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Japanese investors gain confidence in Thailand's flood prevention measures
OSAKA, June 28 -- Japanese investors are more
confident of Thailand's flood prevention measures after participating in
a seminar on Thailand's investment promotion policy in this Japanese
city on Thursday.
Held by Thailand's Board of Investment (BOI), the
Japan External Trade Organization (JETRO), and the Osaka Chamber of
Commerce and Industry (OCCI), a seminar led by Thai Industry Minister
Pongsvas Svasti on Thailand’s industrial strategy and its investment
promotion and water management plan was presented to about 400
participants.
The minister said Japanese investors gained confidence that Thailand’s
infrastructure development measures can prevent future floods.
Osaka is home to Japan’s largest electronics and electric appliance
production industries and is an important centre for attracting Japan's
small and medium-sized enterprises (SMEs) to invest in Thailand.
Thai representatives also clarified the Thailand’s economic situation,
emphasising that it has quickly and strongly revived, while inviting
investors in Osaka, mostly in the metals industry, to invest and support
the automotive industry in Thailand.
So far construction of embankments has not started at Ayutthaya's
Saharattananakorn Industrial Estate, but the Industry Ministry is
considering a temporary flood prevention measure within a budget of
Bt100 million. Any industrial estate can use this sum of money,
according to Mr Pongsvas.
In a related response, Deputy Transport Minister Chatchart Sittipan told
the Japanese audience that his ministry will elevate the road level in
front of Saharattananakorn Industrial Estate as flood prevention, while
the industrial park must build flood embankments to link with the road.
Meanwhile, the Office of the National Economic and Social Development
Board (NESDB) Secretary-General Akom Termpittayapaisit addressed
Japanese investors at the seminar regarding factors in support of
Japanese investments in Thailand such as labour, infrastructure, the
transport network, railway development, road network linkages to ASEAN
countries, and hydropower dam construction as in a Thai-Lao project for
energy security.
Japanese investors rank first as foreign investors in Thailand, counting
as 45 per cent of BOI's investment promotion application projects for
the first five months of this year. (MCOT online news)
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Commerce Ministry reiterates full support for export sector
BANGKOK, 28 June 2012 (NNT) - The Commerce Minister
has reiterated his full support for the export sector in the face of the
European financial crisis, while announcing May's export growth at 7.7%.
Commerce Minister Boonsong Teriyapirom has reported that although
Thailand's five-month export figure has shrunk to 1.4%, export in May
alone rose to 7.7%, indicating a positive trend for the sector. The
growth has been contributed by the full recovery of production capacity
of such industries as automobile, auto-parts and electronic parts.
Meanwhile, the gems and jewelry sector's export in May saw a slight
improvement after having experienced a negative growth during the past
4-5 months, given its dependence on the European markets.
Mr. Boonsong has insisted that the ministry is keeping a close eye on
the financial crisis of Europe, while also exploring alternative
markets, such as Asia or Eastern Europe, both of which also possess high
purchasing power. Additionally, the ministry will reinforce the
potential of exporters by providing tax incentives, which is currently
pending consideration from the Finance Ministry, in order to assist the
export sector.
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New metro fare to come into effect in July
BANGKOK, 28 June 2012 (NNT) - The Bangkok Metro
Public Company Limited (BMCL) has announced an adjustment to the metro
fare, which is scheduled to come into effect in July 2012.
The BMCL has disclosed that it will hold a special promotion period to
help relieve the public's financial burdens by maintaining the metro
fare at the current rate of 15-40 baht for passengers using single
journey tokens and standard stored-value cards from 3rd July to 2nd
October 2012. Under the contract made with the Bangkok Metropolitan
Administration, the BMCL has been authorized to raise the transportation
fare to 16-40 baht starting next month.
Meanwhile, a new rate will be applied to other types of tickets for
children, senior citizens and students. The new fare will be effective
during 3rd July 2012-2nd July 2014. However, a 50% discount will still
be maintained for children and senior citizens.
Starting on 1st July, the price of the 30-Day Pass will be adjusted
upward from 1,200 baht to 1,400 baht in line with the new fare rate.
However, the 1-Day Pass and the 3-Day Pass will be maintained at the
same price of 120 and 230 baht, respectively.
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Thailand-Brunei in closer cooperation for AEC in 2015
BANGKOK, 28 June 2012 (NNT) – Thailand and Brunei
Darussalam are getting closer in the area of technical cooperation ahead
of the realization of the ASEAN Economic Community (AEC) in 3 years'
time.
Permanent Secretary to the Prime Minister’s Office
Tongthong Chandransu on Wednesday joined Pengiran Haji Abdul Haris bin
Pengiran Haji Shabudin, Permanent Secretary to the PM's Office of
Brunei, in chairing the 11th joint technical committee’s meeting between
the two countries.
The Bangkok meeting is a part of the Thai-Brunei MOU on cooperation in
the field of information and broadcasting, aimed at promoting an
exchange of broadcasting materials, news items and better understanding
among the citizens of both nations.
Mr. Tongthong stated that, in order for Thailand to be ready for the AEC
in 2015, the country must acquire essential information and
understanding as well as amicable relations with citizens of the 9 other
ASEAN nations.
He said that improved communication and constant exchange of PR data and
techniques will make it easier for Thailand to achieve such a goal.
The Thai Permanent Secretary to the PM's Office added that Thailand will
stand to benefit from Brunei's experience in development and economic
affairs due to its abundant energy supply and stable economic condition.
During the period of meeting, an exhibition to portray healthy ties
between Thailand and Brunei under the theme 'Connectivity in the ASEAN
Community' and a musical and cultural exchange event have been organized
at the Public Relations Department auditorium.
Mr. Tongthong said that the public are invited to join in both
activities until June 29th.
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BoT: Commercial bank loans growing 15%
BANGKOK, 28 June 2012 (NNT) – The Thai central bank
has revealed that local commercial bank loans are expanding at a
satisfactory rate of 15 percent.
Bank of Thailand (BoT) Assistant Governor Salinee
Wangtal said that the latest data shows that the country's commercial
bank loans have been growing at the rate of 14-15 percent.
Ms. Salinee stated that the recorded growth rate is sound while the BoT
has found that the quality of debtors and the loans has been nothing out
of the ordinary.
She noted, however, that even though SME loans appeared to be growing at
a slightly lower rate than the overall loan growth, it is believed that
there will still be a sizable and continued demand for fund in the
market.
The BoT Assistant Governor indicated that there are currently around 2
million small SME operators under the central bank’s support and they
are likely to be in need of more bank loans.
Thai commercial attaches brief Commerce Minister on EU crisis
BANGKOK, 28 June 2012 (NNT) – Commerce Minister
Boonsong Teriyapirom has acknowledged the plans of Thai commercial
attaches worldwide in tackling the EU economic recession. The plans will
be submitted to the prime minister on 30 June 2012.
