Ex-PM proposes reforms amid global shifts

Former prime minister Thaksin Shinawatra has proposed economic reform and suggested Thailand be prepared for geopolitical change.
Thaksin was speaking at the Forbes Global CEO Conference on Thursday night at the Ritz Carlton in Bangkok.
Now in its 22nd year, the conference convenes world-leading CEOs, tycoons, entrepreneurs, investors, and thought leaders to discuss key issues of global concern and build new partnerships.
During the finale and Gala Dinner Session, Thaksin was invited to have a one-on-one dialogue with Steve Forbes, Chairman and Editor-in-Chief of Forbes Media.
The former PM proposed several economic reforms to help boost Thailand’s economy and suggested that the Thai government prepare for upcoming geopolitical consequences.
Thaksin said that Thailand’s economy had not developed much in the past decade because the central bank was overly concerned about the country’s economic problems.
As a result, many commercial banks that were under the central bank’s supervision did not give loans to small enterprises and those in need, causing a lack of cash flow in the country, he said.
Therefore, the central bank is only duty-bound to supervise the commercial banks, he said.
It should not have been overprotective of them, which could have helped boost cash flow into the country, he said.
”The central bank is an independent organisation, but it sometimes needs to listen and engage with business sectors so as to listen to their concerns.
“Besides, the central bank requires practical solutions to increase the cash flow in Thailand,” he said.
Thaksin said Thai businesses, regardless of size, need to rethink their business model.
He said they should have new ideas, such as using technology to assist their work, because the economic environment has become more competitive. He then gave the example of the Chinese e-commerce platform Temu and how it became dominant.
”Plus, the government needs to protect local businesses while it is trying to seek further foreign investment in Thailand; for example, recently, the government launched a policy that those foreign investors who make money in Thailand need to pay tax,” he said.
When asked about Thailand’s initiative to dig a canal to link the Andaman Sea and the Gulf of Thailand, Thaksin said that Thailand may not dig a canal but would emphasise building a land bridge instead.
”We need to have involvement from the private sector in the construction [of that land bridge], in which they need to be concerned about the commercial viability while concerned about the country’s benefit,” he added.
In geopolitics, Thaksin was asked his opinion about what would happen if US President-elect Donald Trump imposed 10% tariffs on imported products to the US and up to 60% tariffs on Chinese products.
He said if Mr Trump increases such tariffs, the US consumer will have to pay more for imported products.
At the same time, if the US-China trade war intensifies, Thaksin suggested that Thailand should expect more manufacturers to come to the country.
He pointed out that Thailand needs to have good tax incentives, which will attract more foreign investment from various markets worldwide.
Furthermore, with the rise of Brics becoming more prominent, he said this economic bloc would help to rebalance global finances within the next five years.
Brics is an intergovernmental organisation comprising nine countries — Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.
Brics was originally established to identify various investment opportunities.
While the Association of Southeast Asian Nations (Asean) and Asia-Pacific Economic Cooperation (Apec) are regional frameworks that Thailand is a part of, he pointed out that Asean needs to be more unified by having the same consensus as “One Asean”.
”Apec should allow small economic members to have the privilege to access larger markets [which will help them to grow faster],” he added.