A DROP AT A TIME
In 2016, many Thai's across the Kingdom will be looking out for weather forecasts—rather than economic ones—as the key indicator for the country's economic sustainability. Water is becoming an increasingly precious global commodity as populations and temperatures increase.
With the country experiencing its most severe water shortage in two decades, all eyes are on the government as it takes mother nature head-on in a bid to ensure water security for its population and thirsty economy. In March 2016, the Director-General of the Royal Irrigation Department, Suthep Noipairoj announced that "this year sees the lowest irrigation water level since 1994," and it was revealed that 14 of 77 provinces were facing drought, while a further 31 others were at risk. With rainfall across the country 46% lower than normal throughout 2015, the issue of storing and slowly releasing resources throughout the dry season has seldom been greater.
According to Thailand's Board of Investment (BOI), the government has constructed some 3,000 dams over the years, with several large dams (Kiew Lom, Mae Ngat, Mae Kuang, Mae Chang, Thap Salao and Kra Sieo) built over the past two decades to help store the monsoon flows. The vast focus of these efforts has been directed towards conserving water in the vast Chao Phraya basin—Thailand's breadbasket.
Stretching across the northwest of the country, the area has largely been served by two major constructs—the Bhumibol and Sirikit dams—which together control the runoff from 22% of the area of the entire basin. However, as shown by the Thailand Integrated Water Resource Management program, which was initiated directly by His Majesty the King Bhumibol Adulyadej in 1998 and designed to broadcast water levels in each of Thailand's major dams in real time, both Bhumibol and Sikrit are running alarmingly dry. As of April 2016, the Bhumibol and Sirikit dams are currently operating at 32% and 42% capacity respectively. Moreover, with the region's dry season about to enter full-swing, the government is starting to count the cost the water shortage could have on Thailand's vital agricultural sector, and has already begun to implement solutions to help ease the impact.
Contributing some 12% to GDP in 2015, Thailand's agriculture sector employs over 30% of the local labor force, yet consumes a whopping 65% of the country's overall water usage. Put in perspective—that is compared to 0.5% of water used by Thailand's entire tourism sector. Above all, reserves are being drained by rice cultivation—where Thailand ranks among the top exporters in the world. According to recent forecasts, the water shortage in 2016 could shave between 0.5 and 0.8% off Thailand's GDP growth, with its rice production expected to slump almost 30% to 25 million tons.
As such, the government has put in place a number of measures to help soften the blow and, temporarily at least, reform the industry. In 2015, they encouraged farmers to delay their winter rice crop—which is generally cultivated through irrigation rather than rainfall—until August. This year, the government has rolled out measures worth $660 million, including supporting farmers to grow less water-intensive crops such as fruit trees, sugarcane or peas, or encouraging the Bank of Agriculture (BAAC) to finance farmers who need to grow alternative crops.
While 2016 will be the fourth consecutive year of sub-normal rainfall level, every cloud has a silver lining. A huge opportunity is presenting itself for fresh, innovative water-management solutions, while Thailand's agricultural output is set to become a more diverse basket.
A DROP AT A TIME
TABLE OF CONTENTS
Review: Diplomacy
The Times are Changing
The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.
read articleGuest Speaker
HE Maithripala Sirisena, President, Democratic Socialist Republic of Sri Lanka
TBY talks to HE Maithripala Sirisena, President of the Democratic Socialist Republic of Sri Lanka, on celebrating 60 years of relations with Thailand, boosting bilateral trade, and potential opportunities with the AEC.
read articleFocus: Special Economic Zones
Zone Home
With numerous upcoming major trade deals like the TPP and CAFTA, in addition to Thailand joining the ASEAN Economic Community, the country is developing a host of strategically located and incentivized SEZs to take advantage of the upcoming opportunities.
read articleFocus: Auto Sector
Driving Force
A combination of slower global economic growth and weaker domestic purchasing power suggests that Thailand's renowned automotive sector is heading for flat growth in 2016, thereby encouraging the government to promote cutting-edge innovation across the industry.
read articleFocus: Gems & Precious Stones
Shine Bright
As a key driver of the economy, Thailand's vast manufacturing sector comes in different shapes and sizes—and colors, for that matter. One segment to have really emerged as a sparkling export opportunity over the past two decades has been the country's gems and precious stones industry.
read articleInterview
Dr. Pichet Durongkaveroj, Minister, Science and Technology
TBY talks to Dr. Pichet Durongkaveroj, Minister of Science and Technology, on the initiatives to boost innovation in the country, facilitating greater private investment, and fostering mutually beneficial partnerships with countries.
read articleFocus: E-Commerce
Down the Wire
In 2014, when Chinese e-commerce giant Alibaba made headlines for listing the largest global IPO in history (USD25 billion), many had come to recognize that the industry, which was typically dominated by Silicon Valley heavyweights, was gravitating drastically eastward.
read articleInterview
Anantachai Kunanantakul, Chairman & CEO, Siam Eastern Industrial Park (SEP)
TBY talks to Anantachai Kunanantakul, Chairman & CEO of Siam Eastern Industrial Park (SEP), on the development of the park, the benefits on offer, and plans to further develop the country's eastern seaboard.
read articleInterview
Kan Trakulhoon, Head of Working Group , Eastern Economic Corridor (EEC)
TBY talks to Kan Trakulhoon, Head of Working Group of the Eastern Economic Corridor (EEC), on the background of the EEC project, the government's push to build up infrastructure in the country, and his projections for the coming year.
read articleFocus: Water Shortage
A Drop At a Time
In 2016, many Thai's across the Kingdom will be looking out for weather forecasts—rather than economic ones—as the key indicator for the country's economic sustainability. Water is becoming an increasingly precious global commodity as populations and temperatures increase.
read articleReview: Education
Many Brains to Gain
Thailand has long suffered from an ineffective education system, with a large number of dropouts and graduates not equipped to deal with the demands of the 21st century. However, the government has been taking actions in a bid to get serious about much-needed education reform.
read articleInterview
Weerasak Kowsura, Board Chairman, Thailand Convention & Exhibition Bureau (TCEB)
TBY talks to Weerasak Kowsura, Board Chairman of the Thailand Convention & Exhibition Bureau (TCEB) & Board Chairman of Designated Areas for Sustainable Tourism Administration (DASTA), on the country's booming MICE industry and the benefits of community-based tourism.
read articleInterview
Proudputh Liptapanlop , Executive Director, Proud Real Estate
TBY talks to Proudputh Liptapanlop and Pasu Liptapanlop, Executive Directors of Proud Real Estate, on the company's development plans for Hua Hin, the prospects of the industry, and their expectations for the future.
read article
