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Senate grills DOE on ?5.58-B budget, energy security

THE Department of Energy (DOE) defended its proposed P5.58-billion spending program for 2027 before the Senate on Thursday, outlining plans to strengthen domestic energy security through new oil and gas surveys and greater use of locally produced coal.

Senator Erwin Tulfo, chairman of the Senate Committee on Energy, led the deliberations on the budgets and programs of the DOE, Energy Regulatory Commission (ERC) and other attached agencies and corporations.

Energy Secretary Sharon Garin and other energy officials faced questions on the government’s energy supply, power costs and efforts to reduce the country’s dependence on imported fuel.

Of the DOE’s P5.58-billion spending program for next year, P3.55 billion, or 63.6 percent, will come from automatic appropriations supported by revenues from energy service contracts and other collections.

Only P2.03 billion will come from new appropriations, with DOE Undersecretary Alexander Bacordo saying these would decline by about P935 million from the 2026 level.

The department also disclosed plans to undertake extensive surveys of potential domestic oil and gas resources.

Under the P2.79-billion Philippine Gradiometry and Seismic Survey Project, the government will survey around 40,000 square kilometers of the Agusan-Davao Basin in 2026 and another 80,000 sq km in the Visayan Basin in 2027.

The project revives government-led exploration of major oil and gas basins after about four decades as the Philippines seeks additional indigenous energy resources.

Local coal

Tulfo also questioned why locally produced coal continues to be exported while Philippine power plants rely heavily on imported coal.

‘Bakit hindi natin gamitin yung coal ng Semirara?’ Tulfo asked.

Garin said many existing coal-fired power plants were designed to use Indonesian-grade coal and cannot simply substitute locally produced Semirara coal.

The DOE is therefore studying the establishment of a coal-blending facility or terminal that could mix Philippine coal with other grades to produce fuel suitable for existing power plants.

‘Dapat yung coal natin as much as possible, we use it domestically,’ Garin said.

DOE data showed Indonesia accounted for 98.8 percent of Philippine coal imports in 2023.

Garin said, however, that even if all Semirara coal production were retained for domestic consumption, it would satisfy only around 10 percent of the country’s coal requirements.

ERC seeks bigger budget

The ERC, meanwhile, cited its revenue collections as it sought additional funding for 2027 to accelerate rate reviews, upgrade its digital systems and gradually expand consumer access to the competitive electricity market.

ERC Chairman Francis Saturnino Juan told senators that the regulator generated P2.354 billion in revenues in 2025, more than double its P1.065-billion target.

‘So, as you can see, the ERC is a net revenue generator, a cash machine for the government,’ Juan said.

The ERC said additional resources would support efforts to reduce regulatory backlogs and eventually allow smaller electricity consumers, including households, greater choice of power suppliers.

Also attending the hearing were Senate President Sherwin Gatchalian and Senators Juan Miguel Zubiri and Pia Cayetano.

PHL told: Tap digital, service economy

THE Philippines must tap the digital and service economy more aggressively to accelerate its climb toward high-income status and avoid getting stuck in the middle-income trap, the Asian Development Bank Institute (ADBI) said on Thursday.

ADBI Dean and CEO Bambang Brodjonegoro said the main challenge for the Philippines and other upper-middle-income economies today is adapting to the digital transformation and artificial intelligence (AI) while maintaining the economic foundations needed to sustain growth.

‘AI itself actually is part of the digital economy and also part of service economy, meaning that if the Asian countries would like to escape the middle-income trap, they need to switch quickly to the service economy while still maintaining the foundation of manufacturing,’ Brodjonegoro told reporters on the sidelines of the 12th Annual Public Policy Conference.

The country’s digital economy already accounted for 9.8 percent of the total gross domestic product in 2025, generating P2.74 trillion in gross value added, according to the Philippine Statistics Authority (PSA).

It also employed 10.39 million people, equivalent to 21.2 percent of total employment.

