Thailand Auto Sales Hit Two-Year High in 2025 as EV Boom Offsets Weak Economy
Thailand’s automobile sales climbed to a two-year high in 2025, driven by a surge in electric vehicle (EV) purchases despite sluggish economic growth. Total vehicle sales reached 621,166 units, up 8.5% from 2024, according to Federation of Thai Industries. EVs accounted for 45% of total sales, or 276,697 units, with battery electric vehicle (BEV) sales jumping 80% to 120,301 units. Industry spokesperson Surapong Paisitpattanapong said aggressive price cuts by Chinese manufacturers, including BYD Co., helped fuel demand, with discounts of up to 38% on some models such as the Seal sedan.
Looking ahead, the industry group expects domestic vehicle sales to rise further in 2026, supported by post-election stimulus measures. Vehicle production is forecast to increase to 1.5 million units, comprising 950,000 units for export and 550,000 for domestic sales, up from 1.46 million units produced in 2025. However, Surapong cautioned that EV exports may soften due to growing competition from Chinese EVs made elsewhere and the impact of US tariffs, even as output of internal combustion engine vehicles continues to decline sharply.
https://www.bloomberg.com/news/articles/2026-01-28/thailand-s-2025-auto-sales-climb-to-two-year-high-on-ev-demand
Editor’s Note: Thailand’s auto sales hit a two-year high in 2025, rising 8.5% to 621,166 units, with EVs making up 45% of the market thanks to steep discounts from Chinese manufacturers. The Federation of Thai Industries expects sales and production to grow further in 2026, though EV exports may face pressure from global competition and US tariffs.
AI to Drive Thailand’s Electronics Industry Toward Smart Manufacturing Hub
Thailand’s electronics industry is entering a new phase of transformation as artificial intelligence (AI) takes on a central role in manufacturing. The Thailand Development Research Institute projects that the country’s AI industry will expand at a compound annual growth rate of 42.4% between 2020 and 2030, with both public and private sectors expected to play a key role in accelerating adoption. Analysts say the integration of AI into electronics and other manufacturing sectors aligns with the Thailand 4.0 policy, which seeks to shift the economy toward a knowledge-based model by 2050 through advanced technologies such as semiconductors, photonics and Industry 4.0 systems.
To strengthen Thailand’s position as a regional manufacturing hub, SCB EIC has outlined several strategic priorities for the electronics sector. These include a stronger focus on green technologies and clean energy use, the development of skilled labor through updated curricula and workforce reskilling, and greater investment in research and development to support upstream semiconductor production. The recommendations also call for relaxed regulations for highly skilled foreign workers, expanded tax incentives for advanced semiconductor firms, and accelerated development of digital and energy infrastructure to attract long-term foreign investment into green and high-tech electronics manufacturing.
Editor’s Note: Thailand’s electronics industry is embracing AI to transform into a smart manufacturing hub, with the sector projected to grow at a 42.4% annual rate through 2030 under the Thailand 4.0 policy. Strategic priorities include advancing green technologies, boosting semiconductor R&D, reskilling the workforce, and offering incentives to attract foreign investment in high-tech manufacturing.
Thailand Pledges Debt Relief, Investment Push and Fiscal Discipline After Election
Thailand’s new government will prioritize debt-relief measures and accelerated investment to revive economic activity while maintaining fiscal discipline, Finance Minister Ekniti Nitithanprapas said following the weekend election. He stressed that forming a durable coalition would be critical for the country’s fiscal outlook, after a surprise victory by Prime Minister Anutin Charnvirakul raised hopes of greater political stability. The government will continue existing debt-relief programmes and step up regulatory action against scams and illicit financial activity, while also monitoring the baht’s recent appreciation. The currency has risen about 1% so far this year after gaining 9% in 2025, threatening the competitiveness of exports and tourism, as foreign arrivals fell 10.77% year-on-year to 4.19 million between January 1 and February 8.
With economic growth lagging regional peers amid high household debt and external pressures such as U.S. tariffs, the finance minister said fourth-quarter growth in 2025 was likely above 1.8%, with full-year expansion exceeding 2.2%. He added that the government would fast-track investment projects and speed up preparation of the 2027 fiscal budget to avoid delays and restore investor confidence. Thailand will also permit trading in carbon credits to strengthen its sustainability agenda. Despite stimulus efforts, Ekniti emphasized that fiscal discipline would be preserved, noting that foreign investors are closely watching the new administration’s policy direction.
Editor’s Note: Thailand’s new government plans to revive growth through debt relief, faster investment, and carbon credit trading, while keeping fiscal discipline to reassure investors. Finance Minister Ekniti Nitithanprapas highlighted coalition stability, stimulus measures, and budget acceleration as key priorities, though high household debt and U.S. tariffs remain challenges.
