The government has committed to transforming global economic uncertainty into investment opportunities for the country.
Speaking at the "Ignite Thailand: Invest in Endless Opportunities" event hosted by the Board of Investment (BoI) on Wednesday, Prime Minister Paetongtarn Shinawatra emphasised the government aims to build confidence in domestic investments and establish the nation as a premier investment destination.
PREMIER'S PLEDGES
"The government seeks to create endless investment opportunities that are stable and generate significant gains," she said.
Government investments in infrastructure projects include high -speed rail, double-track railway systems, and the third phase of Laem Chabang Port, worth 150 billion baht.
There are also plans to initiate the Land Bridge project, which has drawn interest from China, said Ms Paetongtarn.
"The government wants to establish Thailand as a strategic investment hub and the logistics centre of the region," she said.
The country is also focused on investments in digital technology, particularly semiconductors and data centres, as Thailand has a skilled workforce ready to support these industries, said Ms Paetongtarn.
She also mentioned the government's One Tambon, One Scholarship programme, which aims to send Thai students abroad to study in fields in which Thailand lacks sufficient expertise. The government plans to develop 80,000 professionals in these critical fields.
INVESTMENT IS KEY
Finance Minister Pichai Chunhavajira said at the same event Thailand's GDP is expected to comfortably exceed 3% this year, driven by strong investment growth and the country's potential to become a key player in the global supply chain.
Thailand's long-term growth goal is 3-3.5%, which is the potential growth rate typical for this region, said Mr Pichai.
He said investment is an essential part of Thai economic growth this year, as last year investment promotion applications submitted to the BoI reached US$30 billion, the highest level in a decade.
Investors who already applied for incentives now want to accelerate their investments over the next three years, said Mr Pichai.
He attributed the investors' urgency in expediting investments to global supply chain disruptions caused by geopolitical issues.
Thailand is well-positioned geographically, surrounded by a regional market of about 700 million people, said Mr Pichai, adding it serves as a strategic link between the Pacific and Indian oceans, both of which are rich in natural resources and represent large consumer markets.
He said the government is considering the Land Bridge project to connect both oceans, facilitating trade and integrating Thailand's rail system from north to south.
Moreover, Thailand has a lower risk of natural disasters than many other countries, reflected in its low insurance rates. Thailand is also recognised as a conflict-free zone, adding to its investment appeal, said Mr Pichai.
He also highlighted Thailand's stable power supply, with an electricity overcapacity of around 10,000 megawatts.
Despite lower GDP growth in recent years, Thailand has maintained economic stability, with a surplus account and foreign reserves exceeding $200 billion -- three times the level of the country's short-term debt.
Liquidity of 4 trillion baht is available in the financial system, while the country's banking sector remains robust, said Mr Pichai.
Regarding the workforce, Thailand has a population of about 70 million. Although the country is an ageing society, it still has a labour force of 40 million.
The government also has a policy to import skilled workers in areas where labour shortages exist, as well as developing human resources in high-demand fields such as bioengineering and digital technology, he said.
Mr Pichai said the government has been working to improve the ease of doing business in the country. The first phase involves establishing a One-Stop Service to facilitate investors.
In the next step, the government plans to review relevant laws and may eliminate unnecessary regulations, he said.
EXPORT AND BAHT OUTLOOK
Mr Pichai said exports are projected to grow 4% this year after expanding by 5% last year.
This growth will be driven by efforts to expand exports into new markets and working to reduce trade obstacles, he said.
"We need to analyse which sectors we haven't explored and push for expansion in those areas, while addressing issues that hinder exports, particularly those in importing countries," said Mr Pichai.
"We will closely coordinate between Thai exporters and importing nations to resolve these challenges."
Regarding the exchange rate, he said a weaker baht benefits exports, but from a regulatory perspective, maintaining currency stability is crucial.
"If the baht weakens in a stable manner, it will be beneficial, and that is an outcome everyone wants," said Mr Pichai.
Given the slowdown in the manufacturing production index, which may impact exports, he said the issue was examined and the decline was due to imported goods being re-exported without going through domestic manufacturing processes.
"We are assessing which goods are involved, evaluating their quality, and determining whether their entry has minimised domestic production," said Mr Pichai.
"We will continue to monitor this issue to ensure it does not negatively affect local manufacturing."
GDP GROWTH
Deputy government spokeswoman Sasikarn Wattanachan said GDP growth in the first quarter this year is expected to exceed 3.2%, the rate recorded in the fourth quarter of 2024.
The growth will be supported by the tourism sector, she said.
From January to March 9 this year, Thailand welcomed 7.66 million foreign arrivals, generating 375 billion baht in revenue.
The top five source markets for foreign arrivals during this period were China, Malaysia, Russia, South Korea and India.
Chinese tourist arrivals topped the list for this period, tallying 1.12 million.