TDRI calls for energy reform, fair industry and better regional ties
TDRI urges Thailand’s new government to reform power trading, enforce fair industry standards and ease regional tensions to boost growth.
- The TDRI recommends reforming the energy sector to allow freer trade of renewable electricity, which is crucial for attracting foreign investment and stimulating economic growth.
- It calls for stricter enforcement of industrial standards on foreign-owned factories to prevent pollution and ensure fair competition for domestic businesses.
- The institute urges the government to normalize relations with neighboring countries to ease cross-border trade, secure supply chains, and support Thailand's goal of becoming a regional manufacturing hub.
Somkiat Tangkitvanich, president of the Thailand Development Research Institute (TDRI), has outlined key policy recommendations for the incoming government, stressing that the public expects the next energy minister to reform the country’s electricity trading system, a move he described as vital for stimulating economic growth.
He noted that many leading international companies are interested in investing in Thailand but are held back by limited access to renewable energy, as purchasing such electricity from the market remains difficult.
Some existing investors may even relocate abroad if renewable power cannot be sourced. A shift towards a freer electricity market, Dr Somkiat added, would not only attract investors but also allow households to sell surplus solar power back to the grid, creating grassroots economic opportunities.
Turning to the Ministry of Industry, he emphasised the need to tighten enforcement against foreign investors whose factories fail to meet Thai Industrial Standards (TIS) and cause pollution. Such practices, he warned, harm Thai citizens and undermine domestic industry through price-cutting strategies that shift social and environmental costs onto the public.
On foreign affairs, he said the economic priority must be to normalise relations with neighbouring countries, reduce conflicts and ease cross-border trade and investment.
Border closures have disrupted supply chains based in neighbouring states, and prolonged tensions could prompt companies in Thailand to shift production bases elsewhere.
He concluded that easing tensions with neighbouring countries is essential if Thailand is to realise its strategy of becoming a regional manufacturing hub under the “Thailand Plus One” model.
