The new economic team under Deputy Prime Minister Somkid Jatusripitak has taken over in a most low-key manner. However, expectations of Mr Somkid and his deputies are high.
As an insider and adviser to the government, there will be no honeymoon for Mr Somkid, who knows full well what the problems are; the need to reinvigorate the economy and provide financial assistance to farmers and the grassroots community. More details will be known next week.
Under the previous economic team, led by MR Pridiyathorn Devakula, virtually every indicator dropped. The export sector repeatedly failed all attempts to expand. Wages and prices have stagnated, with a debate under way over whether there was deflation.
The economy shrunk because global demand was weak, affecting exports while there was a lack of domestic demand. The biggest problem for the government was trying to embark on structural reform in a failing economy. Thailand is, first and foremost, a manufacturing economy. There is a need to boost productivity and the level of skilled labour, which is tied to education.
It remains to be seen whether the new economic team will have the time to tackle some of these longer-term issues. But there is one policy — the digital economy — that should not be overlooked.
The idea of making Thailand a digital economy is a good one. Indeed, the country needs to move aggressively into 21st-century telecoms and internet data development. The problem is how.
The digital economy draft law initiated by the previous economic team is highly controversial. It will create a quasi-governmental central body that will make policies as well as function as a regulator and operator, competing with the private sector. It will also allow serious violations of human rights and privacy on the grounds of national security. These ill-considered draft bills are being lined up for deliberation by the National Legislation Assembly.
This important new law is already a disaster in the making. It should not be allowed to advance on its own, without direct and intensive supervision from the ICT minister. While there must be a government policy on the digital economy, yet another restrictive, top-down bill that will permit covert spying by government on both citizens and businesses is completely the wrong way to proceed. Proper safeguards need to be put in place to make sure legal protection is afforded.
New ICT Minister Uttama Savanayana must ensure that this does not happen. There are indications that the draft bill could be slowed. This is not enough. The problematic digital law must be fixed. Better still, it should be withdrawn and started anew with open and comprehensive consultation with all stakeholders.
His ministry will soon be renamed the Digital Economy and Society Ministry. Restructuring his ministry to create and facilitate necessary infrastructures at all levels in order to turn the country into a digital economy should be his priority.
His task is very important for the country’s future. He cannot succeed without support and understanding from Mr Somkid and his boss about the role of government. Its job is to set fair rules for all players in the private sector and create an open environment for innovation.
If the government wants to be a player too, like the present draft bill aims to do, the digital economy aim is doomed from the start.