Asean is not yet ready for integration, Mahathir says

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ASSESSING ASEAN'S READINESS BY COUNTRY
Asean is not yet ready for integration, Mahathir says
Supalak Ganjanakhundee
The Nation


Nation Multimedia Group chairman Suthichai Yoon, centre, chats with former Asean secretary-general Surin Pitsuwan as former Malaysian prime minister Mahathir Mohamad looks on, prior to the NMG-organised conference on Asean and the Asean Economic Community

M'sian ex-premier says EU's woes show dangers of rushing plan; poor nations protections "should stay in place"

BANGKOK: -- Singapore is the only ASEAN member that will be completely ready for economic integration under the ASEAN Economic Community (AEC) by 2015, and some of the group's poorer members should be allowed to retain their economic protections, former Malaysian prime minister Mahathir Mohamad said yesterday.

"The poorer members of ASEAN are not yet ready for the AEC. Even the richer members are not really ready for the AEC. This is because their domestic policies are not similar," Mahathir told a conference on "Assessing Asean's Readiness by Country" held by Krungthep Turakij newspaper at a Bangkok hotel.

Singapore is best prepared for the AEC because the city-state is a free port that has never relied for long periods on tariffs, he said. Other economies depend heavily on tariff duties, Mahathir said, noting that even his own country is second to Singapore in terms of readiness.

Asean members have the ambition to liberate and integrate their economies by promoting free movement of goods, investment, services and manpower by the end of 2015. Tariffs and non-tariff barriers are being pushed down and will be eliminated eventually.

If ASEAN sticks to its original schedule for economic integration, some countries might face difficulties, Mahathir said. "We should come together, but we should allow countries like Cambodia, Laos and Myanmar to protect their economies."

Different strategies can achieve different results from trade liberalisation, such as with automobiles in Malaysia and Thailand, he said. He noted that Malaysia had invested a lot to develop its own automobile manufacturer - Proton Holdings - but had derived less benefit from the effort than Thailand had from its strategy of assembling foreign automobiles.

Mahathir suggested ASEAN look to the crisis in the European Union as a lesson for ASEAN integration.

"We cannot reject unity outright. On the other hand, we cannot just unite simply because the Europeans united. We need to know first why the EU has seemingly failed," he said.

Europe is today an unequal community, he said. Countries in Eastern Europe as well as Spain, Portugal and Greece were relatively less developed and had low-cost economies, which formerly attracted tourism and investment from richer nations. Things changed when poorer European nations adopted the single euro currency. The rate of conversion was not properly worked out and the cost of living climbed. Some countries that are now in crisis made the mistake of borrowing money to meet their shortfalls and to sustain their high-cost living standards, he said.

The former Malaysian premier suggested ASEAN not make Europe's mistake of adopting a single currency. Currency in this region could be traded but all individual members should retain their national currencies, he said. The trading of currency should be based on gold to make it more stable, he said. "We do not have a gold-based currency trade now and this may hamper the implementation of the AEC in 2015," Mahathir said.

Former ASEAN chief Surin Pitsuwan said the association should boost trade within the group in order to realise its integration. Trade among the 10 nations accounted for only 25 per cent of their combined US$2.7 trillion (Bt85.7 trillion) in international trade, he said.

Most ASEAN members - the exceptions are Singapore and Brunei - are middle or low-income countries, Mahathir said. Malaysia is moving to high-income status quickly, but the rest should put more effort into investing more in research, technology and innovation, he said.

While eliminating tariff duties, ASEAN members should not put more non-tariff barriers into their trade regimes, he said.

Asean members have ratified 75 per cent of agreements to form the community, but that is not enough. It needed to do more to push forward integration. The group should allow free movement of professional workers to cross borders, otherwise integration would not happen, he said.


-- The Nation 2013-09-18

[bkkgriz]

The excuses are beginning. Thailand, along with other highly corrupt countries in SE Asia have no interest in an economic community. There would have to be transparency in multinational deals. Therefore, fewer opportunities to line pockets with ill-gotten gains.

[jaltsc]

Thai businessmen are probably looking at ASEAN as a way to increase their profits. No tariffs on imported goods. So they can keep the same prices and put more into their pockets. Foreign exporters will skip doing business with Thailand since they won't see an increase in their sales. Thailand, the hub of "They just don't get it".

