PUBLISHED : 2 Mar 2025 at 12:43
Prime Minister Paetongtarn Shinawatra has identified the key factors behind Thailand’s sluggish economic growth and emphasized her commitment to enhancing the nation’s economic landscape.
During her recent “Empowering Thais” broadcast, the prime minister revealed that Thailand’s gross domestic product (GDP) expanded by only 2.5% last year, attributing this to a lack of investment in new industries and insufficient preparation for future sectors over the last decade.
“While Malaysia has been proactive in developing its semiconductor sector and Vietnam has invested in coding education, Thailand has lagged in these critical areas,” Ms. Paetongtarn stated. “It is essential that we upskill and reskill our workforce.”
She called on the private sector to collaborate with the government on national economic development, highlighting the necessity for commercial banks to facilitate loans that would empower small and medium-sized enterprises to boost their investment.
The prime minister also noted that budgetary constraints contributed to the slow GDP growth, as a significant portion of the national budget is allocated to fixed expenditures.
Her administration is focusing on managing fixed costs and reallocating remaining funds toward investments to attract foreign investment.
Last year, Thailand welcomed foreign investment projects totaling 1.13 trillion baht, the highest in a decade, with notable companies like Google, TikTok, and Nvidia planning to invest this year.
Ms. Paetongtarn expressed her determination to fulfill her term in office with a strong focus on stimulating investment, asserting that significant growth in Thailand’s GDP is achievable.
