The Thai Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, says Thailand is pursuing structural reforms, attracting foreign investment and strengthening regional cooperation to withstand global economic shocks.
Ekniti said this while speaking on the Global Economy at the 2026 IMF/World Bank Group Annual Meetings in Bangkok on Thursday.
He said Thailand faced four major economic challenges: rising energy prices, geoeconomic fragmentation, higher interest rates and the rapid advancement of Artificial Intelligence (AI).
He said Thailand , which imports substantial amounts of oil, had been affected by rising energy prices and the resulting cost-of-living pressures.
Ekniti said that the fragmentation of global trade and supply chains had created opportunities for Thailand to attract foreign investment, although countries excluded from these networks risked losing out.
On interest rates, Ekniti said Thailand’s fiscal discipline had helped keep government bond yields relatively low compared with those in the United States and Europe.
He put Thailand’s 10-year government bond yield at around 2.3 per cent.
The minister also said Thailand’s participation in AI-related supply chains had created opportunities for economic growth, while warning that countries outside these networks could face disadvantages.
Ekniti said that macroeconomic stability alone was insufficient to secure sustainable growth, adding that structural reforms were needed to help businesses and workers adapt to changing economic conditions.
“We must turn shocks into opportunities by helping people and small and medium-sized enterprises adapt quickly to change.
“We need to accelerate the transition for businesses and workers, otherwise, the shocks will affect low-income households and small businesses most severely.
“Building resilience means helping people absorb shocks while accelerating the transition needed to prepare them for the bigger storms ahead,” he said.
On regional cooperation, Ekniti said Thailand would continue working closely with the Association of Southeast Asian Nations (ASEAN) and other international partners to strengthen trade, energy security and digital connectivity.
He said trade among ASEAN members accounted for about 22 per cent of their total trade, compared with approximately 60 per cent within the European Union, indicating significant potential to expand regional commerce.
“ASEAN is a growing region with a population of around 700 million people. We need to work more closely together and use our diversity to absorb shocks and respond to challenges,” he said.
Ekniti cited the ASEAN Power Grid initiative as an example of regional cooperation, explaining that countries can improve energy security by connecting electricity systems and sharing resources.
He said Laos’ hydropower resources could support regional energy needs through electricity connections involving Thailand, Malaysia and Singapore.
On digital transformation, the minister said ASEAN countries needed to cooperate more closely to develop digital infrastructure and reduce dependence on technology sourced from outside the region.
He cited the ASEAN Digital Economy Framework Agreement as an initiative to connect digital systems and support the development of the regional digital economy.
Ekniti also highlighted opportunities to link national digital identification systems and expand digital payment services, noting that Thailand has already established QR payment links with Singapore and Malaysia.
He said Thailand remained committed to opening its markets to international partners, including the European Union, while supporting international rules and cooperation.
Speaking on workforce development, Ekniti said Thailand was seeking to channel foreign direct investment into emerging industries, including AI, smart electronics and future mobility, particularly electric vehicles.
He said foreign investment applications in Thailand had increased by 47 per cent during the first half of the year, reaching approximately 44 billion dollars.
“The government is working to translate these investment opportunities into greater skills and productivity for Thai workers and businesses through knowledge transfer and workforce development,” he said
Ekniti said that the Thai government had introduced the Skill Bridge programme to connect foreign investors with local capabilities, and strengthen cooperation with Thai universities.
“The programme will also upgrade workers’ skills and help small and medium-sized enterprises enter the supply chains of investing companies,” he said.
He said the initiative was intended to ensure that Thai workers and businesses could benefit directly from investment rather than remain on the sidelines of economic transformation.
He said that the government was also pursuing reforms to simplify investment approvals and reduce excessive bureaucracy.
Ekniti said that private investment had grown by more than 10 per cent for two consecutive quarters, describing investment-led policies and structural reforms as central to efforts to put Thailand’s economy back on track.
“It is like a high-speed train arriving in Thailand, with many people waiting on the platform.
“ We are trying to open more doors so Thai people and businesses can get onto that train and use the opportunity to improve productivity.
“That is how we intend to use these opportunities to transform the Thai economy,” he said.
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