Prime Minister: we want a sustainable future

SATURDAY, JUNE 02, 2012
Prime Minister: we want a sustainable future

I fully agree with World Economic Forum economist Thierry Geiger that improving labour productivity to catch up with the recent 40 per cent rise in minimum wages will be critical for Thailand to maintain its competitiveness.

 

The National Economic Social and Development Board’s reporting that the increase in wages in seven provinces has forced labour-intensive industries to rush to border zones to reduce labour costs, eg, in hotels, restaurants, cleaning, and security, 
where labor accounts for 27-33 per cent of total costs. SMEs face similar problems, as their costs will rise by 9-35 per cent when the new rates are in place nationwide in January 2013.
To prevent a rise in unemployment, including firms being pushed into neighbouring low-cost countries, the government must urgently boost productivity, so that workers are worth their increased pay, eg, training them to operate more sophisticated machinery, or reforming vocational education so that students are trained to supply industries where the demand is highest. Also, at 2.69 tons/hectare, productivity of Thai rice farmers now badly lags behind those of competitors, eg, Malaysia (3.38 t/ha), India (3.61 t/ha), and Vietnam (4.87 t/ha; 2007 Food and Agriculture Organisation data, the latest available). Their productivity must be boosted also, or else this backbone of our economy will be weakened and break as farmers leave for better-paying industries.
PM Yingluck/Thaksin have an unprecedented degree of popularity that gives them a rare opportunity to take the long-term view, and do the immensely difficult but vital tasks that we badly need, eg, reforming education away from rote memory and towards analysis and creativity, or emphasising research and development to sustain productivity increases. Also, nobody wants to invest where the rules change radically when a new government comes to power. Thus, Yingluck/Thaksin should focus on the reconciliation that comes from welcoming and understanding differing viewpoints, while emphasising accountability for one’s actions, following Sean Covey’s 7 Habits of Highly Effective People, one of which is “Understand (others) before seeking to be understood,” rather than just throwing money at problems.
PM Yingluck, lead us to a better tomorrow, but one that’s well-thought-out and sustainable.
Burin Kantabutra
Bangkok