Thailand Targets Investment and Skills to Withstand Economic Shocks

 

By Atlantic Reports

Thailand is seeking to strengthen its economy through structural reforms, foreign investment and regional cooperation, with a focus on helping workers and small businesses adapt to global disruption.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas outlined the approach during a discussion on the global economy at the 2026 IMF/World Bank Group Annual Meetings in Bangkok on Thursday.

He identified rising energy prices, fragmented trade and supply chains, higher interest rates and rapid advances in artificial intelligence as four major challenges.

Ekniti said Thailand’s reliance on imported oil had exposed households and businesses to higher energy costs. At the same time, shifting international supply chains were creating opportunities to attract investment, although economies outside those networks risked being left behind.

Protecting Households Through Change

Ekniti argued that macroeconomic stability alone could not deliver sustainable growth. Structural reforms were also needed to help businesses and workers respond to changing conditions.

“We need to accelerate the transition for businesses and workers, otherwise, the shocks will affect low-income households and small businesses most severely,” he said.

He credited fiscal discipline with helping Thailand maintain relatively low government borrowing costs, putting its 10-year government bond yield at around 2.3 per cent.

That figure represented the minister’s assessment at the time of his remarks, rather than a fixed borrowing rate.

Investment Applications Rise

Ekniti said foreign investment applications increased by 47 per cent in the first half of the year to approximately $44 billion.

Applications indicate investor interest, rather than money already committed or spent. He did not provide a corresponding figure for realised investment.

The government was targeting emerging industries, including artificial intelligence, smart electronics and electric vehicles, he said.

Through its Skill Bridge programme, Thailand aimed to connect foreign investors with local businesses and universities, improve workers’ skills and help small and medium-sized enterprises enter investors’ supply chains.

“The government is working to translate these investment opportunities into greater skills and productivity for Thai workers and businesses through knowledge transfer and workforce development,” he said.

Ekniti also said the government was simplifying investment approvals and reducing bureaucracy. He reported private investment growth of more than 10 per cent for two consecutive quarters, without identifying the quarters or comparison basis in the account of his remarks.

Regional Energy and Digital Links

Ekniti called for closer cooperation within the Association of Southeast Asian Nations (ASEAN), particularly on trade, electricity and digital infrastructure.

He said trade among ASEAN members accounted for about 22 per cent of their total trade, compared with approximately 60 per cent within the European Union, arguing that regional commerce had room to expand.

He cited the ASEAN Power Grid as a means of strengthening energy security through interconnected electricity systems. Laos’ hydropower resources, he said, could help meet regional demand through connections involving Thailand, Malaysia and Singapore.

On digital development, Ekniti highlighted the ASEAN Digital Economy Framework Agreement, potential links between national digital identification systems and wider cross-border payments.

He said Thailand had already established QR payment links with Singapore and Malaysia.

Turning Investment into Local Gains

Ekniti said Thailand remained open to international partners, including the European Union, and supported rules-based cooperation.

He described the central challenge as ensuring that Thai workers and businesses could participate directly in economic change.

“It is like a high-speed train arriving in Thailand, with many people waiting on the platform,” he said.

“We are trying to open more doors so Thai people and businesses can get onto that train and use the opportunity to improve productivity.”

The strategy’s practical test will be how much investor interest becomes operating businesses, stronger local supply chains and better-paid employment. The remarks did not specify participation targets or a delivery timetable for the Skill Bridge programme.

Atlantic Reports: Voices. People. Facts.