(CTN News) – Food security, energy security, and human security are the three main areas for which Thailand and Saudi Arabia can leverage each other’s economies’ complementary skills and synergies, as well as the alignment of their policies with Ignite Thailand and Saudi Vision 2030. According to Thai Foreign Minister Maris Sangiampongsa, these areas go beyond bilateral cooperation to regional and global collaboration.
In an interview with Asharq Al-Awsat, Sangiampongsa also mentioned green hydrogen, small modular reactors (SMRs), renewable energy, and cooperation in the automotive sector—particularly about electric vehicles (EVs)—as possible areas of cooperation that both nations could investigate further.
The interview’s whole text can be seen here.
1. What were your primary goals when you travelled to Saudi Arabia?
First and foremost, I travelled to Saudi Arabia at the invitation of the Secretary General of the Thailand Board of Investment (BOI) to oversee the BOI’s office in Riyadh’s inaugural ceremony. Notably, it is the first office of Overseas Investment Economics in the Middle East, serving a total of 13 Middle Eastern nations. This is the BOI’s seventeenth overseas office. The initiative, which aims to realise and fulfil the numerous trade and investment opportunities that exist between our two countries by attracting investment in target industries into Thailand and supporting and facilitating Thai entrepreneurs interested in investing in the Middle East, reflects the importance that Thailand attaches to Saudi Arabia.
Secondly, I was also the host of the second “Thai-SSaudi Investment Forum” opening ceremony with His Excellency Mr. Khalid bin Abdulaziz Al-Falih, the Kingdom of Saudi Arabia’s Minister of Investment. Eleven memoranda of understanding (MOUs) were signed between Thai and Saudi Arabian businesses during the Forum, which also allowed high-ranking officials and executives from the Thai Chamber of Commerce, the Federation of Thai Industries, the Thai government, and the Thai private sector to successfully do business with their Saudi counterparts.
Additionally, I had very fruitful meetings with high-ranking Saudi Arabian representatives, including His Excellency Mr. Khalid bin Abdulaziz Al-Falih, the Kingdom of Saudi Arabia’s Minister of Investment; His Excellency Mr. Fahd bin Abdurrahman bin Dashes Al-Jalajel, the Kingdom of Saudi Arabia’s Minister of Health; and His Excellency Eng. Abdulrahman bin Abdulmohsen Al-Fadhli, the Kingdom of Saudi Arabia’s Minister of Environment, Water, and Agriculture. These meetings were held to discuss ways to further strengthen bilateral ties between our two nations, particularly in the areas of agriculture, food processing, public health, and tourism. I also had meetings with top Saudi private sector executives from companies including SALIC, Ceer Motors, BUPA Arabia, and Al-Baik, to reiterate our commitment to increasing trade and investment.
2. Why is the Second “Thai-Saudi Investment Forum” important?
This is the second forum of its kind; the first was held in May 2022 in Riyadh, just after our diplomatic ties were fully normalised. This indicates a feeling of continuity and a great desire on both sides to further develop their collaboration, particularly in commerce and investment. Furthermore, we are confident that this event will be successful and remembered as a significant milestone in the growth of economic and investment cooperation between Thailand and Saudi Arabia due to the quantity and calibre of participants, who represent the business sectors of both nations.
This forum further expands on the triumphant Thailand International Mega Fair of the previous year, spearheaded by the Thai Chamber of Commerce, which included over 30 Thai business sectors exhibiting over 1,000 goods from 200 companies, signifying a noteworthy accomplishment in endorsing Thailand in Saudi Arabia. These efforts and events demonstrate that our two nations still have unrealized potential and prospects. To achieve genuine and practical outcomes, the two sides must cooperate even more closely to realise these potentials. Thus, we are happy to announce the International Mega Fair 2024-Riyadh, which is set for November 2024. The event will highlight Thailand’s innovative and diverse industries, ranging from defence technology to construction materials, and will centre on promoting trade in a variety of high-potential sectors.
3. Which areas of collaboration between the two nations are the most crucial?
Since the diplomatic relations between Thailand and Saudi Arabia were normalised in 2022, the two countries’ ties have grown quickly. More than ten high-level bilateral visits have taken place between the two sides since then, and different methods have been used to promote collaboration.
Our ties will advance along five broad axes of collaboration, including commerce and investment, political and consular cooperation, socio-cultural cooperation, and military and security cooperation. The Saudi-Thai Coordination Council (STCC) will play a significant role in this process.
Regarding the economy, it’s important to remember that Thailand’s bilateral commerce with Saudi Arabia was valued at USD 8.8 billion last year, or around 22% of all trade with the Middle East. The recent bilateral Memorandum of Understanding (MoU) between Thailand’s Ministry of Commerce and the General Authority of Foreign Trade of Saudi Arabia, along with our commitment to investigating the possibility of a regional free trade agreement (FTA) with the Gulf Cooperation Council (GCC), will undoubtedly contribute to these impressive numbers even more.
