Top Thai banker launches blistering attack on the economy, warning growth lags, 48% of GDP is hidden in the black economy, and urgent reforms are needed to expand inclusion, improve access to credit, boost jobs, and strengthen Thailand’s competitiveness.
The Chairman of the Thai Bankers Association has urged the government to overhaul the economy to tackle Thailand’s persistently low growth. For over a decade, Thai GDP has lagged far behind its Southeast Asian neighbours and global peers. The outspoken banker and Krungthai Bank chief called for fairer access to financial resources and an end to overreliance on giant corporates to drive growth. He also warned that nearly half of the country’s GDP—48%—remains invisible, trapped in the black economy. Any plan to succeed must expand social inclusion and give the less fortunate real access to credit.
Payong Srivanich, President of Krungthai Bank and Chairman of the Thai Bankers Association, on Saturday urged urgent, bold action to fix Thailand’s faltering economy. (Source: Thai Rath)
One of Thailand’s top bankers has warned that urgent reform is essential for sustainable economic growth. Payong Srivanich, President of Krungthai Bank and Chairman of the Thai Bankers Association, emphasised that structural problems hold back the kingdom’s potential. He stressed that these issues must be addressed by any government, not only the current administration. According to Mr. Payong, Thailand faces a serious imbalance in financial resource allocation. Moreover, the country depends heavily on large corporations and conglomerates for economic growth. This concentration limits opportunities for smaller businesses and new entrepreneurs. As a result, innovation remains constrained, and economic expansion slows.
In addition, Thailand’s economic competitiveness is declining. The country is now growing more slowly than other ASEAN nations, China, India and the Middle East. Furthermore, successive governments have largely failed to create high-value jobs despite repeated promises. Consequently, underemployment remains widespread, particularly in agriculture and low-productivity sectors.
Thailand faces imbalances and overreliance on large corporates that limit innovation and slow expansion
Bureaucratic inefficiency is another major problem. The country operates under over 100,000 regulations, some of which are outdated or redundant. Therefore, businesses face high compliance costs, slowed decision-making, and discouraged investment. These layers of red tape stifle entrepreneurship and reduce Thailand’s global competitiveness.
Mr. Payong also highlighted the country’s enormous informal economy. Approximately 48% of Thailand’s GDP is off the books and beyond government oversight. Consequently, tax collection is limited, fiscal planning is difficult, and inclusive development suffers. This informal economy also makes household debt management more complicated, adding further economic vulnerability.
Thailand’s economic structure is highly unequal. Only the top 10% of earners control over 52% of income. Similarly, just 1% of large businesses generate roughly 65% of GDP. As a result, wealth is concentrated, limiting opportunities for the majority of citizens. Furthermore, household debt exceeds 100% of GDP when informal lending is included. Consequently, consumption and investment growth are constrained.
Competitiveness is also hampered by a misaligned labour market. Most production generates little added value. Moreover, digital skills remain insufficient, preventing workers from participating fully in the modern economy. Hidden unemployment persists, especially in the agricultural sector. Therefore, Thailand risks falling behind in high-value industries if reforms are delayed.
Falling competitiveness, inequality and weak labour skills threaten Thailand’s economy and future growth
Government fiscal conditions are similarly challenging. Public debt is relatively high compared to other countries with similar development levels. Meanwhile, welfare spending has steadily increased over the past decade.
As a result, fiscal flexibility is limited. The IMF recommends cautious fiscal management to maintain long-term stability. Therefore, structural reform is not optional—it is necessary.
To address these challenges, Mr. Payong called for immediate, decisive action. He emphasised rapid deployment of technology and data-driven systems to reform economic governance.
Furthermore, he stressed the need for policy co-creation with the private sector and civil society. By leveraging modern databases, the government can target interventions more efficiently and monitor real-time economic performance.
Immediate action, technology adoption, and policy co-creation are essential to strengthen economic resilience
Mr. Payong presented these ideas at the “Future Forum 2025: The Great Transformation,” hosted by the Thailand Management Association. His speech, titled “Reinvent Thailand for a Sustainable Future,” outlined strategies to strengthen economic resilience and competitiveness. He warned that failure to act could leave Thailand trailing its regional and global peers.
The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) has already begun collaborating with the Bank of Thailand, the National Economic and Social Development Council, and the Fiscal Policy Office.
Together, they developed “Reinvent Thailand – A Platform for Policy Co-Creation and Execution.” This initiative aims to produce data-driven, results-oriented policies that revitalise competitiveness.
The platform promotes broad participation and efficient implementation. For instance, policymakers can now analyse hidden economic activity and household debt patterns.
Furthermore, it helps design practical interventions targeting structural weaknesses, fiscal inefficiencies, and underperforming sectors. This coordinated approach is essential for long-term sustainability.
Two urgent policy priorities have emerged. First, the platform seeks to reduce household debt through better data integration and expanded access to formal credit. This strategy reduces reliance on informal loans, stabilises finances and improves consumption capacity.
Reducing household debt and access to formal credit key to stabilising finances and boosting consumption
Second, it aims to boost private-sector capability through technology investment, domestic supply chain development, and workforce upskilling. By upgrading labour skills and creating new employment opportunities, Thailand can produce higher-value goods and services.
Environmental sustainability is a complementary goal. The initiative encourages private businesses to adopt competitive environmental standards. Moreover, government incentives, such as preferential procurement, will stimulate green and sustainable markets.
By combining technology, data, and policy incentives, Thailand can build resilient, high-growth sectors that create jobs and improve living standards.
Mr. Payong warned that time is critical. Delays in structural reform could deepen inequality, suppress innovation, and leave the economy vulnerable to external shocks. Without immediate action, the informal economy will continue to erode government revenue, and opportunities for high-value employment will remain scarce.
Coordinated reforms in technology, policy and sustainability critical to prevent further inequality
He also emphasised that reform is achievable with coordinated action. By aligning government, the private sector, and civil society, Thailand can transition from a low-growth, high-inequality economy to one that is inclusive, innovative, and competitive.
Ultimately, Thailand stands at a crossroads. Structural imbalances, declining competitiveness, bureaucratic inefficiencies, and high debt threaten its economic future. However, with decisive reforms and technology-driven governance, the country can revitalise its economy.
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The “Reinvent Thailand” platform provides a roadmap for change. It combines participation, practical solutions, and measurable outcomes to ensure sustainable growth.
Mr. Payong concluded that Thailand’s future depends on action. Governments must act decisively, businesses must invest in technology and skills, and civil society must participate actively. Only then can the nation realise its full economic potential, create high-value jobs, reduce inequality, and strengthen competitiveness. The time for incremental change has passed; urgent, bold, and coordinated action is required to secure Thailand’s future.
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