On 27 June 2012, Mr. Boonsong was briefed on the international trade
situation and measures to deal with effects of the Eurozone crisis by
the Thai commercial attaches stationed in 43 countries. He said his
meeting with the officials focused on the impacts of the EU’s falling
economy on Thai exports, especially the economies of high risk
countries, such as Greece, Spain, Italy and Cyprus. The Thai trade
representatives informed the minister of export figures as well as
economic situations in countries that are Thailand’s competitors.
Mr. Boonsong said the ministry had assigned the Export-Import Bank of
Thailand to provide soft loans to the affected businesses in order to
increase their liquidity. The amount of loan for each business will be
considered by the Ministry of Finance.
Latest data shows that Thai exports to the EU in May 2012 have increased
by 6.8% or 1.97 billion USD. The growth is considered a good sign.
The Thai commercial attaches from the Eurozone countries expressed their
confidence that Thai exports to Europe still stood a chance to expand
since Europe is a large market with high purchasing and bargaining
powers despite the current crisis. The commercial attaches have warned
about the economies of high risk countries, such as Greece, Spain,
Portugal and Ireland, and suggested that Thai businesses should give
priority to the upper market of the service sector in such countries.
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Thai central bank more worried over Euro-zone debt crisis fallout
BANGKOK, 28 June 2012 (NNT) – The Bank of Thailand
(BoT) is more worried about the fallout of the Euro-zone debt crisis on
Thai exports.
BoT Governor Prasarn Trairatvorakul said that the impact of the economic
crisis in Europe has been more vivid, particularly on the export sector.
Mr. Prasarn stated that the export industry has been experiencing a
slowdown after purchase orders from several markets, including Europe,
the US, China and Asia, have decreased.
In spite of this, he believes that the 2012 export growth will end up at
7-8 percent as the BoT has earlier expected.
Mr. Prasarn went on to say that the Euro-zone debt crisis has somewhat
hurt the financial sector but the situation remains normal.
He added that, as foreign funds are being diverted to safer assets, such
as the US dollar, it is likely that the greenback will become overly
appreciated and stronger than the US economy in the end.
Concerning the impact on the baht, the central bank chief has assured
that the BoT will still be able to keep the Thai currency under control.
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Commerce Ministry holds “BIFF&BIL 2012” fair
BANGKOK, 27 June 2012 (NNT) – The Commerce Ministry
is holding “BIFF&BIL 2012” fair to promote trade negotiations between
Thai fashion and leather entrepreneurs with partners in ASEAN countries.
Deputy Minister of Commerce Poom Sarapol presided over the opening of
“BIFF&BIL 2012” fair, which is a joint effort between the Department of
Export Promotion and 15 fashion and Thai leather industries, in hopes of
promoting Thai entrepreneurs and the country to become a centre of
leather production of the ASEAN region and the world in the future.
The Department of Export Promotion has been supporting a full-cycle
development of the Thai fashion and leather industries. Currently, the
products have become major income earners of Thailand, with rising
export value year by year. In the first 4 months of 2012, the exports of
fashion and leather products earned 6.8 billion US dollars.
"BIFF&BIL 2012" fair has been organized under the concept of “ASEAN
INTEGRATION : SUCCESS & BEYOND” and is a very important stage for trade
negotiations among ASEAN members. The fair will be held until the first
of July 2012 at Challenger Hall 2, Impact Arena Muang Thong Thani with
more than 500 Thai and foreign companies participating.
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Industry Ministry prepares risk management scheme for SMEs in face of EU crisis
BANGKOK, 27 June 2012 (NNT) – The Department of
Industrial Promotions (DIP) is collaborating with the Thailand
Productivity Institute in devising a risk management scheme for SMEs to
cope with the European Union financial crisis.
DIP Director-General Pasu Loharjun commented that the department is
currently discussing with the Thailand Productivity Institute to
establish a risk management program for SME entrepreneurs, in order to
help them adapt to such crisis as the ongoing European economic slump.
Expected to be ready by August, the risk management scheme is aimed at
helping SMEs face as little negative impact as possible from external
factors. Entrepreneurs will be suggested to distribute purchase orders
to members of the same cluster, cooperating with many suppliers and
finding alternative markets to spread risks. The program will save up at
least 100,000 baht in budget for each factory.
Mr. Pasu also added that uniting together in a cluster is a good way of
lowering production costs for the factories. There are currently 50
cluster groups, including the Petchkasem Textile and Garment Cluster,
the Thai Food Cluster, the Thai Leather Cluster, the Sweet Corn Cluster
and the Ceramic Cluster, among others.
Meanwhile, the DIP is currently hosting “Cluster Day 2012” with the
objective of reinforcing the competitiveness and increasing market
channels for SME entrepreneurs. Held during 26th-29th June, the event is
expected to generate a revenue of 800,000 baht.
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Economic Cabinet to meet on EU crisis
BANGKOK, 26 June 2012 (NNT) - The Cabinet has
approved the forming of three working groups to be responsible for
making daily and weekly economic updates on the effects of the Eurozone
crisis. in addition, the economic ministers will meet on Wednesday to
discuss preparations for the economic slump.
According to Deputy Government Spokesman Anusorn Eiamsa-ard, during
today's cabinet meeting, Deputy Prime Minister and Finance Minister
Kittiratt Na-Ranong expressed his concerns over the EU economic crisis
in light of Moody’s downgrading of many banks worldwide and its possible
effects on Thai economy.
The meeting of the economic cabinet comprising ministers of nine
economy-related ministries will take place tomorrow to brainstorm ways
to tackle the Eurozone crisis.
Economic updates by the three working groups will focus on both direct
and indirect effects of the crisis on Thai exports which have reportedly
shrunk by 3.5%
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Cabinet approved extension of THB50mil deposit protection by 3 more years
BANGKOK, 27 June 2012 (NNT) – The Cabinet has agreed
to continue the state-initiated deposit protection plan for depositors
until 2015.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on
Tuesday that the Cabinet has resolved to approve the Deposit Protection
Agency (DPA) to continue the protection service for depositors for 3
more years, or until 2015.
Under the DPA service, the protection is provided for the maximum amount
of 50 million baht per account.
The protected amount is originally due to be adjusted down to 1 million
baht per account after August 11th this year, in order to allow a level
ground for competition among private banks and financial institutions.
Mr. Kittiratt said that the extension of the protection service is also
needed to boost the confidence of depositors in Thai financial
institutions while the debt crisis in Europe remains unresolved.
He added that the maximum protected amount will be lowered to 25 million
baht after 2015, and gradually adjusted down to 1 million baht as
originally planned later.
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Exemption of excise tax on local diesel sales extended until 30 July
BANGKOK, 27 June 2012 (NNT) – The government has
decided to extend the tax exemption on diesel sales by one more month.
Deputy government spokesperson Pakdihan Himathongkham
said on Tuesday that the weekly Cabinet meeting has resolved to postpone
the expiry date of the exemption of excise tax collection on diesel from
June 30th to July 31st.
The extension of the tax exemption is estimated to cost the government
around 9 billion baht per month in lost revenue.
Previously, Deputy Prime Minister and Finance Minister Kittiratt
Na-Ranong had stated that the tax exemption for diesel sales would not
be extended in order to allow the State Oil Fund to boost its cash
reserve, which is essential in stabilizing the country’s fuel prices.
