Digital TV broadcasters call for law revision so they can offer content across media platforms

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To help digital terrestrialTV broadcasters survive in a fastchanging media landscape, the industry is calling for a revision of broadcasting laws in light of the fact that audiences are increasingly shifting their viewing to second screens driven by telecommunications technology.

“Broadcasting regulations have to be changed in accordance with the changing media landscape and technology,” Kematat Paladesh, president of Bangkok Media and Broadcasting – the operator of PPTV digitalTV channel – said yesterday.

Advertisingbased revenue will be no longer play a key role for broadcasters after audiences move to digital screens, such as videoondemand service, therefore they should offer their content across media platforms, she said.

“The new revenue stream for broadcasters in the near future will be from revenuesharing with owners of online media platforms,” he explained.

Broadcasting regulations need to be revised, therefore, in order to enable digitalTV operators to do this.

Kematat made these comments at a public forum, “Two years of digital terrestrial TV broadcasting in Thailand: How to move forward”, held yesterday by the Journalism and Mass Communications faculty of Thammasat University.

Chatchai Tawantarong, executive of Triple V Broadcast – the operator of digital channel Thairath TV – supported the idea of revising the broadcasting laws.

Others at the forum also expressed the opinion that law revision would be one solution to unlocking the problems faced by financially struggling TV broadcasters.

Media scholar Time Chuastapanasiri said the birth of digitalTV broadcasting had resulted in an oversupply crisis in the industry, and predicted that this would worsen this year due to fierce competition.

In parallel, consumer viewing behaviour is shifting from traditional channels like TV screens to streaming content service via online platforms, he said.

From the perspective of the media and advertising industry, a representative of the Media Advertising Association of Thailand told the forum that among the 24 commercial digitalTV channels, there were only 10 “topchoice” channels into which brands and advertisers preferred to pour their budgets.

Meanwhile, news programmes are the most popular shows among advertisers, followed by dramas and variety and game shows.

Lowranked TV operators might face difficulties in their business operations as a result of these trends, the representative said.

In response, Supinya Klangnarong, a member of the National Broadcasting and Telecommunications Commission, said that although the planned publicrelations campaign for the digitalTV sector was still behind schedule, the NBTC’s Broadcasting Committee was keen to do what it could to support the industry.

“To help reduce operating costs for digitalTV operators, the committee can provide remedial measures, such as reducing the network leasing fee,” she added.

AIS seeks extension of deadline for 2G switching off 2G-900MHz service

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4G

ADVANCED INFO Service (AIS) has asked the National Broadcast-ing and Telecommunications Commission to extend the deadline for switching off its second-generation cellular service from April 14 to June 30, citing the need for more time to migrate the remaining subscribers to other networks.

The NBTC’s telecom committee yesterday did not consider the request. It just approved the draft rules and schedule for the second auction of a 900-megahertz licence, a committee source said.

AIS submitted the request in a confidential urgent letter to the NBTC on Wednesday, indicating that it was willing to pay a fee for using the 900MHz spectrum during this extended remedy period.

The fee would be based on the final bid that Jas Mobile Broadband made to win the 900MHz licence – Bt75.65 billion – in the first auction last December.

AIS had operated its 2G service on this 900MHz spectrum before the NBTC reclaimed it for auction. Jas Mobile won this slot but failed to pay the first instalment of the upfront licence fee.

AIS has 8.4 million subscribers, of whom 8 million are from its subsidiary Advanced Wireless Network but still roam with AIS’s 900MHz network.

AIS has claimed that it now uses only 5MHz of the 900MHz spectrum out of the total 10MHz, so it will pay for only 5MHz.

Meanwhile, the telecom committee proposed a minimum starting bid for the new auction of Bt75.65 billion, said Takorn Tantasit, secretary-general of the NBTC.

Under the proposed auction rules, each bidder can raise the price by Bt152 million for each round until the bidding ends at the same price that Jas Mobile missed paying.

