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   BUSINESS NEWS

HEADLINES [click on headline to view story]:
Business News Briefs

Dacon Computers - There is a difference

BOI says NO to request for electrical raw material import tax reduction

IMD rates Thailand 33rd

Talks held to settle dispute between KSC and Jasmine

“Plairthai” Thai web page translation program is launching version 3.0

Business News Briefs

from the BCCT Property & Infrastructure Report

Property

BTSC Makes Official Bid for Ex-Hopewell Project: According to Keeree Kanjanapas, BTSC chief executive officer, the Bangkok Mass Transit System (BTSC) has made an official bid through the Deputy Communications Minister to take over the Hopewell mass transit project. Further news reported that the cabinet also gave permission for BTSC to extend the skytrain system by a further 24km, across the Sathorn Bridge, to Samrong and along Nonsri canal at a cost of approximately Bt30 billion.

Major Shopping Malls Plan Big Upgrades: Two major shopping centres are reporting a windfall from the anticipated economic recovery, with a long waiting list of tenants showing strong interest in renting their retail space. Both the Emporium and Future Park Rangsit plan to spend more on space decoration and new layout design this year, as the competition between shopping centres intensifies. They will also invest more in marketing by staging several events over the next few months to attract shoppers.

Carrefour Plans Massive Expansion: Carrefour, the French hypermarket operator, has received Board of Investment (BOI) approval and is planning massive expansion. The firm plans to build two to three stores a year, mostly in Bangkok and the surrounding area. Investment per store is around Bt500 million. The parent firm in France will increase its holding in Thai operations and the company is trying to catch the wave of returning consumer confidence.

Lotus Kicks Off Major Expansion Drive: Lotus is planning to increase the number of its supermarkets by seven in 2000, to a total of 24 stores, while CP Group, the local partner of Lotus, will see its shareholding gradually reduced as Lotus increase its capital base for the expansion. The target is for 40 stores in the next three years. CP is planning to use the relationship with Lotus’ UK parent firm, Tesco, to increase exports to the UK to around 60 million pounds sterling (approximately 3.6 billion baht) over the next two to three years, from its current level of 10 million.

Fiat Reveals Plans to Produce Cars in Thailand: Fiat plans to make Alfa Romeo 156 cars in Thailand with the help of a local partner. Talks were being held with a Thai company, which had car factories without revealing the name of the potential partner. Talks are at the advanced stage and a decision will be taken in the next few months.

News From The Agencies

Metropolitan Rapid Transit Authority (MRTA): BMCL’s bid was approved in principle by the Cabinet, and confirmed compliant with MRTA’s Terms of Reference by the Attorney General. It now has to return to Cabinet for final approval.

State Railway of Thailand (SRT): Following its privatisation schemes at six suburban stations SRT is to invite similar proposals for a further nine railway stations in the provinces.

Office of the Commission for the Management of Road Traffic (OCMLT): A university has now been signed up to carry out the traffic studies of Petchburi and Rayong, following failure to attract bids from consultants.

Airports Authority Of Thailand (AAT): Following receipt of re-bids for the upgrading works at Don Muang that were still well above budget, Deputy Communications Minister Pradit has ordered AAT to revise its Terms of Reference.

Expressway and Rapid Transit Authority of Thailand (ETA): ETA has been criticised for acquiring only two of the 110 plots in Bahn Krua, Phayathai, needed to construct the “Collector/Distributor Roads”, the long-overdue final link of the Second Stage Expressway System. ETA is required to hand over the land to BECL as part of the concession contract.

Department of Highways (DOH): Following Cabinet approval, DOH is to release documents for the baht 16.9 billion Southern Outer Bangkok Ring Road which includes a cable-stayed bridge. The bids are to be submitted by July 11th.

Project News

MRTA North and South: MRTA will forward proposals next month to the Committee for the Management of Road Traffic for a 5km underground extension of MRTA south from Hua Lampong to Tha Phra in Thonburi. The 9km elevated section from Tha Phra to Bang Khae has been postponed until 2006.

Second Bangkok International Airport (SBIA): 5 groups have made the final round for the distributor roads ground preparation contract (c1.8bn Baht). Financial proposals will be opened following receipt of JBIC’s endorsement of the shortlisted groups. Tender documents for the terminal buildings are expected to be available mid May.

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Dacon Computers - There is a difference.

There is a tendency for many people to think that all computers and computer retailers are the same. “Not so,” says Dacon Computers. “Such aspects as Quality and Support will soon differentiate between the professionals and amateurs who have tried to ‘cash in’ and make their hobby their livelihood.”

