Commerce Minister Krirk-krai Jirapaet yesterday urged small indigenous retailers to modernise so they could better cope with intense competition in a vast retail sector dominated by multinational companies.

Speaking at a seminar organised by Nation Multimedia Group in Nakhon Ratchasima, the minister said local operators would not be able to survive the competition unless they became modern retail operators who constantly improved customer service.

To ease competitive pressures on small retail operators nationwide, the government is finalising a new retail bill for enactment by the National Legislative Assembly (NLA).

The proposed law will restrict further expansion of large retail outlets in city areas by imposing a zoning system. It will also require the establishment of a multi-agency committee to regulate the retail industry.

Krirk-krai said some wording in the draft legislation was being amended. The bill is expected to be submitted to the Cabinet for preliminary approval next week.

Afterwards it will be reviewed by the Council of State and forwarded to the NLA. The bill is expected to become law around June.

The minister said small retail operators, who have been hit hard by rapid expansion of giant retail multinational companies, should not expect the proposed law to solve all problems.

In addition, he said, the government has no legal authority to stop retailers opening new outlets if their projects do not violate existing law.

Meanwhile, Kirkrai said the Northeast accounted for one-third of the country's population but had the lowest per-capita income due to a wide income-distribution gap.

Since half the northeastern population are farmers, the government has adopted market-intervention measures to shore up prices of various crops, especially rice and tapioca, to improve their economic status.

The Nation

Nakhon Ratchasima