Prime Minister Prayut Chan-o-cha has encouraged Asian business leaders to invest during the current global economic slowdown as he sees the private sector as a key catalyst for regional and global economic growth.
Gen Prayut is confident there are still big opportunities in the region, in both soft and hard infrastructure.
"The private sector is pivotal to creating new economic momentum where a increased public-private partnerships, as well as a stronger partnership with the people, will allow Asia to grow amid the slow recovery of the global economy.
The Asian economy, with its robust growth, can lift confidence and boost the world's economy as a whole," Gen Prayut said during his keynote address at the Asia Cooperation Dialogue (ACD) Business Connect in Bangkok Sunday. He also called for unity in regulations and standards across the region while asking developed countries in Asia to "leave no one behind".
"Together, we must promote connectivity by Asia for Asia, in terms of infrastructure, trade and investment, rules and regulations, technology transfer, especially people to people, and we cannot leave anyone behind in this development process," he told business delegations and country leaders from 34 nations that attended the forum.
Citing the Asian Development Bank, the prime minister said that before 2020, developing countries in Asia will see their real incomes rise by 6% or almost US$1 trillion (about 34.9 trillion baht) if the estimated transport investment needs in Asia are met.
Meanwhile, the World Economic Forum has estimated that demand for investment in infrastructure in Asia remains as high as $5 trillion annually, accounting for more than 60% of the demand in infrastructure investment worldwide.
Thailand has launched the $2.7-billion Thailand Future Fund to raise capital from the private sector for infrastructure investments but the main challenge is to enable the region to mobilise the large amount of existing funds. He also urged business and country leaders at the forum to brainstorm on which model or what kind of mechanism can mobilise trans-border investments to finance infrastructure needs and to ascertain what kind of collaboration the public and private sectors can form.
The prime minister also reaffirmed his commitment to reform while, in the meantime, laying down a 20-year national strategy to enhance the country's competitiveness in the future.
He reiterated Thailand's effort to shift from "Thailand 3.0" (economic growth via a concentration on heavy industries) model to "Thailand 4.0" (economic growth via digital-based industrial activities and innovation) model via the new "S-curve" industries which will be promoted.
The new industries are robotics, aviation and logistics, biofuels and bio-chemicals, the digital industry and medical services.
The development of financial technologies will pave a new direction for the country's economic development.
Prinn Panitchpakdi, country head at CLSA Securities (Thailand), said there is tangible development in terms of government policies and "big moves by large corporates" that are beginning to lift investors' confidence in Thailand.
Mr Prinn said the key to boosting investor confidence and economic growth is still the implementation of policies and strategies. "What investors are excited about at this forum is the engagement of big corporations and the willingness of someone like Jack Ma [founder and executive chairman of Alibaba Group] and his team to come and engage with young entrepreneurs in Thailand," he told the Bangkok Post.
Mr Ma will address young Thai entrepreneurs on "entrepreneurship and inclusive globalisation" at the Foreign Ministry on Tuesday.
Prime Minister Prayut Chan-o-cha poses with Asean business leaders participating at the ACD summit held Sunday at Plaza Athenee Bangkok. (Photo by Thanarak Khunton)
"If Thailand and Asean were to grow in the whole online space then you would need someone like Alibaba to be vocal and be supportive about initiatives and that is something that investors are thinking of as encouraging," Mr Prinn said.
Companies such as WHA Corporation and Amata Corporation are beginning to engage in investment, he said. Meanwhile, regulators such as the Securities and Exchange Commission are also coming up with regulations that will drive the environment for raising capital in financial technologies.
"I think this will be crucial because investors are keen to invest in a country that has growth from a productivity angle because it is not about labour-intensive practices any more in Thailand. This is putting pressure on the government to invest in infrastructure such as water management projects to meet the expectations of the private sector," he said.
Stanley Kang, chairman of the Joint Foreign Chambers of Commerce, told the Bangkok Post that Thai investment in infrastructure has been too low in the past 10 years and the expected increase in investment and concentration on connectivity are something that investors are looking forward to. "The vision and a clear roadmap are good but the challenge is implementation. After two years [of military government], I believe everyone has gained a greater understanding about Thailand and the prime minister's comments that everyone should be friends is also positive," he said.
"With policy stability and investment promotion, such as the forum Monday, doing well, and if the government can make people see and feel there is implementation then I believe that once all these things [regarding reforms and government investments] are clear, then people who know about the opportunities will come."
Meanwhile, Vorapol Socatiyanurak, chairman of finance, banking, financial institutions and the capital markets subcommittee of the National Legislative Assembly has proposed setting up an "ACD Fin-Tech Committee" to support Asia's development in financial technologies.
"I want to make a proposition to develop more cooperation among us by initiating the 'Bangkok Declaration for Fin-Tech' which includes the setting up of the ACD Fin-Tech Committee to foster integral agencies' cooperation and speed up outcomes of fin-tech development in Asia," he said.