Services, meanwhile, accounted for 64.6 percent of the Philippine economy in the second quarter of 2026, up from 63.3 percent a year earlier, although growth in the sector slowed to 4.5 percent from 6.9 percent.

Brodjonegoro said the shift toward digital and service activities is taking place under a much different global environment from the one faced by earlier Asian economies that successfully moved into the high-income group.

He noted that economies such as South Korea, Taiwan, Hong Kong, and Singapore benefited from manufacturing, export-oriented growth, and a more favorable geopolitical environment.

Today, however, geopolitical and geoeconomic fragmentation has changed the environment for developing economies.

‘There is no special interest from the bigger economy to help the middle-income Asia to be high-income,’ Brodjonegoro said, adding that a country now has to largely ‘fight for itself.’

Unlike during the Cold War, when major powers had stronger strategic incentives to support allied Asian economies, today’s global economy is more fragmented, he said.

This means upper-middle-income economies have less external support as they seek to move up the income ladder.

At the same time, the ADBI chief noted that today’s economies face challenges that earlier Asian economies did not confront at the same scale, particularly AI and climate change.

Brodjonegoro said AI is changing the role of services in economic development, giving Asian economies an opportunity to capture new sources of value through digital transformation while retaining their existing economic foundations.

Climate change, meanwhile, is putting additional pressure on public resources.

Countries such as the Philippines and Indonesia are experiencing more typhoons, floods and other hydrometeorological disasters, requiring spending on relief and reconstruction.

These pressures mean the path toward high-income status is now more difficult, Brodjonegoro said.

‘In general, you will see that opportunities are maybe the same or a bit shrinking, but the cost or effort will be much harder,’ Brodjonegoro said.

‘I would say that the challenge of current upper-middle-income Asia will be much more difficult than the past upper-middle-income Asia.’

The Philippines entered the World Bank’s upper-middle-income category on July 1 after its gross national income (GNI) per capita reached $4,850 in 2025, exceeding the $4,635 threshold for the income group.

LAWMA seals premises, arrests 11 persons over illegal waste dumping

In renewed enforcement efforts, the Lagos Waste Management Authority (LAWMA) has sealed premises identified for persistent illegal waste dumping along Ago Palace Way and arrested 11 persons for illegal waste disposal in various parts of Lagos Island.

The Managing Director/Chief Executive Officer of LAWMA, Dr Muyiwa Gbadegesin, said the enforcement operations underscored the Authority’s resolve to enforce existing waste management regulations and ensure compliance with approved waste disposal practices across Lagos.

He explained that the Ago Palace Way operation covered plazas, hotels, lounges and warehouses along the corridor as part of efforts to tackle activities contributing to waste build-up and environmental nuisance on road setbacks, medians and other unauthorised public spaces.

He added that the enforcement exercise on Lagos Island, covering Tinubu, Apongbon, Oke-Arin and CMC areas, led to the arrest of 11 persons for unauthorised handling and illegal disposal of waste.

The 11 persons arrested were Shabban Tasiu, 20; Nkechukwu Nwokeji, 40; Kolawole Elija, 28; Sunni Sado, 30; Subairu Lawal, 28; Abi Lawal, 22; Sufianu Musa, 20; Yusuf Lawan, 18; Ahmed Lawal, 25; St Peter Eze, 23; and Udo Richard, 32.

Gbadegesin reaffirmed that indiscriminate waste disposal remained detrimental to the environment and could undermine sanitation gains across the state, urging residents, traders and businesses to desist from dumping waste on roads, walkways, drains and other unauthorised locations.

He stated that waste should be properly bagged and handed over to accredited Private Sector Participation (PSP) operators, adding that businesses and property owners must take responsibility for waste generated within and around their premises.

According to him, the enforcement exercise formed part of LAWMA’s broader strategy to improve environmental cleanliness, tackle violations at source and promote responsible waste management behaviour.

He said the Authority would continue to monitor different parts of the state and take appropriate enforcement action against persons and businesses found violating environmental regulations.

