Thailand's New Year resolution: get healthy for AEC

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EDITORIAL
Thailand's New Year resolution: get healthy for AEC
The Nation

Corruption and political crisis threaten our chances of benefiting from regional economic integration

BANGKOK: -- New Year is a good time to start anew, but the arrival of 2014 is a reminder that Thailand and our neighbours have just one year left before the Asean Economic Community (AEC) hits the launch pad. For Thailand, the ongoing political crisis makes the need for preparations more urgent. There has been a lot of talk, but now it's time for actions that embrace the AEC. The final countdown is approaching and any country with a good head-start will benefit from the regional pact.

Economic integration is expected to improve competitiveness by transforming the Asean countries into a single market and production base. If Thailand is to benefit from the free flow of goods, trade, investment, capital and labour, it needs improvements in key areas.

The challenge ahead has been made bigger by Thailand's ongoing political crisis, while the government has done far too little to pave the way for the AEC.

First and foremost, the country must sort out systemic corruption across business and in government. We also need education reform, as well as strong visions for business. All these requirements are interrelated and must be executed simultaneously if we are to be competitive enough to succeed in the AEC.

Corruption remains widespread and rampant, as Transparency International's most recent survey revealed. Thailand fell from 88th to 102nd this year and now languishes behind four Asean neighbours - Singapore (5th), Brunei (38th), Malaysia (53rd) and the Philippines (82nd). The rankings plunge is an alarm bell for Thai authorities, who must now take act serious actions to combat high-level graft. Among the most notoriously corruption-tainted last year were the water management and rice-pledging schemes.

Thailand could learn lessons from its neighbours' successful graft-eradication programmes. But without genuine political will, measures will remain ineffective. The anti-corruption drive must begin at a structural level: laws must be clear-cut, giving the least room possible for political exploitation. Graft-busters must be empowered, depoliticised and given society's full support. Otherwise, the opportunities that arrive with the AEC will pass Thailand by.

Like corruption, education in Thailand gets a poor review. We rank worst among the eight Southeast Asian countries evaluated in the World Economic Forum Global Competitiveness Report for 2012-2013. The frequent change of education minister and lack of visions have taken their toll. Four ministers in the space of two years under one government has hardly helped launched reform, let alone continue it.

Obviously, education in Thailand needs to be fixed quickly and sustainably if we are to keep pace with our neighbours. That English will be the official language of the AEC should also ring alarm bells, with Thai students still lagging behind. Our future generations will need English more than ever when free flow of labour puts them in direct competition with their Asean peers.

More important still, our government needs vision. The government often allows the private sector to take advantage of mega-projects. Such practice breeds a vicious circle of nepotism, corruption and government incompetence. For models here, Thailand need look no further than Singapore and Hong Kong, where governments take the lead and gain great benefits from their development plans.

But first and foremost, we must put our political house in order. The consequences of failing to do so will be grave: Investors will be scared away, while local businesspeople will suffer from lack of guidance and support. It will be impossible for Thailand to take advantage of the free flow of trade, investment, production and human resources if it remains at its relatively low level of competitiveness.

Thailand has a mountain to climb. The AEC is a summit worth aiming for, but only the strongest "mountaineers" will reach the top and enjoy the great view. The question is, can Thailand shirk its "sick-man" status quickly enough this year to ascend to the summit and enjoy the benefits along with other Asean nations?


-- The Nation 2014-01-01

[wordchild]

Noble aspirations reflected in this article but it is just all a bit too late. Addressing issues like endemic corruption and the dire state of Thai education (incl the poor level of English, the official business language of the AEC) will take years and years. Thailand is two or three generations behind Singapore and , at least, a generation behind Malaysia in dealing with these issues. In other areas, Vietnam has caught up fast and and Myanmar and Indonesia have the advantage of their vast natural resources. Thailand is potentially the big loser from the AEC but the arrogance (or ignorance) of Thai politicians and officials means that little of substance has been done. Thailands run of luck that has lasted since the end of the Vietnam war maybe ending.

Edited January 1, 2014 by wordchild

[RubbaJohnny]

If they Everest,they can surpass Snowden and with a stroke of a Mont Blanc climb on the backs of the hill tribes and low-lifes to the acme of hi-so summitry.

Highland hub for social climbers.

Yabba dabble don't

[MaxLee]

Thailand's New Year resolution: get healthy for We don't give a dam_n about: AEC

Edited January 1, 2014 by MaxLee

[jackr]

Would be peachy if it could be turned around, but fear it'd take at least 100 years for any and all of that to be realised. Corruption is here to stay, it is hardwired.

[richard10365]

Once again someone writes about the AEC without knowing anything about the AEC. If anything, the people living in Thailand should learn about what the AEC is before they decide to write or comment on an AEC opinion by someone else. The biggest threat to Thailand about the AEC is most people have no clue what it is.

[lostmebike]

Economic integration is expected to improve competitiveness by transforming the Asean countries into a single market and production base. If Thailand is to benefit from the free flow of goods, trade, investment, capital and labour.

