Experts split on PM’s hub dream

Experts split on PM's hub dream
Srettha Thavisin, the prime minister, declares his perception for Thailand at Government House next month. ( Photo: Chanat Katanyu )

Srettha Thavisin, the prime minister, just made his vision for Thailand’s coming. The schedule, which is titled” Ignite Thailand,” aims to make Thailand the world’s top hotspot for eight key industries, including financing, hospitality, health and wellness tourism, food and agriculture, aviation, logistics, potential mobility, and modern economy.

Financial analysts praised the vision, claiming that the government should continue to advance the country’s ability and that the plan could pave the way for a more sustainable recovery from the nation’s current economic slump.

Nonarit Bisonyabut, a senior economic researcher at the Thailand Development Research Institute ( TDRI), believes that making the country a regional hub for businesses and industries can help Thailand escape the middle-class trap.

” Thailand does find a way to public revenues in a more lasting way, as the government’s main issue is low economic growth,” he said.

SET Objectives

He urged state authorities to identify the areas that require immediate attention so that officials is concentrate their efforts on the issues and use resources more efficiently.

He remarked,” The resources for soft power promotion, for example, will never be sufficient, as long as the government only uses it to organize occasions,” and urged the government to use its resources more wisely.

For example, the government might want to spare a portion of the 500 billion ringgit budget for the digital budget initiative to help solve some of the country’s fundamental problems.

” It may miss the Land Bridge proposal if the state wants to promote the nation as the logistical hub. He continued,” It would save up some billion baht, which could be used to target border issues and address deficiencies in our regulations.”

” We are now variety one in the area in terms of commerce. We are also price-competitive with Singapore as a healthcare and health hub, especially in terms of surgery and birth.

Thailand could very well be a local hotspot for agriculture and food thanks to our affluent food traditions and our status as an exporter, he said,” we just need to rely on maintaining the quality.”

QUESTIONS AND RESPONSIBILITY

The scholar did, however, point out the difficulties that the other five sectors face.

Because of the fierce competition in the area, Mr. Nonarit claimed that the government’s ability as a hub for aircraft development is gradually diminishing.

Although the authorities intended to build aircraft maintenance depots at the airports in U-tapao and Chiang Rai-Mae Fah Luang, structure has been hampered by delays since the Covid-19 pandemic.

Because of its proximity to the Cambodia-Laos-Myanmar-Vietnam area, which is expected to expand rapidly over the next few years, Thailand is well-positioned to be a logistics hotspot. However, plans for a cross-country connection would only be feasible if they connected to either India or China on one end.

Because there is a lot of desire, he said,” If we can attach to India and southern China, it would be a great benefits.”

The Land Bridge mega-project, according to Mr. Nonarit, wo n’t significantly shorten transit times, unlike the Panama Canal and Egypt’s Suez Canal, according to the government.

Thailand has the ability to become the next hub for foreign funding, he said, especially given that China is plagued by various political issues.

The government does ask itself whether it is ready to transform the nation into a modern special economic zone and put a real emphasis on new businesses in order for it to become a hub of the modern economy.

Thailand can still be a hotspot for local investments, particularly for businesses and projects based in the CLMV area, he said, even though it will be impossible for it to do so in the next few years.

Given those restrictions, he urged the government to concentrate on its areas of expertise, such as food and commerce.

Nonarit: The government needs to concentrate.

Isares Rattanadilok Na Phuket, vice-chairman of the Federation of Thai Industries (FTI), expressed his satisfaction that the government is ultimately focusing on the main problem facing the nation.

” I want to see the government work with the private sector, just like the Joint Public and Private Sector Consultative Committee ( JPPSCC ) did,” said Mr. Isares.

According to Mr. Isares, if the state has a clear path, the private sector will then be able to help the nation compete with its neighbors. I believe that the government is beginning to recognize that the country needs better system to accommodate both innovative industries and tourists, he said.

Links to Laos via Thanaleng railway station, and onward to southeastern China and beyond can be improved thanks to changes to the country’s rail system. However, private organizations are frequently turned down by red tape because of it. In order to encourage private sector participation, he urged the government to relax the rules. The benefit of this administration is that the prime minister is knowledgeable about what the state wants, he added.

Isares: It’s time to established actionable targets.

The Wish

Varakorn Samakoses, an economical and finance professional and president of Dhurakij Pundit University, disagreed with the hub growth strategy, arguing that the idea of centres is outdated.

He claimed that the hub growth program has been discussed for a while, adding that the world today is more developed than that. Perhaps the top is the only person’s wish. Before committing to gateway development processes for another 20 to 30 years,” I believe the government should concentrate on short-term plans that are more suited to more recent issues,” said Mr. Varakorn. The premier wants to fulfill a dream, but his approach does n’t take into account the facts. We hardly ever hear another nations mention centres in this day and age.

Thailand, he said, has a lot of short-term issues that need to be resolved. This is why the government should survey the plan to develop the eight centers to see if it still aligns with the national development plan. The most crucial thing to learn in these two to three years is to understand how to use the money effectively and improve the quality of human tools, Mr. Varakorn continued.

Varakorn: Hub dream no longer relevant