Thailand's Leading Think Tank Unveils Six Urgent Policy Priorities for Next Government

 

 

TDRI calls for action on corruption, competitiveness and fiscal sustainability as country faces mounting economic and social challenges.

 

Thailand's premier economic research institute has outlined six critical policy areas requiring immediate attention from the country's next government, warning that failure to act will see the nation's problems become increasingly difficult to resolve.

 

The Thailand Development Research Institute (TDRI) presented its policy recommendations at a seminar on Wednesday, positioning the upcoming 2026 election as a pivotal moment for Thailand's economic, political and social future.

 

Dr Somkiat Tangkitvanich, TDRI president, emphasised that Thailand faces numerous pressing challenges including widespread corruption and online fraud, deteriorating living standards, increasingly severe natural disasters, loss of global competitiveness, and the transition to a fully aged society – all whilst the government faces tightening fiscal constraints with public debt at approximately 65% of GDP.

 

"Political parties should recognise these problems and limitations, and present policies that address them responsibly," Dr Somkiat stated, cautioning against populist "give-away" policies lacking fiscal responsibility.

 

 

 

1. Combating Corruption and Online Fraud

The institute highlighted the escalating severity of corruption and online scams, noting reports that government procurement projects now face demands for bribes reaching 20-30% of project values.

Senior officials have been implicated in scandals involving online gambling networks, whilst online fraud cases exceeded 320,000 in 2025, causing damages of at least 25 billion baht with only 1% recovered for victims.

 

 

TDRI recommends immediate passage of anti-money laundering legislation to enable beneficial ownership checks and cryptocurrency transaction oversight.

 

The institute also calls for cooperation with international efforts, particularly the United States' Scam Center Strike Force, and implementation of the Digital Platform Economy Act to require platforms serving Thai users to monitor and block fraudulent activities.

 

For major government procurement projects, TDRI proposes mandatory participation in Integrity Pacts or the Construction Sector Transparency (CoST) initiative.

 

Over four years, the government should aim to improve Thailand's Corruption Perceptions Index score from 34 to approach the OECD average of 63, and enhance the World Justice Project Rule of Law Index from 0.5 to near 0.74.

 

 

 

 

2. Addressing Cost-of-Living Crisis

TDRI identifies two interconnected issues: insufficient income due to workers trapped in low-skilled jobs and excessive household debt at approximately 90% of GDP.

 

The institute advocates for investment promotion focused on creating "good jobs" with higher wages and reasonable security, rather than emphasising investment value alone.

 

The Board of Investment should shift incentives from basic sector-based benefits to merit-based rewards for creating quality employment and technology transfer.

TDRI calls for eliminating at least 70% of unnecessary licences within one year and implementing digital systems for essential permits.

 

The institute also recommends curriculum reform emphasising competency-based learning and establishing a skills development sub-committee within the JSCCIB to coordinate business sector workforce needs.

 

 

On household debt, TDRI urges a shift from downstream solutions like debt restructuring to addressing root causes through financial behaviour modification and literacy programmes.

 

 

 

 

3. Climate Adaptation and Low-Carbon Transition

Thailand must urgently address both climate adaptation to reduce natural disaster damage and mitigation to maintain manufacturing competitiveness, according to TDRI.

 

Immediate priorities include parliamentary consideration of the Clean Air Act and climate change legislation, developing real-time open burning detection systems, and conducting independent reviews of major flooding events like the Hat Yai disaster to establish accurate early warning systems.

 

The institute calls for accelerated completion of the long-delayed Power Development Plan to align with Thailand's 2050 net-zero targets and establishment of clear regulations for direct clean electricity trading, initially piloted in selected industrial zones.

 

Within four years, Thailand should increase clean electricity trading five-fold from 2024 levels to accommodate RE100 industries.

 

 

 

4. Enhancing Global Competitiveness

As international trade tensions intensify and Chinese overproduction floods markets with low-quality goods, TDRI stresses the need for strategic trade negotiations and quality standards enforcement.

 

The institute recommends reaching a trade agreement with the United States by the first half of 2026 to maintain the current average effective tariff rate of approximately 16.5%, while seeking new export markets by concluding FTA negotiations with the European Union within one year.

 

TDRI advocates using trade negotiations as leverage for domestic economic reforms, particularly liberalising investment in service sectors in exchange for trade benefits.

 

On product quality, the government should modernise safety standards, establish environmental standards for government procurement, enhance inspection efficiency focusing on countries with poor compliance records, and require digital platforms to screen and remove substandard products.

 

 

 

5. Welfare for Ageing Society

Thailand has become a complete aged society, creating pressures on healthcare systems and workforce availability as more working-age people must care for elderly relatives.

 

TDRI warns that without proper action, the Social Security Office will lack sufficient pension funds for current 40-year-olds when they retire.

 

The institute recommends establishing quality home-based long-term care, including converting small schools into day care centres for the elderly.

 

It proposes raising the minimum retirement age to 60 to preserve Social Security finances and establishing a working group to study healthcare costs for inpatients across all three welfare schemes (civil servants, social security, and universal coverage).

 

Within four years, Thailand should separate the pension fund from the Social Security Fund with transparent and efficient management.

 

 

 

6. Maintaining Fiscal Sustainability

TDRI identifies fiscal discipline as critical, noting that successive governments have run fiscal deficits averaging over 3% of GDP for decades, including irresponsible policies like the digital wallet scheme and wasteful year-end budget spending.

 

The institute warns that Thailand faces increasing fiscal burdens from elderly welfare, healthcare, and disaster response, with public debt steadily rising and debt servicing consuming more of the budget.

 

"If Thailand continues lacking fiscal discipline, the country will face rapidly escalating fiscal risks that become difficult to resolve," TDRI cautioned, noting credit rating agencies' growing concerns.

 

The institute calls for strict adherence to the Medium-Term Fiscal Framework, transparent disclosure of fiscal data including contingent liabilities and tax expenditures, and value-based budget allocation rather than automatic spending.

 

Over four years, Thailand should increase tax revenue through base expansion and rate adjustments, including property-based taxes like capital gains tax, gradual VAT rate increases with rebates for low-income earners, and enhanced progressivity in personal income tax.

 

TDRI also recommends elevating the Parliamentary Budget Office to true independence with adequate resources and revising the Budget Act to require pre-budget statements and permanent budget committees.

 

 

 

Path Forward

Dr Somkiat acknowledged that whilst some policies may be politically challenging, inaction will only compound problems.

 

He noted that many recommendations could serve as election platforms as they directly benefit various segments of society.

 

TDRI plans to analyse and comment on the financial costs and funding sources of election policies once submitted to the Election Commission, as it did during the 2023 election.