BANGKOK, February 22, 2022 – Accelerating the pace of digital and disruptive technology while advancing the circular economy in key areas could bring Thailand up to $ 3.4 billion in investment flows, savings and income, according to a new World Bank report. These market opportunities also support the country’s climate goals and will contribute to a sustainable growth trajectory.
A report by IFC and the World Bank on Thailand’s Private Sector Diagnosis (CPSD) said the country should promote a new model of innovation-driven growth while addressing existing investment constraints to create better jobs and achieve its goal of becoming high-ranking. country of income.
“With COVID-19, digital and subversive technologies have been key in keeping businesses afloat,” said Archimandrite Termpitaitopaits, Thailand’s finance minister. “Adopting and expanding these approaches can help Thailand harness the market power of global megatrends such as automation and economic decarbonisation, which will push Thailand to move to domestic and global value chains with higher added value.”
In the future, according to the report, accelerating the introduction of digital technologies could bring to Thailand an additional capital inflow of $ 1.8 billion annually. Much of this will come from new investments in mobility technology, big data and analytics, health technology, digital media and entertainment, and from expanding sectors where Thailand already ranks well among regional counterparts including e-commerce, fintech, and others.
“By investing in market-friendly infrastructure, Thailand needs to develop skills for the future,” said Birgit Hansl, World Bank Country Manager for Thailand. “We need to prepare young people to be the next generation of coders, digital creators and technology entrepreneurs to drive Thailand’s sustainable, sustainable and inclusive path.”
The report also shows that adopting a circular economy could lead to cost savings and additional revenue – up to $ 1.6 billion – for the private sector, especially in traditional sectors such as food and agriculture, construction and electronics. In addition, Thailand can explore a number of areas, including regenerative agriculture, organic waste and others, to gain significant opportunities for the circular economy.
“To realize Thailand’s vision of high growth, it is also necessary to remove key investment and sectoral constraints affecting the private sector,” said Jane Yuan Xu, IFC’s head of Thailand and Myanmar. “Critical reforms will help create high-quality jobs, increase women’s participation, develop innovative markets and ensure sustainable growth.”
The report emphasizes that strengthening the implementation of structural reforms will help create favorable conditions for business, promote investment in digital innovation and circular technologies. Building on existing analysis and extensive consultation, accelerated reforms are urgently needed in the following areas: encouraging competition in the market, lifting restrictions on foreign direct investment, providing access to finance for innovation and enhancing skills in the future.
On Private Sector Diagnosis (CPSD)
The World Bank’s Private Sector Diagnostics Program aims to identify sectors where private sector solutions can create or expand markets and make a significant contribution to development. Diagnosis uses a structured approach to analyze key sectors with unrealized private sector potential in each country, select multiple sectors for more in-depth analysis, and make recommendations for policy action. The sector analysis, conducted with the significant involvement of World Bank teams and external partners, including governments, provides valuable insights into the challenges and opportunities for better use of the private sector to achieve development goals. The CPSD is in line with the World Bank’s Maximum Financing for Development (MFD) approach, which focuses on private sector solutions to achieve the 2030 Sustainable Development Goals.
About the World Bank
The World Bank provides funding, global knowledge, and long-term commitment to help low- and middle-income countries eradicate poverty, achieve sustainable growth, and invest in opportunities for all. We include the International Bank for Reconstruction and Development (IBRD), the world’s largest development bank, and the International Development Association (IDA), one of the largest sources of funding for the world’s poorest countries. Together with other World Bank Group institutions as well as public and private sector partners, we help build solutions to 21st century global challenges in all major development sectors. A world where no one lives in poverty and everyone has the opportunity for a better life is within our reach.