Market Update: We break down the business implications, market impact, and expert insights related to Market Update: FTI survey finds corruption ‘worsening’ and adding heavy hidden costs for Thai businesses – Full Analysis.
Hidden costs: more than 20% for many firms
A major concern is the impact on business costs. The survey found 55.5% of respondents said corruption-related costs account for more than 20% of total operating costs. Another 29.9% put the cost at 11-20%, and 11.2% at 5-10%. Only 0.9% said corruption creates no cost burden—highlighting corruption not just as a governance issue, but as a significant hidden cost that directly harms competitiveness.
The survey also found 61.2% of executives said they have personally encountered demands for benefits or corruption, while 38.8% said they have not.
Executives urged action in four main areas:
- Legal reform and stronger enforcement: 64.5%
- Digital government and open data to reduce discretion and improve transparency: 60.2%
- Greater public and private participation, including whistleblower protection: 55.5%
- More transparent oversight of government policies and projects at every stage: 54.9%
FTI said tackling corruption requires a systematic and sustained approach—covering legal reform, serious enforcement, reducing discretion through technology, opening data for scrutiny, and building participation mechanisms across all sectors. The private sector, it added, stands ready to work with the government to push Thailand towards a more transparent, fair and sustainable economy.