THAILAND Law and Practice Contributed by: Jessada Sawatdipong, Sarunporn Chaianant, Supawich Nimmansomboon and Supawin Pongthananikorn, Chandler Mori Hamada
Chandler Mori Hamada 31st and 36th Floors Sathorn Square Office Tower 98 North Sathorn Road Silom Bangrak Bangkok 10500 Thailand
Tel: +66 2 009 5000 Fax: +66 2 009 5080 Email: business-development@morihamada.com Web: chandler.morihamada.com
1. Loan Market Overview 1.1 The Regulatory Environment and Economic Background
remain the key drivers, while exports and manufactur- ing have been weighed down by softer global demand and higher trade barriers. Household leverage remains elevated and continues to be a policy focus. The authorities have emphasised responsible lending and proactive debt restructuring to safeguard financial stability. To alleviate financing constraints for smaller enterprises, the government approved the Portfolio Guarantee Scheme Phase 11 (PGS 11) in mid‑2024 with a guarantee limit of THB50 billion, aimed at expanding SME access to bank credit through the Thai Credit Guarantee Corporation. 1.2 Impact of Global Conflicts Geopolitical developments continue to pose external risks to Thailand’s financial and economic stability. The ongoing war in Ukraine continues to influence global energy markets, though its inflationary impact on Thailand has moderated as oil prices have fallen. In late 2023, the Israel–Hamas conflict created tem- porary volatility in global markets but had little direct impact on Thai trade or tourism, given Thailand’s mini- mal exposure to the region. The impact of the bor- der conflict with Cambodia has so far been limited to reduced border trade and labour concerns. A more significant development in mid-2025 was the introduction of US tariffs averaging around 19% on Thai imports, which could negatively affect the coun- try’s export and manufacturing outlook in the latter part of the year. Authorities are closely monitoring
According to the Ministry of Finance, for Thailand’s economy to achieve sustainable and stable long- term growth, attention should be focused on three key areas: • infrastructure development, including sustainable energy use, digital investments and regional trans- portation connectivity; • skills development to prepare the workforce for the global economy; and • maintaining fiscal stability through prudent financial management. Additionally, it is important to closely monitor key fac- tors that could impact Thailand’s economy, such as global geopolitical conflicts, the political and econom- ic situation of trading partners, global financial market volatility and so forth, which could affect Thai exports and the tourism industry. The Monetary Policy Committee (MPC) of the Bank of Thailand (BoT) shifted to a more accommodative stance in late 2024. Following a period in which the policy rate was held steady at 2.5% per annum, the rate was gradually reduced to 1.50% by August 2025 to support growth amid inflation. The Thai economy is expected to grow by 2.3% in 2025 and by about 1.7% in 2026. Tourism and household consumption
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