Promoting market competition, reducing monopoly only way to close income gap, study shows

[webfact]

Promoting market competition, reducing monopoly only way to close income gap, study shows

By The Nation

 

 

A recent study showed that most businesses in Thailand are in the hands of a few companies, which is causing a huge inequality of income and wealth, and the only way out is to promote market competition and reduce monopoly. 

 

Krislert Samphantharak, director and secretary of the Puay Ungphakorn Institute for Economic Research at the Bank of Thailand, led the study on “peeking into Thai business structure via shareholder information”. 

 

The researchers looked into 3.3 million items of shareholder information in more than 880,000 corporates and found that there were only 9,068 groups running businesses in the country. They also found that most of the businesses were concentrated among 13 business groups, each having more than 100 companies under its umbrella, while the remainder had only two or three companies in their group. 

 

A high-market concentration was also found in 10 businesses, namely liquor production, beer production, wholesale of beverages, wholesale of cigarettes, plastic manufacturing, paper packaging, gas production, cement production, brick manufacturing and sugar production. 

 

 

Krislert said this high market concentration has a direct impact on wealth and income inequality among Thais. A study in 2017 had also found that 500 persons accounted for 30 per cent of total profits in the Thai business sector and equities held by 500 people represented 36 per cent of the total book value of Thai businesses. 

 

 

The previous study and the latest are apparently in line with an earlier survey by Credit Suisse Global Wealth report, which found that Thailand has the greatest inequality in wealth in the world. 

 

Krislert, hence, suggested that Thailand needs to promote market competition to improve wealth and income inequality, and for this the government will have to promote new market entries, especially in terms of small and medium-sized firms. More effort should also be made to reduce market monopoly and promote new entrepreneurs, the study suggested.

 

 

Full story: https://www.nationthailand.com/business/30377426

 

-- © Copyright The Nation Thailand 2019-10-16

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[Dexlowe]

This only confirms what we already know. The other thing that we already know is that nothing will change - those business interests that control the country are too powerful to be challenged and too greedy to self-adapt. The master-serf relationship has always been part of Thailand's social and cultural make-up - it has been fortified in the past couple of years at the highest level, and that trend is continuing. Add to the mix the influence of China.

[jerojero]

The inequality and social class divide is truly staggering. And yet billionaire Generals and head politicians pontificate deep concern for the masses. Ya right.

[Creasy]

Sickening

[fruitman]

So after the new trade agreement with Europe the Thai won't protect their own beercompany families?

 

If so they'll get a very hard time because European beer is much better and if that's cheaper than Thai beer they'll all start drinking it.

[Jimbo in Thailand]

Ever wonder why all import consumer electronics products are so freakin' expensive here?  Ever wonder why choice is so limited with most stores carrying the exact same models at the exact same prices?  Now you know. ????????????

[ChipButty]

3 hours ago, jerojero said:

The inequality and social class divide is truly staggering. And yet billionaire Generals and head politicians pontificate deep concern for the masses. Ya right.

Im sure thats why they let the people keep killing themselves on the roads 554 this month alone

[ChipButty]

31 minutes ago, fruitman said:

So after the new trade agreement with Europe the Thai won't protect their own beercompany families?

 

If so they'll get a very hard time because European beer is much better and if that's cheaper than Thai beer they'll all start drinking it.

Most of my Thai friends will drink the European beers when it's available even cider

[Cadbury]

3 hours ago, webfact said:

Promoting market competition, reducing monopoly only way to close income gap, study shows

The lack of competition will remain. The election of PM Prayut and his Phalang Parachat Party has been stage managed by the PM's cronies and the ruling class elite for these monopolies to be protected.

[trainman34014]

The very rich intend to stay very rich at the expense of their 'subjects', so don't expect any rush to change things.

 

No freedom of speech and no freedom of choice keeps the masses subdued.

[bluesofa]

50 minutes ago, fruitman said:

So after the new trade agreement with Europe the Thai won't protect their own beercompany families?

 

If so they'll get a very hard time because European beer is much better and if that's cheaper than Thai beer they'll all start drinking it.

You mean the same as the Asean FTA?

When that came into effect, Thailand had to remove the import duty on Beer Laos. They did remove the import duty - and immediately introducing a 'special tax' on Beer Laos at exactly the same rate the import duty was set at, thus keeping the price exactly the same, while 'complying' with the FTA.

 

You think a European trade agreement will stop Thailand cheating?

[30la]

4 hours ago, webfact said:

A recent study showed that most businesses in Thailand are in the hands of a few companies, which is causing a huge inequality of income and wealth, and the only way out is to promote market competition and reduce monopoly. 

Bravo, you recognized it, but what changes? Look at the next step of the CP ...

[trainman34014]

5 minutes ago, bluesofa said:

You mean the same as the Asean FTA?

When that came into effect, Thailand had to remove the import duty on Beer Laos. They did remove the import duty - and immediately introducing a 'special tax' on Beer Laos at exactly the same rate the import duty was set at, thus keeping the price exactly the same, while 'complying' with the FTA.

 

You think a European trade agreement will stop Thailand cheating?