[sirchai]

Mahathir suggested ASEAN look to the crisis in the European Union as a lesson for ASEAN integration.

"We cannot reject unity outright. On the other hand, we cannot just unite simply because the Europeans united. We need to know first why the EU has seemingly failed," he said.

The former Malaysian premier suggested ASEAN not make Europe's mistake of adopting a single currency. Currency in this region could be traded but all individual members should retain their national currencies, he said. The trading of currency should be based on gold to make it more stable, he said. "We do not have a gold-based currency trade now and this may hamper the implementation of the AEC in 2015," Mahathir said.

I've learned a lot about their ideas through teaching at a government school and doing ASEAN camps. But the majority of Thai people don't even know what ASEAN means.

The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless.

A joke, as the same government had to use tax money to pay for their "Arbeitslosengeld." (The monthly amount of money the government pays for jobless people.)

Of course did the politicians know what was going on, but some received some filled envelopes to keep both eyes and ears closed.

Mr.Surin made a very valid point when he said that Thailand would have huge economic problems it their English speaking skills wouldn't improve.

But that's not all. Gotta love the statement that only Singapore's ready..it's just a city state....

Once ASEAN will kick in, all poor guys from the other countries will come to Thailand with no money to make money. This will make many Thais jobless, as people from for example the Philippines wouldn't just "teach English" here.

A lot of crime, more drugs, a higher prostitution rate in a land where prostitution isn't even allowed by law. You can already see so many workers from Bangladesh, which isn't even an ASEAN member country in almost all provinces, working as construction workers, or anything else.

Nobody was asking the German if they wanted to have the currency Euro. Then it turned out that all goods almost doubled within a short period of time.

And the kids in Thailand have to learn about different foods in these countries, but none of the graduates is willing to work in another ASEAN member countries.

Neither Thailand is ready for ASEAN, nor would it help Thais do have better job opportunities. -

Edited September 18, 2013 by sirchai

[trogers]

"The poorer members of ASEAN are not yet ready for the AEC. Even the richer members are not really ready for the AEC. This is because their domestic policies are not similar," Mahathir told a conference on "Assessing Asean's Readiness by Country" held by Krungthep Turakij newspaper at a Bangkok hotel.

If we wait for similar domestic policies, a century would have passed us by...

Look at the level of subsidies governments have to maintain, and for Thailand in particular, guaranteed price of rice to see how dissimilar polices can be. Vietnam is probably more ready for AEC than Thailand in this regards.

[noitom]

The excuses are beginning. Thailand, along with other highly corrupt countries in SE Asia have no interest in an economic community. There would have to be transparency in multinational deals. Therefore, fewer opportunities to line pockets with ill-gotten gains.

This is exactly the reason for the shuffling about. A transparent economy is the last thing Thais want.

[Mampara]

WRONG, Asia is ready, But Thailand isn't.

[bigbamboo]

He's right. Singapore is so far out on it's own it will dominate ASEAN. Malaysia and G20 member Indonesia may do OK and Brunei is wealthy enough not to need the rest anyway. The others, especially the non English speaking nations amongst them will struggle and that I'm afraid includes Thailand.

Edited September 18, 2013 by bigbamboo

[DocN]

"The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless."

What?

Where are you getting this sh1t from?

[rametindallas]

Finally, a politician who's head is not stuck up his butt. AEC is poorly designed, poorly thought out, and will be poorly implemented. Every worker from the poorest countries will flood the labor markets of the (relatively) wealthier countries. If you think wages are depressed in Thailand now (even with 0.05% unemployment rate), just wait until 2015. The Chinese businessmen who control this country are all for it as their costs will go down and profits up. Average Thais will have to scramble and take pay cuts to get or keep a job and they still won't make a 'living wage'. Since Thais don't speak English nor any other AEC language, there will be few opportunities for Thais to migrate to better paying countries. The AEC is exploitation of the workers and morally wrong IMO.

[schondie]

Dr. Mahathir speaks sense as usual. This could be used a get out of jail free card by Thailand needs. AEC will cause untold problems for many people in this country. His advice should be heeded to take things nice and slow instead of rushing into it blindly.

[belg]

yeah, who would think that thai WANTS competition, it is not in their dictionary

almost no unemployment

and still making it hard for farangs with all kinds of nutty laws to make it as difficult as possible... if you check some of those poorer countries immigration laws, (cambodia ? ) you can get very easy a WP and visa for a year without 90 days hastle, leaving country or whereabouts (contact your parole officer kinda report bullshit)

[sirchai]

"The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless."

