THAILAND IS urging Asean countries to make use of the connectivity created by the government's policy to invest in overland infrastructure and special economic zones (SEZs) in border areas, while the private sector pointed out that the greatest difficult
“If the Asean countries become one, then transport will become important to them,” Transport Minister Arkhom Termpittayapaisith told the Asean Business Forum yesterday.
The forum organised by the Thailand Management Association ends today.
As a keynote speaker on “Asean Physical Connectivity: A Key to Regional Integration”, Arkhom said all Asean countries should think of how to stay together amid the new normal of slowing economic growth.
Those countries should help create more value in terms of getting connectivity within the region for the sake of their economies. Both terrestrial and marine transport systems are the key to regional integration.
As for Thailand, the government has pushed for many infrastructure projects, especially those that enable the linkage of the regions’ economies, he said.
Since the country had never invested in infrastructure for years, it is now promoting the four plans covering road, rail, air and sea transport modes, Arkhom said.
Many projects are under study and development such as the double-track railway systems to be lined up along the economic corridor linking China’s southern areas with Malaysia and Singapore via Thailand, and the corridor that will connect Myanmar with Vietnam via Thailand and Laos.
After all the transport infrastructure projects are completed, mutual rules and regulations will be needed to facilitate the flow of people, trade and capital within the region, he said.
“We have to think of how to create and how to use infrastructure for individual countries’ value chains in industries.”
The Thai government recently launched an incentive package for the private sector to set up operations in the 10 SEZs, he said.
During a panel session on the same topic, Nithi Pattarachoke, managing director of SCG Logistics Management, said companies should look beyond physical connectivity as there were a lot of things challenging them, especially human capital, technology and equipment.
The most difficult part of doing business across the region is developing human resources, as few of the company’s workers want to work outside the country.
“Every country should look at benefits that can be shared with other Asean countries ... seeing itself as a single base to serve Asean as a whole market,” he said.
Yasushi Negishi, director for Thailand at the Asian Development Bank, said the advanced countries like Singapore, Malaysia and Thailand should narrow the economic gap within Asean by helping Cambodia, Laos and Myanmar connect more effectively.