Category: The Bangkok Post

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is exploring new measures to support small and medium-sized enterprises (SMEs) that have yet to fully benefit from Thailand’s robust export growth and rising foreign direct investment.

Payong Srivanich, chairman of the Thai Bankers Association and chair of Wednesday’s JSCCIB meeting, said while exports and investment are expanding, they have not translated into stronger employment or higher production in traditional industries.

“Capacity utilisation remains low, reflecting limited momentum in the real economy,” he said.

In May, capacity utilisation was only 59.6%, according to the Office of Industrial Economics.

Many SMEs outside the formal system are also missing out on the benefits of economic growth.

To address this, the JSCCIB plans to work with the Federation of Thai SMEs to classify businesses in sectors such as retail, tourism, and energy, enabling more targeted government support.

“This will allow the government to know what SMEs really need and provide the right assistance,” Mr Payong said.

A recent survey conducted with the Stock Exchange of Thailand found that revenues at around 330 SME companies have continued to decline, pressured by the economic slowdown and intensifying competition.

This stands in contrast to Thailand’s export sector, which the JSCCIB expects to grow by 8-10% this year.

Pimjai Leeissaranukul, chairwoman of the Federation of Thai Industries, said exports are being driven by booming demand for electronics and semiconductors linked to AI infrastructure.

“Exports have increased to the point that GDP should rise by more than 2.3%, with employment also improving,” she said.

Despite this, the JSCCIB has maintained its GDP growth forecast for 2026 at just 1.6-2.0%, citing prolonged conflicts in the Middle East that have pushed up oil prices, freight costs and global uncertainty.

Inflation is projected at 2.5-3.0% this year.

On infrastructure, Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said the JSCCIB opposes the government’s proposed 1-trillion-baht Land Bridge project, warning of environmental and community impacts.

“The project faces major ecological challenges, including biodiversity loss, which must be carefully considered,” he said.

Instead, the JSCCIB supports the “missing link” railway project connecting Chumphon and Ranong provinces, which it views as a more sustainable alternative.

The National Innovation Agency (NIA) will make an aggressive move to co-invest in startups through different models to unlock startup growth opportunities in Thailand and overseas.

One model is the planned establishment of a private equity (PE) trust valued at 1 billion baht to invest in promising startups.

The move comes right after the third version of the royal decree governing the establishment of the existing NIA takes effect on June 30.

The 2026 version of the legislation aims to strengthen the NIA’s role in developing the country’s innovation sector and supporting the commercialisation of research and inventions.

Krithpaka Boonfueng, executive director of the NIA, said that by the end of this year, she expects local startups to be able to access more sources of state funding, mainly during their pre-Series A to Series A funding rounds.

The third version of the decree allows the NIA to hold shares, become a partner, or enter into joint ventures with individuals or legal entities in activities related to its objectives, provided that profit-making is not the main purpose.

The legislation further permits the agency to invest in trusts established for joint investment activities connected to its mission.

Shareholding, partnerships, joint ventures, trust investments, and borrowing must comply with criteria to be set by the cabinet.

THREE MODELS

Ms Krithpaka said the NIA plans to introduce three funding models.

The first and current model is that it will pursue co-funding with private businesses to provide grants covering 75% of project value.

The second model involves the establishment of a PE trust fund valued at 1 billion baht, of which at least 500 million baht will be initially contributed by the NIA and the Stock Exchange of Thailand (SET), while the remainder will come from potential private partners. It will be managed by a fund manager.

The third model is the establishment of a holding company, together with other holding firms founded by universities, to co-invest in startups.

Under all these models, the NIA will limit its shareholding in startups to a maximum of 20% to allow startup founders the flexibility to manage their businesses.

The NIA funding will focus on deep tech and digital technologies with high growth potential.

Under these three models, the agency will allocate 40% of its total budget to the PE trust, while the rest will be split equally between the holding company model and the co-funding model.

Moreover, the NIA plans to discuss with the Finance Minister the provision of tax incentives or tax exemptions for investors in startups, including companies that use product licences from universities’ R and D to develop their businesses. The tax incentive will apply only to revenue generated from such licences.

“Currently, tax exemption for expenses only covers R and D, but we think this should be expanded to cover innovation investment,” Ms Krithpaka said.

LIST REVAMP

She said that the cabinet recently approved the NIA to oversee the ‘Innovation List’, with the responsibility transferred from the National Science and Technology Development Agency. The transfer will be completed by October.

