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In its first Digital Economy Report, the UN Conference on Trade and Development (Unctad) maps the global flow of data and funds and outlines the enormous potential gains and possible development costs as more people connect and make purchases online.

Wealth creation is highly concentrated in the United States and China, it notes, with the rest of the world trailing considerably far behind, especially countries in Africa and Latin America.

The US and China account for 75 per cent of all patents related to blockchain technologies, 50 per cent of global spending on the internet of things, more than 75 per cent of the cloud-computing market and as much as 90 per cent per cent of the market capitalisation value of the world’s 70 largest digital-platform companies.

Under current policies and regulations, this trajectory is likely to continue, further contributing to rising inequality, warned UN Secretary-General António Guterres.

“We must work to close the digital divide, where more than half the world has limited or no access to the Internet. Inclusivity is essential to building a digital economy that delivers for all,” Guterres writes in the report.

Unctad Secretary-General Mukhisa Kituyi said people in developing countries must be allowed “to take part in the new digital world, not just as users and consumers, but also as producers, exporters and innovators, … on their path towards inclusive prosperity”.

Global internet protocol (IP) traffic has seen dramatic growth, the report says, from 100 gigabytes of traffic per day in 1992 to more than 45,000 per second in 2017. And yet the world is only in the early stages of the data-driven economy. By 2022, global IP traffic is projected to reach 150,700GB per second.

The surge reflects growth in the sheer number of people using the internet and the uptake of frontier technologies such as blockchain, data analytics, artificial intelligence, 3D printing, automation, robotics, cloud computing and the internet of things.

An entirely new “data value chain” has evolved among firms that support data collection, the production of insights from data and data storage.

Businesses that build digital platforms have a major advantage by acting as both intermediary and infrastructure. They are positioned to record and extract data related to online interactions and transactions.

The report notes that 40 per cent of the world’s 20 largest companies by market capitalisation have a platform-based business model.

Seven “super-platforms” – Microsoft, Apple, Amazon, Google, Facebook, Tencent and Alibaba − account for two-thirds of the total market value of the top 70 platforms.

The combined value of the platform companies with market capitalisation of more than US$100 million was estimated at more than $7 trillion in 2017 – 67 per cent higher than in 2015, according to the report.

Some digital platforms have grown to dominate key niches. Google has some 90 per cent of the market for internet searches, while Facebook accounts for two-thirds of the global social-media market and is the top social network in more than 90 per cent of countries.

In China, WeChat, owned by Tencent, has more than one billion active users. Its payment solution and Alipay, owned by Alibaba, have captured virtually the entire Chinese market for mobile payments. Meanwhile, Alibaba is estimated to have close to 60 per cent of the Chinese e-commerce market.

These companies are aggressively consolidating their competitive positions, including by acquiring potential competitors and expanding into complementary products or services, lobbying in domestic and international policymaking circles and establishing strategic partnerships with leading multinationals in traditional sectors, such as automotive, semiconductor and retail industries.

The dominance of global digital platforms and their control of data, as well as their capacity to create and capture the ensuing value, accentuates concentration and consolidation rather than reducing inequalities between and within countries, the report notes.

It warns that developing countries risk becoming mere providers of raw data, while having to pay for the digital intelligence generated using their data.

If left unaddressed, the yawning gap between the under-connected and the hyper-digitalised countries will widen, and inequalities be exacerbated.

The report suggests finding an alternative configuration of the digital economy that leads to more balanced results and a fairer distribution of the gains from data and digital intelligence.

Governments have a critical role in shaping the new economy by defining the rules, it says. This involves the adaptation of existing policies, laws and regulations, and the adoption of new ones in many areas.

“A smart embrace of new technologies, enhanced partnerships and greater intellectual leadership are needed to redefine digital development strategies and the future contours of globalisation,” Kituyi said.

Policy responses need to consider increased difficulties of enforcing national laws and regulations with respect to cross-border trade in digital services and products, the report recommends.

Further, they should explore new pathways for local value creation and capture, and structural transformation through digitalisation.

National development strategies should also seek to promote digital upgrading (value addition) in data value chains, and to enhance domestic capacities to “refine” the data.

“Digitalisation affects different countries in different ways, and individual governments require policy space to regulate the digital economy to meet various legitimate public policy objectives,” the report states.

