EDITORIAL
Martial law not the only problem plaguing our SEZs
The Nation

BANGKOK: -- Thailand is struggling to get special economic zones off the ground

A few days ago, Prime Minister Prayut Chan-o-cha was reported to be "acknowledging" problems facing Thailand's special economic zones. But as expected, only the "usual suspect" was discussed when he met with members of the Policy Committee on Special Economic Zone Development. The meeting focused only on the impact of martial law, and that might belie the impression those responsible for Thailand's SEZs want to create - that everyone is on top of the scheme and ready to go for the kill.

The martial law is negatively affecting the SEZs, but it is just one of many problems plaguing the SEZs. Prayut vowed to address investors' concerns regarding martial law, yet he sounded more like someone wanting to say the right thing rather than someone who really knows what needs to be done. Thailand's SEZs have been facing an identity crisis, and a comprehensive review of the entire scheme is required.

In a strongly worded article on Thailand's SEZs, Kasemsant Weerakul, an academic and expert on the Asean Economic Community (AEC), pointed out several flaws in the scheme. First and foremost, he said the country was unclear on incentives and benefits and that alone is driving foreign investors away to SEZs in neighbouring countries. Then we seem to attach our SEZs too much to border trade, which can be a wrong approach. Last, but not least, Kasemsant said that land speculation should have been legally prohibited because it pushes investment costs up, thus discouraging investors and developers.

According to Kasemsant, SEZs require the most strategic thinking and vision, based exclusively on national interests. If SEZs are politicised one bit or launched merely as a showcase because the government needs to be seen as doing something, the scheme is doomed. If politicians seek to exploit SEZs through nepotism or land speculation, the projects will amount to little more than decorative flowers in development rhetoric.

Just as the existence of martial law can make potential investors sceptical, the lack of clear-cut incentives and management methods can further undermine their confidence. And the issue of incentives has evolved with time, meaning some old concepts may not work any more. In today's world, "incentives" have been complicated by access to new technology, cheap labour, labour migration, legal conveniences and political transparency.

Thai politics has somewhat placed SEZs in a no-man's land. Which is to say that while SEZs are an equivalent of a private company's crucial new product, whose market performance requires clear-cut accountability and responsibility, nobody really has to be taken to task if our SEZs are to become a big flop.

From top to bottom, the mechanism of Thailand's SEZs is poor compared with that of neighbouring nations.

Thailand is good at "writing" but very bad at "implementing". This characteristic flaw has hampered countless political reforms, mocked national development master plans and is threatening the SEZs as well.

At the last meeting between Prayut and the SEZs policy committee more SEZs were designated, to add to the ones declared earlier.

Should it be a cause for celebration or concern that 16 districts in five additional provinces have been earmarked for the second phase of Thailand's scrappy SEZ push?

Source: http://www.nationmultimedia.com/opinion/Martial-law-not-the-only-problem-plaguing-our-SEZs-30256441.html

-- The Nation 2015-03-21

A good place to start is to stop treating expats and people who works, contribute and pay taxes

in this country like a third class citizens at best, and a potential criminals at worst, with draconian

and archaic immigrations and visa rules befitting courtiers like Iran and N. Korea,

Let foreigner live and work in dignity in this country, allow them to own a piece of land

to build their house without lying and cheating about it...this is so wrong on so many

levels as Thais are... so yeah... start there.....

A good place to start is to stop treating expats and people who works, contribute and pay taxes

in this country like a third class citizens at best, and a potential criminals at worst, with draconian

and archaic immigrations and visa rules befitting courtiers like Iran and N. Korea,

Let foreigner live and work in dignity in this country, allow them to own a piece of land

to build their house without lying and cheating about it...this is so wrong on so many

levels as Thais are... so yeah... start there.....

of course it would be nice but those of us who know the way "thai's think and act" realise it wont happen.. Get ready for the "you are thai bashing mob"!

Edited March 21, 201511 yr by kingalfred

I don't know about SEZs but to be a member of ASEAN maybe the requirement should be all countries are democratic controlled and Juntas and self appointed heads of state banned, nothing to do with the topic, but it blends in well with the scenery.

A good place to start is to stop treating expats and people who works, contribute and pay taxes

in this country like a third class citizens at best, and a potential criminals at worst, with draconian

and archaic immigrations and visa rules befitting courtiers like Iran and N. Korea,

Let foreigner live and work in dignity in this country, allow them to own a piece of land

to build their house without lying and cheating about it...this is so wrong on so many

levels as Thais are... so yeah... start there.....

Wiser words have never been spoke. The real problem is that local businesses would feel threatened. Thailand does not want to change or innovate. We have stopped looking at expanding our work there. The rest of Asia holds much more promise.

>>Prayut vowed to address investors' concerns regarding martial law, yet he sounded more like someone wanting to say the right thing rather than someone who really knows what needs to be done. << Quote

Sums up all of Prauths doings very nicely!!

Don't sell Thai land to foreigners.

Kasemsant has made very astute observations and analyses. Hopefully, he is not Thai or he will be "invited" to visit the military, sign an appology, and never be heard from again.

Many of Gen. Prayut's projects indeed have amounted to "little more than decorative flowers in development rhetoric." He has failed to make massive government investments into the economy such as the SEZ's, seemingly more interested in projecting his image as the nation's savior than actually saving it from ANYTHING.

A good place to start is to stop treating expats and people who works, contribute and pay taxes

in this country like a third class citizens at best, and a potential criminals at worst, with draconian

and archaic immigrations and visa rules befitting courtiers like Iran and N. Korea,

Let foreigner live and work in dignity in this country, allow them to own a piece of land

to build their house without lying and cheating about it...this is so wrong on so many

levels as Thais are... so yeah... start there.....

Wiser words have never been spoke. The real problem is that local businesses would feel threatened. Thailand does not want to change or innovate. We have stopped looking at expanding our work there. The rest of Asia holds much more promise.

Yes, very wise words and I agree with your sentiment... but what on Earth has this got to do with SEZs which are targets for large scale corporate investment !!!