While Thai people say “Jai yen yen”, or calm down - be patient, when someone is jittery, this strategy is no longer appropriate when facing increasing competitiveness in the region, former chairman of Joint Foreign Chambers of Commerce Thailand says.
With alarming messages highlighting the need for the government to take action to expedite digitalisation, Stanley Kang notes that opportunities are emerging in the market, but artificial intelligence, smart manufacturing, automation and digitalisation are issues which the government must address immediately.
Despite NVIDIA forming a partnership with a Thai company to bolster the country’s AI capabilities, Kang suggests that Thailand needs long-term strategies to ensure that the country is ready to embrace the challenges posed by digital transformation and evolving technologies.
“It is not just the industrial 4.0, but the industrial 5.0 era. It is not 5G, because everyone is talking about 6G now. How Thailand can connect and compete with countries which are already implementing faster transitions to a digital world is something for which the government should find a solution,” the business leader said.
“Increasing the minimum wage is not the right policy”
Thai government’s push to raise the daily wage to Bt400, to meet its election promise, has caused grave concern about the possible impacts on firms and the private sector in general and the policy will not enhance Thailand’s competitiveness, Kang noted.
As neighbouring countries are expediting the streamlining of their regulations to attract investment, Kang stressed that deregulation is important for Paetongtarn Shinawatra’s administration, if Thailand is to remain competitive among Southeast Asian countries.
“I want to voice that reskilling and upskilling our labour force, accelerating digitalisation and streamlining regulations are the necessary focal points now, not a wage rise,” Kang said.
With the transition to digitalisation, small and medium enterprises (SMEs) will face huge impacts, he claimed, adding that the government should help SMEs to survive and thrive during digital transformation.
Through technological support, knowledge management and, most significantly, deregulation, initiated by the government, Kang emphasised that SMEs could benefit from an easier business environment in Thailand.
One of the government’s key policies is the “digital wallet” scheme, which is providing a 10,000 baht taxpayer-funded welfare benefit to 45 million Thai citizens.
Kang said that, while delivering this initiative, the government should prioritise the simplification of regulations and laws to advance the country’s digital transformation.
“Restructuring for a digital society is required to boost efficiency, and valuable investment is what Thailand needs. Thailand no longer offers cheap opportunities. Thailand, instead, needs to provide efficiency and skilled labour for new investment,” Kang added.
Strong supply chains are a way to face tariff hikes
As potential tariff hikes by the new Trump administration in the US could affect the regional economy, including Thailand’s, Kang noted that Thailand would not need to worry about the impact, if the supply chain is strong and environmentally sustainable.
“Every company should solidify its supply chain, particularly with environmental and societal governance, since ESG can increase your competitiveness and bring more value to your products in the market,” Kang noted.
Transparency is another key strategy to address challenges in 2025, as Kang highlighted that global markets are demanding digital passports for products, declaring the origins of materials and processing information.
Despite analysts cautioning about an influx of cheap Chinese products into the Thai market next year, the business leader said that the solution lies in adding more value to Thai products through digitalisation, innovation, service and ESG.
Full interview:
