Somkid underlines 3 areas of reform for Thailand to keep pace with neighbours

By PHUWIT LIMVIPHUWAT 
THE NATION

 

Somkid

 

Thailand will need to radically reform its economic structure if it wants to keep up with its fast-growing Asean neighbours, says Deputy Prime Minister Somkid Jatusripitak. 

 

He says the three top priorities are creating value for agricultural goods, promoting digital transformation and promoting the growth of secondary cities.

 

“Thailand has a dire need to acquire the ability to create more value for our agricultural goods,” Somkid told the “Thailand Economic Outlook 2019” dinner event organised on Monday by Krungthep Turakij, a sister newspaper of the The Nation. 

 

He said the low prices of agricultural goods were a chronic problem for the Thai economy. With 20 to 30 per cent of the total population working in the agricultural sector, the continuing low prices of agricultural goods is preventing people’s incomes from going up. This has in turn led to weak domestic demand in the country, limiting Thailand’s overall economic growth and transforming it into an export-reliant nation, he said.

 

“Instead of selling fine agricultural goods at low prices to foreigners to turn them into valuable products and sell them internationally at higher prices, Thailand should develop its own capabilities to create added value for our own goods and elevate the income of those within the agricultural industry,” Somkid suggested. 

 

The most promising method to add value to Thai agricultural products would be through processed fruits, he said.

 

The second critical structural reform would be transitioning from a traditional economy to a digitally driven one. 

 

“Thailand needs to promote the growth of digital industries. To achieve growth rate like China and Vietnam, we will need to turn ourselves into a startup nation and promote the use of digital platforms,” Somkid said. 

 

The digital age has lowered the barriers for entry into the market and given the small businessperson the chance to make it big within the market, he explained.

 

“The key advantage of having a digital economy is the low capital requirements of startups. Individuals with ideas and ambitions can now start their own businesses through a digital platform. This will lead to the rapid growth of startups within Thailand, creating innovative growth and putting Thailand at the forefront of the global market,” Somkid said. 

 

The third requisite economic transformation is to promote the growth of secondary cities through improved transport infrastructure and e-commerce.

 

“The Thai government has been investing heavily in high-speed railways to link cities like Bangkok, Hua Hin and Chiang Mai with secondary cities like Nan and Surat Thani,” he said. “This will improve tourism in these areas, leading to urbanisation, a key driver for economic growth.” 

 

The government plans to invest as much as Bt2 trillion in the country’s transportation infrastructure in the year 2019, he added.

 

Another method to promote secondary cities is through e-commerce, which would allow local goods in secondary cities to be sold nationwide and internationally. This would increase the business potential of these areas and propel the Thai economy, according to Somkid.

 

Somkid predicted GDP growth of at least 3.3 per cent in the fourth quarter of this year, and said he was certain the GDP growth for 2018 would be at least 4 per cent, perhaps higher. He cited the lull in the US-China trade war after the G20 summit as the key reason for his optimism, expecting Thai exports to continue to grow and push up the GDP figures. 

 

Meanwhile, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has predicted GDP growth of 4 to 4.3 per cent in 2019, chairman of the Thai Chamber of Commerce and Board of Trade of Thailand Kalin Sarasin said at press conference after the meeting yesterday.

 

He added that factors propelling the 4-per-cent growth would involve increased domestic spending and public investment as well as recovering tourism numbers. 

 

The committee maintains an 8 per cent export growth target for 2018, citing the new 90-day halt to the US-China trade war as the key reason. However, exports are expected to contract between 5 and 7 per cent year on year in 2019, with risk factors being the resumption of the US-China trade war and uncertainties surrounding UK’s Brexit. 

 

“Next year, Thailand will need to rely more on domestic demand to drive growth,” said Kalin. “We believe domestic spending and total investment for next year to be promising, and continue to predict a 4 to 4.3 per cent GDP growth in 2019.”

 

This is in light of the announcement of various government policies aimed specifically at boosting domestic spending. 

 

The JSCCIB also believes government spending and investment in various projects, such as infrastructure and the development of the EEC region, will boost the Thai economy in 2019, according to Kalin.

 

Another factor boosting the 2019 economy will be the upcoming election. 

 

“We believe the election period will boost domestic consumption, especially in the first quarter of 2019,” he said. 

 

“Furthermore, tourism is seeing signs of recovery after a slide in the third quarter,” Kalin said. 

 

Last month, the JSCCIB reported that in August, 867,000 Chinese tourists visited the Kingdom, down 11.77 per cent month on month. In September, only 648,000 visited, another 14.89 per cent fall month on month.

 

The JSCCIB also has plans to boost investment through capitalising on Thailand’s position as next year’s chair of the Asean summits. 

 

“We aim to cooperate with the Asean Business Advisory Council (Asean-BAC) to organise investment events in 2019,” he said. 

 

Up to 15 events have been planned by Asean-BAC for 2019, with the flagship events “Asean Business Awards” and “Asean Business and Investment Summit” to be held towards the end of next year, Kalin added. 

 

Source: http://www.nationmultimedia.com/detail/Economy/30359838

 

-- © Copyright The Nation 2018-12-05

 

An off topic post and a spam post have been removed.

3 hours ago, webfact said:

3 areas of reform

There's one area of reform that immediately comes to mind but Somkid's too nice a guy to tell his boss to do that.

More reforms to put in the too hard basket.

28 minutes ago, Oziex1 said:

More reforms to put in the too hard basket.

 . . . Too hard? . . . I think you mean in the 'impossible for the Junta Generals'. And whatever you do, don't mention reform of calendar planning, for things like elections . . . and coronations????. 'Generally useless' sums them up perfectly, I think.

Edited December 5, 20187 yr by Ossy
clarity

No mention of better English being taught.

  Education education education. Never in the minds of the elites 

 

The first acknowledgement, if I'm not mistaken, that Thailand is now a follower, rather then being a leader, something a few on TV have been saying for some time.

 

It seems to be supported by a number of individual projects - each of which appears to seek to demonstrate, not that Thailand is equipped to be a leader again, but to appeal to the voters ahead of the proposed elections, to believe in what must be considered to be yet more lies on behalf of the junta government.

 

I am not convinced that Thailand has the wherewithal to achieve any of the objectives that the quisling Somkid enumerates, and this is the largest 'sine qua non' problem that Thailand has now and extending forwards perhaps 20 years - skills and knowledge, or rather the predicted absence of them in anything like the numbers required in a 21st Century nation. Instead, Thailand languished in a mediaeval society, largely lawless and governed by the hyper-rich whose larcenous nature has been on open display for many years.

 

The reason for this skills shortage can be found in Thailands conviction, Thailand is a natural leader of the other (backward) nations in SE Asia. That fantasy has quite rightly, now been put to bed, and the glittering gold of the perennial wet-dream has been stripped away to reveal that not only did the emperor have no clothes, but the pretence that he once did has been shown to be a collective hallucination, driven by the propaganda of thoise whose rapacious greed meant that the man in the street was of no more value than the dust from a pair of shoes.

 

I wish Somkid luck, I really do - after all, I have chosen to live in Thailand - against the advice, I might add, of a number of people whom I now see, knew better than I did. Nevertheless, it is what it is, but I suspect that Somkid will fade away after a few notable failures, and it will quickly become a story of 'back to business as usual' as the landed barons press on in their quest of further plunder.

 

I don't honestly see that Thailand has the will or the latent leadership to undertake the purge and rebuilding that is now required. Prayuth certainly is not the answer, win or lose the election, he's already yesterday's man. When Prem and the toad go to their reward, Prayuth will be left standing, more or less friendless and motherless.

 

And the rice farmers will continue farming rice in 17th century style, mainly oblivious to the collapse of the wet-dream and interested only in their own self-esteem. As they do now, grandiose bragging by people like Somkid notwithstanding.

 

 

 

Great post Half light,problem is Thai's are so insular and uneducated about the rest of the world the vast majority do not know it even exist's and from children they have been fed this nonsense that Thailand is the greatest country in the world, the 'don't think to much' ,don't lose face attitudes ingrained in the culture don't help,most of them can think no further than what is the next thing i will eat. Honestly it's a miracle that they have actually got as far as they have.

