Thailand should move to embrace the 4.0 digital age with caution as some hidden dangerous pitfalls might await, warns Supachai Panitchpakdi, former secretary-general of the UN Conference on Trade and Development (Unctad).
He apparently voiced caution in taking on the Thailand 4.0 policy with rapidly evolving technologies influencing many aspects of the economy including business models and demographics. The former Unctad chief said he found the Thailand 4.0 policy "somewhat acceptable."
In a speech he gave at the University of the Thai Chamber of Commerce Monday, Mr Supachai pointed to some negative aspects of the policy which the government is using to drive Thailand to the fourth industrial revolution which will see the country focus more on technological advances and high-level services, aimed to enhance consumers' satisfaction with smarter, more convenient business activities.
More risks will emerge in the cybersecurity system especially as individuals are tempted to overspend, prompted by easy online payments. He said it would be unrealistic to think that the way forward into the 4.0 era will not end in destruction. Foreign interests in the past had tried to convince other countries that they must open up their economies to the introduction of new developments.
However, in the end many companies in the countries which championed the technological advances have collapsed. "When they fell, it was like an elephant falling on its knees. It tramples on the pasture underneath its feet," he said. He insisted he was not suggesting the people who thought up the 4.0 idea, which is being formulated into policies, were out to fool people in Thailand.
He said one must be cautious. If someone said that to be superpowers in the digital era, everything must be "smart", it might be simplistic to think that every aspect of the 4.0 era equates to being smart.
He said he was afraid the ideas related to the 4.0 policy may be exploited by some foreign interests in a way that may put Thailand at a disadvantage, Mr Supachai said. "I'm not saying we'll be fooled again by foreigners bringing in 4.0 [platforms]," Mr Supachai said.
The digital transition is a major change that will drive the country to the fourth industrial age, but it is also important to know what changes society should or should not adopt, he said.
More dependence on online facilities will come at a cost of cyber insecurity, he said. One recent example is the ransomware attacks that forced computer users to pay money to attackers or have their essential files locked up.
Changes in consumers' spending behaviour are also a concern, Mr Supachai said. It is true digital technology eases payments, allowing people to perform financial transactions online, which can can give birth to cashless societies in the future. However, the possible negative impacts must be mulled over.
"Will people spend more and save less?" Mr Supachai said, adding more people might want to stay home and spend all day. On a macro scale, Jack Ma, founder and executive chairman of Alibaba Group, is planning to buy leading American firms developing digital payment platforms for member countries of the United Nations. Mr Supachai said this could "wipe out" the traditional financial system.
Mr Supahai added the 4.0 policy, if not carefully managed, could widen income disparities by creating even more business and technological opportunities for the rich.