Thai business leaders identify corruption as biggest barrier to economic growth

Corruption has emerged as the leading obstacle to Thailand's economic development in a survey of 80 business executives and policymakers, with 65% expecting the economy to grow by no more than 2% or contract in 2027.

The Go Thailand 2027 survey, conducted by Thansettakij between October 21 and November 7, 2026, also revealed limited confidence in the government's economic targets. Respondents gave its economic performance over the previous 12 months an average score of just 4.1 out of 10.

Nearly seven in 10 participants were chief executives, business owners or senior executives.

The findings highlight concerns over Thailand's prolonged middle-income trap, with weak domestic demand, outdated regulations and labour shortages continuing to constrain growth.

Household debt dominates economic concerns

The largest group of respondents, 42.5%, expected Thailand's gross domestic product (GDP) to expand by 1.1–2.0% in 2027. Another 12.5% anticipated growth of 0–1.0%, while 10% predicted an economic contraction.

Meanwhile, 33.8% expected growth of 2.1–3.0%, and only one respondent believed the economy would expand by more than 3%.

Household debt and weak domestic purchasing power were the most frequently identified risks, selected by 83.8% of respondents.

Political uncertainty and policy continuity followed at 45%, ahead of energy and electricity costs at 38.8%, geopolitical conflicts at 33.8% and cheap imports from China at 27.5%. Respondents could select three risks.

Confidence in Thailand's economic prospects over the next three years averaged 4.6 out of 10. Some 41.3% gave scores below five, while only 20% awarded seven or higher.

Government's economic targets face scepticism

The survey also revealed doubts about the long-term economic strategy of Prime Minister Anutin Charnvirakul's government.

Its objectives include achieving high-income country status within 12 years, placing Thailand among the world's 20 most competitive economies by 2030 and sustaining annual economic growth above 3%.

However, 53.8% of respondents considered the high-income target unlikely or impossible, compared with 18.8% who believed it was achievable.

The competitiveness target attracted greater scepticism, with 61.3% doubting its feasibility and only 13.8% expressing confidence.

Meanwhile, 48.8% considered sustained growth above 3% unlikely or impossible, against 21.3% who believed it could be achieved.

Overall, 55% rated the government's economic performance below five out of 10, while 16.3% gave scores of seven or higher.

Respondents from government agencies and state enterprises recorded the lowest average assessment of government performance, at 3.9, and the weakest economic confidence, at 4.2. Business owners and entrepreneurs gave corresponding scores of 4.0 and 5.0.

The report noted that Thailand's economy has expanded by an average of only 2–3% annually, while productivity, private investment and research and development have struggled to advance sufficiently.

These domestic weaknesses come amid geopolitical tensions, shifting supply chains, artificial intelligence (AI) development and the transition towards greener economic activity.

Corruption and outdated regulations top reform priorities

Asked to identify the main barriers preventing Thailand from escaping the middle-income trap, 45% ranked corruption as the single biggest obstacle.

Corruption also received the highest overall score when respondents' top three choices were weighted. Other major barriers included education quality and workforce skills, outdated regulations and bureaucracy, and political instability.

When asked which structural reforms required the most urgent attention, 56.3% selected anti-corruption measures, the same proportion that supported eliminating unnecessary and outdated regulations through a regulatory guillotine.

Civil service reform and digital government services received 36.3% support, matching proposals to address household and small and medium-sized enterprise (SME) debt.

Upgrading SMEs and the grassroots economy followed at 32.5%, while 31.3% prioritised education reform.

Healthcare and future food favoured as growth engines

Healthcare, medical services and wellness emerged as the strongest potential growth industries for the next five years, selected by 76.3% of respondents.

Future food and agricultural technology followed at 55%, with high-value tourism at 47.5%.

AI, software and digital services received 30%, while creative industries and soft power attracted 20%.

Several industries targeted for new investment received comparatively less support. Data centres and cloud services were selected by 18.8%, clean energy and green technology by 17.5%, semiconductors and printed circuit boards by 13.8%, and electric vehicles and components by 12.5%.

The results suggest that respondents see greater opportunities to build on Thailand's established strengths in services, healthcare, food and tourism.

Investment intentions were mixed. While 45% planned to increase investment in 2027 compared with 2026, another 23.8% expected to maintain existing levels and 31.3% intended to reduce, postpone or suspend investment.

Questions remain over data centre benefits

Respondents rated Thailand's potential to become an Association of Southeast Asian Nations (ASEAN) data centre hub at an average of 6.3 out of 10.

However, 66.3% questioned the economic benefits of data centres because they employ relatively few workers while consuming substantial electricity and water.

Other concerns included data protection rules and cross-border information transfers, cited by 52.5%, shortages of technical specialists at 42.5% and insufficient renewable electricity at 35%.

The findings point to concerns about whether large-scale data centre investment would deliver sufficient benefits to the wider Thai economy.

Electricity reform attracts strong support

Energy policy emerged as another major area for reform.

Some 85% supported reviewing electricity contracts and tariff structures to reduce costs, including 51.3% who strongly supported the proposal.

Direct purchases of renewable electricity through power purchase agreements and third-party access to transmission networks received 77.5% support.

Another 72.5% backed accelerating carbon taxes and carbon trading to address trade measures such as the European Union's Carbon Border Adjustment Mechanism.

Research and development of small modular nuclear reactors received 65% support, although 12.5% opposed the proposal, making it the most divisive energy issue surveyed.

Meanwhile, 78.8% considered green electricity important but not decisive for foreign investment decisions in Thailand. Only 6.3% regarded it as a determining requirement.

Labour shortages persist as AI reshapes employment

Respondents rated the readiness of Thailand's workforce for future industries at an average of 2.7 out of five.

Some 42.5% awarded scores of one or two, while only 12.5% gave four or five.

Digital and AI skills were the most frequently identified shortages at 57.5%, followed by specialised engineering and technical expertise at 52.5%, and analytical thinking and problem-solving skills, also at 52.5%.

AI adoption is already changing business operations. Some 66.3% reported using AI in selected processes, 17.5% were conducting trials and 11.3% had integrated it extensively across their organisations.

Looking ahead three years, 47.5% expected employee numbers to remain stable but job responsibilities to change.

Another 46.3% anticipated workforce reductions, with 18.8% expecting cuts exceeding 10%. Only 5% predicted an increase in employment.

Trade risks also present new opportunities

External economic pressures generated contrasting assessments.

Cheap Chinese imports were considered harmful to Thailand's economy by 73.8% of respondents, including 23.8% who expected a strongly negative impact.

US trade policies and import tariffs were viewed negatively by 66.3%.

Conversely, 67.5% expected Thailand's new free trade agreements to benefit the economy, while 58.8% considered production relocation resulting from US-China tensions an opportunity.

Taken together, the survey findings indicate that respondents see structural reform, improved competitiveness and the development of new growth industries as essential to strengthening Thailand's economic prospects.

Source: Thansettakij