Dacon are situated in Ban Chang, on Sukhumvit Road and about 300 metres past the Eastern Star turnoff outbound. Part of the Dacon Group that has been in Thailand since 1993, the computer offshoot has a very strong business base that gives it the solidarity so often lacking in other businesses that spring up, then disappear again just as quickly.

As part of their quality procedure, Dacon Computers use university trained consultant staff including those with the Master Computer Network Engineer (MCNE) degree levels. This means that they can offer hi-tech services, including fibre-optics, and the very latest in server set-ups and networking.

Another standard for this company is their use of genuine software - unfortunately a rarity in Thailand. “We believe our customers should have all the advantages such as free updates and online support and help that is available from organisations like Microsoft. For the small outlay to get genuine software, why would you bother with the copies?”

The company has now opened up its own factory in Ban Chang, producing their Dacon brand product line as well as being able to service and repair all brands, including laptops. Dacon branded equipment is also offered with one year’s free service and support, a comforting feeling for many businesses that have been left high and dry in the past.

With the Dacon Group behind them, Dacon Computers are able to process credit card payments and will shortly be able to offer credit facilities to approved purchasers.

With prices starting from only 16,000 baht for an ‘Internet ready’ computer, Dacon are aware of the competitive nature of the industry, but are adamant that quality remains in the forefront of all their dealings.

Being already a major supplier in the Maptaput industrial region, Dacon are now expanding through the Eastern Seaboard and will deliver and give support to Pattaya based companies or individuals. Again, this support is being done through professional computer engineers and not hobbyists.

Contact can be made with Dacon at (038) 880 788, or fax (038) 880 631 or email [email protected]. They are open six days, M-F 0830 - 1800 and 0900 - 1300 Saturdays. If you are looking for professionals in this area, it is worthwhile giving them a call.

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BOI says NO to request for electrical raw material import tax reduction

The leader of Thai electrical appliances and electronics manufacturers said that the group of 148 companies submitted a request to the secretary general of BOI for import tax reduction consideration.

These companies are currently not BOI promotional projects and are facing difficulties controlling costs while competing with other promoted companies. This is largely due to the fact that these companies have to pay up to 30-40% import tax for raw materials.

The deputy secretary general of BOI said that BOI privilege can be provided only once and cannot be renewed. Companies that are no longer receiving BOI privileges cannot obtain them again, unless their businesses make major investments or undergo major expansions. In such cases, BOI will consider granting privileges case by case.

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IMD rates Thailand 33rd

The International Institute for Management Development’s survey of countries with the highest competition capability in the world market ranked Thailand in 33rd place. The USA still holds the number 1 position in the survey, a spot it has held for the past 5 years.

Singapore was ranked #2 in the world survey, a position it has held since 1996. Malaysia was ranked slightly ahead of Thailand, in 30th place.

The political and economic range of criteria that IMD took into consideration covered areas such as government, finance, basic economic structure, science and technology management and labor force.

IMD’s headquarters are in Switzerland.

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Talks held to settle dispute between KSC and Jasmine

Sources from M-KSC World Dot Com said that the dispute between Jasmine and KSC, which has gone to court, is beginning to show signs of compromise. The management of both parties recently met and held talks to find the best practical way to resolve the conflict.

The dispute occurred when Dr. Srisak Jamornmarn and Dr. Kanokwan Wongwattasin, the two management and major shareholders in KSC Commercial Internet, announced the sales of their holding shares, which amounted to 40%, to MIH Asia Pacific. Jasmine International, as another major shareholder, then brought the issue to court in attempt to suspend sales of shares.

The current discussion between KSC and Jasmine is in the area of the share holding portion of each party, management positions to be allocated to Jasmine under the new company structure, and benefit issues.

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“Plairthai” Thai web page translation program is launching version 3.0

Tossapas Thongnoi, website developer of http://thaitrans.hypermart.net, a website translation program from English to Thai, said he is developing the program in version 3.0. It will be a complete version called “plairthai 2000” (Thai translation 2000).

Version 2.2 of the online service web page was hacked on April 3rd; however, the source code of program development was saved from the invasion. The event has become one of the reasons for developing the new 3.0 version.

The website allows interested users to register online and receive a password, which is required for the translation service. The subscription price is currently 100 baht.

Tossapas said that the website is open for co-investment by a bigger IT company, as long as the agreement provides the developer freedom in setting its price.

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Updated by Chinnaporn Sangwanlek, assisted by Boonsiri Suansuk.