BANGKOK, Thailand – Following a Cabinet meeting, Prime Minister Paetongtarn Shinawatra held a small-group discussion on economic matters with Deputy Prime Minister and Minister of Finance Pichai Chunhavajira, as well as Secretary-General to the Prime Minister Dr. Prommin Lertsuridej.
After the meeting, the Prime Minister posted an update on social media, stating that she had instructed Deputy PM Pichai last week to develop an economic stimulus plan targeting a GDP growth rate of 3-3.5%. During today’s meeting, Pichai reported progress based on discussions with the Ministry of Finance, the National Economic and Social Development Council, the Bank of Thailand, the Budget Bureau, and other key agencies.
The plan is divided into short- to medium-term measures and long-term structural reforms:
Short- to Medium-Term Measures:
Accelerating Budget Disbursement: Unlocking over 100 billion baht in unspent government, state enterprise, and fund budgets.
Optimizing Public Spending: Redirecting budget allocations to support economic structural reforms.
Boosting Private Investment: Enhancing the ease of doing business, particularly for investment projects under the Board of Investment (BOI), which received applications worth 1.14 trillion baht in 2024.
Fast-Tracking Major Infrastructure Projects: Prioritizing projects related to water management, the Land Bridge project, railway connections with China, and airport and seaport expansions under the Ignite Thailand policy.
Stimulating Exports: Opening new markets, expediting trade negotiations, and reducing export bottlenecks, while ensuring stable agricultural product prices.
Promoting Tourism: Organizing festivals and events to increase tourist spending and extend their stays in Thailand.
Long-Term Structural Reforms:
Industrial Transformation: Implementing a sandbox model to align Thailand’s industries with global market shifts and enhance competitiveness.
Energy Price Reform: Increasing the share of renewable energy through policies like Direct PPA and UGT to meet international investment standards.
Agricultural Overhaul: Modernizing Thailand’s key agricultural sectors—rice, cassava, rubber, palm oil, and sugarcane—by balancing supply and demand, improving soil and seed quality, and boosting overall productivity to improve farmers’ livelihoods.
The next step will be further discussions with the private sector through the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) to finalize the economic stimulus plan within two weeks. (TNA)
