Preparations are under way for the event, which will highlight the progress made under the government’s 4.0 policy, particularly with the development of the Eastern Economic Corridor (EEC) and advances in the new S-curve industries – especially in agriculture, food, bio-fuel, and digital businesses.

To be presented under the concept of “Mobility for the Future”, the Thailand Pavilion at the expo will feature the many developments in the three EEC provinces of Chon Buri, Chachoengsao and Rayong, especially with the opening of U-Tapao International Airport and the launch of high-speed trains connecting it with the Suvarnabhumi and Don Mueng airports. Also highlighted will be the launch of two deep-sea ports, at Laem Chabang and Map Ta Phut.

The Minister of Digital Economy and Society, Pichet Durongkaveroj, said that the ministry is honoured to be responsible for encouraging the collaboration that will go into organising the Thailand Pavilion.

The expo will be held for six months from October 20, 2020.

“The event will provide a global stage for Thailand to announce the country’s readiness to become a leader in digital technology in Asean,” said Pichet.

He said the Thailand Pavilion, covering 3,600 square metres, will be much larger than the 2,000 square metres that Thailand had at the Milan expo five years ago.

About Bt900 million will be spent by the government for the construction of the pavilion and other expense during the six-month exhibition in Dubai. Of more than 25 million people expected to go to the Dubai expo, about seven million are targeted to visit the Thailand Pavilion.

He said that the ministry has also set up a test centre for a 5G network at Kasetsart University, Sriracha Campus, to support the development of the EEC initiative in the three participating provinces.

The tourism sector has also launched a strategy to attract more quality tourists from all over the world. With about 40 million inbound tourists expected to visit the country this year, Thailand will become the fifth-biggest tourist destination in the world by number of arrivals.

“World Expo 2020 Dubai will be the stage for Thailand to demonstrate its readiness in digital technology as well as the impressive images of the country, especially Thailand’s achievement to create seamless innovation based on its traditional resources and wisdom,” Pichet said.

“Also, this will be a great opportunity for Thailand to illustrate its potential for business, investment and international trade related to digital technology, which will ensure foreign investment, create joint ventures, and establish an investment base in both the agricultural and industrial sectors of Thailand.”

Speaking to a group of analysts on the monetary policy and economic situation, Veerathai said the current policy rate at 1.75 per cent is accommodative to economic growth which is expected to expand 4 per cent this year.

“If the economic growth is sharply slower, then the central bank has tools to address it,” he said.

Although the global economy is slowing down, unemployment rates in the US and Europe remain low and the US economy is still creating new jobs, he said.

Many analysts, however, have expressed concern that a stronger baht would hurt Thailand’s exports. They also want the central bank to give a clear signal it will slow down the pace of rate hikes in the future after the BOT raised the rate in December last year. They feared that further rate hikes would deepen the economic slowdown.

While the 2019 target of Bt750 billion exceeds that of last year’s Bt720 billion, it has been described as conservative.

Deputy Prime Minister Somkid Jatusripitak said the focus would be on quality investments amid a more sluggish economic environment.

“We will increase the role of the BoI in reducing inequality in the country and encourage investment in areas that address this issue instead of only focusing on the manufacturing industry,” Somkid said at a press conference yesterday.

Investors that are looking to put their money into improving the agricultural industry, the quality of the workforce, or developing logistics facilities along tourist routes will need to receive investment advantages, he said.

Somkid outlined his intentions to make tourism a key driver of economic growth for 2019.

“Tourism now contributes more than 15 per cent of the Thailand’s GDP. It has significant impacts on Thailand’s employment, production and general economic growth,” he said. “From now on, we will need to encourage investment in all other industries to centre around tourism.

Kobsak Pootrakool, the Minister to the Prime Minister’s Office, said: “We have made a modest target on the total investment figure for 2019 because of the uncertain global economic situation, especially the uncertain impacts of the ongoing US-China trade war.”

