"Sustainomy": Thailand urged to redesign growth model around sustainability

A growth model under pressure

Thailand’s old growth formula is coming under mounting pressure from rising debt, inequality, technological disruption and environmental risk, raising urgent questions over whether the country can continue relying on the same economic model in a world being reshaped by sustainability standards, artificial intelligence and climate stress.

That question was at the heart of the “Sustainomy: Walk the Thought” forum, where Piyachart Isarabhakdee, chief sustainomist at BiOST and author of Sustainomy, called for a redesign of the economic system so sustainability becomes part of the growth engine, rather than a separate activity added after profits have been made.

The forum was held at Kinokuniya Siam Paragon on May 16 and included a meet-the-author session, a Sustainomy Dialogue and a book-signing session. The dialogue featured Piyachart and Don Nakornthab, assistant governor of the Monetary Policy Group at the Bank of Thailand.

Sustainability as part of growth

Piyachart said the world was entering a period in which the old answers to economic growth were no longer enough. Current growth, he argued, has become increasingly dependent on innovation and technology that replace human labour, reducing workers’ share in generating GDP.

At the same time, growth has been built on resource consumption and accumulated debt, leaving future generations to bear the cost while weakening the planet’s ability to recover. The danger, he warned, is that these consequences may arrive sooner than many expect, possibly within the current generation.

For Piyachart, the challenge is not simply to make the economy larger, but to change the way growth is defined. Sustainability, he said, should no longer be treated as a side project or public-relations exercise, but as a core condition for whether growth can continue at all.

He said businesses could no longer focus only on finding the next 100 billion baht in revenue. They must also protect the 100 billion baht they already have, as risks from climate change, technology, debt and global rules become more severe.

People and planet in the economic engine

The core of Sustainomy is to bring “People” and “Planet” directly into the economic engine, rather than allowing the economy to expand first and then using leftover resources to repair social or environmental damage afterwards.

Piyachart’s argument is that the old growth model separates profit from responsibility too sharply. In the new model, social well-being, human capability and environmental regeneration must be treated as sources of future value, not as costs that reduce competitiveness.

He framed the shift as a move from growth that destroys the future to growth that creates the future, with human capital becoming increasingly important in an age when AI and digital tools are becoming widely available to everyone.

From high income to high quality

Piyachart said Thailand should move beyond a narrow ambition to become a high-income economy and instead focus on becoming a high-quality economy. That would require a better portfolio of future industries, new markets and a stronger role for emerging economies in shaping global rules.

One key area is alternative energy. Higher oil prices have already made demand for electric vehicles and solar power more serious, turning clean energy from a distant environmental issue into an economic necessity.

Another opportunity lies in preventive healthcare. Rather than depending only on a reactive system that treats people after they fall ill, Thailand could create new markets in which people invest in health before sickness occurs. This would open new growth space without forcing businesses to compete only in saturated markets.

Piyachart also pointed to the importance of emerging market and developing economies. Thailand, he said, should use its position to help shape new global rules, instead of being forced to choose sides in conflicts between major powers.

What businesses and government must do

The shift would affect every major stakeholder. Businesses will need to move beyond a narrow focus on maximum profit and build models that can answer sustainability challenges, especially as AI becomes a common tool available to all.

In such an environment, the real difference between organisations may no longer be access to technology alone, but the quality of human thinking and the ability to use those tools effectively. Human capability, not just digital capability, will become a more important source of competitiveness.

Government, meanwhile, will need to shift from being a commander to being a supporter. Piyachart said the public sector should help create genuine public-private partnerships and invest in the skills needed to prepare people for quality work in the private sector.

He cited Singapore’s approach to skills investment as an example of how a state can support long-term restructuring. Such investment, he suggested, can be more sustainable than relying mainly on short-term cash handouts.

Don warns Thailand is at a turning point

Don Nakornthab, assistant governor for monetary policy at the Bank of Thailand, brought a central banker’s perspective to the discussion. His official responsibilities include overseeing the central bank’s macroeconomic assessments and monetary policy recommendations, making his warning especially relevant to Thailand’s long-term growth outlook.

Don said Thailand was reaching a turning point. The country had moved beyond the era of easy growth and was now facing deeper structural constraints, particularly accumulated debt and insufficient investment in human capital.

Household debt, he said, had climbed to among the highest levels in the world, while public debt was moving closer to the government’s borrowing limits. Large companies were in a stronger position after learning from the 1997 financial crisis, but small and medium-sized enterprises still needed quality capital to help them restructure.

He stressed that any new borrowing must serve a clear purpose and create real value. If money is spent wastefully, the country will not move forward.

From easy answers to essay questions

Don compared Thailand’s current economic challenge to an exam that had changed from multiple-choice questions to essay questions. In the past, policy answers may have seemed more straightforward. Today, the country needs deeper analysis, structural reform and better coordination across the whole system.

The automotive industry shows how quickly old strengths can become vulnerable. Thailand was once proud of being the “Detroit of Asia” because of its combustion-engine vehicle industry, but that model is now being challenged by the global shift towards electric vehicles.

Energy is another area where Thailand has little room for delay. While a major economy such as the United States may not need to rush its energy transition because of large oil reserves, Thailand is an oil-importing country. That makes a faster move towards alternative energy and clean technology essential for reducing costs and protecting competitiveness.

Sustainability as survival, not a burden

Don warned that if Thailand failed to adapt to global sustainability standards, it risked being left behind and losing opportunities in world trade.

He said the government needed the courage to set national policy and shared long-term goals, rather than relying mainly on short-term stimulus. Businesses, in turn, must move beyond cost-cutting and create innovations that respond to sustainability demands, especially if they want to protect international customer bases.

For ordinary people, the transition will also matter. Economic volatility and household debt will continue to affect daily life, making reskilling and adaptation necessary for survival in a more uncertain economy.

The forum’s conclusion was that sustainability is no longer a burden to be carried after growth has been achieved. It is becoming the condition for whether growth can continue at all.

Thailand’s challenge, therefore, is not the responsibility of one sector alone. It requires a shared redesign of the economic system, so the country can build a future that Thais can be proud of both at home and on the global stage.