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With roughly 7.1trn cu feet of natural gas at the end of 2017, down from 10.6trn cu feet in 2007, according to the 2018 “BP Statistical Review of World Energy”, Thailand’s reserves of this critical resource are depleting. As a result, the country is working to diversify its power mix with both conventional and alternative sources. The transition is going smoothly, and new technologies are being brought on-line far faster than expected. Scientific advances, supportive and flexible policies, overcapacity in solar manufacturing and gains in efficiency have made the environment for energy diversification and investment exceedingly attractive. The shift to alternative energy sources is happening so quickly that Thailand is becoming a recognised leader in the region, if not globally. This chapter contains interviews with Siri Jirapongphan, Minister of Energy; Piyasvasti Amranand, Former Chairman, PTT; Bundit Sapianchai, President and CEO, BCPG; and Preeyanart Soontornwata, President, B.Grimm Power.

Steadily improving macroeconomic growth and shifting demographics are creating favourable conditions for the expansion of Thailand’s insurance industry, with reforms aimed at boosting foreign participation supporting a bright outlook for the remainder of 2018. The life insurance segment continues to dominate the country’s insurance landscape, accounting for the bulk of premium and policyholders, benefitting from the ageing population and rising popularity of investment-linked products, which should keep it on a steady growth path in the coming years. The smaller non-life segment is also poised for steady expansion in the short to medium term, with low penetration and density, leaving room for growth. Although the sector remains overcrowded, the industry regulator Office of Insurance Commission (OIC) is increasingly pushing for consolidation. This chapter contains interviews with Vitai Ratanakorn, Secretary-General, Government Pension Fund; and Bryan Smith, President and CEO, Allianz Ayudhya.

Bolstered by improved political stability, positive growth and consumption outlooks, and rising investor confidence, market capitalisation in Thailand rose to pre-1997-98 Asian financial crisis levels for the first time in early 2018 as the Stock Exchange of Thailand (SET) Index hit an all-time high in January. Capital markets authorities have moved to position Thailand as the de facto regional trading centre in ASEAN, enacting reforms to SET’s settlement cycle and encouraging listed companies to register on domestic and international sustainability indices to improve investor confidence. This chapter contains an interview with Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission.

After a decade of external disruption – which saw the 2008 global financial crisis, floods in 2011 and a military coup in 2014 – Thai industry is getting back on track. According to the Ministry of Industry, the manufacturing production index grew by 2.5% in 2017, with stronger growth in the second half of the year. This trend continued in 2018, with January and February both seeing year-on-year growth of 4.7%. The government has also identified 10 priority investment sectors, evenly split into First S-Curve and New S-Curve industries. In terms of retail, general economic stability is having a positive impact on the sector, while years of targeted investment have also supported growth. Some uncertainty remains, however, with consumer debt still elevated. This chapter contains interviews with Kobchai Sungsitthisawad, Director-General, Department of Industrial Promotion; Christian Wiedmann, President, BMW Group Thailand; and Supaluck Umpujh, Chairwoman, The Mall Group.

With a robust export economy dominated by the manufacturing industry, Thailand has long benefitted from foreign investment in key sectors, such as automotive and electronics, while its agriculture and agro-food base has pushed it to the forefront in global rubber, rice and seafood production. Trade and investment have been under pressure in recent years, and a number of factors have contributed to foreign direct investment gradually falling in recent years. Combined with an ageing population and a shrinking low-cost labour force, Thailand is struggling to compete regionally. Government plans to attract new investment in special economic zones located on the border have not come to fruition, and the country is being outpaced by its ASEAN neighbours in terms of investment growth. This chapter contains interviews with Sontirat Sontijirawong, Minister of Commerce; Duangjai Asawachintachit, Secretary General, Board of Investment; and Hiroyuki Ishige, Chairman and CEO, Japan External Trade Organisation; and a viewpoint from Steven Ciobo, Minister for Trade, Tourism and Investment of Australia.

Tourism remains one of the primary drivers of economic growth in Thailand. The sector’s positive performance can be partly attributed to a number of inherent pull factors, including a welcoming culture, abundant natural resources, biodiversity and relative affordability. However, infrastructure has struggled to keep up with the fast-paced growth in visitor numbers, a situation that has led to overcrowding at popular beaches and long lines at airports. To tackle these problems, officials have looked to upgrade transport links and diversify tourism offerings around the country. Recent years have also seen authorities working to reach more high-end travellers, and a number of initiatives have been introduced that aim to position Thailand as an upmarket tourism destination. This chapter contains interviews with Weerasak Kowsurat, Minister of Tourism and Sports; and Dillip Rajakarier, CEO, Minor Hotels; and COO, Minor International.