He reiterated that the enforcement exercise was not intended merely to apprehend offenders, but to promote compliance and encourage a sustained change in public attitude towards waste management.

The LAWMA boss urged residents, traders, businesses and property owners to comply with environmental regulations, use approved waste disposal channels and support the Authority’s efforts to keep public spaces clean, accessible and environmentally safe.

He encouraged members of the public to report instances of illegal dumping and other waste management violations through LAWMA’s established channels, stressing that achieving a cleaner Lagos required the collective responsibility of the government, residents, businesses and other stakeholders.

BSP to tighten disciplinary actions vs erring banks, officials

The Bangko Sentral ng Pilipinas (BSP) is proposing a more streamlined process for disciplining errant banks and their directors, officers and employees, with penalties ranging from reprimands and fines to suspension, removal from office and disqualification.

The BSP is collecting comments from stakeholders on a draft circular that will spell out how the BSP will investigate and decide administrative cases against banks and other BSP-supervised institutions, and against their directors, trustees, officers and employees.

Under the proposed rules, the complaint must be written, sworn and supported by evidence, such as documents or witness affidavits. Anonymous complaints are not accepted.

Complaints involving purely criminal, civil and labor disputes, or those within the exclusive jurisdiction of the regular courts and other government agencies, will be dismissed.

Right to reply

The bank or employee accused of wrongdoing gets 30 calendar days to submit a sworn answer and supporting evidence. Failure to reply on time means they waive their right to file it, and the central bank’s hearing officer can decide the case based on the complainant’s evidence.

Any withdrawal of complaint will neither result in its outright dismissal nor discharge the accused from possible sanctions when there is merit to the charges, the draft said.

The proposed rules will impose different penalties depending on the seriousness and frequency of a violation.

A first minor offense will generally draw a

reprimand, with a warning that a subsequent violation could result in a more severe sanction. A second or subsequent minor offense could lead to a suspension of one to six months.

Serious offenses carry heavier penalties. A first serious offense could result in a suspension of six months and one day to one year, while a second or subsequent offense could lead to removal from office or disqualification

The decision may be appealed before the Monetary Board and the Court of Appeals.

LIVE: Alas Pilipinas vs Kazakhstan – Asian Games 2026 women’s volleyball

Alas Pilipinas seeks a bounce-back in the Asian Games 2026 women’s volleyball preliminary phase.

FINAL: Alas Pilipinas ousted by Kazakhstan, 29-27, 24-26, 23-25, 19-25, in the Asian Games 2026 women’s volleyball. After a winless Pool B campaign, the Philippines will play in the classification round.

Kazakhs nail back to back aces for a 21-13 spread.

Kazakhstan looking to wrap things up with a 17-11 lead.

Solomon ace to tie the game at 6. OF SET 3: Kazakshtan 25, Alas Pilipinas 23

Gagate blocks Nikitina to tie the game at 23.

Laure trims it to one anew, 22-23.

Solomon blocks Belova to cut it down to 22-21.

Nikitina gives Kazakhstan a 22-20 breather.

Canino ties it at 19!

Alas mounting another comeback. One point deficit, 18-19

Gagate makes it a three-point game, 13-16.

Two consecutive aces from Canino. Alas still down, 10-14.

The Kazakhs continue to dominate with a 12-7 lead.

Kazakhstan heats up early in the third, 5-1. OF SET 2: Kazakhstan 26, Alas Pilipinas 24

Canino ties it at 24 anew!

Alas saves a set point after Kazakhstan’s attack error.

Nikitina sends Kazakhstan to set point, 24-22.

Solomon keeps it a one point deficit, 23-22.

Laure down the line! one point game for Alas, 21-22.

Make that four in a row for Solomon! Alas within two, 20-22.

Solomon continues to step up. Alas, 19-22.

Solomon trying to spark a comeback with a big block. Alas still trailing, 18-22.

Nikitina restores the order. Kazakhstan with a 19-13 lead.

