Keynote speech by

H.E. Mr. Srettha Thavisin,

Prime Minister of the Kingdom of Thailand

at the 29th Nikkei Forum Future of Asia

“Asian Leadership in an Uncertain World”

Friday 24 May 2024, 09.40-10.00 hrs., Imperial Hotel Tokyo

President and Chief Executives of Nikkei (นิก-เค),

Distinguished guests,

1. Thank you Mr. Fujiwara Toyoaki (ฟูจิวาระ โทโยอากิ) for the introduction.
2. It is my pleasure to be here at the 29^th Nikkei Forum on the Future of Asia.
3. In December I was here for the Summit marking the 50^th anniversary of ASEAN - Japan, which set a clear direction for our future based on mutual trust and heart-to-heart partnership with our old friend Japan.
4. Despite today’s global shifts and challenges — geo-political and geo-economic rivalries, advancement of technology, the environment, and on-going economic recovery from COVID-19 — I see an opportunity for Asia to take a leadership role to tackle them head on.
5. Allow me to share with you my perspective on a few of these problems, and how I think Asia can work together to address them.
6. Problem number 1: Some people say Asia is the main arena for superpower rivalry. But I would rather say Asia is the equilibrium. We have always seen major powers’ attempts to maintain the right ‘balance’ in engaging with Asia. This gives us a unique position on the world stage.
7. This is especially the case for Southeast Asia where we strive to maintain ASEAN centrality and relevance, and navigate through geopolitical flashpoints to avoid further confrontations – whether it’s Myanmar, the Taiwan Strait, or the South China Sea, as well as the conflicts in Ukraine and the Middle East.
8. Despite these challenging landscapes, our agenda should be clear: to bring long-term prosperity to our peoples and maintain peace and stability.
9. While ASEAN does not take sides, it does not mean we do not take a stand. We remain vigilant and steadfast to safeguard our interests, as well as stand firm on our principles.
10. For example, on Myanmar, we are working together relentlessly towards a peaceful, stable, and unified Myanmar. We want to see Myanmar back on the path of democracy.
11. Thailand is working to help support peace dialogue among parties in Myanmar. We are coordinating closely with Laos, as ASEAN Chair, and all partners involved. In the meantime, Thailand is now scaling up humanitarian assistance for the Myanmar people along our border.
12. This is a solid example of how Asia can take the lead through collective efforts and unified voice.
13. Because together, we speak loudest.
14. Problem number 2: They say multilateralism and globalization are on the decline. Superpowers rival against each other. There is no ‘we’ — only ‘me’ and ‘them’.
15. Yet, I see a silver lining. An opportunity to revive group spirits.
16. If we look past these fragmentations, this could be an opportunity for us to strengthen regional and cross-regional cooperation that is open and outward-looking. This should be our new common agenda.
17. As global relationships deteriorate, Asian countries should work together even more closely.
18. Problem number 3: The world is fast evolving and going through massive technological changes — Internet of Things, AI, financial technology, quantum computing, blockchain, you name it. The so-called digitalization of life as we know it.
19. These are the changes that transcend borders and bring about many profound challenges.
20. The future is already here.
21. There are a lot of excitements and promises about what the future may bring. But we must also be mindful of the impacts, whether beneficial or damaging. We must prepare our people for what’s coming.
22. To this end, we must strike a balance between long-term initiatives, including formal education and up-skilling to promote digital literacy, and careful implementation of legal and regulatory frameworks that promote innovation.

Ladies and gentlemen,

23. If one thing is certain, it is the fact that change is inevitable.
24. Therefore, I think the important question is this: how do we adapt to uncertainties? How do we withstand future disruptions? If we fall, how do we come back stronger and better than before?
25. The answer is building resilience within Asia.
26. This is where Asia can make a difference. In this ‘Asian Century’, we in Asia must remain together and continue to lead.
27. Why? Because Asia is the part and parcel of the global engine. Without Asia, the jigsaw is never complete.
28. Because Asia is the factory and kitchen of the world, deeply rooted in the global supply chains.
29. Because Asia is the economic powerhouse, being home to over 4.78 billion people, which is more than half of the world’s population.
30. Why must Asia take the lead? Well, why not?

