ส.อ.ท. จับมือ ธปท. ผนึกกำลังเสริมเสถียรภาพเศรษฐกิจไทย รับมือบาทแข็ง–ภาษีสหรัฐฯ–ปัญหาสภาพคล่องธุรกิจFTI Collaborates with the Bank of Thailand to Strengthen Thailand's Economic Stability Amidst a Strong Baht, U.S. Tariffs, and Business Liquidity Issues

On October 21, 2025, the Federation of Thai Industries (FTI), led by Chairman Krieng-krai Khearnnukool, discussed collaboration with the Bank of Thailand (BoT), represented by Governor Witthaya Watthana, to enhance the financial stability and security of the country at Passion Room (802), 8th Floor, FTI.

“Thailand is facing challenges on multiple fronts, including managing the impacts of U.S. import tariffs, promoting new market openings, stimulating and revitalizing the economy, addressing business debt and liquidity issues, reducing energy costs, remedying the effects of border closed measures, and concerns about the strengthening Thai baht. Today, we met and discussed to find ways to enhance the competitive capabilities of operators. This presents a valuable opportunity and marks an important beginning for this collaboration,” said Krieng-krai Khearnnukool, Chairman of the Federation of Thai Industries (FTI).

Governor Witthaya Watthana of the Bank of Thailand (BoT) stated, “This meeting is the first full team engagement between the BoT and the Federation of Thai Industries. We are collaborating with all agencies to ensure the connection between monetary and fiscal policies operates efficiently. We will work more closely with the business sector to ensure sustainable economic growth.”

During the meeting, Krieng-krai presented FTI's driving policy aimed at enhancing the competitive capabilities of traditional industries (First Industries) towards creating new engines for economic development in new industries or Next-Gen Industries by shifting production from OEM (Original Equipment Manufacturer) to ODM (Original Design Manufacturer) or OBM (Original Brand Manufacturer), incorporating the use of technology and innovations such as digital, AI, and automation systems. There's a shift from profit-driven production to sustainable production, and from unskilled labor to high-skilled labor through a pay-by-skills mechanism.

Moreover, FTI is also operating under the 4GO concept to enhance SMEs, which includes Go Digital & AI, elevating industries with digital technology and artificial intelligence (AI) to enhance productivity and penetrate e-Commerce markets; Go Innovation, developing ‘small but clever’ entrepreneurs through innovations by creating products with innovations to increase product value and utilizing Automation & Robotics technology to reduce production costs; Go Global, enhancing product standards to be recognized globally, linking the Global Supply Chain, and distributing exports to other regional markets while developing Thai brands to be international; and Go Green, driving organizations towards sustainable development and achieving net zero goals by adjusting production processes and using environmentally friendly raw materials to strengthen product advantages through green trends and seizing opportunities from BCG model promotion policies, as well as developing organizations to align with ESG concepts.

In addition, Governor Witthaya Watthana elaborated on the BoT’s key mission, which is to maintain long-term economic and financial stability comprising three components: 1) Ensuring financial stability, particularly by managing medium-term inflation at low and stable levels to prevent deflation and bring inflation back within target ranges; 2) Establishing institutional financial stability, where financial institutions are robust and stable, capable of providing continuous services to borrowers, citizens, and businesses while managing vulnerabilities in the financial system; and 3) Achieving stability in payment systems by ensuring they effectively respond to the needs of citizens, businesses, and the government in terms of convenience, speed, safety, and reasonable pricing. “Today, we are at a point where we collectively see various structural economic issues, and we will discuss together to find preventive and remedial solutions that align towards the same direction to help the economy grow at an appropriate level and maintain the financial stability of the country,” he noted.

Furthermore, Naiwa Chantanasurakorn, Vice Chairman of the Federation of Thai Industries (FTI), addressed measures to cope with impacts from U.S. tariffs and the trade war. He expressed concerns regarding the differential application of U.S. tariff measures across product categories, with some already enforced and others under investigation. Industries already affected include steel, aluminum, automotive, plywood parts, certain wood types, and furniture materials. Industries reliant on imports include steel, aluminum, metal casting of machinery and automation, and electrical and electronics.

Regarding the impact on GDP, the Thailand Development Research Institute (TDRI) estimates that in a non-competitive scenario, Thailand's GDP could decrease by 0.77%, with exports to the U.S. declining by 15.4%, resulting in a global export loss of 0.9%, leading to an overall export contraction of 2.6%. In a competitive scenario (Scenario 2), Thailand's GDP might decline by 0.42%, exports to the U.S. drop by 13.9%, causing total exports to decrease by 1.37%. Under a competitive circumstance, the GDP could fall by 0.01% with exports to the U.S. down by 12.53%, although this can be compensated by expanding export markets to other regions.