Mars Alba with a 1-2 play. Alas still behind, 13-17.

Three straight points by Alas. They are down, 14-10.

Kazakhstan hits its fourth block in Set 2 for a 12-7 lead.

Back to back points for Eya Laure to cut Kazakhstan’s second set lead, 9-7.

Laure seals it! END OF SET 1: Alas Pilipinas 29, Kazakhstan 27

Another one for Canino, 28-27.

Canino keeps Alas lead, 27-26.

Canino sends Alas to set point., 25-24.

Eya Laure forces a deuce!

Eya Laure saves a point.

Kazakhstan hits two crucial blocks to reach set point, 24-22.

Crucial service error by Jia De Guzman. We’re tied anew at 22.

Nina Yang with a quick attack. Alas leads, 22-21.

Back to back errors by the Kazakhs. We’re tied at 21.

Canino ties it at 18!

Belen breaks the wall to make it a one point game.

Canino nails an ace. Alas behind by two, 16-18.

Amie Provido stops the bleeding for Alas. They are down 14-17.

Kazakhstan seizes the momentum with a 16-13 lead.

Back to back errors by Alas, as Kazakhstan takes a 13-12 lead.

Bella Belen scores off a combination play. Alas, 12-10

Kazakhstan ties the first set to 9 after three consecutive points.

Alyssa Solomon and Canino keep Alas ahead, 6-4.

Angel Canino gives Alas a 2-0 start against the Kazakhs.

Refresh this page for updates.

It was far from the start Alas Pilipinas wanted for its women’s team in the Aichi-Nagoya Asian Games-but neither was it unexpected.

So the nation’s brightest volleyball stars are milking the result for whatever they can get from it.

‘[W]e came into this tournament very excited, very ready to learn, and very ready to be put out of our comfort zone,’ said team captain Jia De Guzman in an interview with local Games broadcaster One Sports after absorbing a 25-18, 25-22, 25-8 defeat at the hands of nine-time Asiad champion China on Wednesday.

For the Alas women, the Asian Games stint provides a perfect competitive laboratory to begin building the future of the national volleyball program.

‘All of the things that happened the past year have really led to us coming into this moment,’ added De Guzman. ‘And it doesn’t stop here. We’re really trying to absorb all of the experience that we can because this is a stepping stone for all the plans in the future for the Philippine national volleyball team.’

There’s little consolation in a defeat, but the silver lining shone brightly. The Filipino women gave a good account of themselves against a team that is aiming for a third straight Asiad crown.

Alas’ Canino shines in Asian Games debut, ready for must-win vs Kazakhs

MANILA, Philippines – Angel Canino sticks to the positives after her impressive Asian Games debut ended with Alas Pilipinas Women getting swept by defending champion China.

Canino shone in her first Asiad with 14 points in the 18-25, 22-25, 8-25 loss the defending champions on Wednesday at Okazaki Chuo Sogo Park Gymnasium in Japan.

‘Actually, we really believe that we’re capable of doing it. Maybe we just need more preparation and, of course, more time to build our chemistry. In volleyball, you can’t expect everything to come together quickly in just a year or a few months,’ Canino told official broadcaster One Sports in Filipino.

‘We trust that we can do it. Of course, that’s where the difference showed today – China has more experience than we do. Hopefully, one day, whatever we saw from ourselves today will become something we can consistently show moving forward,’ she added.

Japanese investor Yoshimichi Watanabe backs Hunas Holdings ahead of expansion

Japanese investor Yoshimichi Watanabe has entered into a partnership with Colombo Stock Exchange-listed Hunas Holdings PLC, in a move that comes as the diversified conglomerate prepares a significant expansion of its hospitality and real estate interests in Sri Lanka.

The partnership brings foreign capital and international market experience into one of Sri Lanka’s fastest-diversifying listed groups at a point when the Group is actively building out its pipeline across both sectors. Hunas Holdings is currently evaluating a series of hospitality and real estate developments in Sri Lanka, with further announcements expected in the coming months.

