Business

Thailand to Strengthen Trade Ties with South Asian Nations

Published

2 months ago

November 3, 2024

Thailand is making strategic moves to deepen its trade ties with South Asia, focusing on sectors that enhance food, energy, and human security across Southeast Asia. With a strong emphasis on partnership and mutual growth, Thailand seeks to position itself as a pivotal bridge between South and Southeast Asia in the global economy.

Thailand Expands Trade Relations with South Asian Nations

Thailand’s commitment to strengthening trade relations with South Asian countries reflects its focus on securing food, energy, and human resources and its desire to act as a trade and connectivity hub in the region.

Thailand’s Strategic Role in South Asia

With a population nearing two billion, South Asia is a region with significant geopolitical importance, serving as a bridge between East and West through both land and maritime routes. Thailand, positioned strategically between South and Southeast Asia, seeks to leverage this position to drive mutual growth and prosperity.

Collaborative Efforts Through BIMSTEC and ASEAN Plus Three

Through initiatives like the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the ASEAN Plus Three framework, Thailand engages with South Asia, building partnerships in sectors that impact around two billion people. These cooperative efforts reinforce Thailand’s role in uniting South and Southeast Asia for shared economic growth.

India as a Key Partner in South Asia

India is Thailand’s largest and most influential partner in South Asia. During Foreign Affairs Minister Maris Sangiampongsa’s recent visit, he met with India’s External Affairs Minister, Subrahmanyam Jaishankar, to discuss shared goals for regional development.

Deepening Bilateral Ties with India

Maris emphasized India’s critical role in Thailand’s foreign policy strategy, describing the nation as an essential partner in Thailand’s long-term objectives in South Asia. Discussions highlighted trade, defense collaboration, and sustainable development.

Defense and Military Cooperation

Thailand is also exploring joint military and defense training exercises with South Asian partners, including India and Pakistan. These collaborations are seen as essential to bolstering security ties and supporting regional stability.

Strengthening Relations with Bangladesh and Sri Lanka

In addition to India, Thailand has its sights on expanding trade and cultural ties with Bangladesh and Sri Lanka. Each nation brings unique potential and cultural connections that align with Thailand’s strategic goals.

Opportunities in Bangladesh

Thailand views Bangladesh as a promising market, despite current political and economic challenges. Maris identified opportunities for growth in trade, with Thailand planning a people-focused approach that includes cooperation on food and energy security.

Shared Cultural Bonds with Sri Lanka

Thailand and Sri Lanka share a rich cultural history, especially in Buddhism, which serves as a foundation for their relationship. The two nations plan to deepen cultural and economic partnerships, fostering stronger trade and investment ties.

A People-Centered Foreign Policy for Sustainable Growth

Thailand’s ambassadors and diplomats in South Asia have been directed to focus on a people-centered foreign policy based on three main pillars—food security, energy security, and human security. These core areas address Thailand’s commitment to sustainable and resilient regional ties.

Food and Energy Security Initiatives

Food security is at the forefront of Thailand’s agenda, with plans to increase exports of Thai rice and food products to South Asian markets. Additionally, Thailand is exploring opportunities in renewable energy collaborations, aiming to enhance energy security across the region.

Human Security and Tourism Growth

Human security initiatives include strengthening healthcare partnerships, focusing on medical tourism, and encouraging cultural exchanges. Thailand’s advanced medical services and cultural appeal have the potential to boost tourism with South Asian countries, generating economic benefits and promoting people-to-people connections.

Future Plans and Economic Prospects

Thailand’s proactive trade agenda aligns with Prime Minister Paetongtarn Shinawatra’s goals to expand connections with emerging economies. The next step includes hosting the fifth Meeting of the Sub-Committee on Trade and Economic Cooperation with Russia in early 2025, which will cover discussions with South Asian partners.

Connecting South Asia with Central Asia and Beyond

Thailand aims to serve as a trade bridge linking South Asia with Central Asian nations, including Kazakhstan and Tajikistan, which have economic ties with Europe. These connections highlight Thailand’s central role in a growing network of trade routes across Asia.

