Anusorn warns of Thailand's economic vulnerabilities, risking stagflation amid high inflation. He calls for the swift formation of a government and appointment of capable individuals to manage the country, emphasizing the urgency of competent leadership.
At 16:30 on 8 Mar 2026 GMT+7, Mr. Anusorn Thamjaidee, Member of Parliament for Bangkok from the Prachachon Party and former chairman of the audit committee and board member of Bangchak Corporation Public Company Limited, stated that energy security is currently a critical vulnerability in Thailand's economy. He stressed the importance of enabling parliamentary mechanisms to promptly form a government and appoint knowledgeable, experienced, and honest individuals to serve as the country's executive leadership amid the economic crisis during wartime. The Prachachon Party can serve as a strong opposition, constructively scrutinizing and balancing the government while prioritizing the nation's and people's interests. In this global crisis, politics must focus on resolving citizens' hardships and preparing for successive emerging impacts, aiming to improve society rather than power struggles; both government and opposition can contribute positively to the country.
Mr. Anusorn added that, given their differing roles, energy security and rising energy prices will be major challenges for the government. Energy shortages may occur during wartime crises, making it highly likely that Thailand will face the risk of stagflation—economic stagnation combined with high inflation—similar to many Asian countries reliant on imported oil. Inflation will rise due to supply factors and increased production costs, replacing the previous phase of deflation or low inflation caused by weak domestic aggregate demand.
Mr. Anusorn Thamjaidee, MP for Bangkok from the Prachachon Party, further said that crude oil futures prices in the global market have risen over 35% in the past week—the largest weekly increase since 1983. Currently, many refineries in the Middle East have halted production, and recently an oil depot in Iran was attacked. If crude oil prices exceed 120 dollars per barrel, subsidy measures may need adjustment to avoid fiscal risks and discourage inefficient energy use. The government must prepare budgets to address prolonged wartime economic crises in other areas as well. He supports diesel price subsidies via the oil fund mechanism. The oil fund is expected to return to a deficit soon after being positive for some time following four consecutive years of deficits, which peaked at 130 billion baht at the end of 2022. Energy policy must advance four main plans simultaneously: power development and energy security, energy conservation and efficiency, renewable and alternative energy development, and greenhouse gas reduction. Energy conservation through efficient use and savings is a key solution for this oil crisis, as Thailand has low energy reserves and high import dependence. Investment in renewable energy projects such as solar power and solar photovoltaic systems is crucial for Thailand's energy security.
Mr. Anusorn Thamjaidee, MP for Bangkok from the Prachachon Party and former chairman of the audit committee and board member of Bangchak Corporation Public Company Limited, added that East Asian economies dependent on imported energy, especially Japan, will be heavily impacted. Inflation rates will rise significantly. Japan has maintained low interest rates for a long time to stimulate its economy and combat deflation in recent years. The very low or sometimes negative yen interest rates have enabled large global funds to borrow yen cheaply (or at negative rates) and convert the funds into major currencies, particularly the US dollar, through the Yen Carry Trade to invest worldwide in stocks, bonds, and commodities for profit from interest rate differentials and higher returns. When inflation rises in Japan, the Bank of Japan will be pressured to raise policy interest rates. What we will likely see next is the unwinding of Yen Carry Trade positions. The energy crisis creates inflationary pressure leading to interest rate hikes, prompting investors and large funds involved in Yen Carry Trade to quickly sell risky assets worldwide to repay yen-denominated loans. This will cause global financial markets to remain volatile, turbulent, and continue to adjust downward.