The Innovation List is an official register of products and services researched and developed by Thai individuals or organisations in Thailand that have received formal certification and registration.

The primary objective is to encourage government agencies to procure innovations on the list, thereby creating a market and driving research towards commercialisation.

The NIA will build a platform to allow private businesses applying to have their innovations listed to track the listing process, making it more transparent, and will open the approval process for the Innovation List to external experts.

The NIA also plans to introduce tiers for listed innovations. For example, some innovations may remain on the list for four to five years before expiring, while others may stay for a maximum of eight years, a change from the current flat eight-year period.

“The eight-year period will still be provided to wellness, health tech or other forms of deep tech that have a longer lifecycle.”

Ms Krithpaka said the NIA will allow startups to pitch solutions for government project pain points. The winner, or selected applicants, will be guaranteed access to upcoming government projects.

All these methods will ensure Thai startups have the ability to scale globally, she added.

The Thai Shrimp Association is calling on government agencies to help tackle shrimp diseases and lift exports.

Ekapoj Yodpinit, president of the association, and Thai shrimp farmer representatives met with government agencies including the Agriculture and Cooperatives Ministry, the Commerce Ministry, and the Fisheries Department on Monday, requesting urgent measures to resolve problems plaguing the industry.

The group also urged the adoption of the 2026-2030 National Action Plan for Marine Shrimp Development as a national agenda item.

The Fisheries Department drafted this plan, which includes 11 strategic measures and 38 activities, with a proposed budget of 5.54 billion baht.

Mr Ekapoj said the plan addresses key challenges and should restore confidence across the industry. Once a vital agricultural sector, shrimp farmers recorded peak production of more than 640,000 tonnes in 2010, and generated over 110 billion baht in export value in 2011.

The sector generates income for more than 2 million people and sources about 80% of its inputs domestically, making Thai shrimp internationally recognised for quality and food safety, he noted.

However, since the outbreak of early mortality syndrome (EMS) in 2012, the industry has suffered severe declines, with annual production dropping to 270,000-280,000 tonnes, while the export value dipped to around 40 billion baht.

Thailand has lost about 750 billion baht in export opportunities over the past 13 years, while competitors such as Ecuador and India have expanded production and increased global market share, said Mr Ekapoj.

“Diseases such as white spot syndrome, EMS, white faeces syndrome and yellow head are the biggest challenges, driving up hidden costs and undermining Thailand’s competitiveness,” he said.

Lower shrimp production also affects cold storage and processing facilities, preventing them from operating at full capacity.

The association wants a knowledge hub established to enhance production capacity, targeting 400,000 tonnes of high-quality shrimp production, reducing costs and restoring competitiveness, Mr Ekapoj said.

The group has asked the government to address Malaysia’s suspension of Thai shrimp imports, strengthen domestic and international marketing, and introduce additional measures to reinforce the industry’s long-term sustainability and competitiveness.

Confidence in the broader economy remains “subdued”, with concerns centring on corruption, inflation, and divided opinions about what direction the country should move in, market research firm Ipsos says.

The study “What worries Thailand? June 2026”, released on Tuesday, outlined the major challenges and concerns the country is now facing, with 55% of the Thais surveyed identifying financial and political corruption as the issue weighing most heavily on local consumers.

The figure marks a 5-percentage-point increase from last month and is up 10 points from a year ago.

The finding is part of the Ipsos’ series titled “What Worries the World” conducted every month in 30 countries among 20,000 or so adults for over a decade.

“The continued rise suggests that trust, transparency and governance remain front of mind for many consumers [and] that institutional trust remains fundamental to public confidence,” it noted.

Ipsos also ranks inflation among Thais’ top three worries, with 32% citing it as a major concern, up 4 points from the previous month and up eight year-on-year.

This is due to “renewed pressure on household budgets as higher global energy prices and cost-of-living pressures feed through to consumer prices”, it said.

“Although Thailand’s economic outlook has recently improved modestly, inflation is expected to remain elevated in the near term, keeping affordability front of mind for many households.”

Poverty and social inequality remain the second-largest concern at 42%, highlighting how many households continue to feel uneven benefits from the economic recovery.

Meanwhile, public opinion on where Thailand is heading remains “perfectly balanced”, with 50% of Thais believe the country is moving in the right direction, and the rest seeing it as being on the wrong track. The even split illustrates how confidence remains fragile.

Koh Samui in Surat Thani has been ranked the top island in Asia-Pacific in the Travel + Leisure Luxury Awards 2026.

