Thai Shippers Push Government to Cut Energy Costs
Thai shippers forecast 8-10% export growth in 2025 despite global uncertainties, but urge the government to cut energy costs and boost local content policies to ensure foreign investment benefits domestic businesses and workers.
Thanakorn Kaetsuwannakun, chairman of the Thai National Shippers Association, has reaffirmed the organization's forecast for 8-10% export growth in 2025, despite ongoing risks from U.S. tariff uncertainty, geopolitical tensions, and global economic headwinds. Recent data shows strong momentum in Thai exports, with the association confident growth targets remain achievable.
Easing Middle East tensions—following temporary ceasefire negotiations between the U.S. and Iran—have reduced energy supply chain risks. Global crude oil prices have fallen from approximately $75 per barrel to around $68 in June, with commodity prices also adjusting downward from conflict-related peaks. However, ongoing damage to Middle Eastern energy infrastructure and low OECD oil reserves mean energy prices may not fall significantly further, making Thailand's energy security and petroleum management policies critical priorities.
Another major growth driver is the worldwide surge in artificial intelligence and data center investment, boosting both exports and foreign direct investment in Thailand. Yet this growth remains unevenly distributed in a K-shaped economy, where exporters and new industries thrive while SMEs, small businesses, and many workers lag behind.
Thanakorn emphasized that attracting foreign investment is only half the challenge—the real test is ensuring those investments create domestic value, link with Thai businesses, and genuinely raise worker productivity. The association is urging the government to accelerate Thailand Local Content policies and increase Regional Value Content requirements, enabling Thai suppliers to enter foreign investors' supply chains while reducing imports and building long-term economic value.
The group also recommends that the government deploy appropriate trade measures—including anti-dumping, anti-subsidy, and safeguard measures, plus product standards—to ensure fair competition and protect domestic industries from substandard imports.
For the second half, Thanakorn calls for maintaining appropriate interest rates while urgently reducing energy costs, particularly electricity, which remains a heavy burden on manufacturers. He also emphasizes the need to continue improving regulations.
