[International] Thailand Aims to Become High-Income Country in 12 Years, Finance Minister Proposes New Economic Strategy
RtiTalk 小編6d ago
The Taiwan-Thailand Times reported today (29th) that the Thai government is striving to escape the middle-income trap. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas has proposed a new round of economic development strategies, aiming to shorten the time required for Thailand to become a high-income country from the originally estimated 20 years to 12 years.
Ekniti stated at the Bangkok Post's 80th-anniversary forum that Thailand has long faced structural problems such as declining competitiveness and slowing private investment. Globally, it is affected by geopolitics, trade wars, digitalization, and the rapid development of artificial intelligence. The models that previously supported economic growth are no longer adequate for the new situation, thus necessitating a readjustment of the national economic strategy.
He recalled Thailand's "golden era" in the late 1980s and early 1990s, when the government, through joint public-private committees and corporate collaboration, seized opportunities from Japanese and Western companies relocating their production bases. It also accelerated the promotion of major infrastructure projects such as Laem Chabang Port, the Map Ta Phut petrochemical industry, roads, and airports, gradually transforming Thailand from an agricultural economy to an industrialized one.
Facing a new round of global industrial restructuring, Ekniti likened the government's planned economic division of labor to a "football team." Private enterprises are like the "forwards," responsible for investing in and promoting future target industries such as smart agriculture, food processing, electronics, automotive, digital and artificial intelligence, and medical tourism. The government, like the "midfield," removes investment obstacles through public-private partnership mechanisms to help enterprises implement their investment plans.
In the first half of this year, over 530 billion Thai baht (NT$505.7 billion) in actual investment funds entered the Thai economic system. The government is also accelerating the processing of investment-related regulations and procedures through Thailand FastPass and promoting the Direct PPA mechanism for enterprises to directly purchase green electricity, in response to the demand for clean energy from multinational corporations.
In terms of talent, the government is promoting the Skill Bridge program to enhance the artificial intelligence and digital capabilities of the workforce. In the past six months, over 80,000 people have received relevant skills training, aiming to improve the quality of the workforce in sync with new industry investments.
Regarding the economic "defense," Ekniti emphasized the importance of financial and fiscal stability. Currently, Thailand's international reserves, including forward foreign exchange transaction positions, are approximately $300 billion USD, sufficient to cover about 10 months of imports. The scale of short-term foreign debt is also significantly lower than foreign exchange reserves. He believes that a stable financial and fiscal foundation is an important condition for coping with global economic shocks.
The government's next phase objective is to increase the ratio of total public and private sector investment to GDP from the current approximately 23% to 30% within four years. Ekniti pointed out that if Thailand can simultaneously expand infrastructure investment, accelerate talent cultivation, and reform regulations that hinder industrial development, it will have the opportunity to enhance national competitiveness.
According to government plans, the time for Thailand to cross the middle-income trap and enter the ranks of high-income countries is expected to be shortened from the original estimate of about 20 years to 12 years. Ekniti stated that the government hopes to establish the foundation for the next phase of long-term growth through a new round of public-private partnerships, future industry investments, and economic structural reforms. (Editor: Liu Xianghua)
Source Link: https://www.rti.org.tw/news?uid=3&pid=229034
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