The new economic strategy of Thailand tends to be more “green” and addresses “overpopulation,” implying a policy shift from the first junta government led by the PM, as well as the early months of this government when steps to raise the country’s birth rate were announced. The new plan, which is based on Thailand’s 4.0 strategy, aims to expand Thailand’s extensive agricultural sector, broaden and deepen the reach of tourism, and promote a more prosperous and harmonious society as a result of such economic activity. The latest blueprint is in line with the late King Bhumibol Adulyadej the Great’s self-sufficiency economy.
Thailand’s Prime Minister, Prayut Chan-ocha, launched a new government plan to direct the country’s economy and society over the next five years, as the country plans its way out of the middle-income trap and into a high-income economy over the next two decades. Thailand’s economic planners aim to combine the best of its vast agricultural sector with both tourism and advanced technology to create a sustainable economy that best serves people and society through the BCG strategy, which stands for Bio-economy, Circular Economy, and Green Economy.
The Royal Thai Government launched a new economic and social development plan that aims to expand on the much-heralded Thailand 4.0 initiative, which emphasizes new technology as the path to fast economic growth over the next two decades. Prime Minister Prayut Chan-ocha announced the new 5-year plan after a meeting of the BCG committee. Bio-economy, circular economy and the green economy are abbreviated as BCG.
The term “bio-economy” refers to the government’s efforts to increase the added value of farming, which still employs a large portion of Thailand’s population. Official estimates put it at just over 32%, but it’s likely to be much higher due to part-time employment and the return home of many unemployed Thais who face difficulties in urban areas or lose their positions in industry before they can find another job. The new strategy aims to raise returns by using technology and innovation to add value to Thai crops across the agricultural sector.
With an aging population in the fields, there is a pressing need. The plan is to move from a “do more, get less” to a “do less, get more” approach, as the government describes it.
The BCG strategy’s second component is C, which stands for the circular economy. This is about the use of Thailand’s abundant raw materials, which range from rubber to coconuts and a variety of other materials, in the manufacturing of goods at various stages of life cycles. Recycling scrap and waste materials to generate added value are what the circular definition entails. Fish skins are recycled from waste obtained from luxury restaurants in Marseilles, France, and transformed through purification and tannery machines into expensive and quality leather goods.
The G stands for green, and Thailand’s efforts to protect the environment and ensure the country’s economy’s long-term viability.
Therefore this new model of BCG economy announced by the Royal Thai Government is going to open various avenues in the agriculture, biotechnology and healthcare sector for foreign investors. The country is also planning to announce special deduction and reduction schemes on Corporate Income Tax (CIT) to attract Foreign Direct Investment. If you are not from Thailand but yet attracted towards the economy to multiply your dollars, now it is the most appropriate time.
