Economy: Shifting Thailand into the 'third wave'

[webfact]

THAILAND ECONOMY
Shifting Thailand into the 'third wave'
Pichaya Changsorn
The Nation

BANGKOK: -- While Thailand has lost competitiveness in many industries, the government is making good progress in its plan to shift the Kingdom into the "third wave" of its economic development, Deputy Prime Minister MR Pridiyathorn Devakula said yesterday.

Citing various physical and digital infrastructure investment projects and new Board of Investment (BOI) incentive regimes, Pridiyathorn - who heads the government's economic team - said he was on a mission to uplift Thailand to become "a trading nation with competitive modern industries".

The deputy PM said that after decades of high export growth, the country had lost competitiveness in a lot of products, as evidenced by the negative export-growth figures in both 2013 and 2014, while it was highly likely further negative growth in overseas shipments would be witnessed again this year.

"We need to change," he said.

The BOI has revamped its investment packages to promote and attract modern and high-value added industries, such as biotechnology, nano-technology, medical devices and aerospace.

Thailand needs to move up, for example, from food processing to medical foods; from natural and synthetic rubber to technical and functional rubber products; from electrical appliances to "Internet of Things" products; and from automotive to aerospace industries, he said.

Pridiyathorn was speaking at a seminar titled "Thailand: A Regional Trading and Modern Industry Hub" organised by the BOI.

During the first five months of the year, the BOI approved 1,094 projects valued at Bt145 billion, of which 216 are in modern industries - more than double the earlier expectation of getting about 100 modern-industry projects in the period.

"This is a positive indicator that investors have strong confidence in the country and see the future of these modern industries in Thailand," he said.

The approved modern-industry projects include those in the BOI categories of digital-economy projects; science, technology and innovation projects; medical products; speciality materials and eco-friendly products; electronics projects, such as control and measurement, and parts; automotive projects, such as engine parts; and human-resource development and regional training centres.

"This can be the third wave of what we call modern industries," he told the seminar.

The deputy prime minister also elaborated on the government's infrastructure development plan, including the expansion of dual-track railways, and its "digital economy" programme, which includes expansion of the nationwide broadband network and a revamp of related laws and regulations to facilitate electronic transactions.

In regard to the government's "trading nation" policy, during the first five months of the year, the BOI received 14 applications for international trading centres and four applications to establish international headquarters, for projects valued at Bt177 million and Bt149 million respectively.

"We expect more to come. We believe we will become the international trading hub of Asia," he said.

Source: http://www.nationmultimedia.com/business/Shifting-Thailand-into-the-third-wave-30263457.html


-- The Nation 2015-07-01

[NeverSure]

"BANGKOK: -- While Thailand has lost competitiveness in many industries..."

This is the part that's true. The rest of the but, but, but is what they want people to think is true. What a waste of ink digits.

[CaptHaddock]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

[Praematura]

"The BOI has revamped its investment packages to promote and attract modern and high-value added industries, such as biotechnology, nano-technology, medical devices and aerospace."

Lol. These people can't competitively manufacture t-shirts or competitively grow rice. Not to mention destroying their coastal system with pollution, which will eventually leave the lowest of the low here. Nano tech, that's THE most ridiculous thing I've heard on this forum.

What they need to do is legalize medical marijuana, casinos and register their 2m hookers and tax it all. I think the OP already got his hands on some of that medical marijuana when he wrote this article.

[trogers]

Let's try catching up on the 2nd wave by educating those still rubbing trunks of trees for digits to bet on the next lottery draw.

[BigBadGeordie]

Let's try catching up on the 2nd wave by educating those still rubbing trunks of trees for digits to bet on the next lottery draw.

Have you seen them doing this today? Given that it's the 1st July, I was looking for a tip!

[PatOngo]

I only see a shift into the Honda Wave.

[trogers]

Let's try catching up on the 2nd wave by educating those still rubbing trunks of trees for digits to bet on the next lottery draw.

Have you seen them doing this today? Given that it's the 1st July, I was looking for a tip!

My tip to those who asks - buy all the double digits, from 00 to 99, and you would surely hit the prize.

[ikke]

This government really think they invented the wheel.... what a kindergarten.

Economy is still going down , every single day.

