Pakorn Peetathawatchai, president of the SET

Pakorn Peetathawatchai, president of the Stock Exchange of Thailand (SET), says 2021 will be a year of radical changes as the private sector and the state need drastic and timely adjustments to avoid permanent economic scarring.

Global uncertainties have prompted the country to enter economic transitions several times in the past, such as the transition from an agriculture-driven to an industry-driven economy or the transition to a service-dominated economy led by tourism, said Mr Pakorn.

To survive this tumultuous period, Thai businesses must once again reconfigure their business processes to enhance their operating efficiency and add value to their products and services.

“In the past, the private sector was able to adapt to changes without the government’s assistance, but it is different this time. The sector needs help from the state to lubricate business operations and make the adjustments required in this critical period,” he said.

Most SET- and MAI-listed companies have proved they can swiftly adjust to changes. However, 700 members of the SET and MAI-listed companies constitute just a small portion of enterprises in Thailand.

“We cannot keep sustainable growth in this taxing time if we still run businesses the same way,” Mr Pakorn said.

He sees service-related sectors, such as tourism, food, healthcare and public health, remaining as the country’s strengths, making the progress in vaccine development a key uncertainty to watch.

“We should use and magnify our strong points by promoting more players in these sectors, assisting existing players and helping them do business more efficiently,” he said.

In Mr Pakorn’s view, competitive traditional sectors can flourish together in the new economy.