Private sector warns corruption may lift costs by 30% and threaten Thailand’s trade deals

Poj Aramwattananont, chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand, said on Friday that corruption had become one of the key conditions in international economic and trade negotiations, including Thailand’s bid to join the OECD and its efforts to secure free trade agreements with several countries.

If Thailand does not urgently tackle the problem, he warned, it could affect the country’s competitiveness and future development.

He cited a recent survey by the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which found that 89.1% of Thai businesses view corruption as a major obstacle.

The survey, conducted among 401 business executives and representatives nationwide between March 26 and April 10, 2026, also disclosed agency-level data for the first time, pointing to high alleged bribery risks in dealings with some state agencies.

Rattakrai Limsiritrakul, vice chairman of the Federation of Thai Industries (FTI), said corruption and bribery were an “economic cost” that directly affected business operations, investment and national competitiveness.

This cost does not affect only the private sector, he said, but is also passed on to the public through higher prices for goods and services.

Studies have found that in some countries, if corruption and bribery problems are seriously addressed, prices of goods and services could fall by as much as 20-30%. This would help strengthen business competitiveness, especially when Thai operators have to compete with countries where the cost of doing business is lower than in Thailand.

“The country’s legal and regulatory structure — including the problem of too many laws, outdated laws and laws that lack sufficient quality — creates room for broad interpretation. When laws allow too much interpretation, they open the door to discretionary power, which can easily lead to corruption,” he said.

Corruption hits investment confidence

Worrakrit Jaruwongpak, secretary-general of the Thai Bankers’ Association, said corruption directly affected Thailand’s credibility in attracting investment, especially at a time when the Thai economy is still growing at a low level.

National development therefore depends on driving key projects across various industries to create new economic engines, he said.

JSCCIB said the push for target industries under the Reinvent Thailand project, as well as the creation of new S-Curve industries, requires confidence from both Thai and foreign investors.

One of the major obstacles affecting that confidence is corruption. For this reason, JSCCIB said the Zero Corruption approach is a fundamental factor in upgrading Thailand’s competitiveness and leading the country towards sustainable economic development.

Corruption seen as worse than three years ago

JSCCIB said 30.8% of survey respondents described corruption as a major obstacle, while 28.0% said it was a very major obstacle, making a combined 58.8%. A further 30.3% viewed it as a moderate obstacle.

Meanwhile, 51.2% of respondents said the corruption situation had worsened compared with three years earlier, while 51% said dealing with government agencies had become more complicated.

On direct business experience, 60.9% of those who had applied for permits from state agencies said they had encountered implied requests or direct requests for benefits in return.

Another 45.9% admitted they had paid money, given gifts or provided benefits to state officials.

In addition, 37.3% said that in their industry, extra payments were made to secure government contracts, averaging 11-15% of the contract value.

The most common form of bribe reported was cash, at 46.6%, followed by gifts or entertainment, at 23.1%, and donations or sponsorships, at 18.7%.

For government procurement, 27.3% said someone had claimed they could help them win a bid, while another 27.3% said they had been advised to use certain intermediaries or consultants.

Highway and traffic police top alleged bribery-risk list

The agencies identified as having the highest risk of bribery demands were highway police and traffic police, with businesses reporting an average of 1.69 contacts per year, and offers of benefits allegedly occurring every time, or 100% of contacts.

The justice process, excluding courts, recorded alleged offers of benefits in 94.4% of all contacts.

Other agencies and bodies included:

• Subdistrict Administrative Organisations: 91.7%
• Marine Department: 90%
• Department of Highways: 82%
• Department of Public Works and Town & Country Planning: 78.9%

Pollution Control Department records highest average payment per case

The five agencies with the highest average alleged bribe value per case were led by the Pollution Control Department, with an average amount of 102,160 baht per case.

It was followed by:

• Marine Department: 100,000 baht per case
• Excise Department: 94,667 baht per case
• Revenue Department: 89,498 baht per case
• Justice process, excluding courts: 88,750 baht per case
• Food and Drug Administration/public health services: 74,643 baht per case
• Department of Highways: 70,167 baht per case
• Department of Public Works and Town & Country Planning: 70,000 baht per case
• Department of National Parks, Wildlife and Plant Conservation: 68,000 baht per case
• Royal Forest Department: 67,500 baht per case