As one of Southeast Asia’s most popular tourism destinations, Thailand often evokes a blend of cheery locals and bustling streets. When it comes to sentiments regarding the economy, consumers in Thailand are feeling more anxious and worried compared with those in Malaysia, Indonesia, and Vietnam, according to the ASEAN Consumer Sentiment Study 2023 – Thailand report.

Despite the cautious optimism, there are bright spots:

• Thai consumers are highly receptive to tech-driven financial solutions and alternative investments.
• Consumers are becoming increasingly adept at using technology to handle their finances.
• Respondents are showing considerable interest in making sustainable investments.

Thai consumers are more worried about their economy

While the mood in Thailand is still more positive than negative, a cloud of uncertainty hangs over the horizon. Nearly one in three (32 per cent) Thai consumers say they feel “uncertain” about their country’s economic situation, compared with just 7 per cent last year.

In fact, seven in 10 Thais feel that their economy will likely experience a recession in Thailand within the next six to 12 months. This sentiment is especially prevalent among the Affluent class, as well as Gen Z.

Such pessimism reflects the country’s slowing pace of growth. In the first half of 2023, Thailand’s GDP growth lagged behind peers such as Indonesia, the Philippines, Vietnam, and Malaysia. This was driven by subdued demand for exports outside the tourism sector, political uncertainty on investments, and government spending.

However, 68 per cent of respondents said they expect to be better off financially next year—higher than the regional average of 61 per cent. The Gen Y demographic in Thailand is the most optimistic, with 82 per cent reporting a positive outlook.

Spending and financial habits are shifting

The current level of cautious optimism is reflected in shifts in financial behaviour. Three out of four Thai consumers are worried about their finances, particularly their ability to:

• Afford essential items (30 per cent),
• Maintain their current lifestyle (30 per cent), and
• Put money aside for savings (30 per cent).

As a result, Thai consumers have had to make lifestyle adjustments. Compared with the regional average, they are spending less on jewellery and more on utility bills and food delivery or takeaway.

On top of tightening their purse strings, 31 per cent of Thais are also putting more money into savings, while 45 per cent say they are saving the same amount as they did in the past. Savings appear to be a greater problem among Baby Boomers—only 17 per cent of them are saving more, 26 per cent are saving less, and 9 per cent are not putting any money into savings. The predicament of the older generation has not escaped the Bank of Thailand, which has noted that new debts and high monthly debt repayments have risen for people aged 60 years old and above.

Meanwhile, less than a third (27 per cent) of Thai consumers have been able to increase their investment spending. Consumers in the Affluent category are putting more money in securities, while Gen Y is spending more on insurance.

Thais also appear to be more open to modern, non-banking investments than their peers in Southeast Asia. They are spending more than the regional average on sustainability investments and green loans, as well as digital currencies and assets like cryptocurrency and central bank digital currencies (CBDCs).

Tech-savvy money management

Thailand is a leading adopter of mobile payments in Southeast Asia—as early as 2017, the country rolled out cashless payment methods to street food vendors. From 2017 to 2022, the volume of mobile banking transactions in Thailand grew from 1.3 billion to 22.8 billion. This trend continues, with the Mass segment primarily driving mobile banking adoption.

Given their familiarity with digital finances, it is no surprise that four in five Thais are comfortable sharing their financial data on one consolidated platform – 10 per centage points higher than the regional average. Across all age groups, more Thai consumers are also using online banking platforms to track their spending and money more closely, compared with last year. In line with regional attitudes, they prefer online channels when making overseas money transfers, conducting high-value transactions, applying for a bank loan, buying insurance, and other banking activities.

Thai consumers are shoppers, too, using digital platforms to find the best bargains. More than half (51 per cent) say they are doing more research about product deals, rewards, and savings. Personalisation is preferred, with almost six in 10 Thais keen to receive shopping offers that are tailored to their needs.

Thais wish to make green investments and gain better work incentives

Thai consumers have expressed an interest in making sustainable investments but perceive a dearth of suitable options. In fact, 37 per cent of Thai consumers have integrated sustainable investments into their portfolios. Although three in four believe it is hard to verify or measure the social and environmental impact of sustainable investing, they are open to making green investments if the options align with their risk tolerance.

Additionally, the Study found that the most important sustainable goals to Thais are good health and well-being (45 per cent), reduced inequalities (41 per cent), as well as quality of education (33 per cent).

In terms of career, respondents seek decent salary and benefits (40 per cent), stability (36 per cent), and good career progression (32 per cent) in their jobs. More than half (52 per cent) would like to have flexible working hours as part of their mental health and wellness support. At the same time, only one in four Thais report feeling stressed at work.

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 The ACSS 2023 reports and infographics are now available for download:

• Consumer sentiments and financial habits
• Sustainable behaviour and sustainable finance
• Employee concerns and expectations

Download full report

About this study

ASEAN Consumer Sentiment Study (ACSS) is UOB’s regional flagship study analysing consumer trends and sentiments in five countries: Singapore, Malaysia, Thailand, Indonesia and Vietnam. Now in its fourth year, the survey was conducted in June 2023 and captures the responses of 3,400 consumers across different demographic groups in this dynamic region. In Thailand, 600 consumers were surveyed.

Some of the areas covered include:

• Everyday life outlook
• Shifts in spending and financial habits
• Digital payment habits and preferences
• Sustainable behaviour and sustainable finance
• Digital payment habits and preferences

Important notice and disclaimers

This article shall not be copied or relied upon by any person for whatever purpose. This article is given on a general basis without obligation and is strictly for information only. The information contained in this article is based on certain assumptions, information and conditions available as at the date of the article and may be subject to change at any time without notice. You should consult your own professional advisers about the issues discussed in this article. Nothing in this article constitutes accounting, legal, regulatory, tax or other advice. This article is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this article, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the views expressed and the information in this article.