Thaksin shares vision for Thai economy with global business leaders
Corporate tax cuts and infrastructure upgrades are needed to boost foreign investment that will ensure Thailand’s future growth, says former PM
Former prime minister Thaksin Shinawatra shared his thoughts on Thailand’s economic opportunities and challenges at the Forbes Global CEO Conference in Bangkok on Thursday.
Prime Minister Paetongtarn Shinawatra, Thaksin’s daughter, spoke earlier in the day at the same conference, held at the Ritz Carlton.
Thaksin emphasised the critical role of tax policy and investment during his discussion with Steve Forbes, chair and editor-in-chief of Forbes Media, in front of an audience of over 400 business leaders from around the world.
The former PM highlighted tax reduction as a key tool for enhancing competitiveness, noting that Thailand’s corporate tax rate is still higher than that of neighbouring countries.
“If we want to gain more, we must ask for less,” he remarked. Thaksin cited tax cuts during his sister Yingluck Shinawatra’s administration which he said had increased overall tax revenue and stimulated consumer spending.
He suggested that Thailand should gradually cut corporate tax to encourage foreign investment while simultaneously increasing the rate of VAT. He also proposed introducing a negative income tax (NIT) system, which would use tax revenue to provide payments to low-income workers to minimise the impact on the majority.
He said cutting tax would also empower small businesses and local entrepreneurs, particularly in the creative economy and soft power sectors, where Thailand is strong.
“Thailand has immense potential in the cultural, service, and creative industries. With proper support, the country can undoubtedly compete on the global stage,” he said.
To attract investment in technology, Thaksin suggested the government should focus on building infrastructure to lure international companies. He highlighted the development of data centres and smart grids to increase the share of clean energy and reduce energy costs.
“Electricity prices in Thailand remain excessively high. Reducing these costs would make the country more appealing as a regional technology hub,” he said.
On the potential US-China trade war, Thaksin said it would also present significant opportunities for Thailand, as manufacturers seek to relocate operations. He cited the country’s abundant resources, including labour, electricity, and land. With added tax incentives, Thailand could become a top choice for investors, he said.
Regarding Thailand’s push to join BRICS, Thaksin said the bloc’s emerging economies could help balance the global financial system. He forecast that a new international payment system independent of the US dollar or SWIFT would emerge over the next five years, utilising cryptocurrencies or collaboratively designed financial mechanisms.
He also called for reform of APEC and ASEAN to improve their efficiency in achieving agreements and promoting international cooperation, with a focus on supporting small countries and emerging economies.
"If these forums cannot develop clear and practical strategies, their meetings will yield no meaningful outcomes for global economic development," he said.
Thaksin concluded by outlining Thailand’s 10-year vision, led by two main goals: leveraging soft power including tourism and culture to generate income and positioning Thailand as a regional technology hub. The latter entails attracting AI and semiconductor industries and establishing a regional digital hub with data centres, he said.
“The future of Thailand depends on the decisions we make today. If we dare to invest in new ideas and create an environment conducive to investment, we can elevate Thailand’s economy to become a global leader,” he said.
