Message from the President
The last few weeks have been busy with discussions on the proposed changes of the Foreign Business Act (FBA). Unfortunately there have been several reports and statements by Government officials and some members of the Thai Chamber of Commerce which have not always been reported correctly in the Thai press.
EABC has been in the forefront to counteract all intensions to restrict the FBA further. On the contrary we have been actively promoting a liberalisation of the FBA in particular in the service sector. In our position paper we have provided the Royal Thai Government with information and studies that clearly support that by liberalisation the service sector the economy can overcome the middle income trap. It is clearly supported by many well respected research institutions as well as the World Bank that the service sector is the key driver of economic growth in developing economies and no longer the manufacturing sector, which was the main growth engine in Thailand for many years.
During the Joint Luncheon of Foreign Chambers of Commerce organised by the JFCCT H.E. Prime Minister Prayut Chan-o-cha clearly stated that the FBA will not be touched but to the contrary will gradually be liberalized. At a recent briefing session at the Ministry of Commerce, the Minister of Commerce General Chatchai Sarikulya stated clearly that any FBA amendment would consider three major principles which are: investment promotion, simplification of business procedures for business operation and facilitation of trade and investment.
At the EABC luncheon with H.E. Deputy Prime Minister M.R. Pridiyathorn Devakula he also mentioned the new drive of the Government to make Thailand a trading hub by implement changes to the ROH. Also the plans to make Thailand a digital based economy have been received well and have been suggested by EABC for many years. We were told that the necessary changes in laws and regulations will be implemented quickly. At the same time the Government will also invest in huge but necessary infrastructure project to link Thailand with its ASEAN neighbours and beyond. Also some easing in the way of doing business in Thailand have been sighted and we strongly hope that these changes can jumpstart the economy.
It is even more pleasing to see that the Government is adopting phrases, policies and statements that we have been promoting since long like the liberalisation of services to jumpstart the economy, to overcome the middle income trap, improve competitiveness of the Thai economy, usage of ICT for economic and social developments to achieve greater productivity, improve energy efficiency just to mention a few. The next step for EABC will be to encourage the governments to re-engagement the negotiations of the Thai – EU Free Trade Agreement (FTA). For this EABC is preparing the launch of our 2015 Position Paper to support the proposals of the European business in Thailand for a more competitive economy with focus of AEC 2015. This will be the focus points for the coming months.