What?

Where are you getting this sh1t from?

It's called "history". Apparently back in the old times there were documentaries on TV. "Der Spiegel" and other serious magazines made it public.

How can you criticize somebody, because you don't know facts of what had happened? -Good day.-

[lostinisaan]

"The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless."

What?

Where are you getting this sh1t from?

It's called "history". Apparently back in the old times there were documentaries on TV. "Der Spiegel" and other serious magazines made it public.

How can you criticize somebody, because you don't know facts of what had happened? -Good day.-

Sirchai, I can back you up on this one. It's FACT that many illegal workers from Eastern European countries built the " Bundestag" in Berlin.

I grew up in the Western part of this country and it was bad news for all jobless construction workers. Some East Germans might not even know what happened.

Useless to say that all of those countries are part of the European community now.

[DocN]

"The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless."

What?

Where are you getting this sh1t from?

It's called "history". Apparently back in the old times there were documentaries on TV. "Der Spiegel" and other serious magazines made it public.

How can you criticize somebody, because you don't know facts of what had happened? -Good day.-

I can, because a friend of mine's company was involved.

The mas you could throw at them, was that they used "cheaper" workers from Eastern Countries of the EU- which is totally legal but nonetheless hurting the local German job- market!

[sirchai]

"The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless."

What?

Where are you getting this sh1t from?

It's called "history". Apparently back in the old times there were documentaries on TV. "Der Spiegel" and other serious magazines made it public.

How can you criticize somebody, because you don't know facts of what had happened? -Good day.-

I can, because a friend of mine's company was involved.

The mas you could throw at them, was that they used "cheaper" workers from Eastern Countries of the EU- which is totally legal but nonetheless hurting the local German job- market!

At this time. they weren't workers from the EU. And many of them were there illegally. While German workers couldn't get a job.

Or was Poland, or Hungary part of the EU when they'd built it? This is history at its best and the ASEAN community will experience the same problems.

Even worse, as they're still developing .Excluding Ying's grey brain cells. -

[h90]

The excuses are beginning. Thailand, along with other highly corrupt countries in SE Asia have no interest in an economic community. There would have to be transparency in multinational deals. Therefore, fewer opportunities to line pockets with ill-gotten gains.

look at the EU it get less transparent, as the huge companies bribe just once and far away.....

[TackyToo]

He's right. Singapore is so far out on it's own it will dominate ASEAN. Malaysia and G20 member Indonesia may do OK and Brunei is wealthy enough not to need the rest anyway. The others, especially the non English speaking nations amongst them will struggle and that I'm afraid includes Thailand.

Germany took a huge burden on its back with the “unification” and the constant flow of poor and uneducated people from new member states of the EU.

Ask an average Thai if he is willing to share his house with unknown family members, speaking in different languages awaiting food and money while not contributing to the progress and well-being of their host.

You may even take it from an opposite view. Would they like the above mentioned to live in their house if they are wealthy educated and constantly bypass their guest family in skills and business and send their profits home to their country?

Edited September 18, 2013 by TackyToo

[Phronesis]

Laziness is the key to understanding the likely outcome on this, and every other issue in Thailand.

When I look at any predicament here and try to predict the outcome, I just say to my self what is the laziest solution, because that is the one that will be adopted by a Thai.

Thailand won't fall into line with ASEAN, because it is easier to do nothing.

[Benmart]

Good points, both pro and con. The clock is ticking and those that adopt the "Wait and See" approach may be left to turn off the lights in their deminshing economies. The world economy is not going to wait for any country to make a move, but will continue to roll to whatever pace is set by the active players.

[Thai at Heart]

Cue the foreign minister bemoaning how poor Thailand really is and how protectionism rocks...

[outsider]

So says the man who is the father of protectiionism (look at what Proton has done to the auto industry in Malaysia), the champion of cronyism and perpatrator (if not architect) of ethnic disharmony in Malaysia.

[Thai at Heart]

Thai businessmen are probably looking at ASEAN as a way to increase their profits. No tariffs on imported goods. So they can keep the same prices and put more into their pockets. Foreign exporters will skip doing business with Thailand since they won't see an increase in their sales. Thailand, the hub of "They just don't get it".

