BANGKOK, THAILAND – Thai workers are staggering under a debt burden of nearly half a million baht per household, with 98 percent having no financial room to maneuver.
Nearly 500,000 Baht Debt Per Family
The numbers are a shock: 98 out of 100 Thai workers earning under 15,000 baht are in debt. Only two percent are debt-free. On average, each family owes 494,505 baht – a jump of 14.4 percent compared to the previous year when the burden was 432,318 baht.
Two Out of Three Struggle with Repayment
87 percent of liabilities run through official channels with 9.42 percent interest per year. 13 percent are loans outside the system – there, monthly interest is 10.72 percent. Only 62 percent of those affected can fully pay the monthly installment of 10,867 baht. Nearly 34 percent pay only parts, and over four percent ask for postponement.
No Money Left for Daily Life
Nearly 87 percent of workers have already massively reduced their consumption. Food and rent costs are rising while wages are falling. A full 79.1 percent have no savings at all. Only one in five still has money put aside – a buffer for emergencies practically does not exist.
Existential Fear Spreads
More than 21 percent of respondents rate the risk of losing their job as high to very high. Almost a quarter consider a loss possible. Nearly 70 percent find the current minimum wage completely insufficient. They would consider 495 baht per day as fair – significantly more than reality provides.
First Red Numbers in Five Years
For Labor Day, experts from the Chamber of Commerce University expect only 2.1 billion baht in consumer spending. That is a minus of three percent. Thanawat Pholwichai, Rector, clarified the situation:
“There are no mass layoffs, but overtime and side jobs are disappearing. Workers fear for their future.”
said Thanawat Pholwichai, Rector.
Foreigners as Lifeline
Poj Aramwattananon, head of the Thai Chamber of Commerce, sounded the alarm. In eastern provinces such as Chon Buri or Rayong, workers from Myanmar, Laos, Cambodia and Vietnam are massively lacking.
“In eastern provinces such as Chon Buri or Rayong, workers from Myanmar, Laos, Cambodia and Vietnam are massively lacking.”
said Poj Aramwattananon, head of the Thai Chamber of Commerce.
Production is suffering, the country’s competitiveness is at stake. The private sector committee urgently calls on the government to extend all work permits.
Man Without a Safety Net
A whole army of workers is hanging by a thread. Whoever earns 15,000 baht and has to pay nearly 11,000 baht just for debts has no room for a dignified life.