Not enough done to ensure a sustainable future

If you spend time at home, you must have noticed that when rain falls during the day, birds frantically chirp as they hurry to seek refuge. If they can’t find enough food before the rain, their thoughts must be how to fill up their stomachs. 

This thought is shared by small vendors in markets. Rain leads to low traffic of buyers, but the overheads are the same as ever – with rents and transportation costs. Unlike the birds, they have installments to pay. Now, for a motorcycle, the daily installment could be Bt52. Then there are installments for TVs and refrigerators. It’s obvious that many have not prepared for retirement. They are passing the days just like the birds. Humans are the most intelligent species on Earth, but many of us are still living like cavemen thousands of years ago.

Fortunately, not all of us are in such an unfortunate situation. Many in the urban middle-class are able to afford nice homes and cars, with a proper retirement plan as well as savings to finance their kids’ education. As far as they can see, their family lines will continue on a stable path.

Similar lessons can be applied to the corporate world. Many businesses are just like the birds and small vendors, working hard to secure orders but having no time or resources to devote to long-term plans.

At a seminar at Sasin Graduate School last week, when asked if they see more opportunities than challenges arising from the advent of the Asean Economic Community in 2015, most participants were silent. That says everything. Opportunities are there, only if you are ready to move forward with resources – human capital and financial backup. It is hard for small businesses that are struggling at home to even foresee any opportunities abroad.

The mood is different when it comes to big corporations like Siam Cement Group or PTT. With resources at hand, they are on a shopping spree to establish a strong presence in the AEC and beyond.  Just a few individuals are born into rich families, ready to finance their activities. RTesources have been built over time, through strategies and trials and errors. A strategy that promises profits today does not guarantee that it will continue to work in the long term, perhaps 10 years from now.  

To Kan Trakulhoon, chief of Siam Cement Group, who appeared at the Stock Exchange of Thailand’s CEO Forum last week, it is more important than ever that CEOs lay down plans for corporate sustainability, not just profitability for today. To him, the foundation of success lies in human capital and technological advancement that can be achieved through extensive research and development. With the two elements in place, the company can move confidently into the future. 

Nations are falling to the same fate. Some countries prosper, drawing capital from global investors, while others look on with envy. Yet, things can change swiftly.  After the two world wars, the US rose to stardom in economic terms. Europe regained its strength via integration, which later turned out to be poisonous. South Korea, which was hurt as much as Thailand after the “Tom Yum Kung” crisis, saw a vigorous resurrection. In June, despite global chaos that is hurting Thailand’s exports, the country saw its trade surplus hit a 20-year high at US$4.9 billion. (For the sake of comparison, Thailand’s annual export income is slightly above $200 billion). Southe Korea attributed much of its strength to extensive R&D, something that underpins US economic strength. (Ever wonder why Apple can inspire so many around the globe?)

Thailand in comparison is like the small vendors in markets. So many governments have promised to invest more in R&D, but all that evaporates as their populist policies come first in terms of budget allocation. Thailand wants to be an investment and logistics hub in the Asean Economic Community, but as results show, we are investing in the wrong way in terms of human capital. Yes, “let them eat tablets”.

A delegation of Thai traffic police is reportedly visiting South Korea to observe traffic management in Incheon. South Korea is also a stop where officials from various countries including Myanmar visit to take training courses on political and economic development. 

Yes, we also have something to offer, if any country wants to send delegations here. How about the natural evolution of somtam, the spicy northeastern salad, developed for the palates of all Thais as well as foreign tourists nationwide?