Government’s economic targets face scepticism
The survey also revealed doubts about the long-term economic strategy of Prime Minister Anutin Charnvirakul’s government.
Its objectives include achieving high-income country status within 12 years, placing Thailand among the world’s 20 most competitive economies by 2030 and sustaining annual economic growth above 3%.
However, 53.8% of respondents considered the high-income target unlikely or impossible, compared with 18.8% who believed it was achievable.
The competitiveness target attracted greater scepticism, with 61.3% doubting its feasibility and only 13.8% expressing confidence.
Meanwhile, 48.8% considered sustained growth above 3% unlikely or impossible, against 21.3% who believed it could be achieved.
Overall, 55% rated the government’s economic performance below five out of 10, while 16.3% gave scores of seven or higher.
Respondents from government agencies and state enterprises recorded the lowest average assessment of government performance, at 3.9, and the weakest economic confidence, at 4.2. Business owners and entrepreneurs gave corresponding scores of 4.0 and 5.0.
The report noted that Thailand’s economy has expanded by an average of only 2–3% annually, while productivity, private investment and research and development have struggled to advance sufficiently.
These domestic weaknesses come amid geopolitical tensions, shifting supply chains, artificial intelligence (AI) development and the transition towards greener economic activity.
Corruption and outdated regulations top reform priorities
Asked to identify the main barriers preventing Thailand from escaping the middle-income trap, 45% ranked corruption as the single biggest obstacle.
Corruption also received the highest overall score when respondents’ top three choices were weighted. Other major barriers included education quality and workforce skills, outdated regulations and bureaucracy, and political instability.
When asked which structural reforms required the most urgent attention, 56.3% selected anti-corruption measures, the same proportion that supported eliminating unnecessary and outdated regulations through a regulatory guillotine.
Civil service reform and digital government services received 36.3% support, matching proposals to address household and small and medium-sized enterprise (SME) debt.
Upgrading SMEs and the grassroots economy followed at 32.5%, while 31.3% prioritised education reform.
Healthcare and future food favoured as growth engines
Healthcare, medical services and wellness emerged as the strongest potential growth industries for the next five years, selected by 76.3% of respondents.
Future food and agricultural technology followed at 55%, with high-value tourism at 47.5%.
AI, software and digital services received 30%, while creative industries and soft power attracted 20%.
Several industries targeted for new investment received comparatively less support. Data centres and cloud services were selected by 18.8%, clean energy and green technology by 17.5%, semiconductors and printed circuit boards by 13.8%, and electric vehicles and components by 12.5%.
The results suggest that respondents see greater opportunities to build on Thailand’s established strengths in services, healthcare, food and tourism.
Investment intentions were mixed. While 45% planned to increase investment in 2027 compared with 2026, another 23.8% expected to maintain existing levels and 31.3% intended to reduce, postpone or suspend investment.
Questions remain over data centre benefits
Respondents rated Thailand’s potential to become an Association of Southeast Asian Nations (ASEAN) data centre hub at an average of 6.3 out of 10.
However, 66.3% questioned the economic benefits of data centres because they employ relatively few workers while consuming substantial electricity and water.
Other concerns included data protection rules and cross-border information transfers, cited by 52.5%, shortages of technical specialists at 42.5% and insufficient renewable electricity at 35%.
The findings point to concerns about whether large-scale data centre investment would deliver sufficient benefits to the wider Thai economy.
Electricity reform attracts strong support
Energy policy emerged as another major area for reform.
Some 85% supported reviewing electricity contracts and tariff structures to reduce costs, including 51.3% who strongly supported the proposal.
Direct purchases of renewable electricity through power purchase agreements and third-party access to transmission networks received 77.5% support.
Another 72.5% backed accelerating carbon taxes and carbon trading to address trade measures such as the European Union’s Carbon Border Adjustment Mechanism.
Research and development of small modular nuclear reactors received 65% support, although 12.5% opposed the proposal, making it the most divisive energy issue surveyed.
Meanwhile, 78.8% considered green electricity important but not decisive for foreign investment decisions in Thailand. Only 6.3% regarded it as a determining requirement.
Labour shortages persist as AI reshapes employment
Respondents rated the readiness of Thailand’s workforce for future industries at an average of 2.7 out of five.
Some 42.5% awarded scores of one or two, while only 12.5% gave four or five.
Digital and AI skills were the most frequently identified shortages at 57.5%, followed by specialised engineering and technical expertise at 52.5%, and analytical thinking and problem-solving skills, also at 52.5%.
AI adoption is already changing business operations. Some 66.3% reported using AI in selected processes, 17.5% were conducting trials and 11.3% had integrated it extensively across their organisations.
Looking ahead three years, 47.5% expected employee numbers to remain stable but job responsibilities to change.
Another 46.3% anticipated workforce reductions, with 18.8% expecting cuts exceeding 10%. Only 5% predicted an increase in employment.
Trade risks also present new opportunities
External economic pressures generated contrasting assessments.
Cheap Chinese imports were considered harmful to Thailand’s economy by 73.8% of respondents, including 23.8% who expected a strongly negative impact.
US trade policies and import tariffs were viewed negatively by 66.3%.
Conversely, 67.5% expected Thailand’s new free trade agreements to benefit the economy, while 58.8% considered production relocation resulting from US-China tensions an opportunity.
Taken together, the survey findings indicate that respondents see structural reform, improved competitiveness and the development of new growth industries as essential to strengthening Thailand’s economic prospects.
Source: Thansettakij