Good evening, dear Thai citizens.

The new school term has just started this week all over the country. I consider education to be a top priority for this government. So far the government has embarked on many measures and provided financial assistance to parents of all students ranging from kindergartners to high school students as well as vocational students. The financial assistance includes tuition fees, books, educational equipment, and uniforms as well as school activities such as boyscout, girlscout, field trips, and computers.

 

First of all, let me congratulate Thai youngsters who have brought fame for the kingdom, putting us on the map by winning the International Science and Engineering Fair (ISEF), the world's largest pre-college science competitions, held in Pittsburg, USA. They won an award for the new method of silk sheath production developed from observing the spinning behavior of silkworms. Three students who won the award in zoology are 1) Nattapong Chuesirithaworn, 2) Thananont Hiranwanitchakorn, and 3) Sutthiluck Rakdee, representing Damrongratsongkroh school in Chiang Rai Province. Thailand took part in 5 categories of the competition and managed to win 9 prizes. I would like to congratulate these talented students again and thank the parents, teachers and other responsible personnel.

 

This success is an important step for us. If supported either by the government or the private sector, these innovations will surely create added-value to the industrial and commercial sectors. This is the intellectual ability of our own children. All developed countries started from where we are now. Therefore, without delay, we must develop our country to catch up with the rest of the world. Should we rely on science, technology and innovation from overseas without supporting or developing what we have, we will always be followers, not leaders. We cannot keep purchasing technology from abroad. The innovations that we have as I mentioned several times before must be turned into something useful.

 

The government sees importance in this policy. The National Innovation System Development Committee met this past week and issued a clear policy guideline with measures that will bring stability, prosperity, and sustainability to Thailand.

 

In terms of innovation, there will be 1) patenting of Thai innovations, 2) penetrating markets for new products and services, and 3) allowing the state to spend no less than 10% but no more than 30% of its budget to purchase Thai innovations. The innovations must be certified by domestic and international organizations.

 

 

In terms of stabilizing the SME segment, effort s will be mobilized through the “innovation technology advisor” project, which aims to help tackle technical glitches. 13,000 SMEs are expected to benefit from this project. The government will provide around 5 billion baht to fund the project and expects positive results in terms of profit generating, cost saving, investment promotion, and employment. The estimate value of the project will be 90 billion baht in the span of 6 years.

 

As for investment fund sources, the government will set up the “Fund of Funds”. It will be invested in the form of a joint fund through the cooperation between universities and research institutions. The fund is hoped to give access to loans to innovation businesses as well as universities and research institutions.

 

I understand that there are many businesses in the SME sector. It is necessary that we support you in every way, be they education, capital, and funding. Most importantly, we need all SMEs to register in the system so as to allow us to understand your needs and assist you accordingly. Without documentation, the government will not be able to assist you. We wouldn’t know where to start or what to spend on. The Office of Small and Medium Enterprises Promotion (OSMEP) is in charge of this matter.

 

As for public administration, the government will focus on all aspects. We understand that the state has plenty of civil servants. It is difficult to drastically reduce their numbers, given that there are civil servants in all levels of administration as well as in the civic society. All sectors must be strong enough before any changes can be made. If all sectors are strong, the state will modify its role to be more of a regulator that monitors and accommodates you in terms of legislation, and other privileges.

 

Changes in the size of public administration should be done through the reform process. As of now, I want us to focus on the task at hand. Fix the problem. Move forward. And complete the reform. Civil society needs to lend a hand as well. Conflicts between you would not be ideal at the moment. I do understand your worries. All sectors must be strong first. If you are all on the same page and move forward together, then changes can be made. Today, I don’t see that kind of unity, just concerns about your own problems. You must assess your own group to see if you are ready and willing to do this. Don’t just wait for the government to provide you with everything or do everything.