Big companies, also automotive are leaving Thailand.

Boi only supports high tech investments , while they should invest depending on amount of workers you employ, but yes, they let us believe in Thailand there is no unemployment....

And ones again they need to use the word "hub" 5555

[Cake Monster]

Tsunami wave of despair at an ailing and weakening economy

For wave 3 there will be a huge demand for skills which will never be atained in the current education system.

[soalbundy]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

How right you are. My Thai/British 7 year old son was causing some class disruption at school,nothing too serious but he talks a lot,answers the teacher back and loses interest quickly. The woman teacher made an appointment for him to see a children's doctor at the local hospital. Yesterday we all went along, after a two hour examination the doctor said that there is nothing wrong with him but he had a very high IQ which made the normal class very boring for him he should jump up two classes. The teacher asked if the IQ could be brought DOWN to which the doctor answered sarcastically, '' NO,one is either average or intelligent, or sometimes'', he said looking directly at the teacher, ''stupid''.

[Eric Loh]

Has this economic czar make any significant contribution so far. He move and talk fast as I didn't see the first and second waves.

[Colabamumbai]

The "Third wave" before this ship is sinking, country overboard.

[LuckyNo4]

when they say 3rd wave do they mean like this?

[mommysboy]

Reminds me of the internet out here, dial up was rubbish, they moved on to 2G which was rubbish, broadband rubbish, 3G rubbish. But the next one will be super fantastic, bright future. Rubbish

[shirtless]

How can a country move forward when 90% of the population cannot critically think , They need to adopt there old flag with the white elephant on it.

[SOUTHERNSTAR]

If you can't swim you can drown in waves.

[Thai at Heart]

Thing is, they need to attract the next wave of single industry to become a centre for it within ASEAN.

Cars and petrochemicals brought massive benefits. But that took 30 years.

By the recent rate that would have meant 6 coups. They have screwed the pooch.

[Thai at Heart]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

How right you are. My Thai/British 7 year old son was causing some class disruption at school,nothing too serious but he talks a lot,answers the teacher back and loses interest quickly. The woman teacher made an appointment for him to see a children's doctor at the local hospital. Yesterday we all went along, after a two hour examination the doctor said that there is nothing wrong with him but he had a very high IQ which made the normal class very boring for him he should jump up two classes. The teacher asked if the IQ could be brought DOWN to which the doctor answered sarcastically, '' NO,one is either average or intelligent, or sometimes'', he said looking directly at the teacher, ''stupid''.

That sadly says it all.

[slapout]

i have noteded that leaders/managers of stupids is they feel threathened by anyone smarter than themselves so they hire/promote out of this poll of ''darkness''

[bruceybonus]

A lot of Thais seems to suffer from the Dunning Kruger effect

[torpedo1970]

said he was on a mission to uplift Thailand to become "a trading nation with competitive modern industries".

such as biotechnology, nano-technology, medical devices and aerospace.

Good luck to him.... he will need it....

a upgrade of the education system would be a good start!!!

[h90]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

China has no real Democracy and doing well.

You need education or cheap labor, no corruption and good infrastructure.

Thailand is not so bad on the infrastructure.....But if you have some production machines and sometimes the electric is missing for 2-3 seconds (1 second the machine might be able to do) than you really love it.....

[CaptHaddock]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

China has no real Democracy and doing well.

You need education or cheap labor, no corruption and good infrastructure.

Thailand is not so bad on the infrastructure.....But if you have some production machines and sometimes the electric is missing for 2-3 seconds (1 second the machine might be able to do) than you really love it.....

I didn't say that Thailand needs to have democracy. I merely pointed out that fear of pressure to democratize is one reason, among many, that Thailand refuses to develop a first-world education system, which it does need if it is to compete in high tech industries.

China doesn't have democracy, but it does have areas like Shanghai with first world-level education. Published research in China has now passed that of Japan, although the quality of that research probably does not not approach that of Japan or the US. China is doing well compared to its own past, but, to keep it in perspective, per capita GDP in China is currently slightly lower than Thailand.

Infrastructure is necessary, but not sufficient, to become a fully-developed economy. What is necessary is innovation for which high-quality education is required. Singapore, with its 5 million people, has two universities among the top ten in Asia. Thailand's universities keep sliding down in the rankings within Asia. Thailand is not even keeping pace, much less surpassing its neighbors in education.