Mr. Kittiratt also stated that the resumption of the excise tax
collection will help the government achieve its revenue target of 1.98
trillion baht by the end of the current fiscal year, or October 31st.
Guinea welcomes Thai investors in industry, agro industry
BANGKOK, June 25 - President Alpha Conde of the
Republic of Guinea today invited Thai entrepreneurs to invest in
industry and agro industry in Guinea, which is rich in natural resources
and has potential for development.
The president is visiting Thailand from June 24 to 26
to foster bilateral relations between the two countries.
He said about 70 per cent of food and agro industry, belonging to the
military and the private sector but operated poorly, have been
nationalised.
Speaking about the potential investment in his country, he said the
country has natural resources such as mines, gold, and diamonds.
Numerous oil fields have been discovered.
And the country is also ready to cooperate in industry and in geological
survey with other countries.
However, energy and public utilities are the country’s shortcomings,
although it has potential water resources to be developed to supply
hydroelectric energy resources for other West African nations.
Currently, Guinea is capable of generating 100 megawatts of electricity
and has cooperated with China in constructing a dam to produce 250
megawatts of power. It also planned to coordinate with Canada in
building another dam at the end of this year.
To upgrade its infrastructure, Guinea has a project to develop
infrastructure by building 600 kilometres of railway tracks.
The president hoped Guinea and Thailand will cooperate in modern
agriculture for sustainability as Thailand has a strength in food
production. The bilateral cooperation can cover fisheries and the
livestock industry.
Meanwhile, Industry Minister Pongsvas Svasti said Charoen Pokphand Foods
Pcl, Thaland’s largest food processor, PTT, the oil conglomerate and
Italian-Thai Development, a leading infrastructure contractor are all
interested in conducting feasibility studies on investment in Guinea.
Bilateral trade between the two countries was recorded at US$30 million
in 2011, an increase of 200 per cent. (MCOT online news)
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Interest rate direction depends on euro zone debt crisis
BANGKOK, June 26 – There is no need for the Bank of
Thailand (BoT) to lower its key interest rate, unless impacts from the
euro zone debt crisis become worse than anticipated and inflation as
well as the gross domestic product (GDP) is not within the anticipated
range.
Narongchai Akrasanee, a member of the BoT Monetary
Policy Committee (MPC) said that inflation is likely to be around three
per cent as projected by the Bank of Thailand, obviously favoured by
dropping global oil prices.
The National Economic and Social Development Board (NESDB) assessed the
impact of the euro zone debt crisis and remains confident that the Thai
economy will grow 5.5-6.5 per cent. The MPC applied the monetary
policies to oversee the inflation along with the economic growth rate.
Mr Narongchai conceded however that if impacts from the euro zone debt
crisis become worse than earlier anticipated and GDP growth is less than
five per cent, it is possible that the MPC will decide to cut its policy
interest rate to stimulate the economy.
The government should speed up implementation its investment projects on
flood prevention and infrastructure to boost the domestic economy and
ease the impacts from the euro zone crisis, he suggested.
Regarding goods prices, Mr Narongchai said he does not agree with the
commerce ministry’s plan to issue price control measures for some
consumer goods and cooked meals as it can negatively affect traders with
low incomes and no welfare benefits.
The government should support free market competition, he said,
reasoning that prices of cooked meals such as rice with curry have no
significant impact on inflation which mainly relies on oil prices. (MCOT
online news)
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Thai Air Asia to move its base to Don Muang in Oct
BANGKOK, 25 June 2012 (NNT) - Thai Air Asia, a
subsidiary of the region’s largest low-cost airline, Air Asia, is
planning to relocate its base from Suvarnabhumi Airport to Don Muang
Airport on October 1 this year.
Chief Executive Officer of Thai Air Asia, Tassapon Bijleveld, said the
airline’s new base in Don Muang Airport will comfortably accommodate
millions of its domestic and international passengers annually. He added
that following months of negotiations with the airport operator,
Airports of Thailand, the low-cost carrier’s decision to move its entire
operation to Don Muang is now final as the new hub will provide greater
convenience to their cost management and passengers.
The move also aims to avoid heavy traffic at Suvarnabhumi Airport and to
accommodate the carrier’s Airbus A320 fleet expansion from 24 to 48
aircraft through to 2016.
All flights of Thai Air Asia will begin services at Don Muang Airport
from October 1 onwards, with the same flight schedules.
Passengers can contact the airline’s call center at 02-515-9999 for more
information or visit www.airasia.com.
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KTB loans businesses ฿2 billion to promote employment
BANGKOK, 25 June 2012 (NNT) – Krungthai Bank (KTB) is
loaning 2 billion baht to registered corporations on a low-interest rate
with 3-year installment in order to help promote employment.
Mrs. Sriprapa Pringpong, Senior Vice President of KTB, stated that the
bank and the Social Security Office (SSO) are supporting the loan
program with a 2-billion-baht budget, hoping to increase the capability
of registered corporations to employ more labors and pay higher salary.
Under the program, the companies are eligible for low-interest loans
with 3 years of installment. In case of loaning with collateral, the
interest rate is set at 3 percent per year, and for loaning with a
guarantor, the interest rate is 5 percent per year, on the condition
that the loan must not be used to reimburse existing debt.
Companies wishing to receive a loan are required to have been
contributing to the Social Security Fund for at least 3 consecutive
months while maintaining an employment status of 80 percent or more of
all insured employees.
Corporations with less than 50 employees are entitled to a loan worth 1
million baht or less. Corporations with 51-200 employees can receive 2
million baht or less, while those with more than 200 employees can be
loaned 4 million baht or less.
The loan is provided from now through December 31. Applications are
accepted at all KTB branches.
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Commerce Ministry: Thai export grows despite trade deficit
BANGKOK, 25 June 2012 (NNT) – The Ministry of
Commerce views an increase in Thailand’s export in the month of May as a
positive sign despite a trade deficit caused by massive imports of
machinery.
Deputy Minister of Commerce Poom Sarapol declared that the value of
Thailand’s export increased in May by 7.68 percent to stand at 20.9
billion US dollars, which is a positive sign for the Thai export sector.
However, he admitted the fact that there was still a deficit in the
trade balance between export and import by 1.7 billion US dollars in
May. Trade balance in the first 5 months of this year also recorded a
deficit worth 9.7 billion US dollars.
The main reason behind the deficit is that Thai entrepreneurs have been
importing new machinery to replace old units that were damaged by the
flood last year. The Deputy Minister believed that export will continue
to grow in June and through the rest of the year, with the export value
hovering above 20 billion dollars each month, while a trade surplus will
be achieved again by year’s end.
Mr. Poom also said that Prime Minister Yingluck Shinawatra will chair a
meeting on June 30 regarding Thailand’s export in a bid to assess the
export situation and provide support for entrepreneurs. He added that
the Ministry of Commerce remains confident in its ability to maintain
the export growth at 15 percent as targeted.
