Gov’t spending to drive Thai security

Thailand’s economy has performed with tepidness over the past few years, with the World Bank forecasting growth to be 2.5 percent this year and 2.6 percent next year. Yet, for the country’s security industry, a more optimistic sentiment prevails, as players are seeing a much stronger growth.

“Overall, Thailand’s economy is not good. But the CCTV market has still increased about 15 percent thus far this year, similar to 2015,” said Somchai Prajaksoot, Managing Director at Digital Focus.

According to him, a major driver for such growth in security is increased government spending, which is seen as a last resort to revive the country’s economy. With anemic exports and domestic consumption, and private investment not picking up at a fast pace, it’s up to the government to spearhead infrastructure and other types of projects to give the economy a much needed boost.

And indeed, the Thai government has announced various infrastructure programs, including plans to construct and expand the country’s metro and rail systems. Currently, the government has announced several new metro lines – for example the Red Line – in Bangkok, in addition to the current Blue and Purple Lines. In the future, high-speed rail linking Bangkok to various destinations will also be in place. For example, Japan will provide its Shinkansen technology for a high-speed rail link between Bangkok and the northern city of Chiang Mai.

In terms of airports, the two major international airports of Bangkok, Suvarnabhumi and Don Mueang, are currently undergoing expansion. Upgrades of four other airports in Thailand – Chiang Mai, Chiang Rai, Phuket and Hat Yai – are also being planned. These projects are expected to benefit security as well.

“We have sold 1950 units of Hikvision to the Thai airport authority. We also have promoted safe city and traffic management in many provinces,” Prajaksoot said, adding that certain regulations in place are expected to drive security, too. “Due to a government act to force buses and trucks to install security systems inside them, most of them will install GPS tracking equipment, DVRs and cameras.”

Besides government spending, another driver for security is increased risk and the need to protect against it. “Crimes have increased, so more Thai people have installed CCTV in their homes,” he said. “The other factor is that there is a law which does not permit foreigners, like those from Myanmar, Laos and Cambodia, to be security guards. This has led to a security guards shortage. So security companies have added CCTV with their service.”