 

As for the integration of government work, the Ministry of Labor must have a clear policy to support the labor market in preparation for ASEAN as well as special economic zones and national economic and social development plans. The number of workers that we produce must be an adequate amount. And most importantly, we cannot let human trafficking rings take advantage of this situation. It must not happen. It would be illegal if those migrant workers who registered less than a year ago were transferred to another employer or location. I already ordered the Labor Ministry to keep a close watch on such activity.

 

The Ministry of Education must be ready to produce skilled workers as well as supervisors who are able to give orders or communicate with foreigners. There should be more individuals in this group. 7-8 businesses in Thailand are fully ready for the formation of ASEAN. We have potential in many areas. We need to supply skilled workers to these businesses.

 

The Agriculture Ministry and the Industry Ministry must regulate the demand and production in accordance with the Commerce Ministry and the Foreign Affairs Ministry’s policies in finding the market, both domestic and international.

 

The ICT Ministry will support all ministries in terms of innovation while the Finance Ministry will provide financial loans.  In order to ensure effectiveness, we must look at the whole picture. For example, we cannot just look at the price of an agricultural product. The price changes according to the global market. I want us to be able to forecast demand and other factors in the global market that will play a role. The demand should be determined based on community, national, ASEAN, and international markets. If future demand can be determined, we will be able to know how much we should produce. In other words, the supply must meet the demand. This is the principle that we set.

 

It now comes down to the procedure where all parties – community members, cooperatives, etc. – must get involved. In the regional level, there must be cooperation between provinces in terms of market finding, reaching out to the special economic zones as well as the ASEAN region.

 

According to the National Economic and Social Development Board (NESDB), Thai economy grew 3% in the first quarter of 2015 (Jan-Mar). The percentage takes all factors into consideration such as imports, exports, and other estimates. Whether the number will rise or drop depends on the country’s stability. The government will try its best. The number cannot be made up. Without stability, there will not be growth. With risk factors, there will not be growth. Although these factors are often uncontrollable, we can be prepared for them. Everything must be ready.

 

The 3% economic expansion was greatly due to private consumption, government spending (which is the major factor of the growth), and tourism which has seen significant growth. I have seen a lot of tourists lately around the Government House, Ananda Samakhom Throne Hall, the Grand Palace, Chakri Maha Prasat Throne Hall, and other locations. This indicates that foreigners are more confident in Thailand. Please try to keep this kind of atmosphere. This is a result of the government’s spending policy and our efforts to regain confidence while ensuring a peaceful atmosphere in the country. All of these have helped to regain confidence among Thais and foreigners as well as the investors. We will work hard to resolve the economic fluctuation.

 

Thailand is now welcoming more tourists, thus allowing higher earnings, along with a higher employment rate. In May, 37.5 million people in Thailand were employed, accounting for an increase of 0.5% compared to the same period last year. The success is a result of cooperation between the government and the public.

Despite all that, we still have a huge challenge in terms of the country’s foundations. It will take time and require support from all sides, be they the public, private sector, and civil society. Thailand relies heavily on exports while most of the exporting products are agricultural goods. Not only the agricultural sector, Thai SMEs also lack stability. The government has been mobilizing efforts for almost a year now and will continue to do the same. Many of Thailand’s trading partners are facing economic uncertainties, which have caused a negative effect on Thai economy. Although 23 million people or around 37 percent of the population are in the agricultural industry, the total production only accounts for 8% of the country’s GDP.

This indicates that the prices of agricultural goods have dropped due to several tariffs and regulations. Because Thailand is a medium-income country, certain rules and regulations are not applied to the country. This is where we need to focus on. This is where stability will be built. We need to come up with a better structure for the agricultural industry. It is a long term commitment that needs continuous support in order for the farmers, who have great value to our nation, to have a better quality of life and stability. They will be able to stand on their own feet and be happy, with more income. The government has laid down strategies in accordance with His Majesty the King’s Sufficiency Economy Philosophy.

 

I have met farmers on several occasions and each time, we have a long conversation. So far the government has been able to help the farmers by allocating land to landless farmers so that they can generate income. Thailand has 320 million rais of land, 147 million of which are used for agriculture. Therefore, the land must be well allocated and managed. We will build communities in rural areas. The move is expected to resolve the lack of public facilities. Water must be better managed either for consumption or for farming. Everything has already started.

