Category: The Bangkok Post

Former deputy finance minister Paopoom Rojanasakul expressed hope that the new government led by Prime Minister Anutin Charnvirakul will continue the debt relief programmes for Thais that have benefited nearly 6 million people.

According to Mr Paopoom, who was also deputy leader of the Pheu Thai Party during the administrations of Paetongtarn Shinawatra and Srettha Thavisin, within two years the government launched 15 measures addressing debt relief, debt suspensions, and additional lending through Finance Ministry mechanisms, helping close to 6 million people, in addition to the regular lending carried out by financial institutions.

“I strongly hope these programmes will be carried on by the Anutin administration and not be abandoned halfway. Specifically, debt relief programmes that have provided assistance to more than 5.61 million people,” he said.

The “Khun Su, Rao Chuay” (You Fight, We Help) programme, which was designed to help those struggling with mortgage, car and small business loan repayments, included 1.7 million debtors. This programme was a collaboration between the Bank of Thailand and several agencies to support retail borrowers and small businesses struggling with debt, enabling them to restructure loans, ease their financial burdens, and regain financial stability more quickly.

The agricultural debt-relief (farmer debt suspension) measure assisted 1.43 million farmers in Phase 1 and 1.34 million farmers in Phase 2, with a total debt amount of 202 billion baht.

The debt relief measure for Code 21 debtors covered 1.09 million people, with a total debt amount of 7.62 billion baht. “Code 21” refers to debtors affected by the pandemic and the economic slowdown.

The cooperative credit programme to address debts of government personnel supported 10,319 accounts, with total debts amounting to 4.12 billion baht.

In addition, the “People’s Bank” loan programme to address informal debt approved loans for 39,716 people, with total debts of 1.42 billion baht.

Rising household debt over recent years has raised government concerns that this burden would weigh on Thailand’s economic growth, prompting an urgent search for solutions.

According to the latest report from the National Economic and Social Development Council (NESDC), household debt in the second quarter of this year tallied 87.4% of GDP, marking the first contraction.

However, the NESDC warned that credit quality remains a serious concern. The contraction was largely due to tighter lending standards adopted by financial institutions, rather than a genuine improvement in households’ financial conditions.

Thai consumers present a paradox: low confidence in the economy yet resilient discretionary spending. This paradox mirrors dynamics seen in developed countries and regional peers like Indonesia, Malaysia and the Philippines, and it presents a complex consumer behaviour landscape that modern businesses must navigate.

Despite a tight wallet, consumers across the financial spectrum are making adjustments and compromises to satisfy their wants. A young professional worker in Bangkok buys the latest smartphone through staggered instalments, while a construction worker takes his family out for dinner but waits for the month-end sale to restock the monthly groceries. Some groups borrow to maintain their lifestyles – a troubling cycle of debt and spending that warrants attention from both consumers and businesses

The inherently similar yet contrasting behaviours across different financial strata reflect the changes in how consumers across Thailand are managing their finances and making trade-offs based on personal circumstances.

Boston Consulting Group’s (BCG) latest consumer research surveyed 3,000 respondents across Thailand to assess the complex and dynamic consumer landscape. The study explored household finances, attitudes toward income, debt, spending and saving, and the decision-making drivers behind consumption.

Overall sentiment and impact on spending

Overall confidence in the economy is low, with more than 60% of Thai consumers rating the current economic situation as ‘poor’ or ‘very poor’. The mass affluent consumer (MAC) – spanning households with monthly income of 15,000 baht or more – remains the most optimistic (feeling ‘good’ or ‘very good’ about the economy), but sentiment in lower income groups is deeply subdued both nationally and compared to regional peers. For reference, optimism around personal financial stability among Thais (39%) is comparable to the Philippines (35%) or Indonesia (47%), but significantly lower than the bigger economies of the region, namely China (59%) and India (61%).

This subdued sentiment mirrors broader national conditions. Political and economic uncertainty, a weak job market, limited income mobility among lower-income households, and some of the highest consumer debt levels in emerging markets have all dampened confidence and constrained spending.

