Public Sector in Thailand

A DEEP INSIGHT INTO THE PUBLIC SECTOR IN THAILAND

Thailand is a newly industrialized country and its economy has been heavily dependent on export. The country is spread over 513,115 squares Km, equal to France, but is bit smallercompared to Texas. Bangkok is the capital city and other towns in Thailand are Chiang Mai, Muang, and NakhonRatchasima. Thailand’s population is higher than sixty-three million.

Thailand enjoyed the world’s uppermost growth rate from 1985 to 1996 on an average 12.4% per annum. It exports valued nearly around $105 billion per annum. Electrical equipment, components, computer accessories and cars are recognized as considerable industries in the country. Also tourism sector contributes to the economy about 6% of the total amount. Thailand’s major exports are fishery products, jewellery, rubber, cars, Thai rice, textiles, footwear, computers and electrical items.

The country bags no.1 spot as an exporter of rice, valuing not less than 6.5 million tons of milled rice per year. Rice is known as the most vital crop in the country and more than 50 percent of agricultural land is used for the rice production. The economy of Thailand is highly export-dependent. It became the 2nd largest economy in Southeast Asia, after Indonesia. The nation is the 4th richest nation in terms of GDP per capita, after Singapore, Brunei and Malaysia. 49% of Thailand’s total labour force is employed in agriculture sector.

THAILAND ECONOMY WITH PUBLIC SECTOR:

By the end of the year 2016, the economy of Thailand is expected to enlarge at 3.0-4.0 percentages. This is identical to the previous year growth. Investment in public sector depends on the rise of the budget scarcity and the implementation of public sector’s projects which are mainly invested in the transportation and special economic zone’s development.

In addition, QE (quantitative easing) policy for the world’s principal economies is still keeping some pressure on the value of the currency and remains a struggle for the export sector expansion. According to the economic stability by the year 2016, the rate of inflation is relatively low at 1.0-2.0 percent rate, but it is quite higher than 2015 because of the current situation in oil price among the world market along with apparent continuation in the present account balance.

FOREIGN INVESTMENT AND RISE OF PUBLIC SECTOR IN THAILAND:

Thai government implemented some plans to get the contribution of the private sector and also foreign investors in the alternative projects to operate them in accordance with the globally accepted standards. Through the attraction of foreign investors & private sector, the government got benefits with the advanced technology and a large sum of funds in order to make the projects a reality. Absolutely, the alternative of power generation projects has been the major factor in calculating the advancement and development of Thailand.

For the restructuring economic sectors, IMF (International Monetary Fund) bestowed the Thailand government the loan package around $17.2 billion to reform the financial sector in the country. With the reforms in a financial sector part, the government implemented some restructuring process in agriculture and industry sectors to raise its productivity.

This information can be directly downloaded from the Board of investment websites. The details are available in six languages such as German, Thai, Chinese, Japanese, French and English. These language processes help the foreign investor to invest appropriately. These countries are mainly attracted by more investors from the European Union, USA and other countries in the southeast region.

Ultimately, the foreign investors directly relate to the factor of advancement and development of the country. Research and development in infrastructure are the most essential factor in any country’s development process.

Research and development facilitate innovations can lower the production cost and find new ways of manufacturing. It modifies country operation and economy in a proper way. Thailand made reservations on automation systems, hardware, computer-based control technology, automation systems, supply and total quality management.

RISE OF THE PUBLIC SECTOR IN THAILAND:

The government policies along with regulation were rehabilitated to make up their accountability and transparency. And also social reforms carried out in social service, human resource development, and social services. In the path of education, on-job training programs and job oriented education have taken a specific place.

Also, government enhanced the social services quality such as personal security, healthcare and public housing schemes. For the development of human resource, the government fully focused on the enhancement and performance of public officers via the knowledge transfer and technical expertise. Government also expects to improve the human resources with all adequate abilities and techniques.

Human resource has been the driving force of development of the economy and advancement of any other economy. For this type of case, knowledge, technology and abilities exchange with the other countries via many mechanisms such as annual consultation programs, joint commissions.

These reforms in the economic sectors, social service, human resource and education development have played the key role in the advancement and development of the country via raise productivity of resources like labour and increased effectiveness and efficiency in the production process in every sector such as agriculture, industrial and service. In simple term, when competencies, skills, and human resource expertise go up, the productivity will increase the production cost will decrease.

Thailand government aims to encourage the capital inflows in the key economic sectors. In the year 2006, Thaksin Shinawatra government implemented the privatization process for the state-owned enterprises. In which, several state-owned organization was privatized except Thailand Petroleum Authority, Mass Communication Organization, and Airport Thailand Authority.

