Despite the country's dependence on tourism to boost its revenue, Thailand needs to further drive its economy through electric vehicles (EVs) and bio-, circular and green (BCG) economic development amid a rapidly changing world, says the Federation of Thai Industries (FTI).
The world is increasingly disrupted by high-level digital technology and is adopting more clean energy in an effort to combat climate change.
A new government must be aware of these factors and design policies that match the changing technological, environmental and economic conditions, said Kriengkrai Thiennukul, chairman of the FTI.
"The business sector is adjusting itself to the challenges, but we need appropriate state policies to support us," he told an annual economic seminar, held by the Thammasat Economics Association.
The forum, held after the House of Representatives was dissolved on Monday, gathered the views of key business leaders on what the country could look like in the future.
"BCG and EV can help Thailand escape the middle-income trap," said Mr Kriengkrai.
EV policies can level up the country's automotive industry, which would eventually help boost the national economy and reduce carbon dioxide emissions at the same time.
The government is promoting EV industry development by launching a package of incentives, including tax cuts and subsidies, to stimulate EV consumption and production between 2022-2023.
Authorities have declared BCG as a national agenda item, hoping to use it to direct national economic development.
Under BCG, manufacturers are encouraged to adopt techniques to add value to their products and cause little or no impact on the environment.
Making manufacturing more eco-friendly would also help the country's exporters avoid new trade barriers such as the Carbon Border Adjustment Mechanism (CBAM), said Mr Kriengkrai.
Initiated by the EU, CBAM imposes charges on manufacturers which fail to adopt technology that benefits the climate.
CBAM is scheduled to take effect with a transitional phase starting on Oct 1 this year.
During this period, importers of goods are required to report greenhouse gas emissions embedded in their imports, without making any financial payments or adjustments.
CBAM initially covers the import of certain goods to the EU, including cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
The campaign against greenhouse gas emissions could also provide new business opportunities for Thailand, said Kirana Limpaphayom, chief executive of SET-listed Banpu Power Plc.
There are various businesses related to clean energy development and better energy management, he said.
They include technology-based businesses which encourage households and businesses to both produce and consume electricity.
Carbon credit trade can also be a new source of revenue, Mr Kirana said.
The government needs to launch new measures to help entrepreneurs in the healthcare industry turn Thailand into an Asean medical tourism hub, said Tanatip Suppradit, chief executive of Thonburi Healthcare Group.
Entrepreneurs must keep pace with technological development, notably artificial intelligence which is playing a more important role in healthcare businesses, he said.
