FTI survey finds corruption ‘worsening’ and adding heavy hidden costs for Thai businesses
The Federation of Thai Industries’ March 2026 CEO Poll shows 85.7% of executives believe corruption is worsening, with more than half saying it adds over 20% to operating costs, and calls for tougher enforcement, digital government and stronger whistleblower protection.
Corruption remains a structural problem undermining Thailand’s economy and significantly pushing up business costs, according to a new nationwide survey of industry leaders.
ML Peekthong Thongyai, vice-chairman of the Federation of Thai Industries (FTI), released findings from the FTI CEO Poll No. 49 for March 2026, under the theme “Business won’t tolerate it: the private sector’s voice on corruption.” The poll surveyed 645 executives across 48 industry groups and 76 provincial FTI councils nationwide, and found corruption continues to be a major obstacle to business operations and wider economic development.
Corruption seen as getting worse
The survey found 85.7% of respondents believe corruption has become more severe compared with the past, while 11.8% said it is unchanged and 2.5% said it has declined. The results suggest the problem remains deeply rooted and continues to erode business confidence.
Among the leading causes cited were:
- Patronage culture and conflicts of interest: 70.9%
- Legal loopholes and weak enforcement: 57.2%
- High official discretion: 53.0%
- Political interference in the civil service system: 49.6%
FTI said these point to structural issues that require urgent and serious reform.
On the forms corruption takes, executives most frequently cited:
- Public procurement corruption (such as rigged specifications and bid collusion): 81.4%
- Bribery and solicitation of benefits: 72.6%
- Policy corruption benefiting specific groups: 69.8%
- Influence-peddling and trading positions in state agencies: 40.2%
The poll suggests corruption is occurring at both operational and policy levels.
Hidden costs: more than 20% for many firms
A major concern is the impact on business costs. The survey found 55.5% of respondents said corruption-related costs account for more than 20% of total operating costs. Another 29.9% put the cost at 11-20%, and 11.2% at 5-10%. Only 0.9% said corruption creates no cost burden—highlighting corruption not just as a governance issue, but as a significant hidden cost that directly harms competitiveness.
The survey also found 61.2% of executives said they have personally encountered demands for benefits or corruption, while 38.8% said they have not.
Executives urged action in four main areas:
- Legal reform and stronger enforcement: 64.5%
- Digital government and open data to reduce discretion and improve transparency: 60.2%
- Greater public and private participation, including whistleblower protection: 55.5%
- More transparent oversight of government policies and projects at every stage: 54.9%
FTI said tackling corruption requires a systematic and sustained approach—covering legal reform, serious enforcement, reducing discretion through technology, opening data for scrutiny, and building participation mechanisms across all sectors. The private sector, it added, stands ready to work with the government to push Thailand towards a more transparent, fair and sustainable economy.
