Business urges tougher anti-corruption push: state must act, private sector must stop paying

The private sector says corruption in Thailand is worsening, particularly through hidden costs in public procurement projects that have climbed to 30-40%, hurting investor confidence and the wider economy.

Poj Aramwattananont, chairman of the Thai Chamber of Commerce (TCC), said the private sector broadly agrees corruption has become severe. Hidden costs in government procurement, he said, have risen from around 20% to 30%, and in many cases to 40%. This reflects structural problems in the oversight of state projects—especially in construction, where repeated accidents point to gaps in standards and quality control.

He added that dumping of goods along border areas, substandard products, and scammer networks or “grey capital” are also viewed as linked to corruption, distorting the economic system and causing abnormal capital flows that affect the exchange rate and harm the public.

Foreign investors, he said, have flagged systemic obstacles in doing business in Thailand—especially demands for “under-the-table payments” to speed up permits and operations, both inside and outside the Eastern Economic Corridor (EEC). This affects long-term investment decisions.

He also noted that Chinese investors, who have invested in Thailand over the past decade, have similarly reported business obstacles—particularly being asked to pay bribes to facilitate processes.

“Last year we held activities marking 50 years of Thai-Chinese relations. During our work we continued to hear complaints from Chinese investors that corruption is the root cause of hidden costs, making business operations less smooth and undermining confidence in long-term investment in Thailand,” he said.

Poj said the private sector is preparing a broad alliance—led by industrial groups and financial institutions—and will expand to related sectors such as trade, tourism, hotel associations, and networks of operators at risk of being solicited for improper benefits. The aim is to build practical anti-corruption mechanisms, close systemic loopholes, and raise Thai business standards in line with international norms.

The private sector’s proposals include uniting businesses across sectors—from logistics, tourism and hotels to manufacturing and border-operator networks—to strengthen governance standards and create positive pressure for reforms in procurement systems, law enforcement and transparent business facilitation.

Poj said the private sector is stepping up co-operation to push a national anti-corruption agenda. If the state fails to enforce the law seriously, he warned, the problem will become further entrenched and turn into a structural risk to the economy and society. Tackling corruption must be done on “two legs”: “The state must be serious, and the private sector must stop paying—no under-the-table payments.”

He said the state must set legal frameworks, strengthen oversight and impose real penalties on agencies and officials involved in corruption. The private sector, meanwhile, must raise awareness and refuse to pay bribes in every case. If businesses continue paying to “get things moving”, the cycle will never end.

The private sector estimates direct losses from corruption at at least 500 billion baht per year, while indirect impacts are far greater—from distorted project specifications driven by kickbacks, to declining construction quality and accidents involving public infrastructure. These drain budgets repeatedly and erode public trust.

Beyond the numbers, he said the most serious damage is to investor confidence and Thailand’s global reputation. When law enforcement is weak, investment decisions slow. Trading partners question governance and transparency, undermining Thailand’s competitiveness.

Foreign investors share the same view, he added, pointing specifically to Japanese investors. He cited assessments by JETRO over the past two years that repeatedly raised corruption as a structural obstacle affecting investment decisions, expansion plans and confidence in fair competition.

Poj said nearly every political party has highlighted corruption as a key policy issue, reflecting greater political awareness of the structural problem. But the private sector wants more than policy statements—it wants clear state “action”, including effective complaint-handling mechanisms, faster investigations, and whistleblower protection.

Private-sector networks plan to meet relevant agencies, including the National Anti-Corruption Commission (NACC) and the Public Sector Anti-Corruption Commission (PACC), to seek clarity on procedures once complaints are filed—from intake and investigation to witness protection and case timelines.

They also plan to publicly highlight the country’s “10 main corruption risk points” to pinpoint systemic problems and spur reform in high-risk areas. Corruption cases, he said, are not merely ordinary criminal matters, but economic and social issues that undermine national confidence.

The private sector also urged the government to accelerate the systematic use of artificial intelligence (AI) in public administration to reduce reliance on officials’ “discretion”, a key loophole that enables solicitation of improper benefits. Designing licensing, approval and inspection processes through digital systems and AI, it said, would reduce face-to-face bargaining, increase transparency and strengthen traceability.

Poj said many forms of structural corruption are rooted in overlapping laws and regulations across ministries. The private sector has been pushing for a review of these laws since 2014-2015, but progress has remained limited.

Measures that can be implemented “immediately” and deliver quick results include urgently revising ministerial regulations and agency operating rules to eliminate duplication, cut unnecessary steps, and apply a single standard across the entire system—alongside adopting digital technology to reduce loopholes arising from discretionary decision-making.

At present, more than 36 networks are cooperating and working directly with relevant organisations, for example:

• Practical measures to reduce opportunities for soliciting improper benefits in business and government: cooperation with the Anti-Corruption Organization of Thailand (ACT) and the private-sector anti-corruption coalition, CAC.
• Policy and governance work: supported by the Thailand Institute of Justice (TIJ) as a core knowledge organisation and an institutional mechanism linking on-the-ground work to international standards.
• Academic work: coordination with the University of the Thai Chamber of Commerce and the Thailand Development Research Institute (TDRI) to compile data and develop knowledge packages to support structural policy reform, with Chulalongkorn University also helping to develop a governance database as an academic tool for monitoring corruption problems.
• Public communications: coordination with multiple associations and civil-society organisations to run anti-corruption awareness campaigns through various media formats.

The private sector warned that if the situation is allowed to continue, the country could face a “failed state” scenario in terms of confidence, because the rule of law and governance would be undermined at the same time. Feedback from foreign investors indicates the main obstacle is the solicitation of “under-the-table benefits” to facilitate business operations, which raises costs, increases regulatory risk, and reduces incentives.

The private sector also proposed a structural reform framework under the concept of “Reinvent Thailand”, beginning with six target industry groups—such as agriculture and food, tourism and services, the digital economy, and other key service industries—reviewing each industry one by one to identify which laws are “bottlenecks” before urging the government to accelerate amendments.