Digital and disruptive technologies and development of a circular economy can earn Thailand up to 110.1 billion baht (US$3.4 billion) each year in additional investments, savings and revenue, the World Bank said on Tuesday.
The Thai economy, worth 176.29 trillion baht before the pandemic hit, needs an innovation-led growth model and to address existing foreign investment constraints to create better jobs and become a high-income country, it said in a statement.
Adopting a circular economy, which involves producing, leasing, repairing, upgrading and recycling as much as possible, could generate as much as 51.85 billion baht of cost savings and additional revenue for the private sector, especially for agriculture, construction, and electronics, the bank said.
An additional 58.33 billion baht a year could be generated from accelerating use of digital technology, it added, mostly from new investments and expansion of sectors where the country is well-positioned, like e-commerce and fintech.
"With Covid-19, digital and disruptive technologies have been key in keeping businesses afloat," Finance Minister Arkhom Termpittayapaisith was quoted as saying in the World Bank statement.
The tourism- and consumption-led economy, Southeast Asia's second biggest after Indonesia, grew 1.6% last year, among the slowest in the region, and the government predicts growth of 3.5% to 4.5% this year.
Strengthening structural reforms will boost businesses and promote investments in digital innovation and circular technology, the World Bank added.