Thailand ramps up support for startups with AI, FinTech, Green Tech

 

Thailand's National Innovation Agency (NIA) is advancing its Co-Maker Space initiative to strengthen the country's startup ecosystem, focusing on artificial intelligence (AI), green technology and financial technology startups as the nation looks ahead to 2025. 

 

Krithpaka Boonfueng, NIA executive director, revealed at a media roundtable on Tuesday that Thailand's startup landscape has shown remarkable resilience, with a cumulative growth of 3.3% since 2021. 

 

"2025 will be a year of challenges for startups, influenced by economic volatility, shifting consumer behaviours, and emerging waves of technology," she said.

 

The Thai startup ecosystem currently comprises approximately 2,100 ventures, with 700 at the pre-seed stage and 1,400 in the growth or go-to-market phase. The country ranks 54th globally and fourth in Southeast Asia on the Global Startup Ecosystem Index, trailing behind Singapore, Indonesia, and Malaysia.

 

Krithpaka Boonfueng

 

“We've observed a 4% increase in seed-round funding compared to the previous year, particularly in the FinTech sector, which captured 26% of total seed investments in 2024," Krithpaka noted.
 

 

The NIA has identified three primary technology sectors with high growth potential:

1. Artificial Intelligence: With particular emphasis on Generative AI and AI Agentic Systems. "More than 70% of executives and investors are confident that AI Agents will become crucial for organisational operations, from problem-solving to service delivery," Krithpaka said.

 

2. Green Technology: The global environmental technology market is projected to grow by nearly 25% annually over the next decade. This includes clean technology (CleanTech) and Climate Tech solutions addressing environmental challenges.

 

3.Financial Technology: FinTech continues to lead investment attraction in Southeast Asia, with blockchain technology following closely at 20% of seed funding.

 

 

To strengthen the country's startup ecosystem, the government has accelerated infrastructure development. 

 

Thailand has positioned itself as an emerging digital economy hub in the region, with data centre capacity growing by 54% over the past three years – ranking third in ASEAN. The country is expected to attract approximately 260 billion baht in data centre investments between 2024 and 2027.

 

According to Krithpaka, the NIA has established a robust support framework centered around the "Groom-Grant-Growth-Global" concept. 

 

This initiative encompasses Co-Maker Space facilities designed for technology testing and product development, alongside incubation programs that provide vital funding and training for emerging businesses. 

 

Additionally, the agency has launched corporate co-funding initiatives in collaboration with the Thai Venture Capital Association (TVCA), offering startups up to 10 million baht. 

 

The agency has also fostered connections with global startup hubs in regions such as Hong Kong, Japan, South Korea, Germany, and the Nordic countries, enhancing opportunities for collaboration and growth.

 

 

Despite the positive outlook, Krithpaka highlighted several challenges.

 

"We must accelerate human capital development to support market growth and establish long-term policy confidence to attract investment and foster sustainable ecosystem development," she noted. 

 

The NIA director emphasised that success in the rapidly evolving technological landscape requires adaptability. 

 

"Building systems that can quickly adjust is like creating a strong foundation for business. This flexibility enables startups to grow and expand their operations continuously," she concluded.

 

The agency continues to work closely with both public and private sectors to create opportunities for Thai startups to access international markets and develop sustainable business models aligned with global ESG principles.