Thailand’s growth is low, but not yet a crisis: Saha Group chairman

Saha Group’s chairman, Boonyasit Chokwattana, shared his perspective on the economy and the purchasing power of grassroots groups when announcing the annual “Saha Group Fair” on Thursday.

The event, offering heavy discounts on more than 1,000 products from the group, will be held at the Bangkok International Trade and Exhibition Centre from June 27 to 30.

Boonyasit said the Thai economy was not in a very bad state this year and even presented opportunities to those who can adapt to changes.

“I view the Thai economy mostly as a ‘campaign economy’, focused on short-term growth rather than long-term vision. We hesitate to undertake large-scale investments and infrastructure development due to fear of high debt,” he said.

Amid a sluggish trading environment, reduced purchasing power and high household debts, there are concerns that Thailand may face another economic crisis. However, Boonyasit disagrees, saying “it’s not to that extent. We don’t need to use the term ‘crisis’… it’s not that bad”.

Admitting that the Thai GDP growth at 1% is far lower than neighbouring countries, especially China which is showing a 5% growth, he said “from the public’s perspective, it is probably frustrating, but not to the extent of not having enough to eat”.

However, he remains hopeful about the recovery of the Thai economy, adding that he believes a shift in mindset is essential because opportunities exist. He noted that the government is committed to solving economic problems, and if these issues are addressed effectively, recovery will be swift. Conversely, he said, if the problems are not targeted correctly, the recovery may be delayed.

He added that in the retail sector, it was normal for products to experience growth and contraction. Compared to previous trading conditions, the current situation may not be as good, but looking at the global picture, he still believes Thailand is doing better and there are plenty of opportunities for locally made products to expand to international markets.

He said since the United States and Europe were facing high inflation, Thai brands have a lot of potential to succeed overseas.

“During the pandemic, foreign investments came to a near standstill. However, with the country now open, investors are flocking in. Saha Group sees a big opportunity in attracting Chinese investors due to their potential to utilise big data and drive business quickly through digital means. While Japanese investors remain, they are more meticulous in their decision-making. This era is also considered China’s era,” he said.

Another factor is the US-China trade war, which has prompted investors from other countries like Japan and Singapore to relocate their manufacturing bases from China to other countries. One of these destinations is Thailand, he said, which is creating plenty of opportunities for the Saha Group.