ส.อ.ท. เข้าพบนายกรัฐมนตรี หารือแนวทางกระตุ้น ศก. ไทยFTI Meets with the Prime Minister to Discuss Stimulating the Thai Economy

On Friday, August 23, 2024, the Federation of Thai Industries (FTI), led by Mr. Kriangkrai Theeranukul, the FTI Chairman, along with the FTI executive team, met with Ms. Phaethongtarn Shinawatra, the Prime Minister, and her team to present the strategies for stimulating the economy and elevating the production industry in Thailand and to drive collaborative policies at the Shinawatra 3 Building.

The FTI executive team attending the discussion included the following members:

1. Mr. Kriangkrai Theeranukul
   Chairman of the Federation of Thai Industries
   Chairman of the Industrial Promotion and Support Division

2. Mr. Thavee Piyapathana
   Senior Vice Chairman of the Federation of Thai Industries
   Chairman of the Provincial Industrial Promotion and Support Division

3. Dr. Komsan Laesilapjarern
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Global Standards Organization (GS1)

4. Mr. Chaiwat Kowawisarach
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Climate Change Institute

5. Mr. Thaworn Chonlatsatien
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Human Capability Enhancement Institute

6. Mr. Thanarak Phongphetra
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Agricultural Industry Institute

7. Mr. Pranon Thitavanroh
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Information and Communication Technology Institute for Industry

8. Ms. Pimjai Leeissaranukul
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Creative Industry and Soft Power Institute

9. Mr. Wiwat Hemmantharop
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Innovation Institute for Industry

10. Mr. Nava Chantanasurakhan
   Vice Chairman of the Federation of Thai Industries
   Chairman of the Corporate Communication Division

11. M.L. Piktong Thongyai
     Vice Chairman of the Federation of Thai Industries
     Chairman of the Economic and Academic Division

12. Mr. Wetit Chokpattana
     Vice Chairman of the Federation of Thai Industries
     Chairman of the ASEAN and Logistics Division

13. Mr. Suchart Chanthranarakraj
     Vice Chairman of the Federation of Thai Industries
     Chairman of the Labor Division

14. Ms. Pimnara Jiranitithanon
    Vice Chairman of the Federation of Thai Industries 
    Office of the Chairman

15. Mr. Adul Khaolao
     Vice Chairman of the Federation of Thai Industries 
     Office of the Chairman

16. Dr. Piyanut Malakul na Ayutthaya
     Vice Chairman of the Federation of Thai Industries
     Treasurer

17. Mr. Isareth Rattanadilok na Phuket
     Vice Chairman of the Federation of Thai Industries
     Registrar

18. Mr. Kritsana Imsang
     Secretary-General of the Federation of Thai Industries

19. Dr. Wiboon Raksasanjerngphon
     Executive Committee Member of the Federation of Thai Industries

20. Mr. Nakarn Tiwichawat
     Deputy Secretary-General of the Federation of Thai Industries

21. Mr. Amaret Franzen
     Committee Member of the Federation of Thai Industries

22. Ms. Parrarat Phetphakdee
     Director-General of the Federation of Thai Industries

23. Dr. Jengkrit Kanatharana
     Deputy Director-General

Mr. Kriangkrai Theeranukul, the Chairman of the Federation of Thai Industries, stated, “Today is a good opportunity for the Federation of Thai Industries to meet with the Prime Minister and her team to present 5 urgent proposals and seek collaborative ways to drive the country's economy together, which is something that the private sector has always emphasized, categorized into immediate, medium-term, and long-term measures.”

In terms of immediate measures, the FTI recommends the following:

1)  There must be protection for domestic industries against low-quality imports and market dumping by
   -  intensifying the detection of low-quality or non-standard products imported through customs checkpoints, ensuring product testing prior to import, increasing the number of X-ray machines for container inspection to prevent misdeclaration, and monitoring non-compliant products in the market. 
   -  strictly enforcing laws related to consumer protection and fair competition, including actions against wrongdoers who bring substandard products into the market. 
   -  issuing regulations to supervise foreign e-commerce platform providers to prevent the influx of non-compliant foreign products. 
   -  linking the government and business information services system, or National Single Window (NSW), to verify and facilitate the importation of items requiring permits.

