INFORMATION

2025/12/02 18:20

Hat Yai Flood Crisis 2025: A Wake-Up Call for Southern Thailand’s Economy

Dec_02_2025_flood1.png

Picture from: Prachachat Business Online

 

In late November 2025, Hat Yai, Songkhla — a key business, trade, and logistics hub in southern Thailand — faced the largest flood in decades due to heavy rainfall and water flowing from higher areas.

 

Many business districts were submerged, with roads cut off, buildings, shops, hotels, transport vehicles, and goods all temporarily halted. Although the flooding lasted only a few days, it disrupted cash flow from retail, tourism, wholesale, and logistics, as well as supply chains and cross-border/international trade. Many businesses immediately lost revenue, some lost inventory and assets, and the real estate sector saw a notable impact on investor confidence.

 

Dec_02_2025_flood2.png

 Picture from: Facebook, Royal Thai Army

 

After the water receded, residents returned home to assess the damage, but many families faced losses of both property and loved ones. The government has reported 140 fatalities, with more people still missing.

Economic recovery in the southern region, if no further flooding occurs, could take around one month, but restoring major infrastructure — such as roads, drainage systems, buildings, real estate markets, and investor confidence — may take several months to 1–3 years.

Krungsri Research has assessed the economic damage from the 2025 southern floods under three model scenarios.

Case

Damage [THB]

Damage [USD]

Damage (JPY)

Minimum case

11,800,000,000

330,000,000

49,000,000,000

Base case

19,700,000,000

550,000,000

82,000,000,000

Worst case

23,600,000,000

660,000,000

110,000,000,000

 

Note: Calculated approximate exchange rates (1 USD ≈ 35.7 THB, 1 JPY ≈ 0.24 THB).

 

This crisis not only caused economic losses but also claimed lives. We extend our deepest condolences to the families affected. The event underscores the need for businesses to strengthen disaster preparedness and supply chain resilience to ensure economic continuity. With coordinated recovery efforts, Hat Yai can rebuild stronger and regain its economic vitality.

 

Information from : : https://www.hfocus.org/content/2025/12/36242

Information from :  https://www.facebook.com/royalthaiarmyRTA

Information from :  https://www.krungsri.com/en/research/macroeconomic/research-flash/flash-20251125?utm_source=chatgpt.com

(Bee)