Thailand cannot withstand an energy crisis, Prayut warns

Breaking News November 07, 2014 20:47

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THAIS SHOULD be aware that energy sources including natural gas are constantly declining and that the country's economic foundation is not strong enough to survive an energy crisis, Prime Minister General Prayut Chan-o-cha said.

He also called for people to help build energy security for the sake of the next generation.

In his weekly televised public address Friday, the prime minister said some people might raise questions about how some countries without oil reserves have economic stability. He said this was because those countries had strong economic foundations, effective energy reserve systems, and high gross domestic product per capita. But Thailand has low GDP per capita and its economy is heavily dependent on agricultural production.

There are two main concerns in Thailand’s energy sector, the general said. The first concern is derived from ineffective management and policies that lack continuity and clarity. Thailand needs to build confidence among investors. Should it fail to do so, the country will become less stable in the future. Thailand must find a way to ensure growth in GDP per capita. For the past seven years, it has not invested in finding new energy sources for domestic consumption because of continual political unrest.

The second concern is derived from an imbalance between energy production and imports. The amount of energy Thailand imports is higher than what it produces.

The Nation

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