When it comes to spending, necessities continue to take the most substantial bite out of already stretched wallets. The contrast between MAC and lower-income consumers is stark. MAC households still manage to funnel surplus funds into lifestyle upgrades and investments, while lower-income families remain anchored to basic necessities and small-ticket wants, often by drawing down on their savings. This disparity highlights the widening divide between the ‘haves’ and the ‘have-nots’.

Navigating the balance of want and need

Despite the backdrop of pessimistic consumer sentiment, Thai consumers stand out for how they juggle wants and needs in their spending decisions.

Contrary to conventional wisdom – and indeed their own claims – Thai consumers’ share of spending on discretionary categories continues to hold steady or grow. As cited in BCG’s Global Consumer Radar surveys, consumers typically don’t predict broad economic trends realistically; consequently, their predicted responses to those trends are not realistic. Similarly, for Thai consumers, broader economic outlook doesn’t impact their discretionary spending commitment. Even in a scenario where there is an income dip, discretionary spending takes around a quarter (22% to 25%) of total consumer spend.

This provides a glimpse into a consumer’s underlying desire for affluence and aspirational lifestyle goals – Instagram-worthy vacations, expensive goods, dining out, and similar hallmarks of status.

These aspirations show up in everyday choices, as consumers trim routine expenses to make room for the experiences and products they value most. Everyday staples are the first items of ‘need’ that we see pruned. This adjustment doesn’t manifest only as buying less volume, but in a variety of other different ways – buying items with discounts or buying more affordable brands.

This sacrifice of everyday needs to fulfil aspirations provides two clear takeaways for marketers seeking to appeal to the modern consumer.

The first opportunity lies in capturing a greater share of discretionary spending – not always on luxury products, but on items that give consumers the sense of a lifestyle upgrade. Sephora shows how this can work in practice – offering its own private-label products as affordable luxuries, while stocking prestige brands alongside them in the same stores. This offers consumers a unique mix of experiencing luxury while keeping spends on ‘wants’ in check.

The second opportunity is in value-tier offerings for essential goods such as groceries and household products, which many consumers view as a practical way to save costs. Muji exemplifies this approach by spanning the spectrum – from affordable essentials like cotton fabrics and basic storage solutions at the entry level, and scaling upward through premium offerings such as specialty textiles, compact modular furniture and other curated lifestyle products – thus enabling consumers to exercise choice and control over how much they spend, even on essential items.

Understanding the credit landscape

Spending and credit go hand-in-hand, meaning a full picture of Thai consumers must also take into account the current debt environment. Roughly one-third of Thai households carry 80% of personal debt, excluding mortgage and educational loans. This underscores a heavy debt mountain for a significant minority of the population.

Interestingly, these ‘top-debtors’ are notably skewed towards specific income segments. Almost 2 in 3 of these top-debtors are from the middle-class segment with a monthly household income of between 15,000 and 49,000 baht and hold about 3 times more debt than an average Thai consumer.

Understanding the complexities of this top-debtor landscape has important implications for consumers and businesses.

Top debtor danger zone

The delicate balance of ambition and means is creating pitfalls for top-debtors in Thailand. The spiral to borrow more to spend more begins by embracing a borrowing lifestyle, giving in to aspirations beyond the realities of household finances.

This borrow-to-spend mindset is pushing top debtors deeper into an expanding debt hole with loan values for this group rising six times faster than the average consumer’s over the past year. They also have a debt-to-service ratio that’s double the average. Compounding the problem, three out of four top debtors have not increased their repayments in the past year. Together, these dynamics signal growing momentum toward a debt spiral for this segment.

These debt dynamics tell an important story for Thailand’s economy. On one hand, they signal a growing willingness to borrow – especially among middle-class households, who are now the top borrowers. On the other, they expose the vulnerability of lower-income families, many of whom carry non-productive debt.

A sharper focus on risk assessment in debt financing is critical to curbing defaults. The Bank of Thailand introduced updated ‘Responsible Lending’ regulations effective January 31, 2025, to strengthen fair treatment and management across the entire loan lifecycle – from product design to debt transfers – aimed at more effectively resolving household debt issues.

