Economic reformation in action: Thailand open for foreign investments amid polycrisis

Prime Minister Srettha Thavisin declared Thailand’s openness to foreign investments and readiness to collaborate with the private sector for an economic reformation to create an inclusive and sustainable future. Speaking on Wednesday at the Foreign Industrial Club Gala Dinner, the Thai PM’s speech, titled Reformation of Thai Economy Amidst Polycrisis, was summarised by government spokesperson Chai Wacharonke.

The 61 year old Thai PM, who also doubles up as the government’s Finance Minister, highlighted the meagre 1.8% average annual growth in Thailand’s Gross Domestic Product (GDP) over the past decade. Along with this, household debt saw an increase from 76% in 2012 to 91.6% this year, a situation compounded by the Covid-19 pandemic.

Additionally, the country’s exports faced a decline throughout the last three quarters due to high inflation, increased interest, and the escalating cost of raw materials and energy. International competition, particularly in the commodity and agricultural sectors, also contributed to this downturn.

To compete in the rapidly evolving global economy, amidst international disputes and a looming climate crisis, Thailand needs to future-proof its economy. The government’s primary objective is to reboot the economy and equip the nation for future prosperity by reducing living costs, promoting domestic spending, and broadening investment and business opportunities.

The government is committed to achieving these goals quickly by lowering energy costs and introducing a debt repayment suspension for farmers. Other measures include implementing the digital wallet policy and utilising diplomacy to access new markets for Thai products and services, reported Bangkok Post.

The government’s aspirations extend to transforming Thailand from a producer of low-profit commodities and agricultural products to an economy driven by high value and innovation. This requires technology integration to enhance overall productivity for high-value products and services.

The government plans to support this economic reformation by developing the S-curve industry, including the electric vehicle industry. A comprehensive EV supply chain for electric cars, bikes, buses, and their parts and components is on the government’s agenda, said PM Srettha.

“Thailand is now open to investments and is ready to work fully with all sides.”

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