Thai gold traders subject to added controls

The Thai government will impose stricter control on domestic gold transactions after discovering unscrupulous trading by some gold traders, Deputy Commerce Minister Yanyong Puangrach said at the end of last week.
He discussed the new measure with representatives of the Bank of Thailand (BoT) and the Gold Traders Association.
Some traders were found to trade gold at a daily value of Bt100 million when their registered capital was only Bt1 million, he said, adding that the tougher controls were for consumer safety and would not affect the country’s overall economy.
The Commerce Ministry earlier instructed gold traders nationwide to register with the Internal Trade Department to enable the authorities to closely monitor their trading activity, especially online speculative trading and gold purchases by letters of credit.
Thailand’s total gold trading is over Bt1 trillion each year - much higher than the import value at only Bt30 billion, said Yanyong.
He said the Business Development Department reported that 1,866 traders were granted business registrations and the registered capital of some traders was only Bt1 million while their trading value amounted to Bt100 million per day.
Some foreigners also unscrupulously bought gold through Thai nominees, he said.
He added that registered traders would be required to report their daily gold holdings to prevent possible fraud between traders and buyers.
Trade in gold bullion and ornaments continues to rise and the risk of price volatility was high given the dependence of domestic trading on foreign markets, Yanyong explained. (MCOT)

PTT renews Cambodian airports fuel concession

Thailand’s PTT Plc has received a concession extension from the Cambodian government to sell aviation fuel in the country.
Attapol Rerkpiboon, PTT vice president, said the company will continue selling fuel at Phnom Penh and Siem Reap airports for another five years until 2017.
The company is planning to open its first one-stop-service gas station next month in Phnom Penh with an investment budget, exclusive of land, at Bt30 million. The station will be like PTT gas stations in Thailand where a convenience store, a coffee shop, a food court, or even restaurants are also located in the same premises.
Attapol said the plan is in accord with the company’s business expansion to make the PTT brand to become the top brand in the region and to welcome the ASEAN Economic Community (AEC) in 2015.
There are currently 15 PTT gas stations in Cambodia. Fifty stations are expected to open for the retail oil trade by 2017, from an original plan of 45 stations.
Attapol said the fuel sales volume in Cambodia is increasing, for the market is growing, thanks to the country’s infrastructure investment and setups of power plants and factories.
PTT’s oil sales volume there in all sectors - aviation, industries, retail - has grown 10 percent, or a total sales volume at over 200 million liters/year. (MCOT)

Thai exports grow 1 percent for 2013

Thailand’s exports will end with grim results this year with only 1 percent growth, the Thai National Shippers’ Council (TNSC) announced last week.
TNSC president Nopporn Thepsitha said the unclear US fiscal policies on economic stimulus and debt ceiling and currency volatility which led to diminishing orders for Thai products played vital roles in the disappointing exports.
Thailand’s export value in the last three months of this year will amount to US$20 billion - lower than the latest estimate in August for a 2.5 percent growth, he said.
He added that export value in the first nine months this year was US$172.1 billion, representing a growth at only 0.05 percent, and the export ratio to the US, Europe and Japan has continued to decline.
Compared to other Southeast Asian countries in the first three quarters, Thai export growth was better than Malaysia, Indonesia and Singapore, all of which suffered deficits of 5.36 percent, 4.96 percent and 1.35 percent respectively.
Nopporn was optimistic that Thailand’s exports would expand 5-7 percent next year thanks to strengthened economies among significant trading partners including the US, Europe and Japan.
He expressed concern that the current political tension would affect Thailand’s export capability since the government has concentrated more in trying to solve political problems rather than the country’s long-term economic policy.
Wallop Vittanakarn, TNSC vice president, said internal political conflicts would not have an impact on this year’s exports but they could jeopardize next year’s performance as political rallies naturally affect investment and logistic costs.
Protesters should not block roads, but the government must take immediate action, he said.
He said obsolete regulations which obstructed international trade and transportation should be revised quickly for strengthened and sustainable export growth.
In the long run, the public sector must adjust the export structure to cope with global market volatility and the government should set an export strategy to enable public and private sectors to work closely together and encourage exporters to invest overseas, he said.
Thailand’s agricultural and industrial agricultural standards should be improved together with the logistic system, he concluded. (MCOT)

Gov’t mulls extending soft loans for Deep South entrepreneurs

The Thai government is considering using a soft loan program to revive the economy in the Deep South, which has been marred by the decade-long violence.
On Thursday, Oct. 31, the Southern Border Provinces Administrative Center (SBPAC) invited representatives from local banks and entrepreneurs in the southern border province of Yala to brainstorm on monetary measures to help inject low-cost funds to local businesses.
According to Pol. Maj. Tavee Sodsong, SBPAC Secretary General, the current soft loan program has many restrictions; therefore fewer entrepreneurs have been able to obtain the funds.
The result of Thursday’s meeting will be submitted to the Ministry of Finance to consider how to adjust the loan conditions to better reach out to those local investors. (NNT)

Gov’t sees growth potential in Thai food industry

The Commerce Ministry has assured that the government has a policy to boost the Thai food industry as it sees growth potential in the sector.
In a speech delivered at a food fair held at the Impact Arena, Deputy Commerce Minister Yanyong Phuangrach said the government is keen on pushing the Thai food industry forward, as it is the main industry that drives the country’s economic growth. According to him, the value of Thailand’s food trade each year is estimated at around 2 trillion baht, 1 trillion of which comes from exports and the other trillion from domestic consumption. The government is also keen on making Thailand the world’s kitchen, he added.
The deputy minister also expected prices of food products to increase next year due to the decrease in raw materials and food supply caused by natural disasters. However, Yanyong said the government would not let the increasing food prices affect the country’s consumption. (NNT)

Unemployment decreases in August

Thailand’s unemployment in August fell by 38,000 persons from July, when there were 355,000 without jobs, but increased by 97,000 to 317,000 from 220,000 without work year-on-year, according to government spokesman Teerat Ratanasevi.
He said the Cabinet acknowledged the report of the National Statistics Office.
Currently, there are a total of 39.3 million persons in the workforce, of whom 38.9 million are employed, 0.32 million unemployed, and 0.04 million waiting for the next employment season. The unemployment rate is 0.8 percent of the total workforce.
However, compared to the same period last year, the size of the Thai workforce decreased from 39.8 million in 2012. (MCOT)

Thai Lion Air to launch maiden flight next month

Thai Lion Air, a new no-frills airline, will launch its first commercial flight this December.
Thai Lion Air (TLA) Chief Executive Captain Darsito Hendro Seputro told the media on Friday, Nov. 1, that the airline will inaugurate its first Bangkok-Jakarta flight in early December; follow by Bangkok-Kuala Lumpur as well as Bangkok-Chiang Mai flights. All flights will be based at Don Mueang Airport in the Thai capital.
TLA’s Boeing 737-900ER will initially serve the Bangkok-Jakarta route, operating twice daily, followed by Bangkok-Kuala Lumpur route, operating daily and the Bangkok-Chiang Mai route, operating three times a day.
The company plans to boost its fleet from two to 50 to cater for increased route expansion to China, India and Thailand’s major tourist cities within five years.
The airline CEO said Thai Lion Air is following the low-cost model and it will offer the lowest fare all year round. He said he was confident that the airline will be able to compete with other budget airlines holding a large market share in Thailand. (MCOT)