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Commerce Ministry to peg product prices until August
BANGKOK, 25 June 2012 (NNT) – The Ministry of
Commerce has vowed to stabilize product prices until August this year
despite a tendency that energy prices will drop.
Permanent Secretary for Commerce Yanyong Phuangrach said the ministry's
2nd “Blue Flag Fair: Thais Help Thais” at IMPACT Muang Thong Thani from
21-25 June was a success. Scores of people have visited the event to buy
products sold at 20-40% lower than normal prices in the market. The
number of visitors during the five-day fair is estimated at over 300,000
people with the total sales exceeding the target of 200 million baht.
The fair is also expected to help reduce people’s cost of living by 100
million baht. Famous products during the Blue Flag Fair this year
include eggs, vegetable oil, pork, sugar and rice.
As for the current situation of product prices, Mr. Yanyong said the
prices of fresh food products were reportedly lower than last year. He
added that the energy price decrease would help bring down the costs of
production of goods while predicting that the second quarter inflation
rate would be low and the average rate of the first two quarters would
stand at 3%. Nonetheless, the Permanent Secretary insisted that product
prices would be kept unchanged until August despite the declining
production costs.
Another tool of the Commerce Ministry to assist the general public is
the “Thuk Jai” shops, which sell 20 groups of low-priced commodities.
2,800 “Thuk Jai” shops have started selling cheap products so far. To
distribute the commodities faster, the ministry has assigned Thailand
Post Co., Ltd. to set up 15 distribution centers across the country.
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BOI: Investment projects rise despite fear of flood
BANGKOK, 25 June 2012 (NNT) - Despite fears of a
possible repeat of last year's flood catastrophe, the private sector
still places its confidence in Thailand, with as many as 72 businesses
applying for investment promotional privileges at the Board of
Investment of Thailand (BOI) during the first six months of this year.
Industry Minister M.R.Phongsawat Svastiwat said that the BOI had
initiated special incentive measures to boost post-flood investment in
flood-affected industrial areas. With the proposed incentives, 72
entrepreneurs have submitted projects worth 34 billion baht for
investment promotion. Among the applicants, 57 are those already
investing in the flood-affected areas, while the 15 remaining applicants
are new-comers who wish to make their investment in the flooded zone.
At a recent BOI meeting to find successful applicants for the
promotional incentives, the panel gave the green light to 11 projects,
worth 5.22 billion baht in total. Pepsi-Cola (Thai) Trading Co., Ltd.
has requested to invest 2.4 billion baht to relocate its snacks business
from Lamphun northern province to Rojana Industrial Park in Ayutthaya
central province which is closer to its customers’ warehouses. Seven
other approved projects also belong to industries located in the
industrial park which was heavily flooded last year, while only 3
flood-affected businesses have requested to relocate to other regions to
prevent risks.
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DITP sets up center to cope with Euro-zone crisis impact
BANGKOK, 25 June 2012 (NNT) - Department of
International Trade Promotion (DITP) is planning to set up a service
center to cope with the impact of the European economic crisis and also
to focus on penetrating ASEAN Market
Director General Department of International Trade Promotion Nuntawan
Sakuntanaga has revealed that, in order to better handle the Euro-zone
crisis, Department of International Trade Promotion will set up a
service-center called “One Stop Service”, focusing on ASEAN market
penetration by increasing Thai exports to the Asean regional block this
year; which already has risen in ratio by 25.7 percent in the first 4
months.
As a result, Thailand will be penetrating Indonesian market by exporting
Thai-brand products such as accessories, Muslim clothes, children’s
wear, and fashion bags.
Organic products of the “Royal Project”, fruit, and vegetables will be
exported to Singapore. In addition, Thailand will focus on exporting to
economy-based cities in Cambodia and foreign investments in Myanmar.
Furthermore, there will be 13 exhibitions of Thai consumer products in 8
different countries, both in the main and new economy-based cities of
ASEAN. The department also aims to encourage Thai entrepreneurs to
invest more in foreign countries like Loas, Myanmar, Cambodia, and
Vietnam in order to build networks and procure raw materials.
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Politics to remain risk factor for Ratchaprasong entrepreneurs
BANGKOK, 25 June 2012 (NNT) - The Ratchaprasong
Square Trade Association (RSTA) has indicated that politics will become
the major risk factor for the economy during the second half of the
year, while stating that the European crisis will lead to a minor drop
in the overall tourist count.
RSTA President Chai Srivikorn said that businesses located in the
Ratchaprasong intersection area are still worried over the ongoing
political unrest during the second half of this year. Concerned about
more political rallies which might occur in the area, entrepreneurs in
the Ratchaprasong intersection are calling for harmony in the society.
Meanwhile, a number of closed-circuit television cameras (CCTVs) have
been installed in the area for safety purposes.
In addition, Mr. Chai said that the financial crisis taking place in the
European Union at present will cause a decline in the number of European
tourists traveling to Thailand. However, the loss will be compensated by
tourists from China, India, Russia and Arab countries, all of whom
possess high purchasing power and will, thus, reduce the impact on the
tourism sector.
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SMEs urged to invest in ASEAN
BANGKOK, 25 June 2012 (NNT) – The Industry Ministry
is urging SME entrepreneurs to explore investment opportunities in ASEAN
countries in preparation for the ASEAN Economic Community (AEC); to be
formed in 2015.
The Board of Investment of Thailand (BOI) is currently devising
investment promotion measures to encourage overseas investment among
Thai SME entrepreneurs. The ministry plans to pilot the scheme with
medium-sized enterprises at the initial stage as they possess more
readiness and potentials than small-scale businesses.
During the past 10 years, Thai entrepreneurs have altogether invested 5
billion dollars in the ASEAN region, making Thai the second largest
investor in ASEAN, only after Singapore.
Studies have shown that Indonesia is the most convenient country to
invest in. The archipelago possesses a population of over 200 million
and boasts a large market. Moreover, the labour wage in Indonesia is
moderate while workers possess the necessary skills. However, employees
may have some difficulties hiring local Indonesian workers might during
Ramadan, the Islamic month of fasting.
Myanmar is also an interesting investment destination in the ASEAN
region. With the longstanding tie between Thailand and Myanmar, the BOI
believes that early investment in the neighbouring country will give
Thailand a head start on other countries in finding new markets. Even
though Myanmar’s infrastructure is still in need of improvement, the
country possesses abundant natural resources.
Meanwhile, with over 100 billion baht already invested in Vietnam during
the past 20 years, the Industry Ministry is aiming to increase the
volume of Thai investment in Vietnam in industries, such as textile and
garment.
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Customs Department confident will reach target revenue this year
BANGKOK, June 24 - The customs department is
confident that customs revenue collection in the last four months of the
fiscal year will surpass the target by 10 -12 billion baht despite the
eurozone crisis.
Director-General Somchai Pulsawas said although the
European economy is facing problems, Thai exports can still depend on
trade with ASEAN (Association of Southeast Asian Nations) countries.
The trade value with the European Union in the first eight months of the
2012 fiscal year was recorded at 787 billion baht including 360 billion
baht of imports and 427 billion of exports, a drop of 12.2 percent
year-on-year.
