Thailand is lagging behind other Southeast Asian countries in recovering from the impact of Covid-19, and it needs to remodel its economic structure to remain competitive, according to former prime minister Abhisit Vejjajiva.
Some might be carried away with the 2.5% economic growth seen in the second quarter, but when compared to other Asean nations, Thailand's recovery is at the slowest rate, Mr Abhisit told the attendants of a seminar at Srinakharinwirot University on Wednesday.
In terms of competitiveness, Thailand's ranking is lower than pre-Covid-19 levels, and without remodelling its economic structure, the country will not be globally competitive, he said.
Mr Abhisit listed seven challenges facing the country: the middle-income trap; geopolitical matters; the emergence of new technologies; climate change; an ageing society; household debts; and inequality.
The country has made little progress in addressing the middle-income trap, and no efforts have been made to create added value in technology or to develop human resources.
On geopolitical matters, Thailand is heavily dependent on the global economy but did not join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and was slow to sign new trade agreements. He said Thailand needs to adjust its role in the international community and be more engaged in international forums to show how it can contribute to global issues.
Thailand introduced an e-service tax law last year that requires overseas business operators providing online services in Thailand to register for 7% VAT payments. Despite Thai people being big users of online services, collection of tax income from this sector was low, he said.
More, he said, would have to be done to address the impacts of climate change and various issues related to the ageing society.
Mr Abhisit said the government must spell out how it will promote the adoption of the Bio, Circular, and Green (BCG) economies and promote social protection systems and the care economy.
He also pointed out that the household debt ratio rose to 90% of GDP. It was ranked as the 11th highest in the world and the third highest in Asia while social inequality worsened.
The former premier called for improvements in laws for the rehabilitation of debtors, SMEs and individuals and a more proactive policy on debt negotiation and restructuring.
He said the wealthy, who accounted for 10% of the population, owned as much as 61% of land and accounted for 93% of total deposits in commercial banks.
"Moreover, inequality will be passed on from generation to generation. By this, 48% of people whose parents are university graduates will have the same education opportunities," he said. "But if parents don't finish pathom sueksa [primary school] education, 49% of their children are likely to not finish," he said.
