Thailand has the potential to gain two big investment windfalls -- in data centres and electronics automation -- as a result of US President Donald Trump's sweeping global tariffs, thanks to Thailand's open policies, says Charoen Pokphand (CP) chief executive Suphachai Chearavanont.
"The surprisingly good news amid the global tumult is we could see an influx of investments in data centres and electronic automation as Thailand is seen as a safe place for investment in Southeast Asia," he said.
The regional market consists of nearly 700 million people.
However, Mr Suphachai said the windfall might not occur under Prime Minister Paetongtarn Shinawatra's administration.
He said Trump's proposed 36% tariff rate for Thai imports will hit exports hard as the US is the nation's second-largest trading partner, with Thailand's trade surplus tallying US$45 billion last year.
Exports and manufacturing are expected to face the biggest knock, especially the agricultural, automotive and auto parts, machinery and equipment, and electrical appliances and electronics sectors.
Mr Suphachai said governments worldwide are scrambling to address the new tariff rates, with some considering shifting their manufacturing bases or businesses from China to friendlier shores, such as Southeast Asia.
For data centres, a stringent regulatory environment has made foreign investment in China's data centre market rather challenging, he said.
Chinese companies are reluctant to invest in Vietnam and the Philippines as the two countries and China have a long history of distrust and warfare, said Mr Suphachai.
"Data centre investments are likely to keep flowing into Thailand and Malaysia," he said.
For electronics automation including electric vehicles, Mr Suphachai said Thailand and Vietnam are both expected to gain thanks to the China+1 strategy, which sees Chinese companies diversify businesses into other promising economies such as India, Thailand and Vietnam.
Chinese companies prefer to invest in Thailand, he said, while Indonesia is an attractive destination for foreign investors based on its large population.
Mr Suphachai said the Board of Investment (BoI) needs to be very supportive by providing tax breaks, subsidies and other incentives to attract foreign investments, creating a favourable environment for manufacturing in Thailand and keeping it competitive.
The government should also enforce more clean energy usage among data centre service providers, as data centres consume vast amounts of electricity for data processing, he said.
"Developing Thailand to attract advanced digital talent and high-skilled workers to teach the local workforce their skills will enable Thailand to attract top global talent," said Mr Suphachai.
"If we don't develop, we will only earn power bills from data centre investments."
He said he is sceptical of the BoI's proposal to allow majority or even 100% foreign ownership of a company in Thailand, arguing foreign ownership should be limited to a maximum of 70%.
Meanwhile, Mr Suphachai said Trump's tariffs announcement spread economic anxiety and uncertainty among Thai businesses and consumers, as the tariffs will eventually be passed on to consumers.
"Businesses in Thailand hope our government can negotiate effectively with the Trump administration to mitigate any fallout from tariffs," he said.