Oh no. Just wait until you can buy online from Amazon Asean. The Thai retailers will have an absolute s**t fit.

[Thai at Heart]

Good points, both pro and con. The clock is ticking and those that adopt the "Wait and See" approach may be left to turn off the lights in their deminshing economies. The world economy is not going to wait for any country to make a move, but will continue to roll to whatever pace is set by the active players.

Most MNC's and those forward looking countries with companies who want regional strength will have their plans already. I expect hundreds of legal challenges to investments in Thailand

Is it the case that a foreign company can own a 100% foreign subsidiary in Vietnam. Therefore, it is a foreign owned Vietnamese company? Can this company then invest in restricted businesses in Thailand, being a company within Asean?

If this is the case, there will be a massive influx of Vietnamese companies entering retail, hotels, and last but not least, agriculture.

[TPI]

The excuses are beginning. Thailand, along with other highly corrupt countries in SE Asia have no interest in an economic community. There would have to be transparency in multinational deals. Therefore, fewer opportunities to line pockets with ill-gotten gains.

It stuck out like dogs b#lls that Thailand would never ever, ever forgo its monopolies on rice, teak, rubber, etc. The Phoo Yai's that control all of the many monopolies in Thailand must think the whole idea as luicrous! The whole of ASEAN is, collectivly, a huge "PONZI" scheme with the tax payers the

"patsy's", no one is ever held to account and anyone who questions the operations is either put in the "slammer" or killed! The whole idea is very sad.

[Jasun]

Mahatir can keep his protectionism. Heres a guy who handed out incredible minority-type privileges to an overwhelming majority group in his own country, then complains when those same people lack motivation.

[khunken]

Mahatir can keep his protectionism. Heres a guy who handed out incredible minority-type privileges to an overwhelming majority group in his own country, then complains when those same people lack motivation.

No he didn't. He provided some incentives to the Malay ethnic group, who make up around 60% of the population (not overwhelming) to counter the Malay-Chinese who basically controlled the economy. Yes, it's only been partially successful.

Thailand could with some of the same - being controlled even more by the Thai-Chinese in business & politics.

Apart from that, Mahathir is a smart leader who refused IMF 'help' after the Asian crisis in 1996-7 and his country was all the better for it, especially in comparison to Thailand & Indonesia. He is right this time too as Asean is not ready for any realistic integration in the near future. It will be a sham if it happens in 2015.

[backtonormal]

Surin Pitsuwan...look which political party backs him, look at the editor of this paper, look at the editors hatred of Thaksin, look at he power players who dont want competition in the form of ASEAN...who are supported by the dems and Yoon...mix it up and see if you get the same answer as me.

Does any foreign national really fall for this one sided bias political tripe. Take said article to the crapper and wipe you poop pipe with it

Edited September 18, 2013 by backtonormal

[osiboy]

"The German "Bundestag", the Parliament buildings in Berlin were built by East European workers without work permits, etc. None of them payed taxes, while hundreds of thousand "professionals" in construction business were jobless."

What?

Where are you getting this sh1t from?

It's called "history". Apparently back in the old times there were documentaries on TV. "Der Spiegel" and other serious magazines made it public.

How can you criticize somebody, because you don't know facts of what had happened? -Good day.-

TRUE; It wasn't the Brits that delivered the olympic villillage / stadium / facilities either , it was built by polish and other east europeans cos they work for less money...., why they didn't get builders from other parts of the UK first with the correct qualifications and paperwork is a scam , where is health and safety when you need them ??? half this workforce could not speak a word of English ,.....the rich want to keep the working classes down all over the world , not just in Thailand.

[caughtintheact]

Thai businessmen are probably looking at ASEAN as a way to increase their profits. No tariffs on imported goods. So they can keep the same prices and put more into their pockets. Foreign exporters will skip doing business with Thailand since they won't see an increase in their sales. Thailand, the hub of "They just don't get it".

It doesn't exactly work like that. Lower tariffs mean lower costs to businesses that import raw materials to use in making products for exports. Lower prices also mean consumners get lower prices. If the business owners put more money in their pockets so what? They serve their customers with products that the custromers want and need or they would not stay in business. Without the added costs of tariffs businesses can hire more people when they need them. They also hacve more money for equipment, maintenance, R&D, etc.