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New financial institution and deposit insurance acts considered
Bank of Thailand (BOT) Governor M.R. Pridiyathorn
Devakula recently stated he would raise the issuance of new financial
institution and deposit insurance institute acts for discussion with
newly-appointed Finance Minister Somkid Jatusripitak.
The BOT chief said the discussion would focus on a way to
push for the issuance of the two new acts, projecting that the deposit
insurance act would be put into effect soon.
“What we will discuss with the new finance minister is
how to develop the financial sector in the future. We will also discuss what
we have yet to do with the development plan made earlier. We believe we can
work together with the minister without any problem,” said M.R.
Pridiyathorn.
It was previously reported the Finance Ministry saw no need to accelerate
deliberating the deposit insurance act or forwarding it to the cabinet for
consideration. As for the financial institution act, it was in the process
of going before the parliament. (TNA)
Thailand set to boost electricity imports from Laos
Thailand is negotiating with Laos over the purchase of an
additional 2,000 megawatts of electricity, according to Energy Minister
Prommin Lertsuridej. Dr. Prommin said that the Thai proposal formed a key
part of the recent joint Thai-Lao Cabinet meeting.
Thailand hopes to purchase 608 megawatts from the Hong
Salik project, 553 megawatts from the Nam Nguen 2 project, 430 megawatts
from the Nam Nguen 3 project and 600 megawatts from the Nam Then-Hin Boon
project, as well as importing electricity from the new Nam Ngiep project.
The energy minister said that the two governments also
discussed the use of the Mekong River, which currently falls under the
cooperative framework of the six countries forming part of the Greater
Mekong Sub-regional grouping. The agenda included discussions on the
construction of electricity lines through Laos to enable Thailand to
purchase electricity from China. Thailand has proposed the construction of
dams across the river to generate electricity and to provide water for
agriculture and to relieve water disputes. (TNA)
BOT to force
better corporate governance
Bank of Thailand (BOT) Governor Pridiyathorn Devakula
expressed satisfaction at the rise of good corporate governance among
Thailand’s financial institutions, but said that future central bank
efforts to increase good corporate practices would be centered on the
issuance of orders rather than relying on institutions to make the
improvements.
Speaking during an award ceremony for institutions
exhibiting outstanding good governance, the central bank governor observed
that countries across the world were emphasizing profits and quantity at the
expense of quality and stability. This inevitably led to an explosion, and
was the cause of economic crises throughout the globe.
“Executives following the practices enshrined in the
idea of good governance should think of the benefits of their customers,
staff and communities, producing high quality products and taking care of
their workforce in terms of fair wages and benefits. At the same time, they
should minimize their adverse impact on the environment and local
communities, while returning a proportion of their profits to society.
Businesses following such practices would be successful, stable and
well-received,” said MR Pridiyathorn.
The BOT chief added, “However, the Bank of Thailand
intends to be stricter in its adherence to good governance practices,
ordering firms to make changes rather than waiting for them to make changes
of their own accord.” (TNA)
SET postpones
net settlement rule
The Stock Exchange of Thailand (SET) has indefinitely
postponed a requirement for securities brokers to seek a minimum deposit of
10% of any cash account from customers who want to trade on net settlement.
SET’s President Kittirat Na Ranong said that the net
settlement rule, which is scheduled to take effect on April 1, needed to be
postponed because the computer system of many brokerage houses were not in
place for the change. He said the latest survey found that some brokers were
still unable to install the computer system for the purpose in time. They
had no intention to delay the process, he added.
“We have to accept that each brokerage house is not
equally well-equipped in terms of the computer system and information
technology personnel. Some need to take some time to develop their system
and personnel to comply with the rule”, Kittirat said.
Kittirat said that he believed the postponement of the
net settlement rule would not affect the investment sentiment in the stock
market because investors had already absorbed the news. (TNA)
FTAs won’t hinder Thailand
Commerce Minister Watana Muangsook has affirmed Thailand
will not be put at a disadvantage following the opening of the free trade
areas (FTAs) with trade partners. He said that the country had strong
selling points, particularly in term of goods under the One Tambon One
Product (OTOP) scheme and food products, which could be a key magnet in
foreign markets.
Thailand has planned to reach FTA agreements with eight
countries, including Bahrain, India, China, Japan, the United States,
Australia, Peru, and the BIMST-EC group, comprising of Bangladesh, India,
Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal.
The commerce minister said that these countries had a
combined population of more than 3 billion. The adoption of the FTA
agreement with them would help boost the country’s export, he noted.