Gartner Warns of Radical Shift in Cybersecurity as Agentic AI and Post-Quantum Threats Loom
Cybersecurity leaders are entering “uncharted territory” as autonomous artificial intelligence and emerging post-quantum risks reshape the global threat landscape, according to Gartner, Inc.. The research firm said the convergence of agentic AI, rising geopolitical tensions and volatile regulation will redefine how organisations manage cyber risk in 2026. Gartner identified six major trends set to dominate boardroom agendas, led by the rapid adoption of AI agents in workplaces and software development. The spread of low-code tools and “vibe coding” has created a surge in unmanaged AI systems, opening new attack surfaces and increasing the risk of regulatory breaches and insecure code.
Gartner also highlighted growing regulatory pressure on executives, warning that cyber risk must now be treated as a core business risk requiring close coordination between legal, procurement and technical teams. At the same time, the firm cautioned that advances in quantum computing could undermine today’s encryption standards by 2030, making “harvest now, decrypt later” attacks a serious concern for long-term sensitive data. Organisations were urged to begin migrating to post-quantum cryptography and to rethink identity and access management frameworks to handle machine-based actors, as traditional systems are ill-equipped to manage autonomous AI agents and could leave companies more exposed to access-related breaches.
https://www.nationthailand.com/business/tech/40062565
Editor’s Note: Gartner warns that cybersecurity is entering “uncharted territory” as agentic AI adoption and post-quantum threats reshape risk management, with unmanaged AI systems creating new vulnerabilities. The firm urges organizations to treat cyber risk as a core business issue, begin migrating to post-quantum cryptography, and redesign identity frameworks to handle autonomous AI agents.
Thailand Leads ASEAN in AI Use Among Students, but Experts Warn of Readiness Gap
Thailand has emerged as the leading adopter of Artificial Intelligence within ASEAN, with new research showing that more than 90% of Thai students regularly use Generative AI tools. The findings, released by the ASEAN Foundation with support from Google.org, come as Southeast Asia’s digital economy is projected to grow from $300 billion to $1 trillion by 2030. The ASEAN Digital Outlook and AI Ready ASEAN Research reports were unveiled at the “AI Ready ASEAN” regional policy summit in Manila, offering a detailed assessment of digital infrastructure and institutional preparedness across member states.
The study found that 90.29% of Thai students and 81.34% of teachers are now frequent users of Generative AI, with creative applications such as graphic design platforms proving especially popular. However, researchers warned of a widening “readiness gap,” as educators, parents and master trainers often lack formal training and ethical frameworks to guide responsible use. Dr Piti Srisangnam, executive director of the ASEAN Foundation, said AI adoption across the region is advancing faster than governance systems can keep pace, stressing that policy must now focus on preparing institutions and communities so that AI supports society as well as economic growth.
https://www.nationthailand.com/business/tech/40062452
Editor’s Note: Thailand leads ASEAN in student AI adoption, with over 90% of students and 81% of teachers using generative AI tools, especially for creative applications. However, experts warn of a readiness gap as educators and institutions lack training and ethical frameworks, urging stronger governance to ensure AI supports both society and economic growth.
AI-Powered Scams Target Working-Age Thais as Fraud Losses Surge in 2026
Thailand’s working-age population has emerged as the prime target for increasingly sophisticated online scams, as criminals deploy artificial intelligence to fake faces and voices, lure victims through QR codes, and steal money at speed. The Anti Online Scam Operation Centre (AOC 1441) has warned that fraudsters are now combining AI tools with traditional scam tactics, making schemes harder to detect and trace. Caretaker Digital Economy and Society Minister Chaichanok Chidchob said preventing cybercrime is a top priority, with authorities focusing on boosting public awareness and “immunity” against new forms of deception, as damage from such crimes can be swift and difficult to reverse.
Data from AOC 1441 shows that in 2025, people aged 20–49 accounted for 405,929 fraud cases, with financial losses reaching 23.4 billion baht. Common schemes included fake online sales, bogus income opportunities, and fraudulent investment platforms, often routed through mule accounts to conceal money trails. Looking ahead to 2026, officials expect four major scam types to dominate: SMS and Line link scams impersonating authorities, AI deepfake calls using familiar faces and voices, fake QR codes planted in public spaces, and online investment fraud promising unrealistic returns. Authorities stressed that public vigilance—verifying sources, avoiding suspicious links and QR codes, and distrusting urgent money requests—will be critical as trust itself becomes the main vulnerability in the digital age.
https://www.nationthailand.com/business/tech/40062053
Editor’s Note: AI-driven scams are increasingly targeting Thailand’s working-age population, with deepfake calls, fake QR codes, and online investment fraud driving losses of 23.4 billion baht in 2025. Authorities warn that vigilance—verifying sources, avoiding suspicious links, and distrusting urgent money requests—will be crucial as trust itself becomes the main vulnerability in 2026.
