THAILAND Trends and Developments Contributed by: Nuchaya Timrat, Naris Asavathongkul and Piyachai Wijitvongtong, Baker McKenzie
Overview The technology M&A market in Thailand remains highly active, solidifying its position as a key driver of investment in the Kingdom. The tech sector’s inherent value is amplified by its piv- otal role in modernising and advancing other industries such as food and beverage, logistics, media, and telecommunications. Over the past year, strategic technology M&A deals have sig- nificantly bolstered these sectors. The momentum in technology M&A is expected to persist, supported by several factors. These include the growing integration of artificial intel- ligence (AI), strong regional demand for data centre infrastructure, and the rapid digitalisa- tion and evolution of the entertainment industry and other platform ecosystems. Combined with steadfast government support and Thailand’s dynamic tech environment, these trends point to continued growth in technology M&A as the decade progresses. A Closer Look at the AI and Tech Environment in Thailand The adoption of modern technologies, notably AI, has become ubiquitous in many countries, and Thailand is also showing significant devel- opment in this field. Since the implementation of Thailand’s National AI Strategy and Action Plan (2022-2027), AI use in the government sector has gradually increased. Thailand’s digital economy is also expanding quickly, with the government’s Thailand 4.0 ini- tiative encouraging digital transformation across industries. Thailand also has one of the largest supercomputers in the Asia-Pacific area, known as “LANTA”, which provides processing capac- ity for AI research and development. Thailand’s infrastructure positions it as a potential regional hub for AI innovation in Southeast Asia.
On the private sector side, with government agencies helping to promote the tech and AI industries through various investment privileges offered by the Thailand Board of Investment and several investment-attracting policies, we are seeing Thai businesses emerge as significant players in the regional tech and AI environment. Thailand today has more than 1,500 AI-related businesses, many of which use AI technologies While the world has seen significant investment in AI and other emerging technologies, Thai- land’s tech scene is increasingly attracting the interest of both local and international venture capitalists and other investors. The country’s solid base in healthcare, agriculture, tourism, and the manufacturing industry creates various potential routes for technological integration and disruption. There has been major venture capital and fund co-operation between local and foreign institutions aimed at investing in technology and artificial intelligence, such as: in a variety of industries. Attracting AI investment • KX Venture Capital, the venture capital invest- ment arm of KASIKORN Business-Technology Group (KBTG), and AI Fund, a venture studio focusing on AI, announced their partnership this year to accelerate the implementation of AI in Thailand. • Thailand-based investment firm Disrupt Technology Venture has announced its Dis- rupt Health Impact Fund to invest in Deep- Tech companies in the healthcare field, both domestically and internationally. Global tech investment patterns are improving, but the impact on Thailand remains unpredict- able. While the country’s tech scene seems promising, AI-related M&A activity in Thailand currently remains modest.
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