At the same time, several policy challenges associated with value creation and capture in the digital economy can only be effectively addressed at the regional or international level, with the full involvement of developing countries. This includes competition, taxation, cross-border data flows, intellectual property, trade and employment policies.

To secure a digital future for the many, rather than the few, domestic and international policies should go beyond enlisting more developing-country users and consumers online; they should also enable the building of domestic capabilities to create and capture value.

According to the report, the development community needs to find more comprehensive ways to support countries that are trailing in the digital economy.

It recommends that more assistance should aim at reducing the digital divides, strengthening the enabling environment for value creation and building capacities in the private and public sectors.

Further, policy actions should seek to enhance trust by supporting the adoption and enforcement of relevant laws and regulations to promote value creation and capture in the data-driven digital economy, says the report.

Lavaron Sangsnit, director-general of the Fiscal Policy Office and the ministry’s spokesperson, said the level of household debt in the first three months was still lower than the peak in 2015 when it accounted for 81.2 per cent of the gross domestic product (GDP).

The ministry said it has yet to become a pressing issue as most of the borrowings were backed by collateral and that they should be deemed as part of the process in building up one’s wealth or as investment to generate income.

Total household debt as of the end of the first quarter stood at Bt12.97 trillion or 78.7 per cent of GDP, of which 42.8 per cent were loans from commercial banks. Most of the loans were backed with assets of the borrowers, for the purpose of acquiring assets such as properties and vehicles or used as operating expenses of their businesses.

When excluding loans for businesses, total household debt in the first quarter would have fallen to Bt10.84 trillion or 65.8 per cent of GDP, Lavan said.

At the same time, the level of loans for personal consumption or personal loan remained low at 6.3 per cent of the total debt while non-performing loans among households accounted for just 3.3 per cent in the quarter.

The office, he said, will continue to monitor the situation.

Earlier this week, the National Economic and Social Development Council (NESDC) and the Bank of Thailand both raised concern on the high level of household debt.

According to the NESDC, total household debt nationwide in the first quarter amounted to Bt13 trillion, rising by 6.3 per cent year-on-year and accounting for 78.7 per cent of GDP – the highest since the first quarter of 2017.

The state think-tank warned that household debt has been rising continuously since mid-2017, adding that the debt level would likely be higher in the second quarter, given the 9.2 per cent increase in personal loans from commercial banks during the period.

SET’s Senior Executive Vice President Soraphol Tulayasathien said under MoU, the two parties would jointly conduct a study for a reliable platform, catering to the wholesale electricity market. SET has realised that a mechanism to maximise electricity management efficiency is important for both power producers and consumers, she added.

“The cooperation is also in line with SET’s vision “To Make the Capital Market ‘Work’ for Everyone”. SET has been joining up with various sectors to develop the capital market’s basic infrastructure, products and services to keep pace with global standards while creating new business opportunities. Nowadays, all businesses worldwide, including utility which is part of Thailand’s basic infrastructure, must embrace changes amid competition,” Soraphol said .

Bhawana Aungkananuwat, Egat’s Deputy Governor/Administration said the purpose of this cooperation was to prepare for a new trading platform for the wholesale electricity market or Capacity market for advance trading of 3 – 5 years and the Energy market for daily energy trading, in support of the country being the regional centre of electricity trading.

Moreover, it will help prepare for market liberalisation and promote competition in the energy industry. The cooperation covers the study on the development of a wholesale electricity market trading platform, energy industry model, energy trading mechanism, and wholesale power purchase agreement (both in advance and during the day).

The cooperation between the two organisations is the start of energy industry development, using market mechanism to increase energy management efficiency, ability to compete, and the overall Thai economy.

The MoU covers a one-year period, starting from September 4, 2019 to September 3, 2020. Both parties will study readiness and develop business model for the wholesale electricity market, support information, and exchange knowledge.

He added that amidst the global economic uncertainties as a result of the trade war between the US and China, Thai entrepreneurs needed to manage international trade risks in conjunction with exploring new business opportunities.

One of the options is to expand trade and investment to new markets with high potential, such as India, the seventh largest country in the world with the world’s second largest population as well as tremendous cultural diversity, hence a demand for a large variety of products..

Adul was speaking at a seminar titled :India: The Window of Opportunities” organized by EXIM Thailand in collaboration with the Ministry of Commerce in Bangkok.

He added that to successfully enter the Indian market, Thai entrepreneurs need to understand the diversity among Indian states and devise a market strategy that can respond to demand of consumers in each state.

