Competitive thailand edges up in rankings

Thailand's overall competitiveness has moved up from 33rd to the 27th rank in "IMD's World Competitiveness 2008 report", which looked at 55 economies.

The United States remains No1 on the reputable competitiveness report prepared by the Swiss business school, but IMD professor Stephane Garelli said the country may be on top of the list for the last time.

"Singapore is closing the gap with the US, and 2008 might be the turning point where the US falls from its leadership of top competitors. Looking back over the 20-year history of competitiveness, we may learn some lessons from another leading country's experience - Japan," he said.

Japan was at the top when IMD first published its competitiveness ranking in 1989.

This year, following Singapore is Hong Kong, which is at the third spot, and which is followed by Switzerland, Luxembourg, Denmark, Australia, Canada, Sweden and the Netherlands - in that order.

Thailand's overall competitiveness had previously fallen consecutively from the 25th to the 29th rank, and the country was at No 33 last year.

The report measures four key components comprising economic performance, government efficiency, business efficiency and infrastructure. The Kingdom has improved its competitiveness in all four areas, though it remains poor in the infrastructure section - coming in at No 39, out of the 55 economies.

Among the weakest points of Thailand in infrastructure include its high health expenditure as a percentage of gross domestic product (GDP) (at the 55th rank), the number of broadband subscribers per capita (No 52), the number of inhabitants per physician and per nurse (No 51), research and development spending as a percentage of the GDP (No 51) and the number of Internet users (No 50).

Although Thailand has moved up in rank in business efficiency - from being 34th last year to  25th this year - the Swiss business school ranks the country's productivity and efficiency, a sub-factor of business efficiency, at almost the bottom of the list - No 48.

The report highlights the challenges for Thailand this year as the following:

n Tackle inflation

n Build up investor confidence by speeding up public-investment projects to better infrastructure.

n Improve energy efficiency.

n Improve competitiveness in industries.

n Establish mechanisms to support business adjustment in various sectors, including SMEs (Small and medium enterprises).