Mr. Aekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, revealed that the intensifying and faster-than-expected Middle East war has forced not only Thailand's industrial sector but also its agriculture and the entire country to adapt quickly. Therefore, Thailand's industrial sector must accelerate adjustments in three key areas.
1. Investment in clean energy, which the government will both invest in and support.Trading operations.Direct purchase and sale of renewable energy electricity between buyers and users, known as Direct PPA.And the establishment ofan infrastructure fund to invest in power transmission lines, aimed at attracting foreign direct investment (FDI), as there is increasing interest in relocating investments to Thailand and the ASEAN region.
2. Adaptation in digital technology andAI.The government will encourage large companies to assist smaller businesses through a 'big brother helps little brother' program, providing tax incentives.It will also provide subsidiesto the private sector for technology upgrades.
3. Transition to green industries, with the government promoting increased use of ethanol produced from sugarcane and cassava to blend into fuel, leveraging Thailand's substantial agricultural output.Agricultural sectorproducts, which will help upgrade Thai agricultural goods. This also includes promoting electricity production fromsolar powerusing floating solar panels, orSolar Floating.
Meanwhile, Thailand faces three main challenges: geopolitical conflicts affecting the energy crisis, rapidly evolving technology andAI,and increasingly severe natural disasters, with drought expected this year.
Additionally, he noted that an urgent meeting will be held today at the Government House to discuss strategies for managing rising oil prices. In the short term, the government continues to use the fuel oil fund mechanism to stabilize prices. Previously, measures were announced for 15 days, but due to global crude oil prices rising above $100 per barrel this morning, further discussion is necessary.On mechanismsfor management both short and medium term, to minimize impacts on the public and businesses.
Mr. Aekniti said every crisis presents opportunities. History shows such changes are not new, including past energy crises Thailand has experienced. However, the current Middle East conflict has accelerated and intensified changes more than expected, especially with the return of an energy crisis. Thus, we must learn how to adapt to survive.To attractinvestment relocating from abroad.
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