Exports account for 70% of the economy but the manufacturing sector cannot meet market demand, Mr Pichai told a business seminar, reported the Bangkok Post, citing a Reuters report.
“We can’t compete. We can’t adapt in time,” Mr Pichai said.
Thailand, Southeast Asia’s second-largest economy, grew 2.3% in the April-June quarter from a year earlier, accelerating from the 1.6% growth in the prior quarter.
But quarter-on-quarter growth slowed to 0.8% in the second quarter from the 1.2% expansion in the previous three months, said the report.
The Finance Ministry predicts economic growth of 2.7% for 2024, after last year’s growth of 1.9%, which lagged regional peers.
The Bank of Thailand (BoT) is widely expected to leave its key interest rate unchanged at a more than decade-high of 2.50% for a fifth straight meeting later today (Aug 21).
However, uncertainty about the government’s B145-billion handout may prompt a fresh wave of rate-cut pressure, the report noted.
Former energy executive Pichai Chunhavajira was named finance minister on Sunday, facing a tough task to revive the Thai economy.
Mr Pichai, 75, who served as an adviser to Srettha Thavisin, took over from Mr Srettha as finance minister and became deputy prime minister on Sunday following the announcement of his appointment in the Royal Gazette.
Mr Pichai was chair of the board of Bangchak Corp since 2012. He headed the board of the Stock Exchange of Thailand for less than three months this year and was on the central bank board from 2014 to 2017.