26 minutes ago, marko kok prong said:

Great post Half light,problem is Thai's are so insular and uneducated about the rest of the world the vast majority do not know it even exist's and from children they have been fed this nonsense that Thailand is the greatest country in the world, the 'don't think to much' ,don't lose face attitudes ingrained in the culture don't help,most of them can think no further than what is the next thing i will eat. Honestly it's a miracle that they have actually got as far as they have.

 

True enough, and it is that which lies at the heart of the problem. Any population is largely what it has been made, and Thailand is no exception. The interesting questions are 'who made it thus?' and 'why was it made thus?'. The answer to these 2 questions lie at the very heart of Thailand's problems, and without resolving those 2 things, Thailand will continue to decline relatively spesaking, while it's more enlightened neighbours continue to forge ahead.

 

Thailand leaves itself vulnerable by it's own actions, to having its toys taken away as it is eclipsed by the other ASEAN nations. Pure and simple IMHO.

Edited December 5, 20187 yr by HalfLight

2 hours ago, marko kok prong said:

No mention of better English being taught.

Why limit the teaching shortcomings just to English. Ask your kid - in whatever language you're fortunate enough to communicate in - what he/she learned in Science, today . . . or Geography, History or Maths. What the kids come out of school with, after the typical waste of a day, is utterly shameful and, sadder still, there's a Minister of Education, lurking somewhere within Government House, who's sitting on top of all this mess, whilst his boss comes up with crazy remedies . . . like the de-centralisation nonsense, the other day.

 

Sorry, marko kok prong, I do get a bit carried away when the Thai lack-of-education hits the fan. A top-3 remedy need for me, any time.

Edited December 5, 20187 yr by Ossy
omisson

7 minutes ago, Ossy said:

Why limit the teaching shortcomings just to English. Ask your kid - in whatever language you're fortunate enough to communicate in - what he/she learned in Science, today . . . or Geography, History or Maths. What the kids come out of school with, after the typical waste of a day, is utterly shameful and, sadder still, there's a Minister of Education, lurking somewhere within Government House, who's sitting on top of all this mess, whilst his boss comes up with crazy remedies . . . like the de-centralisation nonsense, the other day.

 

Sorry, marko kok, I do get a bit carried away when the Thai lack-of-education hits the fan. A top-3 remedy need for me, any time.

 

In my opinion, there is no sense in which the state of the Thai education system is coincidental or accidental. The landed barons understood decades ago that if they keep the Thai peasntry under-educated and under-nourished (hence under-intelligent), than they would be guaranteed an endless supply of cheap labour who were happy to do the work that the Sino-Thais just wouldn't do, and do it cheaply.

 

I don't think they realised that their greed would kill the goose that laid the golden eggs.

 

Just as the Chinese didn't realise that they could become a world power instead of just some Marxist-Leninist experiment by a bunch of people happy to kiss Mao's bottom in order to enrich themselves at the expense of the people.  Rather like Thailand in a way, but then Thais were always good at copying others and not so good at thinking for themselves - courtesy of their own educational policies.

 

 

Edited December 5, 20187 yr by HalfLight

3 minutes ago, HalfLight said:

 

In my opinion, there is no sense in which the state of the Thai education system is coincidental or accidental. The landed barons understood decades ago that if they keep the Thai peasntry under-educated and under-nourished (hence under-intelligent), than they would be guaranteed an endless supply of cheap labour who were happy to do the work that the Sino-Thais just wouldn't do, and do it cheaply.

 

I don't think they realised that their greed would kill the goose that laid the golden eggs.

 

Just as the Chinese didn't realise that they could become a world power instead of just some Marxist-Leninist experiment by a bunch of people happy to kiss Mao's bottom in order to enrich themselves at the expense of the people.  Rather like Thailand in a way, but then Thais were always good at copying others and not so good at thinking for themselves - courtesy of their own educational policies.

 

 

Yikes, HalfLight, you're on fire, today, but I dread to think that your 'landed barons/keep 'em ignorant' theory may hold water . . . that would be scary.

3 areas of reform:

1. No corruption 

2. Positions by merit

3. No kreng jai

4 minutes ago, Ossy said:

Yikes, HalfLight, you're on fire, today, but I dread to think that your 'landed barons/keep 'em ignorant' theory may hold water . . . that would be scary.

