Driving Thailand’s economy into the high-tech fast lane
In a bid to supercharge Thailand’s sputtering economy, Industry Minister Akanat Promphan is rallying the manufacturing sector to shift gears and embrace high-tech innovation.
With aspirations to increase GDP growth by 1% annually, Akanat is touting cutting-edge products as the next big play, given the triple threat of tech disruptions, geopolitical spats, and looming climate change.
Since the pandemic, Thailand’s economic engine has been barely idling, and the pressure is on to find a jump-start. The problem? A tight state budget, hemmed in by soaring public debt that hit a hefty 64% by October 2024, according to the Fiscal Policy Office.
Akanat is optimistic that salvation lies in the development of S-curve industries. Top of the list are new-generation cars and smart electronics, the perfect partners for the government’s ambitious goal of nudging GDP growth to 3% in 2025.
The third quarter of last year saw GDP tick upwards to 3%, a step up from 2.2% in the previous quarter, thanks largely to tourism and a buoyant construction sector. But while manufacturing contributed, its growth dipped from 1.9% to 1.2%.
He’s fired up about securing clean energy to woo foreign investors eyeing data centres, cloud services, and semiconductor ventures.
“Lower electricity bills mean greater competitiveness.”
Akanat underscored the importance of energy cost management to rev up economic growth.
In the automotive realm, he’s anticipating an influx of investment from Japanese car giants. Toyota Motor Corp’s President Akio Toyoda has already pledged a whopping 55 billion baht to get hybrid cars rolling in Thailand.
This pledge arrives amid a dry spell for domestic car sales, stymied by banks’ and car finance companies’ tight loan policies, fuelled by household debt woes.
The government is banking on Toyota’s bold move to spark a domino effect, boosting confidence among other Japanese automakers in the kingdom, reported Bangkok Post.
It’s clear: the road to economic revival is paved with high-tech ambitions, and Thailand’s manufacturing sector is being nudged into pole position.
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