Operators upbeat on reform odds

Proposal suggests fodder for guillotine

Business operators have high hopes that the government will accept a framework to reform the country’s business regulations after it was proposed last week.

The guidelines are aimed at cutting red tape and quashing corruption problems such as chronic kickbacks.

Supant Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), said business operators proposed the regulatory framework, known as “the guillotine”, to revoke more than 1,000 onerous regulations.

Reform of business and investment laws is part of a broader plan to overhaul the legal system.

“We expect to change any complexity and procedures for doing business in Thailand and close any loopholes for corruption,” Mr Supant said.

He said the FTI and other businessrelated agencies have worked closely with the government.

Last week, the federation proposed the regulatory guillotine plan to Kobsak Pootrakool, the Prime Minister’s Office minister, for consideration before submission to the National Legislative Assembly.

“The government aims to reduce the number of procedures and documents required from the business sector and overhaul the state’s departments and agencies to facilitate and support companies and people without asking for any bribes to proceed with their requests,” Mr Supant said.

Moreover, several laws are not actively enforced but remain obstacles to business activity.

Mr Supant said some laws, rules and regulations should be reviewed to meet globalisation standards, while others should be revoked because they block action by authorities.

“The government will also agree with us to revoke the unnecessary laws,” he said.

Mr Supant said the guillotine plan will focus on a reduction of procedures and documents required by the Industry Ministry, the Labour Ministry and the Eastern Economic Corridor Office in the first phase.

“It is time for Thailand to take action on the guillotine plan, like South Korea did many years ago, as Thai business operators are counting on institutional reform to unlock an overall outdated system,” he said.

According to the Thailand Development Research Institute (TDRI), 191 bills were enacted from 2011 to 2015, boosting the total number to about 900.

During that period, 661 ministerial regulations were announced in the Royal Gazette, boosting total regulations to nearly 18,000.

More than 620 royal decrees were issued over the past five years, along with 1,015 announcements and other kinds of written rules.

The TDRI estimates that more than 100,000 laws are under enforcement, hamstringing many aspects of business activity.

‘‘ We expect to change any complexity and procedures for doing business in Thailand and close any loopholes for corruption.

SUPANT MONGKOLSUTHREE FTI chairman