THAILAND'S government bureaucracy and state enterprises must develop the policies and framework needed for the private sector to deal with the next phase of the country's economic development, according to a report issued by Political & Economic Risk Consultancy.
The report said the Government must remove structural obstacles to pursue its goal of becoming a strategic gateway to mainland Southeast Asia and southern China.
This included developing Bangkok as an offshore banking market, the report of the Hong Kong-based consultancy said.
Among the biggest challenges facing the Government was dealing with the constraints on social infrastructure, the report said.
The Government had boosted investment in the provinces to spread economic development and ease the strain on Bangkok's overburdened infrastructure, it noted.
But unless more attention was paid to education and training, the report said Thailand's labour force would not have the skills needed to attract investment in higher technology and higher value-added industries.
Thailand's overall risk fell slightly compared with the first quarter due primarily to political stability and the fact that the Government of Prime Minister Chuan Leekpai appeared less vulnerable, the report said.