Ultimately, Thailand’s paradox of subdued confidence and resilient spending underscores both risk and opportunity. Consumers continue to reach for lifestyle upgrades even as debt mounts, creating growth potential for businesses and responsibilities for lenders. Broadly speaking, while long-term structural growth in MAC is still robust for a middle-income market like Thailand (MAC population is expected to grow by 14% over the next 10 years), there is a need to navigate the short-to-mid-term effectively. The path forward lies in reconciling ambition with financial discipline – fostering sustainable consumption without fuelling unsustainable debt.

Special thanks:

The authors would like to thank Aditi Bathia (Expert Project Lead, Center for Customer Insight [CCI], Boston Consulting Group) for contributing her insights to this article.

China’s new visa programme aimed at attracting foreign tech talent kicks off this week, a move seen boosting Beijing’s fortunes in its geopolitical rivalry with Washington as a new US visa policy prompts would-be applicants to scramble for alternatives.

While China has no shortage of skilled local engineers, the programme is part of an effort by Beijing to portray itself as a country welcoming foreign investment and talent, as rising trade tensions due to US tariffs cloud the country’s economic outlook.

China has taken a series of measures to boost foreign investment and travel, opening more sectors to overseas investors and offering visa waivers for citizens from most European countries, Japan and South Korea among others.

“The symbolism is powerful: while the US raises barriers, China is lowering them,” said Iowa-based immigration attorney Matt Mauntel-Medici, referring to China’s new visa category, called the K visa, which launches tomorrow, Oct 1.

‘Exquisite’ timing

The K visa, announced in August, targets young foreign science, technology, engineering and mathematics (Stem) graduates and promises to allow entry, residence and employment without a job offer, which could appeal to foreign workers looking for alternatives to US job opportunities.

Earlier this month, the Trump administration said it would ask companies to pay $100,000 (3.22 million baht) per year for H-1B worker visas, widely used by tech companies to hire skilled foreign workers.

“The US has definitely shot itself in the foot on H-1Bs, and the timing is exquisite for China’s K visa,” said Michael Feller, chief strategist at Geopolitical Strategy.

Other countries, including South Korea, Germany and New Zealand, are also loosening visa rules to attract skilled migrants.

Immigration experts say the main attraction of the K visa is no requirement of a sponsoring employer, which has been regarded as one of the biggest hurdles for those seeking H-1B visas.

The H-1B visa requires employer sponsorship and is subject to a lottery system, with only 85,000 slots available annually. The new $100,000 fee could further deter first-time applicants.

“It’s an appealing alternative for Indian Stem professionals seeking flexible, streamlined visa options,” said Bikash Kali Das, an Indian student at Sichuan University.

India was by far the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries.

Unanswered questions

Despite its promise, the K visa faces hurdles. Chinese government guidelines mention vague “age, educational background and work experience” requirements.

There are also no details on financial incentives, employment facilitation, permanent residency, or family sponsorship. Unlike the US, China does not offer citizenship to foreigners except in rare cases.

China’s State Council did not respond to a request for comment asking for more details on the logistics and underlying strategy of the K visa.

Language is another barrier: most Chinese tech firms operate in Mandarin, limiting opportunities for non-Chinese speakers.

Political tensions between Delhi and Beijing could also become a factor that could limit the number of Indian K visa applicants China is willing to accept, experts said.

“China will need to ensure Indian citizens feel welcome and can do meaningful work without Mandarin,” said Mr Feller.

Alternative for whom?

China’s talent recruitment has traditionally focused on China-born scientists abroad and overseas Chinese.

Recent efforts include home-purchase subsidies and signing bonuses of up to 5 million yuan ($702,200). These have drawn back US-based Chinese Stem talent, especially amid Washington’s growing scrutiny on ties to China.

“The recruitment effort targeting Indian tech talent in China is growing but remains moderate compared to the more intensive, well-established, and well-funded initiatives aimed at repatriating Chinese Stem talent,” said Sichuan University’s Das.

A Chinese Stem graduate who recently got a job offer from a Silicon Valley-based tech company was also sceptical about the K visa’s prospects.

“Asian countries like China don’t rely on immigration and local Chinese governments have many ways to attract domestic talent,” he said, declining to be named for privacy reasons.

