Skills matrix screening for new directors
Guidelines go before cabinet for approval
The ground rules for the use of skills matrix, a tool to ascertain applicants’ competency and skill level, for appointing new board of directors of the state enterprises go to the cabinet for approval today.
According to Ekniti Nititanprapas, director-general of the State Enterprise Policy Office (Sepo), the State Enterprise Policy Commission chaired by Prime Minister Prayut Chan-o-cha yesterday approved the guidelines for state enterprises to apply the skills matrix to screen their new board members, starting October this year.
The guidelines will be presented to the cabinet for approval today.
Gen Prayut said fundamental skills in finance, accounting, law and information technology are necessary for the future board members of all state enterprises.
The premier added that certain special skills in specific areas are also desperately needed among the board members of certain state enterprises such as the Electricity Generating Authority of Thailand (Egat).
“Skills matrix will help strengthen the efficiency among state enterprises and the politicians would not be able to interfere in the management,” he said, citing previous practice of politicians appointing their own people to sit on the boards of the state enterprises.
He said experts from the private sector are also required to have one-third representations on each board in order to help the state enterprises boost their efficiency.
The commission also yesterday endorsed the draft state enterprises development bill, which has already passed the Council of State’s reading.
It also acknowledged the success of the rehabilitation plan undertaken by the state-owned Small and Medium Enterprise Development Bank of Thailand (SME Bank), which reduced its non-performing loans to 16 billion baht last year against the previous figure 17.9 billion baht.
The commission expects SME Bank to exit the rehabilitation phase late this year, thanks to an improving operating performance and a reduction in its nonperforming loans.
SME Bank is among seven state enterprises undergoing rehabilitation.
The others are Thai Airways International, the State Railway of Thailand, the Bangkok Mass Transit Authority, TOT Plc, CAT Telecom and the Islamic Bank of Thailand (IBank).
The commission also yesterday directed TOT and CAT Telecom to establish their subsidiaries, namely National Broadband Network (NBN) and Neutral Gateway and Data Center (NGDC), respectively, within this month.
NBN, 100% owned by TOT, will invest in domestic internet broadband and fibre optic networks.
NGDC, fully owned by CAT, will invest in setting up an international broadband network and submarine and international cables.
The commission also yesterday instructed Thai Airways to tackle its cabin factor, which at 82.8% stands higher than the industry average of 77.8%, and advised the national airline to employ better management and upgrade its service standards.