Thailand Unveils Fast-Track Investment Plan to Revive Sluggish Growth

 

 

Finance minister targets structural reforms and 480-billion-baht project unlock to push GDP beyond 1.5 per cent this year.

 

Thailand's finance minister has outlined an ambitious economic restructuring programme centred on fast-tracking stalled investments and developing new industrial sectors, as the government seeks to reverse declining growth potential that has dragged the economy to its weakest performance in decades.

 

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, speaking at the CEO Day event organised by Krungthep Turakij on Thursday, acknowledged Thailand's growth potential has deteriorated continuously from 5 per cent in the post-1997 period to just 2.7 per cent currently, with actual GDP growth this year forecast at merely 1.5 per cent.

 

"Thailand's economy today is like an old engine, an elderly driver, outdated technology, and excessive regulations—as if facing perpetual traffic jams," Ekniti said during his presentation on fiscal and financial strategies for economic revival.

 

The finance minister attributed the sluggish performance to deep-seated structural problems requiring serious remediation. 

 

To restore growth to the 4 to 5 per cent range, Thailand must increase its overall investment ratio back towards the historical level of 40 per cent of GDP, compared to just 23 per cent currently.

 

Central to the government's strategy is unlocking 480 billion baht worth of projects awaiting approval through the Board of Investment's Fast Track programme. 

 

Ekniti expressed confidence that successfully releasing these stalled investments would enable the economy to exceed 1.5 per cent growth this year.

 

 

 

 

The government has identified new target industries, dubbed the "New S-Curve," to serve as fresh economic engines. 

 

These comprise smart agriculture, electric vehicles, automation systems, data centres as the foundation for artificial intelligence, and comprehensive wellness and medical industries. 

 

A critical condition for all sectors is technology transfer to Thai workers and integration of small and medium-sized enterprises into supply chains.

 

Addressing Thailand's ageing society challenge—described by Ekniti as the "elderly driver" problem—the minister proposed the "Skill Bridge" programme to connect worker capabilities with business sector demands. 

 

The initiative emphasises reskilling and upskilling workers across all groups, including those aged 60 and above, to acquire new competencies the market requires.

 

The government also plans to invoke Section 17 of the Labour Act to provide special privileges for attracting highly skilled foreign workers and specialists, easing their entry to work in Thailand. 

 

This aims to address declining working-age population whilst increasing domestic purchasing power.

 

Clean energy infrastructure emerged as another urgent priority. 

 

Foreign investors are demanding renewable energy access, prompting the government to accelerate regulations allowing direct clean electricity trading. 

 

 

 

 

 

Ekniti proposed utilising the Thailand Future Fund infrastructure investment vehicle as a mechanism to raise capital for transmission systems and modern infrastructure without increasing public debt burden.

 

For regulatory obstacles, the finance minister outlined a fast-track approach to unlock problems in the short term before pursuing permanent legislative amendments to enhance business flexibility.

 

Ekniti emphasised that national advancement requires close collaboration between government, private sector, and the Bank of Thailand to restore Thailand's competitiveness. 

 

He noted that over the past three months, cooperation has enabled 99 per cent completion of Quick Big Win projects, with only the Thailand Investment and Services Advancement initiative—involving tax measures—remaining.

 

"Today, Thailand needs everyone's help. Over the past three months, we've been able to move forward through cooperation," Ekniti said. "I want to emphasise to the private sector that we must now move the country forward together through collaboration between government and private sectors so the country can progress."

 

The comprehensive reform package represents the government's most significant intervention yet to address what officials characterise as a structural crisis threatening Thailand's economic future, with success dependent on unprecedented coordination between policymakers, regulators, and business leaders.