World Bank highlights reform priorities for Thailand’s growth

The World Bank has launched its Systematic Country Diagnostic (SCD) Update for Thailand, highlighting five reform priorities for the Southeast Asian country to revitalise growth amid an enduring downturn.

The report entitled “Shifting Gears: Toward Sustainable Growth and Inclusive Prosperity” identified the five reform priorities as building strong human capital; creating a competitive and innovative economy; unlocking growth in secondary cities; ensuring sustainable and climate-resilient development; and strengthening fiscal institutions and public finance.

“These reforms are pivotal for Thailand to ascend to the status of an advanced economy in the foreseeable future, characterised by greater societal equity and a more sustainable, climate-resilient economy,” said World Bank Country Manager for Thailand Fabrizio Zarcone, according to Xinhua.

The report highlighted that to become a more innovative and inclusive economy, Thailand must improve learning outcomes and close skills gaps by increasing education spending, optimising resource allocation, and aligning education with labour market needs. Thailand must also enhance tech competitiveness, strengthen competition regulations, attract skilled professionals, and empower small and medium-sized enterprises through increased access to finance for innovation.

It noted that to attain economic prosperity while upholding environmental integrity, Thailand also needs to promote sustainable agricultural practices and responsible tourism, which would also include addressing the challenges posed by climate change, including preventing and mitigating floods and droughts, improving the management of water resources, and prioritising sustainable energy transition.