 

I think it's true; whether or not it is will be shown over time, but I believe it is the only way to explain what is known. I didn't build the mountain and I honestly don't know who did. I can only recognise that it's there and look for explanations that fit with the psychology of people.

 

 

7 minutes ago, Artisi said:

3 areas of reform:

1. No corruption 

2. Positions by merit

3. No kreng jai

 

You missed the last one:

 

4. No happen.

 

Sadly. The Thai people certainly deserve better than what they've been given. And they deserve better than the mystico/religious mumbo-jumbo they've been ordered to accept.

 

Come back as a fruit-fly if you don't do what I tell you. This is the 21st centurty, you'd have thought people would've seen through the unending quest for power by the religiously ambitious, but it does appear they haven't

 

 

Edited December 5, 20187 yr by HalfLight

2 hours ago, marko kok prong said:

No mention of better English being taught.

There is more to this world than English, although it's a great advantage to speak and understand and should be and needs to be improved - however, many  country's survive very nicely without it spoken by the whole population. 

8 minutes ago, HalfLight said:

 

You missed the last one:

 

4. No happen.

 

Sadly. The Thai people certainly deserve better than what they've been given. And they deserve better than the mystico/religious mumbo-jumbo they've been ordered to accept.

 

Come back as a fruit-fly if you don't do what I tell you. This is the 21st centurty, you'd have thought people would've seen through the unending quest for power by the religiously ambitious, but it does appear they haven't

 

 

True, but unfortunately...... 

10 minutes ago, Artisi said:

There is more to this world than English, although it's a great advantage to speak and understand and should be and needs to be improved - however, many  country's survive very nicely without it spoken by the whole population. 

 

At the moment.

 

I won't but you probably will see the day when speaking Thai and other non-English languages is the equivalent of speaking Saxon after Willie the Conq threw his Hastings party.

 

The world is changing - still changing, Thais have enough of a problem accepting that without being told it's OK not to bother with learning English, and 'surviving nicely' now isn't the same as enabling the human race to evolve. Thailand for example (characterised by its failure to embrace English) is evolving itself back to the stone age.

 

Ye Gods and little fishes, nobody gives a rat's ass what Thailand thinks now, what it'll be like in 50 years is a whole different thing. Personally, in 50 years time, I believe Thailand will be pretty much on a par with Angola and Zimbabwe now. Somkid's self-serving exhortations notwithstanding.

 

 

Edited December 5, 20187 yr by HalfLight

6 minutes ago, Artisi said:

True, but unfortunately...... 

 

Indeed.

38 minutes ago, Ossy said:

Why limit the teaching shortcomings just to English. Ask your kid - in whatever language you're fortunate enough to communicate in - what he/she learned in Science, today . . . or Geography, History or Maths. What the kids come out of school with, after the typical waste of a day, is utterly shameful and, sadder still, there's a Minister of Education, lurking somewhere within Government House, who's sitting on top of all this mess, whilst his boss comes up with crazy remedies . . . like the de-centralisation nonsense, the other day.

 

Sorry, marko kok prong, I do get a bit carried away when the Thai lack-of-education hits the fan. A top-3 remedy need for me, any time.

Totally agree,we were talking about this at my local the other day,stupid parades,sport's day's ,teachers days,and holidays that seem to stretch into eternity,and then just a pinch,a hint of education thrown in.

8 hours ago, webfact said:

the continuing low prices of agricultural goods is preventing people’s incomes from going up.

The Bank of Thailand just reported that there was an increase in the income of Thai farmers of 3.9%, attributing the hike to agricultural activity. https://www.thaivisa.com/forum/topic/1071470-bot-reports-bright-economic-outlook/?utm_source=newsletter-20181204-0637&utm_medium=email&utm_campaign=news

What's the truth?

In the past increases in farm production doesn't mean increases in sustainable income (aka profit margin) due to inefficiency of agricultural operations and water management practices.