Conclusion: Thailand’s Path Toward Greater Trade Integration with South Asia

As Thailand strengthens its partnerships with South Asian nations, it’s poised to become a major player in regional trade, security, and cultural exchange. This multifaceted approach, supported by initiatives in food security, energy partnerships, and people-centered policies, signals a prosperous future for Thailand and its South Asian allies. Through expanded trade, joint defense initiatives, and cultural connections, Thailand aims to foster a resilient, interconnected Southeast Asian region.

Business

Thailand Commits to Becoming an AI Learning Hub

Published

3 weeks ago

December 5, 2024

Wadi

Ministers Announce Plans for AI Governance Collaboration

Thailand is dedicated to advancing global trust in artificial intelligence (AI) governance and establishing itself as a learning hub for AI through collaboration with UNESCO, according to Prasert Jantararuangthong, the Minister of Digital Economy and Society (DES). This initiative aims to enhance the ethical application of AI technologies while fostering skilled professionals in the field.

Goals for AI Workforce Development

The Ministry of Higher Education, Science, Research and Innovation (MHESI) has set ambitious goals to increase the number of AI-skilled workers by adding 30,000 engineers over the next three years. This plan includes generating 100 AI innovations valued at 40 billion baht and promoting AI adoption across 600 agencies nationwide.

Significant Increase in AI Adoption Rates

According to the AI Readiness Measurement 2024 report by the Electronic Transactions Development Agency and the National Science and Technology Development Agency, AI adoption plans among Thai organizations have reached 73.3%, reflecting an increase of nearly 20 percentage points year-on-year. This surge indicates a growing recognition of the importance of AI in various sectors.

Hosting the UNESCO Global Forum on AI Ethics

On Wednesday, the DES Ministry, MHESI, the Education Ministry, and UNESCO announced their partnership to host the 3rd UNESCO Global Forum on the Ethics of AI 2025, themed “Ethical Governance of AI in Motion.” This event is scheduled to take place from June 24 to 27, 2025, in Bangkok and will serve as a platform for knowledge exchange and collaboration on AI governance.

Commitment to Ethical AI Implementation

Prasert emphasized that Thailand’s commitment aligns with UNESCO’s AI Readiness Assessment framework, which is recognized globally. The country has recently introduced key frameworks such as the AI Governance Guideline for Executives and the Generative AI Governance Guideline for Organizations. These resources aim to ensure responsible and transparent implementation of AI at all organizational levels.

Multilateral Collaboration for Developing Countries

The upcoming forum is expected to foster multilateral collaboration and build AI governance capacity in developing countries. It highlights Thailand’s dedication to global trust in AI governance while positioning itself as a leader in ethical AI practices.

Integration of AI Technologies Across Industries

Suphachai Jaismut, vice-minister for MHESI, stated that Thailand is prepared to integrate AI technologies across various industries, driven by a commitment to advancing research and development (R&D). This integration is crucial as Southeast Asia’s digital economy continues to grow rapidly.

Addressing Challenges in the Digital Economy

While advancements in AI infrastructure are promising, challenges such as the digital divide and job displacement due to automation remain significant concerns. Xing Qu, deputy director-general for UNESCO, emphasized that building peace through education, science, and culture is vital in an era where AI increasingly influences societies and economies.

Business

Thailand to Finalise Free Trade Agreement with EFTA by January 2024

Published

4 weeks ago

December 1, 2024

Ashley Wings

Thailand is preparing to finalise a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) by January 2024. The agreement marks Thailand’s first FTA with a European trade bloc and is expected to bolster exports, attract investments, and enhance Thailand’s position in the global economy.

EFTA Partnership: A Milestone in Thailand’s Trade Strategy

Who Are EFTA Members?

The EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, offering Thailand access to lucrative European markets.

Commerce Minister Pichai Naripthaphan highlighted the FTA’s importance, describing it as a pivotal step for economic growth and trade expansion.

“This is Thailand’s inaugural FTA with a European bloc, setting a precedent for modern trade standards and sustainable development goals,” said Pichai.

Comprehensive Scope of the Agreement

What Does the FTA Cover?

The FTA includes 15 broad areas designed to modernise trade relations and foster sustainable development. Key areas include:

Trade in Goods
Rules of Origin
Investment Opportunities
Trade Facilitation
Intellectual Property Rights
Sustainability and SMEs Development

Future Expansion Opportunities

The FTA is seen as a stepping stone toward future trade agreements with other significant partners, including the European Union, advancing Thailand’s global trade ambitions.