During my visit, I suggested that Thailand and Saudi Arabia concentrate their cooperation on three main areas: food security, energy security, and human security. In these areas, our two nations can leverage our respective economies’ strengths and complementarities, as well as the alignment between the Saudi Vision 2030 and Ignite Thailand policies.
We have already identified several food security-related investment projects involving the Saudi Agricultural and Livestock Investment Company (SALIC) and several associated Thai businesses in the areas of food production and processing. Additionally, as the Saudi government has just approved the export of live cattle and other animals from Thailand to Saudi Arabia, we want to start doing so. Given that Thailand is now a significant producer and exporter of halal food, we think there is a lot of promise in the fields of agricultural and processed foods.
We should look at possible areas of cooperation for energy security, such as renewable energy, green hydrogen, Small Modular Reactors (SMRs), and the automotive sector, particularly with regard to electric vehicles (EVs).
In the field of human security, we may foster more interpersonal relationships via collaboration in biotechnology, medicine, health and wellness, tourism, and networking in order to foster understanding and soft power. In fact, one of the main areas for deeper bilateral collaboration is medical tourism, and Thailand’s private hospitals currently host a sizable number of visitors from across the globe, including Saudi Arabia and other Middle Eastern nations. Thailand’s considerable experience in this field allows us to contribute to Saudi Arabia’s efforts to promote the wellness business.
We have more in common than just bilateral collaboration. Thailand’s strength as a worldwide bridge builder and facilitator may be used by Saudi Arabia. We are prepared to link the Asia Cooperation Dialogue (ACD) with other regional organisations like the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which would encompass a population of 4 billion people. This could be a significant collaboration that would be advantageous for everyone, as Thailand will take on the chairmanship of the ACD in 2025. Thailand and Saudi Arabia can function as each other’s twin centres, as is evident from this. Saudi Arabia may think about using Thailand as an investment base to expand its business into the ASEAN region and take advantage of the world’s largest free trade area, the Regional Comprehensive Economic Partnership Agreement. Thai companies can benefit from collaboration with Saudi Arabia, the Middle East’s economic centre, to expand their market to the entire Middle East region. It is also crucial to remember that, although the public sector acts as an enabler, the private sector are the actual participant in all of these initiatives, so we must actively promote their involvement.
It is encouraging to see that Thailand and Saudi Arabia are working together to achieve our potential, as evidenced by my conversations with their ministers of investment, health, environment, water, and agriculture in the Kingdom of Saudi Arabia.
4. How big is the Thai economy and how fast is it predicted to develop in 2024?
In the centre of ASEAN is Thailand. As the second-biggest economy in Southeast Asia, we serve as a bridge between more developed nations like China and India. Through 15 Free Trade Agreements (FTA) with 19 countries and several more in the works, Thailand aggressively promotes trade ties expansion. Thailand is a hub for multinational companies looking to open a regional headquarters in the Asian region because of its advantageous location, strong business environment, reliable infrastructure, easy access to other regions, affordable cost of doing business, highly qualified labour pool, and alluring investment incentives. As per the “Ignite Thailand” vision, the Prime Minister of Thailand, H.E. Mr. Srettha Thavisin, has set a high priority to establish Thailand as the centre of eight important sectors, including agricultural and food, medical and wellness, tourism, digital economy, finance, logistics, and aviation. The Prime Minister also emphasises how important it is to make doing business in Thailand easier. Thailand hopes to become the centre of wealth and growth via the “Ignite Thailand” vision, not only for the sake of the nation but also for the whole region.
For Thailand, tourism has been and still is a key factor in economic development. Thailand has authorised a 60-day visa exemption program, enabling visitors from 93 countries—including the Kingdom of Saudi Arabia—to enter the nation for short-term business and leisure visits to further enhance the tourist industry.
5. Is a new collaborative project scheduled to be introduced soon?
H.E. The Thai prime minister, Mr. Srettha Thavisin, instructed the Board of Investment to establish an office in Riyadh as soon as feasible during his recent official visit to Saudi Arabia. This illustrates how much weight the Thai government places on deepening its collaboration with Saudi Arabia across the board, particularly in trade and investment.
I am excited to work with His Excellency to co-chair the first STCC conference in Bangkok later this year.
Elevation Kingdom of Saudi Arabia’s Minister of Foreign Affairs, Prince Faisal bin Farhan Al Saud. The STCC is a significant structure that consists of five pillars of cooperation that span every facet of bilateral ties, from commerce and economic and investment to security and military, from political and consular to cultural and tourist. I have no doubt that the summit will succeed in advancing collaboration, producing real outcomes, and raising the bar for Saudi-Thai cooperation to new heights. It will also serve as a reflection of the two nations’ common goodwill and willingness to collaborate.
Source: English.aawsat
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