Actual investment jump strengthens Thailand’s growth outlook

Actual investment moves from approvals to real spending

Thailand’s investment recovery is gaining traction as actual investment rose 18% to around 260 billion baht in the first quarter of 2026, signalling that more approved projects are now being translated into real capital spending, jobs and supply-chain expansion.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the latest figures reflected growing confidence among both Thai and foreign investors, who continue to see Thailand as a “safe haven” for investment amid global economic volatility.

He said the improvement was being driven partly by the government’s accelerated investment-promotion efforts, especially the “BOI Fast Pass” mechanism, which is beginning to deliver concrete results.

BOI Fast Pass helps unlock capital

Ekniti said Thailand had previously attracted a large number of applications for investment promotion, but not all of them had turned into actual investment. The latest figures suggest more approved capital is now being deployed on the ground.

He said Thai businesses were moving more effectively into a new industrial era, supported by the arrival of more complete supply chains. This, he said, creates an important opportunity to upgrade the country’s economic structure.

If the government can continue removing regulatory obstacles and investment barriers, Thailand’s growth potential could rise towards the target of “3% plus”, with clearer changes expected over the next one to two years, he said.

“Investment promoted through the Board of Investment accounts for around 25-30% of total private investment. Therefore, actual investment growth of 18% is a key driver for Thailand’s economy going forward. The government is targeting actual investment growth of 5-6% this year from investment promotion applications,” Ekniti said.

Thailand seeks opportunity amid global shocks

Speaking in a keynote address at SUBCON Thailand 2026, Ekniti said the world had not faced changes and shocks as severe as those seen today in more than two decades.

He pointed to geopolitical conflicts that have widened into geoeconomic impacts, along with energy price crises and inflation that have affected economies worldwide.

However, he said these pressures also create an opportunity for Thailand, as global investors are looking for countries with stability, security and the capacity to support long-term investment.

Thailand still has several key strengths, including infrastructure, an established industrial base and a strategic location in the region, he said.

Government and industry work to remove barriers

Ekniti said the next challenge is to turn “investment promotion applications” into “actual investment” that generates business profits, creates jobs and spreads benefits to SMEs and the wider public.

The government is working closely with the private sector, particularly the Federation of Thai Industries, to remove regulations that obstruct investment and push for more modern, business-friendly legal reforms.

He described the “BOI Fast Pass” as a key mechanism to facilitate investment, comparing it to an “Easy Pass” that reduces approval and licensing procedures to make them faster.

Ekniti said the success did not come from additional government spending, but from cooperation between state agencies and the private sector to improve joint working processes.

“The results of the measure have become clear since the fourth quarter of last year, when private investment returned to growth of more than 6%. This helped Thailand’s economy, which had previously been expected to grow by only 0.3%, expand by as much as 2.5%,” he said.

‘5T’ strategy to prepare businesses for change

Ekniti also proposed a “5T” approach to help Thai businesses and SMEs adapt to changes in the modern economy, including AI technology, demographic shifts and the transition to clean energy.

The first element, Target, means setting clear goals and focusing on industries where Thailand has potential and expertise, such as modern agriculture, electric vehicles, smart electronics, aviation and robotics.

Transition refers to the shift towards clean energy. Ekniti said this is not only about sustainability, but also a “survival route” for the Thai economy as it deals with future volatility in fossil fuel prices.

Transform means reshaping businesses through investment in technology, digital systems and AI, alongside workforce upskilling to meet the needs of the new global economy.

Transparency means the public sector must disclose project information for scrutiny, while the private sector can use digital technology to track environmental data, carbon emissions and production efficiency to strengthen credibility and competitiveness.

The final element, Together, refers to cooperation across all sectors, both public and private, to help Thailand regain a strong position on the global economic stage.