Speaking at a roundtable meeting on the "Agenda for the new government" held by Krungthep Turakij newspaper, representatives from the banking, retail, property, tourism, trade and telecom sectors reached a consensus that the country's business laws and regulations needed urgent revision.

Thailand has problems enforcing laws and regulations such as the Alien Business Act and the Competition Act. In addition, free-trade agreements will soon push the country to open up to foreign investors and allow them to do business more freely in the Kingdom.

Boonchai Chokewatana, president of Saha Pathanapibul Plc and chairman of the Thai Chamber of Commerce's committee on wholesale and retail business, urged the next government to adopt a fair retail Act. It should also close the city-planning loophole that enables municipalities to allow the opening of large retail stores in their constitutional areas.

This proposal is aimed at regulating the expansion of giant superstores that threaten small businesses. The government should also review the number of current retailers to determine whether they are sufficient, he said.

"Now there are about 200 large retail stores across the country," said Boonchai, who added these would come to be seen as monopolies because they have such high bargaining power in the market.

He said the government had been negligent regarding the retail Act for many years. This had resulted in protests by small retailers against the giant international chains. "Now large foreign retailers with investment of more than Bt100 million dominate 50 per cent of the total domestic retail market."

He said the Competition Act seemed to exacerbate unfair business, but the authorities had not dared to interpret the law. When protests happened, the courts had been unable to define "market domination".

For the country's social stability, Boonchai also proposed a "good person" index in addition to the consumer confidence and industry confidence indices.

Buntoon Wongseelashote, vice chairman of the chamber's committee on trade rules and international trade, suggested that the next government reduce corporate income tax from its current annual rate of 30 per cent to "any appropriate level" that would provide a competitive edge.

In Singapore the rate is about 20 per cent, while in Malaysia it is expected to be reduced from 28 per cent to 25 per cent.

He said the new government should make the Alien Business Act clearer in response to upcoming free-trade agreements in many industries.

Also, punishment for violators of the Competition Act should be civil rather than criminal, he said.

Chainid Ngow-sirimanee, managing director of Property Perfect Plc, said the electric train projects that will link central Bangkok to surrounding areas should be completed as quickly as possible.

Bangkok's neighbours Pathum Thani, Samut Prakan and Nonthaburi should draw up city plans similar to those in tourist destinations Chiang Mai, Pattaya, Rayong, Phuket and Prachaup Khiri Khan, he said. "City planning could help control the expansion of the large retail stores."

Chainid also said the new government should assist people in buying their first home through special loans at low interest rates, lower personal income tax and a reduction in property transfer fees.

Dr Bunluasak Pussarungsri, vice president and deputy manager of Bangkok Bank Plc, said the next government should integrate the work of financial regulatory bodies - including the Securities and Exchange Commission, the Bank of Thailand, the Stock Exchange of Thailand and the Insurance Department - in order to regulate financial businesses.

There is no regulatory body for non-bank companies, but organisations offering financial products and services are increasing in number, he said. There should be a committee with representatives from various bodies to direct and oversee financial activities.

He said the government should set up a master plan to oversee all markets, including financial, capital and insurance. The country should also find ways to "improve and develop" in preparation for doing more business with Brazil, Russia, India and China, which have increasing market influence.

Bunluasak said the Kingdom needed enforceable competition and property rights legislation or it would fall behind in product development.

Thana Thienachariya, chief commercial officer of Total Access Communication Plc, was satisfied with the current situation as the telecom sector already had an independent regulatory body, the National Telecommunication Commission (NTC). "Now, the sector can be free from political interference," he said.

He added that whenever the new government was installed, the NTC would proceed with issuing new rules and regulations for the telecom sector.

Thana said the new government should set up independent regulatory bodies for each business sector. "The more independent bodies [that are] not subject to political intervention, the more the country develops," he said.

In the telecom sector the country neither wins nor loses Thana said, because most of the major players are global companies that put a huge amount of money into their business. "What the country can do is make the market as fair as possible and then collect fees from corporations," he said.

Kongkrit Hiranyakit, president of the Tourism Council of Thailand, said there should be a body of state and private agencies to direct and regulate the tourism industry.

He said there are no representatives from the tourism industry on corporate boards important to the industry like Thai Airways International.

"The country should have a tourism state authority so development, investment and management of destinations will be on the right track," Kongkrit said.

Sasithorn Ongdee

The Nation