Ex-PM Thaksin lays out 14-point plan to fix economy

Former prime minister Thaksin Shinawatra on Thursday proposed a 14-point strategy to improve Thailand’s sluggish economy in his first public speech since returning to Thailand after 17 years abroad.

He was speaking at a dinner talk event "Vision for Thailand 2024", hosted by Nation Group on August 22 at Siam Paragon Hall in Bangkok and attended by politicians, diplomats and investors.

"Today our economy cannot fall any lower, and we need to lift it up quickly,” the former premier said in his keynote speech.

“Management of various problems has been done without leadership. Both the government and private sectors have been working separately, each seeking their own success, forgetting about the country’s wellbeing and how we can develop for the common good,” he said.

Thaksin went on to say that Thailand is currently in a debt trap, and suggested that the government’s debt problems can be fixed by raising GDP. Meanwhile, household debts, over 90% of which are from housing and auto loans, can be addressed by discussions with financial institutes.

"When I was the Prime Minister, I invited the Thai Bankers’ Association to discuss the possibility of the government purchasing and managing debts, which had been done before. This allowed the public to manage and reduce their debts, similar to how debt reduction for businesses was handled."

The former PM then proposed a 14-point plan to improve the Thai economy to the new Prime Minister Paetongtarn Shinawatra, his daughter, and new members of the Cabinet. The plan can be summarised as follows:

1. Restructure household and business debts. The Finance Minister must discuss with the Thai Bankers’ Association how to resolve this issue, which is the top priority for the government.

2. Coordinate with the Bank of Thailand in setting economic policies, to ensure that monetary and fiscal policies align, while respecting the central bank’s independence.

3. Restructure Thai industries to focus on data centres and green energy, the latter helping to reduce electricity costs for the public. Thailand should also seek more technological support from China regarding electric vehicle manufacturing and telecom satellites, for which Thailand can serve as a launch station.

4. Boost SME’s competitiveness by promoting locally made products and intercepting influx of ultra-cheap imports.

5. Increase soft power promotion efforts, such as by organising a Muay Thai league with standardised training and regulations, as well as organise more e-sport and fashion show events.

6. Reform the agricultural sector, using research and development to boost the quality and make the prices more competitive. This will strengthen the country’s food stability and enable Thai products to compete in the global markets efficiently.

7. Enhance the tourism industry to generate more revenue, including expanding the runways of Suvarnabhumi Airport, improving airport facilities, and revising airport regulations to facilitate more private jets.

8. Promote investments in entertainment complexes. As casinos will only be accountable for 10% of the space in each complex, Thailand must attract investors in other related businesses, including theme parks and hotels. Thaksin reckoned that each complex in Bangkok will require up to 100 billion baht of investment and 50 billion baht in the provinces.

9. Start large-scale investment projects, such as flood and drought prevention initiatives, land reclamation projects, expansion of the metropolitan area, and development of marine tourist attractions. These projects must start within 3 years of this government, and will be continued if it wins the next general election.

10. Make Thailand a global financial hub, by inviting overseas banks to invest in Thailand and allowing Thai banks to establish branches in other countries. Thailand can also study the strategies of Dubai and Singapore and adapt to increase its financial strength.

11. Improve the measure to extend foreigners’ land lease to 99 years. Thaksin proposed that the land owner transfers the title deed to the Treasury Department, which will serve as a middleman to rent the land to foreigners. After 99 years, the land would automatically become state property, eliminating the concerns that foreigners could take away the country’s land.

The former premier also suggested additional regulations for the land to be rented to foreigners, such as prohibiting the use for agriculture, but allowing the building of affordable condominium projects targeting Thai buyers. The move would allow more Thais to conveniently own a home in which they can live in for 99 years.

12. Monetise the underground economy. Thai people spend around 3 trillion baht per year on online gambling, and are losing around 170 billion baht annually. This money can be taxed at 30%, and earmarked for funding overseas education for children, or hiring experts to teach at local schools.

13. Expand the Vayupak Funds. The state-owned securities funds should focus on purchasing stocks in the SET 50 and SET 100 lists that are undervalued.

14. Reduce the size of government agencies and reform the bureaucratic system. The outdated, cumbersome system can be enhanced by modern technology to improve speed and efficiency. Budgeting for government agencies should also be streamlined to eliminate unnecessary expenses.