Bangkok: The Federation of Thai Industries (FTI) warns that the Thai economy faces increased risks following the Prime Minister's departure from office. The FTI highlights the potential impact on investor confidence and long-term economic policy planning, urging collaboration between the government and private sector to restore stability.
According to Thai News Agency, Mr. Kriangkrai Thienukul, President of the FTI, acknowledged the Constitutional Court's decision to remove the Prime Minister, which has affected investor confidence both domestically and internationally. This shift in political stability could disrupt the disbursement of the 2025 budget and various investment projects. However, Mr. Kriangkrai believes that collaboration between public and private sectors could aid in the economic recovery.
Mr. Kriangkrai emphasized the risks the Thai economy faces in the second half of the year, including the ongoing Thai-Cambodian border conflict affecting trade activities. In June 2025, the total trade value decreased significantly, and export tariff adjustments and negotiations with the United States are likely to impact exports of key products. International competition may also lead to lower-than-expected GDP growth during this period.
He further noted that delays in forming a new government could hinder the implementation of crucial policies, such as tariff negotiations, border resolution, and flood management. In this politically uncertain time, the government is urged to build investor and public confidence, increase infrastructure spending, develop workforce skills, and support SMEs' access to capital. Collaborating with the private sector to create medium- and long-term operational plans is also essential.
The private sector is encouraged to adapt by increasing production efficiency, developing products for global markets, investing in innovation, and building collaborative networks to enhance investment opportunities. Public-private partnerships are deemed vital for economic recovery and maintaining investor confidence despite political instability.