Structural reforms, deregulation and a cohesive national vision are needed to help Thailand navigate an increasingly volatile global landscape, prominent figures from government, industry and academia said at a recent event held by the National Press Council in Bangkok.
The looming threat of increased tariffs from the United States has compelled countries to take a hard look at their trade policies, Deputy Finance Minister Julapun Amornvivat told the gathering, held to mark the 28th anniversary of the Council.
Mr Julapun was representing Deputy Prime Minister and Finance Minister Pichai Chunhavajira, who was in Washington for trade negotiations ahead of a July 9 deadline.
The Thai delegation returned on Friday without an agreement, though Mr Pichai expressed confidence that a revised proposal from Thailand would meet with US approval.
“We must accept the old global trade balance is no longer viable,” Mr Julapun said. “Existing trade frameworks, whether they be bilateral, multilateral or under the World Trade Organization, are being challenged by current US policies. Thailand must work towards establishing a new equilibrium.
He stressed the need for a collective response, involving ministries including Finance, Commerce and Agriculture, alongside key private sector bodies such as the Federation of Thai Industries and the Thai Chamber of Commerce.
Despite the uncertainty, Mr Julapun expressed cautious optimism, saying he hoped Thailand would be subject to a maximum 10% import tariff rather than the proposed 36%.
Commenting on domestic political concerns, Mr Julapun dismissed claims the country had reached a political dead end. The constitution provides mechanisms to resolve ongoing issues, including the recent suspension of Prime Minister Paetongtarn Shinawatra by the Constitutional Court, he said.
“There is no dead end. The constitution clearly outlines a way forward. Whether people find the outcome satisfactory is another matter, but we can move ahead,” he said.
“We have an acting prime minister and a full cabinet actively managing the country. There is no disruption to the functioning of the state.”
He emphasised the need to respect judicial processes and move forward regardless of the court’s eventual decision. “Life does not end here,” he said.
‘Cancer’ of corruption
Chanin Chalissarapong, vice-chairman of the Thai Chamber of Commerce, delivered a frank assessment of business sentiment, describing corruption as a “cancer” eroding Thailand’s competitiveness.
He championed deregulation and digital transformation as key solutions to close corruption loopholes and improve public sector efficiency.
“Competitiveness will come through deregulation,” he said, urging the government to attract foreign investment, particularly in high-tech industries like artificial intelligence, quantum computing and biotechnology.
He highlighted opportunities in Thailand’s “new S-curve” sectors: agriculture, food, tourism and healthcare, with an emphasis on biotechnology to produce high-value goods such as bio-fertilisers and biopharmaceuticals. He stressed that regulatory reform is essential to attract global expertise and capital.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, echoed calls for reform, pointing to Thailand’s more than 120,000 laws and sub-regulations as a major obstacle to productivity.
He proposed an “omnibus law” approach to sweep away outdated regulations, similar to successful reforms in South Korea that spurred rapid economic development.
“Excessive regulation acts as a hidden cost, a chain holding Thailand back,” Mr Kriengkrai said. He urged the government to capitalise on Thailand’s strengths in the Bio-Circular-Green (BCG) economy, especially in biodiversity, and to view China as a lucrative market for Thai bio-products rather than merely a competitor. Clear and consistent government policies, he said, are critical to enabling industry growth.
Human capital deficit
Somchai Jitsuchon, research director at the Thailand Development Research Institute (TDRI), raised concerns about the country’s human capital, adding that over half of Thais aged over 40 have only a limited education, an impediment to national development.
He cited examples such as Alibaba founder Jack Ma’s preference for investing in Malaysia over Thailand due to superior human resources, and argued that “political quality reflects the quality of the electorate”.
Mr Somchai called for stronger civic education to improve democratic engagement and highlighted the dominance of tourism as a “forced choice”, resulting from a lack of workforce capacity in more advanced industries.
Natthapong Ruengpanyawut, leader of the opposition People’s Party, laid out a strategic vision for inclusive green growth, centred on grassroots investment and regional development.
His three-pronged plan comprises developing secondary cities to match Bangkok’s quality of life and attract private investment, installing one million solar rooftops within four years to cut electricity costs and spur the renewable energy sector, and expanding “economic forests” by one million rai through public-private partnerships to generate high-value timber and bio-materials.
People’s Party leader Natthapong Ruengpanyawut speaks at an event held by the National Press Council in Bangkok last week. (Photo: Anucha Charoenpo)