Economy Buy Now Pay Later Trend Alarms Thai Economic Planners

[webfact]

File photo courtesy of Wikipedia

 

The Thai government's planning unit raises the alarm as the 'buy now, pay later' (BNPL) trend, initially popular in online shopping, spirals into daily essentials like food and fuel, pushing household debt to worrying levels.

 

Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), highlighted the expanded reach of BNPL schemes into restaurant meals and fuel purchases, flagging this as a potential crisis point. He stressed that such essentials should be paid upfront and warned that failure to curb this trend could further burden household finances.

 

He identified four key issues with online lending that fuel household debt: indiscriminate loan approvals without assessing existing debt, vague conditions lacking strict requirements, excessively high credit limits, and loans used beyond intended platforms, such as funding meals, travel, and entertainment.

 

In early 2025, Thailand's household debt was 16.3 trillion baht, with a slight dip in the debt-to-GDP ratio, now at 87.4%. While non-performing loans (NPLs) decreased to 1.19 trillion baht, marking an 8.78% share of total loans, auto loans and credit card debts saw a rise. Special mention loans (SMs)—short-term overdue debts — slightly increased, indicating ongoing financial stress despite reduced new lending.

 

Employment conditions are also shifting. A private sector survey revealed that 25% of Thai firms plan to downsize or restructure their workforce, moving towards flexible employment models. Permanent part-time roles have surged from 6% to 42%, and contractual positions from 4% to 28% between 2022 and 2024, as companies grapple with 2025's economic uncertainties.

 

The second quarter of 2025 saw a minor rise in employment, with a workforce of 39.5 million, and the unemployment rate marginally improving to 0.91%. However, the NESDC's report on Thai entrepreneurs highlights concerns about foreign competition, especially in hospitality, alleging aggressive tactics by foreign investors and resultant business vulnerabilities, reported the Bangkok Post.

 

The growing BNPL trend and evolving employment landscape present significant economic challenges for Thailand. The NESDC's insights underline the pressing need for strategic measures to manage household debt and adapt to shifting employment dynamics.

 

  Adapted by ASEAN Now from Bangkok Post 2025-08-26

 

[watchcat]

22 minutes ago, webfact said:

The Thai government's planning unit raises the alarm as the 'buy now, pay later' (BNPL)

 

And at the same time they are dreaming on a cashless society, idiots.

[Celsius]

I buy now pay never