Pacific Rim trade is slated to surge in the coming years as negotiations for the Trans-Pacific Partnership (TPP), the world’s largest free trade agreement (FTA), move forward. At present there are 12 signatories to the agreement, including Thailand’s largest export market, the US. Although Thailand has not yet committed to joining the agreement, recent statements from top politicians indicate…
The Thai government is implementing sweeping changes to its labour laws, with the minimum wage to change from a national rate to one dependent on the area, cost of living and localised economy. However, no provincial wages will be set lower than the current national minimum, and Thailand is currently recording some of the fastest wage growth in Asia, putting further pressure on its struggling exporters. National…
In the face of weakening global demand, a slowdown in China and falling export revenues, Thailand’s government is looking to improve its export competitiveness and further diversification, in addition to propping up its economy through promotion of domestic tourism and providing support for the agriculture sector. As part of its multi-pronged strategy, the government is also pushing the development…
An ambitious and far-reaching government stimulus package announced in late 2015 is targeting a return to the robust economic growth seen in the years following the Asian financial crisis. The government is encouraging lending across a host of segments and demographics, including small businesses and startups, an agricultural industry beset by falling commodities prices and low-income earners hoping…
The services sector in Thailand has mushroomed in recent years, with tourism and hospitality, retail and finance all seeing major expansion. The first of these, tourism, is responsible for some 10% of the country’s GDP, with 29.88m tourists visiting the country in 2015. This provided the government with some BT2.21trn ($66.5bn) in revenue in 2015. Rapid Development In 2013, Thailand achieved the…
While Thailand has made remarkable progress in recent years in combating poverty, boosting access to education and health services for all and enhancing quality of life, progress has often been unbalanced. Some areas remain better off than others and income inequality remains a persistent problem. However, sustainable solutions in business – and ideas on sufficiency economy – are helping address…
Thailand has seen phenomenal growth in its manufacturing industry over the last few decades, with the country establishing itself as a major base for both domestic and international industrial players. Key moments in this expansion were the decision to establish industrial estates in the 1970s; the switching to Thailand of much of Japan’s automotive manufacturing sector in the 1980s, due to lower…
Agriculture has a special place in the history of sustainability in Thailand. It was in this field that King Bhumibol Adulyadej first assembled the ideas behind sufficiency economy. From early in his reign, the king began to experiment with agricultural projects on the grounds of the Chitlada Palace in Bangkok. These included dairy schemes, developing new crop varieties and fish farming. In 1953, the…
After 15 years of intensive government efforts to extend credit across the nation, micro-loans are becoming increasingly popular among private sector lenders in Thailand. An increasing number of bank and non-bank businesses are now also moving into nano-finance, which provides small-scale loans without any collateral requirements. Although concerns remain about the high interest rates charged for some…
Despite the preference of many Thai consumers for bricks-and-mortar banks and teller transactions, mobile penetration and digital uptake are rising sharply, and digital platforms are expected to become the norm in Thailand’s financial services industry. New digital banking tools, such as mobile wallets and online payment platforms, indicate a promising future for digital banking expansion and offer…
