CEOs urge Paetongtarn to resign as political crisis deepens, with growing concerns over economic stability

Survey of 100 CEOs shows most call for Paetongtarn’s resignation to resolve political crisis and restore confidence in Thailand’s economy and government.

Political instability in Thailand is causing growing concern, with many business leaders fearing a further deterioration of the economy. A recent survey conducted by Krungthep Turakij questioned 100 CEOs from leading sectors such as manufacturing, agriculture, energy, real estate, exports, finance, retail, tourism, services, IT, and digital startups on their views regarding the ongoing political crisis.

The survey found that most CEOs are calling for Prime Minister Paetongtarn Shinawatra to resign, believing that her leadership is contributing to the worsening political and economic situation. The situation has worsened following the leaked audio clip of Paetongtarn speaking with Hun Sen, former Cambodian Prime Minister, which has significantly impacted public confidence in the government. The crisis was further escalated by Bhumjaithai Party's withdrawal from the coalition government.In the survey, the majority of CEOs agreed that the political instability in Thailand has been a major factor in the economic slowdown. Many are concerned that the current political tensions are directly affecting economic policies, investment, and public trust in the government.

CEOs are calling for the government to take urgent action to restore confidence in the economy. They suggested that the government should focus on resolving the debt issues faced by citizens, supporting the tourism sector, and creating a stable economic environment to foster growth.

While Pheu Thai Party has faced growing political challenges, the business community is urging Paetongtarn to act swiftly and decisively to regain the trust of both the people and the markets, before the country’s economic situation worsens further.
Calls for action

The survey revealed that 65% of CEOs believe the political situation has caused a severe economic slowdown, with a risk of further economic decline. 32.7% see the slowdown as less severe but still affecting some sectors, while the remainder had a more optimistic view of the economy’s potential.

When asked what action Prime Minister Paetongtarn should take, 42.6% of CEOs said she should resign, 27.7% called for the dissolution of parliament, and 26.7% thought a Cabinet reshuffle would be the most appropriate response. Some CEOs also suggested focusing on national reconciliation and other solutions.

Regarding the stability of the current government, over 70% of CEOs expressed significant concerns, believing the fragile political situation would impede the government's ability to implement effective economic policies. 22.8% were moderately concerned that this instability could affect the continuity of certain policies, while 4% felt that, despite the challenges, the government could still push forward with its policies.

More than 55% of CEOs believe that current political uncertainty in Thailand is significantly affecting business strategy planning, forcing companies to consider political risks more carefully in their long-term strategic planning. Another 40% of CEOs feel that political uncertainty is making long-term planning extremely difficult, requiring frequent adjustments to business plans.


Political uncertainty impacts business planning

When asked about how current political issues in Thailand (such as the conflict within the coalition government and the Cabinet reshuffle) are affecting private sector confidence, more than 56.4% of CEOs said they had a strongly negative impact, significantly reducing investor confidence. Nearly 37.6% of CEOs said the impact was moderate, causing hesitation in investment decisions.

Regarding the confidence of foreign investors, more than 50% of CEOs felt that a Cabinet reshuffle would have a moderate negative impact, possibly delaying investment decisions. However, others saw it as a minor issue that investors could understand, as it concerns internal matters. Some CEOs also felt that it could lead to a significant negative impact, causing foreign investors to lose confidence in the Thai market.

However, most CEOs believe that a Cabinet reshuffle may cause delays in policy implementation, but the overall direction should remain largely unchanged. Some also saw potential benefits if the new ministers were more capable and better suited to their roles.


Urgent policy focus on debt relief and tourism

When asked about which government policies were most necessary and should continue to be pushed forward, most CEOs agreed that the government should prioritise household debt relief and improving public welfare. Following that, CEOs suggested pushing for policies to stimulate tourism and services, along with policies to promote new target industries and encourage foreign direct investment (FDI).

As for recommendations to restore confidence in the business sector and the economy amid current political challenges, most CEOs said the government should focus on clarity and continuity in long-term economic policies. Additionally, there is a need to improve the efficiency of bureaucracy and enforce laws more effectively, while also supporting private sector participation in policy formulation. Most importantly, reducing political conflict and fostering political stability were highlighted as essential factors.

However, when asked whether the government has effective plans or strategies to solve the economic problems, more than 57.4% of CEOs said they felt the government lacks a clear or effective plan. The remainder of CEOs noted that they had not seen enough effort to tackle the issues.

(2025/06/20-00:00)