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Al Arabiya
10 hours ago
- Business
- Al Arabiya
Thailand's economy teeters as political turmoil threatens recovery efforts
Thailand's economy is already on the ropes. Consumption has remained tepid despite a government stimulus program, few of its economic engines are firing, and uncertainty wrought by US President Donald Trump's reciprocal tariffs means that the Thai economy could grow just over 1 percent this year. Now, Southeast Asia's second-largest economy faces a fresh challenge: a new round of political chaos that could bring down Prime Minister Paetongtarn Shinawatra or her ruling Pheu Thai party. 'We are currently in a period of economic downturn, with many issues affecting us,' Visit Limlurcha, vice chairman of the Thai Chamber of Commerce, told Reuters. 'This could make things even more complicated.' The most significant short-term concern is the passage of a 3.78 trillion baht ($115 billion) budget for the 2026 fiscal year, which starts on October 1, that must pass through parliament over the next few months. That process could get stalled if Paetongtarn, who is under siege for her handling of a festering border row with neighboring Cambodia, dissolves parliament and triggers fresh elections. 'If parliament is dissolved before the budget is passed, the process will be delayed significantly,' said Prakit Siriwattanaket, managing director of Merchant Partners Asset Management. Thailand's economy has lagged regional peers as it struggles under high household debt and borrowing costs, and sluggish demand from China, which is also a key tourism market. It expanded 2.5 percent last year, and growth could be further halved this year due to US tariffs, Finance Minister Pichai Chunhavajira said last month. Thailand's stock market has been the worst-performing bourse in Asia so far this year, down 23.4 percent. Industrial sentiment also hit its lowest in eight months in May, even as consumer confidence dropped to a 27-month low. There is a clear need to press ahead with government spending, which has dropped by over 38 percent annually during April–May 2025, OCBC economists Lavanya Venkateswaran and Jonathan Ng said in a report on Thursday, warning of a 'double whammy' for the economy if both government expenditure and exports weaken. Amid the ongoing tumult, Paetongtarn may be able to hang on to her premiership, and a coalition led by her Pheu Thai party could retain its majority — albeit in a weaker position compared to its previous grip on parliament. Such an arrangement will prolong political instability and raise the specter of street protests, which have been part of previous crises and could hit one of Thailand's key remaining economic engines: tourism. 'I'm worried. I don't want the situation to cause people to take to the streets,' Thienprasit Chaiyapatranun, president of the Thai Hotels Association, which represents around 1,000 hospitality establishments, told Reuters. 'If they take to the streets, it will hit tourism.' Activists — including those who have in the past agitated against Paetongtarn's father, the divisive former premier Thaksin Shinawatra — met on Friday to plan a major protest next week and demanded the prime minister's resignation. A government lacking full authority may also struggle in ongoing trade negotiations with the United States, which has threatened to impose a 36 percent tariff rate on imports from Thailand, said Natapon Khamthakrue, an analyst at Yuanta Securities. 'The United States certainly would not want to talk to a government without full power or with few votes,' he said. Some business chambers and analysts are, nonetheless, holding out hope that a political resolution can be found quickly, minimizing damage to the Thai economy, which has been rattled by multiple coups in the last eight decades — including two against governments led by the Shinawatra family. 'Although the economy is no stranger to political uncertainty,' OCBC's economists said, 'the timing could not be more inconvenient considering external headwinds.'
