Bangkok: The Thai Chamber of Commerce has revealed a comprehensive strategy to rejuvenate the nation's economy amidst a backdrop of global uncertainties, including natural disasters such as the recent earthquake in the Philippines and enduring geopolitical tensions. Dr. Poj Aramwattananon, Chairman of the Thai Chamber of Commerce and the Federation of Thai Chambers of Commerce, has expressed his intent to meet with the Prime Minister on June 10th to discuss recommendations aimed at stimulating economic growth over the coming 1-2 years.
According to Thai News Agency, Dr. Poj has identified the current state of the Thai economy as "very risky," despite a better-than-expected first-quarter GDP growth of 2.8%. The ongoing conflict between Iran and the United States, now entering its fourth month, is exerting pressure on domestic supply chains. This has resulted in dwindling inventory levels and escalating import costs, particularly for energy and raw materials like plastic pellets, which are in short supply and have seen price hikes.
Dr. Poj noted that while overall Thai export figures appear robust, they are predominantly driven by foreign investment. Sectors such as agriculture, processed food, and products with high local content have not yet realized their full potential. He recommends that the government should expedite the development of these sectors, leveraging Thailand's strength in "food security" to enhance its global competitiveness.
One of the critical issues highlighted by Dr. Poj is the need to accelerate Free Trade Agreement (FTA) negotiations, particularly with the United States, to circumvent a looming 36% tariff increase. The government is urged to resolve outstanding issues like copyright regulations and product quality assurance. Meanwhile, the Thailand-EU FTA is progressing, but it faces delays due to the approval process required by the parliaments of all 27 EU member states, which could extend over several years.
In response to global trends, where large companies are reducing their workforce in favor of AI investments, Dr. Poj emphasized the urgency for Thai workers to "upskill and reskill." This is crucial for enabling them to work alongside AI and technology, particularly as merchants increasingly utilize AI for sales analysis through initiatives like "Thai Helps Thai Plus."
Addressing corruption is another pivotal aspect of Dr. Poj's recommendations. He described corruption as a significant impediment to economic growth, warning that failure to address it could hinder Thailand's bid for OECD membership, thereby affecting investor confidence and international trade.
Dr. Poj concluded by emphasizing the necessity for clear economic structural reforms, which include building confidence in the tourism industry and distinguishing between Thai-produced exports and those driven by foreign investment. He called for genuine collaboration between the government and the private sector, prioritizing national and public interests to unlock Thailand's potential and navigate through the global crisis.