Govt set to promote creative economy

To promote a creative economy driven by innovation and competition, the government will support nine industries and services, Arkom Termpitayapaisit, deputy secretary-general of the NESDB, told the "CEO Forum" on Monday.

They are crafts, performing arts, film, publishing, broadcasting, architecture, advertising, design and fashion. Their market value has increased steady, rising to Bt840.6 billion in 2006 from Bt654.78 billion in 2002. Their economic value currently represents 10-12 per cent of gross domestic product (GDP), about the same size as the agricultural sector, said Arkom.

As economic growth driven by cheap labour has almost come to an end, the country needs to move to industries and services with high added value, he added.

Kirida Bhaopichitr, the World Bank's country economist, urged the new government in the short term to improve business sentiment, streamline bureaucratic procedure, improve business incentives and reduce price controls. The government also needs to pass laws and regulations that promote investment and to revise the Foreign Business Act.

She said Thailand had impressively made the transition to a middle-income country over the past 25 years. "Without productivity improvements, the country faces real challenges in becoming a high-income country," she added.

Kobsak Pootrakul, executive director of the SET Research Institute, suggested that firms should not make aggressive investments or rush to buy financial assets domestically or abroad in the current highly volatile market.

He said the US financial crisis would have a significant impact on the global economy, but some exports of basic necessities would still do well.

Suvit Maesincee, professor of marketing at the Sasin Graduate Institute of Business Administration, was pessimistic about the government's ability to pursue good policies due to its weakening political clout.

The Cabinet yesterday discussed a draft of government policies that will be submitted to Parliament later.