Ladies and gentlemen,

31. For us, there are 3 things at hand that urgently require Asia’s collective efforts:
32. First and foremost, trade and investment.
33. Because economic progress is the very foundation of peace and stability. The truth is simple: economic growth enables people to thrive.
34. For the past decade, we have been negatively impacted by the spillover effects of the global geo-political conflicts. Today we continue to see deepening fragmentation, leading to the re-shoring, near-shoring, and ‘friend-shoring’ phenomena.
35. Because of this, global economic growth has stifled, and wealth is concentrated among smaller groups of countries instead. Asia must then adapt.
36. Asia was one of the hardest-hit by the pandemic, especially when all our supply chains collapsed. However, we were also one of the fastest to recover.
37. Asia rose to the challenge. Gradually and steadily, we have been expanding and gaining more influence and strategic importance.
38. We in Asia should continue to support the multilateral trading system, with the WTO at its core. We must continue to deliver a free, open, fair, non-discriminatory, transparent, and inclusive trade and investment environment.
39. Today we have come far. This was possible through regional collective action such as RCEP (อาร์-เซป), which was built upon the existing ASEAN+1 FTAs with partners including Japan, making it the largest FTA to date in terms of combined GDP, accounting for one-third of the world’s population.
40. Still, we can achieve much more. I believe that FTA negotiations should be a top priority. We must utilize FTAs to boost trade and investment and diversify markets. Currently, Thailand has signed 15 FTAs with 19 countries, with 7 more under way, EU and EFTA (เอฟ-ตา) included.
41. On this note, Thailand is proud of its decision to submit the letter of intent to join the OECD. I wish to personally thank Japan for supporting and leading the charge to bring OECD closer to Southeast Asia.
42. Thailand is already working to improve our investment environment and upgrade our standards. We are determined to build the business eco-system and enhance our global competitiveness for investment.
43. Second issue is the green transition.
44. Climate change is real. Climate action is no longer an option, it is the only chance of survival. This requires a global collective effort. It is the responsibility of every one of us. Being green starts at home.
45. In our effort to cut emissions, Thailand’s first-ever Climate Change Act will come into force soon. We have also set up a new Department of Climate Change to oversee Thailand’s overall climate action.
46. Thailand has been making good progress, especially in the energy and transportation sectors. We look forward to welcoming more investments in the areas of green hydrogen and CCUS technology, as well as expanding our carbon credit markets.
47. In line with the Ignite Thailand vision to become a Future Mobility Hub, we are creating a comprehensive EV supply chain industry. Our initial goal is to increase the production of EVs to 30% by 2030.
48. However, it is my government’s objective to support Japanese producers of ICE vehicles in this transition period. We have long valued the indispensable role of Japan and Japanese investors in building a solid foundation for our automobile industry.
49. Moving to clean energy is not easy. Again, this requires collective efforts. ASEAN is building an ASEAN Power Grid, which will help increase the share of renewable energy in the region. Thailand alone plans to increase the share of our renewable energy in power production to at least 50% by 2040.
50. To build an entire eco-system and infrastructure for clean energy, private sector and financial institutions are indispensable players. We should provide both tax and non-tax incentives for them. In my view, sustainable and green finance can be the main driving force.
51. On Thailand’s part, we have been issuing green bonds since 2021. Additional series of sustainability-linked bonds will be rolled out this year, amounting to about 1 billion USD. We welcome all partners to help drive our region towards a more sustainable future.
52. Third is digitalization.
53. I envision a world that is digitally connected. I want to create not only a digital economy, but a full-fledged digital society, where digitalization becomes a part of people’s everyday lives.
54. For Thailand, our digitally active citizens already paved the way for this change. It was accelerated by COVID-19 which made fast payment systems via QR-code, food delivery applications, and online shopping become a necessity.
55. Today, our cross-border payment system is already linked with many ASEAN countries, as well as Japan, which is one of our most popular tourist destinations of all time.
56. Furthermore, earlier this month, Microsoft CEO announced the plan to invest in our vision for a digital-first and AI-powered future, through its new regional datacenter in Thailand, along with other projects to up-skill the young digital talents and tech workforce of the whole ASEAN.
57. For us, this is a ground-breaking development. It is fundamental to our growing high-tech and cloud-based digital industries. This will enable Thailand to take that crucial leap to fully capture our massive potential in the digital economy.
58. On top of that, ASEAN is currently negotiating the Digital Economy Framework Agreement (DEFA). Once completed, it will become the world’s first regional agreement of its kind, projected to double the value of the region’s digital economy to 2 trillion USD by 2030.

Ladies and gentlemen,

59. I believe these 3 things will bring us closer to the world we aspire to see. Each of us has a shared responsibility, and no one can achieve this alone.
60. Platforms like the Nikkei Forum should continue to bring the public and private sectors together. We share thoughts. We share best practices. We share lessons learned. Because all of you in the business community are truly behind the Rise of Asia.
61. For these reasons, Asia must maintain our collective leadership to re-ignite growth and restore trust in the global system.
62. Because that is our true strength. This is the Asian Century.
63. But let’s not take things for granted. It’s now time to walk the talk and put things into action.
64. Finally, please rest assured, no matter what the future may bring, Thailand will always stand beside Japan, our true and trusted friend.
65. Thank you.

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