SCG chief warns Thai firms of tough two to three years

SCG chief executive Thammasak Sethaudom has warned that Thai businesses face a critical two to three years of transition, with cheap imports, Chinese overcapacity and new technology putting pressure on margins. Speaking alongside Frasers Property's group chief, he urged firms to prepare now, work more closely with suppliers and invest in staff training.

The two executives shared their views on a chief executive panel titled "Building Business Resilience for a Stronger Thailand" at the Sustainability Expo 2026 in Bangkok on Saturday, the Bangkok Post reported.

SCG sees a tough period ahead

Mr Thammasak, president and chief executive of Siam Cement Plc, said Thai companies are up against growing competition from imported goods and from industrial overcapacity in mainland China. In that environment, he said, operational efficiency and careful management of financing costs become essential.

He advised companies to keep a close eye on interest rate movements and to improve energy efficiency so that they can stay competitive.

The panel warned that firms which fail to prepare for disruption risk more than financial losses. They can also damage relationships with customers, trading partners and suppliers that have taken years to build.

Reasons for optimism

The outlook was not all gloomy. The speakers pointed to several strengths that Thailand can build on:

• a sovereign borrowing rate of around 2%;
• competitive operating costs;
• continuing inflows of foreign direct investment.

Together, these give the country a chance to strengthen its economy, provided companies use the window wisely. Recent signals on the Thailand GDP forecast show why business leaders are keen to protect growth.

Big firms and SMEs working together

Panote Sirivadhanabhakdi, group chief executive of Frasers Property Ltd, called for large corporations and small and medium-sized enterprises to cooperate rather than compete inside separate business groups.

He highlighted the Thailand Supply Chain Network (TSCN), a coalition of major Thai companies that works with more than 30,000 SMEs, as one platform that could make this happen. SMEs account for about 35% of Thailand's gross domestic product, so their health matters to the wider economy.

According to Mr Panote, larger companies can help smaller suppliers by sharing expertise, adopting common standards and building more inclusive supply chains. He cited the TSCN Business Partner Code of Conduct as a way to set shared expectations between partners.

AI, robots and the workforce

The panel also discussed how artificial intelligence and robotics will affect jobs. The speakers said these technologies should be used to boost human abilities and move workers into higher-value roles, not simply to replace them. Training will be needed so that employees can work alongside automation.

Mr Panote urged a fast update of school curricula and workforce programmes to meet demand in high-value industries such as semiconductors and advanced manufacturing. He also suggested that policymakers and the public consider property policies as part of a strategy to attract international talent to Thailand.

What it means for Phuket businesses

The warnings from SCG and Frasers Property are aimed at the whole economy, but they apply to Phuket too. Hotels, construction firms and retailers on the island depend on imported materials and on energy, and many are SMEs that sit in the supply chains of larger groups.

Big projects in Bangkok, such as the planned Central Embassy luxury expansion, show that major groups are still investing. Energy policy is also shifting, with the government promoting B20 biodiesel to lower fuel costs, which matters for transport and logistics operators.

For smaller firms, the message from the panel is to watch borrowing costs, cut energy waste, train staff for new tools and look for partners rather than going it alone.

Image: Queen Sirikit National Convention Center in Bangkok, venue of the Sustainability Expo where the SCG chief spoke. Photo by Jonashtand via Wikimedia Commons, licensed CC BY-SA 4.0.