2)  There must be promotion of products made in Thailand and products certified as Made in Thailand (MiT) by
   -  increasing the bidding advantage for MiT products via e-bidding from 5% to 10% for 2 years to create liquidity for Thai entrepreneurs. 
   -  requiring the procurement of products that meet industrial product standards (TIS) instead of referencing foreign standards to increase agency confidence in purchases.&
   -  issuing tax incentives for the private sector that purchases MiT products, allowing them to deduct purchase amounts as tax-deductible expenses at double the rate. 
   -  implementing subsidies for export expenses for MiT certified products to international markets, such as shipping costs, domestic transportation costs, etc.

3)  There should be reduction of production costs to enhance the competitiveness of the industrial sector through energy cost management, including 
   -  stabilizing electricity rates without increases or reducing the Ft rate to maintain production costs amid economic slowdown. 
   -  managing reserve capacity to not exceed appropriate levels by negotiating the postponement of new power plants in accordance with electricity demand and production capabilities. 
   -  considering the benefits and drawbacks of spreading costs into the future by extending power production contracts to reduce electricity costs burdens. 
   -  reducing the electricity usage guarantee to enhance liquidity in the industrial sector. 
   -  expediting the consideration of fund allocation processes to promote energy conservation and stimulate widespread energy-saving measures, especially for SMEs.

In terms of labor cost management 

   -  the minimum wage should be adjusted in accordance with the legal provisions outlined in Section 87 of the Labor Protection Act B.E. 2541 (1998), with provincial tripartite wage committees reviewing provincial minimum wage rates to be proposed to the Wage Commission aligned with local economic factors, inflation rates, GDP growth, employers’ payment capabilities, and labor efficiency.
   -  promoting skill-based wage adjustments (Pay By Skills) to simultaneously enhance labor productivity and income levels.
   -  pushing for labor productivity to be a national agenda, with the Ministry of Labor as the lead agency in implementing it.
   -  developing skills in labor training, including Upskill/Reskill/Multi-Skill/Future Skill to meet the demands of employers and labor markets, especially in the digital economy.
   -  collaborating between the government, private sector, and educational sector to create curricula that meet labor market demands.
   -  establishing a comprehensive Future Skill platform with budget support for training and career development.

4)  There should be support and development for SMEs through various approaches as follows
   -  issuing financial measures to enhance liquidity for Thai SMEs by relaxing the borrowing qualifications at points where SMEs encounter difficulties, such as looking at NPL history without collateral; addressing high-risk business sectors, and other criteria set by banks that hinder SMEs' access to loans.
   -  allocating specific budgets to assist SMEs undergoing debt restructuring to sustain their businesses, with additional consultations for business improvements and developments.
   -  relaxing credit approval conditions for SMEs that have been in credit bureau difficulties for more than a year, not using past credit bureau records as criteria for lending approval if the applicants are not NPLs on the date of loan application.
   -  issuing special loans to assist and promote SMEs with fixed interest rates of 2-3% for 3 years covering both investment and working capital.
   -  requesting financial institutions to allow for extended repayment terms as an option and to reduce other fees related to credit approvals to assist with liquidity.
   -  requesting that financial institutions and the Small Industry Credit Guarantee Corporation (SGC) set fair guarantee fees.

Additionally, the FTI is promoting and pushing SMEs towards Smart SMEs through 4 GO initiatives:

1.  GO Digital: Supporting investments in transitioning towards Digital Transformation 4.0 to enhance the competitiveness of the manufacturing sector and SMEs both centrally and regionally.
2.  GO Innovation: Establishing a central agency and strong regional business innovation centers to support R&D in critical industry sectors and find markets to support innovative products.
3.  GO Global: Creating international marketing opportunities for potential SMEs through Thai trade shows organized by the government globally, enhancing the recognition and popularity of Thailand's online trading platforms, and preparing SMEs for diverse entry into international markets.
4.  GO Green: Providing education to SMEs and supporting them in transitioning their businesses to green businesses, promoting funding for obtaining environmental certifications for SMEs, including competitive advantages in public procurement and taxes for environmentally friendly products.

