EXPLORING THAILAND
COUNTRY PROFILE (PESTLE)
Political Landscape
Thailand's political landscape isn't the most promising thing there is.
In 2022, Thailand was ranked 101th out of 180 countries in the Corruption Perception Index(CPI). Thailand scored 36. A score of 0 means highly corrupt, while a score of 100 means very clean. in comparison, singapore scored 83.
However, after a taiwanese actress spoke up about a case of exploitation that happened during her stay in thailand, police authorities and the government has been trying to cleanse the system as they know how important tourists are to thailand's income.
thailand's incoming policies include Increasing the availability of land for public use of growing crops and also reducing the prices for diesel fuel, electricity fees, and cooking gas to help aid living costs.
Unemployment Rate in Thailand increased to 1.06 percent in the second quarter of 2023 from 1.05 percent in the first quarter of 2023.
According to an article from The Straits Times, Thailand puts importance on tourism for revenue, so much so that they would approve another public holiday for a six-day break to spur tourism and personal spendings.
from the graph illustrating the disposable income statistics, we can see that over the years it has been increasing. as such we can come to the conclusion that Thailand's economic growth is improving ever so slightly, apart from in 2020, which we can attribute to the pandemic outbreak of covid-19.
Economic Landscape
(unemployment percentages from 2020 to 2023)
(disposable income statistics from 2014 - 2020
Social Landscape
Common greeting in Thailand: wai
Harmony and respect are two important aspects of Thailand's culture. Its people place a lot of importance on preserving peace and avoiding conflict with others.
Thai society believes that maintaining a calm disposition should be the norm so that everyone receives the respect they deserve.
Thai people indicate their respect through the depth of their wai. The wai is the placing of two palms together, with fingertips touching the nose, and it is the most common form of greeting in Thailand.
In terms of religion, a vast majority of the Thai population identify as Buddhist.
Based on a 2022 report by the U.S. Office of International Religious Freedom, it was reported that the Thai population was 92.5 percent Buddhist, 5.4 percent Muslim, and 1.2 percent Christian. Other groups included Hindus, Sikhs, and more.
In 2016, Thailand published a 20-year Thailand Digital Economy and Society Development Plan.
This plan consists of goals and targets divided into 4 phases, that are key to the development of Thailand's digital economy.
The final phase (Phase 4) envisions Thailand as one of the global leaders in the digital economy and a digital hub in Southeast Asia.
For example, Thailand is one of the first few countries in Southeast Asia to successfully deploy 5G technology.
As of 2022, 85% of the population has access to 5G networks and the government is expecting this percentage to grow as more people upgrade to 5G devices.
Technological Landscape
A rough overview of the timeline for the 20-year Thailand Digital Economy and Society Development Plan
Legal landscape
Parliament House of Thailand
Thailand has specific laws that address discrimination in various forms.
The Constitution of Thailand guarantees the equality of all persons and the prohibition of discrimination against any person on the grounds of birth origin, race, language, gender, age, or other status as clearly stated under Sections 4', 52, and 30³.
Discrimination in educational institutions is forbidden by the Education Act. This includes providing all students, regardless of background, with equal opportunities.
Under Section 10, all individuals shall have equal rights and opportunities to receive basic education provided by the State for the duration of at least 12 years.
The country is vulnerable to many natural and human-induced hazards: floods, tsunamis, storms, droughts, landslides, forest fires and epidemics.
Thailand has regularly suffered greatly from droughts and hydrological catastrophes, and in 2004 it was hit by one of the deadliest earthquakes and tsunamis in recorded human history.
The biggest threats to the nation are floods and droughts. Furthermore, there is a slight chance of cyclones in the country's northern regions.
Since the 1950s, the average annual temperature has risen by 0.8°C every century. Thailand has a tropical climate with seasonal monsoon winds influencing it.
Environmental landscape
Extreme Weather events in Thailand
https://www.law.cornell.edu/women-and-justice/resource/national_education_act_of_b.e._2545_%281999%29_%28as_amended_by_the_national_education_act_b.e._2545_%282002#:~:text=Act%20of%20B.E.-,2545%20(1999)%20(as%20amended%20by%20the%20National%20Education%20Act,of%20at%20least%2012%20years
https://www.ohchr.org/sites/default/files/Documents/Issues/Racism/AdHoc/5thsession/Thailand.pdf
https://climateknowledgeportal.worldbank.org/country/thailand/vulnerability
CURRENT AFFAIRS (3 ARTICLES)
Current affairs 1 - Thailand's social issues
Summary of article 1 - published by voanews ( 27 august 2023)
Thailand has been suffering from droughts due to the high temperatures and the decrease in rainfall. The weather event is called El Niño. This is causing the lands to dry up rapidly which is resulting the crops in farmlands to die. Rainfall has declined 25% nationwide too. Chaowat Siwapornchai, a meteorologist in Bangkok said that, as a long term trend, people will continue facing rising temperatures combined this year with El Niño. A report also says that there is almost a certainty that El Niño will continue until end of 2023. Moreover, the next five years will be the warmest on record. In April, the city of Tak recorded the highest ever temperature of about 45.5 degrees celsius. The scorching high temperatures made people at home to use more electricity, causing power consumption to soar to record levels. Water levels in the Lam Takhong Dam dropped to the point that a historic part of Thailand reappeared. This re-emphasizes the extreme high temperatures in Thailand, and causes persistent poverty due to the crops dying resulting in food being more expensive to buy for most people.
