Thailand’s Minister of Industry, Ekanat Promphan, has declared a major strategic shift, positioning startups as the core engine for driving the nation’s new economy through an era of global uncertainty. Speaking at the influential “Japan-ASEAN Startup Business” event, the Minister announced the government’s transformation into a “facilitator” to unlock private sector potential through significant regulatory reforms and new Board of Investment (BOI) incentives, urging collaboration between Japan, ASEAN, and the financial sector to build a robust ecosystem for innovation, clean energy, and ESG-focused ventures.
Bangkok, Thailand – At the “Japan-ASEAN Startup Business Matching Fair 2025” forum, a platform buzzing with forward-looking energy, Thailand’s Minister of Industry, Ekanat Promphan, delivered a landmark speech outlining a new, dynamic vision for the nation’s industrial future. In a clear message to domestic and international stakeholders, he affirmed that in a world where “the only certainty is uncertainty,” Thailand is poised to not merely react, but to “embrace and drive change,” championing its burgeoning startup community as the heart of this transformation.
Minister Promphan began by acknowledging the complex global landscape, fraught with volatility and challenges on both national and international fronts. However, he framed this instability not as a threat, but as a profound opportunity. This perspective, he argued, is the very essence of the “true entrepreneurial spirit”—the ability to perceive and seize new possibilities amidst disruption.
Government’s Paradigm Shift: From Regulator to ‘Facilitator’
A cornerstone of the Minister’s address, aimed at bolstering business confidence, was the announcement of the government’s fundamental role change. The state is moving decisively from being a traditional “regulator” to a proactive “facilitator.” “My duty is not to enforce regulations, but to facilitate and help navigate this change,” Mr. Ekanat stated unequivocally.
This strategic pivot is being manifested through concrete actions. The government is actively reviewing and streamlining regulations to enhance the Ease of Doing Business, aiming to create a system driven not by bureaucracy, but by “transparency, integrity, and operational convenience” for the private sector.
On the investment front, the Board of Investment (BOI) is undergoing a significant overhaul of its promotional measures. The goal is to sharpen its incentives to attract high-value investments in future-focused industries. This includes targeting businesses driven by deep technology and innovation, fostering the development of a high-skilled talent pool, and actively attracting exceptional individuals into the Thai economic ecosystem.
Decoding the “Kitakyushu Model”: A Blueprint for ESG-led Sustainable Growth
A particularly insightful part of the speech was the reference to the success story of Kitakyushu, Japan. Drawing from his direct discussions with the city’s mayor, Minister Promphan presented Kitakyushu as a powerful case study in industrial revitalization. The city succeeded not only in rebuilding its economy but in achieving a masterful “balance” between industrial expansion, value creation through technology, and the preservation of community and social integrity. This, he stressed, is the practical application of the ESG (Environmental, Social, and Governance) principles that are now a global imperative.
From this model, Minister Promphan distilled three critical success factors that Thailand aims to adopt:
- Global Outreach and Collaboration: The Japan-ASEAN Startup Business event itself was cited as a perfect example of this pillar in action. Such platforms are not merely for networking, but for the vital exchange of knowledge, innovation, technology, and success stories that foster collective growth.
- Public Participation: Building systemic trust and actively engaging citizens and society are crucial for sustainable change. The government is committed to restoring this confidence to ensure a collaborative effort from all sectors.
- Enterprise at the Core: Minister Promphan emphatically stated that the first two pillars are entirely dependent on the most fundamental element: “Enterprise.” It is the business community, and specifically startups, that functions as the primary driver of this new industrial economy.
Startups: The Vanguard of a New Ecosystem and Vast Opportunities
“These startups, these enterprises, are the heart of driving this new industrial economy, of driving the change to develop a new industrial economic system, and of creating this new ecosystem,” the Minister declared.
He painted a picture of immense opportunity for startups and new entrepreneurs to become pivotal players in Thailand’s evolving economic landscape, particularly across four key domains:
- The Clean Energy Revolution: Aligning with national and global goals for decarbonization, this opens the door for startups in renewable energy technologies, smart grid management, EV infrastructure, and circular economy solutions.
- Digital Transformation and AI: The application of digital technologies and Artificial Intelligence (AI) is set to revolutionize Thailand’s traditional industrial strengths, including manufacturing, agriculture (AgriTech), and healthcare services (HealthTech), creating new value chains and boosting efficiency.
- Leveraging Thailand’s Intrinsic Assets: The strategy involves building upon the nation’s unique strengths, transforming sectors like tourism into high-value wellness and health tourism, and elevating the food and agriculture industries through FoodTech and advanced AgriTech innovations that can compete globally.
- ESG-Driven Ventures: There is a rapidly growing market for solutions that help industries achieve their sustainability targets. Startups that provide technologies and services to balance industrial growth with environmental and social responsibility are in a prime position for success.
Capital as the Catalyst and the Government’s “Kick-start” Pledge
Minister Promphan realistically acknowledged that vision and opportunity cannot materialize without a critical ingredient: “funding and access to capital.” In a significant gesture, he extended his gratitude to MUFG Bank for its role in organizing the event and, more broadly, for helping to bridge the gap between startups and financial resources. This highlights the indispensable role of financial institutions within the ecosystem.
“Of course, startups need a beginning, an initial push or a ‘kick-start’,” he remarked. “It is therefore critically important that banks and the government work together to ignite this spark and help these startups get off the ground.”
The speech served as a powerful “wake-up call” for all sectors of the Thai economy. It was a declaration of the government’s readiness to champion profound change, with the ultimate aim of building a new economy that is resilient, sustainable, and globally competitive. The Minister’s closing sentiment, “This is the best of times,” was not mere rhetoric, but a signal that the foundational elements are in place. The only remaining step is “to take action” and for all stakeholders to collaborate in realizing this shared success.
#ThailandEconomy #Startups #BOI #ForeignInvestment #ESG #CleanEnergy #DigitalTransformation #AI #EkanatPromphan #JapanASEAN #Innovation
