Thai Business Chiefs Demand ‘Immediate’ Government to Tackle 104% Debt Crisis
Industry leaders demand a ‘Professional Economic Team’ to rescue SMEs and restore confidence as national debt reaches a staggering 104% of GDP
- Thai business leaders are demanding the immediate formation of a stable government to tackle a deepening cost-of-living crisis and restore investor confidence.
- The urgency is driven by a national debt crisis, with total household debt reaching 104% of GDP, which has severely damaged domestic purchasing power.
- The Federation of Thai Industries has outlined an emergency agenda for the new government, including rescuing SMEs, protecting exporters, and stopping the influx of cheap foreign goods.
- Business chiefs are also calling for the new cabinet to have integrity, implement a "Zero Corruption" policy, and cut bureaucratic red tape.
Industry leaders demand a ‘Professional Economic Team’ to rescue SMEs and restore confidence as national debt reaches a staggering 104% of GDP.
Thailand’s leading commercial bodies have issued a joint ultimatum to the nation’s political class, demanding the swift formation of a stable government to combat a deepening cost-of-living crisis and restore investor confidence.
Dr Poj Aramwattananont, chairman of the Thai Chamber of Commerce (TCC), welcomed the orderly conduct of the 2026 General Election but warned that any delay in forming a cabinet could be disastrous.
With the country facing heightened geopolitical friction and border instability, Dr Poj argued that Thailand requires a government with a "full mandate" to unlock state investment and drive economic stimulus.
"The private sector is waiting for the official certification of results," Dr Poj stated. "We need ministers who are 'job-ready'—individuals with the expertise to hit the ground running at the Treasury, Foreign Affairs, and Commerce ministries."
The FTI: A Nation Under Debt Pressure
The Federation of Thai Industries (FTI) has highlighted the grim reality facing the Thai public.
Kriengkrai Thiennukul, chairman of the FTI, noted that 2026 is a pivotal year for survival.
He revealed that total household debt, when including the informal lending sector, has soared to approximately 104% of GDP.
This has effectively neutralised domestic purchasing power, leaving many citizens unable to meet basic daily expenses.
The FTI has set out a four-point emergency agenda for the incoming administration:
SME Rescue: Urgent intervention is needed for firms with credit lines below 500 million baht, where bad debts (NPLs) are rising at an alarming rate.
Export Viability: Measures to protect exporters from the impact of a strengthening baht.
Liquidity Access: Addressing the "credit crunch" caused by banks becoming overly cautious.
Market Protection: Implementing tougher measures against the influx of low-cost, substandard goods—primarily from China—which are decimating local manufacturers.
CEO Sentiment: Integrity and Reform
The latest FTI CEO Poll suggests that while business leaders are cautiously optimistic about election promises, their primary demand is for transparency.
ML Peekthong Thongyai, vice chairman of the FTI, reported that "integrity and a clean track record" were the most sought-after traits for the new cabinet.
Furthermore, executives are calling for a "Regulatory Guillotine"—a radical cull of obsolete red tape—and a "Zero Corruption" mandate to reduce the hidden costs of doing business in Thailand.
The Stock Exchange of Thailand (SET) has already shown signs of a "stability rally," reflecting investor hopes that the Bhumjaithai Party, as the likely leader of the new coalition, will maintain policy continuity and deliver the "Quick Big Wins" promised during the campaign.
