Eric Loh

Dumb and dumber finally meet.

Deputy Finance Minister was on CNBC yesterday and made that quite clear that Thailand will not be a place for cheap labor and will not mind seeing companies that came here due to low wages moving to neighbouring cheaper countries. I have to agree with that policy that Thailand need to concentrate on higher value production to move away from the middle income trap. But we also need better education and vocational reforms to match this new policy.

Hi Eric,

It's difficult to a agree with the Deputy Finance Minister as a matter of practicality.

One could argue that Thailand has some deep structural problems that it has not yet addressed. Some of the country's foundational culture (of which most are deafeningly proud) is based on distinct social and class hierarchy that has nothing necessarily to do with achievement. A society like Thailand which is deeply feudal but nicely wrapped in a thin veneer of modernity CANNOT avoid the middle income trap. Indeed, the traditional power structure RELIES on the middle income trap.

To move up the value chain, Thailand can only be competitive if the traditional elite share power and wealth and educate and empower the rest. The country needs a strong, reasonably educated middle class.

So, while the Deputy Finance Minister, as many in Thailand, knows all the right words to say, the country is at any moment in time at least 1 generation away from any meaningful change.

There simply are not enough Sino-Thai, educated abroad rich kids to leave the country competitive. Where are the initiatives from the elite (many of whom are exceptionally wealthy) to build world class education facilities and modernize the country?

There was just a report yesterday that Thailand has among the LOWEST worker productivity of the 60+ countries surveyed. Among the LOWEST English (as a non-native) language ability in the world.

Tough to imagine them overcoming these structural challenges with any efficiency. They need to change the meaning of what it means to be Thai and Thainess. That will be a VERY PAINFUL awakening for the entire country.

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Sanuk Out, Hard Efficient Work in

Your points very valid. 0.1% of these traditional elites and the super rich owns 46.5% of the country total assets. The problem is that there is very little tricky down of their money to the society. Most keep their wealth outside the country and they have strong lobby to ensure laws keep protecting their wealth. It's this wealth disparity that allowed to continue for years that creates the conditions for the collapse of democracy or worse if social cohesion further weakens.

The problem lies in the poor taxation system that allows the supper rich to evade and dodge taxation. Land & property tax, inheritance tax have been talked about but no government has the fortitude to implement because of strong lobby against. Unless we have a strong progressive taxation system and close loopholes to prevent the super rich from shifting funds, nothing will be tricky down to the economy.

Thailand has been fortunate that we attracted huge amount of foreign investment in the past that brings in revenue for re-investments in much needed areas. Now even FDI has dried up and we will suffer the consequences for years to come. One thing we don't need is political instability especially a coup.

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Deputy Finance Minister was on CNBC yesterday and made that quite clear that Thailand will not be a place for cheap labor and will not mind seeing companies that came here due to low wages moving to neighbouring cheaper countries. I have to agree with that policy that Thailand need to concentrate on higher value production to move away from the middle income trap. But we also need better education and vocational reforms to match this new policy.

Abducted or arrested? Isn't there an arrest warrant on his head?

Arrested by police, ok. Abducted by military, not ok. See the difference. Maybe not.

The government is blowing the top off the budget deficit and the next government will have to bear with the high debts. Parliament is where the accountability is being question but not now. It's spending in the dark with little transparency.

At least there is some transparency.

Where is/was the transparency in the rice (non) budget under the PTP?

Transparency was in full displayed with placards and figures in Parliament sessions. Not quite the same as the NLA now.

When Mr Pichai was released from detention he spoke publically about his "morale support for the government in solving the countries pressing problems"

Who left those problems? funny how all of a sudden accountability seems to have been lost in this story

Decades of coup and interference of the Army in the politics maybe....

people say power is like a drug , It must be so, it is prevalent in the withdrawal of such power in Thailand always rearing its head,

Like drug, they keep coming back for more. It was all so easy 18 times before.

Fiscal 2016 expenditure budget was set at 2.72 T Bt which is 2.9% deficit from 2.5% previous year. With a revenue forecasted at 2.4 T Bt which is highly questionable to achieve and the subsidies, additional budgets will stretched the treasury thin. Of course the government can borrow or issue bonds but will increase the debt to GDP level and possibly credit ratings. This can lead to higher cost of borrowing and placed extra burden in our already troubled economy. We are heading towards unknown territory and doesn't looks good.

I have heard that rubber farmers are now cutting their young trees at 13-15 Baht per kilogram to earn some extra money. These are just 6" diameter which I presumed to be about 10-12 years. When that dries up and the meagre amount by the government not really helping much; we can expect the rubber farmers putting more pressures on the government very soon. The band-aid will not last too long.

The government is blowing the top off the budget deficit and the next government will have to bear with the high debts. Parliament is where the accountability is being question but not now. It's spending in the dark with little transparency.

Sorry state of the country when one man makes arbitrary decision based on his mood. Human rights in his palm of his hands and he violated all.

Slim pickings for a group here nowadays that they have to bring in an off topic character to sustain their existence in the forum.

Brave man. Need more of them in Thailand.

We need such brave man in Surat Thani. What ever happen to the case over forest illegal encroachment on a mountain in Koh Samui by Suthep's son in 2012. Case went limp and cold.

Well, he's PM and he has to adapt to a changing situation. Just like other government adjust their budgets because the oil revenues dropped. No choice. A government must be flexible enough to react to unforseen market events and if possible find the reservations within the National Budget to stay on the aimed at deficit/surplus and only if no other possibility allow the deficit to increase.

