Prime Minister Paetongtarn Shinawatra has directed three economic ministries to develop strategies to revitalise the country's capacity utilisation, which has slumped despite an increase in industrial investment and exports.
According to government spokesman Jirayu Houngsub, the premier on Tuesday issued this directive during the seventh mobile cabinet meeting of 2025, held in Songkhla.
On Monday, the National Economic and Social Development Council reported GDP growth of 2.5% in 2024 and it projects the figure to rise to 2.8% this year.
Last year the manufacturing sector contracted by 0.5%, compared with a 2.7% decline in 2023, while the average capacity utilisation rate was 58.4%, dipping from 59.6% in 2023, according to the planning unit.
"Given these figures, the prime minister instructed the Industry, Finance and Commerce ministries to urgently devise measures to address this issue," said Mr Jirayu.
He said Ms Paetongtarn also visited Thai Union Group yesterday, a major exporter of seafood products. The company asked the Fisheries Department to promote shrimp breeding R&D to improve the competitiveness of Thailand's shrimp farming industry, in a bid to reclaim its position as one of the world's leading shrimp exporters.
Regarding tourism development, the premier said Songkhla has great potential, particularly for cruises. She instructed the Transport Ministry to expedite feasibility studies on the construction of a cruise terminal and urged the Tourism and Sports Ministry to collaborate with local authorities on developing key tourist attractions and organising tourism activities in areas such as Songkhla Old Town, Hat Yai and other local attractions.
Ms Paetongtarn also told the governor of Songkhla to take the lead in coordinating with relevant agencies on this development initiative.
In separate news, the prime minister told the Finance Ministry and the Bank of Thailand to hold discussions over small and medium-sized enterprises (SMEs) being blocked from accessing credit, leaving them short of funding to improve and expand their businesses, even though SMEs account for 75% of all entrepreneurs nationwide.
She said over the past decade there has been no improvement in the SME sector, though greater access to credit would enable these business owners to secure the necessary capital for development.
"I would like the Finance Ministry and the central bank to coordinate closely to address this issue," said Ms Paetongtarn.
Thailand's GDP growth lags other Southeast Asian nations, and the premier said the Finance Ministry set a target of 3% for this year, with a goal to push it to 3.5%. However, achieving this goal requires effort from all sectors, she said.
"The key factor is attracting investment into the country. The Thai economy has struggled for quite some time, and we need to drive growth across all sectors," said Ms Paetongtarn.
"Focusing on just one area alone won't create a miracle. The private sector must also play a role in supporting this effort."