 

As for the promotion of cultivation in accordance with geographic conditions and water capacity, we have to admit that the irrigation system can only cover 30 million rais of farmlands, or around 20% of the 147 million rais. We will try to increase the capacity to 40% while the other 60% of farmlands will be introduced to the idea of agricultural zoning. Not only that, there will be a better water management system inside and outside the zones with irrigation system. As for the zones where water is scarce, they may be used for cattle ranching or for growing crops that require small amount of water. You can also produce fertilizers in those areas. This is to create security and stability in your community which then connects to medium and large businesses. Cooperatives can turn into SMEs while SMEs can turn into companies. You need to look at the big picture and connect all the dots. I’m asking farmers to be patient. I will not leave you stranded.

 

Next is about production cost reduction. Seedlings are expensive. So are fertilizers. Rents are also expensive. There are cases where farmlands are rented without a contract. Owners normally lend the land without an obligation. And when payments are not made, the owner will lend the land to another farmer. This is wrong. I will assign authorities to look into this matter. There will be laws and regulations illegalizing this practice. All rents should come with a contract. The content of the contract should be clearly written and defined. There will be balance between the two sides, landlords and tenants. There should be agreements as to how long in advance should a tenant be informed or how much the rent will be. I have heard that some tenants pay their landlords with the crops they produce. For example, the rent of 1 rai of rice farm is paid with 25 buckets of rice. The farmers cannot keep giving up 25 buckets of rice if the production is not fruitful or if there isn’t sufficient water. I am asking all the landlords to be fair to your tenants. Please have empathy.

 

This past week, the National Land Policy Committee has resolved to deduct the rent for agricultural land from 50 baht a year to 25 baht, a 50% decrease. This aims to encourage all farmers to make a living legally. You will receive a contract without having to evade unauthorized areas. You will be in trouble if you are not in the zone you are entitled to or have the right to according to the contract. Too much supply will not be good for the market. Today, Thailand has excessive supply of rubber. More than a million rais are used for growing rubber trees. The government will help low-income people who are still in the unauthorized locations. As for the financiers, please return the land back quickly, or else you will be prosecuted. The government has assigned the Royal Forest Department to monitor the use of land in all locations as well as mobilize reforestation efforts while seeking public cooperation. There will be plant breeding centers in every community. The department is responsible for providing seedlings and budget. We want the farmers to have their own breeding center while the state will provide appropriate funds for this. To avoid possible corruption, the government will not do this alone, but will give autonomy to the community. When you are strong enough, the government will downsize its administration. Without stability and security, the current administrative structure will remain. You must be strong within the next 2 years. After that, there will be talks about decentralization, budget framework, and better tax imposition. Thailand’s tax rate is probably the lowest among ASEAN countries. Many have voiced concerns over the government‘s revenue. Without stability, the government will not be wealthy. How can we make money when taxes are low?

Next is about building stability for cooperatives and farmers’ communities. You must rely less on the middlemen or companies that can drive up the cost. We must join hands and make cooperatives distribution centers for your crops and goods such as fertilizers and crop seeds. Many cooperatives are stronger as they are able to produce fertilizers. There are inspection agencies. Fewer chemical fertilizers are being used. Although chemical fertilizers are still necessary in some areas, you need to adjust the proportion in order to allow organic fertilizers to be used. And one day, there will be no more chemical substances as everything will be eco-friendly. If successful, meaning everything is organic, your goods will have more value. The government wants to help members of community cooperatives. You cannot let the middlemen take advantage of you while you suffer from rising costs and decreasing prices. To make matters worse, prices of crops will drop according to underperforming markets in the global stage. If you can rely on your members, exchange the produce, share your produce or turn cooperatives into SMEs, it would be excellent. Stronger SMEs should lead and guide weaker ones. We must form this kind of mechanism and culture. We cannot have unregistered SMEs. Very much like the six types of cooperatives, SMEs should have the same process comprising production, market penetration, saving, etc. Everything must be overhauled as I told the Agriculture Ministry. We are therefore asking for cooperation from all the farmers.