Yes easier trade and investment is just what any country needs.

Now all Thailand needs to do is learn how to communicate with it's neighbours. 'What they don't speak Thai?' I here the locals shout

[muratremix]

Everytime they compare rankings including with Singapore. Thailand can never become Singapore even after 1000 years, not with this corrupt mentality and ignorance.

[catmac]

Quite simple, really. Thailand has no intention whatsoever to enter the spirit of the AEC. Any aspect of the new AEC world that could upset the status quo will be circumvented and wiped out. Remember the brewer's cartel insisting that once import duty was removed on imported beer, then a new "health tax" should be levied only on imported beer instead! Just an example of how easy it will be to ensure that none of the expected benefits of the AEC will ever be seen by the poor old Thai consuners.

[richard10365]

There are specific objectives that all 10 nations have agreed to as part of the AEC process. Anything outside of the AEC objectives is not considered part of the AEC process. Most opinions expressed are not part of the objectives. Most people do not know what the objectives are. Still, people feel it is important to give their opinion on the possibility of Thailand being able to accomplish the AEC process without knowing what that process is. So if you really want to know, please take the time to read the AEC Blueprint here. Keep in mind, it is a bit technical and without a business background, it might be a difficult read. Read it slowly and carefully. Don't breeze through it thinking you will understand it the first time. If you have any questions, please send me a message or ask here. I will try to help.

One more thing, keep in mind there APSC and ASSC are also happening along side the AEC.

Edited January 1, 2014 by richard10365

[MaxLee]

Well ASEAN Thai style:

1. The Cambodians are temple robbers

2. The Burmese are our dirty work slave b******es

3. The Laos are just simply below our status and Tai style copiers

4. Vietnamese have stolen our rice reputation

5. The Filipinos are just pathetic typhoon victims and secondary English teaching alternatives for XXXXX-pensive Falang...

Finally: "The Chinese are our Masters, and if anybody dares to disagree, we will shoot him to death along with their family bloodlines..."

ASEAN Thailand

Edited January 1, 2014 by MaxLee

[GazR]

Verily a mountain to climb and the Aegean stables to clean out as well.

[irishtoffy]

I wonder if the elite families/military/politicians that are sponsoring this political violence on both sides at the minute, have an eye on what AEC/APSC/ASSC implementation would mean for them, Thailand and their incomes?

Perhaps this could be a factor in keeping this unrest ongoing?

I always thought Thailand would find some way to 'opt out' of some of the main clauses in the ASEAN agreements which would have a negative impact on the country/economy and perhaps the easy money made form all the corruption would not be so easy to obtain.

Just a thought...

Maybe showing the rest of ASEAN just how good at "Thai-ing" to them they can be!

[biggles45]

". Any aspect of the new AEC world that could upset the status quo will be circumvented and wiped out. "

I have read that employment for other ASEAN members within Thailand will be limited to 8 professional categories. Seems they Re getting in early !!

[richard10365]

". Any aspect of the new AEC world that could upset the status quo will be circumvented and wiped out. "

I have read that employment for other ASEAN members within Thailand will be limited to 8 professional categories. Seems they Re getting in early !!

Don't let that 8 fool you. In the hotel and tourism category it equates to 32 specific jobs. However, if you include the service categories under GATS, the following jobs are included....and by the way, already agreed upon by Thailand to some degree...

· Business Services

o Professional Services

o Computer-Related Services

o Research and Development Services

o Real Estate Services

o Rental/Leasing Services without Operators

o Other Business Services

· Communication Services

o Postal Services

o Courier Services

o Telecommunication Services

o Audio-Visual Services

· Construction and Related Engineering Services

· Distribution Services

· Education Services

· Environmental Services

· Financial Services

o Insurance and insurance-related services

o Banking and other financial services

· Health-Related and Social Services

· Tourism and Travel-Related Services

· Recreational, Cultural and Sporting Services

o Entertainment services

o News agency services

o Libraries, archives, museums and other cultural services

o Sporting and other recreational services

· Transport Services

o Maritime Transport Services

o Inland Water Transport Services

o Air Transport Services

o Space Transport

o Rail Transport Services

o Road Transport Services

o Pipeline Transport

o Services Auxiliary to All Modes of Transport

· Other Services not included Elsewhere.

[Thai at Heart]

I wonder if the elite families/military/politicians that are sponsoring this political violence on both sides at the minute, have an eye on what AEC/APSC/ASSC implementation would mean for them, Thailand and their incomes?

Perhaps this could be a factor in keeping this unrest ongoing?

I always thought Thailand would find some way to 'opt out' of some of the main clauses in the ASEAN agreements which would have a negative impact on the country/economy and perhaps the easy money made form all the corruption would not be so easy to obtain.

Just a thought...

Maybe showing the rest of ASEAN just how good at "Thai-ing" to them they can be!

Of course they do. They want to be front and centre offering their services for potential partnership to help smooth entry into thailand for a mere 51% of the company.