Thailand’s newly formed economic Cabinet, chaired by Prime Minister and Minister of Interior Anutin Charnvirakul, will hold its inaugural meeting on October 15, 2025, at the Parliament Building. This first session follows last week’s Cabinet approval of over 25 committee members from various economic ministries and government agencies.
One of the main agenda items is the appointment of a new United States Trade Policy Committee, expected to be led by Commerce Minister Suphajee Suthumpun. The committee will drive negotiations on Thai-U.S. tariffs, focusing on rules of origin and regional value content (RVC).
The Ministry of Commerce also aims to fast-track Free Trade Agreement (FTA) negotiations with the European Union and South Korea, emphasizing input from all relevant ministries and the private sector. Additionally, the Board of Investment (BOI) will propose the “Fast Pass” initiative to facilitate large-scale strategic investment projects valued over THB 300 billion.
The Commerce Ministry aims to finalize details of the Thai-U.S. tariff deal by the end of 2025 to provide clarity for businesses and encourage preemptive adjustments by all sectors.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced upcoming stimulus measures targeting the tourism sector. The three main measures include:
- Tax deductions for domestic tourists, especially for those visiting secondary cities.
- Accelerated scheduling of government training and seminars, bringing events forward to earlier in the year.
- Tax incentives for hotel renovation—potentially allowing hotels to deduct 1.5–2 times their renovation expenses to upgrade facilities, particularly in less-visited cities.
On the global front, renewed U.S.-China trade tensions surfaced as U.S. President Donald Trump announced a 100% tariff hike on Chinese imports and new software export controls, effective November 1. While a further escalation remains possible, the U.S. may reconsider if China loosens restrictions on rare earth minerals.
These developments are closely watched ahead of Trump’s potential meeting with China’s President Xi at the end of October during the APEC summit in South Korea.
Kitpon Praipaisarnkit, Deputy Managing Director at UOB Kay Hian Securities (Thailand), said these trade tensions will likely pressure the Thai stock market, with key SET Index support levels at 1,250 and 1,200 points.
The analyst recommends avoiding electronics and petrochemical stocks, which are vulnerable to profit-taking action, and focusing instead on retail (CPALL, CPAXT), finance (AEONTS, KTC), power plant (BGRIM, GPSC, GUNKUL), and banks (SCB, KBANK).
Separately, the new Bank of Thailand (BOT) Governor Vitai Ratanakorn shared an updated debt relief framework involving Asset Management Companies (AMCs) to restructure debts below THB 100,000, impacting around 3 million borrowers. The plan includes transforming Sukhumvit Asset Management (SAM) into a Social AMC, addressing both commercial bank and non-bank debt, while the Government Savings Bank (GSB) AMC will focus on state financial institutions.
Funds for this program will come from previous financial initiatives and commercial bank contributions, with details expected by late October for a rollout in early 2026.
Governor Vitai also signaled room for further interest rate cuts while reiterating his commitment to financial stability and a steady, low-inflation environment.
Regarding the strong baht, the BOT ruled out establishing a Sovereign Wealth Fund and confirmed ongoing reserve management. The regulator is also closely monitoring gold prices and discussing new policies for U.S. dollar-denominated gold trading, as well as evaluating regulation on “Buy Now Pay Later” platforms in the e-commerce sector.
