More than two years ago, the Thai military, led by General Prayut Chan-o-cha, formed a junta that took over as Thailand’s governing authority. Over the two years since the takeover, the country’s economic growth has been limited. According to a survey by the World Bank, Thailand’s gross domestic product is set to grow
More than two years ago, the Thai military, led by General Prayut Chan-o-cha, formed a junta that took over as Thailand's governing authority. Over the two years since the takeover, the country's economic growth has been limited. According to a survey by the World Bank, Thailand's gross domestic product is set to grow 2.5 percent this year, compared to a growth of 2.8 percent last year.
However, for security, a higher growth is anticipated this year compared to last year, with some experts suggesting the country's video surveillance market growth would be in the mid-double digit range.
One driver for such growth, according to Ranee Sitthikaew, Group Manager of Panasonic Siew Sales, is increased spending on projects by the government. “The military government has tried to develop infrastructure and logistics in Thailand, part of a multibillion-baht plan that will be a positive factor for the security market,” she said. “The high-speed train will especially play an important part.”
Sitthikaew is referring to high-speed rail linking Bangkok to various destinations. For example, Japan will provide its Shinkansen technology for a high-speed rail link between Bangkok and the northern city of Chiang Mai. Thailand and China are also collaborating on future routes from Bangkok to Nakhon Ratchasima and then to Vientiane.
Besides high-speed rail, the Thai government has also announced several new metro lines – for example the Red Line – in Bangkok, in addition to the current Blue and Purple Lines. All this is hoped to boost the country's security industry, as equipment is needed in these projects.
In addition to government spending, private investment has picked up as well, amid views that the military government has brought stability to the country after years of protests against former regimes. That, coupled with Thailand's strategic position in the ASEAN Economic Community (AEC) region, also makes the country appealing to investors.
“We are expecting investment by private sector players, who are the main customers for Panasonic,” Sitthikaew said. “Most private sector players now purchase security for features and functions as their No. 1 priority, not only price.”
The need for security to protect citizens and tourists amid a rise in crime is also a driver. “Criminal activities will affect Thailand's security market. A lot of criminal news on TV came from video captured by security cameras. This will drive security market expansion especially in the residential market and SMEs,” she said.