Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Thai Business Chiefs Demand ‘Immediate’ Government to Tackle 104% Debt Crisis – Full Analysis.
The FTI: A Nation Under Debt Pressure
The Federation of Thai Industries (FTI) has highlighted the grim reality facing the Thai public.
Kriengkrai Thiennukul, chairman of the FTI, noted that 2026 is a pivotal year for survival.
He revealed that total household debt, when including the informal lending sector, has soared to approximately 104% of GDP.
This has effectively neutralised domestic purchasing power, leaving many citizens unable to meet basic daily expenses.
The FTI has set out a four-point emergency agenda for the incoming administration:
SME Rescue: Urgent intervention is needed for firms with credit lines below 500 million baht, where bad debts (NPLs) are rising at an alarming rate.
Export Viability: Measures to protect exporters from the impact of a strengthening baht.
Liquidity Access: Addressing the “credit crunch” caused by banks becoming overly cautious.
Market Protection: Implementing tougher measures against the influx of low-cost, substandard goods—primarily from China—which are decimating local manufacturers.