FTI Urges New Government to Tackle Four Economic Crises First

The Federation of Thai Industries (FTI) has urged the incoming government to prioritise urgent economic and cost-of-living problems as its first agenda, warning that household debt, SME distress, export pressures and an influx of cheap imports now pose a critical threat to growth and public welfare. The call comes as Thailand awaits the formation of a new government following the general election, with business confidence closely tied to political stability and policy continuity.

On 9 February 2026 in Bangkok, FTI chairman Kriengkrai Thiennukul said the private sector hopes Thailand will soon have a capable and ethical government, noting that the composition of the cabinet directly affects public and investor confidence. He stressed the need for a swift government formation to ensure uninterrupted economic management and policy implementation.

Mr Kriengkrai said 2026 would be an exceptionally challenging year for both the Thai and global economies. He identified the most pressing crisis as the economic hardship facing households, with Thailand’s household debt nearing 90% of GDP and potentially rising to about 104% when informal debt is included, reflecting a serious imbalance between income and expenditure that has sharply reduced purchasing power.

The FTI highlighted at least the urgent issues requiring immediate action. These include a deepening SME crisis, particularly among businesses with credit lines below 500 million baht, where non-performing loans have risen to worrying levels. Exporters, a key engine of the Thai economy, are also under pressure from a strong baht, undermining competitiveness.

Another major concern is the severe liquidity shortage among SMEs, as bank lending continues to contract due to heightened caution over NPL risks. Mr Kriengkrai said the government would need to introduce targeted and precise stimulus measures to inject liquidity where it is most needed. He also warned of cheap imported goods, especially from China, flooding the Thai market both legally and illegally, forcing many local businesses to close.

From the business sector’s perspective, Mr Kriengkrai noted that parties currently enjoying strong public support, particularly the Bhumjaithai Party, have demonstrated economic preparedness by rapidly assembling experienced economic teams that work closely with the private sector. He said this had helped build confidence among businesses and the public, while continuity in economic policymaking remains a long-standing concern.

ThaiRath reported that the FTI said a fully formed cabinet should strengthen key economic ministries with professional expertise and elevate anti-corruption efforts to a national priority, describing corruption as a “cancer” draining public resources. The private sector also stressed the importance of forming a government with more than 300 parliamentary seats to ensure stability, reduce political friction and support sustained economic reform.

Picture courtesy of ThaiRath

Key Takeaways

• The FTI is urging the new government to make economic and cost-of-living issues its top priority amid rising debt and weak demand.

• SMEs, exports, liquidity constraints and cheap imports have been identified as the most urgent structural challenges.

• Business leaders say policy continuity, anti-corruption efforts and a strong parliamentary majority are vital for stability.

Adapted by ASEAN Now from Thairath 2026-02-10