Veerayut dissects the 400 billion baht loan decree, saying the first tranche aims to regain political support while the second sustains patronage networks. The government relies on Data Centers to boost GDP but abandons production sectors, SMEs, and labor, criticizing the absence of a systematic energy transition plan.
On 26 Aug 2026, Veerayut Kanchuchat, party-list MP of the People’s Party, spoke during the debate on the draft decree authorizing the Ministry of Finance to borrow 400 billion baht to address energy crisis impacts and support the country's energy transition. He said the government split the loan into two equal parts: the first to revive the economy and ease burdens on citizens and businesses, the second to shift from fossil fuels to clean energy. However, he argued the government has yet to achieve the first tranche’s goals, neglecting at least four affected groups: those hit hard by the oil price crisis such as fishers, transport workers, farmers, as well as manufacturing, SMEs, and labor sectors.
Although the government claims to provide targeted aid, during the crisis it adopted a scattergun approach. Meanwhile, the manufacturing sector, which accounts for about a quarter of Thailand’s economy, lacks effective policies. This is evident as factory capacity utilization dropped to roughly 57%, the lowest in 24 quarters; the automotive sector contracted by 7.2%, and the business confidence index fell from 48.8 to 44.0.
Veerayut added that in the first half of 2026, over 7,000 SMEs closed down, a 12.5% increase from the previous year, amid fierce competition from imported goods flooding the market. Meanwhile, unemployment rose nearly 10% year-on-year, and the number of social security insured persons under Section 33 claiming unemployment benefits increased by almost 50,000 within one quarter.
The government may still believe the economy is on the right track because Q2 GDP grew by 1.9%, which they describe as entering the “New Economy.” However, a closer look shows private investment growth of 13.4% was mainly driven by Data Center investments, which heavily depend on imported equipment throughout the supply chain. The government and the Board of Investment’s rush to approve Data Center projects—without stringent environmental impact assessments, clear Local Content requirements, or proper operating licenses—has contributed to Thailand’s trade deficit exceeding 1 trillion baht in the first six months.
Veerayut also said the government’s Data Center board may be a mere formality to avoid problems. The parliamentary commission’s findings reveal at least five issues: 1) no retrospective oversight of 57 approved projects totaling 810 billion baht; 2) no selective criteria for types of Data Centers to promote; 3) legal gaps between Data Centers and Data Hosting; 4) no investors have requested clean electricity; and 5) the Local Content concept might wrongly include land and construction costs.
“The ones truly benefiting from the Data Centers are landowners, industrial estate owners, and contractors. The first loan tranche money is not being used to build the economy’s future but is instead being spent for political gains and to help Prime Minister Anutin court votes from the public,” Veerayut said.
Regarding the second loan tranche, which the government claims is for energy transition, Veerayut observed that many proposed projects show a lack of systematic transition planning. Examples include local government projects that once offered a catalog of solar cell and system options before being shelved, and the Royal Irrigation Department’s 20 billion baht project to replace oil-driven pumps with electric ones, raising questions about whether this is an urgent necessity or a genuine transition.
For rooftop solar panel projects, with a government target of one million households, discussions with related agencies reveal no clear consensus on subsidies—whether 30,000 or 50,000 baht—or support for 3 or 5 kilowatt systems. Additionally, grid limitations make the target of one million households by December 2027 unlikely to be met.
Veerayut stressed that energy transition is not just about increasing electric vehicles or solar panels but requires seriously reducing fossil fuel dependence. Studies by the Economic Development Commission and clean energy projects surveying over 200 companies in Thailand’s main industries show that currently, Thailand has about 30 units of clean electricity available. In 4-5 years, industrial demand is expected to rise to nearly 90-100 units, and by 2035 it could reach 140-170 units.
Many companies want to continue investing in Thailand because labor, resources, infrastructure, and supply chains are already established. However, without sufficient clean electricity, future investments may shift to Vietnam or Malaysia. Furthermore, a shortage of clean energy could push high-quality companies away, leaving only fossil-fuel-reliant investments behind.
Veerayut pointed out that energy transition cannot follow a one-size-fits-all approach since SMEs in the automotive supply chain and the petrochemical industry have different energy needs. The government must design appropriate tools such as Direct Power Purchase Agreements (PPA), Underground Transmission (UGT), and electricity procurement systems tailored to each industry.
In conclusion, the second loan tranche lacks a systematic energy transition plan. Many projects do not reflect urgent needs and could be funded through regular budgets. Moreover, there are no energy, technology, or outcome indicators to help reduce electricity costs for the public.
“Even ignoring fiscal discipline, regulations, and procedural appropriateness, the goals themselves raise doubts about how the government is using these two loan tranches, which are borrowed from the future of all citizens. The first tranche is being spent to regain political support, while the second is used to sustain patronage networks,” Veerayut concluded.