Best thing Europe could do is refuse to even talk about anew FTA unless Thailand drops all it's crazy Import Duty's on Foreign goods, like Cars, Wine Etc etc.   At the same time Europe should impose massive import taxes on all Thai goods.

[yellowboat]

Thai government and big business are seamless.  If you are Thai and you want success, leave Thailand like Redbull did.  Always happy to see Thai working outside of Thailand.  It is the only way they have a chance to break the chains of subservience.  

[fruitman]

5 hours ago, bluesofa said:

You mean the same as the Asean FTA?

When that came into effect, Thailand had to remove the import duty on Beer Laos. They did remove the import duty - and immediately introducing a 'special tax' on Beer Laos at exactly the same rate the import duty was set at, thus keeping the price exactly the same, while 'complying' with the FTA.

 

You think a European trade agreement will stop Thailand cheating?

See, that's exactly what i mean.....the Thai will continue to protect their market.

[Zack61]

It'll be off to the Gulag for Mr. Krislert Samphantharak.

[mickey rat]

48 minutes ago, yellowboat said:

Thai government and big business are seamless.  If you are Thai and you want success, leave Thailand like Redbull did.  Always happy to see Thai working outside of Thailand.  It is the only way they have a chance to break the chains of subservience.  

But didn't he leave in order to escape jail time for running over a cop and dragging him under his ferrari back to his home while drunk one night?????

[jollyhangmon]

 

Whoever has any suggestions/information related to international trade issues is indeed invited to direct them at:

 

 Ms Cecilia MALMSTRÖM

 

European Commission - Cabinets of Commissoners - Member of the Commission - Trade

 

Contact:

 

Email:

cecilia-malmstrom-contact(AT)ec.europa.eu

 

Tel.:

+32-229-86366

 

Address: 

European Commission

Rue de la Loi / Wetstraat 200

1049 Brussels

Belgium

 

 

 

Edited October 16, 2019 by jollyhangmon

[moojar]

1 hour ago, bluesofa said:

You mean the same as the Asean FTA?

When that came into effect, Thailand had to remove the import duty on Beer Laos. They did remove the import duty - and immediately introducing a 'special tax' on Beer Laos at exactly the same rate the import duty was set at, thus keeping the price exactly the same, while 'complying' with the FTA.

 

You think a European trade agreement will stop Thailand cheating?

You just described how the Thai side of the Thailand-Australia FTA operates. 

 

They're taking us for mugs.  

[newnative]

'Promoting market competition' and 'reducing monopoly' are certainly not the 'only' ways to reduce Thailand's worst in the World income inequality.  Maybe more than a 'peek' was needed at the problem.

[justin case]

fair competition are dirty words in thailand

[RichardColeman]

6 hours ago, webfact said:

The previous study and the latest are apparently in line with an earlier survey by Credit Suisse Global Wealth report, which found that Thailand has the greatest inequality in wealth in the world. 

I'm sure a lot of that wealth belongs to people with the Christian name General

[Chazar]

Its  not  only that but i bet if  you sold something down a road cheaper than anyone else theyd  either beat you up or  moan like hell/ make your  life difficult, see many places  selling stuff, all the same price

[mok199]

6 hours ago, webfact said:

Promoting market competition, reducing monopoly only way to close income gap, study shows

Big words , with little action

[Orton Rd]

Stand by for King Power to be awarded a monopoly again at DM, totally fair and above board of course

[phkauf]

I only wish Tariff Man Trump would focus his eyes on Thailand after China. Put the squeeze on CP and a few other of the Thai conglomerates would be the way to get changes started. 

People criticized him for puling out of the TPP, but bilateral trade deals with individual countries is the best way to go. Each country has it's own issues to deal with.

It's interesting to watch how the Thai elites continue to do the same nonsense they have been doing for decades, while the world changes around them and they are oblivious to it. Doesn't bode well for the future of the country.

[Burl Ives]

2 hours ago, bluesofa said:

You mean the same as the Asean FTA?

When that came into effect, Thailand had to remove the import duty on Beer Laos. They did remove the import duty - and immediately introducing a 'special tax' on Beer Laos at exactly the same rate the import duty was set at, thus keeping the price exactly the same, while 'complying' with the FTA.

 

You think a European trade agreement will stop Thailand cheating?

Same story with Craft Breweries, Mr Singha & Mr Chiang have persuaded the government to set the minimum allowable brewery to 100,000 l/year and banned home brew!

[Ricky J]

I know,,, get rid of more qualified ferangs that make the wheels turn and replace them with local under experienced chimps,, pay them a quarter of the ferang salery, hey presto,,, problem solved......

OH WAIT THEY DID THAT ALREADY,

 

TRY TO TAKE MORE AWAY FROM OTHERS BEFORE THEY GIVE FROM THEIR OWN POCKET,,, NOTHING CHANGES

[ChipButty]

We all know it's not going to happen, not in my lifetime 

[Moo 2]

We didn't need Credit Suisse to tell us that, I could have told them that, for free!, I live here.

Does not matter what I buy, it's has CP logo written on just about every packages and it's mostly

<deleted> as there is NO competition!

 

 

"All the money I earned through cheating, I lost it by earning it honestly".