The US has over 51 million immigrants — 15% of its population — compared to just 1 million foreigners in China, less than 1% of its population.

While China is unlikely to significantly alter its immigration policy to allow in millions of foreign workers, analysts say the K visa could still boost Beijing’s fortunes in its geopolitical rivalry with Washington.

“If China can attract even a sliver of global tech talent, it will be more competitive in cutting-edge technology,” Mr Feller said.?

Join us for keynote speech by Youssef Nassef, Director of the Adaptation Division at the United Nations Framework Convention on Climate Change (UNFCCC). As he shares his vision on ‘Shaping the Future of Resilience: A Vision for a Thriving Planet’.

Youssef Nassef has led the adaptation workstreams under the UNFCCC since their inception. He possesses over 30 years of experience in diplomacy and international environmental policy.

He led UNFCCC support for several initiatives on adaptation. These include the inception and support for National Adaptation Programmes of Action and National Adaptation Plans; the Nairobi Work Programme – an international knowledge hub for impacts, vulnerability and adaptation; and the Warsaw International Mechanism for Loss and Damage. He recently created the Resilience Frontiers initiative which applies foresight for attaining post-2030 resilience.

Date: Friday, 3 October 2025

Time: 10.00 – 12.00

Venue: SX Grand Plenary Hall, Level G, Queen Sirikit National Convention Center, Bangkok

China’s Golden Week starts tomorrow, when over a billion mainland Chinese people return to their homes to celebrate with their families or go travelling abroad. In the lead-up to this, the Thai government, especially the Tourism Authority of Thailand (TAT), have been working hard to urge Chinese travellers to visit the Land of Smiles.

This comes as many Chinese no longer see Thailand as a desired destination. The number of Chinese visitors has fallen by 35% year-on-year. The TAT predicts the number of Chinese tourist arrivals during Golden Week will drop 24% year-on-year.

Safety fears driven by reports about accidents and those covering scams, fraud and abduction have tarnished Thailand’s image. Chinese tourists are now flocking to Japan and South Korea, or other alternative destinations in our region, such as Vietnam and Malaysia.

There’s little wonder that Prime Minister Anutin Charnvirakul yesterday told parliament that his government would prioritise tourist safety and convenience, while cracking down on scammers targeting visitors.

But the biggest challenge among these is how the government can improve public safety for tourists.

This is a systematic problem that cannot be addressed by deploying more police to patrol tourist destinations or installing more CCTVs.

Thai officials do not lack resources or laws to ensure public safety, which now includes the use of biometric technologies to trace foreign visitors.

Over the years, Thai police have successfully solved all criminal cases related to foreign visitors except the case of Tomoko Kawashita, a 25-year-old Japanese tourist, who was raped and killed in Wat Saphan Hin National Park in Sukhothai, central Thailand, over 17 years ago.

Meanwhile, most of our problems affecting tourism, such as accidental fires in hotels and entertainment venues, broken infrastructure, illicit drugs or even scammers, can be linked to corruption.

Unsafe hotels, such as those without a fire escape, get built when local officials turn a blind eye and developers ignore building construction codes.

Unsafe public infrastructure, such as broken escalators or roofs that cave in during heavy rain, as seen at Don Mueang airport several years ago, often results from poor or inadequate oversight.

Then there is the rampant use of illicit drugs, either in communities or tourist destinations, made possible due to the help of tea money paying officials to look the other way.

The proliferation of proxy businesses run by some foreign criminal groups is also made possible with the help of local officials and local people.

Without tackling corruption and enforcing the law, Thailand will not be safe either for locals or tourists.

Apart from improving public safety, it is about time the government and TAT renew their tourism strategy. TAT currently has a strategy to reposition Thailand as an upmarket and sustainable destination, not just a budget-friendly one. But in reality, the TAT and the government have targeted high tourist numbers.

Policy makers have not made sincere efforts to transform Thailand’s tourism industry into one that offers upmarket, safe and sustainable destinations that tourists want to revisit and stay longer.

The government needs to make drastic reforms. After all, tourists are alike. They love to visit countries where they are well taken care of.

