Dr. Ekniti is preparing for the first meeting of the Economic and Social Development Council (ESDC) on June 22nd to discuss economic restructuring.
Dr. Ekniti revealed that S&P maintained Thailand's BBB+ rating, with the competitiveness ranking improving by 4 positions, reflecting positive signs for the Thai economy. The first meeting of the Economic and Social Council (ESSC) is scheduled for June 22, 69, to discuss economic restructuring and investment support.
June 19, 2569 – Dr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, revealed that S&P Global Ratings has affirmed Thailand's credit rating at BBB+ with a stable outlook (as of June 18, 69). He stated that this affirmation reflects confidence in the Thai economy and fiscal stability. He also projected Thailand's economic growth at 2% this year, adding that the government's political stability will support policy continuity and facilitate economic restructuring and investment in line with the country's long-term strategies.
Furthermore, on the same day, the IMD Institute ranked Thailand's competitiveness, improving by 4 positions from 30th to 26th out of more than 70 economies. This latest ranking highlights both strengths and weaknesses that the government will consider and work to improve through the Joint Public-Private Sector Committee for Economic Problem Solving (JPC), which will hold its first meeting on Monday, June 22, 2569.
Dr. Ekniti revealed that the Economic and Social Development Council (ESSC) will serve as a mechanism to drive Thailand's long-term development, with Prime Minister Anutin Charnvirakul as chairman and himself as vice-chairman. He recently instructed the ESSC secretariat to prepare meeting agendas that align with the interests of both S&P Moody's and IMD, namely, the long-term direction of Thailand's development.
This committee's approach will focus on restructuring infrastructure in several areas, including energy, where Thailand remains heavily dependent, technology, human resources and labor, and regulatory reforms. The success of the Thailand Fast Pass project will be highlighted as an example, demonstrating how addressing regulatory issues can effectively promote investment. The Thailand Fast Pass project will be officially launched on Tuesday, June 23, 2569, to showcase Thailand's tangible potential.
“Both Moody's and S&P, which have maintained Thailand's credit rating, emphasize the importance of investment in driving the economy. This includes investment in infrastructure, human resources, and addressing regulatory issues. Thailand Fast Pass is just one example that proves that it doesn't necessarily require a large budget; simply removing regulations can drive investment. In other words, some things don't require any money at all; we can just unlock them and move forward.”
Dr. Ekniti revealed that the next phase of national development under the National Economic and Social Development Council (NESDC) will involve the establishment of sub-working groups to drive progress in four main areas: infrastructure, trade and competitiveness, business law and regulations, and labor. He believes that if implemented systematically, Thailand will see significant improvement within 3-4 years.
This approach will be based on a public-private partnership model similar to that of General Prem Tinsulanonda's government, where the government provided support and the private sector took the lead, given the rapidly changing global situation.
Regarding the details of the competitiveness rankings, which show both improvements and declines, the IMD Institute has divided the assessment into four main areas: economic efficiency, government efficiency, private sector efficiency, and infrastructure.
In terms of economic efficiency, the indicator for international trade declined from 4th to 9th place, due to Thailand's heavy reliance on exports and its susceptibility to global economic fluctuations. Meanwhile, the indicator for international investment improved from 30th to 24th place, reflecting increased foreign direct investment. The domestic economy, however, remained at 38th place.
While the overall ranking for government efficiency remained at 32, fiscal indicators improved from 31st to 29th, particularly the ease of the tax system, which rose from 8th to 7th. This improvement is attributed to increased digital adoption, such as the e-Tax Invoice system recently approved by the Cabinet. However, indicators related to business law and various licensing procedures remained stable, and this remains an area that Mr. Pakorn will need to address and improve.
In terms of private sector performance, Thailand's ranking improved, with the private sector capacity indicator rising from 39th to 37th. The financial stability indicator remained at 36th. However, infrastructure rankings were weaker, particularly in public health and the environment (ranked 56th) and education (ranked 52nd).
“The most worrying indicator in terms of infrastructure is energy intensity, where Thailand ranks 67th, reflecting a high level of dependence on imported oil and natural gas. The value of energy imports accounts for almost 10% of GDP, so it is necessary to accelerate the energy transition to reduce the country's risks,” Mr. Ekniti said.
Regarding Vietnam's participation in the IMD rankings for the first time, placing 27th, very close to Thailand's ranking, Dr. Ekniti stated that Thailand should view Vietnam as an ally and trading partner rather than a competitor. He noted that during meetings with the Vietnamese president, both countries agreed on the need for joint development. Vietnam excels in semiconductors, electronic circuit boards, and possesses a large workforce in engineering, while Thailand is strong in food processing and raw materials. Therefore, cooperation is crucial for mutual growth.
Regarding the current economic situation, Thailand is not facing a crisis of economic growth, but rather a crisis of inflation and the high cost of living that the public is still experiencing. The root cause of rising prices stems from high energy costs, resulting from Thailand's high dependence on oil and natural gas imports. This is a structural problem that needs to be addressed.
Regarding the money and capital markets, there is currently a high level of capital inflow into the Thai capital market. This is partly due to capital outflow from Indonesia, which is facing stability and fiscal crisis issues. Meanwhile, Thailand's continued commitment to fiscal discipline and ongoing efforts to implement various policies has built confidence among investors, reflected in the improved performance of the Thai capital market today.
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