We take a look at what the government economic model entails, highlighting the different ways it aims to draw overseas talent as well as investors:
The Initiative explained
Put simply, the Thailand 4.0 promises to transform the country from past economic development models. Past initiatives placed more emphasis on agriculture, namely Thailand 1.0 (agriculture) Thailand 2.0 (light industry), and Thailand 3.0 (advanced/heavy industry).
Thailand 4.0 consists predominantly of four major objectives:
- To obtain economic prosperity by creating a value-based economy driven by innovation, creativity and technology
- To maintain social wellbeing by creating a society that is all-encompassing and inclusive of all people who make up the society
- To raise human values by increasing citizens’ competency levels
- To protect the environment that will translate to relative immunity from climate change
One of the main aims of the nation in establishing the new economic model is to avoid the middle-income trap. This is where a country’s growth slows after achieving certain levels of income.
Thailand’s Smart Visa
The Thai government is fully aware that one of the main ways of attracting talent from overseas lies in making the migration process seamless.
To help the country along in terms of ease of doing business, Thailand has introduced a new visa category. This new visa applies to expatriates working or investing in technology-based production activities and services across applicable industries.
The four broad categories of applicants include talents in science and technology, investors, executives and entrepreneurs.
The visa promotes knowledge transfer and skills development, allowing holders to stay in the country for four years without having to apply for re-entry permission. Their immediate family members will also enjoy the same benefits.
Effects on economy
Thailand 4.0 will see positive growth across several industries, boosting the country’s overall economy. Some of the positive effects of the model include an increase in already astounding tourist traffic figures, an open business environment and strengthening of overall infrastructure.
Governmental infrastructure plans will also entail a multitude of employment opportunities for both locals and expatriates. The country’s authorities have already invested heavily in plans to make Thailand an economic hub. By leveraging its advantageous region to build highways and dual-track train lines, the plans will improve transportation connectivity to the ASEAN region.
Thailand 4.0 will ensure that it remains as a viable contender for economic hub status in the region. With the strategic cooperation between the country as well as overseas talent, investors and expatriates will be provided with an enticing host of value propositions to look forward to.