Bangkok: Somkid Jatusripitak has highlighted the pressing challenges facing the Thai economy, describing it as a "crisis within a crisis" and urging comprehensive structural reforms to attract new capital and elevate the country's economic status.
According to Thai News Agency, Somkid, a former Deputy Prime Minister as well as former Ministers of Finance and Commerce, delivered a keynote address titled "The Thai Economy Amidst Challenges: Policy Solutions" at the Triam Udom Dinner Talk 2026. He pointed out that Thailand is grappling with enduring structural issues, such as low economic growth, poverty, and inequality, compounded by global geopolitical tensions.
The external geopolitical conflicts have resulted in increased energy costs and inflation, which threaten to slow down the economy while keeping inflation high-a scenario known as stagflation. This situation is eroding consumer purchasing power and threatening business viability, especially in the private sector.
Somkid emphasized that while the government has attempted to reduce living costs, more immediate support is needed for low-income groups, farmers, and SMEs facing liquidity issues. He also advocated for strict price controls on essential goods to prevent price hikes.
In terms of energy, Somkid proposed a review of Thailand's energy pricing structure to reduce economic costs. He suggested decoupling refined oil prices from the Singapore market and temporarily cutting excise taxes on oil to ease public burdens during economic downturns. He also called for large energy companies to help alleviate public burdens during crises.
Somkid noted that despite these challenges, there are opportunities from the relocation of foreign investment bases, especially from China, Taiwan, and Japan, driven by geopolitical uncertainties. This has led to significant investments in high-tech industries such as semiconductors and biotechnology, representing a potential turning point for Thailand's economy.
He advised the Board of Investment (BOI) to shift its focus from investment value to assessing long-term impacts, requiring foreign investors to contribute to human resource development and technology transfer. This includes supporting Thai SMEs in accessing AI technology to boost competitiveness.
Somkid also suggested that the government should work on elevating Thai agricultural and food products to global markets, drawing lessons from South Korea's food industry and leveraging e-commerce platforms to boost rural economies and reduce poverty sustainably.
He advocated for opening up to leading foreign educational institutions to improve education quality, aligning it with the needs of modern industries to attract investment and foster long-term economic growth.
Somkid concluded by stressing the need for a strong government capable of strategic planning and international economic negotiations to boost investor confidence and set clear developmental directions. He called for a transparent business ecosystem, particularly in the Eastern Economic Corridor (EEC), and greater civic engagement in government policy-making. He emphasized the importance of involving youth and professionals in politics to help Thailand navigate its challenges and achieve sustainable growth.