Thailand anticipates investments worth $5 billion from tech giants Google, Tesla , Microsoft

Thailand's Prime Minister, Srettha Thavisin, announced on Sunday a landmark investment commitment from technology giants Tesla, Google, and Microsoft, potentially injecting a substantial $5 billion into the Thai economy. The Prime Minister gave his statement upon returning from the 78th session of the United Nations General Assembly in New York, where he engaged with top executives from these influential companies to promote investment in Thailand, according to a report by the Bangkok Post.

According to Mr. Thavisin, Tesla is eyeing the construction of an electric vehicle (EV) manufacturing facility, while Microsoft and Google are exploring the establishment of data centres within the Kingdom. While he made the statement, he emphasised the importance of these investments in rejuvenating Thailand’s economy.

This investment surge comes at a crucial time for Thailand, whose economy is facing challenges, with growth projected at 2.8 per cent this year, lower than initial estimates, due to limited exports. Prime Minister Thavisin's discussions with Tesla CEO Elon Musk in the U.S. underscore the potential of Thailand's electric vehicle (EV) industry, with the nation actively incentivising EV and battery manufacturers to set up regional production centres. Concurrently, the Thai government is offering tax incentives to boost local EV adoption, aiming to become a regional leader in EVs.

In addition to this, Thavisin expressed his intent to attend the upcoming Asia-Pacific Economic Cooperation (Apec) Leaders' Meeting in San Francisco in November. He plans to collaborate with Thai business leaders to engage with global companies and discuss investment opportunities both in Thailand and the United States.

Thavisin emphasised the importance of financial support for international investors looking to establish branches in Thailand and hinted at potential collaborations with the New York Stock Exchange (NYSE) to list Thai companies in the U.S., marking a significant step forward in international investment relations.

However, the Bangkok Post also reported that some experts, such as Tawisant Lonanurak, a former secretary-general of the Thai Chamber of Commerce's northeastern divsion, urge caution. They believe that major foreign companies will carefully evaluate various factors, including political stability, tax policies, and the rule of law, before committing to investments in Thailand. Lonanurak also underscored the need for Thailand to prioritise negotiating more free trade agreements with its global trading partners to maintain a competitive edge.

(With inputs from Reuters)