The Thai Policymakers are emphasizing on “Digitalize Thailand” strategy to revise the economic model of Thailand. It involves various strategies, ideologies and actions which can be useful for your business in Thailand. This article intends to explain the same focusing on its importance for you and your business in Thailand.
To understand the importance of “Digitalize Thailand” strategy, let us have a quick fact-check behind its emergence.
- Thailand was officially on the brink of a recession in 2014.
- It was having a growth rate of less than 1% and struck in the middle-income pit.
- The nation was on the verge of losing its entity as Southeast Asia’s 2nd largest economy.
- Policymakers came up with the “Digitalize Thailand” strategy to lift the country out of the trap.
- It was followed by the introduction of the Thailand 4.0 economic model in May 2016.
Effect of “Digitalize Thailand” on Financial Sectors
Thailand 4.0 economic model concentrated on high-level services and creativity, supported by advanced digital technologies. Thailand has been moving towards a cashless economy since the country’s digital revolution. Thai banks started investing rapidly in digitalization for competitiveness in the Financial Technology (FinTech) market.
Kasikornbank (KBank) announced its investment worth 17 billion baht (536 million USD) over three years in digital infrastructure growth and core banking systems.
Similarly, Siam Commercial Bank planned to invest 40 billion baht (1.2 billion USD). The investment will be in building, acquiring, and expanding its technology infrastructure. The intention is to allow the bank to offer better products and services to its newer and more affluent customers.
Now you may wonder as how it can be beneficial for your business in Thailand. Then let us again check few updates on the Thailand 4.0 model tending to Digitalize Thailand –
- In 2016, mobile and internet banking transactions increased by 83 percent in Thailand.
- There is a transition in Thai consumers’ attitudes toward paying for products and services. This is due to affordable e-wallet services and the adoption of internet banking models.
- Thailand has the highest Facebook penetration in Southeast Asia, with 74% of Thais using the platform. Their enthusiastic use of social media has resulted in annual e-commerce revenue of US$11 billion.
This transition in trends and consumer preferences indicates that the nation is very actively getting involved in the Digitalization process. As far as your business in Thailand is concerned, the “Digitalize Thailand” strategy can help you in multiple ways like the following –
Involve in the Process of “Digitalize Thailand”:
By this method, you plan a business in Thailand which can be all about providing digital solutions to customers or companies. As this industry is growing and competing to be at par with global advancements, presently it is far from saturation. If your business idea reflects uniqueness and creativity, be assured to get CIT exemption and other tax benefits from the BOI Thailand.
Transform your Business towards Digitalization:
As Thailand 4.0 is promoting digital tools and platforms and encouraging businesses to do so, this is the perfect time to transform. If you are having a business in Thailand, adopt digital tools in the conveyance. If you are planning to open a new one, transform your plan with conventional methodologies to a digital one. This will help you be on edge of competitive advantage and reach out to your potential customers faster.
Be part of BCG Economy Model:
BOI Thailand has announced various tax and non-tax exemptions for projects oriented towards innovation and creativity. Owing to the popularity of the Bio-Circular-Green Economy Model on a global basis, the Royal Thai Government is also focusing on the same. This makes the Creative Economy one of the key elements of this model which encourages innovation and creativity. Optimizing your existing model to be part of the BCG Economy Model can help you gain greater RoI.
The major focus of this BCG Model or “Digitalize Thailand” strategy is quick adoption of Advanced Digital Production Technologies. Such technologies involve the following verticals:
- Electrical and renewable energy sources
- Software Platforms
- Industrial Internet of Things
- Big Data Analytics
- Artificial Intelligence
- Sensors, Industrial Robots, Cobots
- Additive Manufacturing
- Smart Production
Therefore, your plan to invest in Thailand in any of the above verticals will surely lead you close to success. The Royal Thai Government enlightened by the Board of Investment is encouraging investment in the mentioned sectors. For any and all types of queries related to registering your company or setting up your business in Thailand, feel free to mail us at [email protected].
