Leading economists call for bold changes in agriculture, energy and governance as Thailand faces 1.5% GDP growth amid mounting debt concerns.

Thailand’s incoming government must abandon populist handout policies and implement radical structural reforms if the country is to escape its low-growth trap, leading economists warned at a major economic forum on Tuesday.

Speaking at the KKP Year Ahead 2026 seminar, top economic advisers painted a sobering picture of Thailand’s economic predicament and outlined an urgent reform agenda that prioritises productivity gains and market liberalisation over short-term stimulus measures.

Call for Transformative Economic Policies

Dr Supavud Saicheua, chairman of the National Economic and Social Development Council (NESDC) and adviser to Kiatnakin Phatra Financial Group (KKP), delivered a stark assessment of current political discourse, noting that most political parties have failed to address Thailand’s fundamental economic challenges.

Dr Pipat Luengnaruemitchai, chief economist at Kiatnakin Phatra Securities, echoed this sentiment, emphasising that Thailand’s problems cannot be solved through conventional monetary or fiscal stimulus alone.

Six Pillars for Economic Transformation

Dr Supavud outlined six critical reform areas that Thailand’s new government must address:

1. Agricultural Transformation: Shift production from low-value carbohydrates like rice to high-value proteins and functional foods.

3. Railway Infrastructure Activation: Pass regulations allowing private companies to operate tourism and logistics services on state-owned tracks, which are currently utilised at only 6-10% capacity.

4. Semiconductor Industry Development: Focus on the OSAT (Outsourced Assembly and Testing) segment to carve out a strategic niche in the global chip supply chain.

5. Food-Tourism Synergy: Leverage Thailand’s recent recognition as “Best Country for Food 2025” to create powerful synergies between culinary excellence and tourism offerings.