Panel urges end to price distortion via intervention

Economy February 20, 2014 00:00


THE NATIONAL Economic and Social Advisory Committee urges for an end of political intervention of any kind that could result in price distortion, as part of the economic reform. In an article by Tanit Sorat, vice chairman of the National Economic and Soc

In term of political intervention, he said political parties and governments should refrain from launching any populist policy to distort prices and costs, like the minimum wage or the rice-pledging scheme. To help farmers, new measures which do not affect the price and quality of the commodity are needed.
Corruption, which adds to business costs, should be solved. The National Anti-Corruption Commission should change its role to focus only on investigation corruption of politicians, while another anti-corruption body should be formed to prevent corruption of state enterprises and state officials.
He urged an innovative reform for the agricultural sector, to address income inequality. This could involve a value chain for a particular economic crop as well as the strengthening of community enterprises and agricultural markets.
SMEs should be encouraged to form clusters for higher competitiveness. Border trade should be promoted in a systematic way and the office of the international trade and exports promotion commission should be set up with collaboration among export-related agencies. 
Under the liberal trade and Asean Economic Community (AEC), industrial restructuring should be done, starting from education institutions and laws, while green industries and logistics should be promoted. Outdated laws should be reviewed and amended to encourage trade, investment, international logistics.