Future economic policy will focus less on stimulus programmes and more on medium-term reforms aimed at rebuilding the country's competitiveness and reducing income inequality, according to government economic ministers.
Deputy Prime Minister Somkid Jatusripitak said the government has issued numerous measures over the past month aimed at spurring economic growth, helping low-income farmers and boosting the property market.
"But you will see less stimulus programmes going forward, and more focus on the fundamental issues facing the economy," he told more than 1,000 business leaders and policymakers at the Post Forum 2015 Thursday.
- Business reaction: Praise for Somkid's pledge
Reforms, Mr Somkid said, will aim to shift away from the export-led growth model used over the past three decades to one that is more inclusive of the entire population.
"There are 30 million people who account for less than 10% of GDP. How can Thailand develop if we don't raise their incomes, if these people have no purchasing power?" he said.
Development of public services, including utilities and education, will shift away from a centrally-controlled system to one tailored to meeting community needs and strengths. Businesses meanwhile must shift away from low-value goods to higher-value, innovative products.
"Innovation has to drive competitiveness," Mr Somkid said. "We can't just be an economy driven only by a handful of large companies. How can we encourage new start-ups?"
Mr Somkid, who served as finance minister from 2001-2003 under the Thaksin Shinawatra government following a career focusing on national and business competitiveness, said Thailand was well-poised to benefit from regional integration under the Asean Economic Community initiative beginning next year.
"But we can't be a hub if we don't have connectivity," he said, elaborating that this involved not only physical linkages such as railways and roads, but also digital connectivity.
Global supply chains already run through Asean, Mr Somkid said. The key is how to raise Thailand's attractiveness for investment, by enacting economic reforms, improving infrastructure, curbing corruption and eliminating barriers to business.
"We're not an emerging economy. We emerged decades ago. But the problem is that [growth] hasn't been sustainable," he said.
Other ministers speaking at the Post Forum echoed Mr Somkid's message that the priority going forward would hinge on medium-term reforms.
Finance Minister Apisak Tantivorawong said tax reforms will aim at reducing loopholes and facilitating private sector investment.
He said next month the ministry will launch a framework to develop an electronic payments system nationwide, where national ID cards could be used as a payment card.
Low-income citizens could use the cards to receive public subsidies and services directly, increasing the efficiency and effectiveness of social welfare programmes.
Transport Minister Arkhom Termpittayapaisith said transport megaprojects are aimed at supporting long-term economic growth and facilitating connectivity not only within the country, but across the region.
By mid-2016, work would begin on a new East-West rail line linking Kanchanaburi, Bangkok, Laem Chabang and Sa Kaeo in the East. Other high-speed rail projects would be built connecting Mae Sot in Tak to Nong Khai and Mukdahan in the Northeast, as well as lines connecting Bangkok and Chiang Mai in the North and Hua Hin in the South.
Mr Arkhom said in Bangkok, the Purple light-rail mass transit line would begin trials in May 2016, with commercial services planned to begin in August. Another line would also be built connecting Don Mueang and Suvarnabhumi airports.
Industrial policies, meanwhile, will aim to encourage new investment by companies in technology and innovations.
Atchaka Sibunruang, the industry minister, said key industries such as automobiles, electronics and petrochemicals along the Eastern Seaboard would be promoted under the "super cluster" concept.
Chiang Mai and Phuket, meanwhile, would be positioned as IT hubs, with tax incentives offered to support the creation of digital clusters.
Ms Atchaka said current incentives could be extended to 10 or 15 years for certain "missing links" from the country's industrial base, such as hybrid engine technology in the auto sector. New tax reforms would also be enacted to help lure foreign talent and encourage research and development.
And as the government looks to upgrade the technological sophistication of the country's manufacturing base, other policies will be taken to support the growth of a "Digital Thailand".
ICT Minister Uttama Savanayana said policies would focus not just on technology, but connectivity, to enable knowledge sharing and creativity growth which in turn would spur innovation.
Community "telecentres" will be built nationwide to educate small businesses about how to market and sell goods online and encourage "life-long learning", the ICT minister said.
Mr Uttama said to strengthen Thailand's human capital, "start-up accelerators" would be created to foster the growth of new technology companies.
Laws would also be reformed to support e-commerce, while public services, starting in January for seven key ministries, would move away from paper documentation to a digital ID system for citizens, he said.
Overhauling Thailand's state enterprises is also a key part of the reform platform.
Mr Somkid, sixth from left, and economic ministers meet the Post Publishing Plc board of directors and executives at the forum held Thursday at Siam Pavalai, Siam Paragon.
Banyong Pongpanich, a member of the State Enterprises Policy Commission, said state enterprises controlled 12 trillion baht in assets and an annual investment budget of 5.1 trillion baht, or twice that of the government budget.
"State enterprises control a huge portion of the country's resources, whether it be in monopoly rights or national resources," he said.
But returns are meagre, showing the inefficiency of most organisations. Mr Banyong said those state enterprises that do make profits mostly do so as a result of monopoly power, while companies that do compete with the private sector, such as Thai Airways International, TOT Corp or the State Railway of Thailand, all face significant pressure.
Mr Banyong said under planned reforms, state enterprises would be required to increase transparency and disclosure, overhaul the selection process for their boards of directors and separate regulatory powers from operations.
The government has launched enough stimulus measures to sustain the economy — now it is time to get serious about reform, Deputy Prime Minister Somkid Jatusripitak tells the Post Forum 2015.photos by Patipat Janthong