Bangkok: “Pichai”, Minister of Finance, anticipates that the trade war will become more severe following the US presidential election. Thailand should adjust its investment structure to support this shift, with a focus on the exchange rate due to changes in export patterns. Despite many countries managing their currencies, the Thai government will not intervene.

According to Thai News Agency, Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, stated that regardless of whether Donald Trump or Kamala Harris wins the US presidential election on November 5, the trade war between the US and China will intensify. Therefore, he emphasized the need for Thailand to modify its investment framework to enhance local content and ownership, thereby reducing trade barriers. He noted that the US, traditionally dominant, now faces competition from other powers, requiring policy adjustments.

Amidst this competitive landscape, Thailand stands to gain, as foreign investors increasingly relocate their bases
to Thailand, seeking Board of Investment (BOI) applications. Pichai stressed the importance of increasing local content and ownership in production to ensure that products are genuinely conceived, produced, and exported by Thailand. He urged the country to innovate independently rather than relying on external models.

Regarding the baht’s exchange rate, Pichai highlighted two factors: the need for the baht to weaken less than competitors and the global impact of a strengthening dollar. While the exchange rate fluctuates, he urged a long-term perspective rather than a short-term focus. He emphasized the growing importance of the exchange rate due to evolving export models, noting that although many countries manage currency issues, Thailand will refrain from intervention.

Pichai also discussed economic stimulus measures, underscoring the consensus on the need for both short-term and long-term initiatives. Medium and long-term measures involve large-scale projects to boost new government and private sector in
vestments. Immediate implementation of these projects, particularly in travel and logistics, is crucial to enhance the private sector’s competitiveness. He stressed the importance of meaningful economic stimulation to strengthen the domestic economy and support sustained growth. Current discussions are focused on short-term measures, with adjustments based on the prevailing situation.