Hunas Holdings PLC operates across hospitality and leisure, real estate, renewable energy and agriculture, with a hotel portfolio that includes Hunas Falls in Elkaduwa

For Sri Lanka, the significance of the partnership extends beyond the two parties. Inbound investment of this nature, from an investor with direct and sustained experience of the market, is a measure of returning confidence in the country as a destination and in the underlying fundamentals of its hospitality sector, at a time when the industry is repositioning towards higher-value, experience-led travel.

Watanabe brings investment experience across e-commerce, hospitality and real estate in Japan and in international markets including Bali, Indonesia. He has also maintained a relationship with Sri Lanka over many years, having made multiple investments in the country, giving him first-hand insight into its business environment, regulatory landscape and long-term potential.

While acknowledging the economic pressures Sri Lanka has faced, Watanabe takes a deliberately counter-cyclical view, arguing that the current climate offers a window in which long-term value can be created rather than a reason for caution.

‘Having spent many years connected to Sri Lanka, I have seen both its challenges and its remarkable potential,’ said Yoshimichi Watanabe. ‘I understand the economic realities the country has faced, but I also believe this is the moment to look beyond the immediate picture and invest with a long-term perspective. Hospitality and real estate are where I see the clearest opportunity, and in Hunas Holdings I have found a partner with the local strength, the asset base and the ambition to build something meaningful.’

The partnership combines Watanabe’s international investment experience and long-term conviction in Sri Lanka with Hunas Holdings’ established local presence, operating assets and market knowledge, positioning both parties to move quickly as the Group’s expansion plans take shape.

Facing the future challenges: What risks will matter most?

Insurance has traditionally been thought of in simple terms. Life cover for families, health cover for hospital bills, and property cover for homes and vehicles. But the world is changing quickly, and the risks people face are changing along with it. Sri Lanka is no exception. As lifestyles shift, technology advances, and new ways of working emerge, the insurance industry is being pushed to think beyond its traditional boundaries. What risks will matter most for us in the years ahead?

Climate Change as a Permanent Risk

Climate-related risks are already a part of daily life in Sri Lanka, but their scale is expected to grow. Floods, landslides, droughts, and storms are likely to become more frequent and more severe in the coming years. This means that insurance products related to climate risk will need to expand significantly.

In the future, we may see more specialised products designed specifically for flood-prone areas, agricultural insurance tailored to changing rainfall patterns, and coverage options that respond quickly after a disaster rather than requiring lengthy claim processes. Insurers will also need to reassess how they price policies in high-risk zones, as climate patterns continue to shift away from historical norms.

The Rise of Cyber Risk

As more of us move our financial lives online, from banking to shopping to running small businesses through digital platforms, the risk of cyberattacks and digital fraud grows alongside it. Businesses face threats such as data breaches, ransomware attacks, and financial fraud carried out through hacked systems.

Cyber insurance, which is still relatively new in Sri Lanka, is likely to become far more relevant in the coming years. Businesses of all sizes, not just large corporations, may need coverage that protects them against financial losses, legal costs, and reputational damage caused by cyber incidents. Individuals too may increasingly look for protection against personal digital fraud, such as unauthorised transactions or identity theft.

Changing Lifestyles and New Kinds of Risk

The way we live is evolving. Urban living, changing diets, and increased screen time are contributing to a rise in lifestyle-related health conditions such as diabetes, heart disease, and stress-related illnesses. This shift is likely to influence health insurance products, pushing insurers to design plans that also encourage preventive care, regular health screenings, and wellness programmes, rather than only covering treatment after illness occurs.

At the same time, changing family structures, such as more people living independently or delaying marriage, may create demand for insurance products tailored to individuals rather than only traditional family units.

Electric Vehicles and New Transport Risks

Electric vehicles are gradually becoming more common on Sri Lankan roads. While they offer environmental benefits, they also introduce new considerations for insurers. Battery damage, charging-related incidents, and the higher repair costs associated with specialised electric vehicle parts are all factors that traditional motor insurance policies may not fully address.

