The People’s Party unveiled its Offset Policy vision to transform the defense budget into an economic engine, advancing Thailand toward becoming a Middle Power. The policy seeks to move beyond merely purchasing weapons, instead investing every security baht into technology development, job creation, and national industry growth.
3 July 2026 GMT+7 Mr. Natthapong Ruangpanyawut Leader of the opposition in the House of Representatives and head of the People’s Party, delivered a special lecture titled “Thailand’s Security and Diplomatic Strategy in the New World Era.” He announced a vision to utilize the Offset Policy to convert the defense procurement budget into an economic engine, propelling Thailand to become a middle power.
Mr. Natthapong further explained that the Offset Policy is a compensatory procurement measure, a policy whereby weapon-buying countries impose additional conditions beyond direct arms purchases. Sellers must provide economic benefits in various forms back to the buyer country. Thailand cannot remain merely a weapons buyer; it must develop its own defense industry. The Offset Policy is a critical step in building Thailand’s defense industry.
Moreover, Thailand can use the Offset Policy alongside other allied countries to forge a new form of diplomacy among middle power nations such as Japan, South Korea, Australia, Israel, and Sweden. These countries possess advanced military technology and are sincere strategic partners willing to transfer technology to Thai engineers, establish production bases, and create weapons research and development centers in Thailand. This ensures that taxpayer investments yield maximum value.
At the same time, Mr. Natthapong mentioned the “Triple Helix” model linking government, private sector, and academic research through the Offset Policy. He cited South Korea’s collaboration among government, research institutions, and private companies, which led to developing its own aerospace industry under the KF-21 project and expanded cooperation with Indonesia, transferring technology and making Indonesia a partial production base. This exemplifies cooperation among middle power nations.
The People’s Party has proposed a draft Economic Cooperation and Industrial Development Act requiring major government procurement to include Offset Policy conditions. This applies not only to military equipment purchases but also to acquisitions by other agencies. The National Economic and Social Development Council (NESDC) is designated as the central body to oversee Thailand’s Offset Policy requirements.
“Thailand is ready in every aspect. What we need is a clear long-term vision so all sectors can move forward together with direction. We must have diplomacy lead the military and technology lead development,” he said.
The lecture was held at a seminar titled “Gathering Opinions on the Draft Economic Cooperation and Industrial Development Act,” organized by the House of Representatives’ Military Commission at the Parliament building. Private companies in the defense industry, related associations, universities, and representatives from several embassies attended.
The event also included a panel discussion featuring Associate Professor Dr. Pramuan Sutijaruwat, MP for the People’s Party and former professor at Chulalongkorn University’s Faculty of Engineering; Air Marshal Piboon Worawanpreecha, managing director of Aviation Industry Co., Ltd.; and Krit Kulhirun, assistant general manager of Chaiseri Metal and Rubber Co., Ltd. They discussed the principles and procedures of Offset Policy and shared experiences both as technology suppliers and recipients through the Offset process. In the afternoon, domestic and international weapons manufacturers participated in a workshop to deepen understanding of the Offset Policy, including summaries of the draft Act and steps each sector must take for future military procurement in Thailand.
