The current economic climate is driving people to seek investments that offer the potential for returns to build financial security. Investing in the New Economy is an attractive concept with opportunities for future growth.

Today, we invite you to explore investing in the New Economy, plan for your future, and build peace of mind with investment-linked insurance.

What is the difference between the New Economy and the Old Economy?

Investing in the New Economy is choosing to invest in new things, new ways of thinking, and new, exciting business models that tend to have outstanding growth in the next 3-5 years. This differs from investing in the traditional economy (Old Economy), which focuses on stable industries with precise industry data.  The Old Economy has products and services that are widely accepted and are often large companies that have been in business for a long time.

Why is the concept of investing in the new economy interesting?

The concept of investing in the new economy has gained more attention in recent years due to rapid economic and technological changes. Many countries worldwide are developing and adapting to accommodate new forms of growth, including leaps in digital technology, the development of startup businesses, and changes in consumer behavior. These all open up new opportunities for investors who see future growth.

Thailand itself has thoughtfully adapted to the New Economy due to several factors, such as:

●        Support from the current government: The current government sees that Thailand has key strengths that can generate interest at the international level in the New Economy era, particularly in terms of natural resources, which enable the country to produce large quantities of agricultural products. The government has, therefore, driven various projects to promote this area specifically, such as the establishment of the Agricultural Industry Institute, integrating modern technology with agriculture to create Smart Farming that directly responds to the New Economy.

●        Expertise in automotive manufacturing: Thailand also has a key strength in its internationally recognised expertise in automotive manufacturing, ranking as the 10th largest automobile production base in the world and achieving export value of over 688,531.24 million baht last year. This expertise makes it easy for manufacturers to adapt to the rapidly growing electric vehicle parts manufacturing market under the support of the Federation of Thai Industries, which continuously promotes knowledge and provides assistance to entrepreneurs to enter New Economy businesses.

●        The Stock Exchange of Thailand​ : The Stock Exchange of Thailand also plays a vital role in promoting the New Economy by driving industrial groups that create competitive opportunities and directly enhance the country's potential. There are a total of 10 primary industries:

Key characteristics of businesses in the New Economy group

Businesses in the New Economy group emphasise using technology and innovation to drive growth. They are often involved with digital services, changes in production and consumption patterns, and creating value in markets that do not rely on natural resources or traditional industries. Therefore, the growth of these businesses is linked to changes in technology and flexible consumer behaviour.

●        Innovation in business models and technology: Businesses in the New Economy group emphasise using technology and innovation to add value to their products and services. Companies must develop new business models that can effectively meet market demands, such as using digital technology to improve production processes or services, data and analytics (Big Data) to improve business decisions, or artificial intelligence (AI) to enhance customer experience. In addition, adopting new technologies to help reduce costs and increase customer service speed enables companies in the New Economy group to create a competitive advantage and continuously add value to customers.

●        High growth potential: Businesses in the New Economy group often have high growth potential because they are products or services still in the market's early stages, where market share is still low but has the opportunity to grow significantly in the future. If long-term success can be achieved, the market for these products or services can expand rapidly and increase considerably compared to the current market value. Examples include cloud computing services or the use of AI in developing various industries, which still have high demand and are expected to continue to grow. Investing in businesses with high growth potential can generate attractive returns and open up opportunities in high-value markets.

●        Wide recognition: Even though businesses in the New Economy group may still be in their early stages, creating widespread awareness is essential in enabling those products or services to grow. Building market and industry awareness through effective marketing and communication will help customers understand the value and benefits of those products and services. Widespread awareness will help stimulate interest and acceptance from consumers more quickly, leading to market expansion and building a solid customer base in the long term. Therefore, setting a strategy to create awareness in the early stages is critical to expanding the business and making it successful in the future of the New Economy group.

Examples of New Economy businesses in Thailand

In Thailand, many businesses, such as fintech technology businesses, online commerce, and various digital services, are growing in the New Economy sector, reflecting changes in consumer behaviour and technology adoption to increase efficiency and create new value in the market. While traditional businesses are adapting to this trend, let's consider the following examples of New Economy businesses in Thailand for investment:

●        Cybersecurity Market: In an era where doing business and living online has become essential to every sector, investing in the cybersecurity market cannot be overlooked. The cybersecurity market in Thailand is increasing due to the need to protect both public and private sector data from various threats such as cyberattacks, data theft, and privacy violations. The rise of these threats has forced companies and government agencies to invest in technologies that help enhance the security of information systems.

●        Medical Tourism: Medical tourism in Thailand has gained immense popularity, especially among foreign tourists seeking quality medical treatment at affordable prices. Thailand is renowned for its international standard hospitals and highly skilled doctors, making medical services in Thailand an attractive destination for tourists from around the world. This has led to the growth of hotels that cater to medical tourism, offering comprehensive services such as post-treatment patient care and rehabilitation support. Thailand is a major medical tourism destination that attracts foreign tourists.

●        Cloud Services: Cloud services are crucial in transforming data management in businesses and organisations in Thailand, especially among companies that want to reduce costs and increase efficiency in managing large-scale data. Cloud services allow businesses to access data and applications anytime, anywhere via the internet, without investing in expensive IT infrastructure. Using the cloud helps companies save on server maintenance costs and flexibly scale according to their needs. In addition, it can maintain a high level of data security with encryption technology and efficient data backup.

Investment-linked insurance: Life protection with the opportunity to receive investment returns

Investment-linked insurance is a form of life insurance that combines life coverage with investment opportunities. Policyholders can invest in various assets such as money market funds, debt instruments, or equity funds. They will receive investment returns according to the chosen fund. They can select funds according to the level of risk and return that suits their individual needs, which increases flexibility in financial management. In addition, they can increase or decrease the investment amount as needed to suit changing economic situations.

The new economy opens up exciting investment opportunities with advanced and rapidly growing businesses and technologies. Investing in this new economy is an option that helps increase the potential to generate good returns in the long run. However, to get the most out of the new economy's growth, we should follow market trends, study information, and choose to invest with knowledge and strategy.