Proposed Power Tariff Hike Could Push Thailand’s EV Charging Costs to 11 Baht per Unit
Thailand’s electric vehicle (EV) sector is facing fresh uncertainty as proposed electricity rate adjustments threaten to drive up public charging costs to as much as 11 baht per unit, eroding the cost advantage over petrol-powered cars. The Ministry of Energy has instructed the Energy Regulatory Commission (ERC) to revise the current pricing structure, arguing that the existing rate of 2.91 baht per unit does not reflect real procurement and grid maintenance expenses. Until now, the gap has been absorbed into the national fuel adjustment charge (Ft), effectively spreading the subsidy across all electricity consumers rather than just EV users.
With hundreds of thousands of EVs now on Thai roads, authorities say the financial burden on power utilities is becoming unsustainable. Analysts estimate that once land rental, equipment depreciation and maintenance costs are fully accounted for, retail charging prices could rise from the present 7.5–8.5 baht per unit to between 9.5 and 11 baht. Industry groups warn that such an increase could slow EV adoption, undermine Thailand’s Net Zero ambitions and weaken its bid to become Southeast Asia’s leading EV manufacturing hub. In response, the private sector is urging the government to introduce mitigation measures, including land and building tax waivers for charging operators, incentives for solar-powered stations, and temporary subsidies to preserve a price gap between electric and petrol vehicles during the industry’s critical growth phase.
https://www.nationthailand.com/business/automobile/40061904
Editor’s Note: Thailand’s EV sector faces rising uncertainty as proposed tariff hikes could push charging costs up to 11 baht per unit, eroding the price advantage over petrol cars. Industry groups warn this may slow adoption and weaken Net Zero goals, urging government support through tax waivers, solar incentives, and temporary subsidies.
Malaysia’s Heng Hiap Industries Becomes First Southeast Asian Plastic Recycler to Earn B Corp Certification
Heng Hiap Industries Sdn. Bhd. (HHI) has become the first mechanical and chemical plastic recycler in Southeast Asia to receive B Corporation (B Corp) certification, marking a major milestone for Malaysia’s circular economy ambitions. The certification, verified by an independent body appointed by B Lab, follows HHI’s successful grant support under the Domestic Investment Accelerator Fund for ESG (DIAF-ESG) administered by the Malaysian Investment Development Authority (MIDA). The recognition highlights HHI’s performance in environmental stewardship, transparent governance and social responsibility, reinforcing its role in transforming post-consumer and ocean-bound plastic waste into traceable, premium-grade recycled resins exported to more than 40 countries.
MIDA said the achievement reflects the effectiveness of its ESG-focused incentives and advisory programmes aimed at small and mid-tier companies, supporting Malaysia’s transition toward low-carbon and resource-efficient industries in line with its net-zero target for 2050. MIDA chief executive Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said HHI’s certification demonstrates how innovation and sustainable manufacturing can drive high-value green industries, while HHI CEO Kian Seah described the milestone as a foundation for building “circular trust” through traceability and verified impact. With its inclusion among the global B Corp community, HHI is expected to strengthen investor confidence in Malaysia’s circular manufacturing sector and expand its supply of verified recycled materials to markets in Asia, Europe and the United States.
Media Release Archives – MIDA | Malaysian Investment Development Authority
Editor’s Note: Heng Hiap Industries has become the first plastic recycler in Southeast Asia to earn B Corp certification, underscoring Malaysia’s push toward a circular economy and net-zero goals. Backed by ESG-focused incentives from MIDA, the milestone boosts investor confidence and positions HHI to expand its supply of verified recycled materials across Asia, Europe, and the U.S.
AI, Semiconductors and Data Centres to Drive Malaysia’s Growth Outlook in 2026
Malaysia’s expanding investment in artificial intelligence, semiconductors and data centre infrastructure is reinforcing expectations of 4–5% economic growth in 2026, according to ACCA’s latest Global Economic Outlook. The report cites strong semiconductor exports, rising AI investment and the rapid build-out of data centres as key growth drivers, even as global trade uncertainty and geopolitical risks persist. Technology supply chains across Asia are drawing fresh capital as manufacturers diversify production bases, with Malaysia leveraging its established role in chip assembly and testing. However, business leaders caution that the next phase of competitiveness will depend less on policy ambition and more on how quickly firms—especially small and medium-sized enterprises—adopt new tools and upgrade skills.
