Forum calls for anti-graft drive in view of AEC

There is also an urgent need to build competency among the young generation, in terms of education and mindset, it was told. 

In the “Moving Towards AEC 2015... Chances and Challenges” forum, Surin Pitsuwan, chairman of the Future Innovation Thailand Institute, shared his views on the issue and offered insights into how to take advantage of the opportunity presented by the AEC with 250 business leaders in Bangkok.

The event was organised by Neo Target, a leading public-relations agency. 

“It is well-understood that corruption in Thailand accounts for 30 per cent of state investment. This has become a reputation that has a negative impact on foreign investment,” Surin, a former Asean secretary-general, suggested. 

Apart from this problem, Thailand also has faced a series of political conflicts for the past 15 years, causing economic uncertainty, poor business sentiment and weak consumption, he said. 

“These factors are now becoming part of Thailand’s reputation,” he added.

The AEC is set to come into force at the year’s end, with integration leading to a common market, a common production base and the free flow of products, capital and labour in the region, serving increasing demand from its population of some 600 million. 

With its strategic location, Thailand is in a good position to take advantage of the formation of the AEC, he said. 

However, Surin suggested that if the perception about corruption and internal instability remained unfixed, Thailand would be less attractive to international investors, compared to neighbouring countries like Vietnam. 

Another issue concerns the low competency of Thai entrepreneurs and the young generation to cope with challenges once the AEC comes into effect. 

“Education and the learning system must be reformed in a way that helps change the young generation’s mindset and attitude toward dealing with new challenges abroad, rather than being in their own comfort zone at home,” he added.

“We must strive to develop multi-functional personal and language skills and learn to adapt to change in a timely manner, so that they can enhance their competitive edge in the Asean market and globally,” he stressed.

Referring to similar models of economic integration, he said intra-regional trade played an highly important role for member states.

In the European Union, intra-regional trade accounts for 75 per cent of the bloc’s total trade, while North America’s intra-regional trade accounts for 60 per cent of its overall commerce. 

Although Asean’s intra-regional trade is currently about 25 per cent, this figure is expected to rise following economic integration, said Surin. Thai entrepreneurs should be ready for business expansion in neighbouring countries, in order to cash in on this trend. It is not a heathy attitude if they prefer to operate their business only at home,” he added. Vannee Leelavechbutr, founder and chief executive officer of Neo Target, told the forum that the formation of the AEC would be a significant step for Thai companies and business owners to compete on an Asean level.