Prime Minister Prayut Chan-o-cha said yesterday that Thailand would upgrade to a value-based economy through its 20-year strategic plan (2017-36) and 12th National Economic and Social Development Plan (2017-21).

He was speaking during the leaders’ discussion on “Transforming Nations through Creativity and Innovation” at the International Conference on Blue Ocean Strategy in Putrajaya, Malaysia.

Thailand’s current economic model – Thailand 3.0 – focuses on heavy manufacturing. The earlier models were 1.0 for agriculture and 2.0 for light manufacturing.

Now, Thailand is facing challenges in labour shortages and an ageing society, lagging labour-efficiency improvement and the difficulty new businesses face accessing financing, Prayut said.

Others include trading countries’ economic slowdowns, the shift of manufacturing bases to lower-wage countries, social gaps, healthcare, natural disasters and environmental deterioration, he said.

Amid the uncertainty and globalisation, countries need to think out of the box, moving themselves from fierce competition in the Red Ocean to growing together in the Blue Ocean through innovation, aiming to satisfy demand in new markets.

Based on the Thailand 4.0 model, the country will advance to a high-income society through economic restructuring based on research and development in science and technology and on innovation, while encouraging people in all sectors to participate and take gains for an inclusive society, he said.

Sustainable growth and development will also be focuses.

The Thai government will increase R&D investment to 1 per cent of gross domestic product, while investing in digital infrastructure, he said.

Amid high competition, countries should join forces for the peaceful, plentiful and wealthy Blue Ocean of hope and opportunities, Prayut said.

Searching for each country’s strengths should be done with mutual support in R&D and the creative economy, such as joint development for Asean-branded products and services for markets in tourism, health, food, the environment, energy and lifestyle products, he said.

Thailand is proceeding with Thailand plus one, while promoting tripartite cooperation among high-income, middle-income and low-income countries to help partners in the region and others achieve sustainable growth, he said.