Thailand’s Prime Minister Paetongtarn Shinawatra has highlighted several factors contributing to the country’s sluggish economic growth, with a focus on insufficient investment in emerging industries and a lack of preparation for future sectors. In her weekly “Empowering Thais” program on Sunday, the prime minister explained that Thailand’s GDP had only grown by 2.5% in the previous year due to a lack of substantial investment in new industries and workforce development.
Prime Minister Paetongtarn noted that while neighboring countries like Malaysia and Vietnam had taken proactive steps to prepare for future economic sectors, Thailand had not made similar advancements. She pointed to Malaysia’s focus on semiconductor manufacturing and Vietnam’s emphasis on coding skills as examples of how other nations have adapted to global economic shifts. “But Thailand has not been serious in these fields. We must upskill and reskill Thai workers,” she stressed.
In addition to workforce development, Paetongtarn also called on the private sector to play a more significant role in the country’s economic growth. She urged commercial banks to approve more loans to support small and medium-sized enterprises, which are key to driving local investment.
Addressing budgetary constraints, the prime minister acknowledged that a large portion of the national budget is allocated to fixed government expenditures, which limits the funds available for investment. However, she emphasized that her administration is working to reduce fixed payments and use the remaining funds to attract foreign investment.
Last year, Thailand saw foreign investment projects worth 1.13 trillion baht, the highest in a decade. In the coming year, global tech giants such as Google, TikTok, and Nvidia are expected to further invest in Thailand, which Paetongtarn sees as a positive development for the country’s economic future.
Paetongtarn reiterated her commitment to completing her first term in office with the goal of stimulating investment and fostering economic growth, expressing optimism that Thailand’s GDP growth could achieve exponential increases in the near future.
At the end of her address, she also urged collaboration with both the public and private sectors to address these challenges and work toward a more robust and competitive national economy.
