Bangkok: Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, has outlined an ambitious plan to rejuvenate the Thai economy and elevate it to a high-income status within the next 12 years. This announcement was made during an exclusive interview at the Fiscal Policy Office's (FPO) 2026 annual academic seminar, focusing on "New Horizons of Fiscal Policy: Empowering People, Building Resilience."
According to Thai News Agency, the Thai economy is currently experiencing a recession, with growth slowing to approximately 2%, significantly below its potential level of 2.8-2.9% and the pre-1997 levels of 6-7%. The lack of investment is highlighted as a major hurdle, with total investment dropping from 30-40% of GDP to about 23%, 6% from the public sector and 16-17% from the private sector.
To achieve the long-term goal of transforming Thailand into a high-income nation with an average per capita income between US$16,000 and US$20,000, the government is targeting an average economic growth rate of 6% per year. Within a 4-year framework, the government aims to boost investment to 30% of GDP, enhance Thailand's global competitiveness rankings, and increase its economic growth potential beyond 3%.
The government is capitalizing on global geopolitical conflicts, positioning Thailand as a safe haven for investors due to its trade neutrality, stable infrastructure, and abundant resources. This strategy mirrors the 1985 Plaza crisis when Japan shifted its production base to Thailand. Current efforts focus on new industries like AI, semiconductors, and electric vehicles. The Board of Investment (BOI) strategy has been revised to encourage technology transfer, integration of Thai businesses into global supply chains, and collaboration with Thai universities via initiatives like the Skill Bridge project.
In terms of infrastructure and clean energy development, the government has liberalized the clean energy sector, including direct power purchase agreements. Large corporations are encouraged to build their own clean energy plants to prevent competition for electricity with the public. Additionally, a policy supports rooftop solar power projects, offering citizens a 50,000 baht loan through state-owned banks to install solar panels with no upfront payment.
Fiscal policy is guided by five principles: effective budget spending, aiding citizens during transitions, upgrading infrastructure and human resources, promoting transparency, and collaborating with the private sector through public-private partnerships and infrastructure funds.
The government has also introduced the "One Province, One Company" pilot project to distribute opportunities regionally, collaborating with private sector partners to reduce costs and enhance transparency. This initiative promotes local employment, allowing young people to work in their hometowns, and offers tax incentives for companies hiring student interns. The "Bridge Financing" project facilitates short-term loans to SMEs and small contractors, with large companies acting as guarantors to ease access to funding.