8 hours ago, webfact said:

The JSCCIB also believes government spending and investment in various projects, such as infrastructure and the development of the EEC region, will boost the Thai economy in 2019

Firstly, government "spending" has been largely driven by borrowing from foreign countries, notably China. External Debt in Thailand averaged 105166.65 USD Million from 2005 until 2018, reaching an all time high of 154162.40 USD Million in the second quarter of 2018. https://tradingeconomics.com/thailand/external-debt

Secondly, the average Foreign Direct Investments from 1997 until 2018 never exceeded its high since December of 2013. https://tradingeconomics.com/thailand/foreign-direct-investment

Thirdly, the collection of foreign investments for the EEC region started in 2017 with private Japanese investments and unlikely to generate revenues until after 2020 when infrastructure and facilities yet to be designed and built . Provided that Thailand can provide the necessary initial 0,000 skilled workers that Japan says is lacking in Thailand to operate EEC industries.

Deputy Prime Minister Somkid does well every year since the 2014 coup to identify Thailand's economic challenges. But viable and sustaining solutions to take Thailand out of the "middle income trap" and crippling low-income agricultural industry are still missing.

3 minutes ago, Srikcir said:

The Bank of Thailand just reported that there was an increase in the income of Thai farmers of 3.9%, attributing the hike to agricultural activity. https://www.thaivisa.com/forum/topic/1071470-bot-reports-bright-economic-outlook/?utm_source=newsletter-20181204-0637&utm_medium=email&utm_campaign=news

What's the truth?

In the past increases in farm production doesn't mean increases in sustainable income (aka profit margin) due to inefficiency of agricultural operations and water management practices.

Firstly, government "spending" has been largely driven by borrowing from foreign countries, notably China. External Debt in Thailand averaged 105166.65 USD Million from 2005 until 2018, reaching an all time high of 154162.40 USD Million in the second quarter of 2018. https://tradingeconomics.com/thailand/external-debt

Secondly, the average Foreign Direct Investments from 1997 until 2018 never exceeded its high since December of 2013. https://tradingeconomics.com/thailand/foreign-direct-investment

Thirdly, the collection of foreign investments for the EEC region started in 2017 with private Japanese investments and unlikely to generate revenues until after 2020 when infrastructure and facilities yet to be designed and built . Provided that Thailand can provide the necessary initial 0,000 skilled workers that Japan says is lacking in Thailand to operate EEC industries.

Deputy Prime Minister Somkid does well every year since the 2014 coup to identify Thailand's economic challenges. But viable and sustaining solutions to take Thailand out of the "middle income trap" and crippling low-income agricultural industry are still missing.

 

 

And the wet-dream trundles right along. It'll be alright on the night. Maybe.

 

Micawber economics: 'something will turn up, but for now we'll just move these deckchairs around a bit and trust those nice soldiers not to let any icebergs get too close.'

 

3 hours ago, marko kok prong said:

No mention of better English being taught.

Or less air pollution, or noise pollution, keeping up with the neighbours already?

3 hours ago, Eric Loh said:

Education education education. Never in the minds of the elites

Indoctrination, indoctrination & indoctrination is in their minds though, why on earth would they want a population that can think? ????

12 minutes ago, HalfLight said:

Thailand for example (characterised by its failure to embrace English) is evolving itself back to the stone age.

Yes, we have a capital city where nearly all signs (road, transport, hotels, etc) are bi-lingual - Thai and English, not Thai and Chinese or Urdu, but English - and yet we are aware of this stubborn refusal to take English seriously as a subject for learning. Whilst 'mulling' your 'keep 'em stupid' theory, I, too, have an equally provocative theory.

I call it the concrete, cabs and cable contagion and its based on my growing conviction that Bangkok is choking itself to death by failing to keep abreast of its impressive 21stC transport and building infrastructure - rather like your 'return to dark ages' fears - by, for example, (1) allowing the city's roads to go un-planned and un-regulated, apart from thousand upon thousand of traffic lights, until today's gridlock has reached, possibly, the point of no return and (2) allowing the Sky-train's platforms to be like animal sheds, simply because management says it 'can't afford' more (or longer!) trains and (3) you exit the one-time-world-beating Baiyoke Sky Tower, only to have to step over wind-blown litter from the street-side markets that have been allowed to surround it and - and I'm nearly done, now - (4) you allow electricity and comms service providers to practically hogtie the city with cables that are only there because of a lethargic refusal to install cable ducts when putting the streets down. There are plenty more failings, I'm sure, but these 4 all have the word 'allow' and that, to my mind is the very root of Thailand's many shortcomings. Too many compromises are allowed under the euphemistic and so distinctly Thai mai pen rai response to problems until they reach impossible proportions. And it's probably just the same, behind the door marked MoEd, since only an energetic and impassioned educator could hope to make any difference to our favourite hobby-horse . . . a Thanathorn clone, maybe.

