Demands surge for Thai structural change
In a significant move, Thailand has announced a comprehensive response to escalating global trade volatility, focusing on structural reforms, deregulation measures, and a national vision aimed at economic resilience and diversification.
The government's plan, unveiled at a recent National Press Council event in Bangkok, emphasizes the need for a rebalancing of Thailand’s economic growth drivers, traditionally reliant on exports and private consumption. This will be achieved through targeted reforms and strategic investments across key sectors such as transportation, education, healthcare, and energy.
A key aspect of the plan involves modernizing trade regulations and streamlining business processes to attract foreign direct investment. The World Bank has underscored the urgency of these reforms, highlighting the need for digital transformation and infrastructure investment to address sluggish growth and stagnation.
Deregulation measures are also a significant part of the plan. Proposed changes include amendments to the Foreign Business Act to ease restrictions on foreign ownership, initiatives such as digital wallet distributions and virtual banking licenses to stimulate household spending and increase digital financial inclusion, and efforts to modernize Thailand’s financial system.
The overarching vision for Thailand's economy is one of inclusive and sustainable growth, where increased employment, higher incomes, and domestic consumption form the foundation for long-term economic stability. The government aims to strengthen economic resilience and competitiveness by aligning foreign policy with economic transformation goals, through active global engagement and strategic partnerships.
Infrastructure development acceleration is a priority to support these ambitions, while managing the risks posed by political instability, which currently threatens the pace of reform and private investment.
Key figures in Thailand's business and political landscape have also weighed in on the issue. Mr. Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, advocated for an "omnibus law" approach to remove outdated regulations in Thailand. He urged the government to focus on Thailand's strengths in the Bio-Circular-Green (BCG) economy, particularly biodiversity, and to view China as a potential market for Thai bio-products.
Mr. Natthapong Ruengpanyawut, leader of the opposition People's Party, presented a strategic vision for inclusive green growth, focusing on grassroots investment, regional development, and renewable energy. His plan includes developing secondary cities, installing one million solar rooftops within four years, and expanding "economic forests" by one million rai through public-private partnerships.
Despite ongoing political challenges, Thailand remains optimistic about its future in the global trade landscape. Mr. Julapun, Deputy Finance Minister, expressed cautious optimism, hoping that Thailand would be subject to a maximum 10% import tariff rather than the proposed 36%.
However, concerns have been raised about Thailand's human capital deficit, with over half of Thais aged over 40 having limited education cited as an impediment to national development. Corruption has also been identified as a significant issue eroding Thailand's competitiveness.
In conclusion, Thailand's response to global trade volatility involves a blend of accelerated infrastructure projects, regulatory modernization, targeted sector investments, and policies aimed at fostering inclusive growth and economic diversification, all within a national framework designed to boost resilience and attract high-quality investments despite ongoing political challenges.
- The government's plan to modernize trade regulations and streamline business processes is part of a broader strategy to attract foreign direct investment in the finance, business, and general-news sectors, aiming to boost Thailand's economic resilience and competitiveness.
- In the pursuit of inclusive and sustainable growth, the government plans to reform Thailand’s financial system, including efforts to digitalize financial inclusion, which could foster growth in the business, politics, and general-news sectors, providing increased opportunities for domestic and foreign investment.