Deputy government spokeswoman Ploythalay Laksameesaengjan said the recognition reinforces Koh Samui’s status as a world-class destination, reflecting strong destination management and its ability to welcome international visitors with luxury service standards alongside well-preserved natural surroundings.

She said Koh Samui also performed strongly in other categories. Samui International Airport was ranked second in the “Best Airports” category in Asia-Pacific, behind Singapore’s Changi Airport, with praise for its design that blends with nature and its passenger-friendly services.

In the “Best Beach + Island Resorts in Thailand” category, five Koh Samui resorts were listed among the region’s top 10. Cape Fahn Hotel ranked second, followed by Four Seasons Resort Koh Samui in fifth, Kimpton Kitalay Samui in seventh, Anantara Lawana Koh Samui Resort in eighth, and Centara Reserve Samui in ninth.

She said the government supports island tourism development policies aimed at distributing income to local communities while improving safety and travel convenience.

She added that infrastructure upgrades are being promoted to strengthen air connectivity to island destinations and support wider tourism growth.

She said efforts are also focused on sustainable tourism, positioning Koh Samui as a model for eco-friendly island development that balances economic opportunity with environmental protection and long-term conservation of natural resources.

Thailand no longer has a fiscal buffer to contain rising public debt, making it necessary to accelerate reforms for both the economy and the public sector to lift economic growth closer to its full potential, according to the Finance Ministry.

A ministry source who requested anonymity said its Fiscal Risk Report, prepared following the completion of fiscal 2025 to assess the government’s medium-term fiscal risks in terms of debt sustainability, underscored the need for comprehensive structural reforms to both the economy and the public sector, alongside a serious commitment to fiscal consolidation.

According to the debt sustainability analysis for fiscal 2024-2026, the positive structural contribution from economic growth has declined significantly. As a result, the government’s fiscal space for net borrowing (after deducting principal repayments) without increasing the public debt-to-GDP ratio has narrowed to only 1.5% of GDP.

Although domestic borrowing conditions remain stable, the continued accumulation of outstanding debt at elevated levels has increased the structural burden of interest payments to around 1.5% of GDP. As a consequence, Thailand has effectively exhausted the structural buffer that previously helped contain public debt levels, said the source.

If the government implements serious fiscal consolidation in accordance with the medium-term fiscal framework for 2027-2030, Thailand could begin to lose debt sustainability if economic growth cannot exceed the pace recorded during the post-pandemic period, noted the ministry.

In addition to strict fiscal consolidation, accelerating structural reforms for both the economy and the public sector to enable medium-term economic growth to approach its full potential is essential to maintain the country’s debt sustainability, noted the source.

While government expenditures classified as hard to cut (salaries, welfare benefits for civil servants, and public welfare programmes) slowed somewhat in fiscal 2025, they continue to account for a high proportion of the budget. Such expenditures increased by 3.4% from the previous fiscal year and represented 67.4% of total net budget expenditures.

Spending on debt servicing, contractual obligations and public welfare programmes also continued to grow at a relatively high rate, said the source.

Thailand’s public debt has risen rapidly since the pandemic, when the government issued two emergency borrowing decrees totalling 1.5 trillion baht to mitigate the pandemic’s impact on the public.

As of April 2019, before the pandemic, Thailand’s public debt tallied 6.88 trillion baht, equivalent to 41.2% of GDP. By April 2026, public debt rose to 12.8 trillion baht or 66.7% of GDP, approaching the fiscal sustainability ceiling of 70% of GDP.

Meanwhile, the ministry proposed tax reforms to increase government revenue from 2026-2030. The proposals include raising the value-added tax (VAT) rate from 7% to 10%, with a phased increase of 1.5 percentage points in 2028 and a further 1.5 percentage points in 2030.

If the VAT rate is successfully increased to 10% as planned, the ministry estimates annual VAT revenue would rise by 345 billion baht. However, despite more than a decade of discussions, no administration has succeeded in increasing the VAT rate.

A raid was conducted on a major illegal anabolic steroid manufacturing operation in Suan Luang district of Bangkok, seizing more than 1.8 million items of illicit products valued at 50 million baht, authorities announced on Tuesday.

The operation was jointly led by Prime Minister’s Office Minister Supamas Isarabhakdi and Public Health Minister Pattana Promphat, along with the Consumer Protection Board (OCPB), the Food and Drug Administration (FDA), and the Consumer Protection Police Division.