 

I believe that, once beyond the threshold of Government House's door, this air of 'don't worry chaps . . . we'll never be able to fix this mess but, provided Somkid & Co can keep the crowds at bay, we'll get by.'

 

Be it education, health, welfare, employment, transport, law & order . . . no matter what department of Thai governance you get saddled with, you've got one hell of a job on your hands. But, mai pen rai . . . there's always tomorrow, isn't there, Mr Somkid.

9 minutes ago, Ossy said:

Yes, we have a capital city where nearly all signs (road, transport, hotels, etc) are bi-lingual - Thai and English, not Thai and Chinese or Urdu, but English - and yet we are aware of this stubborn refusal to take English seriously as a subject for learning. Whilst 'mulling' your 'keep 'em stupid' theory, I, too, have an equally provocative theory.

I call it the concrete, cabs and cable contagion and its based on my growing conviction that Bangkok is choking itself to death by failing to keep abreast of its impressive 21stC transport and building infrastructure - rather like your 'return to dark ages' fears - by, for example, (1) allowing the city's roads to go un-planned and un-regulated, apart from thousand upon thousand of traffic lights, until today's gridlock has reached, possibly, the point of no return and (2) allowing the Sky-train's platforms to be like animal sheds, simply because management says it 'can't afford' more (or longer!) trains and (3) you exit the one-time-world-beating Baiyoke Sky Tower, only to have to step over wind-blown litter from the street-side markets that have been allowed to surround it and - and I'm nearly done, now - (4) you allow electricity and comms service providers to practically hogtie the city with cables that are only there because of a lethargic refusal to install cable ducts when putting the streets down. There are plenty more failings, I'm sure, but these 4 all have the word 'allow' and that, to my mind is the very root of Thailand's many shortcomings. Too many compromises are allowed under the euphemistic and so distinctly Thai mai pen rai response to problems until they reach impossible proportions. And it's probably just the same, behind the door marked MoEd, since only an energetic and impassioned educator could hope to make any difference to our favourite hobby-horse . . . a Thanathorn clone, maybe.

 

I believe that, once beyond the threshold of Government House's door, this air of 'don't worry chaps . . . we'll never be able to fix this mess but, provided Somkid & Co can keep the crowds at bay, we'll get by.'

 

Be it education, health, welfare, employment, transport, law & order . . . no matter what department of Thai governance you get saddled with, you've got one hell of a job on your hands. But, mai pen rai . . . there's always tomorrow, isn't there, Mr Somkid.

 

Good argument but all the examples given are symptoms, not the disease.

 

The disease is, as you note, 'mais pen rai', or as I like to say the same thing in English 'close enough is good enough'. Or as it really is 'I can't be bothered with doing my job when I have my image to enhance'. In Thailand, the managers manage courtesy of the staff, the staff are the ones really in charge, there just isn't evidence to the contrary, not that I've seen anyway - remember that staff can always play the corruption card. Staff don't like you, you're history, which is why managers are so poor.

 

Anyway, it isn't going to change: the old advice applies: "If the house is no good, everything is falling apart and nothing works, then burn it down and claim the insurance.'

 

Start with the soldier government.

 

 

 

Edited December 5, 20187 yr by HalfLight

23 minutes ago, HalfLight said:

Start with the soldier government.

OK,  I give in, but it's time I did some real work, anyway. One tomato, two tomato, three tomato, four . . . you know how the rhyme goes, but, shine on, there are 12 thousand of the buggers and it'll be pitch dark in less than 3 hours. Help me, someone . . . Somkid, even.