In the past year, under Prime Minister Srettha Thavisin’s government, numerous discussions with foreign companies have been held to attract investment to Thailand. The Srettha government expected that investment activities, particularly from roadshows and government support measures in the four main industries, would amount to approximately 558 billion baht.
Bank of Thailand Governor Sethaput Suthiwartnarueput stated that the BOT is closely monitoring investments due to the significant contraction. One factor contributing to the decline in private investment is the sharp drop in pickup truck sales, as purchasing pickup trucks is considered an investment, thereby reducing overall private investment figures.
“Used car prices have dropped significantly in recent months, affecting loans and increasing non-performing loans, which in turn reduces the demand for pickup trucks. The decline in private investment figures is not primarily due to a loss of investment but partly due to the drop in pickup truck sales. We are examining whether this issue is temporary,” Sethaput added.
As to whether the BOT is being overly optimistic about the economy, Sethaput clarified that the BOT has never claimed the economy is strong. Instead, the BOT noted that economic growth is returning to its potential level, which is relatively low at just below 3%. The BOT is increasingly concerned about the vulnerability of purchasing power, which is now spreading beyond the lower-income groups.