However, he said the overall trade value in the first eight months of
the 2012 fiscal year from October 2011- May 2012 was 9.23 trillion baht,
a 6.7 percent growth.
Imports valued in this period were at 4.8 trillion baht, expanding 14.2
percent with exports worth 4.36 trillion baht, shrinking 0.54 percent,
compared to the same period last year.
According to the customs department, customs net revenue collection in
the first eight month of the 2012 fiscal year amounted to 79.4 billion
baht, about 10 billion baht or 14.63 percent higher than the target.
(MCOT online news)
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Investment body approves 11 rehabilitation projects from last year's flood
BANGKOK, June 22 - Thailand's Board of Investment
(BOI) on Friday approved rehabilitation privileges for 11 projects
following last year's flood, worth over Bt5.2 billion.
Industry Minister Pongsawat Svasti said after the
subcommittee met to considering flood-response investment promotions to
boost restoration after the mega flood.
The 11 companies included Pepsi-Cola (Thai) Trading with a Bt2.3 billion
business expansion as a new project in Ayutthaya, Thai Glico with a
Bt250 million business expansion for snacks in Pathum Thani for higher
domestic demand and exports, Nidec Machinery (Thailand) with a Bt3.8
million investment for machinery used in the electronics industry in
Pathum Thani, B.S. Kamiya for metal enameling in the autoparts industry
with a Bt60 million investment at its same location in Ayutthaya.
Companies producing electronics and metal parts for hard disk drives
were also approved. Shin-ei Precision (Thailand) at Bt327 million, and
Section Technologies (Thailand) at Bt1.1 billion, both in Ayutthaya
province.
Other firms approved were AGC Electronics (Thailand) for electronics
glass components, getting an investment promotion of Bt890 million in
Lamphun province, and metal manufacturing company Single Point Parts
(Thailand) Plc, also for electronics products, was granted at Bt85
million investment value in Ayutthaya.
According to the Industry Minister, the panel previously approved six
flood-affected investment projects with a total investment value of
Bt4.4 billion, five at the same sites due to their confidence in the
government's water management plan.
Meanwhile, BOI Secretary-General Atchaka Sriboonrueng said the ministry
and her agency had previously approved measures to help entrepreneurs
affected by flood, including tax exemption for machinery imported to
replace flood-ruined equipment.
She said another 42 investment projects damaged by last year's flood
await approval and 19 new projects in flooded areas also awaiting BOI's
green light.
Mrs Atchaka noted the recovery of the industrial sector is obvious. Over
400 projects were approved for importing replacement machinery after the
flood, valued at Bt97 billion, while almost 80 projects with a total
investment value of Bt41 billion, have applied for investment promotions
under flood-assistance measures, and measures to aid infrastructure
construction projects in industrial estates. (MCOT online news)
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Auto parts import tax under JTEPA to be slashed to 0%
BANGKOK, 24 June 2012 (NNT) – Thailand will decrease
the import duty for more than 140 more items of Japanese auto parts to
0% with retroactive effect from 1 April 2012. The tariff cut is expected
to help speed up the recovery of the Thai automotive industry hard hit
by the floods crisis last year.
Director-General of the Department of Trade
Negotiations Srirat Ratthapana said the Ministry of Finance had issued
an announcement on the tax reduction for auto parts from Japan under the
Japan-Thailand Economic Partnership Agreement (JTEPA). The auto parts’
import duty of 10-20% will be reduced to 0%.
The director-general said Thailand hoped that the tax cut would help
save the cost of production for Thai entrepreneurs and contribute to the
country’s goal to be a hub of automobile production in ASEAN. The duty
reduction would also help boost export volume of the flood-affected
industries.
Thailand’s imports of auto parts over the past three years came mostly
from Japan, with the average import value of more than three billion USD
a year. Japan’s long investment in Thai automotive and auto parts
industries has made Thailand one of the most important automobile
production bases in Southeast Asia.
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Transport Ministry to further upgrade railway networks at Laem Chabang
BANGKOK, 24 June 2012 (NNT) - The Transport Ministry
is set to expand the railway system to the Laem Chabang Port in the East
in order to make the country ready for a higher level of competition on
the international stage.
Transport Minister Charupong Ruangsuwan said that the railway network
upgrade at the Laem Chabang Port has been making a significant progress.
Under the project, 6 double-track railways will be built to connect the
Klongtoei Port with the Laem Chabang Port and Chachoengsao Province.
Mr.Charupong stated that the expansion will help improve the efficiency
of Thailand's cargo transport capability, as it will be able to
accommodate up to 12 trains, which means a total of 12 million cars per
year. The current system handles around 5.8 million cars per year.
The Transport Minister added that the Ministry is now working on the
expansion of roads between the Laem Chabang Port and the main highways,
and planning the construction of the extended part of the Burapha Withi
elevated road to link the existing system with Laem Chabang and Map Ta
Phut.
He said that all of the construction works will save Thailand's
transportation cost by 2 percent after the expected completion in 2013.
Meanwhile, Deputy Transport Minister Chatchart Sithipan said that the
development of the Dawei deep-sea port and industrial estate projects on
the western border will not pose any impact on the operations of the
Laem Chabang eastern deep-sea port.
Mr. Chatchart stated that goods leaving the Dawei projects are mainly
from such heavy industries as metal and coal, while the Laem Chabang
Port is known as the hub of automotive shipment. Therefore, he believes
that both ports will not be directly competing.
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Thai government to push for realization of G2G rice purchase deals by July
BANGKOK, 23 June 2012 (NNT) – The government is
determined to conclude a number of government-to-government rice
purchase deals while expressing confidence to boost Thai rice prices in
the world market.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on
Friday that his discussion with the Commerce Ministry and other state
agencies involved in the release of the government’s rice stockpile
under the 2011/2012 rice pledging program has raised the issue of
government-to-government or G2G rice sales in July.
Mr. Kittiratt said that the discussed timing is deemed suitable as it is
the time when most of the world’s leading rice exporters, such as India,
Myanmar, Cambodia and Vietnam, will have shipped out their stock.
As a result, from July to December, Thai rice will see minimal
competition and a high chance to boost the prices, said the Deputy PM.
Mr. Kittiratt stated that all agencies are yet to draw a conclusion on
the amount of rice to be included in the upcoming G2G deals as the
working committee led by the Commerce Minister is in the middle of a
series of overseas trips to discuss the purchases with various markets.
The Deputy Prime Minister added that Thailand will likely be able to
sell up to 1 million tons of rice to the Indonesian government soon,
while progress of other negotiations will be constantly reported to the
government until all talks are completed.
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Commerce Ministry to expand Thai Select initiative to overseas restaurants
BANGKOK, 23 June 2012 (NNT) – The Commerce Ministry
is set to further endorse the quality of Thai food business, in hopes of
turning it into a prime money-spinner for the country.
Commerce Minister Boonsong Teriyapirom said on Friday that Thai exports
have experienced a slow business during the past 3-4 months as some
major industries are yet to fully recover from last year’s severe
flooding.
