Bangkok: The Thai Bankers Association believes that the 36% US tax will have an impact on the Thai economy, indicating that Thailand has run out of good karma, and recommends accelerating economic structural reforms: ‘stimulation-sustainment-reform’.

According to Thai News Agency, Mr. Payon Srivanich, Chairman of the Thai Bankers Association and President of Krungthai Bank, stated that the potential of Thailand is about to be challenged by retaliatory tariffs. These tariffs, regardless of their rate, present uncertainty and create significant ripples in the Thai economy. He emphasized the need for Thailand to seize this moment as an opportunity to reform its economic structure, overcoming the challenges posed by what he terms the “Disruption of the century.” The proposed reform strategy involves three key measures: stimulating the economy, especially small and medium enterprises (SMEs); supporting groups that are self-sufficient but adversely affected by tariffs; and enacting specific reforms that are clearly defined.

Mr. Srivanich noted past economic traps that have hindered Thai economic growth, compounded by the COVID-19 pandemic, and now exacerbated by the US tax. He warned that continuous suppression leads to a significant loss of public resources, which must be used effectively to avoid wastage. Commercial banks, along with the Bank of Thailand, are actively working to encourage debtors to take advantage of current stimulus measures aimed at debt reduction and elimination.

He further highlighted the need for substantial investment in Thailand. The current public debt ceiling ratio stands at 65% against a 70% ceiling, suggesting that an increase may be necessary. However, the utilization of such resources requires careful deliberation. The ongoing crisis presents an opportunity to rapidly build confidence in Thailand’s economic system.

To enhance income and foster economic growth, Mr. Srivanich proposed accelerating skill development, integrating individuals into education systems that lead to employment, and improving the quality of life. Policies should be devised to protect domestic entrepreneurs, ensuring fair competition, and accelerating support for them to utilize domestic resources and employ local talent. Additionally, he advocated for public and private sector collaboration in establishing funds to develop innovations, leveraging necessary technology and data.