5)  There should be promotion of border trade and development of logistics systems
   -  negotiating with neighboring countries to consider upgrading special trade facilitation points and customs checkpoints to permanent crossing points.
   -  proposing the establishment of a joint working committee between Thailand and Laos to enhance cooperation in transporting goods through the border checkpoint of Thanaleng in Laos to overcome transport limitations and obstacles from Thailand to Laos.
   -  remedying restrictions and obstacles from government policies and developing domestic railway networks.
   -  forming a joint public-private committee to outline strategic plans for developing and promoting the linkage of Thailand's rail network with neighboring countries and the region.
   -  enhancing the efficiency of import-export processes through air transport.

For the medium- and long-term implementation, the FTI has additional recommendations:

1)  There should be promotion of the automotive and parts industry to maintain Thailand's automotive manufacturing base through various methods as follows:
   -  maintaining and advancing the status as a manufacturing base for Future ICE (Future Internal Combustion Engine) vehicles to compete in the global market.
   -  expanding into foreign markets, such as accelerating free trade agreement (FTA) negotiations with countries still utilizing ICE engines, including the Middle East, South Africa, and South America.
   -  stimulating domestic automotive production, for example, supporting the upcoming excise tax structure for vehicles to be implemented in 2026; issuing measures to promote the production of Future ICE vehicles (Product champion, HEV, PHEV, REEV); encouraging government agencies to establish appropriate emission standards (Euro 5 for motorcycles and Euro 6 for large cars).
   -  enhancing the efficiency of manufacturing replacement parts (REM),
   -  developing a modern automotive and parts industry in preparation for carbon neutrality, consistently pushing policies to elevate Thai operators into the supply chain of modern automobiles effectively.
   -  establishing a support fund or tax measures to incentivize investments and prepare for carbon measure compliance.
   -  promoting the transformation of automotive parts into modern automotive industries and other potential sectors such as medical equipment, rail systems, aviation, and Robot & Automation, while creating mechanisms to match Thai automotive parts manufacturers with foreign counterparts to increase domestic production (Localization) and develop into power electronics properties.

2)  There should be development of the creative industry and soft power in Thailand through various sectors, such as:
The food industry
   -  focusing on enhancing standards, quality, and efficiency of the supply chain for Thailand to move from the 12th to the TOP 10 in global food exports in the future.
   -  opening standardized Thai restaurants abroad (B2B)
   -  promoting Thai ingredients and seasonings in global markets (B2C)
   -  leveraging influencers to create trends and demand for Thai food, boosting food tourism in Thailand.

The fashion industry
   -  aiming to create Thai style identity through promoting “THAINESS LIFESTYLE” via media presentations and developing labels that reflect Thai culture, such as “HAPPY THAI,” to increase the acceptance and accessibility of Thai fashion both domestically and internationally, and planning to develop Thailand into an international gem hub by enhancing the standards and quality of Thai gems for global market recognition.

The gaming industry
   -  developing and supporting the creation of Thai games to reach global standards with a goal of having Thai games rank in the TOP TEN of the global gaming sector within 5 years, such as having government agencies like the Digital Economy Promotion Office (DEPA) assess the value and investment opportunities and propose tax incentives for investments and the importation of related equipment.
   -  promoting the export of Thai games and supporting online marketing through central and long-term casting selectors.

Cultural tourism
   -  Chanthaburi province has been selected as a pilot province for promoting cultural tourism, with plans to support Soft Power across all provinces through media production such as “One Province, One Series.”

3)  There should be improvements to laws and regulations to promote ease of doing business and increase economic growth
   -  designating legal reform (Regulatory Reform) as a national agenda through mechanisms utilizing central legal amendments (Omnibus Laws) and Regulatory Guillotine.
   -  pushing for resolutions from the Legal Development Committee of the Office of the Council of State that the government supports, and fostering amendments to laws to reduce business operation barriers.

The meeting resolved to agree with the FTI's proposals, and once the new cabinet is established, it will assign responsibilities to expedite the proposals collectively and rejuvenate cooperative meetings between the public and private sectors by industry to drive industrial growth and yield more tangible results.

.............................................
Published by the Corporate Communications Division of the Federation of Thai Industries (Tel. 0-2345-1013)