In the coming years, insurers are likely to develop policies specifically designed for electric vehicles, taking into account these unique risks and the different cost structures involved in repairing or replacing electric vehicle components.

Gig Work and the Changing Nature of Employment

More people are now working as freelancers, delivery riders, ride-hailing drivers, and independent contractors rather than in traditional full-time jobs. This shift, often called gig work, creates a challenge because many of these workers do not have access to the employment benefits that traditionally include health cover, accident protection, or retirement savings plans.

This growing segment of the workforce represents an important opportunity for insurers to design flexible, affordable products specifically suited to gig workers, such as short-term accident cover, pay-as-you-go health insurance, or simplified retirement savings plans that do not depend on traditional employment structures.

The Challenge of Rising Healthcare Costs

Healthcare costs in Sri Lanka, as in many countries, continue to rise due to factors such as advancing medical technology, higher costs of imported medicine, and increasing demand for specialised treatment. This trend places growing pressure on both individuals and insurers.

In response, future health insurance products may need to focus more on cost management tools, such as encouraging use of network hospitals, promoting early diagnosis, and offering tiered plans that balance affordability with adequate coverage. Without such adjustments, healthcare costs risk becoming unaffordable for a growing number of families.

Preparing for a Different Future

Sri Lanka’s insurance industry stands at an important turning point. The risks of tomorrow will look quite different from the risks of the past. Climate change, digital threats, evolving lifestyles, new transport technology, changing employment patterns, and rising healthcare costs are all reshaping what protection actually means.

For insurers, this means innovating beyond traditional products. For consumers, it means staying informed and reassessing their coverage regularly, rather than assuming that policies designed for the past will be enough to protect them in the future. A changing Sri Lanka needs insurance that changes with it.

Global markets trade mixed ahead of Fed’s rate decision

Global markets traded on a mixed trend as the Fed is highly likely to hike rates for the first time in three years.

Markets are anticipating a 25-basis-point rate hike due to strong US employment, rising inflation expectations and Fed Chair Kevin Warsh’s statements on price stability.

The US 10-Year Treasury yield rose to its highest since July 2007 at 5.04% on Tuesday and stabilized at 5% on Wednesday after Treasury Secretary Scott Bessent said the US bond market showed the world’s best performance.

November-delivery Brent crude dropped 0.6% to $108.1 a barrel despite concerns over geopolitical risks as US inventories rose, while gold was trading down 0.6% at $4,321 per ounce.

The US dollar was down 0.1% at 99.6 due to fiscal concerns despite rate hike expectations.

The New York Stock Exchange traded down on Tuesday due to rising bond yields dampening risk appetite.

Meanwhile, European stock markets traded negatively on Tuesday due to rising oil prices and selling pressure in bond markets.

Germany’s ZEW Economic Sentiment Index rose from 34.2 in August to 34.7 in September, marking a modest increase but still coming in below the estimated level of 40. At the same time, Deutsche Bank shares dropped 2.4%.

The UK’s FTSE 100 fell 0.37%, France’s CAC 40 declined 0.34%, Italy’s FTSE MIB 30 dropped 0.14% and Germany’s DAX 40 closed Tuesday down 0.15%. European indexes started Wednesday on a mixed trend.

At the same time, Asian equity markets enjoyed boosted risk appetite amid slightly easing selling pressure in the bond market.

HNB TxB clients gain single-portal access to all LankaPay Government Biller

HNB PLC, has enabled online payments to all Government institutions connected to LankaPay’s Online Payment Platform via its Transaction Banking (TxB) platform with effect from 1 September 2026, allowing every HNB TxB client across the SME, Business Banking, Emerging Corporates and Corporate Banking segments to make payments to Government and regulatory bodies through a single online portal.

