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

 

 

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Same old Same talk but nothing will be done about it lets see what the old New government does about it but i wouldn't hold my breath

first item on the agenda will be to legalise weed, wonder how long it will take

Nice words but is the industry willing to raise wages??? Or invest instead of only enrich themselves? Easy to put the problems on some elses plate instead of doing something, that probably cost a bit less wealth

29 minutes ago, ikke1959 said:

Nice words but is the industry willing to raise wages??? Or invest instead of only enrich themselves? Easy to put the problems on some elses plate instead of doing something, that probably cost a bit less wealth

It's not for nothing that Thailand's middle classes - ie BKK & CM - voted solidly for PP ie for change.

11 hours ago, Georgealbert said:

Exporters, a key engine of the Thai economy, are also under pressure from a strong baht, undermining competitiveness.

And what happened after the election? The baht got stronger. Business as usual assured. The spice must flow.

Never forget. Anutin was the co-author of the Prayuth Decimation, which reduced Thailand from a giant lion to a tiny, anemic, sickly little alley cat, in just a decade. He would use covid as an excuse, but that's just an excuse, so many other nations recovered just fine, Thailand didn't.

Frankly I'm shocked that the people gave him another chance to wreak his brand of destruction. He is an absolute bottom of the barrel pick. Substandard on every level possible.

On 2/10/2026 at 4:33 AM, Georgealbert said:

an influx of cheap imports now pose a critical threat to growth and public welfare.

Cheap imports ?

Maybe make something useful at a good price like the Chinese.

More tax on lazada/shopee imports ? 😠

39 minutes ago, FlorC said:

Cheap imports ?

Maybe make something useful at a good price like the Chinese.

More tax on lazada/shopee imports ? 😠

He says he wants to address cost-of-living problems, but one of his solutions is to raise all the prices of these Chinese goods.

23 hours ago, spidermike007 said:

Never forget. Anutin was the co-author of the Prayuth Decimation, which reduced Thailand from a giant lion to a tiny, anemic, sickly little alley cat, in just a decade. He would use covid as an excuse, but that's just an excuse, so many other nations recovered just fine, Thailand didn't.

Frankly I'm shocked that the people gave him another chance to wreak his brand of destruction. He is an absolute bottom of the barrel pick. Substandard on every level possible.

You are not wrong to grade him as such. I will give him a pass if he can and I think he will have a full term which is abnormal. Hopefully by the end of his 4 years, the voters will be much educated on politics and see the benefit of 4 peaceful years and the political transition henceforth will be also peaceful. That is the only wish I have for Thailand is to have political stability. Thailand has tremendous opportunity to be a tiger economy if it has political stability.