The past thirty years of high growth in Thailand have been based just on renting out cheap labor, migrated from the agricultural sector, to foreign companies. That strategy has produced a big leap in living standards compared to two generations ago, but it not going to be enough get Thailand into high tech industries. After 30 years of making autos and hard drives for foreign companies there is not a single Thai company that makes and exports either of those products, unlike, say, Korea. Thailand's exports, other than products of foreign companies, are just food products and rubber, the same as 50 years ago. The Thai elite is content to cash in on renting out the lower classes and is not going to make the necessary changes to compete with the fully-developed countries.

[Thai at Heart]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

China has no real Democracy and doing well.

You need education or cheap labor, no corruption and good infrastructure.

Thailand is not so bad on the infrastructure.....But if you have some production machines and sometimes the electric is missing for 2-3 seconds (1 second the machine might be able to do) than you really love it.....

Well, China has more or less reached the end of its journey in this phase of growth. Next is it needs to find sufficient demand within its own borders. One might suggest that for China to take the next step, democracy is what is needed.....

Thailand has really screwed the pooch with its coups and riots over the last 10 years. Investors hate this type of stuff and it will hurt in the end, because the best way for Thailand to grow ahs been to attract FDI. But what FDI can it attract now? It has automobiles, electronics and petrochemicals maxed out as a construction or manufacturing centre. Note Thailand designs or invents little.

So what market is next? Finance. HoHo. Logistics? Closed market. lol. Biotech. Oh dear, don't make me giggle...Software....Sorry, please....its too much.

[h90]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

How right you are. My Thai/British 7 year old son was causing some class disruption at school,nothing too serious but he talks a lot,answers the teacher back and loses interest quickly. The woman teacher made an appointment for him to see a children's doctor at the local hospital. Yesterday we all went along, after a two hour examination the doctor said that there is nothing wrong with him but he had a very high IQ which made the normal class very boring for him he should jump up two classes. The teacher asked if the IQ could be brought DOWN to which the doctor answered sarcastically, '' NO,one is either average or intelligent, or sometimes'', he said looking directly at the teacher, ''stupid''.

Priceless.....Obvious the Doc was smart. I bet the teacher said thank you and didn't understood the comment.

And I don't want to know how many kids get some medication because they disturb the class....

[h90]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

China has no real Democracy and doing well.

You need education or cheap labor, no corruption and good infrastructure.

Thailand is not so bad on the infrastructure.....But if you have some production machines and sometimes the electric is missing for 2-3 seconds (1 second the machine might be able to do) than you really love it.....

I didn't say that Thailand needs to have democracy. I merely pointed out that fear of pressure to democratize is one reason, among many, that Thailand refuses to develop a first-world education system, which it does need if it is to compete in high tech industries.

China doesn't have democracy, but it does have areas like Shanghai with first world-level education. Published research in China has now passed that of Japan, although the quality of that research probably does not not approach that of Japan or the US. China is doing well compared to its own past, but, to keep it in perspective, per capita GDP in China is currently slightly lower than Thailand.

Infrastructure is necessary, but not sufficient, to become a fully-developed economy. What is necessary is innovation for which high-quality education is required. Singapore, with its 5 million people, has two universities among the top ten in Asia. Thailand's universities keep sliding down in the rankings within Asia. Thailand is not even keeping pace, much less surpassing its neighbors in education.

The past thirty years of high growth in Thailand have been based just on renting out cheap labor, migrated from the agricultural sector, to foreign companies. That strategy has produced a big leap in living standards compared to two generations ago, but it not going to be enough get Thailand into high tech industries. After 30 years of making autos and hard drives for foreign companies there is not a single Thai company that makes and exports either of those products, unlike, say, Korea. Thailand's exports, other than products of foreign companies, are just food products and rubber, the same as 50 years ago. The Thai elite is content to cash in on renting out the lower classes and is not going to make the necessary changes to compete with the fully-developed countries.

While I agree in general there are a few things I don't agree: "Thailand is not even keeping pace, much less surpassing its neighbors in education." While I agree that there a big problems in the education but which of the neighbours are surpassing Thailand? Malaysia is doing OK, but a big part of the population is very resistant to education, Lao, Myanmar or Cambodia?