Economic Impact of the Thailand-EFTA Trade Partnership

Surging Trade Figures

Between January and October 2023, trade between Thailand and the EFTA exceeded US$10 billion, accounting for 2.03% of Thailand’s global trade and reflecting a 23.22% year-on-year growth.

Key Thai Exports and Imports

Exports to EFTA: Jewellery, watches, canned seafood, machinery, cosmetics, and rice.
Imports from EFTA: Gems, gold, pharmaceuticals, scientific equipment, and fresh seafood.

The agreement is expected to further diversify and increase Thailand’s trade portfolio.

Next Steps: Approval and Implementation

High-Level Signing at WEF Davos

The FTA will be presented to the Thai Cabinet for approval before its official signing at the World Economic Forum (WEF) in Davos, Switzerland, in January 2024. Prime Minister Paetongtarn Shinawatra and Commerce Minister Pichai will attend the signing ceremony.

Ratification and Rollout

Following Parliamentary approval, the agreement will be ratified, paving the way for implementation and significant contributions to Thailand’s GDP growth.

A Strategic Vision for Thailand’s Future

The Thailand-EFTA Free Trade Agreement aligns with Prime Minister Paetongtarn Shinawatra’s vision of positioning Thailand as a global trade hub. By establishing this partnership, Thailand is set to achieve:

Increased export opportunities
Enhanced foreign investment
Strengthened trade ties with Europe

As the January deadline approaches, Thailand’s first European trade agreement symbolizes a bold step toward economic transformation, underscoring its commitment to modernisation, sustainability, and global collaboration.

Business

Thai Airways Secures 44 Billion Baht to Propel Post-Rehabilitation Future

Published

4 weeks ago

December 1, 2024

Ashley Wings

Thai Airways International (THAI) has secured approximately 44 billion baht through a share rights offering, marking a significant milestone in its recovery journey. The move is set to bring the national carrier closer to exiting its court-supervised debt restructuring process and resuming stock trading by mid-2025.

Thai Airways is offering 9.82 billion new shares to existing shareholders at 4.48 baht per share. This capital infusion represents the final phase of its restructuring, aimed at ensuring financial stability and market re-entry.

“This marks a critical step before the airline resumes operations as a publicly traded entity,” said a Cabinet source.

Government’s Role: Strategic Investment Without State Enterprise Status

Maintaining a National Flag Carrier

The Thai government has announced plans to increase its investment in Thai Airways while ensuring it does not revert to a state enterprise.

Current Stake: The Finance Ministry holds 47.9% of THAI shares.
Post-Restructuring: The ministry, the Vayupak Fund, and the Government Savings Bank will collectively own around 40% of the airline.

“This structure ensures Thai Airways remains a national flag carrier while avoiding direct state control,” confirmed Finance Minister Pichai Chunhavajira.

Debt Conversion and Shareholder Dynamics

Debt-to-Equity Swap Secures Creditor Support

Thai Airways’ creditors have agreed to convert approximately 53 billion baht of debt into equity as part of the rehabilitation plan. This move aligns with THAI’s efforts to stabilize its financial position.

The Council of State approved the recapitalization as a legitimate component of the restructuring process.
Despite debates over the Finance Ministry’s voting rights during the creditor meetings, officials clarified that the debt-to-equity swap remains incomplete, allowing the ministry to retain creditor status.

Path to Recovery

THAI is expected to exit rehabilitation by February 2025.
The airline plans to resume stock trading by May 2025, paving the way for a return to the public market.

Broader Implications for Thai Airways

Strengthened Financial Position

The successful share rights offering bolsters Thai Airways’ financial resilience, ensuring the airline’s ability to navigate post-rehabilitation challenges.

National Pride and Strategic Vision

The government’s balanced approach highlights its commitment to preserving Thai Airways’ status as a national carrier while encouraging operational independence.

Soaring Toward a Brighter Future

Thai Airways’ 44 billion baht share rights offering symbolizes its steady progress toward financial recovery and operational excellence. With strong government support and strategic restructuring, the airline is poised to regain its position as a leading player in the global aviation market by 2025. This pivotal moment underscores THAI’s resilience and its importance to Thailand’s economic and cultural identity.