PHUKET: Phuket business people are seeking clarity about how regulations will
be applied to domestic and international business after the launch of the Asean
Economic Community (AEC) in 2015.
The AEC will usher in regional
economic integration aimed at creating a single market and single production
base to develop the regional economy.
The concept was first proposed in
2002 during the Asean summit in Cambodia and was officially approved at another
Asean summit two years later in Laos.
For the AEC to become reality,
widespread reforms of laws and regulations are expected in each member country.
Local concern was apparent at a
“Preparing for AEC Brainstorm” seminar at the Phuket Merlin Hotel today
(September 4), with many saying they have yet to see clearly how the government
will reform regulations in preparation for 2015.
“So far, there is no panic about
AEC, but that’s because we don’t yet know what the AEC regulations will be,”
said the President of the Phuket Tourist Association, Ponganun Suwannakarn.
Especially in Phuket’s
hospitality industry, the big question is whether the reforms will truly
benefit local business people?
Mr Ponganun tries to be
optimistic about the AEC, believing it may create more options for hospitality
investors because of the free flow of skilled labor from one member-country to
another.
He added that the possibility
that foreign participation in local companies will increase to 70 per cent,
along with the requirement of a minimum B2 billion investment and at least 100
units include in resorts or hotel has the potential to create a high-class
destination in Phuket.
This requirement will filter
qualified tourists for Phuket, he said.
With such a high Asian
shareholding, however, many local business people have expressed concern about
the possibility of interference by non-Asean investors who may take this chance
to expand their investment in Thailand through nominees from other Asean
countries.
“We have to see how much freedom
is offered [to Asian investors] through the reforms by the government and other
nations,” said Korakod Padungjit, a board member of the Federation of Thai
Industries.
“We hope the government will try
their best to protect the wellbeing of Thai citizen after the AEC comes into
being.”
Because of Phuket’s high
potential to attract more investors, Mr Korakod said degradation of the
island’s natural resources would be the major concern.
With the influx of people after
AEC, there may be problem with land use on the island and inadequate
infrastructure. Regulatory reform would have to play a major role in preventing
and controlling possible problems after 2015.
With the government keeping
regulatory reform close to its chest, resulting in a lack of clarity about how
local business people should adjust in order to prepare for the AEC, Mr Korakod
suggested that Phuket people could take part in designing the new or changed
regulations.
“The AEC concept has been in
existence for 10 years, but we’ve only recently become enthusiastic about it,”
said Mr Korakod.
He hoped that the brainstorming
seminar today would encourage local business people to write up their own
proposals for regulatory reform to be passed to the government.
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