INTERVIEW

Mr. Supant Mongkolsuthree

Honorary Chairman of Federation of Thai Industries

A country's manufacturing and industrial sector is an important industry to nurture and develop, as it supports many of the other industries. Mr. Supant Mongkolsuthree, Honorary Chairman of The Federation of Thai industries, talk about Thailand's manufacturing and industrial sector, it's impact, an the importance of education.

"We have many investors in Thailand, and I believe the country has great potential. Thailand’s industries work with raw materials and finished products, as well as with every step in between. Although our name is found on foods all across the world, we must define ourselves. We are known for our quality foods, but also, the automotive industry."

FDI Spotlight: Can you identify the impact of The Federation of Thai industries on the manufacturing and industrial sector here in Thailand?

The Federation, which consists of 44 industry clubs and 11 institutes, supports many industries in Thailand. The FTI has chapters across the whole country – almost every province in Thailand. We are focusing our attention on the agricultural industry, and believe this institute holds much importance. I also believe we have a strong obligation to look after others.

Since becoming Chairman of the FTI, I have ensured our national agenda is consistently focused around supporting and promoting SMEs. There are about 2.7 million entrepreneurs who need assistance and training in terms of transparency, sustainability, innovation, and we must ensure their needs are heard.

FDI Spotlight: Thailand has made the shift over many years from an agricultural based economy to an industrial based economy. Now, Thailand is, as many economic commentators would say, “stuck in the middle income trap.” In order to move up to the next level, you need to show value addition and innovation, and move toward high-value finished goods. This is obviously the biggest challenge for SMEs, because not only is there difficulty in expenditure, but also in education and awareness. How do you promote this research and development, and value addition?

Innovation is important, but so are the people. We support education and training, and look to identify worker certificates to build human capital. Every worker is different, but the certificate lets us know exactly what level he or she is at. Our economy needs to be supported. We struggled last year, and this year has been slow. There have certainly been lasting effects from the wars, but other problems linger. We are a major agricultural country. We have 20-30 million people involved with agriculture, but agriculture prices are dropping, and so is our consumption demand for the market.

FDI Spotlight: You have identified education as the vehicle to allow the population to move up. Agriculture is very much a part of the culture of Thai people. It is not just a job that they change, but many peoples’ entire life. How do you encourage these people to look to the future in a sustainable way? Otherwise, you will find this urbanization of people moving to Bangkok, to work in areas such as the informal sectors, where Thailand already has a saturation of employment. Thailand needs more people in the key sectors you outlined. How do you steer these people to these directions?

There is certainly room for improvement. Thailand has an ideal geographic location in terms of agriculture. We have water, plenty of land and good weather, and increasingly see the value in using technology for our agricultural pursuits. There is still a lot of room to make the agricultural sector more efficient. For example, perhaps we should make better use of machines and other technology, rather than our abundance of labor supply.

FDI Spotlight: I would like to highlight the big topic that everyone is talking about this year: the formal birth of the ASEAN Economic Community. You have waited for the birth of the AEC for a long time, and there has been misunderstandings of what it might be. Now, it is finally born, but it is not a light switch reaction, but a steady and gradual change. What do you make of the birth of the AEC, what opportunities can it show for Thailand’s industry, and what challenges can it also mean for the competitors in Thailand?

From the geographic side, Thailand has a lot of opportunity. Among ASEAN countries, we have seen their GDP grow quickly. I do not feel as though ASEAN is a large competitor. Rather, I believe there is much potential for ASEAN in Thailand, and that this reflects positively on our country.

FDI Spotlight: In addition to increased opportunities in corporation, there will also be increased challenges and competitiveness. How can you ensure that your Thai industry leaders are competitive against leading members of the high tech side, and also the cost competition?

 We have many investors in Thailand, and I believe the country has great potential. Thailand’s industries work with raw materials and finished products, as well as with every step in between. Although our name is found on foods all across the world, we must define ourselves. We are known for our quality foods, but also, the automotive industry.

To ensure we are keeping up to date and following the trends, such as the movement towards electric vehicles, we are trying to understand how to best produce the electric vehicle. We want to step in and try out the industry. Even though countries such as China have flourishing auto sectors, its costs are comparatively high. I believe Thailand’s electric vehicle industry holds great potential.

FDI Spotlight: Whenever I come back to Thailand, the person I like to read the most about is his majesty, the king. I love the story and the history of this man who has devoted everything to the country. When I read about his majesty, my favourite saying is from 1961 in Mahidol University, when he said “I see, I learn, and I develop.” I see that as, those who are more privileged and fortune in life should always help those who are not in that same position up. As a leader, how do you help develop those around you? Not just those in your own team and office, but everyone in your community?

An important thing to consider is our KPI. We must ask ourselves: What is the best way to do things? When I first started working with FTI, I made a strategy. I asked people to work in groups and correlate. When you work with so many other people, you must bring yourselves together to have a work shop. At our workshops, we discuss whether our policies will work, and if they are sound.

FDI Spotlight: The eyes of the world are looking for a sustainable, growing investment destination. With the stagnation of the Chinese and European markets, they are looking at Southeast Asia. How is the FTI prepared to welcome international investors into Thailand with open arms, and to partner them with the right people and right companies for the betterment of Thailand?

When I first became chairman, we opened the ASEAN information center to support initiatives such as this. My company does the groundwork to ensure we are matching and creating seminars for other countries and individuals. Because our exports are not doing as well as I had hoped, we must maximize our potential and look for opportunities in other sectors. We are paying close attention to the Middle East, an area that has great potential in terms of trade. The area is home to many companies with whom we are keen to sell and purchase products from.