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Together, the EEC and Thailand 4.0 aspire to fundamentally
transform the economy, and create the basis for sustained growth and
development in a changing global environment. These are very ambitious
plans, and face challenges in implementation:

Investment needs are enormous. The total estimated
investment needs for the first 5 years of the EEC program
are around Baht 1.5 trillion, or US$43 billion; much of it
expected to be provided by the private sector, both domestic
and foreign. However, this is against a backdrop where
investment in Thailand, as in other Asian Crisis (1997)
economies such as Malaysia and Indonesia, has lagged
significantly since the Asian Crisis.

Educational and skill needs are extensive. The strategy
requires reforming an education system that in the past has
lagged in producing needed scientists, engineers, and
technically trained workers and managers. More generally, the
system has been weak in the quality of basic science and
mathematics education it provides, as measured in studies
such as OECD’s Programme for International Student
Assessment (PISA). It also means finding effective ways for
the private sector to help drive training and inform education,
as firms face gaps in the skills they need in a more technology-
enabled workplace.

Innovation capacity requires significant investment. Thailand’s
total investment in R&D as share of GDP has averaged in
recent years at best around 0.5% of GDP. This is well below
countries such as South Korea’s world-leading over 4% of
GDP; Singapore and China, with well over 2%; and Malaysia
with well over 1% of GDP. The Thai private sector’s
investment in R&D has been particularly low, as compared
with such economies. Therefore creating effective policies,
programs, and institutions is essential for mobilizing

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