Considering that, the Commerce Ministry has decided to give a boost to
the Thai food industry, in a bid to expand its presence both in key and
new markets.
Mr. Boonsong stated that Thai cuisine has been broadly accepted by
global consumers and is the number-two money-making industry for the
country.
The Commerce Minister expects the food industry to continue expanding
and hopes to boost its export value to no less than 20 billion dollars
this year, before striving to register a growth rate of 15 percent in
2013.
He went on to say that the Ministry has already requested a
300-million-baht budget from fiscal 2013 to further promote the “Thai
Kitchen of the World” project and to expand the “Thai Select” project
both in and out of the country.
Under the “Thai Select” Project, Thai restaurants that have met the
Ministry’s standards will be endorsed by a certificate to ensure diners
quality food and service.
Mr. Boonsong said that the Ministry is poised to expand its endorsement
to Thai restaurants outside the country, by as many as 1,000.
Meanwhile, the Commerce Ministry, on June 29th, is set to attend a
workshop with the Prime Minister and related agencies as well as
representatives from the private sector to discuss ways to boost Thai
exports to grow no less than 15 percent, as planned.
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Thai meeting and conventions industry growing despite world economic crisis
BANGKOK, June 21 – Thailand’s MICE industry-- which
includes meetings, incentives, conferences, and exhibitions, continues
to grow, in contrast to the economic crises in Europe and the United
States, said Thongchai Sridama, acting president of the Thailand
Convention & Exhibition Bureau (TCEB).
Asia is a major target for MICE travellers, Mr
Thongchai noted.
Travellers from Asia play an important role for Thailand’s MICE
industry, counting for almost 400,000 visitors, or nearly half the total
passenger numbers from Asia entering the country, and creating economic
value for the Thai economy as much as about Bt28.5 billion.
Travellers from India, China, Singapore, Japan, and Malaysia rank as the
top-five nationalities in the Thai MICE industry, and they spend well—an
average of Bt93,600/per person.
During the opening ceremony of 'Thailand MICE International Forum 2012'
(TMIF 2012), held from June 19-22, Tourism and Sports Minister Chumpol
Silpa-archa said on Thursday the government had to go forward to boost
tourism in order to attract 2 million travellers as targetted.
The number of tourists increased in the first five months of this year,
or a 7-per cent rise year-on-year, despite the current eurozone debt
crisis.
Thai tourism will not be much affected if there is no strong political
conflicts in the country, he noted.
The number of tourists from 15 main countries has increased over 10 per
cent, while there has been a rise of 26 per cent in the number of
Chinese travellers in particular.
TMIF 2012 was held in conjunction with the 7th AFECA AGM and IAEE AEC
Meeting, attracting about 300 MICE professionals from Thailand and
overseas to discuss and share ideas and development of the industry at
regional and international levels. (MCOT online news)
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Cabinet approves Bt4 billion budget to resolve Map Ta Phut problems
BANGKOK, June 19 – The Cabinet on Tuesday approved a
budget of Bt4.3 billion to implement a five-year plan to resolve the
ongoing environmental problems associated with the country’s largest
industrial estate, Map Ta Phut, in the eastern seaboard, Deputy
Government Spokesman Chalitrat Chandrubeksa said today.
An allocation of Bt4.34 billion will be spent on 92
projects to address the problems related to the industrial zone as
proposed by the National Economic and Social Development Board (NESDB).
The 2012-2016 plan covers problems concerning pollution, environment,
economy, basic infrastructure and management.
Most of the budget, some Bt1.7 billion, will be allocated to address
pollution problems in 41 projects and another Bt1.5 billion will be
dedicated for 14 projects to upgrade basic infrastructure.
Provinces with the greatest density of factories, especially Rayong and
Ayutthaya, were advised to plans development of green areas and to
upgrade industries to an environmentally-friendly status, Mr Chalitrat
said.
The interior ministry was assigned to prepare the town plan layouts and
zone the Map Ta Phut areas to separate ‘green’, residential and
industrial areas, he said. (MCOT online news)
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Thai industrial confidence rises six consecutive months
BANGKOK, June 20 - The Thai Industries Sentiment
Index (TISI) in May rose for the sixth consecutive month to 106 from 104
in April, indicating that the industrial recovery from last year’s mega
flood, according to the Federation of Thai Industries (FTI).
FTI Chairman Payungsak Chartsuthipol on Wednesday
announced that the rising figure in May reflected the surveyed
industrial entrepreneurs’ expression of confidence in the expanding
overall economy in accordance with improved domestic consumption and
industrial operations which returned to normal after last year’s
devastating flood.
But entrepreneurs remain worried over higher production costs, labour
shortages and the country’s political situation, Mr Payungsak cautioned.
The industrial operators were also concerned, he said, at the impacts of
the ongoing eurozone debt crisis which affected the exports of
industrial products as foreign purchase orders and total sales edged
down compared to April.
Meanwhile, the index in the next three months was projected to drop to
111.1 from 112.6 forecast in April owing to lower domestic and foreign
total sales.
Most industrial operators advised that the government should suspend the
Bt300 (US$10) national daily minimum wage implementation policy in 70
remaining provinces, introduce measures to assist entrepreneurs of
small- and medium-sized enterprises (SMEs), promote domestic consumption
to offset falling exports and strengthen the country’s political
stability.
Thailand’s automobile production in May significantly increased to
202,834 units, marking the highest level in 50 years and the first month
that auto production reached 200,000 units.
FTI Automotive Industry Club spokesman Surapong Paisitpattanapong
explained that the sharp increase, up from 105.29 per cent from the
previous month, was because Thailand-based automakers resumed operations
normally.
Total domestic automobile sales in May grew to 115,943 units, marking
the highest level, while automobile exports climbed to more than 85,000
units.
As a result, Thailand is likely to be ranked sixth or seventh world’s
largest automobile exporter with Mexico and Czech Republic being the
major competitors, the Automotive Industry Club spokesman projected.
(MCOT online news)
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Bank of Thailand to ease interest policy if euro zone debt crisis worsens
BANGKOK, June 20 – The Bank of Thailand (BoT) will
relax its interest rate policy if the euro zone debt crisis
deteriorates, disrupting the euro zone and slowing down the global
economy, Bank of Thailand Governor Prasarn Trairatvorakul said on
Wednesday.
The current policy interest rate at three per cent is
suitable for the Thai economy, he said. So far, there has been no need
to do so. Neither should criteria on loan classifications be reviewed
when no signs indicate the debt crisis will worsen.
The BoT relaxed its criteria for classifying bad debts after the 2011
megaflood, the governor said.
Mr Prasarn said that liquidity in the monetary system remains normal.
Foreign capital inflows since the beginning of this year have been net
inflows, though not in large amounts. The bond market also has a net
inflow while the stock market has experienced some outflow in tandem
with falling stock prices.
The central bank governor said in his statement that the bank has
measures and instruments to cope with foreign capital flows. If there is
a signal of capital flowing out of the country, the bank is ready to
tighten measures to control it.