 

The government is encouraging all farmers to create added-value to the products so as to allow for higher incomes, such as by good processing. At present, there is an event taking place at IMPACT where entrepreneurs, producers, importers, and exporters meet to discuss business. Many countries are taking part. Please visit the event this weekend. Entrepreneurs are meeting during the week. I want everyone to have a look at what this event offers. I am very proud of Thai companies. Thailand is raking in more than 10 billion baht from exporting these products. Entrepreneurs can go and learn how these companies are doing it, so that you can imitate them. You cannot request for a budget if you are not ready or not capable. The government has already approved a lot of things including funds and loans. Sometimes you have to take a step back and look at yourself. You will not receive the same fund if your capability is low. I will be strict on this matter. You have to register with the state and we will assist you according to your needs. We will provide funds according to what you can do. This is how the current government will overhaul the whole system, starting from community, locality, regional levels, and at the national level.

 

I would like to thank all the farmers I have met. These farmers understand and appreciate the government’s efforts. They told me they would be able to move on with the government’s policy. From now on, you must be able to think on your own. Ask yourself what you need to do to achieve sustainable growth. You have to study, listen, and adjust yourself accordingly. Don’t just focus on the price. Prices of goods can vary, depending on prices in the global market. What you can do now is reduce production cost. In spite of decreasing prices, you will be able to survive all circumstances if your production cost is low. The government cannot keep pegging or pledging prices of crops. Who will the government sell the produce to? We cannot keep it in warehouses as the produce goes bad. Such process will only open doors for corruption. Farmers need to be able to store the produce in their own barns and silos or keep in cooperatives’ warehouses. It is impossible to expect the government to maintain such a tremendous burden. The government does not seek to benefit itself from these crops.

 

Thank you very much for the long term solution to the problems. Agriculturists have joined groups and become members of agricultural centers in their localities. At present, there are 882 centers nationwide. They are located in communities where production is fruitful. Farmers can learn from these centers which teach them to increase productivity and adopt other ideas to resolve existing problems. Farmers cannot grow crops and sell them individually. You need to form a group and do it as a unit. Authorities have held several meetings to find solutions and measures for you. We want to help you save cost and increase productivity as well as with fertilizers and rents. Concrete results must be yielded within this year. I would like to ask all ministries and related agencies to assist farmers with high-tech equipment. You may need to work with local officers as well as the Interior Ministry in order to set standard prices for agricultural products in each area. There will be fairness. We need to make sure that prices are all the same in every location. Stop taking advantage of the farmers. They already have enough suffering and atrocity. Please have sympathy for them.

 

As for the meeting on rubber, the fact that the rubber price has risen is welcome news.  The rise was not too great – the price went up from 50 baht to 55, 56 and 57 baht.  Risk reduction measures have to be prepared.  The government wants a tangible reduction of rubber production in areas that were without proper land title deeds.  We have to see how care can be provided to the poor.  As for financiers, they should return the land immediately.  If not, it would be illegal.  As for the poor, we will help them reduce costs.  Similar to rice, we have to look at the costs of producing rubber.  In addition to the plantation owners, we need to look at the tappers.  Some plantations do not tap their own rubber, and hire outside hands instead.  Are there companies that recruit people as rubber tappers?  How much of the money allotted by the government reaches the plantation owners and the tappers?  It will not do for rubber producers to demand aid after the aid has already been given to the plantation owners.  Re-organization has to be achieved.  The rubber tappers association has already promised to create a registry.  The National Farmers Council's chairman has also committed to this.  A helping hand has to be given to the state.  Information has to be cross-checked for correctness.

