Thailand’s Business Ease Ranking Plummets in Asia-Pacific: Survey

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Thailand now ranks among the least business-friendly nations in the Asia-Pacific region, according to a recent survey by the Asia Securities Industry and Financial Markets Association (ASIFMA). Once in the middle tier, the country has seen its position drop from 9th place in 2022 to 12th, now just above Vietnam.

 

ASIFMA’s survey assesses economies based on three key parameters: market development, operating environment, and regulatory framework. Among the 13 economies evaluated in 2023, Singapore maintained its top position with an average score of 7.67. Hong Kong followed closely with 7.38, while Australia (7.16) and Taiwan (6.61) secured the third and fourth spots, respectively.

 

Japan, which was previously in the top three, fell to fifth place with a score of 6.6. On the other end of the spectrum, Thailand’s score dwindled to 5.38, reflecting a continuous decline from its 5th place in 2021. The survey highlights that in terms of ease of doing business, Thailand now only ranks higher than Vietnam among the listed nations.

In the realm of market development, Thailand showed some strength in payment infrastructure, an improvement from the previous year’s focus on a growing customer base and wealth accrual. However, its competitive landscape and cost efficiency in the operating environment, previously lauded for “cultural and societal factors,” seem to have faltered. Regulatory flexibility, particularly the low restrictions on product and service offerings, remained a notable strong point.

 

The survey, conducted between September and December 2023, found worrying trends for future business expansion in the Asia-Pacific region. Only 40% of respondents indicated plans to expand their operations in Asia-Pacific, marking a 24% decrease from the previous year. The few businesses showing interest largely include securities, asset management, and bond firms.

 

Overall, Thailand's decline poses a troubling sign for its economic landscape and indicates potential challenges for businesses looking to enter or expand in the region.

 

File photo courtesy: bigcitydata via wikimedia

 

-- 2024-09-28