Somkid promises Asean push

Somkid promises Asean push

Deputy PM outlines bold plans for bloc

Deputy Prime Minister Somkid Jatusripitak, seen here at an International Conference on the Future of Asia, has laid out Thailand's main strategy it intends to pursue when it takes over the chair of Asean in 2019. (Bangkok Post file photo)
Deputy Prime Minister Somkid Jatusripitak, seen here at an International Conference on the Future of Asia, has laid out Thailand's main strategy it intends to pursue when it takes over the chair of Asean in 2019. (Bangkok Post file photo)

Upon assuming the chairmanship of Asean next year, Thailand will mobilise efforts to draw global superpowers to cooperate more with the bloc, Deputy Prime Minister Somkid Jatusripitak said Monday, naming the United States, Russia, England and France as key targets.

In an interview with Bangkok Post, Mr Somkid said he had given relevant agencies homework to formulate the detailed plans needed to forge closer ties with major countries.

Such efforts, he said, would be in addition to the Asean plus 6 initiative, which consists of the Asean members as well as Australia, China, India, Japan, New Zealand and South Korea.

The deputy premier in charge of economic affairs said all ministries have been instructed to prepare for Thailand's chairmanship of Asean next year when the "spotlight" will be on the kingdom to expand the scope and influence of the bloc.

"Plans have been in the works since Asean marked its 50th anniversary last year which marked a high point for the region," said Mr Somkid, expressing confidence that several countries in the bloc are poised for significant growth.

He stressed the Asean Summit would not be a routine assembly any more and must create outstanding blueprints.

Prime Minister Prayut Chan-o-cha wears a 'phi ta khon' mask on his visit to Loei prior to a mobile cabinet meet in neighbouring Phetchabun today. Government House photo

"Next year, the concept is sustainability. All ministries have been informed, so they can contribute as much as possible to future meetings between the members," Mr Somkid said.

According to the deputy premier, Thailand has become an attractive location for trade and investment in the region, which is a rapidly growing market for the rest of the world.

The GDP of CLMVT (Cambodia, Laos, Myanmar, Vietnam and Thailand) has grown 6-8% annually over the past decade, which is among the sharpest regional rises in the world, he said.

Mr Somkid insisted Thailand can no longer be overlooked as the country has shown sustained macroeconomic strength, which explains why the nation has not been significantly affected by the global financial instability.

According to the deputy premier, it is important that the country "should not act small", and must follow the example set by Singapore, which aggressively pushed for growth, thereby resulting in economic prosperity and making it possible for the state island to take on an augmented role on the global stage.

He said the coming election, expected to take place on Feb 24 next year, would also bolster international confidence in Thailand.

Referring to the government's much-touted Thailand Future Fund (TFF), the deputy premier said it will be open for initial reservations from retail investors in the second week of October.

About three billion baht will be raised through the first lot of the TFF, he said, adding that 60% of the units will be offered to retail investors and the rest to institutional investors and foreigners.

He said a 3% annual return, which is more than deposit interest rates, can be expected.

The fund is aimed at financing key infrastructure in order to ease state agencies' reliance on the national budget.

Initially, the fund will be used to finance construction of the expressway linking Rama III Road-Dao Khanong and the Western Outer Ring Road, which will cost 30.4 billion baht, as well as the third stage of the northern expressway linking the Kasetsart intersection and Nawamin Road, also known as the N2 section, for 14.4 billion baht.

Meanwhile, Auramom Supthaweethum, director-general of Trade Negotiations Department, said Thailand would raise a proposal that Asean countries work together to support small- and medium-sized enterprises (SMEs) to be prepared for the 4th industrial revolution, or 4IR, which concerns the development of technology and innovation.

"This will be one of the main issues next year," she said at a seminar on Thailand and the 4IR on Monday.

"Technology and innovation now play key roles in production, consumption and people's livelihoods," said Ms Auramom.

"Artificial Intelligence (AI) is being brought in to replace the labour forces," she said.

It is estimated that this phenomenon will add US$200 billion to the value of the economies of six major Asean countries -- Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam -- which would send the region into the top five digital economies in the world, according to Ms Auramom.

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