Thailand is exporting a lot cars and car parts. Only they don't have own brands, but when I look to Europe only Germany, Italy and France has own brands (I may forgot some small companies) all others are since a long time just brands for sale but belong to one of few the big companies.

[ratcatcher]

when they say 3rd wave do they mean like this?

No,they mean like these people waving. Only instead of a 3rd wave it was their last wave.

Thailand, just like the ship. Unsinkable, as it's in the good hands of people who know what they are doing.

[CaptHaddock]

They would have to raise the educational standards to support innovation of which Thailand currently has zero. Hard to see how that would happen. The elite do not want an educated public demanding rights and pushing for real democracy like Korea in the 80's.

China has no real Democracy and doing well.

You need education or cheap labor, no corruption and good infrastructure.

Thailand is not so bad on the infrastructure.....But if you have some production machines and sometimes the electric is missing for 2-3 seconds (1 second the machine might be able to do) than you really love it.....

I didn't say that Thailand needs to have democracy. I merely pointed out that fear of pressure to democratize is one reason, among many, that Thailand refuses to develop a first-world education system, which it does need if it is to compete in high tech industries.

China doesn't have democracy, but it does have areas like Shanghai with first world-level education. Published research in China has now passed that of Japan, although the quality of that research probably does not not approach that of Japan or the US. China is doing well compared to its own past, but, to keep it in perspective, per capita GDP in China is currently slightly lower than Thailand.

Infrastructure is necessary, but not sufficient, to become a fully-developed economy. What is necessary is innovation for which high-quality education is required. Singapore, with its 5 million people, has two universities among the top ten in Asia. Thailand's universities keep sliding down in the rankings within Asia. Thailand is not even keeping pace, much less surpassing its neighbors in education.

The past thirty years of high growth in Thailand have been based just on renting out cheap labor, migrated from the agricultural sector, to foreign companies. That strategy has produced a big leap in living standards compared to two generations ago, but it not going to be enough get Thailand into high tech industries. After 30 years of making autos and hard drives for foreign companies there is not a single Thai company that makes and exports either of those products, unlike, say, Korea. Thailand's exports, other than products of foreign companies, are just food products and rubber, the same as 50 years ago. The Thai elite is content to cash in on renting out the lower classes and is not going to make the necessary changes to compete with the fully-developed countries.

While I agree in general there are a few things I don't agree: "Thailand is not even keeping pace, much less surpassing its neighbors in education." While I agree that there a big problems in the education but which of the neighbours are surpassing Thailand? Malaysia is doing OK, but a big part of the population is very resistant to education, Lao, Myanmar or Cambodia?

Thailand is exporting a lot cars and car parts. Only they don't have own brands, but when I look to Europe only Germany, Italy and France has own brands (I may forgot some small companies) all others are since a long time just brands for sale but belong to one of few the big companies.

In the 2012 PISA scores Thailand scored number 50 out of 65.. The only participating Asian country that scored lower was Malaysia at 52. The top seven countries are all Asian.

http://www.theguardian.com/news/datablog/2013/dec/03/pisa-results-country-best-reading-maths-science

The owners of the manufacturing companies get the profits while the workers just get (low) wages. The S. Koreans insisted on technology transfer when they allowed Japanese auto companies to open plants there. Now they export their own competitive brands internationally. When China hired Siemens to build their first bullet train in Shanghai they insisted on technology transfer and recently they provided the low bid against Siemens to build a bullet train in California. Thailand has not only failed to develop any new technology, but they have failed even to transfer existing technology so that they can build Thai-owned companies for high-value added export. The reason is that Thai companies do not want to compete internationally. They are content to export food products and rent out cheap labor.

The idea that Thailand will compete in new technologies like nanotech is laughable.

[MockingJay]

"We believe we will become the international trading hub of Asia"

Oh, thank you, thank you, thank you!!!! I was waiting such a long time for yet another "Thailand will be hub of...." statement. What a relief!!! I am assured that my daily egesta will be discharged in a much smoother way now, knowing such a bright hub future lies ahead for Thailand...

Edited July 1, 2015 by MockingJay