25-9-2023 (BANGKOK) Prime Minister Srettha Thavisin revealed on Sunday that Thailand is set to receive a minimum of $5 billion in investments from tech giants Tesla, Google, and Microsoft in the coming years. The announcement was made in Bangkok following Srettha’s participation in the 78th session of the United Nations General Assembly in New York.
During the summit, Srettha engaged in discussions with top executives from leading companies, urging them to invest in the Kingdom of Thailand. While speaking to reporters upon his arrival at Suvarnabhumi airport, Srettha disclosed that Tesla is considering the establishment of an electric vehicle (EV) manufacturing facility, while Microsoft and Google are exploring the possibility of setting up data centres. However, specific details regarding the allocation of the $5 billion investment among the three companies were not provided.
Requests for comments from Tesla, Google, and Microsoft have yet to receive a response.
The Thai Prime Minister is actively seeking foreign investments to revitalize the country’s sluggish economy, which is projected to grow by a mere 2.8% this year, falling below previous estimates due to weakened exports.
During his visit to the United States, Srettha had a conversation with Tesla CEO Elon Musk, focusing on the potential of the EV sector. Thailand, known as Asia’s fourth-largest automobile assembly hub, has been offering incentives to attract EV and battery manufacturers to establish production facilities within the country. Simultaneously, tax cuts for local EV buyers have been implemented in an effort to position Thailand as a leading market for electric vehicles in the region.
Srettha also announced his plans to attend the Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting scheduled for November in San Francisco. Accompanied by Thai business figures, the Prime Minister intends to meet with executives from other global companies to discuss investment opportunities in both the United States and Thailand.
Recognizing the need for financial support if foreign companies wish to establish branches in Thailand, Srettha emphasized the importance of having a knowledgeable liaison well-versed in financial affairs to facilitate international investors.
Furthermore, discussions were held with representatives from the New York Stock Exchange (NYSE) regarding the possibility of publicly listing Thai companies in the United States. Srettha expressed the hope that at least one Thai company would be listed on the NYSE by the end of this year.
When asked about potential obstacles to foreign investment, Srettha stated that no specific laws posed hurdles. However, he acknowledged that some companies had concerns about investing in Thailand due to limited business relationships in recent years. Srettha emphasized the existence of standard business rules and suggested the need to review and refine them if necessary.
While Srettha’s announcement generated optimistic sentiments regarding the investment pledges, Tawisant Lonanurak, a former secretary-general of the Thai Chamber of Commerce’s northeastern chapter, cautioned that major foreign companies thoroughly evaluate multiple factors before deciding to invest abroad. Factors such as political stability, taxes, and the rule of law are crucial considerations for investors.
Tawisant also stressed the government’s prioritization of negotiating additional free trade agreements with trading partners worldwide to prevent the diversion of investments elsewhere. He emphasized that without such agreements, investors may opt to seek opportunities in different countries.
