Finance minister vows to raise Thai competitiveness

Mr Ekniti says Thailand can reach the top 20 in competitiveness rankings. The government wants Thailand to break into the top 20 in a global competitiveness ranking over the next four years, rising from 26th.Finance Minister Ekniti Nitithanprapas said the administration also seeks to raise the country's potential economic growth rate from the 2.7% estimated by the Bank of Thailand to more than 3%. Speaking at a Stock Exchange of Thailand (SET) seminar On Tuesday, Mr Ekniti said the Board of Investment's (BoI) investment strategy is no longer focused primarily on the number or value of investment projects, but rather on the quality of investment, including technology transfers. He noted Chinese electric vehicle (EV) manufacturers chose Thailand as their first location outside China to produce right-hand-drive EVs, while utilising the nation's domestic supply chain. Regarding clean energy, which plays a key role in attracting data centre investments, Mr Ekniti said the National Energy Policy Council approved measures last week to unlock direct power purchase agreements, allowing industrial users to buy electricity directly from power producers. The measures also allow renewable energy producers to sell excess electricity back to the grid via the authorities' transmission system under a third-party access framework. In addition, he said the BoI launched an initial public offering initiative to encourage foreign investors in Thailand to raise capital through the Thai market instead of listing elsewhere. The goal is to bring more listings to the SET, particularly for technology companies. "Investment capital continues to flow into Thailand because the country is able to trade with all nations," said Mr Ekniti. "Geopolitical and economic tensions have divided the world into multiple blocs. As a result, investors are seeking safe destinations for investment." He compared the current situation to the 1980s, when the Japanese yen was forced to appreciate, prompting Japanese manufacturers to relocate production overseas, including to Thailand. This led to the development of Thailand's industrial base, particularly the automotive industry and its supply chain. Efforts to streamline investment approvals through the Thailand FastPass facilitation measure have increased investment flows into the economy, said Mr Ekniti, lifting economic growth in the fourth quarter of last year to 2.4-2.5%, compared with an earlier projection of 0.3-0.4%. In addition, private sector investment expanded by 10% in the first quarter of this year. "In the past, Thailand's economy was export-led. When exports contracted, the economy suffered. Today, Thailand's economy is investment-led," he noted. Thailand's economic recovery is being driven efficiently by increased domestic investment, prompting rating agencies to revise Thailand's outlook from negative to stable, contributing to around 60 billion baht in capital inflows into the SET over the past 2-3 weeks, said Mr Ekniti. Global investors are not concerned about Thailand's public debt, but rather whether the government has sufficient new investment engines to sustain economic growth, he said.