Georg Chmiel, board member of the World Digital Chamber, said AI represents a faster and more disruptive shift than previous industrial revolutions, reshaping knowledge work through task redesign before triggering broader labour market changes. He warned that productivity gaps could widen sharply between workers who use AI and those who do not, creating what he described as an “augmented versus unaugmented” divide. With nearly 900,000 SMEs forming the backbone of Malaysia’s economy, Chmiel stressed that large-scale gains will hinge on embedding AI into everyday business operations through digital supply chains and procurement networks, rather than isolated pilot projects. As Malaysia advances its New Industrial Master Plan 2030, analysts say sustained growth will depend on how effectively businesses translate infrastructure investment into measurable gains in output, quality and delivery across industries.
Editor’s Note: Malaysia’s economy is projected to grow 4–5% in 2026, driven by strong semiconductor exports, rising AI investment, and rapid data centre expansion. Analysts caution that sustained competitiveness will depend on SMEs embedding AI into everyday operations, as productivity gaps may widen between “augmented” and “unaugmented” workers.
Penang Accelerates Push to Become Malaysia’s AI-Ready State with Start-ups and Semiconductor Innovation
Penang’s drive to become an artificial intelligence (AI)-ready state is entering a new phase, underpinned by stronger digital participation, expanding technical capabilities and wider industry adoption of AI tools across design, manufacturing and public services. More than 250 start-ups are now registered with Digital Penang Sdn Bhd, with the state targeting 500 by 2030, while its DahDigital upskilling programme has reached nearly 18,000 participants. Penang was recently named Malaysia’s fastest-growing start-up ecosystem by StartupBlink, overtaking Kuala Lumpur for the first time. State leaders say the next phase will focus on helping early-stage ventures turn ideas into viable businesses, alongside expanding digital public services such as the Penang Island City Council’s PEARL app for unified digital access.
Industry players are also deepening Penang’s role in AI-enabled design and advanced manufacturing. Intel Malaysia said AI is now embedded across its operations, supporting predictive maintenance, higher yields and faster test cycles, delivering multi-million-dollar savings through reduced downtime and real-time analytics. At the same time, home-grown chip design firms such as GreatAsic Technology and Oppstar are moving Malaysia up the semiconductor value chain into system-on-chip and AI-focused design. Guided by the state’s Digital Economy Master Plan 2025–2030, officials say Penang is positioning itself as a regional hub for AI and semiconductors, though challenges remain in scaling start-ups, funding deep-tech development and building globally competitive talent pipelines.
https://theedgemalaysia.com/node/791948
Editor’s Note: Penang is accelerating its push to become Malaysia’s AI-ready state, with over 250 start-ups, widespread upskilling programs, and AI adoption across public services and manufacturing. Backed by Intel and local chip design firms, the state aims to position itself as a regional hub for AI and semiconductors, though challenges remain in scaling ventures, funding deep-tech, and building global talent pipelines.
Malaysia Powering ASEAN’s Next Phase of Digital and AI Growth
Malaysia is emerging as a strategic digital hub for Southeast Asia through significant investments in connectivity, data centres, and AI-ready infrastructure led by Telekom Malaysia and its international arm TM Global. The expansion includes extensive fibre networks, 5G backhaul, and submarine cable systems spanning over 275,000 km, alongside new hyperconnected data centres and cable landing stations. A major AI-ready data centre campus planned in Johor — scalable up to 200MW — is intended to support rising regional demand for cloud computing, artificial intelligence, and industrial IoT, reinforcing the country’s position within the broader ASEAN digital economy.
These developments create strong advantages for foreign companies seeking regional expansion, as Malaysia offers secure, scalable, and low-latency infrastructure for deploying AI and digital services across multiple markets. Solutions such as GPU-as-a-Service hosted in sovereign data centres reduce capital barriers for AI adoption, while robust cybersecurity standards and international connectivity enable global enterprises to operate with confidence. Overall, Malaysia’s digital ecosystem strengthens ASEAN integration and provides international firms with an attractive base for innovation, data processing, and cross-border operations.
https://www.thestar.com.my/starpicks/2026/01/31/powering-aseans-digital-growth
Editor’s Note: Malaysia is positioning itself as ASEAN’s next digital hub with major investments in fibre, 5G backhaul, submarine cables, and AI-ready data centres, including a 200MW campus in Johor. These developments strengthen regional integration and attract global firms by offering secure, scalable infrastructure, GPU-as-a-Service, and robust cybersecurity for AI and digital operations.