Thailand not ready for AEC, finance minister tells seminar

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Thailand not ready for AEC, finance minister tells seminar
Erich Parpart
The Nation


Sommai Phasee

BANGKOK: -- Finance Minister Sommai Phasee and key private-sector voices have warned that the Kingdom has a long way to go before it is ready for the full implementation of the Asean Economic Community at the end of 2015.

He said this was especially the case for regulations that were acting as a barrier against the free movement of goods, labour, services and investment.

"The officials at the Finance Ministry have written it down on my speech here that they are ready for the AEC. I said you are not ready," Sommai said yesterday.

Speaking at a seminar on "Is Thailand Ready for the AEC?", Sommai said many regulations still had to be

introduced before the AEC's full launch.

He said he had worked at the ministry for three months and in that time there had been "eight or nine" regulation changes but many more "still need to be upgraded, amended and covered if we are to be ready for the AEC".

Sommai said the country had to amend regulations that acted as barriers against the idea of a single Asean market and production base.

He said having a single Asean window to facilitate logistics and investment meant Thailand needed to improve its transport infrastructure to increase regional connectivity and fully embrace the digital economy to connect government agencies.

Another important issue was inducing regional confidence in the country.

"The government and the prime minister have to create confidence in terms of the country's political situation and our stance in the region," he said.

"Do we know what our position in the AEC is or where we are now in the political situation?

"The government has to provide this clarity to maintain confidence at a regional and international level."

Sommai said the Finance Ministry would next week propose to the Cabinet the setting up of a Bt25-billion venture-capital fund to be spent on joint investment projects with small and medium-sized enterprises.

Yu Jienyoenyongpong, chairman of the Land Transportation Federation of Thailand, said only large companies in Thailand had readied themselves for the AEC because they had the capital and know-how to do so. But he said 90 per cent of the country's businesses were SMEs and they were not ready because they did not have the capital or knowledge.

He said the readiness of SMEs for the AEC would determine the country's readiness, including their competitiveness against regional rivals, and he was glad the minister had acknowledged the true picture.

Yu said other countries in the region were ahead of the Kingdom in terms of regulation that facilitated investment while Thailand had rules that made it harder for SMEs to operate across borders.

The government's Nong Khai-Map Ta Phut dual-track railway project would be ineffectual because it would not connect with the high-speed railways that Malaysia and Singapore were developing.

He said the project's East-West Corridor route would lessen the benefit to Thailand as it would not pass major landmarks or manufacturing centres.

Sanan Augubolkul, chairman of Srithai Superware, said Thailand had to think about its energy consumption before the full implementation of the AEC because its reserves of natural gas were due to run out in seven years.

Sanan said the nation had to invest in energy now before becoming more dependent on neighbours for energy while amendments to regulations and tax incentives were needed to facilitate foreign investors.

Source: http://www.nationmultimedia.com/business/Thailand-not-ready-for-AEC-finance-minister-tells--30249635.html


-- The Nation 2014-12-12

[NongKhaiKid]

What an understatement !

[hanuman2543]

Why am I not surprised?

[Squeegee]

Nice to see some honesty from officialdom.

[ChrisY1]

Many of us here have been talking about these issues for months.....finally someone has the balls to tell it as it really is.

Another example of agreeing to something and really not intending to actually abide.

It would seem that Thailand is being caught out in a most embarassing way.....they have a lot of work to do, to avoid major negative trade impacts and could well be bypassed!

[kalbo123]

Thailand cannot afford to open it's boarders for free trade and services, it will mean it's bankruptcy for sure.

I know a few hotels that would love to trade in most of their Thai staff for Burmese or staff from the Philippines.

Edited December 11, 2014 by kalbo123

[selftaopath]

Is Thailand ever ready for anything that requires effort. It seems to ALWAYS be ready for handouts and others doing the work. I really think Thailand wants the entire world to provide everything to it because ????????

[siampolee]

Wonderful, the inaugural meeting concerning ASEAN was in 1996 , that's some 18 years ago, yet Thailand is still not prepared?

Never ever will Thailand be ready or even willing to face competition in the region, innovation is the key to progress as opposed to imitation. A decent education system as opposed to an indoctrination system would indeed be a massive step forward.