Analysis of article 1 :
Thailand's soaring temperatures and decline in rainfall are signs of global warming. Its very concerning as temperatures went up to 45.5°C . This shows that global warming is getting worse and something needs to be done to address and solve the issue. The high temperatures causing crops to die, resulting in farmers not earning money and are in starvation, leading to poverty of many people. Moreover using more electricity will cause more fossil fuels to be burnt contributing to global warming and worsening the environment. The death of crops will result in lesser food being produced in Thailand, which may lead to the country importing food and water. This will affect their economy as they may have national debts. Future generations will face many more problems due to this global warming issue. It is dangerous for people to be out when temperatures are soaring as the UV rays can affect them, causing diseases and falling sick easily. More people will face poverty and not get proper housing, food and clothes if poverty continues. To tackle this, the ministers from Thailand and Singapore agreed to deepen their bilateral engagement in several other areas. Such as digital economy, innovation, and sustainability.
Current affairs 2 - Thailands Economy
Summary of Article 2
Thailand's GDP expanded by 1.5% year by year in the July-September quarter, falling short of the median projection of 2.4%. The National Economic and Social Development Council (NESDC) attributes this decrease to a slowdown in the agriculture and non-agriculture sectors. Manufacturing declined by 2.8%, while goods exports fell by 3.1%. Despite an 8.1% increase in domestic spending, the industrial sector of the country fell for the second consecutive quarter due to weak external demand and decreased output. The NESDC forecasts a 2.5% increase in the Thai economy this year, lower than the 2.6% expansion forecast for 2022, while the government targets 5% growth for its four-year mandate. The NESDC forecasts a 2.5% increase in the Thai economy this year, lower than the 2.6% expansion forecast for 2022, The NESDC has proposed investment and export development as ways to expand Thailand's economy. The government's centrepiece digital wallet proposal, which would infuse 500 billion baht into the economy through 10,000 baht ($285) giveaways, has been delayed. The government's 2024 economic prediction excludes the digital wallet stimulus. A rebound in exports and tourism as the year draws to a close would benefit the government.
Analysis Of Article 2:
Thailand and Singapore have close relations across multiple sectors . These sectors include economy, defence, and people-to-people relations. Singapore and Thailand have a very close relationship as they are each other’s top 10 largest trading partners. In 2022, bilateral trade increased to $42.1 billion solidifying Singapore and Thailand as key economic partners. Singapore was the second-highest source of foreign direct investment in Thailand in the first half of 2023. This encourages Singapore and Thailand to foster greater economic integration and cooperation. Both countries are involved in the Laos-Thailand-Malaysia-Singapore Power Integration Project in which Singapore is tasked to import renewable energy from Laos through Thailand and Malaysia since 2022. This project has further strengthened ties between the two countries.
The Thai Prime Minister Mr Srettha stated that bilateral relations should be future-oriented and embrace the full potential of new economic opportunities, such as digital and green economy, and sustainability. He also has intentions to work closely with Singapore to deepen economic integration and make ASEAN more effective. On Singapore’s side, Mr Tharman has intentions to grow financial cooperation in addition to working closely in combatting cybercrimes. The leaders' commitment to a future-oriented partnership indicates a stable relation between both countries.
Current affairs 3 - Thailand's political situation
Summary of Article 3 - published by Channel News Asia (04 AUG 2023)
Thailand’s constitutional court's decision to remove the Move Forward Party (MFP) from being a possible Prime Minister candidate resulted in the delay of choosing the country’s next leader. The lead role of the country’s possible constituents of the government lies in Pheu Thai, which is part of a eight-party coalition. Pheu Thai made a decision to form a new coalition without MFP, while nominating Srettha Thavisin as a candidate for the next PM.
Concerns arose from MFP supporters with the suspicion if Pheu Thai would align with pro-military parties of the previous regime in Thailand.
Dr Hewison gave his insights to this controversial event, stating that these conflicting concerns between the two opposing party’s supporters may cause considerable unrest in the country.
MFP formed the old coalition in May 2023 but did not come victorious as their nominated candidate, Mr Pita, fell short of becoming the next Prime Minister. Mr Pita made it illegal to defame the country’s royal family, which deterred many votes and support.
The country’s delay in deciding the next government made Thai voters feel that their votes were insignificant.
Pheu Thai’s new coalition now depicts the stability of the new government as MFP stands in opposition.
Analysis of Article 3:
Thailand is Southeast Asia’s second largest economy. With the unstable process of the formation of a new government, this undermines the confidence of investors. Foreign direct investments would also be affected as investors become more cautious, considering the country’s possible political unrest. With evidence from 2017 and 2021, investors chose other countries in southeast asia to invest in, such as Singapore and Malaysia instead of Thailand.
In August 2023, Srettha Thavisin, the Prime Minister candidate of Pheu Thai, emerged victorious as the next leader of Thailand. Singapore and Thailand had a strong economic relationship historically and both countries rely much on one another as trading partners. Singapore looks forward to enhancing this beneficial relationship with the new Thai government, growing in areas of trading such as renewable energy. Srettha, being one of Thailand's biggest real estate developers, aims to court more investment for Thailand. This event benefits both Thailand and its neighbouring countries in Southeast Asia, amidst the controversial election.
PROSPECTS OF LIVING IN THAILAND
LOW COST OF LIVING
Currency exchange rate differences eg. 1SGD is equivalent to 26.27THB
Cheaper to settle down in thailand as compared to singapore
For example, 1 bedroom rented apartment per month in Thailand costs $247 vs in Singapore $2019
HIGH DEMAND FOR FOREIGN TALENT
High demand results in more job opportunities available
Only a small percentage of the population work in workforces that contribute in the economic growth
Majority of locals work in the agriculture and service industry.
THRIVING ECONOMIC
Many big companies around the world are investing in Thailand
The Thai government also aids financially for new startups.
In 2018, the government financially aided US$312 million for growing company