Industries' chair needs to be more vocal on policies

Representatives of the private sector should use their influence to question and check the government over dubious economic plans and schemes

The internal conflict at the Federation of Thai Industries (FTI) reveals the changing expectations that the organisation's members have of their executives. The FTI chairman's post has traditionally been seen as a ceremonial one, which has been rotated among member companies.

The conflict at the FTI shows that its members no longer view the FTI chair as being an inactive position. Over the years, the members of the FTI, the biggest group of Thai industrialists, have gradually raised their expectation that the chairman will represent their voice.

While the Board of Trade of Thailand and the Thai Chamber of Commerce's executives have apparently been more active in response to the government's policies, FTI chairman Payungsak Chartisutipol has been less vocal, as in the case of the minimum wage hike. Perhaps it is not in Payungsak's character to be more vocal. But whatever the reason, some FTI members are obviously not satisfied. And this has led to the call from some members to oust him from the position.

As of press time, it is unclear who might become the next FTI chairman. Although the 184 executive members voted earlier this week to oust Payungsak and appoint Santi Vilassakdanont, a former chairman of the organisation, to take over until the end of Payungsak's remaining term, Payungsak has vowed to stay on and fight.

Payungsak was criticised for not expressing sufficient concern over the wage hike. Provincial business operators in particular say they will be adversely affected if the Bt300-minimum wage is applicable nationwide from next year, as promised by the government.

The FTI was established to represent local industries in parallel with the Thai Chamber of Commerce, which represents local traders, and the Thai Bankers' Association, which represents bankers.

In fact, Payungsak was elected by the FTI after a fiercely competitive race. There were even allegations that some politicians tried to exert their influence over the FTI election process. Such political intervention should not be allowed to happen. Business associations can wield influence to lobby the government over policy direction.

These business associations should thus represent an honest view for the interests of members and stakeholders. The interests of these organisations are often different from those of politicians, whose interests tend to be short-term.

The new attention given to the top FTI post is nonetheless welcome because it shows a higher expectation from members on the role of their chairman. Over the years, expectations have been increased. The late Dusit Nontanakorn left a legacy as the chairman of the Thai Chamber of Commerce and Board of Trade by promoting a campaign against corruption. Although Dusit passed away before seeing his mission accomplished, his campaign continues.

The battle over the FTI chairmanship is not over. But whoever takes the position must act to represent the organisation's interest and to promote industries and business in Thailand.

The FTI should also encourage its members to adopt desirable positions on green technology and provide support to strengthen small and medium-sized industries. The new chairman will have to look at the big picture to support SMEs' efforts to achieve sustainable growth. A stronger voice from the private sector may help shape a desirable direction for the country's industry in an era when ministerial portfolios are handed out because of political patronage, not merit or qualification.

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Article source: http://www.thethailandlinks.com/2012/12/01/industries-chair-needs-to-be-more-vocal-on-policies/