The Board of Investment (BoI) is being advised to revise its criteria for granting incentives for foreign direct investment (FDI), basing them on the level of contribution to the economy.
Speaking at the "Triam Udom Dinner Talk 2026" on Tuesday, former finance minister Somkid Jatusripitak said amid economic headwinds and a gloomy outlook, FDI would play a pivotal role in supporting the Thai economy and sustaining long-term growth.
"Thailand is beginning to see a second major wave of FDI following the boom period of the 1980s. This new wave involves advanced technology industries that overlooked Thailand six or seven years ago, but are now entering the country because of shifting geopolitical dynamics," he noted.
In light of these developments, Mr Somkid proposed reforming Thailand's investment incentive and evaluation systems under the BoI to better measure contributions to the economy.
"Rather than focusing solely on investment value, authorities should prioritise contribution in terms of what the country actually gains from each project," he said. "We should emphasise quality rather than quantity."
For example, Mr Somkid suggested requiring high-tech companies investing in Thailand to help develop local talent and collaborate with universities to build human capital.
Authorities should also invite leading foreign universities to establish campuses in Thailand to create competition and accelerate education reform, arguing that relying solely on bureaucratic reform would be too slow.
This wave of FDI can also help modernise industries by aligning with global demand and supply chains, he noted. Stronger FDI inflows also give the government greater bargaining power in cross-border investment and trade negotiations, including free trade agreements.
Mr Somkid said a "strong performance government" is needed to negotiate strategically with major powers, particularly China, and to capitalise on the "China +1" investment trend.
Thailand is at a turning point, with significant opportunities ahead despite numerous challenges, he said.
Mr Somkid proposed a "New Deal for a New Future" for Thailand, calling on the government to present a clear national development blueprint.
The country also needs stronger civic participation to improve government capabilities and transparency amid rising risks from grey money and illicit funds, he noted.
"An empowered civil society is essential for holding politicians accountable. Bad politicians are like Dracula -- they fear the light. What they fear most is strong people's politics. If civil society is weak, politicians can easily manipulate the system," said Mr Somkid.
Regarding the government's cost-of-living relief measures and stimulus policies, he said they should focus more on grassroots communities, farmers, and small and medium-sized enterprises.
With higher energy prices driving much of the uptick, the government should cut fuel taxes to ease price pressures rather than relying primarily on the Oil Fuel Fund, said Mr Somkid. Major oil companies should reduce energy prices to help the public during difficult times, even if it means lowering profits for 2-3 years to help stabilise the economy, he said.