Authorities are urging caution in northern and upper northeastern Thailand, where heavy rainfall and overflowing rivers remain likely over the next couple of days, despite Typhoon Bualoi having weakened into a strong low-pressure system.

The Thai Meteorological Department reported on Tuesday that Bualoi, now centred over northern Myanmar and Laos, is moving along the monsoon trough affecting upper northern Thailand.

The storm, combined with the strong southwest monsoon over the Andaman Sea and the Gulf of Thailand, will continue to bring heavy rain.

Forecasters say high-risk provinces include Mae Hong Son, Chiang Mai, Chiang Rai, Lampang, Phayao, Nan, Phrae, Uttaradit, Sukhothai, Loei, Nong Khai, Bueng Kan and Udon Thani.

Conditions are expected to gradually ease after Thursday.

In Uttaradit, river embankments broke and floods swept through three districts – Nam Pat, Thong Saen Khan, and Tha Pla – around 2am on Tuesday.

Governor Sirivat Bupphacharoen called an emergency meeting, ordering evacuations and full assistance for residents.

The local Disaster Prevention and Mitigation Office has also deployed boats and supplies, while highways near Ton Sak Yai National Park and the Sirikit Dam were closed because of landslides and power pole collapses.

Phu Soi Dao National Park has been temporarily closed due to heavy rain and landslides.

In Mae Hong Son, Mae Sariang district was hit hard. Flash floods from the overflowing Yuam River were reported to have damaged homes, farmland and bridges.

A 38-year-old woman died when a landslide buried her house.

Flooding was also reported in Baan Sob Harn at tambon Baan Kat, leaving some villages cut off.

Other flooded districts include Muang and Mae La Noi. The inundation impacted 36 villages in six sub-districts.

Local agencies, along with the military and volunteers, have set up relief kitchens and are delivering urgent aid.

In Phetchabun, flash floods struck Lom Sak and Lom Kao districts, submerging over 1,000 homes. Reservoirs also overflowed.

The Royal Thai Navy has confirmed progress in dismantling structures encroaching on Thai territory along the border in Trat province, as parallel operations to clear landmines and unexploded ordnance have secured more than 236,000 square metres of land.

Rear Adm Parach Rattanachiayaphan, deputy navy spokesman, said three illegally built houses had been demolished in Ban Nong Ri, tambon Chamrak in Muang district of the eastern province bordering Cambodia. He described their removal as a positive first step, though several encroaching structures remain.

Among them is a large casino building at Laem Klat, which one of 17 targeted demolition sites. He noted that while most tasks are near completion, all removals require Cambodian cooperation, and the casino building will need multi-party coordination due to its size.

Security sources confirmed that operations have been under way in recent days, though details remain restricted for national security reasons.

The encroachments date back decades, originally on land once occupied by Thai timber workers before being taken over by Cambodian settlers.

Adm Pairote Fuangchan, the incoming navy chief, stressed that Thailand continues to apply pressure over the disputed casino, which has not yet been used. He insisted the structure must eventually be destroyed and added that there were no new cases of encroachment in Chanthaburi or Trat.

The casino complex that straddles the border was built by Chinese investors, and before the hostilities broke out, about 2,000 Chinese were staying in the area, according to Thai security authorities.

Progress on mines

In a related development, the Second Army Region has reported major progress in clearing hazardous remnants of the border conflict in late July.

Clearance teams in August and September carried out extensive removal operations in Phu Makua in Si Sa Ket, and Chong An Ma and Chong Bok in Ubon Ratchathani, according to Col Siwa Whangakart, spokesman for the National Mine Action Centre,.

The teams removed 122 anti-personnel mines, four anti-vehicle mines, 80 unexploded ordnance items and more than 2,000 abandoned explosive weapons. In total, 2,879 explosive items were dismantled and destroyed, making 236,537 square metres of land safe for patrolling, community use and future development, he said.

Col Siwa emphasised that alongside clearance, soldiers and affected residents are being trained to recognise explosive hazards, helping prevent future accidents.

Meanwhile, activist Veera Somkwamkid visited the Thai-Cambodian border in Trat on Tuesday, criticising restrictions on accessing Boundary Marker No 73 without Cambodia’s consent as a ‘disgrace’.

