Chamber urges more Aust investment in the Kingdom

Reaping the rewards of closer business engagement is not guaranteed, however, AustCham said. 

“It was clear from Prime Minister Yingluck [Shinawatra]’s visit to Australia [last month] that there is much more to be gained from the Australian-Thai business relationship,” AustCham president John Anderson said. 

“But reaping the rewards will require the strong engagement of businesses, both in Thailand and Australia. 

“We will also need voices loud enough to be heard above the din of ‘China’ and ‘India’, such is the preoccupation [with those economies] in Australia at the moment.” 

The AustCham “Australian Business in Thailand” study found that Australian companies in Thailand were thriving, particularly off the back of another manufacturing boom on the eastern seaboard. According to the chamber, “It is a little known fact in Australia that Thailand has become the production base for a multitude of household names. 

The Thai automotive industry is a powerhouse. Its production of 1.5 million vehicles last year dwarfed Australia’s 225,000.” 

So, the chamber wonders, why aren’t Australian firms taking advantage of the opportunities in Thailand? 

The chamber believes there is a problem with the way Thailand is perceived in Australia, saying: “Australian businesses aren’t seeing Thailand for the important economy it is, not just in regional terms but globally.”

 

Victim of own success 

For Thailand, the chamber says, a critical message from the study is that it risks becoming a victim of its own success. AustCham points to a high labour-force participation rate of 72 per cent. 

Anderson added: “Many employers are finding labour is gravely short in supply and wages are increasing. Tracking down workers with the right skills is becoming more and more of a challenge for Australian companies in Thailand, whether it be for the production line, construction site or back in the office.”