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Senior business leaders and policy experts are calling for Thailand to accelerate the development of a robust innovation ecosystem capable of producing rapid, tangible results to revitalise economic growth.   Speaking at a recent Thailand Science Research and Innovation (TSRI) dinner talk under the theme “Igniting Thailand’s GDP through the STI Fund”, Kris Chantanotoke, Chairman of the TSRI Board and Chief Executive of Siam Commercial Bank, emphasised that innovation should not be reduced to mere technological advancement. Rather, it must be embedded within a cohesive innovation system underpinned by clear goals, strategic collaboration and economic relevance. “Innovation is not just about technology — it’s about creating an effective system that can drive economic transformation,” Mr Kris stated. He warned that Thailand’s economy remains vulnerable and is unlikely to achieve GDP growth beyond 2% annually in the foreseeable future. Strategic Reorientation Needed Mr Kris highlighted a critical misalignment in Thailand’s current research and development strategy, which focuses primarily on inputs such as publication volume and aims to raise R&D spending to 2% of GDP by 2027. In contrast, other nations like Canada are targeting economic impact directly, with plans to generate US$50 billion in value through leadership in artificial intelligence over a decade. “Research activity is booming like mushrooms, but the application of innovation to solve real-world problems remains limited,” he said. “We need to move from disbursing funds to designing systems that drive real economic results.” He advocated a sharper focus on high-potential sectors aligned with Thailand’s strengths in natural resources and skilled labour. These include medical tourism and wellness, automotive, electronics, and food and agriculture — each with its own value chain that can deliver measurable outcomes. Mr Kris also pointed to external headwinds, including trade tensions and falling tourism, which are undermining the country’s economic base. Thailand remains heavily reliant on exports to the United States, which account for 18% of total trade, while household debt levels remain elevated. In terms of innovation output, Mr Kris cited a stark contrast in patent activity: Thailand registered only 11 resident patent applications per million people in 2023, compared with 274 in Singapore, 1,079 in China, 1,839 in Japan and 3,696 in South Korea. Enhancing Investment and Talent Ecosystems Kobsak Pootrakool, Executive Vice-President of Bangkok Bank, echoed the call for structural reform, urging Thailand to leverage its geographical location, infrastructure, and integrated supply chains to attract greater investment flows into Southeast Asia. He called for the development of a new talent ecosystem geared towards emerging sectors, particularly semiconductors, while also attracting foreign experts. This should be accompanied by continued investment in physical and digital infrastructure, modernisation of supply chains, regulatory reform, and improved ease of doing business. Mr Kobsak also emphasised the importance of upgrading traditional sectors and creating new strategic industries, including fintech, agritech, and climate technology. Delivering Real-World Impact Somkiat Tangkitvanich, President of the Thailand Development Research Institute, cautioned that reliance on export-led growth is increasingly unsustainable amid global protectionism, citing shifts in U.S. trade policy. He stressed that innovation must now become the engine of economic opportunity. He urged researchers to pursue projects that are both economically and commercially viable, citing examples from Japanese universities that, while not globally top-ranked, produce impactful research such as genetic profiling for athletes, matcha green tea innovation, and marine biology breakthroughs. “To deliver impact, research must produce results in a timely manner,” Mr Somkiat said. He called for rigorous assessments of market potential, technological feasibility, and financial viability — including revenue and profitability forecasts. Sompong Klaiyananwasuang, Director of TSRI, reiterated the organisation’s commitment to serving as a national platform that bridges academic research with practical application, ensuring that innovation drives measurable, sustainable progress. -Bangkok Post

Prime Minister Narendra Modi’s prominent presence at the International Air Transport Association (IATA) annual meeting this week highlights the central role aviation is expected to play in India’s broader development strategy. Yet, as India positions itself for global prominence in air travel, the sector faces mounting operational and regulatory headwinds. Despite ongoing global volatility in the aviation sector—fueled by trade uncertainties and weakened consumer sentiment—India’s major carriers remain bullish. Airlines continue to invest aggressively in fleet expansion, building on historic aircraft orders placed over the past two years. However, industry leaders caution that India’s impressive growth trajectory could stall without critical reforms and infrastructure upgrades. Participants at the IATA gathering in Delhi raised concerns about persistent issues, including aircraft shortages, underdeveloped maintenance capabilities, and high operating costs driven by fuel taxes and airspace restrictions. Hostilities with neighbouring Pakistan have forced Indian airlines into costly detours, increasing fuel consumption and adding to passenger management burdens. Airline executives are lobbying for policy relief, seeking tax exemptions and fee waivers, though the government’s willingness to intervene remains unclear. This comes in contrast to New Delhi’s stated ambition of transforming India into a job-generating global aviation hub, akin to Dubai, which currently channels a significant portion of India’s international traffic. “In the coming years, the aviation sector is expected to be at the centre of massive transformation and innovation, and India is ready to embrace these possibilities,” Prime Minister Modi told industry leaders on Monday. Realising this vision will require extensive capital investment—potentially running into billions of dollars—to modernise airport infrastructure and streamline regulatory frameworks. India Aims High, but Performance Lags India, already the world’s third-largest aviation market by seat capacity after the United States and China, is poised for exponential growth. According to IATA, passenger traffic in India is projected to triple over the next two decades. The government has set an ambitious target to increase the number of operational airports from 157 in 2024 to 400 by 2047. “We are fast emerging as a strategic connector country … India is a natural connector of the skies and aviation as well,” said Civil Aviation Minister Ram Mohan Naidu, addressing global airline executives in New Delhi. Yet, there remains a notable gap between potential and performance. India, the world’s most populous nation with 17.8% of the global population, accounts for just 4.2% of air passengers. In 2024, India registered a record 174 million domestic and international travellers—well behind China’s 730 million. “The outlook is potentially very positive for both the Indian economy and air transport industry. However, such outcomes are not guaranteed,” IATA noted in a recent assessment. Structural limitations continue to weigh down progress. Industry stakeholders argue that existing regulations require modernisation to support sustainable growth. “Even the regulators will agree that they need to update their regulation, because there is a reason why India is not punching above its weight. In fact, it is punching very much below its weight,” said Subhas Menon, Director General of the Association of Asia Pacific Airlines. Global competitors are also calling for India to liberalise its market. Emirates President Tim Clark pointed to demand outstripping available capacity, stating, “For every seat we offer, particularly in the peaks, we’ve got three to ten people trying to get it.” Maintenance capacity is another bottleneck. India lacks sufficient domestic maintenance, repair, and overhaul (MRO) infrastructure, leaving its fleet heavily reliant on overseas facilities amid global shortages. “Airframe maintenance is a huge opportunity for India because you require labour and skills—and that’s something India is investing in,” said IATA Director General Willie Walsh. Compounding these challenges are delays in the delivery of next-generation, fuel-efficient aircraft due to global supply chain disruptions. IndiGo, India’s largest airline, has turned to aircraft leasing to support its international expansion. It has also signed strategic partnerships with Air France-KLM, Virgin Atlantic and Delta to extend its global reach through shared networks. As India accelerates its push to become a global aviation powerhouse, the path forward will demand pragmatic policy reform, infrastructure enhancement, and a regulatory ecosystem conducive to international competitiveness. -Reuters

