Amid rising global uncertainty, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has urged the government to step up efforts to attract foreign investors and encourage multinational companies to relocate their operations to Thailand.
Following a committee meeting on Wednesday, Payong Srivanich, chairman of the Thai Bankers' Association, said businesses worldwide face growing risks from the prolonged war in the Middle East.
However, this presents an opportunity for Thailand to attract more foreign direct investment (FDI) and encourage multinational corporations to relocate their operations to the country, he said.
"Given heightened global uncertainties and the positive outlook for FDI inflows into Thailand, the government should capitalise on this opportunity to attract relocation of manufacturing bases and the establishment of regional middle- and back-office operations by multinational corporations," said Mr Payong.
In particular, the ongoing surge in FDI into digital and electronics-related industries presents substantial opportunities for Thailand. The country can leverage these investment trends to accelerate economic transformation and establish itself as a preferred destination for business relocation and expansion, he said.
Thailand should also strive to become a regional hub for manufacturing, services and finance, noted Mr Payong.
"The country should capitalise on global trends in artificial intelligence [AI], data centres and cybersecurity to upgrade Thailand's smart electronics and advanced manufacturing industries, increase local content, strengthen R&D capabilities, and remove regulatory obstacles that hinder investment," he said.
This approach is consistent with the "Reinvent Thailand" strategy, which seeks to promote seven priority industries targeted by the Board of Investment, as well as the industry direction recommended for Thailand by the World Bank, the JSCCIB noted.
However, Mr Payong said the JSCCIB wants to see FDI generate broad-based benefits across the Thai economy. Investment should strengthen the entire supply chain, create stronger linkages with the real sector, support job creation, raise household incomes, and improve the well-being of vulnerable households.
Thailand's K-shaped economic growth has left lower-income groups behind, with the benefits of economic expansion unevenly distributed, as evidenced by the strong export performance. During the first four months of this year, Thailand's exports grew by 18.9%, with 48.4% of that growth driven by trends in AI and data centre-related investment.
The panel upgraded its 2026 export forecast from a contraction of 0.5-1.5% to growth of 8-10%, while raising its Thai GDP growth outlook from 1.2-1.6% to 1.6-2.0%, attributed to the government's stimulus measures.
Mr Payong said the government's 170-billion-baht "Thais Help Thais Plus" stimulus scheme would support domestic consumption and ease household burdens amid the ongoing energy crisis.
Nevertheless, he said the government and policymakers should prioritise economic stability when implementing stimulus measures in order to maintain public confidence. Failure to do so could undermine investor sentiment and negatively affect the broader economy, as well as money and capital markets, similar to developments in some neighbouring countries.
Several countries in the region, particularly Indonesia, have experienced financial market instability, including volatility in foreign exchange and interest rates.
Following a sharp depreciation of the rupiah against the US dollar, Bank Indonesia hiked its benchmark rate twice this year to support the currency.
The central bank implemented an unexpected off-cycle rate hike this month, bringing its benchmark rate to 5.50%.
