Business warns government transition could hit economy, delay US tariff talks and chill investment

Thai business leaders have voiced concern that the dissolution of parliament and the shift to a caretaker government could disrupt key economic measures, undermine investor confidence and push back high-stakes tariff negotiations with the United States.

Prime Minister Anutin Charnvirakul announced the House dissolution on Friday, December 12, 2025, a move that business groups say could leave multiple government projects in limbo because a caretaker administration is limited in what it can approve.

Thanakorn Kasetsuwan, chairman the Thai National Shippers’ Council, said the private sector had been counting on ongoing stimulus measures to continue through January. However, he warned that policies still under consideration — or not yet clearly defined — may be paused while the Election Commission reviews whether they could influence politics.

On exports, he said there was growing anxiety about talks on a major US tariff agreement that had been expected to wrap up by year-end. With political uncertainty now in play, he said the deal could be postponed, adding pressure on exporters.

Thanakorn said the most serious impact could be on large investors weighing new projects in Thailand. Even a one-to-two-month period of uncertainty, he warned, can cause investment to be delayed or redirected elsewhere — with direct consequences for next year’s growth.

He urged the next government to prioritise continuity, saying well-prepared projects should proceed without being redesigned from scratch, which would only prolong the slowdown.

Kriangkrai Thiennukul, chairman of the Federation of Thai Industries, echoed the concerns, warning that roughly 60 days under a caretaker government could weaken the drive behind key economic measures — particularly efforts aimed at supporting GDP in the final quarter of the year.

He cited the “Quick Big Win” package promoted by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, arguing that such measures are critical after the National Economic and Social Development Council reported third-quarter GDP growth of 1.2%, below expectations.

Kriangkrai also highlighted three unresolved pressures that, in his view, require a fully empowered government: flood recovery in the South, renewed fighting along the Thailand–Cambodia border affecting trade and tourism, and Thailand’s major international negotiations — especially with the United States.

He added that, based on past experience, civil servants often slow down after a dissolution as they wait to see who forms the next government, which can reduce the effectiveness of policy implementation. He urged permanent secretaries and agencies to keep outstanding work moving.

Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said the chamber understood the political rationale for dissolution but called for elections to be held as quickly as the law allows so Thailand can return to a full-power government.

He said several major economic files are waiting for parliamentary consideration and government direction, including US tariff talks and trade negotiations such as a Thailand–EU FTA. He added that measures already approved by cabinet should continue during the caretaker period, within legal limits, to avoid an economic standstill.