Also in 1999, the state Enterprises Corporation Act structured the framework of formulating the government firm into the stock companies and some corporations as an alternative to privatization. It also permitted the foreign investors to participate in the privatization with the many restrictions bestowed by the 1999.

This strategy encouraged the capital inflows in the country and marks the process to bring advanced techniques and technology into the economy. With privatization, efficiency and effectiveness of enterprises raise and also the quality of the service sector and manufacturing sector was uplifted. Such kind of privatization program helps in strengthening the development process in Thailand country.

Thai government took many steps in order to avoid the privatization process drawbacks. For the Targeted industries and the policy formulation, the Thai government highly concerned regarding the position that the country should put in the world of competitive. It expects to enhance the industries, which can add the value of the domestic economy, such as preserving the environment, creating more job opportunities and maintaining natural resources in a proper way.

Also, the government of Thailand is willing to search marketing places, which should not be served by any another country, particularly, market segments, where China isn’t competing. Some of the industries, in which country can work at the best efficiency and productivity, such as in agriculture sector, automobile and parts, fashion like leather goods, Thai silk, jewellery, healthcare, spa, long-stay tourism, energy & renewable energy and electronic industries.

Thai government already prepared some action plans in order to work in the selected industries. Government authorities are responsible for implementation, designing, trouble shooting and monitoring in the selected industries. Presently, Thailand has become one of the finest countries in the field of agriculture industry in the world. Thailand promoted the agricultural programs with the name of ‘Kitchen World’.

The government has found the industrial segments, in which the country can operate with the available resources at less cost by achieving higher efficiency and productivity as well as government reviews that countries are experiencing can match with industries, which wereselected.

Recently, Thailand has been working with the suitable industries, raising its resources and itslabour employment is heading the sustainable growth and development. FDIs favorable policy and laws have been reviewed accordance with investor’s needs and changing objectives development. Policies and laws are reviewed once in every five years.

The FDI’s policy and laws in Thailand country are more comfortable when compared with other countries such as Vietnam. Furthermore, in the country of Thailand, FDI marketing has been strong and it renders every detail related to the economy, opportunities, investment incentives, promotion policies, BOI services, and international cost comparison and approval procedure for foreign investors accurately on time. Information is given in the brochures, websites and as slide presentations that can be updated frequently by FDI.

DEVELOPMENT IN RURAL AREAS:

The Thailand government is encouraging some private organization to invest in research and development activities and bestowing facilities required for sustainable development. Presently, Thailand allocates 0.2 percent of GDP in the development of R&D sectorand also the expenditure amount is expected to increase for the upcoming year.

The country of Thailand is focusing moreon infrastructure developing facilities like electricity, transportation, water, social facilities for both rural and urban area with a view of boosting the development of medium and small scale enterprises. Because of the total focus in rural areas, the rate of unemployment in those areas decreased and standard of living for the people also uplifted.

Thailand Government developed rural areas in accordance with some standards for rural areas development and enhancing living standards for people and expanding their income capabilities, which were the key strategies for the development. The country is able to elaborate the production capabilities with the help of unemployed resources &low-costlabourand earn more profits. A public-private partnership is considered as very significant infrastructure development in this country.

Presently, the government of the country is willing to start the largest infrastructure development with a cost range of $60 billion. 64 per cent of the total budget will be spent for 31 railways, which includes four high-speed railway projects. 24 percent has been allocated for the road development and 12 percent has been planned to spend in aviation and water transportation.

The main aim of Thailand can stimulate the construction sector’s production capability in these projects. Along with every program and project, the government expects to enhance per capita income from $5000 to $10,000 during next ten years.

 

PUBLIC SECTOR REFORMS IN THAILAND (2014):

The Thailand government is approaching the new public sector reforms along with different national areasand the guiding principle can be recommended by National Reform Council.

Prayut Chan-o-cha, the Prime Minister gave 5 doctrines for improving the public sector administration. These 5 principles areaspects to decrease the working procedures, less public service time, facilitate access to the public services, adopting information technology for the maximum utilization and encouraging employees to be service minded.

Reforms of the public sector are deemed as the very urgent task, which is important for the country direction and will niche in some other reforms in Society of Thai. Thailand and every nation is being affected by the globalization. In order to change the global context, The Thailand government realized the significance of reform in the public sector to increase the competitive capacity of the country and its ability to adapt and make some important changes.

Comprehensive reforms attempting in order to overhaul administrative and public sector structure has been implemented from 2002. Several regulations and laws concerning public administration and laws are needed for the bureaucratic structure transformation have amended.

