What the next government should do to boost the business environment in Thailand

With the general election 21 days away, they shared their expectations and recommendations for the next government with The Nation.

In the run-up to the election, each party has unveiled an array of policies, promising Thai citizens a better quality of life.

The executives, from different industries, agreed that all political parties had good intentions to govern the country.

However, they said that it is too early to tell which policy would be better.

They emphasised that while these policies may appear to be good on paper, there was no guarantee the results would match the claims. Therefore, additional proof is required to demonstrate the benefits of these policies.

They hoped that all parties would follow through on their promises and take the necessary steps to make those policies a reality.

 

Change in regulations

Chompoonoot Pathomporn, chief executive officer of LH Bank, said that Thailand's economy is currently showing positive signs of growth, owing to the efforts of the current government and the public sector to do whatever was necessary to keep the economy afloat.

However, she said she would like to see the new government consider changing some regulations to make it easier to do business.

She said the laws should be simplified and made less burdensome for both Thais and international businesses.

Her thoughts were shared by Kriangkrai Thiennukul, president of the Federation of Thai Industries, who has always complained about Thailand's overburdened business laws and regulations. These difficulties discourage foreign companies from investing in the kingdom, and instead they turn to Thailand's neighbour.

Support for SMEs

Wisan Wanasaksrisakul, CEO of Warrix, said that he would like to see SMEs continue to grow under the new government.

He noted that in the past, government policies to support SMEs had been quite ambiguous. Money was being distributed without proper strategies and guidelines. As a result, it was not surprising that SMEs had failed and the government had squandered the nation's resources, he said.

He proposed that the government consider his idea for a SMEs National Score.

The system is similar to how students are rewarded in school for getting good grades, he explained, adding that the government must set up big data to collect information on Thai SMEs' to see how healthy their businesses are, the problems they face, and what they really need to do to move forward.

He said big data would help the government collect taxes more effectively.

As a formal SME making sportswear, Wisan noted that he understands how difficult it is for Thai SMEs to grow their business and become large corporations.

 

Tackling the funding problem

"The government must improve access to bank funding sources for SMEs. There must be a policy to assist SMEs in obtaining funds to develop technology or software. This will assist SMEs in building their own strength and competitiveness, as well as long-term sustainable growth, benefiting Thailand's overall economic growth," he said.

He believes that Thai SMEs have excellent ideas and also the potential to compete. 

Unfortunately, the majority of them lacked funding and eventually failed. Meanwhile, some family businesses with no budget issues are unable to turn around due to a lack of good advisers.

The government should have assistance plans with clear strategies, a wealth of useful information, and guidelines for effective resource utilisation, he said.

"If possible, I would like to see the government implement systematic financial liberalisation to promote free and fair competition." Allowing foreign banks to compete would provide SMEs with options for accessing capital at lower interest rates than the current rate of around 6%," Wisan said.

 

Let provinces decide minimum wage

Worachat Luxkanalode, Grab Thailand's country head, said that his concerns were about minimum wage policies.

He agreed on the need to raise the minimum wage so that employees could cope with the rising cost of living caused by inflation and high energy prices.

However, he pointed out that not all businesses can afford to raise wages at the same rate.

He advised the new government to establish clear criteria and guidelines for each business to raise wages.

In addition, the central government should let the provincial governor decide what wage rate is most appropriate for them, he suggested.

 

Improving aviation

Patee Sararin, CEO and co-founder of Thai full-service airline Really Cool, said that regardless of which party forms the new government, he expects things to improve and keep getting better.

"I personally am eager to work with the new government. I can do whatever is necessary to meet the needs of the country," he noted. 

He said he would like to work as an adviser at the Transport Ministry, where he could use his over 30 years of airline industry experience to improve Thai aviation.

He believes the country's aviation industry is still behind global standards, allowing foreigners to exploit the Thai aviation industry.

"Now that our aviation industry is recovering, we can't do the same thing and go back to the old norms. We have to improve and be better. Thai aviation has many things to adjust in order to attract more tourists to the country, which will increase our tourism and service industry revenue," Patee said.

Thailand's general election will take place on May 14. Over 6,000 candidates from approximately 70 parties are running for seats in the House of Representatives.