Insights on the JFCCT Prime Minister’s Address Luncheon 2025
Siam Trade Development had the honor of being among the 530 delegates invited to the JFCCT Prime Minister’s Address Luncheon 2025, organized by the JFCCT (Joint Foreign Chambers of Commerce in Thailand), participating in a dual capacity as members of the Thai-Russian Chamber of Commerce and the JFCCT SME Committee. The event was a crucial opportunity to discuss Thailand’s economic future and strategies to attract global investments.
Prime Minister Paetongtarn Shinawatra outlined an ambitious reform plan aimed at enhancing the country’s competitiveness, streamlining bureaucracy, and promoting a sustainable development model. The government’s vision focuses on digitalization, modern infrastructure, and a more investor-friendly environment. However, several critical issues remain to be analyzed, both in terms of strategic impact and practical implementation.
Our purpose is not to summarize the speech but to analyze it. More details on the speech are available in Bangkok Post artcile, here: Bangkok Post article.
Let’s now analyze the main topics emerged in the meeting.
1. Thailand and the WEF 2030 Agenda: A Late and Risky Implementation
Thailand is attempting to align itself with the principles of the WEF 2030 Agenda, a model that many Western countries are now reconsidering due to its high costs and the economic sovereignty loss it entails. While the country does need greater sustainability and governance, fully adopting this agenda could lead to increased operational costs and a loss of competitiveness—outcomes that align with the WEF’s strategy but not necessarily with Thailand’s national interests. The challenge will be to strike a balance between sustainable development and economic independence, avoiding the strategic subordination that other nations are already trying to escape.
2. Regional Competition: Thailand Should Not Fear Its Neighbors
Unlike Vietnam, Indonesia, and Malaysia, Thailand enjoys a clear advantage in infrastructure, security, and service quality. The real threat does not come from competition with these countries but from Thailand’s potential decision to lower its standards to compete on price with emerging economies. Such a strategy would be doomed to fail, as the country could never win a race based solely on labor costs. Instead, Thailand should focus on innovation, efficiency, and added value to solidify its position as a regional economic hub.
3. Bureaucracy and Investor Attractiveness: A Necessary Change
Thai bureaucracy is complex but not more so than in other Southeast Asian countries. It is more of a cultural factor than a structural one, making it difficult to reform in the short term. However, what can and must change immediately is the approach toward foreign investors. The corporate ownership rule (51% Thai – 49% Foreign) is now obsolete and a real obstacle to growth. While exemptions like the Foreign Business License (FBL) or the Board of Investment (BOI) exist, the criteria for obtaining these benefits are often outdated and unclear. The work visa issuance system also requires significant revision. From the Prime Minister’s speech, it seems that major reforms in this area are imminent, and their implementation will be crucial for the country’s future.
4. Economic Sovereignty and Geopolitics: The Three Competing Blocs
Thailand maintains a strong national identity but must carefully manage external geopolitical pressures. Currently, three major economic blocs are trying to strengthen their influence in the country:
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Europe: After twelve years of stalemate, a free trade agreement (FTA) between Thailand and the EU appears close. However, the terms of the agreement could lead to a loss of banking sovereignty and forced adherence to WEF policies, with potentially negative impacts on the local economy. Aligning with a project (Europe) that has already shown its limitations and, due to reckless decisions over the past five years, is at risk of dissolving does not seem like the best opportunity for Thailand.
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China: Chinese investors already enjoy a privileged position in Thailand and may demand further concessions, risking a market imbalance and reduced regulatory control.
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USA: The United States, following President Trump’s wise decision to dissolve USAID (which was essentially an economic and cultural influence tool designed more to control than to support SEA development), appears less active in the region. However, the U.S.-Thailand friendship treaty still provides American investors with favorable conditions, even though Washington currently seems more focused on other domestic and global priorities.
Conclusion on JFCCT Prime Minister’s Address Luncheon: A Modern and Competitive Thailand
Thailand has all the necessary assets to play a leading role in the global economy, offering high-quality services, a skilled workforce, and internationally valued products. To achieve this, the country must undergo modernization, including:
- Bureaucratic simplification, with clearer and more accessible regulations for foreign investors.
- A market-oriented mindset, overcoming regulatory and cultural barriers that hinder international business.
- Internal control of reforms, ensuring they benefit the country rather than serving external interests.
The challenge is open, and Thailand’s future is in its own hands. It will be interesting to see how the government manages this process and whether it can seize opportunities without compromising its sovereignty. Let the games begin…
