Give disrupters a chance
I’ve been getting the feeling in conversations lately that some people are starting to consider me an “angry young man”, and I’d just like to clarify that I’m neither angry all the time nor that young anymore. But I still have a youthful outlook, and that’s why I was ecstatic when I learned that Thailand’s government was finally taking a step into the brave new world of technology start-ups.
I may still work in the print medium but I’ve embraced the digital world wholeheartedly, and I’ve even had some ideas of my own for possible tech ventures, though none have got off the ground yet. But I’m young enough in my outlook to believe that the next “unicorn” in the technology world could come from Thailand if the conditions are right.
A talk with executives from Google, Microsoft or other big tech companies might offer a more sober assessment of Thailand’s tech talent pool. But you might be surprised to learn that Reuters, the global capital market trading platform provider, has one of its development offices in Thailand. So there is reason for optimism.
Last week in Bangkok there was a gathering devoted to tech start-ups, and in the spirit of things Pansak Siriruchatapong, the vice-minister at the Information and Communication Technology Ministry, said the government was looking at offering incentives to spur such activity.
He said the ministry would budget 100 million baht for the project, which could include special economic zones for tech start-ups and fast-tracking of work permits for foreign technical professionals.
As well, the ministry is looking at marketing campaigns to promote what it calls a “breakthrough” move.
Upon reading this I couldn’t help but burst out in laughter. Mr Pansak, did you just wake up and smell the coffee?
Where have you and the ICT Ministry been for the past decade? Countries across Asean, Asia and beyond have been aggressively pushing technology ventures for years and most have gone far beyond where Thailand is today — or might be even a decade from now.
A budget of $3 million is a drop in the ocean compared with the nearly $4 billion that the South Korean government has devoted to its world-class tech industries, or the $400 million invested by Taiwan. As for special economic zones for tech firms, Singapore and Malaysia were doing that five years ago.
I have to ask Mr Pansak: Is it not a case of too little, too late when it comes to Thailand’s offerings? What are you trying to say? Thailand’s beauty and smiles will attract talented geeks and investors alike to choose our country over the likes of Singapore which has some 500 start-up businesses operating?
I just don’t see this sales pitch getting us anywhere, other than dumping our hard-earned tax money into the already big black hole created by successive governments. In any case, how many tech entrepreneurs want to set up shop in a country where the government sees China as a wonderful role model of internet governance?
In countries that do embrace the spirit of the tech start-up industry there have been some impressive results. GrabTaxi, a household name across Southeast Asia, was born in Malaysia, for example.
Still, I don’t want to pour cold water on efforts by Thailand to back an important new industry. I’m just saying that it could be done in a better way.
I’ve met quite a few tech entrepreneurs in recent months — we profiled the co-founder of Airbnb in these pages a few weeks ago and today you can read about GoPro — and their biggest complaint relates to the struggle to break the grip of legacy operators. In many cases these legacy operators have the backing of government regulations that simply have not kept up with the times.
Airbnb continues to fight the hotel industry’s dominance, while GrabTaxi and the Ubers of the world face fierce opposition from local cab operators.
The ICT Ministry can offer all the incentives it wants, but unless the rest of the government is on board, some start-ups might go nowhere. This is where the Board of Investment (BoI) could play a lead role by setting up a special start-up desk, offering full privileges and coordinating with other ministries to remove any roadblocks to BoI-promoted tech businesses.
Proper coordination is essential to help tech start-ups because as “disrupters”, they usually are shunned by governments and others that still cling to the old ways of doing things.