For example, the state of Maharashtra with Mumbai as the capital plays the most significant role in Indian economy. Entrepreneurs should approach middle-class consumers and build linkage to Indian supply chains.

Meanwhile, Tamil Nadu state with Chennai as the capital is the production hub of India and home to the country’s largest number of special economic zones. They number around 40 and have the largest pool of skilled labour force, particularly engineers.

Prospective industries for Thai entrepreneurs include textiles, processed foods, automobile and information technology. Moreover, Gujarat state with Gandhinagar as the capital is well equipped with industrial clusters, infrastructures and rules and regulations conducive to business operation as well as large seaports ranking among the top of the country, making the state a prime location for setting up a production base for both domestic distribution and export.

The EXIM Thailand director added that the Indian states with high potential are mostly situated in the western and the southern regions of the country.

Each state has remarkable features of its own and different business environments in respect of availability of infrastructures, industrial clusters, rules and regulations, and market size. Each state should be viewed and treated as one single country so that its specific characteristics are understood before business engagement.

He said that EXIM Thailand stands ready to support Thai entrepreneurs aspiring to start up or expand business in India through the provision of financial tools comprising working capital as well as medium- and long-term financing, export credit insurance and investment insurance.

India is Thailand’s tenth largest export market. Thai-Indian trade reached US$ 12.463.75 billion in value, comprising Thai exports to India worth $7.632 billion and Thai import from India of $4.863 billion.

Major export goods from Thailand include chemicals, plastic resin and air-conditioners and parts, while main import goods from India are gems, silver and gold, and mechanical machinery and parts.”

“EXIM Thailand is ready to support Thai entrepreneurs in their penetration of new frontier markets such as India by, among others, offering of knowledge and information on cultural diversity among Indian states. This will facilitate their selection of the right location which is one of the top priorities for business establishments. Credit and insurance facilities are also available to enhance access to new business opportunities in the forms of both trade and investment finance and risk management tools to ensure their competitiveness on a stable and sustainable basis,” Adul added.

The Thai National Shippers’ Council (TNSC) urged the Commerce Ministry and related agencies this week to break into India’s booming market.

The Indian market offers big opportunities amid demand for rubber, rubber wood, food, jewellery and repairing chemical spray, and Thailand has the potential to compete there while benefiting from the FTA agreement between the two countries, TNSC president Kanyapak Tantipipatpong said.

She added the government should hasten Thai-Sri Lankan FTA negotiations.

Nooch Homrossukhon, director of TCEB’s Meetings and Incentives Department, said the road show was staged in July with the aim of strengthening Thailand’s existing meetings and incentives business from Indiaw while at the same time generating new opportunities.

“In line with TCEB’s role under its ‘Thailand Redefine Your Business Events’ branding, we are creating business opportunities that generate promising sales leads for the Thai MICE sector. In this context, the India Road Show yielded productive results,” said Nooch.

The activity involved corporate networking events and media meet-up sessions in New Delhi and Mumbai, and was led by Nooch, along with Nitin Sachdeva, TCEB’s Representative in India.

The events in New Delhi and Mumbai attracted significant interest within India’s outbound meetings and incentives market, providing a positive indication of Thailand’s continued status as a leading MICE destination in Asia, Nooch added.

In New Delhi, TCEB’s corporate networking event was attended by 48 corporate delegates, while the media meet-up session saw nine media companies participating. The Mumbai event was attended by 55 corporate delegates, and the media meet-up session drew five media companies.

A major component of TCEB’s marketing activity in the Indian market involves the “Meet by Design – Redefined” support campaign, comprising three packages with a tailored menu of privileges and subsidies for event groups coming to Thailand. “Meet NOW” is for meeting and incentive groups starting from 100 delegates and offers a choice of exclusive in-kind services, including a Thai welcome gift for all delegates; VIP fast-track immigration at Suvarnabhumi Airport or a cultural performance. For groups of more than 500 delegates, a financial subsidy is also included. “Meet SMART” is for corporate meeting groups of 100 from the 10 targeted industries under the Thailand 4.0 policy, while “Meet MEGA” is aimed at larger groups of more than 3,000 delegates.

“The India Road Show also gathered vital feedback on the requirements and wishes of the Indian meetings and incentives market towards Thailand. Key factors are the demand for new and competitively priced products, and added value private sector offerings such as discount vouchers, Nooch said.