Thailand must act as a facilitator to survive in the age of technological disruption rather than play the role of strict regulator and potentially hamper innovation, PM's Office Minister Kobsak Pootrakul said at a conference Monday.
"The country would have continued to survive if the world wasn't changing at such a pace. But now the structure needs to be readjusted otherwise we won't be able to catch up with the latest trends," he said at an event dubbed "Reorienting the Thai Economy to Prepare for the Age of Technological Disruptions".
The annual event is organised of by the Thailand Development Research Institute, a think tank.
Mr Kobsak said in the digitally-driven new economy, the government needs to let the private sector become the main player. The authorities should distance themselves and play more of a supporting role, he said.
"This would create an environment that attracts business ventures that will benefit the Thai economy," he said.
Mr Korbsak said the conditions are now ripe in Thailand for startups to flourish because the operating and living costs are still so low. Potential drawbacks include the country's bureaucratic system and archaic laws, he added.
"The lifespan of many laws is too long. Some should have been replaced a long time ago. The law needs to adapt to the changing landscape," he said.
He said the government is making moves in this direction, citing two major pieces of legislation due to take effect next year. One is a startup law to make life easier for entrepreneurs while the other will regulate innovation in the banking system and online payment technology.
However, the minister said the country also needs to balance its development so as not to "freeze" out older generations.
"As much as we are swept away by disruption and startups, we need to find a balance between the new world and the old since the older generations cannot be left behind," he said.
Mr Korbsak said the state must shows its willingness to make Thailand thrive.
"Sometimes we are too focused on protecting ourselves rather than striking an equilibrium for the advancement of the nation."
Entrepreneur Ruangroj Poonpol said more talented staff were also needed to help small companies.
Only about 1,200 of all the programmers who graduate from Thai universities each year have executable knowledge to work in the field and most land jobs with big companies, leaving startups struggling, he said.
"So smaller firms turn to foreign talent," he said.