The government is moving ahead with its ‘Five Pillars of the Economy’ initiative, combining short-term economic stimulus with long-term structural reforms aimed at improving competitiveness, according to Finance Minister Ekniti Nitithanprapas.
The strategy focuses on empowering small and medium enterprises (SMEs), grassroots communities and the middle class, while laying the foundation for a transition to a green and digital economy, he said on Saturday at Sustainability Expo 2025 in Bangkok.
Speaking at the Thailand Supply Chain Network Business Partner Conference 2025, which focused on macroeconomic adaptation in a changing global context, Mr Ekniti stressed the importance of national adaptability.
‘The global landscape is undergoing significant transformation, particularly in trade and investment. Thailand’s economic growth has long relied on global supply chains,’ he said.
However, he noted that the global paradigm has shifted dramatically.
‘We are no longer in a purely globalised world, but in a fragmented one – one of ‘localisation’ and geopolitical bipolarity,’ he said.
‘The global free trade order has given way to one where nations are increasingly pressured to choose economic alliances. Those outside a given bloc may face trade restrictions or be excluded altogether.’
He went on to explain that low-cost goods are no longer guaranteed access to international markets due to rising protectionist measures, including tariffs and regulatory scrutiny.
‘The world used to champion tariff reductions to promote free trade, but now we’re seeing a resurgence of trade barriers. Certain goods are subject to stricter inspections,’ he said, adding that free trade is no longer as open or universal as before; the world has entered an era of economic bloc alignment.
He acknowledged that Thailand’s economy is facing a downturn, and immediate action is necessary to revive growth and ensure sustainability.
‘We need to grow the economy first, but sustainably. We must also tackle inequality. That’s why the economic team has adopted a unified framework for communication and policy.’
Mr Ekniti, also a deputy prime minister, elaborated on the ‘Five Pillars’ framework, highlighting how each pillar is designed to address immediate economic pressures while laying the foundation for long-term structural resilience.
As for economic stimulus, he said that with exports surging earlier this year in anticipation of tariff hikes under the Trump administration, the focus now shifts to domestic demand, particularly through government spending.
Low-income groups will benefit through state welfare cards, ensuring that support reaches the grassroots level and stimulates broad-based consumption.
For the middle class, the co-payment scheme (Khon La Khrueng) is being used to subsidise cost-of-living expenses, enhancing disposable income and supporting consumption.
The government also aims to revitalise tourism, with a strategic emphasis on second-tier cities. Tax incentives will be introduced to encourage tourism-related activity in these areas.
As for support for SMEs, this pillar focuses on improving liquidity for small businesses, which form the backbone of the Thai economy.
The government is developing supply chain financing schemes to inject working capital into SMEs via upstream corporate partners. A new tax break policy is under review, potentially offering 1.5- to 2-times tax deductions to large firms that assist smaller partners in the supply chain.
The last pillar involves future-oriented investment seeking to drive investment in strategic future sectors, particularly focusing on reskilling the workforce for modern industries, promoting the Bio-Circular-Green (BCG) economy model and supporting modern agriculture and removing regulatory barriers in the electricity sector to prioritise clean energy.