Thai FM Korn Urges Small Government, Decentralisation

[webfact]

Korn urges small government, decentralisation

By WICHIT CHAITRONG

THE NATION

The government has to reduce its role in the economy by reducing its holdings and decentralising regulatory responsibility to independent organisations, says Finance Minister Korn Chatikavanij.

Meanwhile, business leaders are expecting Japan to restruc?ture its industries after its recent disaster and are urg?ing Thailand to prepare for the pos?sibility of more plants relo?cat?ing out of Japan.

"I'm disappointed about public investment, which is often not productive," Korn said yesterday at a seminar at the Sasin Graduate Institute of Business Administration of Chulalongkorn University.

Looking ahead, the gov?ern?ment has to reduce its owner?ship in the economy. It has been proved that govern?ment per?forms poorly in an ownership role, Korn said.

The Finance Ministry under Korn's leadership is planning to reduce state holdings in key state enterprises such as PTT, Thai Airways International and Krung Thai Bank.

Complicated regulations also lead to more corruption, Korn said. He pointed out that many private firms have to offer 20 per cent of their equities free to influential figures who use their political connections to do favours for the firms.

Korn also suggested that to create transparency and a level playing field among businesses, more independent organisa?tions should assume the role of regulators to replace the gov?ernment. Nevertheless, several of these organisations had not yet achieved their goals, he said.

"For example, the National Telecommunications Commission was too inde?pen?dent from government pol?icy, while the energy regulator lis?tens to the Energy Ministry exclusively. It's hard to find any of them in the middle, not extreme in either way," Korn said.

The Securities and Exchange Commission (SEC) has not yet achieved its goals either, he said.

However, Korn praised the Bank of Thailand as a role model for newly established independent regulators. "The central bank has won confi?dence from the public at large."

Meanwhile, Chatchai Boonyarat, vice chairman of the Thai Chamber of Commerce, said Japanese industries were expected to undergo major restructuring after the devas?tating earthquake and tsunami. Japan has to manage its risks, as it is located on the Pacific Ring of Fire and as such often faces major earthquakes.

"The country is facing a nuclear crisis, so it might face electricity shortages. This may force SMEs that are part of the supply chain to relocate their plants to other countries," he said.

China and Asean could be destinations for these reloca?tions, he said.

"Vietnam has the advantage in terms of labour force over Thailand but Vietnam will need about 10 years to catch up with Thailand on basic infrastruc?ture," said Chatchai. Thailand should prepare for such an event by increasing its skilled labour force, he said.

Payungsak Chartsuthipol, president of the Federation of Thai Industries, said the com?ing of small and medium-sized enterprises from Japan could have a negative impact on Thailand's SMEs. He urged the government and related parties to plan wisely for new invest?ment from Japan.

-- The Nation 2011-03-26

[IanPrince99]

"Korn urges small government?" Didn't his party just voted to increase the number of MP from 300 to 500? What an ironic comment.

[whybother]

"Korn urges small government?" Didn't his party just voted to increase the number of MP from 300 to 500? What an ironic comment.

480 to 500. (400+80 to 375+125)

[Bakseedaa]

"Korn urges small government?" Didn't his party just voted to increase the number of MP from 300 to 500? What an ironic comment.

Sorry Ian, you got it wrong..

The ruling party is pushing for the formula of 375 seats for constituency MPs and 125 for party-list MPs. Other coalition parties are in favour of the 400-100 formula.

Democrats won the new formula in the vote..!! Same amount of MPs..

[asiawatcher]

"... Complicated regulations also lead to more corruption, Korn said. He pointed out that many private firms have to offer 20 per cent of their equities free to influential figures who use their political connections to do favours for the firms."

Don't tell me their is finally an admission of corruption???