My previous visit to Thailand was in 2008. During that visit, while I was attending a Gas Conference in Bangkok, I tried to see the country, not from a tourist’s perspective but, through the eyes of Bangkok’s daily newspaper, The Bangkok Post.
After the visit, I wrote some notes, which focused on parallels between Thailand and Nigeria. During a recent visit, I was again drawn to read The Bangkok Post, during which I was motivated to update my observations during the earlier visit.
Thailand’s 2013 GDP was $417 billion and international reserves were about $180 billion. The Thai military is now in power, having overthrown the civilian government in May this year. At the launch of the Anti-Corruption Day, held for the fourth consecutive year by the Anti-Corruption Organisation of Thailand (ACT), the new Prime Minister, General Prayuth Chan-ocha, promised that his government regards the fight against corruption as a national assignment and a key element of national reform. He said that the problem had been accumulating for a long time and was causing severe damage to the country’s economy and reputation. Rather than just condemn corruption, as our leaders do, Thai leaders presented practical suggestions on how corruption can be tackled.
On this visit, we had the opportunity of seeing quite a bit of the countryside, outside the cities of Hua Hin and Bangkok. Much of the land in the rural areas was cultivated with fish farms and other crops, especially rice farms for which Thailand is famous. The rural areas were not lacking in potable water supply or electricity. There was solar power where the grid did not reach. Perhaps the most striking of Thailand’s rural development were the floating villages and The Floating Market, which is about 100 kilometres out of Bangkok. Our brothers from the Niger Delta can learn a lot from this floating “Town” with a labyrinth of waterways, shops and homes, served with electricity and potable water. No shanties were visible along these many kilometres of highways in the water.
Despite the political crisis facing the economy, Thailand’s competiveness jumped six slots to 31st in the current World Economic Forum’s Competitiveness Report. Nigeria is in the 127th place while South Africa and Saudi Arabia dipped to 56th and 24th respectively. Thailand’s economy appeared to be de-linked from whatever their politicians are doing.
Bangkok, with a population of seven million, is both the capital city and the centre of commerce, industry and culture. The population of Thailand is about 62 million comprising 80% Thai, 10% Chinese and other minor ethnic groups making up the remaining 10%. It has the second largest economy in South East Asia after Indonesia. It hosted 13 million tourists in 2006 and earned revenue of $15 billion from tourism that year.
Thailand’s biggest agro-industrial conglomerate plans to start producing palm oil over the next three years to capitalise on growing domestic demand for the commodity driven by its increased use in both cooking and bio-fuels. The company is to invest about $20 million and would start by planting its own land and expanding production through contract farming.
The company would set up bio-diesel business units in three locations. Each unit would consist of a dumping yard, a crushing plant and a bio-diesel refiner and either a one-megawatt power plant or a gasifier. A gasifier is expected to require an investment of about $1.6 million, while a bio-diesel plant needs about $2.6 million. The bio-diesels would be sold to oil companies. Palm trees cultivation accounts for about three percent of all cultivated land in Thailand. As we all know, palm oil was a predominant export crop in the Eastern Region of Nigeria before the civil war. Nigeria was the world’s number one producer.
The Thais are very serious about planting of trees. There is what is called the sugar palm tree. Very much like our own palm trees, they can grow quite tall but the leaves are different. Every part is useful – its leaves, trunk and particularly its fruit. Sugar is made from the sugar palm juice. Several household goods are made from sugar palm trees such as brooms, which are made from fibres. Wood from the trees is of high quality, durable and has a beautiful natural pattern. It is good for making furniture and other household items.
However, the numbers of these trees have been declining. In one province, there were about 600,000 trees in 1995 but this declined to about 400,000 by 2003. By 2006 the provincial administration, local authorities and local people launched a project to plant one million sugar palm trees. Local people have been asked to take part in the project by planting only one tree each. More than 900,000 have now been planted and the remaining will be planted this year.
Thaksin Shinawatra is a former Prime Minister ousted by the military a few years ago recently returned to Thailand. Since returning, he and his wife have been charged and granted bail on an abuse of power case relating to his wife’s purchase in 2003 of landed property valued at about $25 million.
In another development, following the Assets Scrutiny Committee (ASC) decision to press corruption charges against Bangkok Governor, the governor suspended himself from duty and handed over office to his deputy. He said that the job suspension would allow him time to answer the ASC’s allegations. The charges follow alleged irregularities in the award of procurement contract for 315 fire trucks and 30 boats valued at about $220 million which was approved in 2004. Although the Bangkok Governor elected to step aside, he is allowed to keep working until the case reaches the Supreme Court’s Criminal Section for Political Office Holders.
Thefts of parts of electricity pylon or tower are common. Thousands of kilograms of nuts and bolts anchoring pylons in place are stolen and sold as scrap metal. Those arrested face a maximum of 12 years in jail.
Somchai Jitsuchon, research director at the Thailand Development Research Institution (TDRI), said that the pressing problem for Thailand is not poverty but the income gap. This, he says, is one of the worst in the world. He illustrates it with the number of people living under the poverty line, which is four percent of the population in the urban sector against 12% in the rural areas. He says the people should be worried about the inequality trend because this is the best “fodder” for unrest.
Access to education is a major problem for low income families even if school is supposedly free. Only a small number of children are said to graduate from secondary school, not to mention university. A pension fund is a privilege for only a few. Many elderly people are mainly supported by their children working in factories and restaurants, who themselves are finding it hard to make ends meet.
Medical education via tele-medical learning is gaining ground. Thai and Japanese medical students will now be able to study complicated medical procedures from leading professors of both countries, thanks to the tele-robotic surgery project developed by Japan. Makoto Hashizume of the Kyushu University’s Faculty of Medical Science said he planned to introduce tele-medical learning to other parts of the world to improve medical education.
There are no fewer than 450 equities listed on the Thai Stock Exchange with average daily turnover for a recent week of $600 million. There are listings for Preference Shares and Warrants. Also listed are the Thailand Futures Exchange (TFEX) and a Market for Alternative Investment. There is a Rubber futures market with daily rubber trading up to 120,000 kilograms. Current quoted price is about $2.82 per kilogram. As we may recall, rubber used to be one of Nigeria’s export crops before the oil boom of the 1970s.
•Dr. Ihetu, former Managing Director of Liquefied Natural Gas Limited (NLNG), is an Oil and Gas Consultant in Lagos.