The NBTC will also require bidders to place a bank guarantee for 5 per cent of the minimum bid, or Bt3.78 billion, prior to the auction, as opposed to lodging Bt644 million in cash as in the first auction.

If the winning bidder fails to make the first payment it will be fined Bt11.35 billion or 15 per cent of the starting bid.

If the winner fails to fulfil the initial payment condition on time, the licence will be awarded to the second-highest bidder.

If there is only one bidder, the auction will still go ahead, as the starting price is already high.

The draft rule for the auction bans Jas from entering this bid.

The telecom committee will submit the proposed auction rules for the NBTC’s consideration on Tuesday, and will hold a public hearing on April 22.

Auction participants will be invited from May 13 to June 12, with prospective bidders submitting documents on June 14.

The NBTC will hold the auction on June 24.

The NBTC will call a meeting with Pete Bodharamik, chief executive officer of Jasmine International, on Tuesday to ask for his explanation of Jas Mobile Broadband’s failure to make the initial upfront licence payment by the March 21 deadline, Takorn said.

The commission will ask for more information from Pete on the company’s preparation to bid for the licence and if Jasmine had set a budget for this.

It will examine the stock trading of executives and board directors of Jasmine group.

Its probe will focus on whether Jas actually intended to bid for the licence and will see if there is evidence that Jas really sought financial support from banks for its bid.

The panel will ascertain the |possible damage to NBTC from this case and see if it could affect Jasmine’s businesses that hold NBTC licences.

TAT to boost tourism during low season

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TOURISM

THE TOURISM Authority of Thailand (TAT) has mapped out activities to boost domestic tourism during the five-month low season between May and September.

“The authority isn’t worried about international arrivals, as the number of tourists from key markets continues to grow. But the current drought will hit the domestic economy, and that is why we need to push more tourism activities,” TAT governor Yuthasak Supasorn said on Wednesday.

TAT has created different travel themes for each month and will propose them to the government today.

Starting with May, a tourism campaign will be launched to encourage teenagers to travel during the school break. In June, local foods and seasonal fruits and farms will be promoted nationwide.

“One of events in June is ‘Thailand Selfie Day’, on June 1. Locals are invited to take photos of themselves and submit them to compete for prizes including Thailand’s best resorts, spas and restaurants,” he said.

The agency also aims to boost the number of Buddhist travellers in July as Buddhist Lent Day is that month. In the Mother’s Day month of August, a special campaign for female tourists called ‘Lady’s Month’ will be held.

“TAT will use Nong Mali, daughter of the late star Tridsadee ‘Por’ Sahawong, as tourism ambassador.”

TAT in September will encourage government officers in their final year of service to travel before their retirement.

Yuthasak said some other campaigns such as Thailand Grand Sales would be running during the rainy season as usual, which are expected to attract tourists from neighbouring countries as well as boost spending by locals.

In the meantime, TAT will ask Thais to avoid overseas trips during low season. It will promote a “Best of the World in Thailand” campaign to encourage locals to sample some of world’s best products and services right here in Thailand, such as the best hotels, best spas and best restaurants. The agency expects to spend Bt10 million to run its campaigns during the five-month period.

Yuthasak said TAT was still projecting revenue from domestic tourism at Bt850 billion to Bt900 billion. The events in the low season are expected to help increase Thai tourists’ average spending from Bt2,600 to Bt2,800 per head per day.

Phuket to host first social enterprise to boost rural economy

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PRACHA RATH

Interior Minister Gen Anupong Paochinda, right, and Thapana Sirivadhanabhakdi, left, CEO and president of Thai Beverage Plc, visit the booths of community products in Phuket after the launch of ‘Pracharath Rak Samakkee Phuket’ yesterday. Phuket is selecte

Interior Minister Gen Anupong Paochinda, right, and Thapana Sirivadhanabhakdi, left, CEO and president of Thai Beverage Plc, visit the booths of community products in Phuket after the launch of ‘Pracharath Rak Samakkee Phuket’ yesterday. Phuket is selecte

ONE OF the 12 Public-Private Steering Committees under the government’s Pracha Rath project to develop the rural economy yesterday launched its first social enterprise, “Pracharath Rak Samakkee Phuket”, aimed at increasing the income of rural people in a cluster of southern provinces on the Andaman coast centred on Phuket.

