"Phlat," former Secretary to the Minister of Commerce, warns that an inflation crisis is threatening to repeat in Thailand. He urges the government to stop injecting money to stimulate spending and instead focus on improving production efficiency across the system to solve long-term living cost problems.
On 16 April 2026, Mr. Phlat Sirikulpisut, former Bangkok MP candidate for District 1 of the United Thai Nation Party and former Secretary to the Minister of Commerce, commented on Thailand's economic situation amid the Middle East crisis, which may trigger inflation. He stated that Thailand needs to tackle inflation by increasing "productivity" rather than relying solely on monetary policy.
Mr. Phlat noted that many people currently feel a clear rise in living costs, and the Middle East crisis is likely to push prices of goods and services even higher. In the past, politicians have often assigned the Bank of Thailand (BOT) to address high prices through monetary policy and money supply control, but in reality, the BOT cannot solve the problem alone.
Mr. Phlat proposed that the government shift its economic policy from being "demand-driven" or consumption stimulation to a "supply-side" approach focused on improving production efficiency. He observed that past government spending stimuli and cash injections helped temporarily but are not sustainable long-term and have contributed to mild inflation. Moreover, subsidies in various areas have pushed domestic prices up, affecting tourism competitiveness. Tourists from China and Japan have begun expressing concerns about rising living costs in Thailand, even complaining, "We don’t want to come to Thailand anymore."
"The urgent solution the government must implement is managing productivity in both production and services sectors, especially agriculture," he said.
Mr. Phlat cited China as an important case study, noting that over recent years, Chinese citizens’ incomes have steadily increased. New graduates earn starting salaries of about 6,000–8,000 yuan (RMB) or more in some cities, while Thailand’s wages have remained around 15,000–20,000 baht for a long time. Despite rising wages in China, product prices have decreased or not risen correspondingly, boosting purchasing power and sustaining strong economic growth. China also controls speculative demand, such as in real estate.
He gave another example: taxi fares in China are cheaper than in Thailand because vehicle and energy costs are lower, especially due to electric vehicle (EV) use. High competition also means many taxis are available, allowing passengers in cities to get a ride within three minutes.
Regarding agriculture, Mr. Phlat explained that China has increased productivity by using technology to reduce labor while boosting output. They have developed organic farming methods, such as "condo" livestock farming, adapting knowledge from Thai chicken farming to pig farming in condos, which helps control diseases effectively.
In industry, Mr. Phlat noted that China places great importance on productivity and efficiency. The manufacturing sector focuses on developing infrastructure and economic ecosystems, creating economies of scale and scope. This approach keeps product prices from rising while increasing profits.
Mr. Phlat emphasized that Thailand urgently needs to restructure its economy similarly, especially economic agencies and the Board of Investment (BOI), to raise national productivity and help alleviate citizens’ suffering from rising living costs in the long term.