Reuters
10 hours ago
- Business
- Reuters
Thailand's economy teeters as political turmoil threatens recovery efforts
BANGKOK, June 20 (Reuters) - Thailand's economy is already on the ropes. Consumption has remained tepid despite a government stimulus programme, few of its economic engines are firing, and uncertainty wrought by U.S. President Donald Trump's reciprocal tariffs means that the Thai economy could grow just over 1% this year. Now, Southeast Asia's second-largest economy faces a fresh challenge: a new round of political chaos that can bring down Prime Minister Paetongtarn Shinawatra or her ruling Pheu Thai party. "We are currently in a period of economic downturn, with many issues affecting us," Visit Limlurcha, vice chairman of the Thai Chamber of Commerce, told Reuters. "This could make things even more complicated." The most significant short-term concern is the passage of a 3.78 trillion baht ($115 billion) budget for the 2026 fiscal year, which starts on October 1, that must pass through parliament over the next few months. That process could get stalled if Paetongtarn, who is under siege for her handling of a festering border row with neighbouring Cambodia, dissolves parliament and triggers fresh elections. "If parliament is dissolved before the budget is passed, the process will be delayed significantly," said Prakit Siriwattanaket, managing director of Merchant Partners Asset Management. Thailand's economy has lagged regional peers as it struggles under high household debt and borrowing costs, and sluggish demand from China, which is also a key tourism market. It expanded 2.5% last year, and growth could be further halved this year due to U.S. tariffs, Finance Minister Pichai Chunhavajira said last month. Thailand's stock market (.SETI), opens new tab has been the worst performing bourse in Asia so far this year, down 23.4%. Industrial sentiment also hit its lowest in eight months in May, even as consumer confidence dropped to a 27-month low. There is a clear need to press ahead with government spending, which has dropped by over 38% annually during April-May 2025, OCBC economists Lavanya Venkateswaran and Jonathan Ng said in a report on Thursday, warning of a "double whammy" for the economy if both government expenditure and exports weaken. Amid the ongoing tumult, Paetongtarn may be able to hang on to her premiership and a coalition led by her Pheu Thai party could retain its majority, albeit in a weaker position compared to its previous grip on the parliament. Such an arrangement will prolong political instability and raise the spectre of street protests, which have been part of previous crises and could hit one of Thailand's key remaining economic engines: tourism. "I'm worried. I don't want the situation to cause people to take to the streets," Thienprasit Chaiyapatranun, President of Thai Hotels Association, which represents around 1,000 hospitality establishments, told Reuters. "If they take to the streets, it will hit tourism." Activists - including those who have in the past agitated against Paetongtarn's father, the divisive former premier Thaksin Shinawatra - met on Friday to plan a major protest next week, and demanded the prime minister's resignation. A government lacking full authority may also struggle in ongoing trade negotiations with the United States, which has threatened to impose a 36% tariff rate on imports from Thailand, said Natapon Khamthakrue, an analyst at Yuanta Securities. "The United States certainly would not want to talk to a government without full power or with few votes," he said. Some business chambers and analysts are, nonetheless, holding out hope that a political resolution can be found quickly, minimising damage to the Thai economy, which has been rattled by multiple coups in the last eight decades, including two against governments led by the Shinawatra family. "Although the economy is no stranger to political uncertainty," OCBC's economists said, "the timing could not be more inconvenient considering external headwinds." ($1 = 32.7800 baht)
Malay Mail
11 hours ago
- Business
- Malay Mail
PM Paetongtarn's political peril deepens Thai economic fragility
BANGKOK, June 20 — Thailand's economy is already on the ropes. Consumption has remained tepid despite a government stimulus programme, few of its economic engines are firing, and uncertainty wrought by US President Donald Trump's reciprocal tariffs means that the Thai economy could grow just over 1 per cent this year. Now, South-east Asia's second-largest economy faces a fresh challenge: a new round of political chaos that can bring down Prime Minister Paetongtarn Shinawatra or her ruling Pheu Thai party. 'We are currently in a period of economic downturn, with many issues affecting us,' Visit Limlurcha, vice chairman of the Thai Chamber of Commerce, told Reuters. 'This could make things even more complicated.' The most significant short-term concern is the passage of a 3.78 trillion baht (RM490 billion) budget for the 2026 fiscal year, which starts on October 1, that must pass through parliament over the next few months. That process could get stalled if Paetongtarn, who is under siege for her handling of a festering border row with neighbouring Cambodia, dissolves parliament and triggers fresh elections. 