Furthermore 'he' doesn't lose anything. His cabinet agreed on a subsidy with a budget of 4.5 billion Baht. Even if only half will be lost, that's only 2.25 bilion Baht. That's acceptable for a subsidy as all here know subsidise cost money in order to help some desperate groups of the population.

Yep, he's certainly desperate to help his "poor" mate Suthep.

Its the principle that counts with (alleged) corruption not the amount. You are flogging a dead horse trying to convice people there is a difference because he is so "honest".

Now you've lost track I fear. Here we discuss the new subsidy which will see up to 100,000 tonnes of rubber sheets bought for a price of 45B/kg.

That has no relation with Ms. Yingluck's case in court as Sawasdee tried to suggest and it would seem you as well.

Well now you are putting words in my mouth. I never mentioned the legitimate Prime Minister. I am simply saying small corruption looks exactly the same as big corruption when you are trying to convince people you are the holy grail of whiter than whites.

My excuses, my dear chap. I assumed your comment was related to the topic. Of course my fault I didn't realise you're talking about other things. Excuses, three times

Is that "sorry 3 times". Good on you that you on track with the latest catch phrase.

Meechai is trying his level best to sneak in the outside pm in the charter. I am sure the Dem Party and Suthep will love that clause.

haven't these people realised that Thailand will not put up with their thieving abuse and violence any longer

They'll win every free election Thailand has in the foreseeable future.

What exactly do you want 'these people' to realize?

That's what the Shin PR team try and claim.

Thaksin so wants the Shins to be like the Lees, Kims, Maros and Hun Set families. But, I think more people than you think have realized what corrupt aresholes they really are.

Leave Lee alone. He brought prosperity and lifted Singapore from a crime filled backwaters to a developed country. His soft authority is the right formula for that early period troubled by communism and militant trade union. Rest of your list, I have no comment.

Your comment trying to draw similarity with Thaksin is out of pure hatred of the man and makes no sense when the military hold sway to every political events and will bring out their guns to seize power or maimed opponents for the smallest of reason. Silly comment.

Stop media intimidation and law suits and let the media report whether there are any significant progress. Government reports just don't cut it nowadays.

If Meechai is so tough on corruption than he should have the moral conviction to include the worst kind of corruption that is power and make coup unconstitutional and treasonable. Or he is just another fake writing the charter on the behest of the elites.

It has been well known worldwide: those who can't do, teach!

It's also a well known worldwide that those who knows nothing should keep silence. Worldwide is quite a stretch even by your standard. Teaching is one of the most respected and sought after profession in many Asian and European countries. The entry levels for teaching are high and very selective.

Someone must have whispered to Prayuth that these guys from Thai-Health actually supported the coup. So he said sorry 3 times.

lovely to see that so many decent people are not intimidated and come out to wish her well...

for one who is intelligent, often well balanced, and I dare say a decent person, I find it odd that you defend the pretty of a very dubious clan who was no more than her criminal brother's latest stooge.

An actress, and a pretty good one on occasion, those crocodile tears; but prone to gaffaws like being caught bursting out laughing after crying without realizing the camera was still on. An accomplished liar who probably does believe their own PR that she's never ever done anything wrong ever. Had she achieved the slight of hand and got her brother back whitewashed of all convictions, outstanding court cases and charges associated with bail jumping, I dread to think what would have happened.

You also said that she will fled like her brother and that didn't happen. Guess that puts what you wrote in the category of BS.

The PDRC has close link to the military. Why is that news. We all know that. We also know that they have similar mission to rid Thaksin regime. Why deny when it is all so obvious. Final chapter is now on trial and mission accomplished.

One thing is clear that the days of small rubber holders who form the majority of suppliers are numbered. The cost of producing rubber in Thailand has been on the rise over the last few years. Labour, chemical, transportation, land and borrowing costs are quite daunting for small farmers. Some big rubber producing and processing companies like Thai Hua Rubber has already strategized well and moved over to Laos and Cambodia. Their business model is to have the plantations outside Thailand and concentrate on trading and manufacturing plus a healthy dose of R&D. The government should realize this and formulate strategies along this model and stop encouraging the farmers by subsidies which only harden their mentality to refuse change.

Something doesn't have to be false to be defamation in Thailand. Idiot face thing.

Will the Junta never tire of bringing negative international attention to itself?

Do you realize that the commissioner of royal Thai police is not the junta right?

Well do consider this and judge for yourself whether he is connected to the junta. Pol Gen Chaktip is the lest senior of all the 5 deputy police chiefs who were candidates for the top post. However he has the closest ties with key military officers and good relationship with Dep PM Prawit, who is seen as a mover and shaker of the coup government. When meeting of the board to select the position, Prayuth was conspicuously absent and Prawit had free rein on the selection.

Wtach this space for more demands from the rubber farmers now that they got his attention and know that this guy will bend to pressures. 100,000 tons and buying at 45 Bt are just pittance to the farmer's woes. Just wait for the other farmers for other crops to join in and press for their demands. This guy attract problems with his poor leadership.

Some said that this PM has no leadership skill. I think they are right. Flip-flopping on policies even to the extend of usurping his own ministers policy decisions are really signs of poor leadership. The reason that he is faced with a deluge of daily problems stemmed from his poor leadership.