Protectionist polices are fine in small doses, however the Thai system of spoon feeding and blanket baths for their companies and restrictive practices allied with a xenophobic inward looking mindset is going to and will be the road to economic and business Seppuku for this country

The seeds for this ASEAN garden growth were sown many years ago.Now those seeds have matured into national plant growth and full maturity is but a few months away. sadly it is blatantly obvious that Thailand is indeed the blighted growth in the ASEAN garden.

[kotsak]

Good for a few laughs while having my morning coffee

[dbrenn]

Looking at the mess the EU is in, I'm not surprised ...

[honoluludave]

They are only figuring that out now??

[slapout]

Thailand was not ready for the 21st century,but they were dragged unto it with the rest of the world. Granted they were digging in their heels, kicking, screaming, crying, etc but they got here. Now if we can get them to play the same game using the same rules/playing field we might be able to sell tickets to the spectators so they can watch.

[arthurboy]

Cue even more big business, government partnerships with our friends in China.

China is still a burgeoning regional economic powerhouse and will continue to push its influence here and in those countries with natural resources and access to the sea.

Any business or transnational transport projects are a convenient smokescreen for a thinly veiled attempt to gain regional superiority and military influence.

[Stradavarius37]

The amount of "hindsight is 20/20 expats" commenting here is staggering - how is it that all you prognosticator "i told you so" experts aren't steering your own country's respective fortunes, instead of manning the bar stools and complaining about the price of Chang and Leo?

[whybother]

Thailand cannot afford to open it's boarders for free trade and services, it will mean it's bankruptcy for sure.

I know a few hotels that would love to trade in most of their Thai staff for Burmese or staff from the Philippines.

The AEC doesn't allow for free movement of labour. Only a few professions will be allowed "free" movement, and there are even some restrictions on those.

[whybother]

The amount of "hindsight is 20/20 expats" commenting here is staggering - how is it that all you prognosticator "i told you so" experts aren't steering your own country's respective fortunes, instead of manning the bar stools and complaining about the price of Chang and Leo?

I know quite a few expats that are trying to help Thailand get ready for the AEC. Thailand aren't that good at listening.

[whybother]

Cue even more big business, government partnerships with our friends in China.

China is still a burgeoning regional economic powerhouse and will continue to push its influence here and in those countries with natural resources and access to the sea.

Any business or transnational transport projects are a convenient smokescreen for a thinly veiled attempt to gain regional superiority and military influence.

I'm not sure how the AEC will make much difference for China given they're not an ASEAN country.

[Rumble]

If you want to teach somebody to swim quickly, you throw them into deep waters.

[arthurboy]

Cue even more big business, government partnerships with our friends in China.

China is still a burgeoning regional economic powerhouse and will continue to push its influence here and in those countries with natural resources and access to the sea.

Any business or transnational transport projects are a convenient smokescreen for a thinly veiled attempt to gain regional superiority and military influence.

I'm not sure how the AEC will make much difference for China given they're not an ASEAN country.

At present. The long term ASEAN roadmap contains the 'plus 3' principle and plan. http://www.asean.org/images/2013/external_relations/chairman%20statement%20of%20the%2016th%20apt%20summit%20-%20finalupl.pdf

My point was thought that while the AEC continues to flounder and delay, Thailand will move closer to China, as will Laos, Mynamar and Cambodia.

These relationships will also bolster China's influence over ASEAN and the AEC in the long run if it ever comes to fruition. In the meantime, China continues to strengthen its influence in the region with pacts and projects with individual countries.

Who knows, if Thailand's entry into the AEC really does come to a grinding halt, China may instigate its own version of economic - read political and military - treaty cooperation.

Edited December 12, 2014 by arthurboy

[chainarong]

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What an understatement !

Just to make them happy < I am not ready either.

[ARGUSEYE]

When I exited Thailand to Cambodia last week with my Thai motorbike the customs forced a "temporary export permit" on me with a big red stamp on it stating that if I don't return my Moto within 30 days I would be fined a thousand baht a day.

What a joke!!!

It's MY motorbike, I paid for it and paid the Thai taxes and the Thai customs fine me a thousand baht a day if I take a holiday in another ASEAN country??

Of course I complained and during the argument with the head of Haad Lek customs it appeared to me that the officer did not even know the difference between import and export.

