Thailand currently finds itself at a crossroads. On one side there is the US-China trade war, political uncertainty and poverty. And on the other side there is exponential technology, freedom and the opportunity for a better Thailand. During his speech at the Exponential Manufacturing Thailand 2019 summit, Dr. Somkid Jatusripitak, Deputy Prime Minister of the Kingdom of Thailand, touched on why change could be the catalyst for change and a brighter future.
“I’m here as a Thai citizen who wants to see positive change. Thailand needs this generation and the next generation to be open minded. To see the benefits of exponential technology. Ultimately, this is the only way we can grow and be prosperous,” Dr. Somkid said. “This summit is an extremely important event. It is also very timely. Thai people need to see the reasoning behind why change is required and also how it can benefit the country as a whole.”
He pointed to how the country was already using technology to benefit the agriculture sector as an example of how it can work. The country has been committed to a program that connects rural areas to the internet. This has allowed them to improve their business and generate new opportunities.
But Dr. Somkid also stated this is just the beginning because people don’t fully understand the size and scope the program can have. It could be used to improve healthcare and daily life in the rural areas.
“The most important way for the situation to improve is for us to better utilize technology. No one could have predicted it would have reached the level it is at today, and the future is even harder to predict,” Dr. Somkid noted. “Exponential technology is arriving and it could improve all aspects of society. From business, politics and economics to daily life, everything can be better with it.”
Trade troubles blur the view of exponential technology
It can be hard to see the benefits of exponential technology with so many bad headlines in the news. The business community continues to focus on the negativity that shrouds the short-term. There is no improvement in the US-China trade war and this is hampering the global economy. And while history will judge the winners and losers of this battle between free trade and protectionism, Thailand is being impacted today.
“Thailand has an export-led economy and it is harmed by this trade war. It causes problems for several key industries. Currently, 70 percent of the Thai GDP is exports. When something negatively impacts our exports, the country suffers,” Dr. Somkid reported.
It’s not just the trade war. Politics are also playing a role in the future of the Thai economy. Dr. Somkid admitted that investors are concerned because of the lingering election uncertainty.
“All we can do is hope the situation is resolved soon. It is not all bad news. We do have a stable economy and the macro-economic stats are strong. But this won’t be a long-term trend as it’s not sustainable,” he added.
Adding value to manufacturing
One of the key economic issues facing Thailand is the fact that the products it manufactures are mostly low-value added. This creates weak purchasing power and labor wages while productivity remains low. He explained that these factors mean GDP increases are difficult to achieve because the structure isn’t good. But the situation isn’t a hopeless one.
Read more: What does the future of Thai manufacturing look like?
“Technology can change this, or help us do so. We need to develop value that can be added to our products. We need knowledge and technology to make this possible. Once we have this, we can also create new industries, especially in sectors that remain vital to Thailand,” Dr. Somkid stated.
As big data, the Internet of Things and sensors become more affordable and prevalent, productivity can be improved upon. According to Dr. Somkid, this can level the playing field. Not just for the big companies, but for entrepreneurs as well. He believes this gives every single person in Thailand the potential to create employment and generate revenue if they choose.
“We need startups. We need people to deliver innovations. The public must stimulate the economy, not just the government. If we don’t all help, Thailand will suffer atrophy. This is a turning point for the country. Future generations can flourish if they adapt and embrace things like exponential technology,” Dr. Somkid concluded.
