Thailand
Cyber resilience and sustainability for growth in Thailand: AIBP Thailand Advisory Board

Cyber resilience and sustainability for growth in Thailand: AIBP Thailand Advisory Board

Following the first physical advisory board meeting in over 2 years, AIBP held the second of its Advisory Board Meetings with our stakeholders in Thailand. The board members weighed in on their views around innovation in their local ecosystem and some of the challenges they faced.

Key takeaways include: 

  • Mitigating Cybersecurity Threats
  • Incorporating Sustainability Goals into Businesses through Technology
  • Justifying the ROI of Technological Investments

Mitigating Cyber Security Threats

According to the ASEAN Enterprise Innovation Survey 2021/22, over 86% of enterprises in Thailand have embarked on their digital transformation journey, and cybersecurity resilience has become more pertinent than ever before. Despite understanding the threats of potential data breaches and other cyber attacks, enterprises also require adequate justification with regards to the return on investments of their cybersecurity investments.

The Thai government passed laws in 2019 that gives authorities the ability to track, monitor and access digital data in a bid to subdue potential cyber threats. The National Cyber Security Agency (NCSA) was set up to develop guidelines for the protection of critical national infrastructure, thereby assisting enterprises in their cyber resiliency efforts.

Cybersecurity investments may be justified as a form of insurance, as the cost to an organisation for breaches, according to Thailand’s PDPA regulations, stands at up to THB 5 million (USD 145,645). Thai enterprises may embrace the benefits of evolving technology, whilst also preventing the negative impacts that cyber attacks can bring about to their finances and reputation. 

Incorporating Sustainability Goals into Businesses through Technology

Thailand hopes to achieve its Sustainable Development Goals(SDGs) through its overarching Sufficiency Economy Philosophy (SEP) which advocates the principles of moderation, reasonableness and prudence in its economic activities. Environmental protection is also one of four main objectives of the Thai government’s Thailand 4.0 model. Specifically, they aim to reduce 40% of  emissions by 2030, achieve carbon neutrality by 2050 and attain net zero emissions by 2065, in a bid to create a sustainable and low carbon economy.

However, Small and Medium sized enterprises(SMEs), in particular, face challenges in achieving these sustainability goals. The cost of implementing and maintaining the relevant technologies presents an obstacle to these firms as there is a need to consider margins. Furthermore, organisations may lack personnel with the technical knowledge and talent to support sustainability strategies.

Despite the lack of mandatory environmental targets for enterprises, the Thai government is aggressively supporting enterprises in their efforts through a range of incentives. They have invested heavily into renewable and alternative energy in order to build capacity of sustainable energy sources, and provided monetary benefits, such as subsidies and tax incentives, to enterprises that engage in environmentally friendly activities, such as the production of electric cars. The government further enhances the potential for a firm’s climate change mitigation strategies by raising awareness and providing an informational ecosystem on sustainability to stakeholders. Through a collaborative partnership between enterprises and the government, Thailand appears to be on the right track to achieving a net-zero economy. 

Thailand’s Digital Economy Strategy 

In line with Thailand’s 4.0 economic model, in which they aim to be the digital hub of Southeast Asia within 10 years, 67% of Firms in Thailand have increased their investment spending on digital technologies in the past year. Under the plan, the government formed the Eastern Economic Corridor (EEC), encouraged investment in technologies like 5G through tax exemptions and subsidies, and created the Digital Economy Promotion Agency (DEPA) to promote and facilitate digitalisation.

Focus of Current Investment Promotion Policies

Source: Thailand Board of Investment(BOI)

In 2022, the Thailand Board of Investment (BOI) approved spending of THB 2.5 billion to further develop the country’s digital capabilities, in areas such as fintech, healthtech, government tech, innovation tech, agriculture tech, digital and manpower. Moreover, IT spending is expected to grow 6.4% to THB 871 billion in 2022, higher than the global growth rate of 5.5%. Overall, Thailand’s digital economy is stated to likely reach USD 53 billion in value by 2025, according to Google, Temasek and Brain & Company’s e-Conomy SEA 2020 report. Thailand continues to foster innovation, productivity and efficiency on a nationwide scale, allowing enterprises to achieve sustainable development and growth.

Partnerships for Growth and Innovation

Despite the multi-faceted collaboration between the government and local enterprises in facilitating the transition to a digital economy, some challenges still remain.

Adoption and implementation of digitalisation by local organisations are key hurdles that may affect the efficacy of policies and prevent a large-scale realisation of gains. To mitigate these issues, cooperation with other enterprises within the local ecosystem is essential.

In providing a platform for a community of stakeholders to exchange mutually beneficial information regarding technology and innovation, we have observed how discussions on the benefits of digital transformation, both financial and non-financial, have been accomplished through implementation projects.

AIBP is excited to have the opportunity to meet up with our stakeholders in Thailand. We look forward to more in person discussions over the next few months and would be welcoming our ASEAN advisory board to Singapore for the AIBP Innovation Retreat on 4 – 5 July.

AIBP Conference & Exhibition Thailand will be held in Bangkok from 29 – 30 November. If you wish to join us, you may register interest here.

Interested in being part of our ecosystem? Email us at [email protected] or sign up on our website for more content.

AIBP

17 June 2022