Thailand's competitiveness in 2006 ranked 32nd

BANGKOK, Aug 9 (TNA) – Thailand’s competitiveness in 2006 ranked by the International Institute for Management Development (IMD) moved down to 32nd from 27th last year due to rising fuel prices, higher living costs and failure to improve its weak points, according to the National Economic and Social Development Board (NESDB).

Government Spokesman Surapong Suebwonglee said that the cabinet Tuesday acknowledged the report by NESDB about the decline in the world’s competitiveness ranking of Thailand, which stemmed from four main factors.

Firstly, the Thai economic position had picked up in the past three years, but dropped to 21st this year.

Secondly, the public sector’s efficiency notched down to the 21st place this year from 14th last year.

Thirdly, the business sector’s efficiency stayed unchanged at the 28th rank.

Finally, competitiveness in the basic infrastructure, which is one of the country’s weak points, moved down to 48th this year from 47th last year.

NESDB attributed the decline in the country’s competitiveness this year to surging oil prices that had fueled product prices and living costs.

As well, Thailand remains unable to improve its long-standing weak points such as productivity, skills, research and development (R&D), imports of capital goods with high value and inflexible economic structure.

The national economic think tank suggested that the government give an importance to promoting saving to encourage local investment and reduce dependence on foreign capital.

The government should also create a balance of the capital demand in the money and capital markets and accelerate building the stability and efficiency of the public administration.

As well, it should develop a competitive edge of the public sector in all levels to facilitate performance of the private sector, boost efficiency of public services and improve business environment such as deregulation of rules, reduction of logistics costs, labor skill development and product and service value adding.

TNA