Puea Pandin straddles the fence with a message of love, harmony and happiness

Business News : Monday December 10, 2007

RACE TO PARLIAMENT

A vote for reconciliation

Puea Pandin straddles the fence with a message of love, harmony and happiness

CHATRUDEE THEPARAT

It's certainly not what you'd expect as a political campaign in the rough and tumble election season: Vote for Puea Pandin as the na rak party.

Vachara Phanachet offers a grin. Loveliness is hardly a common talking point in today's campaign.

But given the infighting that has dominated politics for the two years, the Puea Pandin secretary-general believes that the party can touch a nerve among people by trying to keep blood pressures low. "A vote for us is a vote for reconciliation." he says. "We don't want to fight with anyone."

Puea Pandin is one of three main splinter parties that has arisen from the ashes of the disbanded Thai Rak Thai Party, together with People Power and Ruam Jai Thai Chart Pattana.

But Puea Pandin, headed by Suvit Khunkitti, is trying to accomplish what seems to be a herculean task in today's society - take the middle ground and present itself as a third option to the Democrats and People Power.

"People are bored of all the political fighting. Thailand still has lots of potential for growth. But we need to work together," says Dr Vachara.

Perhaps befitting Dr Vachara's background as a long-time industrialist, Puea Pandin's economic platform is focused heavily on industrial reforms, support for small entrepreneurs, productivity enhancements and increased market access. Social welfare programmes, health care and education also represent key planks to the party's platform.

"The core policy for the party is to build well-being and happiness," Dr Vachara says.

"We want to build 'happiness centres' across the country, public parks where children can come for day care and the elderly can come to exercise."

Dr Vachara lights up when talking about the subject. "Each centre will have computers and a library," he says. "The elderly can help their communities by helping take care of their neighbour's children. Happiness isn't necessarily based on money alone."

Spurring economic growth must start with small- and medium-sized companies, Dr Vachara says.

"Thai entrepreneurs account for around 30% of gross domestic product. But in developed economies, such as Italy, small businesses account for as much as 75% of GDP," he says.

Puea Pandin would create a 10-billion-baht venture-capital fund to help provide low-cost capital to high-potential small businesses. New training and technology transfer programmes would be established to help firms improve their skills, efficiency and productivity.

Business networks would be expanded to help small businesses reach new markets.

"Take small businesses in the southern provinces. There's the capacity to produce Muslim scarves. The real market isn't in Thailand, but in the Middle East and elsewhere. We need to strengthen market access for small firms," Dr Vachara says.

Ultimately, Thai companies need to move up the value chain if the country wants to survive in today's globalised economy.

"We are a country with 60 million people, with relatively low income. Exports are 70% of gross domestic product. We're not China, with a huge domestic market. And we're not Singapore, with a wealthy population. Exports need to move up the value chain," he says.

"Many Thai companies are already world-class OEM (original equipment manufacturers). But the question is how to step up to the next level."

Thai firms need to become ODMs, or original design manufacturers, Dr Vachara says, by giving greater attention to product design and packaging. The last step would be to ultimately develop one's own brand.

"Consider Japan. After World War II, 'Made in Japan' was synonymous with low quality, copied goods. But they steadily made gains, improved their quality and market presence. Now 'Made in Japan' is a valued brand," he says.

"It's not going to happen overnight. But the government has to be an incubator."

Producers in sectors such as agriculture need to consider global consumer trends and expand into specific market segments, such as the booming demand for organic and health-conscious products.

Dr Vachara says Puea Pandin would expand the village fund programme to three to five million baht per village to help support new entrepreneurs. But he says his philosophy was that the government's role was to provide social services, support rural development and alleviate poverty, not compete with the private sector.

"The state's role is to support businesses, not compete with them. The government must be a vehicle to facilitate growth," Dr Vachara says.

As a result, state infrastructure investment needed to increase well beyond the 30% of the budget now allocated on new investment, particularly in the area of transport networks and logistics.

Funding could come through new partnerships with local and foreign investors, under build-transfer-operate (BTO) or build-operate-transfer (BOT) arrangements.

Puea Pandin also favoured greater support for alternative fuels and energy sources, and increased development of the tourism sector.

"Every tourist to the country helps support 12 jobs, in hotels, spas and handicrafts. We are an attractive destination already. We need to leverage this strength and capitalise on our 'Thainess'," Dr Vachara says.

"The biggest problem with the economy has been the loss of confidence," he says with a shrug.

"But hopefully, with the end of political conflicts, confidence will return, investment will pick up and growth will rebound."

By : Bangkok Post