Govt urged to develop precise, practical policies to spark digital transformation
The next government needs to widen its focus on the digital economy from digital money to encompass business, infrastructure, and innovation in order to strengthen the country’s long-term growth, Thanawat Polvichai, director of the University of the Thai Chamber of Commerce, said on Friday.
Digital marketing and the digital economy will be a new growth engine for Thailand, Thanawat said at a press conference for the launch of a new digital marketing programme at the university.
Thailand’s digital economy has grown exponentially over the last few years, from around 5-7% of GDP to about 13% currently, according to official data, which values the Thai digital economy at about 2 trillion bath.
The university’s Institution of Trade Strategies estimates that digital marketing accounts for 5% of the digital economy, or about 900 billion baht, and that its share will continue to expand into the double digits in the next decade.
Political parties have not offered practical policies for the digital economy and are just scratching the industry’s surface, Thanawat said.
"We have yet to see much about digital economy policies from any political party, and the one that has is limited to the realm of digital finance only. We would like them to mention other topics as well, such as promoting digital business, developing digital infrastructure, and developing skilled talent," he explained.
According to a survey by the Institution of Trade Strategies, Thai people and businesses have widely adopted the use of digital platforms in their daily lives. Financial transactions, information gathering, and shopping are the primary reasons Thais use digital platforms, the surveys found.
More than 80% of respondents said they follow political news online and that this information influences their decision-making.
Thanawat said this demonstrates that digital experiences are becoming an increasingly important part of people's lives, which creates more business opportunities.
A recent nationwide survey of 395 small and medium-sized enterprises (SMEs) by the university found that 60-70% of their owners recognised the importance of digital technology in their businesses. SMEs can earn an average of 24,283 baht per month by using digital technology, the survey found.
When asked how the government can help develop digital businesses, respondents said it should pass and enforce strict laws against cybercrime that include severe punishment. They also called on the government to improve digital infrastructure, promote digital business, and construct a large data centre to collect people's personal information in accordance with the Personal Data Protection Act.
Thanawat said developing a skilled digital workforce is more important.
The government should increase support for schools and business to train digital workers, he said, adding that tax breaks and funding for research and development are also necessary.
Thanawat said the next government will likely implement more policies to develop the digital economy and provide more investment, adding: "Not only is the digital economy the country's new business model for sustaining growth … it is also an important factor in increasing Thailand's competitiveness and attracting foreign investment."