'If parliament is dissolved before the budget is passed, the process will be delayed significantly,' said Prakit Siriwattanaket, managing director of Merchant Partners Asset Management. Thailand's economy has lagged regional peers as it struggles under high household debt and borrowing costs, and sluggish demand from China, which is also a key tourism market. It expanded 2.5 per cent last year, and growth could be further halved this year due to US tariffs, Finance Minister Pichai Chunhavajira said last month. Thailand's stock market has been the worst performing bourse in Asia so far this year, down 23.4 per cent. Industrial sentiment also hit its lowest in eight months in May, even as consumer confidence dropped to a 27-month low. There is a clear need to press ahead with government spending, which has dropped by over 38 per cent annually during April-May 2025, OCBC economists Lavanya Venkateswaran and Jonathan Ng said in a report on Thursday, warning of a 'double whammy' for the economy if both government expenditure and exports weaken. Protests and tariffs Amid the ongoing tumult, Paetongtarn may be able to hang on to her premiership and a coalition led by her Pheu Thai party could retain its majority, albeit in a weaker position compared to its previous grip on the parliament. Such an arrangement will prolong political instability and raise the spectre of street protests, which have been part of previous crises and could hit one of Thailand's key remaining economic engines: tourism. 'I'm worried. I don't want the situation to cause people to take to the streets,' Thienprasit Chaiyapatranun, President of Thai Hotels Association, which represents around 1,000 hospitality establishments, told Reuters. 'If they take to the streets, it will hit tourism.' Activists — including those who have in the past agitated against Paetongtarn's father, the divisive former premier Thaksin Shinawatra — met today to plan a major protest next week, and demanded the prime minister's resignation. A government lacking full authority may also struggle in ongoing trade negotiations with the United States, which has threatened to impose a 36 per cent tariff rate on imports from Thailand, said Natapon Khamthakrue, an analyst at Yuanta Securities. 'The United States certainly would not want to talk to a government without full power or with few votes,' he said. Some business chambers and analysts are, nonetheless, holding out hope that a political resolution can be found quickly, minimising damage to the Thai economy, which has been rattled by multiple coups in the last eight decades, including two against governments led by the Shinawatra family. 'Although the economy is no stranger to political uncertainty,' OCBC's economists said, 'the timing could not be more inconvenient considering external headwinds.' — Reuters
Malay Mail
12-06-2025
- Business
- Malay Mail
Kind + Jugend ASEAN 2025 Kicks Off: Southeast Asia's Premier Trade Show for Maternity, Baby & Kids Products Empowers Thai and ASEAN Businesses to Enter the Global Market
Stroller Park — A realistic simulation track where visitors can test and compare the functionality and performance of strollers across various terrains in real-time. — A realistic simulation track where visitors can test and compare the functionality and performance of strollers across various terrains in real-time. Gourmet Zone — A live demonstration and sampling area where nutrition experts provide insights on baby food preparation, offering visitors the chance to experience diverse products firsthand. — A live demonstration and sampling area where nutrition experts provide insights on baby food preparation, offering visitors the chance to experience diverse products firsthand. Diaper-Changing Zone — A practical, trial space where visitors can directly test and compare products such as disposable diapers, pads, and skincare items for babies. BANGKOK, THAILAND - Media OutReach Newswire - 12 June 2025 - The third edition of Kind + Jugend ASEAN 2025 officially inaugurated today at the Queen Sirikit National Convention Center, continuing its mission to launch Southeast Asia's maternity, baby, and kids industry onto the global stage. The event is organized through the collaboration of Koelnmesse and key national supporting partners including the Thai Chamber of Commerce, the Department of International Trade Promotion, the Thailand Convention and Exhibition Bureau (TCEB), the Office of Small and Medium Enterprises Promotion (OSMEP), and Thailand Textile year's show showcased more than 100 leading brands from around the world including exhibitors from Thailand, China, Taiwan, Hong Kong, Japan, South Korea, Indonesia, Spain, the Netherlands, and Austria. The event offers an extensive business matching program, knowledge-sharing trend forum and seminars led by renowned international experts, a dedicated Innovation Zone, and the prestigious Innovation Award pitching competition. With registered visitors from more than 30 counties including Australia, Cambodia, Canada, Chiana, Hong Kong, India, Indonesia, Japan, South Korea, United Arab Emirates, Vietnam, and more, Kind+Jugend ASEAN 2025 is truly a meeting place for the industry in Southeast Asia and Mathias Kuepper, Managing Director of Koelnmesse Thailand and Vice President Asia-Pacific, Koelnmesse, stated: Managing Director of Koelnmesse Thailand and Vice President Asia-Pacific, Koelnmesse, stated: "Kind + Jugend ASEAN was launched with a long-term vision: to build a professional, regionally relevant platform for this industry in Southeast Asia—supporting quality brands, fostering partnerships, and enabling sustainable growth. That vision remains firmly in place baby and maternity industry in 2025 is navigating a complex and uneven landscape, shaped by shifting demographics, evolving consumer expectations, and macroeconomic uncertainty. And yet, these very circumstances underline the importance of coming together—to share insights, build resilience, and identify new opportunities for growth across the region."Mr. Pongpol Yodmuangcharoen, Secretary to the