Ministry looks to high tech to spur GDP
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Ministry looks to high tech to spur GDP

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A varity of cars on display at last year's edition of Motor Expo. Mr Akanat believes Japanese car makers will continue their investment in Thailand despite sluggish domestic car sales. Pattarapong Chatpattarasill
A varity of cars on display at last year's edition of Motor Expo. Mr Akanat believes Japanese car makers will continue their investment in Thailand despite sluggish domestic car sales. Pattarapong Chatpattarasill

The Industry Ministry wants the manufacturing sector to help increase GDP growth by 1% every year through the promotion of new industries that use high technology.

Innovative products based on high-tech manufacturing will be a "new bullet" for the economy that is dealing with the impact of technological disruptions, geopolitical conflicts and climate change, said Industry Minister Akanat Promphan.

"Thailand needs a new economic booster as its economy has grown slowly since the pandemic," he said, adding that the state budget is limited due to high public debt.

As of October 2024, public debt tallied 64%, causing fiscal pressure and reducing fiscal space, according to the Fiscal Policy Office.

Mr Akanat said he believes growth can be driven by the development of S-curve industries, including new-generation cars and smart electronics.

In 2025, the government set a goal to achieve GDP growth of 3%.

In the third quarter of last year, GDP grew 3%, up from 2.2% in the second quarter, said the National Economic and Social Development Council.

The growth was mainly driven by the tourism and construction sectors, while the manufacturing sector expanded by 1.2%, a decrease from 1.9% in the second quarter.

Mr Akanat said Thailand must supply clean energy for foreign companies interested in data centre and cloud service investment, as well as semiconductors.

He said the government needs to better manage energy costs, ensuring lower electricity bills for manufacturers to increase their competitiveness.

"These are among the factors that could allow the economy to grow faster," said Mr Akanat.

In the automotive industry, he said he expects more Japanese car makers to maintain their investment, following Toyota Motor Corp president Toyoda Akio's pledge to invest 55 billion baht in Thailand to promote hybrid cars.

The move was announced while Thailand is facing months-long sluggish domestic car sales, caused by banks and car financing companies' strict criteria to grant auto loans amid the high level of household debt.

"The government believes Toyota's decision will build more business confidence among other Japanese car makers in Thailand," said Mr Akanat.

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