Bangkok, Nov. 3 – “Panpree” promotes economic ambassador as “pioneering” to create opportunities for the country. Ready to specify the project “Landbridge” will be Thailand's new strategy to compete on the world stage. Meanwhile, the BoT Governor pointed out that the conflict between Israel and Hamas is a new risk to the global economy.
Mr. Panpree Phitthanukorn, Deputy Prime Minister and Minister of Foreign Affairs, keynote speech: Thailand's New Growth Path 2024, Thailand's new context on the world stage, at the Thailand Next Move 2024 seminar "The Next Wealth and Sustainability", transforming Thailand towards sustainable prosperity, saying that economic diplomacy drives the country forward. Toward the “New Growth Path” Thailand's role and path depend on the global context. Many powers compete in geo-politics, geo-economy and geo-technology. Including the dichotomy of the supply chain. which is both an opportunity and a challenge Setting Thailand's position amid conflict and a polarized world economy Most importantly, Thailand is neither a conflict nor a part of any conflict and conducts relations with other countries in a balanced manner. But geopolitical conflicts can erupt and escalate to violence and destruction any time one takes an unbiased stance. There is a need for timing for managing various situations and conditions in order to move forward with reviving the Thai economy. We must accelerate the creation of a new economic engine and new potential to be recognized around the world, while emphasizing that Thailand is not only a trade and investment destination. But it is an important point in transport links around the world.
Mr. Panpree said that the New Growth Path of the Thai economy from 2024 onwards must have three dimensions, and the financial and banking sector has a huge role in promoting all three dimensions.
Green Growth Access to necessary financial services and funding sources. For adjusting production processes for goods and services that reduce greenhouse gas emissions.
Innovation-driven Growth: Using technology and innovation to add value to products and services.
Community-based Growth: Access to capital for SMEs and the community economy.
The government will lead Thailand to the New Growth Path by conducting economic diplomacy aimed at connecting regional and global partners. The public, private and financial sectors will play important roles. in supporting Thailand's neighboring countries to move forward To promote mutual growth Along with solving common problems in the region, the government uses proactive economic diplomacy as the "spearhead" of modern diplomacy. In seeking opportunities in the digital economy, innovation development Developing new generations of entrepreneurs and promoting Thai investment abroad
Mr. Panpree also said that the government will speed up FTA negotiations with major economies in order to expand Thailand's export market. and work closely with partners under the framework of IPEF or the Indo-Pacific Forum To strengthen the supply chain Increase trade and investment opportunities with the "Land Bridge" project connecting the Gulf of Thailand to the Andaman Sea in Chumphon Province - Ranong Province. will be the new magnet of Thailand This will help change or reduce geopolitical violence and allow countries to focus on trading based on fairness. And Thailand is an important transportation link around the world. In the past, the Prime Minister has led delegations from the public and private sectors on 9 overseas trips. Deputy Prime Minister and Minister of Foreign Affairs Official visit to Vietnam and will travel to attend the IPEF ministerial meeting in early November. Including traveling to Sa Kaeo Province to listen to the needs of business operators along the border.
In addition, the Prime Minister's visit to the United States and Deputy Prime Minister and Minister of Foreign Affairs to attend the APEC meeting which focuses on Sustainable Finance issues in mid-November. The government will aim to promote green finance mechanisms through the issuance of bonds. for sustainability and inviting foreign investors to invest in The government plans to issue additional Sustainability Linked Bonds to raise about US$2 billion next year, which the Prime Minister highlighted during his meetings with major foreign private companies. To invite and build confidence among investors and highly skilled people to invest and work in Thailand. Including setting up a schedule for the Thai private sector to meet and discuss with foreign agencies and private sectors in parallel. The government will drive economic diplomacy based on consultation with all sectors of Thailand. To make foreign affairs consistent with domestic policy To raise the level of well-being of Thai brothers and sisters. along with proudly bringing Thailand back on the radar screen of world politics and economics. and gained international confidence
The Ministry of Foreign Affairs is ready to work with other government agencies and state enterprises under the "Team Thailand" mechanism. Invite Thai ambassadors from around the world to a meeting in Bangkok. To brainstorm and set guidelines for driving foreign affairs together with all sectors and networks of Thailand. In order to create a Thai economy that grows strongly and sustainably, the next step for Thailand must be completeness, standing, flexibility, and readiness to emerge strongly. and must build immunity to prepare to deal with various fluctuations. The public and private sectors must work together to restore prosperity to Thailand.
Mr. Setthaput Suthiwatnarueput The Governor of the Bank of Thailand (BoT) gave a speech on the topic of adjusting monetary policy mode towards a sustainable economy, Towards a more resilient future, saying that unexpected risks to the Thai economy or difficult to evaluate It will cause strong shocks or side effects to the economy. Therefore, it is necessary for the economy to adjust the mode of taking care of many dimensions. Especially economies that have resiliency or flexibility to absorb shocks. The elements of an economy that has resiliency are not just stability. But it has a wider meaning than that. There is an element of durability under changing contexts. flexible If there is an unexpected event, it can be adjusted according to the situation. Having the characteristic of being able to fall and get up quickly, etc.
The BoT Governor stated that the world situation has now changed greatly. with increased risk This is a high risk for familiar events such as declining Chinese growth. or the world economy has decreased We can handle it, but the worrying thing is that there are new risks that we are not familiar with. Makes it difficult to predict that What will the end result be? Lessons learned in 10-20 years that are difficult to discern are side effects, for example very high risks, such as the situation in the Middle East. It may lead to unexpected events. Therefore, it is the source that A matter of stability will come back as a hero Previously, we focused on stimulating to get out of the COVID crisis, but now the context has changed. This must come back. However, the approach to taking care of the economy that emphasizes stability is This is in line with the IMF's view. By emphasizing stability, such as inflation within the target range. Keep fiscal ammunition. Overseeing the stability of the financial institution system Adjust the structure to meet new world trends. What must be done to make the economy stable is to ensure that the economy grows according to its potential of 3-4% per year, that inflation is within the target of 1-3%, and that there is no financial imbalance, etc. As for the stability that is less okay, it is debt. Households living at 91% when comparing GDP While this is down from its peak of 94%, it is still very high. Especially during COVID. However, there is no fixed number as to what level is appropriate. But foreign countries want it to be kept at a level of 80%, so in this dimension it is still considered a problem and we should keep an eye on it. As for the comparison in the past, it is the weakness of the fiscal sector. Reflected from the public debt to GDP figure. Asked if compared to foreign countries It was found that many countries are higher than us. But that debt rose sharply from pre-COVID levels, at 62% of that GDP. Higher than we've ever been. Therefore, it is a number that must be paid attention to. Or we cannot be complacent. However, if we want to have a stable economy We have to create opportunities. In order to have a new type of growth where the base will be wider, if it grows the same way, it will be even more difficult. The figures say that it will be difficult to grow, namely 1 in 3 Thai workers and industries in the old world, such as the petrochemical industry, automobiles, etc. - Bureau Thai news
Source: Thai News Agency