The Royal Thai Navy has further clarified that the Offset Policy under the high-performance frigate procurement project will generate more than 7 billion baht in investment within Thailand and create approximately 50 billion baht in economic value.
Rear Admiral Parach Rattanachaiphan, spokesman for the Royal Thai Navy, disclosed that following the Navy Spokesman Office's release of information summarising the evaluation results of the high-performance frigate procurement project — which referenced the Economic Offset Policy — the Royal Thai Navy wishes to provide additional clarification so that the public and interested parties may gain a clearer understanding of the principles behind that policy.
The economic offset proposal that the committee used as part of its evaluation centres on the actual value of investment and economic activity occurring within Thailand (Actual Value), amounting to more than 7 billion baht, or approximately 42% of the project's value. This encompasses investment, employment, the engagement of Thai entrepreneurs, technology transfer, industrial development, and human resource development within the country. As that investment circulates further through the economic system — through manufacturers, Thai entrepreneurs, subcontractors, labour hire, logistics, and related businesses across the entire supply chain — estimates based on a model by the National Science and Technology Development Agency (NSTDA) project that it will generate a total economic value of more than 50 billion baht, or approximately 300% of the project's value (Offset Credit Value). This reflects the long-term economic benefits that will accrue to Thailand, alongside the strengthening of national defence capabilities.
In order for members of the public interested in the Royal Thai Navy's operations to better understand the principles of the Economic Offset Policy, the Navy wishes to explain that the evaluation of proposals begins with the Actual Value of investment occurring within Thailand, which is then calculated together with a Multiplier — reflecting the level of technology, strategic importance, and responsiveness to the country's industrial and technology development goals — to arrive at the Economic Impact, which is used to evaluate and compare the proposals submitted by each bidder.
To this end, the Royal Thai Navy has prepared supporting documents and infographics as example calculations to explain the principles of the Economic Offset Policy, the calculation methodology, and the distinctions among Actual Value, Offset Credit Value, and Economic Impact, as well as step-by-step calculation examples, so that the origin of the figures, the proposal evaluation criteria, and the benefits Thailand will derive from the project can be understood accurately, clearly, and in a verifiable manner.
The Royal Thai Navy affirms that the procurement of the high-performance frigates and the committee's evaluation of proposals have been conducted in full compliance with all applicable laws, regulations, and prescribed criteria, upholding the principles of transparency, fairness, value for money, and the best interests of the nation. The Navy stands ready to disclose information and clarify the facts on every issue that can be disclosed once the process has received complete approval in accordance with the law.
