Supavud Saicheua, chairman of the National Economic and Social Development Council, said investment in transport infrastructure is essential to upgrading the tourism industry. For example, connecting major tourist destinations by rail would improve convenience for travellers and enhance cost efficiency, reports the Bangkok Post.
Such infrastructure development would help transform Thailand’s economic structure, rather than relying on short-term stimulus measures. Improved connectivity would not only support tourism but also raise productivity and unlock new business opportunities nationwide, he said.
Agriculture is another key sector in need of reform, requiring a transition from traditional practices to a modern industry. This shift involves moving from low-value carbohydrate products to higher-value protein and food products that better match global demand. With the global population ageing, carbohydrate consumption is expected to decline, while demand for protein is likely to rise, said Mr Supavud.
However, these reforms are absent from the policy platforms of political parties, Mr Supavud said. Most policies are designed to please voters in the short term rather than drive meaningful change, he noted.
"National change cannot happen unless people are willing to change as well. Continuing to do the same things will not produce new outcomes," he said. "Clinging to outdated policies will not prepare Thailand for future challenges."
Regarding the impact of repeated cash handout schemes rolled out in multiple phases, Mr Supavud said such measures have been used for years and have contributed to the country’s budget deficit, which stands at around 3% of GDP.
Thailand’s public debt has continued to rise, while credit rating agencies have warned of a potential sovereign downgrade.
"If there is no economic reform, Thailand’s GDP growth is expected to remain persistently low at just 1-2% a year. If reforms are implemented, growth could return to its potential of around 4-5%, allowing the economy to move forward in a more balanced and stable manner," he said.
Meanwhile, Kobsak Pootrakul, senior executive vice-president and chief economist at Bangkok Bank (BBL), said Thailand’s slower economic growth is partly attributable to a weakening industrial sector.
The deterioration of several established industries, such as automotive, electronics, agriculture, and petrochemicals, has dampened the country’s productivity and competitiveness, he said. These industries, which have driven economic growth for more than 30 years, are becoming outdated, leading to factory closures and production cuts.
Thailand needs to develop new industries as growth engines over the next four to five years to lift GDP growth back to 4-5%. To achieve this, the government should allocate a significantly larger budget to the Board of Investment (BoI).
"I want to reiterate that the government should increase both the budget and human resources at the BoI by three to four times to prepare for stronger growth over the next five years," Mr Kobsak said.
He said BBL, the country’s largest lender by total assets and a leading regional bank, is ready to support local industrial transformation and the development of new S-curve sectors aligned with the BoI’s five strategic industries: bio-, circular and green; the electric vehicle (EV) supply chain; semiconductors and advanced electronics; digital and artificial intelligence; and international business centres.
Mr Kobsak noted that new investment would lead to an increase in factories across various sectors. For example, automotive production has fallen from 2 million vehicles to 1.5 million. With greater investment in EVs, output could rise to 3.5 million units, potentially turning Thailand into a new manufacturing hub.
Thailand is poised to become the largest producer of printed circuit boards in Southeast Asia and is advancing into semiconductor manufacturing as part of its economic transition.
"Amid the country’s economic transition and ongoing headwinds, Thai GDP growth is likely to remain in a range of 1.5-2% a year during 2026–2028. After that, growth could return to 4-5% if economic reform and industrial transformation are successfully implemented," he said.
Mr Kobsak said economic stimulus measures that support growth and improve public welfare, such as co-payment schemes and domestic tourism incentives, are acceptable.
However, he does not support populist cash handouts that provide limited benefits for the economy.