The Thai economy faces challenges this year potentially even more significant than during the pandemic, says Boonsithi Chokwatana, chairman of Saha Group, the country's leading consumer goods conglomerate.
He said the Land Bridge project including the Kra Canal could lift the economy in the medium term.
While the global economy appears grim, the uncertainty might not last for years and US trade policies must be monitored, said Mr Boonsithi.
“It is essential for Thailand to remain neutral and not align with a particular side as this strategic positioning can be an advantage,” he said.
Thailand has a large economic base, which might result in slower growth rates this year compared with smaller competitors with a tiny base, Mr Boonsithi noted.
He said he views the government’s digital wallet scheme as a handout seeking populist support.
Thailand could develop various sectors, but if the country focuses on the cash handout scheme, foreign investors might lose interest, he added.
However, he said the Land Bridge project has the potential to propel the economy.
“We have talked about this for quite some time, but there has been no action. This project is necessary,” Mr Boonsithi said.
He said sea freight from China is growing, but is reliant on the Strait of Malacca, which may be unable to handle increasing demand.
Mr Boonsithi advocated broadening the economic corridor arrangement beyond the Eastern Economic Corridor (EEC) to southern regions, as exports from these areas would have easier access to European markets without travelling around the Strait of Malacca.
He said the Japanese economy is not in its best shape, pointing out that it is facing higher rice prices, for example, presenting an opportunity for Thailand to increase its food exports.
He said Saha Group is trying to reduce garment production due to lower competitiveness when compared with its foreign counterparts.
Meanwhile, the food business continues to post strong sales, he noted.
The company is focusing on marketing food, pet care and healthcare products while pursuing cooperation with partners.
For tourism, with a rising elderly population, he suggested Thailand should aim to attract retirees not merely for tourism but to establish a welcoming environment for them to consider as a place of residence.
Thailand’s gross domestic product (GDP) is projected to grow by 1.8% this year, according to the first-quarter report from the National Economic and Social Development Council (NESDC).
However, the growth is being held back by high levels of household and business debt. In the second half of the year, growth may further decelerate due to a weaker global economy, trade protection policies, and risks associated with instability in the agricultural sector.
Saha Group is set to host the 29th Saha Group Fair and Fest, dubbed the “Big Shop Big Show” shopping event, from June 26 to 29 at Halls 98-100, Bitec Bangna, said Thamarat Chokwatana, president and executive chairman of ICC International Plc.
The company plans to sign 10 memoranda of understanding (MoU) during the event with domestic and international partners. These agreements will cover real estate, technology, education, e-commerce and service businesses.
Among these collaborations is an MoU between Dusit Thani Plc and Saha Tokyu Corporation, a joint venture company between Tokyu Corporation in Japan and the Saha Group, for hotel management of Dusit Suites J-Park Sriracha.
The objective is to explore business opportunities and land development in the EEC in Si Racha, Chon Buri province.