Thais have a false perception that the Asean Economic Community will
immediately open up the service sector to foreign dominance and negatively
affect jobs, says a think-tank.
Thailand Development Research
Institute president Somkiat Tangkitvanich said Asean was behind schedule in
agreeing how countries can invest in other members' service sectors.
Asean countries have agreed to
allow workers of eight professions to freely move to other member countries,
but they still have to register and observe domestic requirements in those
countries.
The eligible occupations are
doctors, dentists, nurses, engineers, architects, surveyors, tour guides and
accountants.
Nurses, dentists and doctors
require tests done in the Thai language, while others need a certain amount of
knowledge of Thai to work in the country. Tour guides, however, have no
requirements, Mr Somkiat said.
Only 399 engineers have
registered to work freely in Asean countries.
"Thais often have a
misconception that people will lose jobs due to the free flow of labour once
the AEC opens, especially in the area of nurses," Mr Somkiat said.
The foreign share of Thailand's
service sector is legally capped at 50%. The country has opened its trade more
than any Asean country by eliminating 90% of import taxes, he said.
Mr Somkiat said the postponement
of the AEC by one year to 2016 will not create a significant difference, as the
important issue is not how fast the AEC takes places but the level of
commitment to integration of each country.
Chetha Intarawitak, a senior
researcher, said Asean countries face low use of tax privileges under the AEC
owing to a lengthy and complicated approval process.
Members have also exhibited
rampant non-tax protectionism in the form of price controls, foreign exchange
controls, quotas, monopolies, registration and labels, he said.
Mr Chetha said Thailand's import
costs have remained high because customs officials' dependency on other
agencies makes the work inefficient and there is a shortage of IT personnel.
Asean countries also need to
harmonise cross-border transport, he said.
Duenden Nikomboriraks, a senior
researcher, said the delay in opening up Asean's service sector had resulted
from the bloc's flexibility in the terms of readiness for members.
Thailand's liberalisation in the
service sector would remain muted in 2015 as key sectors that provide
fundamental services such as finance, energy, transport and logistics would
remain relatively closed to foreign participation.
"More than 40% of the
workforce is in the service sector, but its productivity is lower than that of
the industrial sector. It's the service sector that has the potential to grow
and lift people's income," Ms Duenden said.
Policymakers should tackle the
monopoly of large corporations in energy, electricity and telecommunications to
grow the service sector and reduce business operating costs, she said.
Former Bank of Thailand governor
MR Pridiyathorn Devakula said the role of professional councils in setting
criteria for professionals would be important in regulating Asean labour
flexibility.
Nanchanok Wongsamuth &
Parista Yuthamanop
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