“With the FTA pact, we believe that obstacles to bilateral and
multilateral trade will ease, and expect that the National Economic and
Social Development Board’s and the Commerce Ministry’s target to see the
export expand 17% and 15-20% this year respectively will be met,” said
Watana. (TNA)
‘Smart cards’
to be in use by 2006
Information and Communications Technology (ICT) Minister
Surapong Suebwonglee has stated that all Thai citizens should be using
electronic ‘smart cards’ in place of conventional ID cards by the year
2006, with the first cards issued as early as this April.
Surapong said that the ministry was now ready to issue
the first batch of 10,000 smart cards on 15 April, with 12 million cards at
a cost of 1.44 billion baht to be issued by the end of the year. By the end
of 2006, conventional ID cards will be obsolete, with all Thai citizens
using smart cards, instead.
The first 10,000 cards are ones that were purchased by
the Interior Ministry prior to a cabinet resolution making the ICT Ministry
responsible for the smart card scheme. Recipients of this first batch will
include people on the government’s poverty register, residents of the
three southern border provinces of Yala, Narathiwat, and Pattani, residents
of ICT City, and people with expired ID cards. (TNA)
OTOP center to supply goods overseas
The Thai Chamber of Commerce (TCC) should mobilize
products from its networks nationwide, and use the distribution center under
the government’s One Tambon One-Product (OTOP) scheme to supply the goods
into the world market, according to Deputy Prime Minister Somkid
Jatusripitak.
While presiding over the opening of the OTOP distribution
center by the TCC, Somkid said, “The country’s economy has continued to
expand despite a series of untoward incidents. The government’s efforts to
bail out and revamp the ailing economy are on the right track.
Economy-related ministries have managed to work together efficiently over
the past three years. The latest economic figure released by the National
Economic and Social Development Board (NESDB) show that the economy is
enjoying a better-than-expected growth, and this is clear evidence that the
government can solve economic problems efficiently.”
The deputy premier said the establishment of the OTOP
distribution center has drawn full cooperation from the private sector. He
explained that OTOP products had originated under a small program but
continued to expand over the past two years and that last year, the sale of
OTOP goods totaled more than 30 billion baht, with growing demand for the
products overseas.
Somkid stressed that since the government had planned to
develop and upgrade one- and two-star class products into the three- and
four-star level this year, the OTOP distribution center should serve as a
key channel to market the products overseas. More importantly, he pointed
out, the TCC could mobilize products from provinces into the center so they
would be distributed both locally and abroad. (TNA)
New industry personnel
to be developed
Prime Minister Thaksin Shinawatra has ordered the
Ministry of Education to push through with the development of more skilled
personnel to feed into Thailand’s industrial sector, warning that the
nation’s rapid industrial expansion was being compromised by a lack of
skilled workers.
The prime minister’s pronouncement followed the
disclosure by Industry Minister Pinij Jarusombat during the March 9th
cabinet meeting that in the final quarter of 2003, Thailand’s industrial
sector grew by 10.7 percent, with particularly high expansion rates recorded
in the automobile and electronic sectors.
Pinij predicted that the industrial sector would heat up
further this year due to the expansion of production by several factories
and an increase in foreign investment. However, he warned that this meant
that the industrial sector now lacked over 10,000 skilled personnel,
particularly engineers, and said that the prime minister had ordered the
Ministry of Education to create more skilled workers to cope with this
expansion.
Pinij warned that unless more skilled personnel were
developed as a matter of urgency, foreign investors could turn to other
countries such as India and China, adding that the Ministry of Education was
coordinating with King Mongkut’s Institute of Technology to produce
automobile engineers to fill 4,000 positions. At the same time, the ministry
is collaborating with an electronic company, Seagate, to develop another
1,000 industry personnel. (TNA)
Worried public drops February consumer confidence index
Thai consumer confidence in February fell due to public
concerns about the bird flu outbreak, the unrest in the south and the
ongoing dispute over the privatization of the Electricity Generating
Authority of Thailand.
A report issued by the Center for Economics and Business
Forecasting of the Thai Chamber of Commerce University said the confidence
index fell two consecutive months this year, to 105.2 points in February
from 107.5 points in the previous month, which fell from 110.9 points in
December last year.
The report said, “The index remains above the
significant 100-point benchmark, which indicates that consumers still have
confidence in the overall situation. The eroding consumer confidence is
probably just a short-term reaction.”
The survey also showed that the confidence index for job
opportunities declined to 100.0 in January from 102.9 in the previous month,
while the confidence index for future income went down to 118.6 in February
from 121.0 in the previous month and from 123.3 in December last year.
In a more positive light, the Finance Ministry has
adjusted its growth projection for this year upwards to 7.7-8.1 percent,
from 7.5 percent originally. Main factors booting growth include private
sector investment and domestic consumption. Other contributors to the
economy include a rise in Thai stock prices and exports and low interest
rates. (TNA)
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