National state enterprise holding company to be set up next year

The State Enterprise Policy Commission last week approved in principle the draft bill for governing and managing state enterprises and state enterprises’ securities. It will hold a focus group on the bill with relevant state enterprises soon, Kulit said. 

After that it will gather all opinions and is expected to submit them to the Cabinet in August or early September.

Then the bill will be submitted to the National Legislative Assembly for deliberation, and it might be passed into law in December. 

Therefore, the holding company is expected to be completely set up by the first quarter of next year.

Speaking at a seminar on “State Enterprise Reform, Thailand Reform” hosted by Chulalongkorn University’s economics faculty, Kulit said the holding entity would oversee 12 corporatised state enterprises, which include those listed on the stock market.

The draft bill comprises two main parts: the overseeing of state enterprises and the establishment of the holding entity. It is aimed at implementing the structural reform of all 56 state enterprises to improve performance efficiency, promote their good governance and boost their competitiveness.

Among the problems faced by state enterprises are lack of efficiency from operating under the “red tape” of state regulations, political intervention in their operations and their lack of clear-cut roles, Kulit said.

Banyong Pongpanich, a member of the State Enterprise Policy Commission, told the seminar that public participation was needed to support the successful implementation of the law.