Grab platform contributes 1% of Thailand’s GDP: study

Digital platforms are playing a crucial role in Thailand's economic development, with a single platform contributing around 1% of the country's GDP, according to a new study released on Tuesday by the Thailand Development Research Institute (TDRI).

The study, which focused on ride-hailing and delivery platform Grab, found that Grab operations generated 179 billion baht in 2023, while creating more than 280,000 new jobs and generating household income of roughly 24 billion baht.

TDRI research fellow Nonarit Bisonyabut, who led the study, explained that Grab was selected due to its diverse services spanning transport, food delivery and logistics – which made it an ideal subject for understanding the broader impact of digital platforms.

"These platforms create both direct and indirect benefits throughout Thailand's economy," Nonarit said as he presented the findings. "Their influence extends well beyond their immediate operations."

Nonarit Bisonyabut

The study highlights how digital platforms stimulate growth across multiple sectors, including tourism, automotive, energy, communications, financial services, food and retail by fostering wide-ranging economic connections.

However, the growth of digital platforms also poses dangers for workforce development, according to Associate Professor Dr Danuvas Sagarik from the National Institute of Development Administration (NIDA).

"The gig economy is expanding rapidly, particularly among Gen Y and Gen Z workers who value flexibility and independence," said Dr Danuvas. "Globally, we expect to see 170 million new positions created in future, but simultaneously, around 92 million traditional roles may disappear."

Danuvas urged the government to implement policies to address these labour market shifts, including educational curriculum reform, upskilling and reskilling programmes, and protections for gig workers to ensure job security and adequate welfare provisions.

Regulatory challenges were also covered in the TDRI study, with researchers urging policymakers to ensure consumers are protected from online scams and other dangers.

They highlighted a recently implemented payment delay mechanism allowing consumers to inspect goods before finalising payment, with a seven-day window for returns if products don't match descriptions.System like these help build trust between platforms, consumers and small business operators, researchers said.
 

The TDRI report offered three key recommendations for government action:

1. Promoting digital platforms to benefit the public and reduce inequality, including by delivering government services

2. Establishing balanced regulatory frameworks that protect users while encouraging fair competition

3. Implementing support measures for gig workers and micro, small and medium enterprises (MSMEs) to ensure sustainable growth

"The platform economy is inevitable," Nonarit said. "With effective collaboration between public and private sectors, Thailand can not only enhance its competitiveness but also develop an economic system that is both sustainable and equitable for all stakeholders."