Thailand sees record 1.13 trillion baht foreign investment boost
Prime Minister Paetongtarn Shinawatra expressed optimism about Thailand’s economic prospects, highlighting significant foreign investment, which reached over 1.13 trillion baht last year, the highest in a decade.
In a monthly Empowering Thais TV segment aired by the National Broadcasting Services of Thailand, the premier shares her optimism in regards to economic trajectory, despite last year’s 2.5% growth.
“We will work to the best of our ability to continue pushing for more investment. But of course, I will have to stay till the end of my term to ensure this happens,”
The 38 year old Thai premier emphasised that political stability is crucial for maintaining foreign investor confidence, suggesting that political disruptions impede the government’s efforts to attract investment.
The Office of the National Economic and Social Development Council previously reported that Thailand’s gross domestic product (GDP) grew by only 2.5% last year, one of the lowest rates in ASEAN.
This weak performance was partly due to government policies from early 2023, before the Pheu Thai Party-led government assumed office, she noted.
“Last year’s 2.5% growth was up from the 2.0% growth recorded in 2023, and the result of the Pheu Thai government’s first full year of work.”
Pheu Thai successes
She pointed out that the 3.2% growth in the last quarter of the previous year signalled the Pheu Thai administration’s successful implementation of policies, such as free visas and economic stimulation through investment encouragement.
In the five to six months since her administration took office, the Bangkok-born PM mentioned that the government has been exercising fiscal prudence to allocate more funds for economic stimulation.
Thailand’s readiness for industries like semiconductors and electric vehicles (EVs)was hampered by factors such as a shortage of skilled workers in the past decade, she explained. Despite this, the PM highlighted the growth potential of the semiconductor and EV industries, noting that countries like Malaysia and Vietnam have been preparing for their emergence.
In 2023, Google, TikTok, and NVIDIA plan to further invest in Thailand, while the Board of Investment of Thailand confirmed last year’s foreign investments of over 1.13 trillion baht, the highest in a decade.
In the electric vehicle sector, Chinese manufacturers have set up a factory in Thailand, and Japanese car makers are shifting from solely producing combustion vehicles to hybrid and electric models. Given this, the 38 year old PM expresses the government’s commitment to maintaining an upwards trajectory for Thailand’s economy.
“This is just the beginning. The government will definitely continue pushing for more for the sake of the country’s economic growth. The higher GDP, the more money people will have in their pocket.
“Thailand’s GDP had not grown for a long time and it has just begun picking up. Personally, I want to make it take a leap — an ambition which requires cooperation of all sides.”
PM Paetongtarn also mentioned plans to enhance commercial banks’ confidence in lending more to small- and medium-sized enterprises, which make up 75% of businesses in the country, reported Bangkok Post.
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