Thailand's central bank governor, Sethaput Suthiwartnarueput, warned that the legalization of casinos could pose a risk to the country's economic stability, especially as Thailand continues to face structural challenges and delayed recovery prospects.
In a recent speech outlining Thailand's economic outlook, Suthiwartnarueput expressed concerns that integrating casinos into the formal economy could further expand grey market activities.
He stated that this move would complicate law enforcement efforts and could damage Thailand's governance, especially at a time when the country's fiscal credibility is under increasingly strict international scrutiny.
His remarks were made after the government was considering a proposal to allow casinos as part of a broader entertainment complex model. Although some proponents have pointed out the potential income from tourism and investment, Suthiwartnarueput warned that the social and regulatory costs might outweigh the short-term benefits. He also highlighted the risks of money laundering and insufficient regulation, which could undermine investor confidence and long-term reform efforts.
Suthiwartnarueput described Thailand's recovery path as a long V-shaped trajectory. He attributed the delayed economic rebound to external pressures, including the US-China trade dispute, as well as internal weaknesses in manufacturing, tourism, and small business competitiveness. He estimated that Thailand's economy might not begin to recover until 2026.
Suthiwartnarueput called for structural reforms rather than relying on fiscal subsidies or large-scale stimulus measures, including supporting foreign investment, simplifying regulations, and shifting towards value-added services. He reiterated his opposition to the government's digital wallet plan and emphasized that long-term growth depends on addressing deep-seated inefficiencies.
He also responded to Moody's recent downgrade of Thailand's credit outlook, noting that Thailand is paying more attention to its institutional strength and economic governance.