The BoT governor foresees the Thai economy growing at six per cent as
inflationary risks have declined thanks to falling oil prices and the
world economic slowdown. (MCOT online news)
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Thai industrial confidence improved slightly in May
BANGKOK, 21 June 2012 (NNT) - Thai industrial
sentiment has improved slightly last month as entrepreneurs remained
confident in the outlook of the local economy.
Federation of Thai Industries (FTI) Chairman Payungsak Chartsutipol said
on Wednesday that the May industrial confidence index was at 106.0, up
from 104.0 recorded in April.
Mr. Payungsak stated that May was the 6th consecutive month for the
index to rise and the 4th consecutive month for the index to stay above
the 100-point mark.
He said that such a strong sentiment means Thai business operators have
been more confident in the growth prospect of the economy.
Meanwhile, the industrial sentiment index for the next 3 months was at
111.1, which dropped from 112.6 in April. Mr. Payungsak said that the
slight fall was due to a decline in purchase orders, induced by the
impact of the Euro-zone debt crisis, and worries from local political
conflict as well as the global economic uncertainties.
The FTI Chairman said the surveyed entrepreneurs would like the
government to delay the nationwide implementation of the 300-baht
minimum wage policy and timely come up with more measures to assist SME
operators while further boosting domestic consumption and achieving
political stability.
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Labor Ministry unveiled measures to cope with Euro-zone debt crisis fallout
BANGKOK, 21 June 2012 (NNT) - The Labor Ministry is
planning a set of measures to cope with any fallout from the Euro-zone
debt crisis.
Permanent Secretary of Ministry of Labor Somkiat Chayasriwong said that
the Ministry has proposed 3 measures to deal with the impact of the
problems in Europe to the meeting with executives from 9 related
ministries, chaired by PM Yingluck Shinawatra.
The first measure involves the preparation for 10 key industries, such
as plastics, jewelry and furniture, which have suffered shrinking sales
and are likely to downsize because of the shaky situation.
The second measure focuses on the provision of benefits for affected
workers and new employment opportunities for more than 1,800 Thai
laborers now working in Europe.
And the last measure is the search for new employers for Thai workers,
who wished to get employed in Europe but whose plans have been put on
hold because of the Euro-zone crisis.
Mr. Somkiat, however, assured that the country's employment situation
remains in good shape as it has just expanded by 0.2 percent.
According to the Commerce Permanent Secretary, another meeting is
planned for next week, during which detailed updates on textile,
electrical appliance, computer and automotive sectors, which are under
the Ministry's watch list, will be discussed, in order to come up with
necessary measures under current circumstances.
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Commerce Ministry to hold meeting with PM and exporters on June 29
BANGKOK, 21 June 2012 (NNT) - The Commerce Ministry
is scheduled to meet with the Prime Minister and representatives from
the export sector at the end of the month to discuss new assistance
measures.
Permanent Secretary of Commerce Yanyong Phuangrach said that a new set
of measures to help 10 key industries involved in the export sector will
likely be formulated during a special workshop on June 29th.
The planned workshop will also be attended by Prime Minister Yingluck
Shinawatra and related business operators.
Mr. Yanyong stated that the upcoming talks will first adjust existing
measures in order to help exporters expand and identify new markets
while the debt crisis in EU continues unresolved.
He added that, in spite of the crisis, some European markets, such as
Germany, France and Belgium, still have growth potential while it is
imperative to penetrate new markets, including ASEAN, India, China,
Russia and the Middle East.
The Permanent Secretary of Commerce stated that the workshop will also
discuss ways to further boost the recovery of those sectors, which were
hit hard by last year's flood crisis.
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UTCC predicts 4 sectors to be hit hard by Euro-zone debt crisis
BANGKOK, 19 June 2012 (NNT) - Academics have warned
Thai exporters to beware of a serious fallout from the crisis in Europe,
which may cost the country's major money-maker hundreds of billions of
baht.
The University of the Thai Chamber of Commerce (UTCC)'s International
Trade Studies Center director Aat Pisanwanich said that the economic
crisis in Portugal, Iceland, Italy, Greece and Spain is still to be
closely monitored.
He said that if the situation worsens, Thai exports may lose as much as
150 billion baht, or 17 percent of this country's total goods and
services shipped to these countries.
Under such circumstances, Mr. Aat stated that Thai export growth may end
up at 7-8 percent in 2012, with rubber, electrical appliance, jewelry,
garment and travel sectors to be significantly hit.
He also predicted that the problems in Europe will likely take 3-5 years
to resolve, while the situation there, if prolonged and spread to
Thailand, will hurt the nation's GDP by 0.5 percent.
In spite of that, the UTCC director stated that Thai economy will still
be able to register the growth rate of 5 percent, partly due to
increased state spending and investment in basic infrastructure
projects.
On a more positive note, Mr. Aat expects the export industry to grow 12
percent this year, if problems in Europe becomes under control.
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Thai Cabinet introduces 10 emergency moves to handle Euro-zone debt crisis fallout
BANGKOK, 20 June 2012 (NNT) – The Cabinet has mulled a set of emergency
moves to help the country battle any fallout from the Euro-zone debt
crisis.
Deputy government spokesperson Anusorn Iamsa-ad said on Tuesday that the
weekly Cabinet meeting raised the issues of the debt crisis within the
Euro zone and decided to formulate 10 moves to cope with the impact on
the Thai financial sector.
The Cabinet agreed to urge all related agencies to keep a close watch on
the situation in Greece, where it believes the problems there may get
out of control and soon hit the global economy.
It also called for an appropriate monetary policy to prevent any capital
outflow, while all financial institutions should prepare contingency
programs to handle any effect of the crisis to safeguard the baht and
the local economy.
Mr. Anusorn added that the Cabinet also instructed the Finance Ministry
to be proactive about any impact of the crisis on the Stock Exchange of
Thailand while ordering the Commerce Ministry to prepare an analysis on
Thai exports to all European markets in order to prepare any assistance
Thai entrepreneurs, especially SME operators, may need.
In addition, the Commerce Ministry and the Foreign Ministry as well as
other related offices are told to keep a close contact with all European
governments and concerned agencies so that Thailand will be timely alert
in case any trade barrier is devised against the country during the time
of the crisis.
Moreover, the Cabinet has instructed the Labor Ministry to prepare
assistance to workers, who may have been let go of by plants, which are
affected by the situation in Europe.
The deputy government spokesperson said that all 9 economic-related
ministries, including Commerce, Finance, Agriculture, Transport,
Tourism, Energy, Foreign, Labor and Industry, are to hold a weekly
meeting, to be chaired by Deputy PM Kittiratt Na-Ranong, to discuss the
issues, while the Finance Ministry, the Bank of Thailand and the
National Economic and Social Development Board will have to set up a
joint working committee to regularly update the Prime Minister on the
situation.
Lastly, the weekly meeting has urged all parties to turn the crisis into
an opportunity by speeding up all projects that will help attract
foreign funds into the country, while the world is looking for places
other than Europe to invest in.
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BoT helps develop Burmese central bank
BANGKOK, 19 June 2012 (NNT) – The Bank of Thailand (BoT) and the Central
Bank of Myanmar (CBM) have signed an MoU on the BoT’s technical
assistance for the CBM with hopes to benefit Myanmar’s banking sector
and the ASEAN Economic Community.
