Bangkok: Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, acknowledges the struggles faced by the Thai economy but encourages the public and the nation to remain hopeful. He has set a goal for the GDP to grow by 3% in 2025 and revealed potential plans to assist over 3 million individuals by purchasing their debt to remove them from the credit bureau, thus allowing them access to credit.
According to Thai News Agency, Mr. Pichai addressed concerns raised by Ms. Sirikanya Tansakul, an MP of the Prachachon Party, during a no-confidence debate about the state of the economy. He concurred that the economic situation has been dire for an extended period, impacting agricultural prices, industrial investments, innovation, and government expenditure. The government aims to disburse 75% of investments this year, though exports still generate limited value for the country.
Mr. Pichai emphasized the importance of GDP growth, asserting that a healthy GDP reflects a good quality of life, purchasing power, and consumption. He acknowledged the GDP's average growth of 1.9% over the years but noted a recent increase to 2.5%. Despite lagging behind other countries with 5-6% growth, Thailand aims for a GDP growth of no less than 3% by 2025, a target that he believes is achievable with effort.
Focusing on agriculture, Mr. Pichai highlighted the shift in rice production and exports over the past decade. He advocated for utilizing planting areas for crops like corn, which could yield higher profits per rai. The government plans to support this transition for the next 3-5 years to enhance agricultural value and security.
In the industrial sector, Mr. Pichai recognized the enduring presence of traditional industries and the challenges of developing new sectors like electric vehicles (EVs). The Board of Investment (BOI) has seen over 1.1 trillion baht in industrial promotion cards granted, reflecting a shift in investment strategies with faster returns.
Tourism strategies involve encouraging longer stays and increased spending, alongside enhancing logistics with projects like the double-track railway and the Land Bridge project. These initiatives aim to bolster connectivity and economic growth.
Regarding financial systems, Mr. Pichai clarified that the proposed digital money initiative would enhance liquidity without infringing on the Bank of Thailand's monetary policies. The government seeks to ensure compliance with the central bank's regulations.
Mr. Pichai addressed the stock market, noting significant progress in resolving foreign investor advantages over local investors. In terms of debt resolution, the focus will be on assisting those in severe financial distress, with plans to buy problematic debts and provide opportunities for affected individuals to re-enter the credit system.
Pichai concluded by acknowledging the long-standing economic challenges but expressed determination to address them comprehensively. He appreciated the opposition's role in highlighting these issues and reaffirmed the government's commitment to achieving a 3% GDP growth and enhancing Thailand's competitiveness in the region.