Thailand ‘too reliant’ on foreign energy, Korn says

Thailand still ‘safe haven’, says SET chairman

Thailand is facing rising fiscal and energy risks stemming from the conflict in the Middle East , according to former finance minister Korn Chatikavanij.

Speaking at the ONEAM Investment Forum 2026 on Thursday, Democrat Party deputy leader Korn Chatikavanij warned that the kingdom remains highly vulnerable to external shocks because of its heavy reliance on imported energy and limited fiscal buffers.

He described the government’s position as one of “limited funds but mounting obligations”, citing growing liabilities in the state-run Oil Fuel Fund, shrinking emergency reserves and delays in approving a new national budget.

Thailand’s dependence on natural gas for electricity generation was a particular concern, he said. About 70% of power in the country is produced from gas, much of it imported via pipelines from Myanmar or as liquefied natural gas (LNG) shipments from Middle Eastern producers passing through the Strait of Hormuz, he added.

“To contain rising energy costs, the Oil Fuel Fund is subsidising diesel heavily,” he said, noting the subsidy costs about 1.3 billion baht a day. Debt in the fund has begun to rise, raising the prospect that the Ministry of Finance may need to guarantee further borrowing, he said.

The state could ease pressure by cutting fuel excise taxes, but Mr Korn cautioned that the government has limited capacity to sacrifice tax revenue for long periods.

Emergency central budget reserves have also fallen to about 30 billion baht, much of which may be used to subsidise fertiliser for farmers, he said.

A shortage of fertiliser, particularly urea produced in the Middle East, could further strain the agricultural sector during the planting season.

Mr Korn added that delays in passing the next national budget mean government spending support may not begin until October or November this year.

“This gap means the government lacks sufficient tools to stimulate growth or mitigate economic pressures effectively,” he said.

Beyond immediate risks, he urged structural reforms, including reducing reliance on gas for power generation, tackling household debt, addressing demographic ageing and improving workforce readiness for emerging technologies.

Bourse aims to bolster market resilience

The Stock Exchange of Thailand (SET) is seeking to strengthen capital market resilience.

SET chairman Kitipong Urapeepatanapong said on Thursday that geopolitical tensions, volatile energy prices and supply chain disruptions have created an uncertain investment environment.

Despite this, Thailand remains a regional “safe haven” supported by strong foreign reserves, manageable public debt and a stable banking system.

He noted that Thai listed companies paid about 680 billion baht in dividends last year, while the exchange is expanding products such as Depositary Receipts linked to more than 330 global firms and developing green finance tools, including carbon credit trading.