The Trade Competition Act needs to be amended to cover enforcement of state enterprises that run businesses that compete with the private sector and are listed on the stock market. The call was made by the Commerce Ministry in a bold move to try and reduce monopoly.
Santichai Santawanpas, deputy director–general of the Internal Trade Department, said the Commerce Ministry is preparing to propose amendment of the Act to the National Legislative Assembly to cover these 10 state enterprises, including the oil and gas giant PTT Plc, the largest listed company on the Stock Exchange of Thailand by market capitalisation.
"PTT, which is alleged to dominate the country's energy business, will be the first company accounted for in the amendment," he said.
However, Mr Santichai said the amendment will be made on a sectoral basis.
Other state enterprises include Thai Airways International Plc, TOT Plc and CAT Telecom Plc.
He said the proposal is particularly concerned with the freedom and independence of related working panels handling complaints to ensure they are free from political interference. The Office of the Thai Trade Competition Commission should be upgraded to become an independent body similar to the Office of the Insurance Commission, he said.
Mr Santichai said the ministry would propose a new mechanism to ensure the existing Trade Competition Board could work more independently without political intervention. He added Chutima Bunyapraphasara, the new permanent secretary for commerce, has provided guidelines for relevant authorities to get more serious about enforcing the Trade Competition Act to ensure fair competition and curb monopolies.
The Act has long been called a paper tiger for failing to deliver any penalties to alleged violators.
At a recent seminar for the Board of Investment, the Japan External Trade Organization (Jetro) said Thailand should take this opportunity to carry out political and economic reforms and improve its competitiveness.
"Japanese investors still have medium- and long-term confidence in Thailand, but don't want to see political turmoil happen again and again," said Setsuo Iuchi, Jetro's president and chief representative for Asean and South Asia.
He said good governance could improve government procedures, state projects, the Trade Competition Act and intellectual property rights.
"The key word is transparency. The anti-corruption situation should also improve."