Thailand Targets 30% of GDP for Investment to Achieve High-Income Status

Thailand is aiming to boost total investment to 30% of GDP within the next 12 years, a move intended to help the nation escape the middle-income trap and achieve high-income status. Finance Minister Ekniti Nitithanprapas announced the ambitious target on Friday following a meeting of the subcommittee on new national investment development. The subcommittee, composed of representatives from key economic bodies including the Board of Investment (BoI), the Office of the National Economic and Social Development Council (NESDC), the Thai Chamber of Commerce, the Federation of Thai Industries, and the Thai Bankers' Association, approved a framework to enhance Thailand's competitiveness, accelerate investment, and position the country as a leading regional investment hub. Mr Ekniti, who also serves as deputy prime minister, stated that the government aims to achieve GDP growth exceeding 3% by 2029, improve Thailand's ranking in the IMD World Competitiveness Ranking from 26th to within the top 20 globally, and reach high-income status by approximately 2038. "To become a high-income country within the timeframe we have set, Thailand must increase combined public and private investment to 30% of GDP from the current 23%," he emphasized. The government plans to deploy all available policy tools, including tax incentives, targeted budget spending, public-private partnership (PPP) projects, and the Thailand Future Fund, to achieve this objective. To drive progress, five working groups have been established with targets for early results within six months, major progress within two years, and long-term infrastructure outcomes within four years. These groups focus on investment and industrial transformation, AI and digital technology, the green economy, financial services, and medical investment. The investment and industrial transformation group will modernize existing industries, develop new industrial bases, streamline business approvals through the Thailand FastPass mechanism, expand electricity, water, and industrial infrastructure, strengthen workforce skills through the Skill Bridge program, and support Thai companies' participation in global supply chains. The AI and digital technology group aims to attract 100 billion baht in investment in areas like artificial intelligence, semiconductors, and chip design by 2027, while increasing AI's contribution to GDP to 5% through investments in infrastructure, research, talent development, and commercial adoption. The green economy group will promote clean energy, smart grids, electric vehicle infrastructure, carbon markets, and green finance. The financial services group will work to develop Thailand into a regional financial hub while expanding access to capital for innovative businesses. The medical investment group will strengthen Thailand's role in high-value medical manufacturing and innovation, including pharmaceuticals, medical devices, and healthcare products. Narit Therdsteerasukdi, secretary-general of the BoI and secretary to the subcommittee, explained that its role is to formulate investment policies, remove obstacles, develop infrastructure, and coordinate public-private cooperation to drive the national strategy. Mr Ekniti noted that the global economy is being reshaped by geopolitical tensions, rapid advances in artificial intelligence, digitalization, aging populations, and the transition to a green economy. "Countries around the world are competing to attract investment and reorganize global supply chains," he observed. Source: Bangkok Post