National trade survival depends on global competitiveness and more and more governments are driving the policy message home with exclusive quality awards.

Business in many countries has embraced these awards. Singapore is one regional nation that has convinced both its private and public sectors of the significance of a quality award and how it can affect the competitiveness of the whole country.

Thailand, however, still has much to do.

As many as 70 countries offer quality awards mirroring the United States and its Malcolm Baldrige National Quality Award.

The Baldrige award was initiated in 1988 and named for the secretary of commerce from 1981 until his death in a rodeo accident in 1987. It aims to keep the US at the pinnacle of "product and process quality" that has been "challenged strongly and sometimes successfully by foreign competition".

To qualify for consideration a company has to show leadership, strategic planning, customer and market focus, information and analysis, human-resource focus, process management and business results.

The city-state's version is the Singapore Quality Award. It has such cachet that companies are willing to dedicate as long as seven years to achieving one.

In its eleventh year, twenty-five 2006 Singapore awards were handed out. The winners included the Prison Service, its Subordinate Courts, and Teckwah Industrial.

Thailand has its own Thailand Quality Award. The Thailand Productivity Institute administers it.

However, it has struggled to catch the imagination of corporate Thailand, although it has started to establish itself within the past five years. Nevertheless, only two awards have been handed out - to Thai Acrylic Fibre in 2002 and Thai Paper a year later.

One reason offered for the lack of interest is the plethora of similar awards that somewhat dulls its importance.

"Not many companies know what the quality award is and how important it can be to their business. Therefore, they don't want to spend time, effort and money winning one as long as their businesses still operate okay," says Chaiyaboon Brothers Group managing director Pattanachai Kulasiriswad. The company has achieved the Thailand Quality Class, a prerequisite to achieving the full quality award.

Political problems are blamed for low awareness of the award as is inconsistency and a lack of continuity. In addition there is a perception that if government agencies provide help to organisations - particularly those in the private sector - to achieve award status, then bribery must be involved.

Singapore has its Standards, Productivity and Innovation Board - or Spring - which provides support for those seeking recognition through a national quality award.

"In Singapore, Spring helps guide interested organisations from the day they apply for the award until they achieve it. This means they can accelerate their development. Yet, this never happens in Thailand.

"The Thailand Productivity Institute guides us at a certain level. The rest is trial and error ourselves," Pattanachai adds.

Bad data collection causing difficulty in tracking how a company really performs compared with international standards and Thais' "easy-going behaviour" are big obstacles, says consultant Sangvorn Rutnarak, a former Thailand Productivity Institute deputy director.

A lack of effort on the part of government administrators is blamed, too.

Pattanachai notes their lack of participation in award events. At Singapore's award ceremony on October 12, Prime Minister's Office Minister Lim Swee Say presided. The award ceremony also attracts high-ranking executives.

On this point Sangvorn adds that deputy prime ministers not assigned to a specific portfolio area should be out promoting the award. Since they are not assigned to a specific sector, no one will suspect favouritism.

Another solution Thailand is promoting is regularly arranged seminars and workshops. It has established the Public Service Management Quality Award, under which public agencies compete for organisational excellence. It employs the same criteria as the quality award.

The government hopes the reputation of the public-service award will rub off on the quality awards and interest will be ignited.

Sangvorn and Pattanachai agree. So, too, do Charoen Kaewsuksai, assistant managing director of CP Retailing and Marketing, and PTT Plc Rayong Gas Plant vice president Charoonrith Khampanya.

They all think the public-service version will increase competitiveness in the Thai bureaucracy.

Although the quality award is not a raging success yet, companies are beginning to realise its importance and are willing to make an effort to achieve the honour.

"Although the quality award is not outstanding here, I still believe in it and realise it will eventually result in long-term benefits to my company. The award helps organise companies from all angles and this eventually results in a good image and great financial benefits," says Charoonrith.

"It's important if one wants to go forward and stand strong in the global arena. At least, the global business world recognises the quality award is the same here as its international cousins."

Global business competitiveness has become critical in this country. The International Institute for Management and Development in Switzerland says Thailand slipped five places to 32nd in the world rankings. Singapore is No 3.

The quality award could be one way to lift competitiveness to world standards, but it will require corporation from everyone - public and private.

Nitida Asawanipont

The Nation

SINGAPORE