Research: EEC tech outlays to hike GDP growth
The government’s flagship Eastern Economic Corridor (EEC) development should lift economic growth to above 5% from 3-4%, Siam Commercial Bank’s (SCB) research unit forecast yesterday.
“The Economic Intelligence Center [EIC] expects the robotics and automation, aviation and digital clusters to offer large opportunities for investors interested in the EEC project,” said Vithan Charoernphon, senior vice-president and head of the service cluster for EIC. “Those clusters are initial industry segments where EIC expects to see real investment.”
The EEC, to be located in Rayong, Chon Buri and Chachoengsao provinces, will be home to the government’s 10 targeted industries comprising next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
The government hopes the 10 industries will drive sustainable economic growth.
The draft EEC law, pending deliberation by the Council of State, is expected to be read and approved by the National Legislative Assembly this month.
The robotics and automation clusters offer opportunities as Thai society ages, resulting in increasing demand for these products, he said.
“EIC forecasts the robotics and automation clusters will break even in 6-10 years. Thailand’s robotics and automation market continues to grow by 20% per year and Thailand imports an average of 10,000 robotic units per year, so the EEC project is an opportunity for investors,” said Mr Vithan.
The EIC project robotics and automation will replace 650,000 workers in Thailand in the future.
The research house estimates the EEC project will boost public investment growth to 8.7% this year from 1.5% last year and private investment to 3% from last year’s 1.7%, he said.
Mr Vithan expects the overall number of aviation fleets in Thailand will double in the next six years and budget carriers will lead the growth to serve tourist demand and new airports in Thailand.
“Some 70% will be low-cost aircraft and will benefit the Maintenance Repair Overhaul centre in U-tapao airport because stronger demand for aerospace and aviation parts will serve the growing aviation industry in Thailand and the region,” he said.
The government plans to invest 160 billion baht to develop U-tapao airport.
For the digital cluster, EIC expects the Internet of Things (IoT) will set a trend in Thailand because it is a technology base for many industries such as food, automotive and medical.
“The agricultural segment should apply IoT systems as the government wants to modernise farming systems and help make farmers more technologically proficient, in line with Thailand 4.0 policy,” said Mr Vithan.
EIC expects IoT will increase rice farmers’ production efficiency by 30-50% per rai and lift their output to 480 kilogrammes per rai — close to global production capacities. He said IoT is suitable for controlling plantdisease, water management and ground tracking systems.