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Thailand’s rise to the forefront of economic development in South-east Asia over the past three decades was first fuelled by its agricultural prowess, which was then followed by its transition into a regional manufacturing powerhouse, before the more recent push to evolve into a knowledge- and service-based economy. Although numerous factors have aided the country’s achievements across disparate sectors, a common thread that runs through each of these industries has greatly improved their odds of success both internally and internationally: an increasingly modern, capable transportation network. This chapter contains interviews with Arkhom Termpittayapaisith, Minister of Transport; Sombat Kitjalaksana, Managing Director, Bangkok Expressway and Metro; and Usanee Sangsingkeo, Acting President, Thai Airways International.

Economic stability, comparatively well-developed infrastructure and competitive investment incentives have attracted a steady flow of financing to Thailand’s manufacturing sector from both foreign and domestic sources, resulting in one of the strongest manufacturing bases in the ASEAN region and the second-largest economy within the trade block. These investments – made initially in basic industrial areas such as auto manufacturing, simple electronics and food products – have laid the groundwork for future steps up the value chain, while also providing an export-driven stream of revenue for the government to provide further improvements to infrastructure and financial incentives. This chapter contains interviews with Kanit Sangsubhan, Secretary-General, Eastern Economic Corridor Office; Roongrote Rangsiyopash, President and CEO, SCG; and Markus Lorenzini, President and CEO Thailand, Siemens.

At the centre of Thailand’s economic growth, the energy sector is using progressively diverse means to meet the continually increasing demand for energy sources. The country’s growing industrial capacity, ongoing urbanisation and organic population growth are all contributing to rising domestic energy intensity – a trend that policymakers have addressed in a recently unveiled power development plan, which utilises a more varied primary energy mix and greater efficiency to bolster flagging self-sufficiency levels. The sector is working to expand its import and distribution infrastructure to meet growing domestic consumption. This chapter contains interviews with Anantaporn Kanjanarat, Minister of Energy; Piyasvasti Amranand, Chairman, PTT; and Areepong Bhoocha-oom, Chairman, Electricity Generating Authority of Thailand.

Given its low penetration rates, ageing society and the trend towards increased liberalisation, the Thai insurance sector has significant potential and growth is expected to be steady in the coming years. Thais are becoming more interested in savings and wealth-related products, and over time it is also likely that they will have a better understanding of the need to cover risks. Together, these factors could mark a tipping point for the industry. Still, balancing the positive trends are several factors weighing on the sector. The nation’s relatively weak economy, which has made insurance less affordable, is leading to lower than normal premium growth. The sector is also somewhat mature in certain segments. Over the next decade, the Thai insurance market is expected to grow at a slower pace than in the past, but the rate is still comparatively high. This chapter contains interviews with Suthiphon Thaveechaiyagarn, Secretary-General, Office of Insurance Commission; and Michael Plaxton, CEO, FWD Life Insurance.

The Stock Exchange of Thailand has outperformed its regional peers in liquidity and initial public offering growth in recent years, rising to become the best-performing stock market in the Asia-Pacific region in 2016. The bond market has also been a standout performer, despite concerns over rising numbers of short-term bond defaults, with the segment witnessing an influx of foreign capital during the first months of 2017, following a year marked by significant geopolitical volatility and rising capital outflows. Listed companies remain profitable and derivatives market growth has also been positive, bolstered by rising trade in stock and gold futures. While foreign investment in the securities market is forecast to remain flat in 2017, investment in the bond market should continue to rise, with Thailand increasingly viewed as a safe haven from currency volatility. This chapter contains interviews with Kesara Manchusree, President, The Stock Exchange of Thailand; Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission; and Pote Harinasuta, CEO, One Asset Management; and a viewpoint from Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company.

Although stable, liquid and profitable, Thailand’s banking sector saw growth moderate in 2016 as rising defaults in the highly leveraged consumer and small business segments weighed on lending growth. Large corporate lenders have increasingly turned to alternative financing channels, most notably the short-term bond market, further impacting loan growth in 2016. Non-performing loans are expected to peak in 2017, while rising bond yields and regulatory changes to bill of exchange issuance should see larger corporates return to conventional bank financing. Although efforts to digitise the Thai economy will impact fee-based income in the near term, the long-term benefits to the sector and the wider Thai economy should easily offset any losses. As such, the sector’s mid-term outlook remains positive, bolstered by new expansion opportunities in the ASEAN market. This chapter contains interviews with Veerathai Santiprabhob, Governor, Bank of Thailand; Chartsiri Sophonpanich, President, Bangkok Bank; and Darren Buckley, Country Head, Citibank.