Clear strategies on economy and education crucial: experts

They said the first two factors were crucial if the country wanted to reach its true economic growth potential of 4-5 per cent next year, while the best way to achieve a new way of thinking was through education reform.
Speaking at a seminar on Thailand’s economic outlook arranged by the Executive MBA Association of Kasetsart University, Somphob Manarungsan, rector of Panyapiwat Institute of Management, said the country must re-discipline, rebalance and reform in order to grow in the next period.
Meanwhile, good budget management is also essential since the government budget for the upcoming fiscal year is only 2 per cent more than this year’s level.
He said the government’s 2015 budget was not concentrated on investment, as 65-70 per cent of the total was a non-economic budget that was not focused on the development of the economy.
Somphob suggested that the government set a priority by introducing economic policies that captured the eye of both Thais and the international community.
They should be concentrated on improving trade and logistics connections with mainland Asean countries such as Cambodia, Laos, Myanmar and Vietnam (CLMV) ahead of the implementation of the Asean Economic Community, he said.
The combined gross domestic product of these four countries amounts to 66 per cent of Thailand’s GDP, or around US$260 billion (Bt8.37 trillion), he pointed out.
He said there were many sectors in which Thai companies could exploit CLMV countries’ growing demand, such as convenience stores, motorcycles, electronic products, consumer products, agriculture machinery, industrial machinery, and construction.
Reform is also expected in special trade zones, while new cities will be established within the region, he added.
Chen Namchaisiri, vice chairman of the Federation of Thai Industries, said the Kingdom needed a clear overriding economic strategy, such as Malaysia’s plan to become a high-income economy by 2020 or Singapore’s goal of becoming a global financial hub.
The country right now does not have a clear goal “and we are not using the resources that we have to the full potential, since Thai people lack the mindset to do so,” he explained.
Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities, said education reform was needed, as “the new generation represented the new hope for a new mindset in entrepreneurship”, and most successful operators and businesses have morals and loyalties that need to be instilled from school level onwards.
Kanit Sangsubhan, chairman of the Fiscal Policy Research Institute Foundation’s academic committee, said the economy could achieve growth of 4-5 per cent next year, as forecast by private and state research houses.
However, this is only achievable if the political atmosphere is stable and the government takes the lead in terms of investment, especially on the planned mega-infrastructure projects, he added.