He called for the demolition of casinos and buildings allegedly encroaching on Thai soil, as the structures were clearly illegal under Thai law because no construction permits had been sought from local Thai authorities.

He also demanded the revocation of the 2000 and 2001 Memoranda of Understanding with Cambodia, saying they were disadvantageous to Thailand.

As well, he warned against leaving sovereignty issues solely to the military, stressing that a civilian government must share responsibility in safeguarding the nation’s sovereignty.

A drunk woman drove her BMW sedan against the traffic flow and caused a pile-up of about 10 vehicles on Monday night, police said.

The incident happened on Ratchaphruek Road in tambon Om Kret of Pak Kret district at 9.40pm Monday. The 37-year-old woman drove against the traffic flow for about five kilometres before colliding with a pickup truck carrying a full load of coconuts, according to media reports.

Other motorists abruptly applied their brakes and veered off to avoid the BMW coming at them but ended up crashing into each other. The damaged vehicles included two Porsches.

The BMW driver reportedly had chest pain while the coconut truck driver was injured.

Prime Minister Anutin Charnvirakul on Tuesday flew his private jet to the northeastern province of Loei to receive a donor’s organs that can be used to save at least seven patients.

According to the Public Relations Department, Mr Anutin arrived at Loei airport at 12.15pm to receive the organs from Loei Hospital.

Mr Anutin has been a volunteer pilot for the Thai Red Cross Society since 2014. The flight on Tuesday was his first volunteer mission since he became prime minister.

The organs came from a 19-year-old man who was a native of Chiang Khan district of Loei. He had been declared brain-dead after an accident.

The donated organs comprised a heart, liver, two kidneys, two eyes and a pancreas which can be used to save at least seven patients at King Chulalongkorn Memorial Hospital in Bangkok.

The donor is the 20th organ donor from Loei and the 141st in Thailand.

As a leading force in Asean’s green transition, UOB Thailand has embedded sustainability into both its business and community agenda, aligned with its goal of achieving net-zero emissions by 2050. Its efforts earned recognition from the Bangkok Metropolitan Administration as a waste management leader — a milestone that set the stage for an even greater ambition: empowering young Thais to drive change.

That belief inspired “Wonder Lab: Youth For A Greener Tomorrow”, a new platform inviting youth to turn ideas into projects that directly address environmental problems in their communities. Open to participants aged 15-25 nationwide, the inaugural year drew 453 applicants across 102 teams. Ten finalists were selected to develop their projects within one month before presenting their results at a showcase on Sept 13.

“Young people have the drive and imagination to shape their own future — what they need is space, resources and encouragement,” said Dhornratana Olanhankij, country function head of brand, media and communications at UOB Thailand. “Wonder Lab was designed not as a contest of ideas alone, but as a platform where participants are supported by mentors and empowered to act.”

The finalists’ projects demonstrated that environmental responsibility can be embedded into everyday life. They include:

Chan Koet Chak Ko Phai, Chan Loei Rak Lok developed a real-time app that helped schools cut food waste by 70% in one month.

6P boosted waste separation in schools by more than 300%.

Jungle Natural Team turned discarded pineapple leaves into biodegradable cat litter.

Nakhon Sawan Rak Sing Waet Lom wove recycled plastic into textiles and bags, blending innovation with local craft.

GreenCycle Crew repurposed plastic scraps into 3D printing filament.

The debut campaign has given digital natives future-ready skills, fostering creativity, critical thinking and observation. Participants also gained valuable lessons in teamwork, planning, systems thinking and public speaking — helping close gaps in crucial soft skills such as communication, adaptability, emotional intelligence and collaboration.

Other projects highlighted the breadth of young innovators’ interests, from tackling food waste to reimagining agricultural by-products. Together, the 10 projects illustrated how technology, education and cultural identity can advance sustainability.

Looking ahead, UOB plans to connect the programme with private-sector partners, civic groups and communities to scale up prototypes into wider social and environmental impact.

“UOB Wonder Lab is not just a community project,” Dhornratana said. “It is about walking alongside youth to co-create a sustainable future.”