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127285
Fri, 06/11/2010 - 08:56
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http://m.oananews.org//node/127285
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Top securities executives see need to address economic inequality
BANGKOK, June 11 (TNA) – Economic inequality is considered a key root cause of Thailand’s present social divisions and needs to be addressed through economic and social reform, according to top securities executives.
Speaking at a seminar on “The Turning Point of Thailand: Economic and Social Reform Strategy to Navigate Thailand’s Political Crisis,” Banyong Pongpanich, chairman of Phatra Securities Co, said that economic equality had occurred since the economic crisis in 1997.
Following the economic malaise in that year, the Thai economy had grown considerably with per capita income rising by 46 per cent.
Still, the income earned by people in the low-income labor sector, which accounts for 80 per cent of the population, shrank by 1.6 per cent. Only had large business owners and politicians benefitted from the impressive economic expansion.
Such development had widened the income inequality. In particular, the income portion in the farm and low-skilled labour sectors had dropped continuously from 17 per cent to 14 per cent of total wages.
Should benefits remain converged with a group of business owners only, it would lead to the class war.
To narrow inequality, the government must implement social reform by focusing on national development that benefits all groups of people. The economy and society must be developed together through the implementation of tax measures and budget allocation to narrow inequality.
Simultaneously, Thailand's competitiveness must be upgraded with better trained labour, removing protection for industries with low growth potential, privatising state enterprises, and development of the capital market.
Paiboon Nalinthrangkurn, chief executive officer of Tisco Securities Co, said that government must urgently boost confidence among foreign investors because the recent political mayhem caused foreign direct investment to plunge by 30 per cent.
Since 1997, he said, Thailand's foreign direct investment increased to 42 per cent of the gross domestic product (GDP), but it has dropped to only 20 per cent at present.
State investment had declined to only 5 per cent, which is very low compared with that of other countries.
Because of this, he said, the government needs to speed up restoring investment and implement economic restructuring by reducing dependence on exports and boosting rising star industries.
Also, the government must give a priority to the capital market development if it wants to restore foreign investor confidence. (TNA)
Speaking at a seminar on “The Turning Point of Thailand: Economic and Social Reform Strategy to Navigate Thailand’s Political Crisis,” Banyong Pongpanich, chairman of Phatra Securities Co, said that economic equality had occurred since the economic crisis in 1997.
Following the economic malaise in that year, the Thai economy had grown considerably with per capita income rising by 46 per cent.
Still, the income earned by people in the low-income labor sector, which accounts for 80 per cent of the population, shrank by 1.6 per cent. Only had large business owners and politicians benefitted from the impressive economic expansion.
Such development had widened the income inequality. In particular, the income portion in the farm and low-skilled labour sectors had dropped continuously from 17 per cent to 14 per cent of total wages.
Should benefits remain converged with a group of business owners only, it would lead to the class war.
To narrow inequality, the government must implement social reform by focusing on national development that benefits all groups of people. The economy and society must be developed together through the implementation of tax measures and budget allocation to narrow inequality.
Simultaneously, Thailand's competitiveness must be upgraded with better trained labour, removing protection for industries with low growth potential, privatising state enterprises, and development of the capital market.
Paiboon Nalinthrangkurn, chief executive officer of Tisco Securities Co, said that government must urgently boost confidence among foreign investors because the recent political mayhem caused foreign direct investment to plunge by 30 per cent.
Since 1997, he said, Thailand's foreign direct investment increased to 42 per cent of the gross domestic product (GDP), but it has dropped to only 20 per cent at present.
State investment had declined to only 5 per cent, which is very low compared with that of other countries.
Because of this, he said, the government needs to speed up restoring investment and implement economic restructuring by reducing dependence on exports and boosting rising star industries.
Also, the government must give a priority to the capital market development if it wants to restore foreign investor confidence. (TNA)
