Thailand targets 3.5% economic growth with new stimulus plan

The strategy includes fast-tracking 100 billion baht in funds, boosting investments and advancing infrastructure, tourism and energy reforms

 

Prime Minister Paetongtarn Shinawatra unveiled a comprehensive economic stimulus plan on Monday, which she believes will help boost Thailand’s GDP growth to between 3% and 3.5% this year. 

 

The premier announced the plans in a post on X (formerly Twitter), saying it had been developed by Finance Minister Pichai Chunhavajira, who is also a deputy PM. 

 

“Pichai reported back after discussing the plan with five key economic agencies,” she said, referring to consultations with the Fiscal Policy Office, the National Economic and Social Development Council, the Bank of Thailand, the Budget Bureau and the Public Sector Development Commission.

 

 

Short and Medium-Term Initiatives

According to the plan, the government’s immediate strategy will include accelerating the disbursement of over 100 billion baht in pending funds from state agencies and enterprises as well as various national funds.

 

Other measures involve enhancing budget efficiency and redirecting financial resources to support structural economic reforms.

 

The plan also aims to expedite private sector investment, particularly through the Board of Investment, which received applications worth approximately 1.14 trillion baht last year. 

 


“We will facilitate the ease of doing business, with particular attention to streamlining permit processes,” Paetongtarn said. 
 


  

She added that infrastructure development is a key focus, with plans to fast-track major projects, including water systems, the Land Bridge project, railway connections with China and expansion to airports and ports. 

 


"These initiatives align with our ‘Ignite Thailand’ policy to establish the country as a regional transportation hub," she added. 


 

Export promotion and tourism development are also prioritised, with plans to open new markets, accelerate negotiations with trading partners and reduce procedural bottlenecks while monitoring agricultural product prices.

 

Tourism initiatives will focus on events and festivals designed to increase per-visitor spending and extend tourists' length of stay.

 



 

Long-Term Structural Reforms

Looking ahead, the government plans to implement structural reforms using a "sandbox" approach. These reforms aim to restructure industries based on evolving global market demands while enhancing the competitiveness of existing sectors. 
  

Energy sector reforms are set to adjust price structures and increase renewable energy adoption through policies like direct Power Purchase Agreements (PPA) and Underground Gas Tank (UGT) initiatives to meet international trade and investment standards. 

 

Agricultural reforms will also utilise the sandbox model with market-led strategies, starting with key crops like rice, cassava, rubber, oil palm and sugarcane. These efforts will focus on balancing supply and demand, developing capital factors such as soil quality, seeds and water systems and increasing productivity. 

 


“These measures are aimed at improving the quality of life for our farmers,” the premier said. 


 

The working group is scheduled to hold further discussions with the private sector through the Joint Standing Committee on Commerce, Industry and Banking, with a finalised economic stimulus plan expected in two weeks.

(2025/03/03-00:00)