Official calls for rejig of 2026 budget

The government is being urged to revise its 2026 budget strategy by trimming around 200 billion baht of “nonessential” spending to accommodate the incoming wave of foreign investment flowing out of China as a result of pressure from US President Donald Trump's policies.

- WICHIT CHANTANUSORNSIRI

According to former deputy finance minister Pisit Lee-atham, the new finance minister under the Anutin Charnvirakul administration should review the 2026 budget, which was recently passed by parliament, to determine what is truly useful.

The global economy is at a turning point, with World Trade Organization and International Monetary Fund rules being discarded in favour of a system shaped by Trump's policies, said Mr Pisit. Any country that can gain access to Trump will receive favours from the US, he said.

Multinational investors that established production bases in China are considering relocating to other nations, said Mr Pisit. Even Chinese investors are seeking to move operations elsewhere to escape Trump's protectionist measures, he said.

This situation resembles 1985, when the US pressured Japan to adjust its exchange rate, forcing Japanese firms to relocate factories abroad, particularly to Thailand, in the automotive and electronics sectors, fuelling rapid Thai economic growth, said Mr Pisit.

A similar pattern may now emerge, with investors in Europe, Japan, the US and China potentially relocating to Thailand, he said.

Thailand and much of Southeast Asia benefits from a US tariff rate of around 19%, lower than many others such as Brazil, which faces a 50% rate. This presents a golden opportunity for the region, with Thailand as a key production base, said Mr Pisit.