Brace for full Asean liberalisation: KRC
Thailand should brace itself for full liberalisation of services and investment demanded by the creation of an Asean economic community in 2015, according to Kasikorn Research Centre (KRC).
Economic integration aims to attract greater foreign direct investment (FDI) into the bloc's industrial and service sectors, as well as to make members more competitive with non-Asean countries such as China and India. The research house has highlighted three ways for Thailand to increase competitiveness ahead of full liberalisation: increasing the number of skilled labourers, reducing logistics costs and promoting research and development.Researchers said the number of skilled workers in Thailand fell short of demand in the industrial and service sectors, such as textiles, electronics, agro-industrial products, health and tourism. Sufficient qualified workers would be vital to improving productivity so as to maintain competitiveness and attract greater FDI. The centre said logistics costs were rather high. This resulted in businesses having high operational costs and suffering delays in doing business, which affects Thailand's competitiveness and diminishes the country's investment atmosphere. The state sector should urgently upgrade Thailand's logistics systems to conform with international standards, supporting its aim of becoming a trade hub for the Indochina region. Rules and regulations should be amended to be more favourable and convenient to businesses. Meanwhile, the state sector should support and increase R&D links between educational institutions and the business sector in order to create new innovations and implement them to benefit Thailand's business and industrial sectors, stimulate technological development and boost the production of goods with higher added value. Moreover, R&D of quality for Thai goods to attain international standards as well as pass consumer safety rules would not only help to increase the value of goods, improve production efficiency, reduce production costs and create a favourable climate for investment, it would also eradicate non-tariff barriers, preserve the domestic environment, improve consumer safety standards and create well-being for the populace throughout the country, KRC said. In 2015, an Asean economic community will be created. By then, it will have become a single market with a common manufacturing base where trade, services and investment will be liberalised, with free flows of skilled labour and freer flow of capital. Thailand should boost competitiveness in the global arena through closer collaboration between public and private sectors, KRC said. Its investment atmosphere should also be improved steadily in a more systematic way in a bid to draw more foreign direct investment from other countries, both within and outside Asean.
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