BOI Fair: Japanese bosses top Chuan’s meeting list

Chairmen and CEOs of Japanese companies and corporations have dominated the list of honorable guests and dignitaries to meet and discuss economic and investment issues with Thailand’s Prime Minister Chuan Leekpai in special sessions to be organized during next month’s investment fair by the country’s office of the Board of Investment called ‘Forum 2000’.

30 top leaders from Japanese firms will be part of a total of 62 corporate chiefs from all over the world scheduled to meet with PM Chuan during the fair on February 2-17. Nine business bosses from the US, 7 from Germany, 5 from Switzerland, 3 from South Korea, 2 from UK, 2 from France, and 1 each from India and Hong Kong are scheduled to meet with the Thai leader, said Sompong, a BOI economic advisor.

The Japanese bosses are mainly from car companies and electronic industries.

There will be more than 200 sessions off seminar on investment during the fair, including 23 in English. Accompanying Chuan will be four other key economic ministers, which include Dr Tarrin Nimmanahaeminda, minister of finance, and Supachai Panichpakdee, a deputy prime minister and minister of commerce.

BOT reluctant over DBS-SCIB deal

Plans to conclude a deal between the Bank of Thailand and the Development Bank of Singapore over the Siam City Bank sell off is now uncertain after the Singaporean group’s plan to lay off some four thousand employees of the Thai bank was leaked.

The state bank fears that the sell off would spark protests by thousands of SCIB employees, and society, which would bring another wave of political pressure to the government.

BOT sources said the reluctance over a DBS deal has generated hopes on the New Bridge side - a US-Singaporean investment group which is also competing for an SCIB deal. The sell off deal with foreign investors was scheduled in the first quarter this year.

The medium-sized SCIB currently has about 6,000 employees. An internal survey has found that SCIB employees are happier with the New Bridge plan, in which there is no layoff planned. New Bridge also reportedly offered to allow SCIB management to continue their work.

Tourism: More cooperation between local and international agencies

More investments between local tour operators and international travel agencies are expected this year after Carlson Wagonlit bought 49% of Amtra Air Services Co., a local travel company. International travel firms are keen to move into the Kingdom to tap into a boom in tourism and a recovering economy.

Sompat Pattaravesskul, managing director of Amtra, said the sell off was meant to increase the competence of the company in the world arena. Amtra and Wagonlit had been in close cooperation for quite some time before the buy-in took place, Sompat said. Siam Express, a major outbound tour operator said it recently signed a cooperation agreement with Business Travel International to increase international activities.

BTI is among large international tourism consultants with more than 60 offices overseas. Thomas Cook and Tourismo Thai, Rosenberg and Diethelm Travel, First Travel and KS&S Travel, have also joined the recent match-making game, to increase sales and operation. Cooperation with Thomas Cook will help Tourismo Thai expand into financial services.

Economic cabinet scraps new airport terminal plan

The economic cabinet on Monday put the breaks to the plan to construct the New Bangkok International Airport terminal and demanded that the NBIA authority look for a new design. The cabinet branded the terminal plan, designed by Murphy Jahn-TAMPS ACT, a European-US consortium, as too costly.

As the construction cost of the terminal skyrockets past the allocated budget of Baht 40 billion, to Baht 70 billion, the whole project expenditure would certainly exceed the budget fund of Baht 120 billion to Baht 140 billion approved by the government, said Pan Peungsujarij, a deputy government spokesman.

The Airport Authority of Thailand, which oversees the construction of NBIA, best-known as Nong Ngu Hao International Airport, said the adjustment would not affect the time schedule. The construction of the new airport would be completed as scheduled in 2004, in time for use during the year’s Olympiad, for which the Kingdom is among hopeful hosts.

Isuzu plans to bring out Chevy pickups

Tri Petch Isuzu, whose Isuzu pickup trucks have reigned in this local market for 17 years, plans to produce Chevrolet pickups here sometime this year. The new US-designed pickup would be produced under the Isuzu brand name to compete neck and neck with Toyota Tiger pickups, which have vowed to dethrone the champion.

The Chevy production line has been in line with the plan by General Motors (Thailand) to bring the US pickup to the Kingdom where more than 100,000 units of pickup trucks were sold last year. US General Motors Co. has bought 20% into Isuzu Motors of Japan.

According to an earlier report, GM (Thailand) also plans to produce the Zafira MPV model under the Chevrolet brand here this year.

Ford Sales, meanwhile, is set to introduce the all-new Ranger pickup to compete, after becoming the No 5 pickup in the market, from No 6 in 1998.

Computer producers and distributors start bringing down prices

Prices of personal PCs, accessories, and peripherals, have been brought down in the first two weeks of this month after the cabinet approved a zero-point tax on computer parts under the information technology agreement of the World Trade Organization.

Compaq Computer (Thailand), which is the leader in the brand name market, was to announce the new price this week.

Local brand PC producers, which do not benefit directly from the zero tax, were quick to take the lead in bringing down prices in order to maintain their 20% difference compared to prices of brand name PCs. The government plans to cut import duties on computer and IT parts in the next two years, a move which would directly bring down prices of local brand PCs.

Computer distributors said they have still been paying the 5% tax over the past two weeks. The payment, however, could be reclaimed later from the government.

Hewlett Packard (Thailand) predicted that PC prices might come down by only 3%, while IBM (Thailand) said the tax waiver would increase the competitive edge of brand name PCs in the market.

More auto sales being made in gray market

Independent car importers have gained a larger share in the booming car market, which last year sold about 210,000 units of cars - 10,000 units above target. Experts anticipate about 3,000 units will be sold in the gray market this year, as sales in the overall market are expected to reach 280,000 to 300,000 units. The SEC Group, the largest player in the gray market, said it was bullish in auto sales this year.

Banchong Khanawattanakul, chairman of KVA Auto Center Co., which is among new independent car importers this year, said now is the time to be an alternative to customers, as there have been very few players in the independent market. The KVA Group would focus on differences by bringing in a variety of cars to serve different interests, Banchong said.

The independent market sold 1,800 units of cars in 1999, with SEC Group the leader. More independent importers are expected to join the market this year after many faded away when the crisis brewed in 1997. SEC plans to spend Baht 50 million in setting up a new service center in Thonburi to make a total of 4 centers in Bangkok.

Copyright 1999 Pattaya Mail Publishing Co.Ltd.
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Updated by Chinnaporn Sangwanlek, assisted by Boonsiri Suansuk.