Products confiscated included finished steroid powders and liquids, over 1.3 million unlabelled tablets, 405,094 counterfeit labels and packaging, and 79 pieces of production equipment.

The illegal facilities were located in condominiums and targeted foreign markets and online sales, misleading athletes, bodybuilders, and consumers with exaggerated claims.

Authorities confirmed the products were manufactured in non-standard facilities, posing risks of contamination, the presence of banned substances, and unsafe ingredients.

Ms Supamas said the government is committed to tackling unsafe health products, noting the dangers of unregulated steroids to long-term health.

She said the OCPB has been instructed to intensify enforcement in two key areas: online commerce regulation, including strict checks on direct sales and e-commerce businesses, and consumer protection, with a focus on complaint handling, mediation, and pursuing legal action on behalf of affected consumers.

Phuket experienced heavy to very heavy rainfall early Wednesday until around 9.35am, leaving roads inundated in multiple locations.

In Muang district, affected areas included the Surin Circle Clock Tower, in front of Kota Khao Mun Kai restaurant, an alley near Dara Hotel, Dibuk Road intersection, Thra Kraeng three-way junction, Lotus Samkong intersection, the route to Boat Avenue Mall and in front of Wat Chalong.

In Kathu district, flooding was reported in the Patong area in front of Paradise Complex, near the Patong fire station intersection and in front of Wat Kathu. No flooding was reported in Thalang district.

Phuket City Municipality has issued a warning urging residents within the municipal area to move belongings to higher ground. Heavy rain is expected to continue across the island and accumulated precipitation has pushed water levels in Bang Yai canal up by more than three metres.

Officials are working to increase drainage to ease impact on residents.

Those in the Phuket City Municipality area can report flooding emergencies via the municipal hotline at 1132, or the Disaster Prevention and Mitigation office at 076-211111 or 199.

The government has instructed Aeronautical Radio of Thailand Co (Aerothai) to extend its reduction in air navigation charges for an additional two months to help mitigate the impact of the energy crisis.

According to deputy government spokeswoman Lalida Persvivatana, the ongoing unrest in the Middle East continues to affect energy costs and airline operations. In response, the Transport Ministry has directed Aerothai to extend its air navigation charge relief measures to ease airlines’ operating cost burdens and improve their liquidity.

Ms Lalida said that at its meeting on June 24, Aerothai’s board of directors approved a two-month extension of the assistance measures, covering July and August.

Under the extension, domestic flights will continue to receive a 30% discount on air navigation charges. In addition, airlines will be allowed to defer part of their payments by paying 50% of the service charges by the original due date, while the remaining balance can be paid 30 days later.

Ms Lalida said the measures are expected to help reduce cost pressures, particularly those arising from volatile jet fuel prices. At the same time, Aerothai will enhance the efficiency of air traffic management to reduce flight delays, enabling aircraft to operate more efficiently by reducing flight time and fuel consumption while maintaining the highest safety standards for all flights.

The Fiscal Policy Office (FPO) had previously projected in April that the average price of Dubai crude oil would be US$91 per barrel for the year. However, as of June 30, the price of Dubai crude stood at $79.21 per barrel.

In celebration of ‘Morte Cucina’ (2026), the latest Thai film by Pen-ek Ratanaruang and shot by Christopher Doyle, House Samyan brings back five films of Wong Kar-wai that were shot by Doyle to Bangkok screens.

The films and their screening dates are as follows:

‘Happy Together’ – July 9, Thursday

‘2045’ – July 10, Friday

‘In The Mood for Love’ – July 11, Saturday

‘Chungking Express’ – July 12, Sunday

‘Fallen Angels’ – July 13, Monday

Australian cinematographer Doyle and the Hong Kong’s renowned film director Wong are linked by their over a decade collaboration in seven highly acclaimed films including ‘Days of Being Wild’ (1990), ‘Ashes of Time’ (1992), ‘Chungking Express’ (1994), ‘Fallen Angels’ (1995), ‘Happy Together’ (1997), ‘In the Mood for Love’ (2000) and ‘2046’ (2004).

‘Morte Cucina’ or ‘???????’ marked Doyle’s latest work as a cinematographer and Pen-ek as a director.

Pen-ek is known as one of the most prominent New Wave directors during the 1990s to 2000. His prominent works include ‘6ixtynin9’ (1999), ‘Monrak Transistor’ (2001), ‘Last Life in the Universe’ (2003) and ‘Ploy’ (2007).

The films are to be screened at House Samyan on the fifth floor of Samyan Mitrtown.