Mr Ekniti said Thailand and other Asean member states are seeing a significant increase in foreign direct investment inflows as a result of geopolitical conflicts.

The government has pledged to utilise the Fast Pass system to expedite permit approvals – including those for water and electricity connections – in order to increase investments.

Speaking at the “Thailand Future Signal 2026” seminar, organised by iBusiness and held on Monday, Finance Minister Ekniti Nitithanprapas said Thailand and other Asean member states are seeing a significant increase in foreign direct investment (FDI) inflows as a result of geopolitical conflicts.

While global FDI contracted last year, FDI within Asean grew.

Board of Investment (BoI) applications in Thailand reached a record high, expanding by 30% year-on-year, while the value of investment increased by 90% compared with 2023.

The industries with the highest number of BoI applications include modern agriculture, food processing, data centres, advanced electronics, semiconductors, electric vehicles and hybrids, and wellness.

According to Mr Ekniti, the positive FDI outlook is the second key driver supporting Thailand’s economy this year and next. The first driver, he said, is the government’s economic stimulus measures – particularly the “Khon La Khrueng Plus” co-payment scheme – which is expected to boost GDP growth in the fourth quarter of this year. Earlier projections expected fourth-quarter GDP growth to drop to 0.3%, down from 1.7% year-on-year in the third quarter.

“Nevertheless, many projects approved by the BoI have not yet begun – amounting to as much as 470 billion baht,” Mr Ekniti said. “We must unlock these pending investments by using the Fast Pass system, which speeds up permit approvals, such as for water and electricity usage.”

Deputy Minister Borwornsak Uwanno is currently working to amend laws that hinder investment in the country, he added.

Mr Ekniti also said that under the government’s limited budget, public investment will be promoted through instruments such as the Thailand Infrastructure Fund. The state will use the future revenue streams of investment projects – such as clean energy initiatives – to back up the fund’s investment units, allowing the capital raised to be reinvested in subsequent projects.

The Anutin Charnvirakul government’s short-term policy, spanning just four months, consists of five pillars and one foundation. So far, the government has implemented the first pillar – economic recovery – through various programmes. The pillars are:

1. Economic recovery, through programmes such as Khon La Khrueng Plus and the Tax Refund for Tourism schemes.

2. Household debt resolution, by transferring small debts of up to 100,000 baht per borrower, totalling 4.7 billion baht, to a state-owned asset management company.

3. Encouraging retirement savings, through initiatives such as the forthcoming Retirement Lottery by the Government Lottery Office, and the creation of Individual Savings Accounts, which allow tax-deductible investments to replace the existing retirement mutual fund and the Super Savings Fund schemes.

4. Supporting SME liquidity in sectors with viable prospects, with the state providing loan guarantees. This measure is expected to be submitted to the cabinet for consideration within the next two weeks.

5. Investment for the future.

The single foundation of these pillars is fiscal discipline, which has been a concern among credit rating agencies, leading to a change in Thailand’s outlook from “stable” to “negative”.

Mr Ekniti stressed that the government is exercising caution in this regard, as reflected in its decision to fund stimulus measures using existing budget allocations and to repay debt owed to the Bank for Agriculture and Agricultural Cooperatives, demonstrating its commitment to maintaining fiscal responsibility.