The MoU was signed on Tuesday by BoT Governor Prasarn Trairatvorakul and
his Burmese counterpart Than Nyein. The MoU was aimed at providing
knowledge and developing skills in terms of banking for the CBM’s
employees. Mr. Prasarn said the Thai central bank would help develop the
CBM with cooperation from other organizations from Thailand and other
countries. The assistance for the CBM will come in many forms, such as
consultancy, experience sharing, professional field trips and
scholarships.
Mr. Prasarn said if Myanmar’s monetary system was efficient, it would be
good for the Thai-Burmese trade as Thailand was Myanmar’s largest trade
partner.
Academics called for no extension of state-initiated consumer goods price control
BANGKOK, 20 June 2012 (NNT) – Academics are urging
the government not to extend the policy to cap consumer goods prices and
let everything move in accordance with market mechanism.
The University of Thai Chamber of Commerce (UTCC)’s Economic and
Business Forecasting Center director Thanavath Phonvichai said on
Tuesday that the government should not continue the cap of consumer
goods prices, after it expires in September.
Mr. Thanavath stated that local prices have been stable for some time,
while some have begun dropping, due to the state-initiated price cap
policy and falling fuel prices.
While suggesting that such circumstances reflected the government’s
success in reining in the problem of rising cost of living, he said that
it should not consider renewing the policy and allow entrepreneurs to
adjust their prices in accordance with their real costs.
In addition, Mr. Thanavath said that the UTCC is now predicting an
average inflation of 2.4-2.5 percent from now until September, while
pegging this year’s consumer price index at between 3.2 and 3.8 percent,
which is in line with the Commerce Ministry’s expected range.
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KRC warns Thailand to watch out for impacts from Greek crisis
BANGKOK, 20 June 2012 (NNT) – A leading research agency is warning
Thailand to watch out for possible impacts from the crisis in Greece.
Kasikorn Research Center (KRC) Managing Director Charl Kengchon said on
Tuesday that even though the latest elections in Greece turned out well
and could keep the country in the Euro zone while playing down worries
in the global financial market, the future is not quite certain yet.
Mr. Charl said that what Greece has introduced have been only the
short-term ones that cannot solve every problem once and for all.
With many more years for Greece to sort its problems out, Thai
entrepreneurs, who are to reply on the European market, are now urged to
speedily broaden other markets to make up for the possible shrinkage in
Europe’s imports.
He stated that the problems in Europe have shrunken the value of Thai
goods and services shipped there by 15 percent during the first 4 months
of this year.
The KRC Managing Director believes that unless crisis in Europe resolves
soon, Thai exports to this market will likely register a minus-5 percent
growth.
However, when compared with other Southeast Asian nations, KRC said that
Thailand is at moderate risk when it comes to the fallout from Europe.
Mr. Charl went on to say that the Bank of Thailand should continue to
keep its policy interest rate at 3 percent due to the Euro-zone debt
crisis and the global economic uncertainty as well as the post-flood
recovery in Thailand during the 2nd and the 3rd quarters of this year.
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Five-month gem export sees significant drop due to EU crisis
BANGKOK, 20 June 2012 (NNT) – The gems and jewelry industry is facing a
significant drop in its export figures as a result of the European Union
debt.
The President of the Gems and Jewelry Industry Club under the Federation
of Thai Industries (FTI), Mr. Veerasak Lervisit, has revealed that the
Thai gems and jewelry sector is being hurt by the ongoing financial
crisis in the EU. The export of the sector’s four main product groups,
including diamond, gemstone, silver and gold jewelry, has been impacted
since the end of 2011, given the economic slowdown in USA and EU.
Mr. Veerasak has expressed concern over the situation in the EU, which
has caused last year’s overall revenues from Thai gem export to drop
down to 200 billion baht.
During the first five months of 2012, gem export figure has been
experiencing a gradual decline of 20% in comparison with that of the
previous year. The Gems and Jewelry Industry Club has implored that the
Commerce Ministry come up with assistance measures for gem exporters by
finding new markets, such as South America, Africa, China and Russia, to
make up for the drop in export to the USA and EU.
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UTCC: Exports to Myanmar to see two-fold increase after AEC formation
BANGKOK, 20 June 2012 (NNT) – The University of the
Thai Chamber of Commerce has predicted that Thailand’s export to Myanmar
will grow two-fold annually after the establishment of the ASEAN
Economic Community (AEC) in three years' time.
The UTCC's International Trade Studies Centre has carried out an
analysis on Thailand’s export opportunity to Myanmar after the AEC
officially forms in 2015. The center’s Director, Mr. Aat Pisanwanich,
quoted the result as showing that Thai exports to the neighbouring
country will expand by 27% in volume while their value will double to 14
billion US dollars annually compared to 7 billion dollars prior to the
AEC.
According to Mr. Aat, the export of industrial products is expected to
see a bright future in the AEC, growing 74.3% with a value of 10 billion
baht per annum. Top Thai industrial exports to Myanmar are currently
machinery, fuel, automobile, plastic, electrical appliances, rubber and
rubber-based products, organic chemicals, steel and pharmaceutical
products. However, after the AEC, products such as cotton, aluminum,
ceramics, cement, furniture, copper and leather, will also see an
increase while the export of shoes, soap, garment and books will
experience a decline.
Meanwhile, Thai agricultural products will stand a smaller chance at
growing in comparison with industrial products, given Myanmar's
increased agricultural production after the recent opening of the
country. With an abundance of agricultural terrain available, Myanmar
will rely less on imports from Thailand. Thus, Thai agricultural exports
to Myanmar will drop to 25.7% from the current 27.3%.
Meanwhile, the UTCC has recently launched the AEC Strategy Center to
provide entrepreneurs with in-depth information on business, trade and
investment in ASEAN in a bid to enhance the competitiveness of Thai
entrepreneurs for the AEC.
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BOT: No need to lower key interest rate; contingency plans ready to cope with capital outflows
BANGKOK, 20 June 2012 (NNT) – The Governor of the
Bank of Thailand has stated that it is not yet necessary to lower key
interest rate, but financial tools have been prepared to cope with
possible capital outflows.
Governor of the Bank of Thailand Prasarn Trairatvorakul has confirmed
that there is no need for Thailand to bring down the policy rate for the
moment because there has not been any signal indicating severe risk
following the recession of world economy. He says the policy rate at 3
percent is appropriate for the current economic condition. But if the
economic problems in Europe develop to the point that brings the world
economy to stagnation, Thailand will have to adjust its policy rate
immediately while leniency will be given to non-performing loans.
Mr. Prasarn has also mentioned about plans to cope with capital outflows
and cash withdrawals, saying that the Bank of Thailand already has tools
to deal with the situation, by, for example, putting more money on
overseas investment and restricting the buying of US dollars to only 300
million US dollars for the investors who do not live in Thailand and
have no business plan to use that money, or letting exporters hold US
dollars for up to 1 year without converting into Thai baht.
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