Lack of transparency on pledging scheme
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The government's inability or reluctance to clarify aspects of its rice-pledging programme shakes investors' confidence as it shows that Thailand still lacks transparency, rule of law and cooperation among official agencies, said Dr Surin Pitsuwan, former
He made the remark on Thursday during a speech about significant strategies of trade in Asean at the “Preparing Thai Businesses ... Creating an AEC Hub” seminar hosted by TMB Bank.
The seminar was meant to suggest steps to Thai enterprises on increasing their competitiveness in preparation for Thailand becoming an AEC hub without having to venture abroad.
“Precise and exact data have to be announced with confidence. Doing otherwise will undermine Thailand’s strengths,” Surin said.
On the same day as the seminar, Commerce Minister Boonsong Teriyapirom rejected the much-touted report that the rice-pledging scheme had lost Bt260 billion. But he did not state the actual loss figure, saying it would be finalised at another meeting on Monday.
Surin also touched on the corruption issue. Some investors may avoid investing in Thailand because of the unnecessary costs due to graft.
A corrupt system would also demoralise good officials, as their contributions are not recognised.
Surin also pointed to the labour issue. The insufficient domestic workforce has led to a demand for foreign workers in many sectors. The absence of these workers can tremendously affect the operations of many businesses.
“Officials should respect their rights and treat them indiscriminately. The Thai government should also introduce policies improving their welfare and benefits,” he said.
Krirkkla Sonthimas, president of the Thai Federation on Logistics, said at the same seminar that Thai logistics were quite ready for the AEC. The country’s geographic location is one of its main advantages.
The efficient connectivity for rail-road-sea freight will be an attractive point for both logistics-related corporations and other businesses, he said. The World Bank’s Logistics Performance Index for 2012 ranked Thailand at No 38 out of 155 economies worldwide. Among other Asean states, Singapore ranked first while Malaysia was No 29.
Dr Benjarong Suwankiri, team head of TMB Analytics, said that at present, all sectors of agriculture, manufacturing and services had competed by capitalising on cheap labour. Thai businesses have to improve their standards and performance with innovation to increase efficiency and reduce waste.
“Innovation can be achieved in many ways. For example, one simple measure is taking advantage of available technology or social networking,” he said.
With the introduction of the AEC, Thai businesses have only two choices. One is investing or trading abroad. The other is adapting to be able to benefit, Benjarong said.