Minister of Industry, further emphasized: "The Ministry of Industry is proud to support Kind + Jugend ASEAN 2025, which serves as a vital platform for Thai SMEs to generate economic value, particularly in the rapidly growing global market for innovative maternity and baby products. In today's competitive landscape, success is no longer determined by size alone, but by the ability to connect with emerging opportunities on the global stage. This event is more than an exhibition—it is a true 'bridge' connecting Thai entrepreneurs with international partners, perfectly aligned with the Ministry's vision of empowering SMEs to become regional exporters and innovators."Dr. Kitsana Vachekrilas, Vice Chairman of the Thai Chamber of Commerce, added: "The gathering of brands and entrepreneurs from numerous countries today highlights Thailand's role as a strategic hub within the global supply chain for maternity and baby products. We boast world-class manufacturing facilities, skilled labor, and a new generation of designers with highly competitive ideas. The Thai Chamber of Commerce is honored to contribute to this initiative, as we strongly believe the 'maternity and baby economy' holds tremendous potential and is closely tied to the quality of life for Thai and ASEAN families. We are committed to helping our entrepreneurs elevate product standards to meet the needs of modern families and compete successfully on the global stage."Dr. Duangdej Yuaikwarmdee, Director of the International Trade Show Industry Department, Thailand Convention and Exhibition Bureau (TCEB), remarked: "The MICE industry not only generates revenue from business travelers and event participants but also serves as a crucial instrument for fostering long-term international cooperation. Kind + Jugend ASEAN exemplifies how MICE can propel niche industries, such as maternity and baby products, onto the world stage. TCEB takes pride in playing a role in advancing events of this calibre and remains fully committed to supporting Thailand's position as Asia's premier destination for exhibitions and business matchmaking. We believe this event will spark new ideas, drive positive transformation, and promote sustainable growth in industries directly tied to the nation's future."This year's edition also introduces three new experiential zones designed to allow attendees to interact directly with products—providing a valuable hands-on marketing experience for participating brands:One of today's major highlights is the Kind + Jugend ASEAN Innovation Award 2025, a platform where entrepreneurs and designers present cutting-edge innovations across five categories: Travelling & Moving Kids, Furniture, Textile, Kids Care, and Nutrition. Finalists will participate in a live pitch presentation, with winners to be announced on the same just an exhibition, Kind + Jugend ASEAN 2025 offers a fertile ground for real business opportunities, ideal for businesses aiming to expand both domestically and internationally and buyers and distributors looking to expand product event runs from today through June 14, 2025, at Queen Sirikit National Convention Center, Halls 5–6. Admission is open to industry professionals, buyers, distributors, importers & exporters, and investors specializing in maternity, baby, and kids products. June 14 will serve as a public day, welcoming parents and consumers who wish to explore and purchase innovative products at special prices. The public day will also feature fashion shows by Kids' Planet and The Mall, alongside Meet & Greet sessions with George the Pig, the beloved younger brother of Peppa Pig. Free registration is available atHashtag: #Kind+Jugend The issuer is solely responsible for the content of this announcement.
Zawya
10-06-2025
- Business
- Zawya
Director-General of Department of South Asian, Middle East and African Affairs meets with Food Industry business delegation from West African countries
On 29 May 2025, Ms. Sasirit Tangulrat, Director-General of the Department of South Asian, Middle East and African Affairs, welcomed a delegation of 29 businesspersons from the food industry of Federal Republic of Nigeria, Republic of Ghana, Republic of Côte d'Ivoire, Republic of Senegal and Burkina Faso, led by the Royal Thai Embassy in Abuja, on the occasion of their participation in a business delegation programme to Thailand between 26 - 31 May 2025 to attend THAIFEX-Anuga Asia 2025. The objective of the program is to promote trade and investment cooperation between Thailand's public and private sectors and their business counterparts from West Africa, particularly to expand Thai exports, increase market share for Thai products, and build long-term business networks. Director-General Tangulrat provided an overview on the potential of the Thai economy and Thailand's policy towards the African region. The session also offered an opportunity for the business delegation to raise questions on various topics related to Thailand, and to explore opportunities for strengthening cooperation between Thailand and West Africa -particularly in the fields of agriculture, food industry technology, food ingredients, dried and frozen foods, and beverages. These areas generated significant interest among the delegates. Moreover, the delegation also met with representatives from the Thai Chamber of Commerce and participated in business matching with trade partners and foreign investors, as well as other events, aimed at expanding business opportunities. These included an international chef competition, expert discussions in the food industry, and a food innovation show. Distributed by APO Group on behalf of Ministry of Foreign Affairs of the Kingdom of Thailand.
