Green initiatives needed for Thailand’s sustainable growth, say experts

Jirayut Srupsrisopa, founder and group CEO of Bitkub Capital Group Holdings, said Thailand needs a digital transition and green economy to overcome middle income trap and ensure the country’s prosperity.

Thailand needs to foster a strong economic foundation, restore confidence among Stock Exchange of Thailand investors, train the younger generation to follow the right course and fix debt issues, he said.

He stressed that Thailand should pay attention to both physical and digital trade to stimulate the economy, saying that 44% of China’s gross domestic product (GDP) came from the digital economy.

He added that the country should keep up with green initiatives to enable entrepreneurs to cope with trade barriers, such as carbon tax on carbon emission of products.

Without the green initiatives, the private companies will no longer be able to export in the next six years, or be able to get loans from banks, he warned.

“We should focus on the blue ocean for the next hubs like network state and digital community,” he said.

He added that Thailand should pay attention to the creative economy, silver economy, artificial intelligence, reskilling and upskilling.

To tackle Thai politics which focused on local issues and lack of communication, Jirayut advised the government to understand Thailand’s direction before launching strategies, and stay connected to the world to solve domestic issues.

He said the Digital Economy Framework Agreement will boost ASEAN’s potential in the digital economy, including cross-border payment, free-flow of goods and services and talent mobility. 

The agreement to happen next year is expected to attract US$2 trillion (66.17 trillion baht) to ASEAN, he said, adding that the agreement was 50% ready.

“Globalisation is a thing of the past. We need to move towards regionalisation and make friends to make sure that ASEAN has our collective voice on the global stage,” he said.

Inclusive growth

People’s Party MP Sirikanya Tansakun said Thailand should foster economic growth along with ensuring people’s inclusive role. 

To transition from internal combustion engine vehicles to electric vehicles, workers should upskill and reskill to make them capable of working for EVs, which are totally different, she said.

She said Thailand should have a clear plan to foster green growth to meet the mega-trend of world sustainability.

“Our future economy has to rely heavily on this green growth, but we have to think about how to attract foreign direct investment to get the benefit of advanced technology,” she said.

Sirikanya said the People's Party has policies to stimulate the economy along with improving quality of life, such as access to clean air, tap water and smart cities, which would result in job creation and new industries. 

We need a new growth engine that would create benefits when all countries in the world will go green, and make sure that local people will get their fair share of the economic development, she said.

As an opposition party, she added that the People's Party focuses on persuading the government to reach the goal of decentralisation of budget and power for inclusive growth.

Thai economic challenges

Despite Thailand’s potential in food security, automotive industry, tourism and international relationship, former prime minister Abhisit Vejjajiva said Thailand had failed to extricate itself out of the middle-income trap.

He said global recession had led to a decline in Thailand’s economic growth, technological advances and sustainable growth. An ageing society and inequality are also impacting the Thai economy, he added.

To tackle those issues, he said laws and regulations should be revamped to attract foreign investment.

People should receive reskilling and upskilling to keep up with changes, he said, adding that everybody should be able to access good welfare for security in their lives.

On the politics side, Abhisit said politicians should be proactive and outward-looking to boost the Thai economy and inclusivity. He added that politics needed to deal with issues of transparency, trust and corruption.

“Most of our political dialogue is very much conductive at a local level, and sometimes not even national,” he said. “It is no longer about competing on projects or policies, but competing on a consistent vision of how to move the country forward.”

To tackle geopolitical issues, Abhisit suggested that Thailand play a constructive role on the global stage, and have a sense of belonging to get political leadership to build a strong grouping of ASEAN countries.

“ASEAN countries should not just focus on competing with each other, but think about how to consolidate the supply chain that will result in complementing rather than competition,” he said.

He added that the public and private sector should collaborate for national benefits.