PM address the digital wallet project to boost the economy by 1.2%-1.8% due to positive spillover effects extending into the following year.
May 29, 2024, at 10.45 hrs (Hong Kong local time), at the Grand Ballroom, Four Seasons, Hong Kong SAR, Prime Minister Srettha Thavisin attended the UBS Asian Investment Conference (AIC) 2024. The event brought together more than 2,000 global institutional investors and individuals. As well as top executives and entrepreneurs from 300 of the most dynamic private and public companies in Asia Pacific, to share and exchange visions and ideas on investments and future innovations.
The PM delivered a keynote address on “Wisdom: An eye on the past, a view to the future” which resonates deeply with the journey of Thailand and its strategic vision for the future.
Wisdom, derived from Thailand’s past experiences, guides the country in addressing contemporary challenges and shaping the future. In Thailand, history of resilience and adaptability has provided the country with the foundation, to tackle today’s economic complexities, and seize growth opportunities. The PM shared with the participants the government’s economic policies, and its vision for the future of Thailand.
Main objective is to create robust economic policies
On the policy side, the government’s main objective is to create robust economic policies that drive growth, foster innovation, and ensure sustainability.
The approach targets fiscal stability, regulatory reforms, and strategic investments in key sectors. For example, tax codes are revised to attract more investment,
streamline business processes, and remove bureaucratic hurdles to foster business innovation and entrepreneurship. Initiatives include simplifying work permits for foreign workers, developing a Super License system for target sectors, reducing import-export restrictions, and promoting clean energy.
These efforts aim to boost business confidence and enhance Thailand’s global competitiveness.
An important fiscal policy the Prime Minister has emphasized is the government’s stimulus package through the Digital Wallet scheme.
Must do: digital wallet scheme
Thailand has reported a GDP growth of 1.5% year-over-year for the first quarter of 2024. The full-year forecast for 2024 is expected to be between 2-3%. To enhance this growth, the economy must be shifted into high gear.
The Thai government’s progressive stimulus package will put 10,000 baht ($275) into the hands of 50 million people. This initiative will inject approximately 500 billion baht into the Thai economy. The digital wallet project is expected to boost the economy by 1.2%-1.8% due to positive spillover effects extending into the following year.
With this program, the money will go direct into local communities throughout the country. In the long-run, the policy will lay the foundation for a nationwide blockchain-based financial payment system, with rigorous financial discipline and streamlined foreign investment processes.
Accelerating FTA negotiations
In terms of trade policy, the government will position Thailand as an integral partner for the global supply chains. Apart from reducing import-export restrictions, FTA negotiations with key economies will be accelerat. The Prime Minister announced that the Thai-EU FTA negotiations have progressed well, and is expect to be conclud and signed by 2025.
For businesses, the government seeks to build the new engine of growth, driven by innovation and creativity. Future-proof industries such as the digital economy; smart electronics, particularly the upstream semiconductor; aerospace and defense; advanc agriculture and biotechnology; as well as climate-resilient solutions, will be fully promot and support.
Improvement ease of doing business
The government is also streamlining business process to improve ease of doing business through regulatory guillotine and digitization of government services. As well as an offering attractive package for foreign investments, establishing new special economic zones nationwide, and investing in large-scale infrastructure projects such as new airports and the Landbridge.
For human development, the government will ensure that the Thai workforce is ready for the future,
and will provide them with education, skills,
and lifelong learning. The plan includes strengthening education system to prioritize Science, Technology, Engineering, and Math (STEM) subjects
from a young age, as well as vocational reskilling programs for existing workers. To fill any remaining talent gaps in the short and medium term,
the Government also plans to attract international talent by streamlining work permit and visa processes, and offering competitive incentives.
The Thai government is fully committ to pursuing a sustainable
and inclusive path for growth through reviving up green economy and energy transition,
while doubling the efforts to achieve carbon neutrality by 2050 and net-zero by 2065.
Become a leading clean energy producer by 2040
By 2040, Thailand will become a leading clean energy producer in the region,
with 50% of all electricity in Thailand coming from renewable sources. The PM took the opportunity to invite anyone with the appetite to invest,
or with expertise the areas of renewable energy, hydrogen technology,
energy storage, carbon capture and storage, and sustainability finance, to take a serious look at Thailand.
This year, the government also plans to issue 30 billion baht in sovereign sustainability-linked bonds,
and would welcome investors to participate as part of its efforts to realize the country’s sustainability and climate commitments.
The government also takes financial and fiscal sustainability seriously,
and will maintain public debt levels and fiscal deficits within manageable limits. With ample international reserves, Thailand will be able to support these growth initiatives and maintain economic stability.
“IGNITE THAILAND”, the future of Thailand
The PM also mentioned “IGNITE THAILAND”, the vision for the future of Thailand,
which will leverage strengths to propel the country into a regional hub across 8 key sectors, namely,
Aviation Hub (which is not only upgrade our existing airport but also construct additional airports to provide more choices of transportation),
Tourism Hub (next year will be the biggest year of tourism in Thailand. we are in discussion with organizers of world class events such as Art Basel,
Formula 1, and many more.), Wellness and Medical Hub, Agriculture and Food Hub, Logistics Hub, Future Mobility Hub, Digital Economy Hub, and Financial Hub.
The PM has announced his vision to make Thailand “the place to be”
for the regional head offices of financial firms which Thailand is already well-known for where Thailand has the “right to win”. With robust Government support and investment, combined with Thailand’s potential, the PM expressed belief that this vision is within reach.
The PM extended an invitation to global partners and investors, to join Thailand in this journey of transformation. Thailand offers a fertile environment for innovation and growth. Together, a future that is prosperous, sustainable, and inclusive can be creat.
In conclusion, the Prime Minister affirmed his personal commitment
and encouraged global partners to engage with Thailand to explore how to work together to achieve mutual success. He emphasized that Thailand’s door is always open.
Related News :PM to attend UBS Asian Investment Conference (AIC) in Hong Kong during May 28-29