Naiwa further proposed strategies to address challenges posed by the U.S. Reciprocal Tariff, emphasizing that the government should support providing information regarding economic repercussions to operators, which could guide businesses in preparation to effectively meet U.S. trade measures, along with promoting financial measures to facilitate business transformation and restructuring supply chains while seeking new markets to mitigate trade risks.

Additionally, he recommended implementing measures to alleviate impacts during business transformation phases, such as delaying the classification of debts as non-performing, restructuring loans for those affected by U.S. tariffs, and introducing low-interest loan measures to enhance financial liquidity. This aims to support operators in managing impacts from U.S. measures and new market openings, ensuring such special loans focus on helping affected businesses adapt and adjust their Supply Chains to align with the U.S. value-added requirement (RVC), as well as assisting businesses wanting to enhance production capabilities for exports to new markets instead of the U.S.

Moreover, there are suggestions for maintaining baht stability to preserve competitiveness, ensuring that the Thai baht does not fluctuate or strengthen against regional competitors. There is a promotion for operators, particularly SMEs, to utilize foreign exchange risk hedging tools.

Regarding proposals for promoting domestic products (Made in Thailand: MiT), Naiwa suggested fostering genuine use of MiT products by encouraging government procurement to utilize MiT products and establishing clear KPI indicators within cabinet resolutions for state agencies to procure MiT products through e-bidding systems within five years. This should also encompass joint investment projects between the government and private sector (PPP), expanding MiT products to the private sector through the buy Thai for Thai people” program, and encouraging MiT products to access global markets.

Furthermore, it was proposed to create special loan measures for suppliers within the Supply Chain associated with MiT to strengthen domestic economic capacity.

Chairman Apichit Prasoprat of the Federation of Thai Industries (FTI) discussed measures to promote financial liquidity and solve debt issues for SMEs, noting that feedback from FTI members across five regions identified key problems faced by operators mainly due to a lack of knowledge, skills, innovation, specialized personnel, and investment funds. Consequently, FTI has proposed specific actionable measures to assist SMEs, including introducing targeted low-interest loans that would enable commercial banks to access funds from the Bank of Thailand (BoT) at special interest rates if they provide loans to target groups, such as export-focused businesses, innovators, or green businesses.

Moreover, it was suggested to create an “alternative credit system” through the development of a central platform to enable financial institutions to more accurately assess risks based on e-commerce sales data, VAT data, and business utility payments. Additionally, support would be provided for funding aimed at transitioning towards “green and digital businesses” with the establishment of a special low-interest loan framework at 2% for SMEs investing in clean energy, carbon reduction, automation, or digital transformation while easing criteria to stimulate SME investment.

Furthermore, it was proposed for the government to support expanding the credit risk backing portfolio of the Small Industry Credit Guarantee Corporation (SUKO) from 30% to 40%, or reduce the guarantee period from 10 years to 5–7 years to enhance flexibility in accessing funds. Also, to establish an “SME Fund” designed to produce diverse financial products that lower barriers related to collateral and complex procedures, with reasonable interest or fee rates, while ensuring the fund can recycle money to assist other SMEs, as well as manage non-performing loans (NPL) effectively.

Addressing concerns regarding the strengthening baht, Krieng-krai added that the baht has appreciated more than regional competitors, posing challenges for affected private sectors to manage foreign exchange risks cautiously. The exchange rate is crucial to the competitiveness of export products, especially in a context where competing nations face Reciprocal Tariff measures.

As the country relies on exports for 60% of GDP and tourism accounts for 10% of GDP, an excessively strong baht poses issues that the Joint Committee on Commerce, Industry, and Banking (JCCIB) has continually signaled. A stronger baht puts immediate pressure on exports due to increased product costs and affects tourism. Hence, a balance must be sought by adjusting the baht not to appreciate excessively, as currently, there is a lack of coordination between responsible agencies affecting the baht, including the Bank of Thailand, the Ministry of Commerce, the Securities and Exchange Commission, the Customs Department, and the Anti-Money Laundering Office.

Witthaya concluded, stating, “The BoT is focused on maintaining the stability of the baht in line with underlying economic fundamentals and preventing excessive fluctuations that could impact business sectors, while continuing to collaborate with all relevant sectors to mitigate impacts and push forward various measures to support sustainable economic growth in Thailand.”

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Published by the Corporate Communications Department, Federation of Thai Industries, Phone: 02-345-1051