Luxury Spending Continues to Rise
Despite government efforts to boost the economy, credit card spending is likely to stay low as we head into the fourth quarter. It seems that the impact of stimulus measures, like the Konrakur En Plus co-payment program, is still uncertain for personal consumption in this final stretch of the year.
Yuttachai Teyarachakul, managing director at UOB Thailand, mentioned that credit card spending has remained stable over the first nine months of the year, compared to last year. He anticipates that spending will stay unchanged in the last quarter.
Interestingly, overall credit card usage saw a modest rise of about 2% to 3% during the first three quarters of the year. Yuttachai noted that there’s been increased spending among high-income individuals, specifically in categories like dining, travel, and luxury items.
UOB Thailand has focused on maintaining asset quality amid rising economic uncertainties, which has led to a lower non-performing loan ratio, below the approximate 2% market average. The bank also decided to delay new credit card acquisitions for the time being.
Meanwhile, UOB’s 2025 ASEAN Consumer Sentiment Survey indicates a shift in consumer behavior. While 45% of consumers are purchasing more through social media, a notable 47% are taking longer to reach a buying decision. Many users are now engaging with livestreams to compare products and evaluate prices—although purchases might be delayed, brand engagement appears to be growing.
Atith Ruchirawat, head of Krungsri Consumer from Bank of Ayutthaya, pointed out that the bank expects declines in both credit card and personal loan portfolios this year, a trend that has followed through the initial nine months. However, there’s a prediction for a slight uptick in credit card spending.
Krungsri reported that total spending on its credit cards for the first nine months hit 286 billion baht, reflecting a 1% year-over-year growth. They anticipate total usage will reach 400 billion baht by the year’s end, marking about a 2% increase. Ruchirawat also noted that the government’s personal income tax credit for domestic tourism should help lift spending in sectors like restaurants.
