New team, New challenges
Kittirat Na-Ranong has worn many hats in a long career that has included positions in the worlds of finance, sport and academia. Now he has turned his attention to public policy as deputy prime minister and commerce minister in the cabinet of Prime Minister Yingluck Shinawatra. He spent most of his career in the capital market, including positions at One Asset Management, First Asia Securities, Cathay Asset Management and Univentures Plc before becoming president of the Stock Exchange of Thailand in 2002. After a four-year stint, he turned his talents to football and served as manager of the Thai national team while also taking up the post as deputy director for academic affairs at his alma mater, the Sasin Graduate Institute of Business Administration at Chulalongkorn University. He subsequently became the dean of Shinawatra University. He spoke with the Bangkok Post's Chatrudee Theparat about the new challenges he faces.
I think‘Th‘ailand can no longer concentrate on labour-intensive industry given the shortage of domestic workers against the backdrop of an influx of foreign workers. KITTIRAT NA-RANONG Deputy PM and Commerce MinisterA: The media have labelled me as someone who is close to the prime minister. I told her on many occasions that that it wasn't necessary to choose me [as a minister] because I was happy working as the dean of Shinawatra University. It's a small school but we're committed to higher quality. I've worked there for 13 months and am quite proud of the quality graduates we are producing. However, I said that if the premier chose me, I would ready and would not decline _ and I would have no conditions for the position.
The premier knows me well from my work with the Thaicom foundation on the development youth football. I've been a football coach and I know it's impossible [to run a team] if everyone insists on getting a desired position.
How will you go about implementing the Pheu Thai policies, given that you didn't take part in drafting them?I knew the policies very well because I helped the party and followed the drafting process before the House dissolution. The public can also verify this because I wrote about various issues in Post Today for a long time.
What are the priority economic tasks of the government in its first six months?
My first job with Deputy Prime Minister Yongyuth Wichaidit is to draft the government policy to propose to the cabinet this coming Tuesday. We plan to finish the draft over the weekend.
Seeking solutions to high goods prices will be my direct task as commerce minister. I think the government needs to create more stability in consumer product prices. The significant issue is how to manage demand and supply because imbalances result in high goods prices. In order to solve these problems, the government may need to consider the whole process from upstream to downstream.
Frankly speaking, I'm quite worried about the management at the Commerce Ministry because carrying out policy will involve people who gain and people who lose. Farmers can enjoy better farm prices but consumers will see the impact. High exports can generate income but there could be less supply of some goods domestically.
The second issue I want to deal with as soon as possible is the rice mortgage scheme because the main-crop harvest will start soon. I am quite glad that agencies such as the Bank for Agriculture and Agricultural Cooperatives have prepared ahead of time for this. It has presented reports on the strong and weak points and solutions for the scheme.
The third priority is a policy to reduce fuel prices in order to reduce the pressure on inflation. So far, people have been looking at various options including cutting contributions to the state Oil Fund and resuming the collection of excise tax on diesel. However, the solutions will be considered first by the Energy Ministry.
The fourth mission is the policy to increase the daily minimum wage to 300 baht. I think the private sector should not panic because the government will carry out this policy in parallel with tax restructuring. In any case, government agencies and businesses should start training [workers to increase skills] first because the government will certainly implement the policy as soon as possible.
Plodprasop Suraswadi, the Science and Technology minister, has also said that his ministry will promote greater use of technology to increase productivity.
Can tax restructuring be implemented within six months?
It's not easy but it should be implemented in six months. Academics have expressed worries about the government's fiscal and monetary discipline if it cuts the corporate tax to 23% from 30%. I believe more taxpayers will come into the tax collection system because of the reduction.
How do you plan to juggle your dual responsibilities as deputy prime minister overseeing economic affairs and as commerce minister?
I think I will be spending more time at the Commerce Ministry. However, I have two deputy ministers to help me while I am working to oversee broader economic issues. I will coordinate among economic ministries and screen important issues for the prime minister to make decisions.
I expect to supervise the energy, industry, finance and commerce ministries. However, I don't see any problems working with tourism and sports and agriculture ministries because I have worked with Chumpol Silpa-archa, the Tourism and Sports minister.
Even Thirachai Phuvanatnaranubala came into the picture late as Finance Minister and didn't join in the policy drafting, but our ideas are in the same direction. I believe I will be able to work well with him.
I have also known [Energy Minister] Pichai Naripthaphan for a long time from Chulalongkorn University. It's not difficult for me to know what kinds of ideas he has we had the same teachers.
For industrial development, I think it's an appropriate time to import machinery to increase productivity as the baht's appreciation is helping to cut the costs. Entrepreneurs don't need to lay off their workers [if wages rise] but train them to increase productivity.
In any case, I think Thailand can no longer concentrate on labour-intensive industry given the shortage of domestic workers against the backdrop of an influx of foreign workers. Official figures show 1 million foreign workers in Thailand but in reality, there are three or four times that number.
If the government carries out its policies in an integrated manner, it will help bring about the stability of the baht, cut inflation and allow us to maintain not-too-high interest rates.
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