Bangkok: Thai CEOs have expressed apprehensions that wage hikes could adversely impact the economy and increase operational costs, amid concerns over high household debt posing risks to business activities.
According to Thai News Agency, a survey conducted by the research department of the Stock Exchange of Thailand and the Thai Listed Companies Association gathered insights from 249 executives of listed companies. The survey, conducted between August 1 and September 27, 2024, examined perspectives on economic trends and business operations for 2024-2025. Findings revealed that while approximately 70% of CEOs viewed global trends such as Generative AI and sustainability adaptation as beneficial, many were worried about potential negative impacts of international trade tensions and rising minimum wages. Specifically, these factors are anticipated to raise production costs and affect the Thai economy.
The survey indicated that 63% of CEOs predicted a modest economic growth rate of 2-3% for Thailand in the com
ing years. Key drivers identified for this growth include tourism recovery, economic stimulus measures, and government budget disbursements. Conversely, significant risks include household debt, domestic purchasing power, and political stability, with expectations that global political stability and labor costs might exert additional pressure by 2025.
Despite these concerns, over 70% of CEOs expect continued revenue growth for their companies in 2024, with further acceleration anticipated in 2025. High household debt emerged as the primary risk to business operations, followed by cost factors such as energy expenses. Moreover, the survey highlighted that three-quarters of CEOs are considering further investments or expansions, particularly in ASEAN (69%), China (12%), and India (10%). However, liquidity issues linked to slowing sales (64%) and trade receivables payments (55%) remain significant concerns for many executives.