Headed by Thapana Sirivadhanabhakdi, president and chief executive officer of Thai Beverage, the committee has promoted Phuket to be the first province for this social enterprise, which will work as a legal business entity to develop rural businesses and communities.

The aim is to increase income of people in the rural areas and lead to better living conditions for them.

Thanks to its readiness in terms of infrastructure and business circumstance, Phuket was selected to be among five strategic provinces by the committee for the first phase of the project.

The others are Phetchaburi, Udon Thani, Chiang Mai and Buri Ram.

In addition to the first five provinces, the committee will set up local social enterprises in 13 other strategic provinces by the end of this year, resulting in a total of 18 provincial clusters responsible for every region of the Kingdom. Each social enterprise will be in charge in its own territory.

The launch of “Pracharath Rak Samakkee Phuket” yesterday was presided over by Interior Minister General Anupong Paochinda.

The social enterprise will be operated as legal business entity with Bt5 million in initial capital. ThaiBev has injected Bt1 million of seeding funds into the company, while more than Bt1 million has been raised by the local business community in Phuket.

“The major aim … of the Pracha Rath project is to increase the incomes of people in rural communities. This can be achieved via three strategic pillars, which are agriculture, product processing by small and medium-sized enterprises, and community tourism,” Anupong said.

Thapana said the Public-Private Steering Committee would work with the close cooperation of its three major partners – the government sector, the private sector, and community enterprises.

While the government sector will provide support on policy advocacy and stimulus factors and accessibility of production sources, the private sector will provide management and marketing know-how, as well as communication and promoting awareness of the Pracha Rath initiatives.

Thapana said all 18 social enterprises heading the strategic provincial clusters would be under the umbrella of one holding company, which will control all policies and strategies initiated under the cooperation of the government and private sector of the steering committee. “Each social enterprise will work independently and generate income by itself. However, the income will not be allocated to the shareholders, but will be reinvested in the community,” Thapana said.

“They [the social enterprises] will have executive boards made up of members of the government and private sectors, each with a managing director who is a well-known person working in civil society in the province.

“They will have also advisory boards made up of representatives from relevant ministries and government agencies, including the Ministry of Agriculture and Cooperatives, the Ministry of Commerce, and the Prime Minister’s Office,” he said.

Thapana said that for Phuket, four agricultural products would be promoted for adding value and branding. They are Phuket pineapple and lobster, goat milk, and organic vegetables.

Meanwhile, batik will be focused on as a strategic product for increasing value-added and branding under the pillar of the product-processing sector.

For community tourism, the province will develop a year-around tourism calendar.

New Myanmar govt faces test

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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ECONOMY

A Myanmar girl rides a motorcycle in Dawei. Roads in big cities have been upgraded but ADB stresses the need for further improvement./Achara Deboonme, The Nation

A Myanmar girl rides a motorcycle in Dawei. Roads in big cities have been upgraded but ADB stresses the need for further improvement./Achara Deboonme, The Nation

A section of road linking Myanmar's Dawei and Thailand's Kanchanaburi./Achara Deboonme, The Nation

A section of road linking Myanmar’s Dawei and Thailand’s Kanchanaburi./Achara Deboonme, The Nation

THE NEW Myanmar government must meet several challenges to ensure that the high growth rate expected for 2016 and 2017 is sustained so as to benefit the entire society, according to the Asian Development Bank.

At a press conference on Wednesday, Winfried Wicklein, ADB country director for Myanmar, lauded the economic and social reforms undertaken in the last four years. However, he said Myanmar’s new government will face the challenges of advancing the economic reforms, addressing infrastructure and labour shortages, and making progress towards peace and social cohesion.

