BANGKOK, Thailand – Former Prime Minister Thaksin Shinawatra, on January 14, outlined several economic recovery measures during a special speech at the “Chat with Tony Bull Rally of Thai Capital” Dinner Talk. He expressed confidence that Thailand’s GDP could grow by 5% by 2027 under these initiatives and projected the Thai stock index could reach 1,800 points within three years.
One of the key proposals was to pilot the use of Bitcoin for transactions in Phuket as part of a regulatory “sandbox” project. This would allow the use of cryptocurrency for purchasing goods, hotel stays, and vehicles, aligning with global trends and preparing Thailand for the growing influence of cryptocurrencies. Thaksin urged the Ministry of Finance to explore and implement the necessary regulatory framework for this initiative, in conjunction with the government’s planned digital wallet programs.
He also recommended enhancing the powers of the Securities and Exchange Commission (SEC) to ensure transparency and investor confidence in the capital market. Measures to attract more private sector companies to list on the stock exchange and to improve the management of corporate bonds were also suggested. Thaksin emphasized the need for alternatives to bond issuance to mobilize funds effectively while balancing risk and return.
Thaksin proposed adjustments to long-term equity funds (LTF) to make them more appealing, similar to Thai ESG funds. He highlighted the government’s ambitious economic programs, which could result in GDP growth of over 3% by 2025, 4% by 2026, and 5% by 2027, while boosting the stock index significantly.
On infrastructure development, Thaksin suggested reducing electricity costs to 3.70 baht per unit to attract foreign investors, especially in sectors like artificial intelligence and data center operations that require high electricity consumption. He noted that Thailand’s excess electricity reserves provide an opportunity to lower costs and improve investment potential. Talks with major foreign investors are underway, with expected investments worth hundreds of billions of baht in the near future.
Regarding fiscal policies, Thaksin supported the implementation of a 15% Global Minimum Tax (GMT) for multinational corporations starting January 1, 2025, in line with Thailand’s membership in the OECD. To balance this, he proposed reducing the corporate income tax rate to 15% and adjusting the value-added tax (VAT) rate, currently at 7%. The Ministry of Finance is studying the potential VAT adjustments, aiming to implement a fair system with a Negative Income Tax (NIT) mechanism to support low-income individuals by providing government subsidies.
Thaksin concluded by calling for greater transparency in government initiatives to build confidence among local and international investors. He urged the government to expedite measures to foster sustainable economic growth while ensuring benefits for all sectors of society. (TNA)
