รัฐบาลไทย-ข่าวทำเนียบรัฐบาล-​PM reiterates Govt’s commitment to cooperate with private sector towards Thailand’s inclusive and sustainable future
วันพฤหัสบดีที่ 2 พฤศจิกายน 2566
​PM reiterates Govt’s commitment to cooperate with private sector towards Thailand’s inclusive and sustainable future
​PM reiterates Govt’s commitment to cooperate with private sector towards Thailand’s inclusive and sustainable future
November 1, 2023, at 18.30 hrs, at the Crystal Hall, The Athene Hotel Bangkok, Prime Minister and Minister of Finance Srettha Thavisin attended the Foreign Industrial Club Gala Dinner hosted by the Federation of Thai Industries (FTI), and delivered a keynote address on “Reformation of Thai Economy Amidst Polycrisis”. Government Spokesperson Chai Wacharonke disclosed gist of his keynote address as follows:
The Prime Minister expressed pleasure to meet with members of FTI, the private sector, representatives of foreign chambers of commerce, and the diplomatic corps who have attended the Gala Dinner, and to deliver the keynote address on “Reformation of Thai Economy Amidst Polycrisis”.
According to the Prime Minister, for several years now, Thailand has been facing rapid disruptive changes which could be called “polycrisis”, namely stagnant economy, global pandemic, advancing technology, international competitions, shifting global orders, and climate change. Also in the past 10 years, Thailand’s GDP grew only by 1.8% per year on average. Household debt also increased from 76% in 2012 to 91.6% in 2023, which was made worse by COVID-19.
For the past three quarters, the country’s exports have also seen contractions. This trend is due to factors such as high inflation and interest, high cost of raw materials and energy, as well as high international competition, especially for commodity and agricultural products. Thailand is, therefore, needs to be future-proofed in order to thrive in an increasingly competitive global economy and international conflicts, shifting global order, and climate crisis which is one of the most urgent threats that requires immediate action to mitigate its adverse effects on humanity.
The most urgent task of this government is to get the economy back on track and set Thailand up for success in the long run through reducing the cost of living, encouraging domestic spending, raising people’s quality of life, creating opportunities for Thai people, and expanding investments and businesses. The Prime Minister affirmed the government’s commitment to working hard to achieve this. For the “quick wins”, the government has already reduced the cost of energy, paused debt repayment for Thai farmers, and is in the process of pausing debt incurred during COVID-19 for SMEs.
Another important short-term action is the Digital Wallet policy, which would act as a trigger to revitalize the economy through increasing people’s purchasing power and raising production of goods, leading to employment and job creation, as well as the circulation and multiplication of economic activities. Another quick win is kickstarting tourism through the visa free scheme for tourists from China including Taiwan, Kazakhstan and India, as well as several other countries in the pipeline. In the future, through collaboration with the business sector, MICE industry will be promoted, placing Thailand at the heart of regional conference and exhibition venue.
Apart from the above quick wins, the government has also adopted medium- and long-term measures through such plans as: 1) using proactive economic diplomacy to open up doors to new markets for Thai products and services. Emphasis will also be on further development of special economic zones and economic corridors in all four regions of the country; 2) accelerating FTA negotiations as well as negotiate visa-free arrangements for Thai passport holders; 3) enhancing the ease of doing business and improving incentive package to attract foreign investments; 4) promoting new economic developments and industries, such as digital economy, high-tech industry, green industry and national security industry. Emphasis will be placed on research and development of technology and innovation to strengthen Thailand’s competitiveness; and 5) improving infrastructure such as airports to facilitate expanding international trade and tourism. Another exciting project in the pipeline is the land bridge project which will connect Andaman Sea to the Gulf of Thailand, reducing the commute time going through the Strait of Malacca and enhance Thailand’s logistic competitiveness. The Prime Minister’s vision is for Thailand to become the regional hub for commerce and logistics within this decade.
Additionally, the Prime Minister stressed the key part of his government’s strategy, which is to transform Thailand from a manufacturer of low-profit commodities and primary agriculture products, into a high-value technology and innovation-driven economy. To achieve this, the country needs to integrate technology to improve the overall productivity for high-value products and services. Example of future S-curve industries that the government plans to support are as follows:
EV Industry: The target is to establish a comprehensive EV supply chain that includes electric car, electric bike, electric bus, parts, and components. The government will implement measures to enhance business environment to attract investors, provide privileges in the special economic free zone, establish center for battery testing, design academic course syllabus for skilled labor, and expand infrastructure for charging stations. The goal is to turn Thailand into the comprehensive supply chain EV manufacturing hub in ASEAN.
Smart Electronics Industry: The government plans to upgrade upstream investment through new technology that is world class and up-to-date; upskill and reskill Thai workforce to build up smart developers; and to provide optimum ecosystem to produce products such as microchips, micro-electronics, electronics for EV, and advance printed circuit board.
Robotics and Automation Industry: The government will provide investment promotion for manufacturing and services in robotics, automation, system integration, and human resources. The targeted products are automated storage and retrieval system, autonomous mobile robots and Collaborative Robot (COBOT) that could work with human being.
Medical and Wellness Industry: The aim is to make Thailand as medical and wellness hub, not just for the region, but for the world. The government also plans to expand the research and development of medical textile and consumable medical devices.
Processed Food: In ensuring food security and increasing the value of our food exports, Thailand aims to enhance production of food and agricultural products by leveraging innovation and technology. This includes comprehensive soil assessment, water management, and precision farming. The government’s target is to increase income for Thai farmers by 3-fold within the next 4 years. Acceleration of the market for innovative food of the future such as plant-based food with high protein and meat-free products is also planned.
Another global issue that Thailand needs to prepare for in order to future-proof our country is the increasing international conflicts and shifting global orders. The Prime Minister affirmed the government’s policy to pursue peace and inclusion. Thailand will maintain good relations with all members of the international community. Ever since the Prime Minister assumed office, the government has been proactively reaching out and strengthening relationships with major international partners in all regions. It is his belief that Thailand’s neutral and inclusive foreign policy will support the country’s vision of becoming the region’s commerce and logistic hub.
The Prime Minister also underscored the importance to take care of the environment and planet. Thailand is committed in its efforts to achieve carbon neutrality by 2050 and net-zero by 2065. The country is both doing the “reduction” by reducing unnecessary activity and reducing fossil energy, and pursuing “compensation” by increasing forest areas and investing in renewable energy. The Prime Minister was also pleased with Thailand’s good progress. In the past year the country was able to reduce greenhouse gas emissions by 15% in the energy and transportation sectors from benchmark, in accordance with the target. This would be an opportunity for Thailand and its private sector to move towards sustainability and make this the country’s competitive advantage.
In closing, the Prime Minister reiterated that for his government, the current global disruptive challenges are a great opportunity for both the public and private sectors to walk hand-in-hand towards a more inclusive and sustainable future, and expressed belief that all of the participants here are key players who can support Thailand’s economic development in that regard.