“It is very, very important for the country to grow rapidly. But you need to create access for 70 per cent of the population living in rural areas to market, opportunities and basic services like hospitals and schools, etc. Disaster risk management, education and technical training are really important. Intensified efforts are needed to connect and develop rural areas to improve access to markets and services, and to generate opportunities and jobs. Fast growth is important. At the same time, it is necessary to raise the income of families in rural areas. You have to make sure nobody is left behind,” he said.

In the Asian Development Outlook (ADO) 2016, Myanmar is set to lead all Asean nations in terms of growth rate in 2016 and 2017, with growth forecasts of 8.4 and 8.3 per cent for the two fiscal years. In fiscal 2015, the growth rate was estimated at 7.2 per cent.

Elsewhere in the region, Cambodia is close behind with 7 per cent growth forecast, Laos (6.8 per cent), Vietnam (6.7 per cent), the Philippines (6 per cent). These top 5 countries will be followed by Indonesia (5.2 per cent), Malaysia (4.2 per cent), Thailand (3 per cent), Singapore (2 per cent) and Brunei Darussalam (1 per cent). The outlook is bright, according to Wicklein, who looks forward to supporting the new government in achieving Myanmar’s development goals.

//

A successful political transition is expected to give a boost to foreign direct investment.

However, while inflation would remain as high as 9.5 per cent in the 2016 fiscal year ending March 31, 2017, thin foreign reserves and fiscal buffers could pose risks to the economic outlook, according to ADB deputy country director Peter Brimble.

Other risk factors are the capacity of the government to maintain reform momentum, ethnic and sectarian tensions, and vulnerability to bad weather.

Infrastructure as “core” area

The ADO 2016 underscores the importance of Myanmar’s transport infrastructure after decades of under-investment. ADB estimates that US$60 billion (Bt2.1 trillion) will be needed through 2030 to improve transport infrastructure. This requires the government to raise its transport investments to 3-4 per cent of gross domestic product, from a little more than 1 per cent in recent years.

Brimble said that 60 per cent of Myanmar’s trunk road network needs urgent repair, while public transport remains very inadequate. He welcomed the incoming government’s decision to form a unitary transport ministry and create a new national transport master plan.

“Given the immense funding required, private sector resources could be mobilised through the restructuring of concessions to operate toll roads, competitive outsourcing of civil works, and privatisation of state-owned enterprises,” he said.

Wicklein noted that Myanmar would need approximately $120 billion by 2030 to improve its infrastructure as a whole, including $40 billion in electricity-generation capacity, transmission and distribution. Another $20 billion is expected for the telecom sector and urban infrastructure.

 

Thai economy to drag down regional growth

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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AFTER the Thai economy chalked up growth of 2.8 per cent last year, it is expected to pick up the pace to 3 per cent this year and 3.5 per cent next year, according to the Asian Development Bank.

However, achieving these milestones depends to a great extent on the government rolling out its planned infrastructure investment of Bt1.8 trillion from this year through 2022.

“Growth is forecast to rise over the next two years, assuming that substantial public infrastructure investments proceed on schedule and the political climate is calm around national elections proposed for the second half of 2017,” the ADB said in its “Asian Development Outlook 2016” report released yesterday.

The infrastructure investment is expected to lift business confidence and private investment, while exports will remain weak.

Private consumption is expected to increase modestly in 2016 but then speed up next year, thanks mainly to stimulus measures.

Risks to the outlook include a worsening of the drought, which would hit incomes, private consumption and exports.

The bank forecasts rice production in major exporting countries – India, Pakistan, Thailand and Vietnam – to drop by 3.4 per cent this year because of drought.

Slower-than-anticipated growth in major trading partners and volatile global capital flows pose external risks, but this would be mitigated by sizeable current-account surpluses, relatively low external debt and substantial international reserves.

“The timely implementation of government investment projects is crucial. Delays would reduce public investment and damage consumer and business confidence alike,” it said.

