ThailandFetco calls for higher savings rate to boost national growth
The Federation of Thai Capital Market Organizations (Fetco) recommends the Thai government increase the national savings rate to 28% of GDP from 25% to support investment and reduce reliance on foreign capital.
Mobilizing Domestic Savings to Fund Thai Growth
Moving Thailand from a 25 percent to a 28 percent national savings rate requires structural policy changes rather than simple public appeals. To build this domestic buffer and reduce foreign capital reliance, the government must implement concrete mechanisms such as targeted tax incentives, pension adjustments, or expanded retail market access tools.
The execution risk lies in balancing forced or incentivized savings against immediate household consumption. Squeezing disposable income too fast risks stalling broader economic growth, while failing to modernize local market infrastructure means newly accumulated funds stay in unproductive bank accounts instead of productive investments.
For investment committees, a structural rise in local savings will deepen domestic capital pools, lowering local currency borrowing costs and insulating long-term projects from foreign exchange shocks.