The Government billers now available through HNB TxB include Sri Lanka Customs (Automated System for Customs Data), the Board of Investments, Central Depository Systems, the Department of Commerce, the Department of Fisheries, the Sri Lanka Export Development Board, the Employees’ Provident Fund, the Import and Export Control Department, the Inland Revenue Department, the Sri Lanka Ports Authority, the Sri Lanka Standards Institution and all 306 Government institutions connected to GovPay.

Clients can now settle payments to these institutions in real time through one secure channel, removing the need for manual, institution-by-institution submissions.

HNB Chief Operating Officer Sanjay Wijemanne said: ‘With this activation, every HNB TxB client, from SMEs to large corporates, can manage their payments to several Government institutions and regulatory bodies through a single portal. It replaces manual processes with one online channel that is faster and easier to reconcile. As more Government institutions move towards fully digital payment processes, our clients can make these transitions seamlessly through HNB TxB.’

As the operator of Sri Lanka’s national payment network, LankaPay provides the central payment infrastructure to the country’s financial sector. Its Online Payment Platform allows businesses and the public to make real-time payments to state institutions, especially high value transactions which cannot be made as a regular fund transfers

LankaPay CEO Channa de Silva said: ‘LankaPay Online Payment Platform was launched in 2017 to give businesses and the public a real-time, secure way to make payments to Government institutions. HNB bringing all registered billers onto its transaction banking platform extends this reach across its corporate client base is a positive move towards facilitating the digital transformation of the state sector and the country’s journey towards a fully digitally enabled economy.’

With several Government institutions connected to the LankaPay Online Payment Platform already mandating online payments, HNB’s extension of the platform across TxB supports this shift and the Government’s broader digitalisation agenda for public payment services.

Skill Bridge to train over 80,000 in targeted sectors

A previous phase approved 42 projects under Skill Bridge with total funding of 2.03 billion baht and workforce development plans for 76,728 people, bringing the total number of people covered by workforce development plans to more than 80,000.

Workforce development projects are assessed in terms of curriculum standards, alignment with the needs of the industrial sector, the expertise of trainers and readiness to provide training.

The goal is to ensure the skills can be put to practical use in industry, helping Thai workers qualify for jobs requiring higher levels of skills and offering greater value, said Ms Lalida.

The challenge for the government is not simply how to attract more investment to the country, but also how to ensure such investment creates more opportunities for Thai businesses and people, she said.

The government needs to accelerate efforts to help Thai entrepreneurs gain access to artificial intelligence (AI), automated systems, R and D and new technologies, while developing workers with skills that match the needs of industry, said Ms Lalida. This effort will ensure that when new industries grow in Thailand, Thai businesses can become integrated into their supply chains and capture a greater share of the benefits generated by that growth, she noted.

“The government aims to promote investment while strengthening the economy, including upgrading the technology used by Thai companies, developing the workforce, increasing domestic procurement and facilitating knowledge transfer,” said Ms Lalida.

“The goal is to ensure Thailand is not merely a destination for investment, but also has Thai businesses and workers capable of growing and creating greater value alongside the industries of the future.”

The Competitiveness Enhancement Fund also provided financial support for business transformation, recently approving funding for 48 projects with a total investment of 3.54 billion baht, including 1.66 billion baht from the fund.

The projects cover R and D, improving business efficiency through modern technologies, adopting automation, digital technologies and AI, as well as transitions into new and green industries.

The goal of the scheme is to ensure Thai entrepreneurs have sufficient technology and productivity to grow alongside the industries of the future, she noted.

Some 66 projects received support for business transformation, representing total investment of 5.80 billion baht, with 2.79 billion baht allocated from the fund.

The Board of Investment, which oversees the National Competitiveness Enhancement Fund, estimates all of these projects will increase participating businesses’ revenue by 3.90 billion baht per year, bolstering domestic procurement of raw materials, components and services by more than 7.10 billion baht annually.

The benefits of investment should not be confined to the companies receiving investment promotion, but also extend to Thai component manufacturers, suppliers and service businesses throughout the supply chain, said Ms Lalida.