Pichai Naripthaphan expressed concern that the volatile global political situation might lead to intense warfare and called for peace. He pointed out that Thailand faces structural problems requiring urgent correction and recommended the accelerated application of modern technology.
On 21 Jan 2024 GMT+7, Pichai Naripthaphan, former Minister of Commerce, delivered a keynote speech at the International Conference on Politics Business and Sustainable Development (ICPBS 2026) held at Suan Sunandha Rajabhat University. The audience consisted mostly of foreign academics. He noted that political volatility worldwide has intensified since the beginning of the year, adding to last year's existing turmoil caused by issues such as the Trump-era tariffs, the Russia-Ukraine conflict, China-Taiwan tensions (with Japan also involved), deadly protests in Iran, and disputes between Thailand and Cambodia. This volatility has further increased due to the U.S. deploying troops to apprehend Venezuela's leader and his wife for prosecution in the U.S., threats to seize Greenland if a purchase from Denmark fails, prompting NATO members to defend Denmark, thereby shaking NATO's stability. The U.S. also raised tariffs on NATO countries defending Denmark. The situation in Iran has worsened with over 12,000 deaths, raising concerns over possible U.S. intervention. Additionally, China might use similar justifications to the U.S. for a potential Taiwan invasion (which he hopes will not happen). Japan's Prime Minister, Mrs. Takaichi, riding a surge in popularity (75-78%) after pledging to defend Taiwan, announced a parliamentary dissolution for new elections. Although the Thailand-Cambodia dispute seems calm, it could flare up again.
He observed that leaders worldwide exploit conflicts to boost their and their parties' popularity, which is worrisome as it could escalate into broader wars. He hoped this forum would serve as a call for the international community to reduce conflicts and avoid the use of military force or severe warfare, urging the promotion of peace.
Regarding ASEAN countries, the unrest in Myanmar remains unresolved despite the military government’s landslide election victory, which the international community recognizes as merely staged and unlikely to bring peace. The Thailand-Cambodia tensions have also been used to garner political support ahead of elections. He expressed hope that Thailand and Cambodia will ultimately find resolutions to their conflicts.
Pichai further stated that Thailand’s political, economic, and sustainability challenges have accumulated over a long period. The country has faced political instability for over a decade. He has repeatedly warned about the 'boiled frog' scenario and noted Thailand’s misfortune of political problems amid rapid global change—a reality clearly visible today.
Thailand’s economy has grown slowly, averaging only 1.9% GDP growth from 2014 to 2023, with shrinking investment and very low export growth. Household debt has risen due to higher expenses without increased income, and many businesses carry high debts exacerbated by the COVID crisis. Structural problems include the middle-income trap, which requires much higher economic growth to become a high-income country; an aging population with over 20% aged above 60 and a death rate exceeding birth rate causing population decline; very high household debt at 87-88% of GDP that must be addressed to progress; low labor productivity and lack of innovation stemming from poor education misaligned with national direction; severe wealth inequality where 1% holds 67% of national assets; over-reliance on exports and tourism due to low domestic consumption constrained by debt; an inefficient and oversized bureaucracy when globally governments are downsizing and improving efficiency; few champion products and lack of own brands; corruption eroding the economy; and recently, the problem of scammers that the private sector demands be addressed. These issues must be urgently tackled, though solutions cannot be implemented quickly. Rapid action is necessary to prevent Thailand from becoming outdated and falling behind if growth remains low for many more years. The country must turn to modern technology to escape the middle-income trap and become a high-income nation.
Pichai added that, according to international principles, to become a high-income country, Thailand must increase exports, investment, and tourism. Exports and investment are directly linked, particularly investment in modern technology industries such as semiconductors, PCBs, data centers, AI, electric vehicles, clean energy, and electronics. He has actively encouraged foreign investors to invest in the PCB industry since early 2024. Currently, PCB investment in Thailand is substantial, potentially making Thailand the largest producer. Recently, the Board of Investment approved ZTD, a major global PCB manufacturer, to invest over 65 billion baht in Thailand. He hopes for increased semiconductor business clusters. He has also promoted and supported data center and AI businesses, leveraging GPU and TPU technologies to make Thailand a regional hub.
Studies show that data centers and AI, rapidly developing particularly in the U.S. and China, offer a way forward for Thailand’s economy. Thailand must accelerate development in these areas following leading countries to overcome current problems and advance rapidly toward becoming a high-income nation. Thailand missed the initial wave of e-commerce and unicorn startups, limiting economic expansion. Therefore, it cannot afford to miss the data center and AI wave as well. He firmly believes that if Thailand advances in modern technology industries, the country will regain strength politically, economically, and in sustainable development.