A Preliminary Case for Thailand Entering Its Second Lost Decade
Here is why I think Thailand might be entering a second consecutive lost decade. The first lost decade, between May 2014 and August 2023 was largely brought about by coup leader Gen Prayut Chan-o-cha, who ushered in a period of relative economic stagnation and uncertainty. He basically, and illegitimately, ruled for nine years. Fast-forward to […] The post A Preliminary Case for Thailand Entering…
Thailand might be entering a second lost decade, much like the first one that lasted from 2014 to 2023. This new period is largely due to former Prime Minister, now military leader, Gen Prayut Chan-o-cha's nine-year rule which brought about stagnation and uncertainty in the country's economy. Currently, Thailand is lagging behind major ASEAN economies in terms of economic growth, having seen a mere 1.9% increase in the second quarter of this year.
Tourism, once a booming sector, has seen a 3% decline this year, while Vietnam and Japan are experiencing growth in the same area. Toyota Thailand has also expressed its concern, requesting a fair and competitive tax policy from the government, as it faces increased competition from Chinese EVs.
Moreover, Indonesia is actively attempting to lure Japanese automakers away from Thailand, offering them incentives. Thailand's automotive industry has been a source of jobs for many over the past half-century, and the country is struggling to maintain its competitiveness. The Thai government has been urged to lower excise taxes for carmakers operating domestic factories and using locally produced auto parts.
However, this move came only after Japanese automotive firms complained about the cost advantage of fully imported Chinese EVs.
Indonesia's Finance Minister, Purbaya Yudhi Sadewa, is prepared to offer incentives to make the country a more competitive production base, questioning Thailand's ability to retain its position as the region's automotive manufacturing hub. Meanwhile, Thailand's fixation on Cambodia, and the country's recurring flood problems, seem to indicate a lack of focus on solving critical issues.
Young, educated Thais are looking for opportunities abroad, and there's no serious discussion about overcoming the middle-income trap or setting ambitious goals for the country. Growing xenophobia, conflict with Cambodia, and internal crises further contribute to Thailand's apparent disarray and lack of a common goal.
Written by urgent.news from Khaosod English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
