over the baht’s rapid appreciation — the strongest in the region compared with competitors such as Vietnam and Indonesia. It urged the government to distinguish between factors such as gold transactions, cryptocurrency flows, and unregulated remittances by migrant workers.

The FTI also recommended promoting the use of local currencies in ASEAN+3 trade, and supporting hedging tools like FX options and forward contracts with fee-reduction measures.

Although the Bank of Thailand is already managing currency issues, the baht remains unusually strong despite interest rate cuts. Economists have suggested the appreciation may be linked to an abnormal surge in exports, prompting calls for closer scrutiny of the situation.

FTI flags unusual gold exports, urges separate forex accounts

FTI has raised concerns over a sharp surge in Thai gold exports to Cambodia. Data from the Customs Department and the Commerce Ministry showed exports worth 100.5 billion baht last year, with figures for the first seven months of 2025 already between 67–71 billion baht. In July alone, exports totalled 8 billion baht.

The FTI said such unusual growth could be a factor behind the baht’s abnormal appreciation. It suggested the government consider creating separate foreign exchange accounts for certain types of transactions to ease pressure on the currency.

Strong baht hits exports, tourism, competitiveness

The stronger baht has dealt a heavy blow to Thailand’s export and tourism sectors, as well as to overall competitiveness — key drivers of the economy. 

Compared with Vietnam, whose currency has weakened by about 3%, the Thai baht has strengthened nearly 8%, making Thai products more expensive and less competitive in global markets.

The FTI argued that an appropriate exchange rate should be in the range of 34–35 baht per US dollar, which would balance the interests of both exporters and importers.

Anutin has pledged to consider the FTI’s recommendations and work closely with industry leaders on economic recovery measures over the next four months, noting that the industrial sector remains one of the three pillars of Thailand’s GDP.