 

We will enable farmers and business operators to get higher income through the creation of a circuit – a value chain.  Then, connectivity will be created with SMEs, large companies, exporters and what not.  This connectivity is needed.  The state will then back away and provide oversight and legal support, and foster empowerment by providing funds and what not.  This is how it must be.  Please do not go back to the way agriculture was before.  I thank all types of agriculturists, businesses, state agencies and civil servants for their collaboration.  Our agriculture sector will rapidly become empowered and it will no longer need to face volatility of the global economy and of prices.  The price will not fall if we can sell among ourselves and consume our own products.  If we can agree on joint undertakings with foreign countries, our negotiating leverage will increase for food and rubber.  We are the no. 4 producer country globally, and I believe the no. 2 producer in ASEAN.

 

It is necessary for Thailand to be developed into a food hub for the world.  I have mentioned that the event at Muang Thong Thani encompasses many stores and items – aquatic creatures and food crops.  Thailand is not a place without hope or a future.  The hope is there, but the question is whether we have reached out to grab the existing opportunities.  The current crises must be turned into opportunities.  There’s no need stir up a conflict with me and the government.  The policies of the government need to be implemented by the state, the private sector, the public and civil society.  Each sector needs to be empowered and have an understanding of the others.  Do not only think about how to embezzle the state budget.  Report in any corruption.  If a measure does not work then it will be canceled.  This is all there is to it.

 

For selling purposes, Thai agricultural produce needs to be processed well.  Recently, I asked for rice to be made into bread.  They made the rice bread and showed it to me.  I told them I eat bread in the morning every day.  This talk was meant to cheer them up, the rice bread makers.  Afterward, I was criticized for being out of harmony with my own values.  They said I was eating foreign bread although I have called for the use of Thai products.  This is not right.  Sometimes I speak to draw up comparisons or to give examples.  This is true in Parliament and in meeting rooms.  Sometimes the media draws the incorrect implications – it is almost as if they are stalking me for errors every step of the way.  They have to look at my intention when the words are uttered, and try to reach an understanding with me, instead of telling me how I might have to account for these utterances.  The Thai media has to help out.  If you know something will be problematic, you have to correct it for me.  If you don’t correct this for me, what is going to happen?

 

The THAI FEX: World of Food Asia 2015 at Muang Thong Thani is a must-visit.  The Department of International Trade Promotion is jointly holding this event with businesses and the Thai Chamber of Commerce.  The exhibition of food-related products by domestic and foreign businesses is the 11th of its kind.  Other contents include food-related technology, Halal food, catering, service, ready-made food, fast food, retail businesses and franchises.  It is expected that about 112,000 people will visit the event this time around.  I feel that this figure should be closer to 200,000.  Please go to the event.  I was strolling at the event for more than two hours, tasting the food of every shop – all the food was good.  It is heartening to see how numerous countries are participating.  After seeing the products, I believe that Thailand has great potential.  The food items were visually attractive and were likewise attractive for buyers.  Heightened value of food export earns tens of billions of baht.  How do we link farmers inside this export cycle?

 

Large companies could shoulder one section, by helping to purchase materials from farmers for further processing.  You might also grow your own materials or hire someone else to.  So long as there is a balance, the farmers would not mind and conflicts would not ensue.  Retailers and wholesalers must help out in this manner.

 

I ask that large businesses help out.  I am trying to facilitate your multinational business activities.  I welcome any multinational business that operates abroad and generates income for Thailand.  How do you help out with domestic affairs, though?  Without this help, the domestic scene could suffer a set back because costs can no longer be shouldered.  So, I ask that you help out a little.

 

We are expecting to generate in excess of 8 billion baht of transactions resulting from the business negotiations at this event.  You can also contribute by visiting this fair and making retail purchases.  The government is hoping that this campaign would benefit Thailand's bid to become the global food hub.  We might also get products that other countries can make well, and position ourselves as a distribution center or as a stockpiling center.  The factories might be located in countries that receive GSP privileges.  We would receive their goods and add value to them for re-exportation.  Any business can be done here – we are a free, democratic country.  We need to make progress in all affairs and lay down the foundation for sustainable development in all dimensions.

                                                                                                             Origin : http://www.thaigov.go.th