Thailand Secures World Bank Flood Study Funding and ADB Support for Greener Hospitals

Key summary

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced on Saturday (October 17) that Thailand has obtained World Bank funding for a study on flood and disaster protection in the Chao Phraya and Pa Sak river basins, following talks at the IMF-World Bank Annual Meetings in Bangkok. The World Bank President, Ajay Banga, expressed confidence in Thailand's plans to address infrastructure issues at their source rather than relying on annual relief spending. Additionally, agreements were signed with the Asian Development Bank (ADB) to support hospital expansion and upgrades for an ageing population, attended by Public Health Minister Pattana Promphat. Separately, a double tax agreement was signed between Bangkok and Norway, described as a gateway to European markets, while talks with Luxembourg aim to connect Thailand to Europe and develop its domestic capital market. Finance Minister Ekniti highlighted Thailand's fiscal discipline, noting the 10-year government bond yield in the US stood at just over 5% compared to just over 2% in Thailand, citing foreign investor trust. The government plans to reform spending by targeting duplication and cutting high recurrent costs, use digital tools and artificial intelligence to widen the tax base, and consider higher taxes on foreign small and medium-sized enterprises entering the Thai market unfairly. The World Bank's message on employment emphasized training workers to use AI, with a focus on practical tools like Nok Krasip, a Thai tool for small traders. IMF Managing Director Kristalina Georgieva described Thailand as one of seven Asian countries making a leap into the AI supply chain. Data centres will be regulated to ensure they benefit Thailand, do not harm the environment, and do not burden Thai people. Middle Eastern investors, including representatives from Bahrain and the Islamic Development Bank, expressed interest in moving investment to Thailand, linking with Thailand's Islamic bank to develop Islamic finance using Thailand as an ASEAN base. Thailand also showcased the Royal Pavilion, traditional performances like Muay Thai, and goods made by more than 30 communities at the event.