Japan’s government is expected to reinforce efforts to encourage greater domestic ownership of Japanese Government Bonds (JGBs) as part of a broader strategy to mitigate long-term interest rate volatility caused by supply-demand imbalances, according to a draft of the nation’s annual economic policy guidelines reviewed by Reuters. The draft document, which outlines key fiscal and economic targets for the coming years, maintains Japan’s longstanding objective of achieving a primary budget surplus. The government remains committed to realising this goal “as early as possible during fiscal years 2025 to 2026.” However, it also allows for potential reassessment of the timeline in response to evolving global conditions, notably the uncertain impact of United States trade and tariff policies on Japan’s economy and public finances. The policy draft, scheduled for finalisation later in June following consultations with ruling party lawmakers, signals the government’s intent to uphold fiscal discipline in the aftermath of recent turbulence in the bond market. While shorter-dated JGB yields have remained relatively stable—buoyed by fading expectations of imminent interest rate hikes—super-long bond yields surged to record highs in May, reflecting investor anxiety amid mounting political pressure for increased fiscal expenditure. In response, the Japanese government is reportedly weighing a reduction in the issuance of super-long JGBs, a move aimed at calming market concerns over the sustainability of public finances. The draft underlines the importance of fostering a stable environment for government bond issuance, recognising the crucial role of market confidence in sustaining fiscal operations. Japan’s fiscal strategy continues to hinge on achieving a primary budget surplus—defined as balancing spending without new debt issuance or additional borrowing to cover interest payments. This objective, in place since 2018, is viewed as a benchmark for the government’s ability to fund policy initiatives through existing revenue streams rather than accruing further debt. Nonetheless, a government forecast released earlier this year indicated that the 2025 surplus target might be deferred. Prime Minister Shigeru Ishiba’s administration, currently operating without a parliamentary majority, faces mounting fiscal pressures from opposition-led spending proposals, raising concerns over potential budgetary expansion. -Reuters

SEOUL: Lee Jae-myung of the Democratic Party has been elected President of South Korea in a snap election triggered by the impeachment of former President Yoon Suk Yeol. The result, confirmed early Wednesday, showed an unassailable lead over his conservative rival, Kim Moon-soo, who subsequently conceded defeat and extended his congratulations. The outcome restores the Democratic Party to full control of South Korea’s government, with both the executive and legislative branches now under its leadership for the first time since 2022. Mr Lee, who refrained from formally declaring victory during a speech to supporters in Seoul, reiterated his administration’s priorities: economic revitalisation and national unity. “Let us move forward with hope and make a fresh start from this moment on,” he stated. “Though we may have clashed for some time, even those who did not support us are still our fellow citizens of the Republic of Korea.” Voter turnout reached a record high of 77.8%, the highest in the nation’s electoral history. South Korean media cited exit polls predicting a likely victory for Lee shortly after polling closed, a projection that materialised hours later. Kim Moon-soo, who previously served as Minister for Employment and Labour in Yoon’s Cabinet, acknowledged the result and told reporters he “humbly accepts the people’s choice”. Mr Yoon’s downfall stemmed from a controversial and abrupt declaration of martial law in December, which he claimed was necessary to preserve national security in the face of ideological threats. Initially pointing to North Korean infiltration, he later shifted his accusations towards Chinese influence. The move provoked mass protests, particularly among younger South Koreans, and culminated in a successful parliamentary impeachment. Despite holding considerable support from older and conservative voters, Mr Yoon’s refusal to step down voluntarily after impeachment is believed to have significantly swayed public sentiment in favour of Mr Lee and the Democratic Party. Mr Lee narrowly lost the 2022 presidential election to Yoon by just 247,077 votes, underscoring the political volatility that has gripped the nation in recent years. Given the extraordinary circumstances surrounding this election, no formal transition period is scheduled. Mr Lee will be inaugurated as the 21st President of South Korea on Wednesday, only hours after the final ballots were counted. -CBS News