When asked whether the postponement of the general election – most recently from a pledged date in February – has damaged the investment sentiment for 2019, Kobsak said that the election would also bring benefits for the investment outlook.

Pre-election completion

“For example, the current government is determined to finish key investment projects in the EEC before the election, such as the development of the U-Tapao airport,” he said.

BoI secretary-general Duangjai Asawachintachit said applications for investment privileges had been submitted for 1,626 projects in 2018, for a combined valuation of Bt901.77 billion.

This figure exceeded the BoI’s target for 2018 by up to 25 per cent. Of the total value, Bt680 billion was for projects in the Eastern Economic Corridor (EEC), Duangjai said.

Some 84 per cent of the projects in 2018 were in the five targeted New S-curve industries, comprising digital businesses, medical hubs, biofuel and biochemicals, robotics and automation, and aviation and logistics, Duangjai said. These projects were valued at Bt758 billion.

“The BoI will continue to attract foreign investment from key investors such as China and Japan, which have jointly stated that they want to corporate in investing in Thailand,” Kobsak said.

The BoI will hold investment events to capitalise on this opportunity and attract more foreign direct investment into the Kingdom, especially in the first half of 2019, he said.

The initiative is part of TCG’s efforts to issue credit guarantees of as much as Bt107 billion this year to small-business operators, TCG president Rak Vorrakitpokatorn said yesterday.

Rak, in announcing the measure, highlighted the essential role of motorcycle-taxi drivers in traffic-congested cities across the country and said the drivers needed financial support. Some 150,000 of them provide transport services for commuters in greater Bangkok, he said.

The TCG plans to work with state-owned and commercial banks to provide loans for them, with the banks offering the loans and the TCG providing the loan guarantees.

The average loan would be Bt50,000 each and would be used by the drivers to buy new motorcycles or improve their existing ones as well as buy additional safety equipment such as helmets, Rak said.

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The TCG already has a credit guarantee scheme for drivers of car taxis in cooperation with the Small and Medium Enterprise Development Bank of Thailand (SME bank). The provision of credit guarantee to motorcycle-taxi drivers would mark an expansion in this field.

Surachai Danaitangtrakul, chairman of the TCG, said the motorcycle-taxi drivers would find that the new funding would reduce their leasing costs. Financial institutions are expected to charge them lower interest rates when such loans are guaranteed by the TCG, Surachai said.

The TCG plans to increase its loan guarantee portfolio to as much as Bt107 billion this year, up from Bt88.88 billion last year.

Rak expressed confidence that the economy would maintain its growth momentum this year, with gross domestic product (GDP) to expand about 3.8 per cent amid a global slowdown.

“Many small businesses are still unable to access bank loans. With the support of the TCG they would be able to get loans from banks,” said Rak.

The TCG would also try to provide one-stop services for borrowers as it would provide a pre-approved loan service in order to increase the chances of small businesses getting loans from the banks, he said. Most banks do not have time to make credit assessment for small loans, so the TCG would look at loans of less than Bt15 million by making pre-approved loan assessments before introducing the drivers to the banks, he said.

This would lessen the workload for banks and at the same time assist clients to get loans more easily from the banks, Rak said.

The TCG works closely with state-owned bank such as SME bank, Government Savings Bank and commercial banks such as TMB, Kasikornbank, Siam Commercial bank and Bangkok Bank, he said.

The new credit guarantee portfolio of Bt88.88 billion last year is up 14 per cent from the year before. “We aim to increase the credit guarantee portfolio back to the Bt100 billion level, as the TCG did in the past,” Rak added.

Some 77,862 entrepreneurs gained credit guarantees last year, and the TCG aims to support 82,600 entrepreneurs this year.

Surachai said that if the banks were to become more cautious in providing new loans for SMEs this year, due to a lacklustre economy, the TCG could enhance its credit offerings and assist borrowers to get loans.