Among Asean growth forecasts, Thailand is higher than Singapore’s 2 per cent this year and 2.2 per cent in 2017 as well as Brunei’s 1 per cent in 2016. Myanmar will show the highest growth rates at 8.4 and 8.3 per cent, allowing the region to show average growth of 4.5 and 4.8 per cent in these two years.

From 2008-14, Thailand suffered a significant decline in its potential growth rate, which is the lowest in Southeast Asia. In 2015, growth slowed in seven of the 10 Asean economies including Thailand, edging down the regional average to 4.4 per cent.

The region is expected to reverse its growth slowdown in 2016-17. Infrastructure investment is seen as boosting growth in Indonesia, while Myanmar rebounds from devastating floods in 2015. Malaysia faces another year of decelerating growth.

The bank forecasts growth of 5.7 per cent for all developing economies in Asia in 2016 and 2017, just as the United States and the euro area show sluggish growth and China undergoes a major economic transition.

China’s slowdown could cut both global and regional growth by nearly 1.8 percentage points.

Global headwinds notwithstanding, developing Asia will continue to contribute 60 per cent of world growth.

The impact in the region would be mainly on trade volumes and commodity prices.

Without structural reform, potential growth in many countries in the region will slide further because of unfavourable demographics, convergence with advanced economies and spillover from growth moderation in China. From 2008-14, average potential growth of developing Asia declined by 2 percentage points from its historical trend.

Govt wants skilled Thais abroad to return to help boost economy

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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SKILLED THAI workers and retired experts living overseas will be encouraged to return home to help drive 10 sectors and help the country’s economic recovery.

Kiatchai Sophastienphong, the vice minister for finance, yesterday said the government planned to encourage skilled workers who are employed overseas to return home in order to help solve the current skilled labour shortage in the aviation, logistics, biotechnology, and medical and wellness sectors. He said retired people living abroad will also be wooed, as many of them are experts in various fields. Financial experts in particular are urgently needed.

“The government has asked all embassy offices worldwide to collect information about Thais working abroad and their life and work experience before launching comprehensive packages to encourage them to return to their motherland,” Kiatchai said.

“Our main targets for the first phase are workers and experts in Hong Kong, Singapore, England, the US and Australia,” The Thai embassy in Hong Kong has already kicked off its data collection exercise.

Kiatchai said that the government also wanted to attract people working in the automotive, smart electronics, agricultural, biotechnology, digital and robotics sectors.

“There is no timeline for the action plan to get people to return to the country, but the government wants this scheme to begin this year,” he said.

Rolf-Dieter Daniel, president of the European Association for Business and Commerce, said that Thailand should take a holistic approach in developing mid-and long-term strategies to alleviate the labour shortage.

The EABC’s 2016 position paper unveiled yesterday said the resumption of talks between the EU and Thailand on a free-trade agreement is highly important to improve economic relations between them. The liberalisation of the service sector is key to help boost competitiveness, productivity, and economic growth. Thailand has been encouraged to allow further liberalisation and develop better use of hardware and software tools.

State must give up unnecessary powers

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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THAIS WILL enjoy better quality public services if the state enhances its regulatory role and relinquishes other powers, according to the Thailand Development Research Institute.

Overseas lessons were shared by TDRI researchers and outside experts at the TDRI’s annual academic conference on Tuesday, along with complaints about poor quality of public services in Thailand – ranging from education to public health – as the state plays conflicting roles.

The quality of telecom services improves as the state ceases its role as a service provider and acts as the policymaker and regulator. This also applies to the energy sector.

However, the state still sets policies and regulates and provides educational and public health services.

The Public Health Ministry owns hospitals nationwide. Rather than focusing on service improvement of hospitals and neutralising variations in services to the members of three public health schemes, it has been too busy with helping its hospitals cope with financial challenges.

“It is a worrying sign that in the past 10 years, state expenses expanded exponentially while economic growth could not catch up.

