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Thailand: Line advises on growth sectors
Healthcare, food safety, remote work, renewable energy and mobile commerce are among growing sectors Thailand can capitalise on as new opportunities in the wake of the pandemic, says Line Thailand.
“The pandemic is a big accelerator of technology consumption and behavioural change,” said Oliver Tonby, chairman of consulting firm McKinsey & Company, via a video conference as part of “Line Thailand Business 2020: Exclusive CEO Talk” on Thursday.
The outbreak is also “driving digital transformation within companies and business sectors,” he said.
Mr Tonby said 60% of Asia’s trade is expected to happen within the region in the wake of the pandemic, forcing companies to explore more supply chains in the region.
As US-Sino trade tensions are escalating, Thailand is among the Asean countries that could be considered a favoured destination for supply chains, he said.
Thailand needs to work to boost technical skills, support modern laws and taxation, and foster connections with other regional countries to boost exports.
Asia is a hotbed of innovation, with the region boasting one-third of R&D features and 65% of the world’s patents, said Mr Tonby.
Some 40% of venture capital firms in the world have been investing in Asia for the past 10 years with an emphasis on robots, automation and artificial intelligence technology.
“Thailand can create an environment for innovation development with skills in data science, system architecture as well as translation,” he said.
The country should embrace telehealth as it has a ratio of eight doctors per 1,000 people, compared with 24 doctors per 1,000 people in the US, said Mr Tonby.
He said nine out of the top 10 countries for mobile commerce adoption are in Asia, with Thailand at No.3 with 70% of the population engaged with mobile e-commerce.
Remote work, food safety, clean energy and agriculture are also interesting fields technology can play a role in, said Mr Tonby.
Three lessons can be learned from the pandemic, he said.
The first is “we need to learn to live with and embrace uncertainty,” said Mr Tonby.
The second concerns technological transition, where businesses that embark on digital transformation fare better than those who do not.
The third involves consumer behaviour changes where consumers need something more safe and innovative, he said.
Speaking at the same event, Phichet Rerkpreecha, chief executive of Line Thailand, said with the pandemic, business needs to be optimistic, but grounded in facts.
Many business sectors took a serious hit from the pandemic, including tourism and exports, said Mr Phichet.
Companies need to have digital strategies and collaborate with partners, such as startups and innovative small and medium-sized enterprises that have good digital policies, he said.
“Large enterprises can strive to grow through mergers and acquisitions in growing areas, such as e-commerce and logistics, rather than groom their business themselves,” said Mr Phichet.
Policymakers meanwhile need to build an environment that can facilitate digital business growth, he said.
“We may have to think about quality rather than quantity in sectors such as tourism. We have to focus more on long-stay travellers who spend higher than normal tourists per head,” said Mr Phichet.
Source: https://www.bangkokpost.com/business/1999147/line-advises-on-growth-sectors