Political instability weighs on future investment in Thailand, business leader warns
Investors remain hesitant to invest in Thailand due to political instability, despite government initiatives aimed at attracting new investment, according to Stanley Kang, former chairman of the Joint Foreign Chambers of Commerce.
With sluggish economic growth and deep-rooted structural issues, Thailand has recently been labelled the “sick man of Asia” by the Financial Times. As high household debt and an ageing population continue to weigh on economic growth, Stanley said political stability is indispensable for implementing long-term policies aimed at economic revitalisation.
Noting that Thailand has had three prime ministers in two years, Stanley noted that investors and foreign communities in the country expect politicians to demonstrate sufficient wisdom to ensure a stable government following the general election earlier this month.
“Without a stable government, it is very difficult to implement policies to attract foreign direct investment and maintain an environment where the country can continue to attract investment and drive exports,” he said.
Stanley added that it is imperative for the Bhumjaithai Party to form a government swiftly, as economic uncertainty persists both domestically and globally. He stressed that Thailand needs to negotiate free trade agreements with a wider range of trading partners.
Amid fast-changing geopolitical developments, such as US tariffs, Stanley also urged the establishment of a stable political environment in Parliament, noting that Thailand continues to face a 15% tariff on products exported to the United States.
Against intensifying regional competition, Stanley pointed out that the Thai government must find new approaches to stimulate the economy. Referring to Vietnam’s strong GDP growth of 8% in 2025, he emphasised the need for robust policies to support the development of artificial intelligence and data centres.
According to the National Economic and Social Development Council, Thailand’s GDP growth in 2025 is among the lowest among its ASEAN peers, with Vietnam recording 8%, Malaysia 5.2%, and Thailand just 2.4%.
Despite a prolonged economic slowdown and ongoing political uncertainty, Ekniti Nitithanprapas, Thailand’s Deputy Prime Minister and Minister of Finance, underscored the importance of infrastructure and human-capital investment, alongside legal reform, to push Thailand toward becoming the “strongman of Asia”.
The government has vowed to drive the GDP growth to 3 plus per cent within four years, driven mainly by continued investment momentum and policy efforts.