“But against higher expenses, the outcome deteriorated,” said Banyong Pongpanich, chief executive officer of Kiatnakin Bank.

“Lesser the power, lesser is corruption,” he said.

This would also lead to higher efficiency in the public sector.

Banyong and TDRI research director Deunden Nikomborirak highlighted the need for the state to move away from acting as a service provider.

In the public health sector, the current system led to zero competition among state-owned units, as none is accountable for poor service.

Health accreditation (HA) has been promoted in Thailand, but it does not guarantee that the accredited hospitals would win bigger financial support.

In France, all hospitals must strive for accreditation, while accredited hospitals in Australia are entitled to a 10-per-cent extra budget.

Greater participation by local administrative bodies and the private sector in public services should be promoted, she said.

In Germany, 50 per cent of hospitals are operated by local administrations. In Japan, 72 per cent are operated by non-profit organisations. In the United Kingdom, 96 per cent are operated by government units, which are not the health ministry.

The focus should also be on narrowing the service gaps in the three state health insurance schemes.

Civil servants get free birthing services and there is no limit on the number of children they can have.

However, workers covered by the Social Security Fund can seek allowances for only two children at Bt13,000 each.

“The state should view this from a user perspective, not a provider perspective. Users demand standard and varied services,” she said.

Mingsan Khaosaard, chairwoman of a foundation for public policy studies, said it is time for ownership to be transferred to local administrative bodies.

Due to their capacity constraints, these bodies should be asked which services they would like to take over.

Some of them have been successful enough to be models of management for the others, but in the transition, university lecturers could groom the rest.

Sarinee Achavanuntakul, managing director of Sal Forest and a panellist, said those in power must first acknowledge that the new world context – under the influence of climate change, the digital economy and other factors – demands new ideas and inclusiveness.

That would be achieved only when they guarantee an ecosystem that allows freedom of speech.

“Listening to the like-minded won’t help pinpoint problems. Development needs participation from other parties…Political and economic inclusiveness are correlated. They must grow together,” she stressed.

She praised Brazil for inviting public comments on a new Internet bill, as well as some Indonesian government units’ initiative to let locals vote on budget appropriations.

The public sector spends a huge amount on public relations but little on promoting public participation, she said.

Cabinet approves tax deduction for Songkran expenses

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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TAX DEDUCTION

THE CABINET has approved economic stimulus measures for the Songkran Festival from April 9-17, encouraging people’s spending and travel with a maximum tax deduction of Bt15,000 per person.

The Cabinet also agreed to extend the tax deduction for hotel accommodation until the end of this year after the measure expired on December 31, 2015. That deduction also has a Bt15,000 maximum per person.

“Those who spend on hotels during the Songkran Festival will be eligible for two types of tax deduction, including the tax measure for the festival itself and that for tourism. Therefore, the maximum tax deduction will be Bt30,000 per person for the whole year. This is not expected to have much impact on the government’s revenue,” said Finance Minister Apisak Tantivorawong.

The Tourism and Sports Ministry forecasts a 20-per-cent increase in the number of tourists to 2.6 million during the April 9-17 period, putting an estimated Bt15 billion into circulation. Of the total number of tourists projected, 2.1 million are expected to be Thais and the rest foreigners.

Somchai Jitsuchon, research director of inclusive development at the Thailand Development Research Institute, said the third series of stimulus measures that would be presented to the Cabinet were on the right track and could not be called populism.

The measures may be able to start during this period when the economy is sluggish with export slowdown and more-than-expected droughts, he said.

A subsidy programme that will pay each low-level civil servant and other low-income earners Bt1,000 will pour approximately Bt10 billion into the economic system, he said.

Somchai does not expect the tax deduction for spending on food and hotels during the Songkran Festival to have much impact on the economic system. However, psychologically, the move could boost tourism and spending.

The third-series stimulus is projected to raise gross domestic product by 0.1-0.2 per cent. Combined with the Baan Pracha Rath Project, this year’s GDP could be expanded by an additional 0.2-0.4 per cent.

