EABC urges investment reform
The European business community is urging Thailand to reform its trade policies and liberalise its service sector in order to improve competitiveness and attract more investment.
The European Association for Business and Commerce (EABC) yesterday released the 2015 European business position paper outlining the areas of business that Thailand should improve to raise its competitiveness.
“Thailand has recently joined the ranks of upper-middle-income countries. It is crucial for Thailand to sustain its economic development and maintain competitiveness to compensate for the end of the Generalised System of Preferences, which expired in January,” EABC president RolfDieter Daniel said.
The EABC is also encouraging Thailand to resume its negotiations for a freetrade agreement with the EU, which were disrupted by domestic political unrest
“Other Asean countries are continuing their free-trade talks with the EU. It would be to Thailand’s disadvantage if it halted the plan to open negotiations with the EU,” Mr Daniel said.
The paper also suggests Thailand liberalise its service sector and improve traderelated standards to assure foreign investors that Thailand is still an attractive place.
“We don’t want any special treatment from the Thai government for European companies. What we want is a fair platform for all investors to play,” Mr Daniel said.
EABC vice-president Lyn Kok said it would be easy for foreign investors to move out of Thailand if they wished, but the EABC had put out its paper suggesting the Thai government improve some areas because the association wanted to ensure that Thailand, Asean’s second-largest economy, remained a competitive country in which to invest.
“Service sector liberalisation is crucial for Thailand to stay as a competitive country in the region. The Foreign Business Act could be a major tool for the government to liberalise its service sector to make the country’s more attractive in the eyes of foreign investors,” she said.
Mr Daniel added: “Liberalising the service sector would attract more investment and facilitate the transfer of technologies as well as bring in skills and expertise to develop research and development to create more innovation.”
The EABC also urged the Board of Investment to give some incentives for existing foreign companies in Thailand to encourage them to expand their investment, rather than giving incentives only for new investors.
“Most companies have to upgrade machines after investing here for six to seven years. But there is no incentive at all for them. This will deter investors from expanding business and bringing in new technology to Thailand,” Mrs Kok said.