Govt says reforms key to future!!!

 

 

The government has launched enough stimulus measures
 to sustain the economy — now it is time to get serious about
 reform, Deputy Prime Minister Somkid Jatusripitak tells
 the Post Forum 2015.photos by Patipat Janthong.

Mr Somkid, sixth from left, and economic ministers meet

 the Post Publishing Plc board of directors and executives

 at the forum held Thursday at Siam Pavalai, Siam Paragon.



Future economic policy will focus less on stimulus programmes

 and more on medium-term reforms aimed at rebuilding the

 country's competitiveness and reducing income inequality,

 according to government economic ministers.

 Deputy Prime Minister Somkid Jatusripitak said the

government has issued numerous measures over the past month

 aimed at spurring economic growth, helping low-income

farmers and boosting the property market.

 "But you will see less stimulus programmes going forward,

 and more focus on the fundamental issues facing the economy,"

 he told more than 1,000 business leaders and policymakers

 at the Post Forum 2015 Thursday.

 Business reaction: Praise for Somkid's pledge

Reforms, Mr Somkid said, will aim to shift away from the

 export-led growth model used over the past three decades to

 one that is more inclusive of the entire population.

"There are 30 million people who account for less than 10%

of GDP. How can Thailand develop if we don't raise their

incomes, if these people have no purchasing power?" he said.

 Development of public services, including utilities and

 education, will shift away from a centrally-controlled system

 to one tailored to meeting community needs and strengths.

 

 Businesses meanwhile must shift away from low-value goods

 to higher- value,innovative  products.

"Innovation has to drive competitiveness," Mr Somkid said.

 "We can't just be an economy driven only by a handful of

 large companies. How can we encourage new start-ups?"

 Mr Somkid, who served as finance minister from 2001-2003

under the Thaksin Shinawatra government following a career

 focusing on national and business competitiveness, said

Thailand was well-poised to benefit from regional integration

under the Asean Economic Community initiative beginning

 next year.

 "But we can't be a hub if we don't have connectivity," he said,

 elaborating that this involved not only physical linkages such

 as railways and roads, but also digital connectivity.

Global supply chains already run through Asean, Mr Somkid

said. The key is how to raise Thailand's attractiveness for

investment, by enacting economic reforms, improving

 infrastructure, curbing corruption and eliminating barriers

 to business.

"We're not an emerging economy. We emerged decades ago.

 But the problem is that [growth] hasn't been sustainable,"

he said.

 Other ministers speaking at the Post Forum echoed Mr Somkid's

 message that the priority going forward would hinge on

 medium-term reforms.

 Finance Minister Apisak Tantivorawong said tax reforms will

aim at reducing loopholes and facilitating private sector

investment. He said next month the ministry will launch a

framework to develop an electronic payments system

 nationwide, where national ID cards could be used as a

 payment card.

 Low-income citizens could use the cards to receive public

 subsidies and services directly, increasing the efficiency and

effectiveness of social welfare programmes.

Transport Minister Arkhom Termpittayapaisith said transport

 megaprojects are aimed at supporting long-term economic

 growth and facilitating connectivity not only within the

 country, but across the region.

By mid-2016, work would begin on a new East-West rail line

 linking Kanchanaburi, Bangkok, Laem Chabang and Sa Kaeo

 in the East. Other high-speed rail projects would be built

connecting Mae Sot in Tak toNong Khai and Mukdahan in

 the Northeast, as well as lines connecting Bangkok and

Chiang Mai in the North and Hua Hin in the South.

Mr Arkhom said in Bangkok, the Purple light-rail mass transit

 line would begin trials in May 2016, with commercial services

 planned to begin in August.

Another line would also be built connecting Don Mueang

 and Suvarnabhumi airports.

Industrial policies, meanwhile, will aim to encourage new

investment by companies in technology and innovations.

Atchaka Sibunruang, the industry minister, said key industries

 such as automobiles, electronics and petrochemicals along

the Eastern Seaboard would be promoted under the

"super cluster" concept.

Chiang Mai and Phuket, meanwhile, would be positioned as

IT hubs, with tax incentives offered to support the creation

 of digital clusters.

Ms Atchaka said current incentives could be extended to

 10 or 15 years for certain "missing links" from the country's

 industrial base, such as hybrid engine technology in the

auto sector.

 

New tax reforms  would also be enacted to help lure foreign

 talent and encourage research and development.

And as the government looks to upgrade the technological

 sophistication of the country's manufacturing base, other

policies will be taken to support the growth of a
 "Digital Thailand"  ICT Minister Uttama Savanayana said
 policies would focus not just on technology, but connectivity,
 to enable knowledge sharing and creativity growth which in turn
 would spur innovation.

 Community "telecentres" will be built nationwide to educate

 small businesses about how to market and sell goods online

 and encourage "life-long learning", the ICT minister said.

 

Mr Uttama said to strengthen Thailand's human capital, "start-up accelerators" would be created to foster the growth of new

technology companies.

Laws would also be reformed to support e-commerce, while

public services, starting in January for seven key ministries,

would move away from paper documentation to a digital ID

 system for citizens, he said.

 Overhauling Thailand's state enterprises is also a key part of

 the reform platform.

Banyong Pongpanich, a member of the State Enterprises

Policy Commission, said state enterprises controlled 12 trillion

baht in assets and an annual investment budget of 5.1 trillion baht,

 or twice that of the government budget.

 "State enterprises control a huge portion of the country's

resources, whether it be in monopoly rights or national resources,"

he said.

 But returns are meagre, showing the inefficiency of most

organisations. Mr Banyong said those state enterprises that do

 make profits mostly do so as a result of monopoly power,

 while companies that do compete with the private sector,

 such as Thai Airways International, TOT Corp or the State

Railway of Thailand, all face significant pressure.

 Mr Banyong said under planned reforms, state enterprises would

 be required to increase transparency and disclosure,

overhaul the selection process for their boards of directors

and separate regulatory powers from operations.

News,General,Bangkok Post,16Octorber 2015.

 

I agree with future economic policy that will focus less on

stimulus programmes and more on medium-term reforms

 aimed at rebuilding the country's competitiveness and

 reducing income inequality.

 

The aim to shift away from the export-led growth model used

over the past three decades to one that is more inclusive of

the entire population is an important point to operate

 because SME and medium business in Thailand need

a lot of knowledge and innovation for them to be competitive

 in the world market.

 

All startegies and visions from every Ministries sound good

the important point is how to operate the idea to be successful.

 

Sincerely Yours.