The measures are expected to reduce damage that may arise from droughts by Bt60 billion to Bt100 billion or 0.5 per cent of GDP.

If these stimulus measures can sustain the economy, the government may not need to launch more, Somchai said, but more measures may follow if the droughts are more severe and exports shrink.

The relief measures for low-income earners and farmers were not included for consideration in the Cabinet meeting yesterday, but Apisak insisted that the plan would go ahead as scheduled.

Apisak said after a meeting of a committee to drive the economic stimulus measures and investment that Transport Minister Arkhom Termpittayapaisith had vowed to go ahead with 20 infrastructure projects this year. The total investment would be reduced to Bt1.5 trillion from Bt1.79 trillion after shortening the distance of the high-speed-rail, which will now run from Bangkok to Nakhon Ratchasima only instead of going all the way to Nong Khai.

Of the 20 infrastructure projects, eight will be go ahead as planned and the remaining 12 will be delayed by two to three months.

Amata takes lead in national R&D drive

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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R&D

Somhathai of Amata Group unveils her science city plan at the TDRI conference.

Somhathai of Amata Group unveils her science city plan at the TDRI conference.

AMATA GROUP is in talks with three ministries to make its planned “science city” in Chon Buri a reality and turn Thailand into an innovation-based society.

“This can be a model to enable Thailand to exit the middle-income trap,” Somhathai Panichewa, chairwoman of Amata Group’s investment board, said yesterday at the annual conference of the Thailand Development Research Institute (TDRI).

This would be a pilot project for other industrial estates to boost research and development, she said.

Less than 5 per cent of R&D of foreign companies operating in Amata’s industrial estates in Thailand is done in the Kingdom. The foreign companies account for 80 per cent of more than 1,200 operators, 60 per cent of which come from Japan.

“The biggest obstacles are the shortage of talent, lack of grants and unattractive incentives from the government,” she said.

The science city is aimed at facilitating these activities. Located next to industrial plants, researchers can work closely with businesses.

Somhathai is negotiating for grants and incentives as well as other assistance from the Finance, Science and Technology, and Industry ministries.

According to Somhathai, public investment is now geared towards developing logistics along the border. The Eastern Seaboard, which generates about 40 per cent of gross domestic product, is ignored in the infrastructure investment plan.

It is time that the government review investment policies and conditions, she said. Schemes are needed to draw foreign companies, which could boost Thailand’s competitiveness against Malaysia or Singapore or even the United States.

Public investment should then be prioritised to go to the areas that would contribute the highest value to the economy.

To promote R&D among local companies, information and cheap funds with long grace periods should be made available. The government should also provide funding for small companies’ feasibility studies.

Somhathai’s proposal coincided with the TDRI’s findings that last year Thailand’s R&D expenses accounted for only 0.48 per cent of GDP and more than half was funded by the public sector.

Researchers focus their efforts on academic research, which reduces the commercialisation rate.

The TDRI highlighted the need for a national matching agency to bridge researchers’ and businesses’ requirements, something that economies with scientific advancement like Germany and Taiwan have been doing.

Government funding goes to these agencies, while the institutes are also forced to work for the private sector to support themselves financially.

For example, in Germany, one-third of funding for the Fraunhofer research agency comes from the government, one-third from the private sector and one-third from other agencies, which open bidding for research assistance.

In Taiwan, the Industrial Technology Research Institute was set up specially to support the private sector. This boosted Taiwan’s R&D to 3 per cent of GDP, helping it to establish semiconductor and computer clusters.

Kirida Bhaopichitr, director of the TDRI’s International Research and Advisory Service, said the agency proposed for Thailand to enjoy full independence in operations.

While the government provides financial support and other assistance, management should be led by an experienced businessman who understands the private sector’s needs.

“Only this way can the private sector catch R&D trends. The issues at hand will be singled out, while research quality can be properly evaluated and the required skill sets can be satisfied,” she said.