Bank of Thailand Governor Warns Against "Grey" Casino Image, Backs Wellness Drive

Central bank chief highlights risks to Thailand's reputation and economy, advocating for a focus on value-added sectors like wellness over entertainment complexes

 

The Governor of the Bank of Thailand (BOT) has issued a warning about the potential for the legalisation of casinos to tarnish Thailand's international reputation, portraying a "grey" image and posing economic risks.

 

Dr Sethaput Suthiwartnarueput stressed the importance of the nation maintaining a "correct" and "clean" profile by adhering to regulations.

 

Speaking at a "Meet the Press" event on Friday, he voiced his support for bolstering the wellness sector as a higher-value, lower-risk alternative to entertainment complexes.

 

Dr Sethaput explained that Thailand's current economic objectives should extend beyond simply attracting large tourist numbers. He argued for a greater emphasis on generating "value added," citing the potential of areas like elderly care, which caters to a global market.

 

He acknowledged Thailand's existing tourism infrastructure but emphasised the need for continuous improvement.

 

However, his primary concern lay with the backdrop of significant global uncertainty. In this context, he asserted that Thailand must project an image of integrity and transparency.

 

Referencing Moody's recent assessment of Thailand's adherence to rules and ethical conduct, Dr Sethaput highlighted the risks associated with casinos, suggesting they could create a "grey" perception of the country, which he deemed a significant vulnerability.
  



 

Consequently, when considering the choice between developing entertainment complexes and the wellness industry, the Governor firmly favoured wellness. He argued that this sector offers greater potential for added economic value with fewer inherent risks.

 


"Entertainment complexes have numerous facets," Dr Sethaput stated. "The current challenge isn't solely about attracting more visitors, as tourists have various options. It's about how we generate value. In today's uncertain global climate, it's increasingly crucial to present ourselves as a nation that is correct, clean, and abides by rules and regulations. The issue of casinos risks increasing this 'grey' image, making it a significant risk."


 

Turning to the government's proposed 10,000 baht digital wallet handout, Dr Sethaput expressed his appreciation for the administration's reassessment of its suitability.

 

He noted that in the current climate of shifting circumstances and a surge of foreign goods entering Thailand, policy decisions must prioritise cost-effectiveness and deliver tangible benefits, especially given increasingly constrained financial and fiscal resources.

 

Regarding the impact of the ongoing trade war, Dr Sethaput observed that the effects of US tariff increases were not yet apparent due to ongoing negotiations. However, he pointed to a visible consequence: a slowdown in investment as businesses await clarity on import duties.
 

  



 

He predicted that the full force of this "storm" would not be felt immediately due to the negotiation process, anticipating the trade war's impact to become more evident from the third quarter of this year, with a clearer picture emerging in the fourth quarter.

 

However, he cautioned that the repercussions would be "protracted, not short-lived," extending beyond a mere 90-day period, and that negotiations would likely be challenging.

 


"The shock we face is like an approaching storm; the ship cannot maintain its previous speed," Dr Sethaput warned. "The current policy objective, in my view, is not about stimulus to force the ship back to its original speed. Faced with such a shock, a slowdown in growth is inevitable. Therefore, the current task is to manage the situation, to mitigate the shock, to minimise the impact, and for the measures implemented to encourage swifter adaptation. Blanket measures should be avoided, as the impact will vary considerably across different sectors.


 

Looking ahead, Dr Sethaput stressed that once the "storm" passes, Thailand's crucial task will be to "adapt" to foster new avenues for growth. Failure to do so, he cautioned, would likely lead to a further decline in the country's economic potential, which he currently estimates to be in the high two-percent range.

(2025/05/10-00:00)