Public Administration Act in 2002 mentioned that public administration should carry out for the well-being of people. In the year 2003, Royal Decree on certain criteria and procedure of good governance had been enacted. It sets the management guidelines along with direction for every government agencies to respond the requirement of all citizens.

The Royal Decree involves resultbased management, seeking at performance targets, value for money, effectiveness, neglecting unnecessary work steps, mission review to meet the changing situations along with regular evaluation and adjusting priorities.

The development of public sector has continuously implemented in order to increase the public satisfaction and also the trust in the bureaucratic system. Most of the people can be given lots of chances to participate, monitor public servants work via different channels and to express their opinions.

To make sure the public service quality for business operations, The Thailand government pushed some government agencies to shorten the service delivery time, reduce burden costs, streamline processes, and improve the business climate. Thailand got 17th position among 183 countries by the World Bank in 2012.

On 2014, 29th October, The World Bank states that Thailand is doing business easily so that its ranking has improved from  28th to 26th positionin that year among 189 countries worldwide.

Mr. Ulrich Zachau, Work Bank Group Director reported that through the public service enhancement program for the past ten years, Thailand has implemented reforms in order to enhance the ease of processing business. This can be an advantage for local entrepreneurs, who now have lesser regulatory hurdles to deal with and some resources to focus on their business.

The country of Thailand has also utilized technology to enhance the regulatory environment to businesses. For example, a maximum usage of electronic systems reduced both document number and the time required for importing and exporting by half since 2007.

 

HEO & HPO COMBINATION IN THAI PUBLIC SECTOR:

heo-hpo-thai-public-sector

High Ethical Organization characteristics involve:

  • Model organization: People in the organization must know what they have to do and what they must not do.
  • Understanding action consequences: This represents the rules andregulations in the society, which is based on an agreement of employee within the organization.
  • Being fair: It means that giving services with equality and should not discriminate people from several parts of society.

 

OPDC (Office of the Public Sector Development of Commission) promotes the new ways to drive High Ethical Organization such as:

  1. In an organization, people should be promoted with the integrity bases approach and this approach can be done by making an ethical infrastructure and by setting rules andregulations to prevent fraud, corruption, bribery etc.
  2. Measuring penalty by promoting the public organization’s conduct codes & compliance program seriously and eagerness to find the wrong.
  3. Recently, many public organizationshavestarted key performance indicators in order to measure the approaches.
  4. Good Governance Rating: OPDC ranks public sector by the good governance rating from ten elements such as consensus oriented, equity, rule of law, decentralization, participation, transparency, accountability, responsiveness, efficiency, effectiveness. One element relating to support the combating corruption via good governance has been transparency, which means that every government officer must work honestly & straightforwardly including working with the information disclosure.These will lead increating trust among the people towards the government.
  5. Organization Governance: OPDC created one mechanism named OG (Organization Governance) and its aim is to strengthen the transparency in government in both external and internal perspectives. Key elements in the good organization principles involve integrity, trust, accountability and responsibility, openness, mutual respect, performance orientation, honesty and commitment to an organization. Essential practices are how management and directors develop the model of governance, which align the values of corporate participants and later evaluate the model periodically to its effectiveness. Particularly, senior executives must conduct themselves ethically and honestly.
  6. Inspiring clean Thailand: Non-Government Organization and Civil Service Commission kept the foundation for clean & transparent Thailand. They are conducting several activities for promoting morals along with the high standards of ethics in a public sector.
  7. Anti-corruption Networking Champion: Two parties such as NACC and PACC together working for the transparent & accountable global governance. NACC stands for National Anti-corruption Commission and PACC stands for Public Anti-corruption Commission. Bothcommissions are registered in Anti-corruption Networking Champion and this mission is compelling to address the challenges head on.

 

FOUR DIMENSIONS INVOLVED IN THAI ORGANIZATION GOVERNANCE:        

thai-public-sector-organization

 

  1. Public, Social & Environmental Policy: This is an external perspective, making the organization eco-friendly and creating positive results. It can be done by supporting not only the government policy but also the society and environmental policy.
  2. Customer & stakeholder policy: This policy includes service quality, in which the organization can be driving through enhancing the service delivery with the highestintegrity. This policy is an external perspective.
  3. Organization policy: It is the internal perspective, in which organization can be driving through enhancing rules & regulations supporting the government.
  4. Employee Policy: It is the internal perspective, in which organization can be driven via balancing power by making people’sactionspositive.

 

CONCLUSION:

In conclusion, it is affirmed that the Government of Thailand is making huge efforts to push the nation towards a new round of public sector reform. Along with the other sectors of the national reform process, the steps and reforms in the public sector is assured to bring in make positive results to the nation.