With this kind of government officials... What can we expect???

[seajae]

considering yl and the ptp did absolutely nothing to set this up is anyone surprised. They simply nodded their heads and said yes to everything, they never pushed the necessary reforms because it was too hard for them. The rest of the country simply refused to do anything in case it effected their profits and finances, greed is too high up and they simply dont want to have to share their market with anyone else. Most cant even speak english, whatever happened to the police etc having a basic understanding of it, that flew out the window ages back because thais dont need to speak any other language even when they have committed to doing it

[kaorop]

Wonderful, the inaugural meeting concerning ASEAN was in 1996 , that's some 18 years ago, yet Thailand is still not prepared?

Never ever will Thailand be ready or even willing to face competition in the region, innovation is the key to progress as opposed to imitation. A decent education system as opposed to an indoctrination system would indeed be a massive step forward.

Protectionist polices are fine in small doses, however the Thai system of spoon feeding and blanket baths for their companies and restrictive practices allied with a xenophobic inward looking mindset is going to and will be the road to economic and business Seppuku for this country

The seeds for this ASEAN garden growth were sown many years ago.Now those seeds have matured into national plant growth and full maturity is but a few months away. sadly it is blatantly obvious that Thailand is indeed the blighted growth in the ASEAN garden.

Not sure what meeting you are talking about but asean was started/formed/planned back in 67.

The way it is now, in its current form, its never gonna happen, imo, way to many dont want the competition.

[englishoak]

And I win a meal for that public statement Sweeeet

[Pomthai]

The hub of "not quite ready yet, in fact I'm gonna be late." But I won't mention it until it is too late.

[Tatsujin]

The amount of "hindsight is 20/20 expats" commenting here is staggering - how is it that all you prognosticator "i told you so" experts aren't steering your own country's respective fortunes, instead of manning the bar stools and complaining about the price of Chang and Leo?

I personally can't remember ever complaining about the price of Chang and Leo (maybe cos I drink Singha, which is far too expensive), and I will admit to occasionally sitting on a bar stool, but with regards to AEC, it's nothing to do with hindsight, I've been commenting about it for a decade or more (in business circles and privately) and they've chosen to do jack squat about it ... it's the same with "education" here ... lots of talk, but with zero intentions to actually do or change anything, cos Thailand is #1 in the world at everything so why should they change anything, other people/countries should change their policies/attitudes/beliefs to fit in with Thailand ... that's their attitude. It's not going to change any time soon.

[Tatsujin]

Cue even more big business, government partnerships with our friends in China.

China is still a burgeoning regional economic powerhouse and will continue to push its influence here and in those countries with natural resources and access to the sea.

Any business or transnational transport projects are a convenient smokescreen for a thinly veiled attempt to gain regional superiority and military influence.

I'm not sure how the AEC will make much difference for China given they're not an ASEAN country.

At present. The long term ASEAN roadmap contains the 'plus 3' principle and plan. http://www.asean.org/images/2013/external_relations/chairman%20statement%20of%20the%2016th%20apt%20summit%20-%20finalupl.pdf

My point was thought that while the AEC continues to flounder and delay, Thailand will move closer to China, as will Laos, Mynamar and Cambodia.

These relationships will also bolster China's influence over ASEAN and the AEC in the long run if it ever comes to fruition. In the meantime, China continues to strengthen its influence in the region with pacts and projects with individual countries.

Who knows, if Thailand's entry into the AEC really does come to a grinding halt, China may instigate its own version of economic - read political and military - treaty cooperation.

+1 ... good to see that some other "expats" can see where China/Thailand are heading ...

[Skywalker69]

Looking at the mess the EU is in, I'm not surprised ...

What has EU to do with Thailand not ready for AEC?

[HiSoLowSoNoSo]

Their protectionist policies will leave them bypassed by their neighbours in the soon future and after they will whine like a kid who got the smallest piece of the cake.

[Crazy chef 1]

The amount of "hindsight is 20/20 expats" commenting here is staggering - how is it that all you prognosticator "i told you so" experts aren't steering your own country's respective fortunes, instead of manning the bar stools and complaining about the price of Chang and Leo?

at least one with a brain in the news section...new to me...