Fuel prices pegged
The government has finally stepped in to curb soaring
gasoline prices in the domestic market, pegging the prices of benzene octane
95, benzene octane 91, and diesel at 16.99 baht, 16.19 baht, and 14.59 baht
Prime Minister Thaksin Shinawatra met with top-ranked
officials of the Ministry of Energy at the Government House and said the
government had finally decided to intervene in the domestic oil market after
monitoring the world oil situation, and seeing that world oil prices rose in
an irregular trend against the market mechanism.
“The new intervention, like the one the government
announced during the war in Iraq in early 2003, will be temporary, around
only two months, aimed to curb prices of consumers goods and services in the
domestic market”, Thaksin stated.
Thaksin said the government believed that world oil
prices would continue to drop after the Chinese New Year festival.
“Given the implementation of the oil-price ceilings,
the government sees no reason for local traders and entrepreneurs to raise
their prices of goods and services and all the prices must stay
unchanged”, stressed the Thai leader.
“Another point I have to clarify is that after the
world oil prices begin to drop, expected in early February, the government
will not immediately end the current oil-peg measure, but maintain it for a
certain period of time to collect some money for the oil-fund, meaning that
domestic oil prices will not immediately drop when the world oil prices
decline early next month”, Thaksin said.
It is expected that the government will use no more than
5.0 billion baht to compensate to local oil firms during the pegged
oil-price period, according to Thaksin. (TNA)
Thailand will become leader
in Southeast Asia in next 5 years
Prime Minister Thaksin Shinawatra says he is confident
that Thailand will become the top-ranking country in Southeast Asia within
the next five years, given its impressive economic growth and successful
solution to the country’s problems in many areas.
Delivering a special lecture on “New Dimension on
Management and Strengthening of Economy,” Thaksin said new leaders need to
improve themselves in all dimensions and always learn more. “They must
understand the political, economic and social development; otherwise, they
would be unable to lead the country to catch up with other ones,” he said.
Thaksin said, “As an executive I am aware that the
country’s problems can not be solved if attention is paid to external
factors only. The government needs to take into account both internal and
external factors to cope with the problem successfully.”
He conceded that Thailand still lagged behind many
countries in term of economic development. But he was confident it would
emerge to be the top-ranking country in Southeast Asia within the next five
Last year Thailand’s exports grew 16%, and are expected
to continue to expand in the following years. According to Thaksin, in the
past two years, since his government has been administrating the country,
most economic sectors have expanded.
Some critics have expressed fears the Taksin government
would make the country’s economy collapse like that in Argentina without
thorough consideration of actual figures, he mentioned.
Responding to this view, Thaksin said, “Everybody, even
fools, realize the that Thai economy has picked up, as could be witnessed by
an increase in international reserve to US$42 billion, and the early debt
repayment with the International Monetary Fund (IMF).”
The Thai PM added that the country now enjoyed a current
account surplus of up to US$7.5 billion, or around 300 billion baht, as the
economy grew at a rate of 6.3 percent and the inflation rate stayed at 1.8
percent. Given these factors, the premier said, he was confident the country
would not have foreign debts within three years of his government’s
MOF organizes foreign road shows
The Ministry of Finance (MOF) is organizing a mass
collection of foreign road shows from the end of January onwards in a bid to
generate greater understanding among foreign investors, and to attract more
investment to Thailand.
Finance Minister Suchart Jaovisidha’s itinerary will
include Singapore, London and Boston, where the minister hopes to educate
potential investors on Thailand’s economic situation and privatization
plans. In March, Suchart will travel to Tokyo, which together with the first
three destinations forms one of Thailand’s most important sources of
New consumer protection board to be created
Prime Minister Thaksin Shinawatra has ordered the
establishment of a consumer protection board to boost the protection offered
to Thai consumers. He said that the consumer protection policy committee
would oversee the three agencies currently responsible for consumer
The agencies include the Food and Drug Administration
(FDA), the Department of Internal Trade, and the existing Consumer
Protection Board. (TNA)
Thai companies go on Iraqi road show
The Thai government sent 13 companies to participate in a
road show on the reconstruction of Iraq to vie for projects worth over US$50
billion. Thailand was one of 19 countries participating in the road show,
which was held in Kuwait on 19-21 January.
Sponsored by Kuwaiti Prime Minister Sheik Sabah Al-Ahmed
Al-Jaber Al-Sabah, the 2004 Iraqi reconstruction road show was the largest
international event of its kind to be held in Kuwait for 50 years.
Companies from the 19 countries, which included those
from the Middle East, Europe, Australia and Asia, proposed projects worth a
total of over US$50 billion. It is thought that the reconstruction of Iraq
over the next five years will cost as much as US$100 billion.
Most of the contractors in the initial stages of the
reconstruction process will be US and UK companies. Nonetheless, the Kuwaiti
government described the road show as a golden opportunity for companies
providing equipment for communications in commercial airports, airport
parts, airport services, transportation equipment, construction services and
The Kuwaiti government has also noted that all of
Iraq’s ports require substantial and urgent development, while there is
also an urgent need for health services, agricultural and environmental
services, air conditioning systems, information technology and hotels. (TNA)
SME Bank joins with provincial governors to create new entrepreneurs
The Small and Medium Enterprises Development Bank (SME
Bank) has announced that it would join hands with ‘CEO-style’ provincial
governors to create 100 new entrepreneurs in each province. Bank director
Chotisak Asaphawiriya said that the bank expected that the collaboration
would see the creation of several new entrepreneurs. He said that the bank
was also working to slash red tape within the organization in order to speed
up the process of providing credit to SME customers.
This year the bank hopes to extend loans worth 36 billion
baht, up from 30 billion baht last year. The bank will focus on providing
loans to cluster businesses in seven industries.
Later this year the bank will celebrate is first
anniversary by holding a ‘SMEs Plus 2004’ event, where entrepreneurs
will be offered special concessions for loan analysis. (TNA)