Policy interest rate cut unrelated to interest movement: BoT

The decision by the central bank’s Monetary Policy Committee (MPC) to slash the policy interest rate from 3 percent to 2.75 percent is no precedent for a declining interest rate, according to Bank of Thailand (BoT) governor Prasarn Trairatvorakul.
The MPC voted 5 to 2 on Wednesday to cut the policy interest rate by 0.25 percent - an action which Prasarn said was to prevent negative economic impact on Thailand given the global economic slowdown.
He likened the measure to buying life insurance and indicated that the International Monetary Fund (IMF) has warned new countries including Thailand to be cautious and wisely maintain their economic and monetary stability.
“The global economic landscape remains unclear,” the BoT governor said. “It may be better or worse. It should be clearer early next year.”
He said Thailand’s GDP will expand at 5.7 percent as projected.
Commercial banks will have to thoroughly study relevant information before deciding if they will reduce their own interest rates, Prasarn said. (MCOT)
 

Domestic auto sales hit record high in September

Domestic auto sales in September hit a record high, totaling 132,680 units, an increase of 52 percent year-on-year, according to the Federation of Thai Industries (FTI).
Surapong Paisitpatanapong, spokesman for the FTI’s Automotive Industry Club, said car production rose for domestic sales to order under the government’s first-time car buyer program.
Auto production in September amounted to 228,500 units, a 31 percent increase year-on-year, hitting a record high since 1961.
Auto production from January to September this year reached 1.7 million units, 32 percent higher than the same period last year.
Auto production for export in September 2012 reached 40 percent of overall production, an increase of 2.8 percent year-on-year, while auto production for domestic sales in September amounted to 135,675 units.
Meanwhille, Payungsak Chartsutipol, chairman of the Federation of Thai Industries (FTI) reported the Tha i Industries Sentiment Index (TISI) in September 2012 dropped to 94.1, from 98.5 in August. It is the fourth consecutive monthly drop and the index is below 100 for the third consecutive month, indicating poor confidence on the part of entrepreneurs.
Major factors, having an impact on business people’s confidence in September are concerns over the world economy, export slowdown, increasing production cost due to higher raw materials and labor costs.
According to the survey, entrepreneurs are concerned most over impacts from the global economy, followed by oil prices, currency exchange rate, local politics and loan interest rates, respectively. (MCOT)

Volume of Thailand rice exports decreases 44% in first nine months this year

Thai rice export figures decreased 44 percent in quantity and 32 percent in value from January to September 2012.
The export volume was recorded at 5 million tons with a value of Bt106 billion.
The Thai Rice Exporters Association reported the figures for Jan-Sep and compared them to the same period last year which saw the export quantity of 9 million tons with a value of Bt156 billion.
Such reduction came despite the price of exported rice at US$678/ton on average, 18 percent higher year-on-year.
During Jan-Sep, the top five importers of Thai rice were Nigeria at 904,000 tons, Iraq at 545,000 tons, Indonesia at 310,000 tons, Ivory Coast at 299,000 tons, and South Africa at 276,000 tons respectively.
In September alone, Thailand exported 540,000 tons of rice at Bt12 billion in value, while in August the figure was lower at 508,000 tons and Bt11 billion respectively.
According to the Thai Rice Exporters Association, Thailand is in an unfavorable position while in the normal rice market, compared to competitors from India, Pakistan and Vietnam, Thai rice prices are higher than its competitors by around US$120-140/ton.
Regarding the October tendency, the association forecast rice export would reach 600,000 tons. Thai rice exporters are to sell white rice to Iraq and Japan, according to previous bidding contracts.
Parboiled rice tends to be more popular among some buyers, particularly in Nigeria.
However, Thai rice exporters are still to face fierce competition from Vietnam and India in the last quarter. (MCOT)

NBTC receives first 3G payments from two operators

Two of the three winning operators for the third-generation mobile spectrum handed over cheques, each worth more than Bt 7 billion, to the National Broadcasting and Telecommunications Commission (NBTC) this week.
The initial payments were for licenses to operate 3G frequencies awarded to them in an auction on Tuesday, Oct 16.
Advanced Wireless Network, a subsidiary of Advanced Info Service, was the first operator to make the payment with a Bt 7.824 billion cheque, followed by Real Future, a subsidiary of True Corp, which produced a Bt 7.222 billion cheque.
Dtac Network, a subsidiary of Total Access Communication, has yet to pay the first installment.
Letters of certification were given by the NBTC to all three operators.
Thakorn Tantasit, NBTC secretary general, brushed aside an allegation of collusion with the private sector in the auction, explaining that it was done in accord with Section 45 of the Frequency Allocation Act since the NBTC is an independent, not government, agency.
The Finance Ministry and Electronic Government Procurement commission earlier submitted a letter to the NBTC, warning that the Tuesday’s auction was a breach of the Price Collusion Act since there was no genuine price competition among bidders.
Thakorn said an auction under the Frequency Allocation Act is separate from e-auction as stipulated by the 2006 regulation of the Prime Minister’s Office on e-auction procurement.
He said the NBTC is fully authorized to conduct the auction and the expense-deducted revenue will be income for the state, reaffirming that the NBTC will issue licenses to the bid winners and the first batch of Bt 22.269 billion revenue will be sent to the state coffers.
He said the NBTC will protect consumers’ rights by demanding a reduction of 3G voice service to the maximum of 99 satang. (MCOT)