Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Thailand News  >>   Economy  >>   Thailand needs change to compete
NEWS UPDATES Asean Affairs           22   July  2011

Thailand needs change to compete

Related Stories

July 6, 2011
Business opposes 300 baht Thai minimum wage

July 1, 2011
Thai bank governor cautions on fiscal crisis

June 30, 2011

Thailand's economic outlook expected to hold

June 22, 2011
Thailand economic group challenges election giveaways

June 21, 2011
Thai organizations call for end to violence

June 9, 2011
Thai consumer confidence rises

June 8, 2011
Government contains credit growtz

Reforms in strategic sectors and education are needed for Thailand to maintain competitiveness with other regional economies, as the new government's policies threaten to make the country less attractive to foreign investors, say business leaders.

Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand (JFCCT), said Thailand is slipping regionally in sectors other than manufacturing and tourism.

Thailand has not taken steps to boost its capacity and capabilities in strategic sectors to capitalise on regional economic integration when the Asean Economic Community (AEC) starts in 2015, he said.

"Relevant agreements under the AEC framework targeted allowing 51 percent foreign equity in all service sectors by the end of 2010, but there appears to have been little progress as far as Thailand is concerned," Mr. von der Luehe.

"We see competing economies moving ahead of Thailand and thus attracting capital and skills in important sectors."

Mr. von der Luehe pointed to Malaysia, saying it had moved very quickly in opening up its service sector.

Thailand slipped from 16th place to 19th out of 183 countries surveyed for the World Bank's "Ease of Doing Business" report, but to start a business, it ranks a very poor 95th, he said.

Hiking the daily minimum wage to 300 baht as promised by the Pheu Thai Party, which won a majority in the July 3 general election, will make Thailand less attractive to labour-intensive firms.

Increasing the minimum wage to 300 baht would be acceptable if the government ensured productivity was raised too, said Mr van der Luehe.

"Otherwise, we'll have to pay more and see costs increase without getting anything in return," he added.

Mathew Verghis, the World Bank's lead economist, said Pheu Thai's proposed corporate income tax cut to 23 percent from 30 percent is unrelated to the wage hike.

Thailand needs to open up its service sector, which would largely involve amending the Foreign Business Act, and reform its education system to keep pace with regional competition, he said.

Prasarn Trairatvorakul, governor of the Bank of Thailand, said 2011 will be a year of normalisation for the Thai economy in several regards.

"Moving ahead amid tough global competition will mean looking beyond what is merely normal," he said.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below
Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code



 
Today's  Stories    22  July  2011 Subsribe Now !
• Asean foreign ministers continue talks
Subcribe: Asean Affairs Global Magazine
• Cambodian rail link to Vietnam proposed Asean Affairs Premium
 • Energy firms reject Indo “new” deals
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

 
 • US-ASEAN Business Counci meets in Malaysia
 • Gloria won’t go to jail
 • Singapore raises inflation forecast
 • Thais don’t take to migrant labor
• Thailand needs change to compete p

Asean Analysis    22  July  2011

Advertise Your Brand
• Concerns grow about Thai economic plans Sponsor Our Events

Asean Stock Watch    22  July  2011 

 
• Asean Stock Watch-June 22 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com