FDI decline will hit wealth: expert

Speaking at the SCB Economic Intelligence Centre (EIC) annual economic conference on “Focusing on strategic game plans amid national reforms”, Vichit Suraphongchai, chairman of Siam Commercial Bank’s executive committee, warned that lower FDI would lead to lower technology transfer to the country, while research and development is not enough to support competitiveness. As a consequence of the country being unable to secure the FDI, wealth in the country is expected to decline in the next five years.

From 2008-13, FDI in Thailand dropped to 20 per cent from 39 per cent during 2001-07, with foreign investors flocking to neighbouring countries.

“We must pay attention to developing skilled labour, as this could help sustain the country’s wealth,” he said.

Boonchai Chokwatana, chairman of Saha Pathanapibul, said that education is the biggest problem for the country as educational institutions are supplying labour that does not match the demand of the market. Many retailers have to build their own educational institutions to supply human resources for their businesses. Sahapat is building its own retail institution to ensure it will have enough human resources supply to the company, he cited as an example.

He said that Thai operators still enjoy domestic demand, as a result several companies are not preparing themselves to deal with the Asean Economic Community (AEC). He suggested the creation of a national committee to set the strategy and motivate Thai operators to think outside the box.

Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, said the country is in the stage of national reforms, and the private sector should this time change its mindset in doing business.