Deputy PM Outlines Economic Transformation Plan for Thailand
Thailand's Deputy PM outlined an economic transformation plan requiring rapid changes across people, business, and government to compete globally amid shifts in geopolitics, trade, and technology. The strategy focuses on diversifying export
Deputy Prime Minister and Commerce Minister Supalee Suthiramphan outlined a vision to create an economic runway for Thailand, calling for rapid transformation across people, business, and government sectors to navigate global change. Speaking at the KBTG Techtopia: Human of Tomorrow event on September 16 at the Sirikit National Convention Centre, she emphasized that the world is undergoing swift shifts in geopolitics, economic geography, trade structures, environment, demographics, and technology. Thailand must move beyond traditional thinking and create a runway enabling Thai people and businesses to capitalize on these changes, generate value, and compete in the future economy.
Supalee noted that Thailand faces multiple transformations, particularly in global geopolitics leading to greater divergence and polarization, or decoupling, forcing countries to adjust positions and operations to suit a multipolar world. Thailand's economy remains concentrated, especially in exports. While Thai exports reached approximately 11.1 trillion baht last year with solid growth, most small and medium enterprises generate modest export income, and export markets depend heavily on the United States and China for roughly one-third of total export value. Thailand must therefore accelerate market diversification and expand opportunities to more businesses.
Thailand must also address environmental transformation and decarbonization, which affect trade rules and business operations, particularly when entering markets with strict environmental standards. Demographic challenges from population decline and aging society impact labor, domestic consumption, and national income-generating capacity. Technology, especially digital and artificial intelligence, is reshaping competition, creating both winners and losers within industries based on technology adoption capability.
Supalee stressed that technology is no longer distant but a critical tool for competitive advantage. Businesses adopting digital and AI solutions gain efficiency, differentiation, and added value, while those falling behind risk losing competitiveness. Thailand must therefore move from digital adoption to genuine digital transformation.
Creating an economic runway requires simultaneous action across four pillars: people must develop skills in digital and AI applications; infrastructure must support technology and AI through digital systems and data centers; governance must build trust and security, including cybersecurity, proper governance, and countering disinformation; and energy must be sufficient, appropriate, and clean to support growing digital infrastructure.
Regarding Thailand's digital capacity, Supalee cited IMD World Digital Competitiveness data showing Thailand ranks 29th out of 69 economies in technology, 37th in knowledge, and 45th in future readiness, reflecting both challenges and opportunities ahead.
