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Will the US economy take a long time to recover?
Thailand’s leading academics recently got together to
share views about the present state of the USA’s economy. Speaking at a
seminar on “Has the US Bubble Economy Burst”? Sompop Manarangsang,
lecturer of Chulalongkorn University’s Economics Faculty, said the US
bubble economy had indeed already burst and will need time to recover.
The US economy experienced negative growth in three
consecutive quarters of last year. It did enjoy positive growth in the
fourth quarter. However, close monitoring will show if the US economy
experiences what is called a ‘double-dip’ which means that after a
short period of growth, recession could follow.
Sompop attributed the bubble burst in the US to several
factors. For instance, prices of some stocks on Wall Street were inflated
by a merger of businesses to strengthen corporate performance. Sompop felt
the overall economy has not grown based on good fundamentals.
Sompop added that capital inflow into the US was mostly
from Asia and Europe for speculative purposes in the stock market. The
capital has begun to flow out considerably after account irregularities
were found in major companies in the US.
“It is expected the US economy will be in deep and
long recession. The country’s economy relies mainly on the foreign
capital inflow. Now, the capital is likely to continue to flow out and the
US government needs to come up with measures to restore investor
confidence,” Sompop stated.
Pichit Likhitkitsomboon, lecturer of Thammasat
University, said the US economic bubble burst while the country’s
economy remained in a gradual growth cycle. Therefore in his view the
impact from the burst should not be severe since the US economic
fundamental remains strong.
Suvinai Pornavalai, another lecturer of Thammasat
University, said the US bubble economy occurred in accordance with the
economic cycle. Still, the bubble period appeared to be shorter than
previous ones. He said the inflated economy stemmed from speculation in
stocks, property and derivatives as had been witnessed in the past. (TNA)
Government to follow Queen’s advice on development of Thailand as international food hub
The Public Health and Defense Ministries will help
develop Thailand as a world food hub as advised by Her Majesty Queen
Sirikit.
Deputy Public Health Minister M.D. Surapong Suebwonglee
recently announced that the Ministry of Public Health would promote and
encourage local farmers, fishermen and food manufacturers to produce high
quality food and food products.
In her 70th birthday message to the Thai people on
August 12, Her Majesty Queen Sirikit expressed her concern over possible
world food shortages in the future.
She suggested that Thailand develop and expand quality
and hygienic food production sources so that the kingdom could have an
abundant food supply and could even provide food to other countries,
making the kingdom become a major food source in the world.
“The idea to develop Thailand as a major food source
reflects Her Majesty the Queen’s far-sighted vision. The Ministry of
Public Health will speed the promotion and support of local food producers
to improve their products to meet international standards,” said M.D.
Surapong, who is paying a visit to the Unites States.
Deputy Defense Minister Gen. Yuthasak Sasiprapha added
that the Ministry of Defense and the Royal Thai Armed Forces are also
willing to cooperate with agencies concerned to set up prototype farms for
Thais to speed development in this industry. (TNA)
Cooperation in trade and tourism between Thailand and Indonesia key issues
Prime Minister Thaksin Shinawatra discussed cooperation
in trade, investment and tourism with Indonesian President Megawati
Sukarnoputri in Bali according to Government Spokes- man Yongyudh
Tiyapairat.
The Thai leader raised the issues when he held
bilateral talks with the Indonesian President after the signing of a
Memorandum of Understanding (MOU) on the setting up of a joint rubber
trade company between Indonesia, Malaysia and Thailand. Premier Thaksin
also discussed the proposed account trade with the Indonesian leader.
Yongyudh said that Premier Thaksin plans to hold
bilateral talks with his Malaysian counterpart Mahathir Mohamad as well,
but the agenda has not yet been set.
The three leaders witnessed the signing of the MOU on
the setting up of the tripartite rubber trade venture at the Tampasiring
Ubud Summer Palace. Deputy Prime Minister Pitak Intrawitayanunt was
authorized to sign the agreement on behalf of the Thai government.
The tripartite rubber trade company, with registered
capital agreed by the three countries of around US$225 million, is aimed
to be a vehicle to address the problem of declining rubber prices in the
world market.
“The newly-set up rubber trade company will become
the three countries’ joint mechanism to curb export volumes of natural
rubber to properly meet demand in the world market, which will help
address the problem of falling rubber prices”, said Pitak.
Indonesia, Malaysia, and Thailand are the world’s
largest rubber producers and exporters. (TNA)
Retail gasoline prices raised by B0.30 a liter
Last week Abhisit Rujikiartkamjorn, Vice President of
PTT Plc. announced that the company decided to raise retail prices of all
types of gasoline by B0.30 a liter. The nationwide upward adjustment of
the gasoline prices was due to a steady increase of crude and refined oil
prices in the world market over the past weeks, he stated.
With the upward adjustment, PTT’s retail price of
benzene 95 in Bangkok and peripheral areas increases to B15.29 a liter;
while retail prices of benzene 91 and diesel increase to B14.29 a liter
and B13.09 a liter respectively, Abhisit explained.
The price of benzene 95 in Singapore has risen from
US$26.70 a barrel to US$ 29.45 a barrel; while that of diesel has risen
from US$26.50 a barrel to US$ 28.15 a barrel.
The price of Dubai crude in Singapore has increased
from US$23.91 a barrel to US$ 24.88 a barrel.
Abhisit said that higher world oil prices were due to
falling stocks in the United States and the fear of uncertain situations
in the Middle East. (TNA)
Volvo develops world’s 1st virtual pregnant crash-dummy
With an unprecedented step to protect mother-to-be and
her unborn baby, Volvo’s legendary concern for safety now covers the
entire life-cycle.
Volvo has brought car safety to new heights as it
brings studies one step further by extending research on unborn babies
involved in car accidents.
 Driving
for pregnant women will soon be much safer. Volvo is now concentrating its
efforts to provide optimum protection for unborn babies.
The company’s virtual dummy, the world’s first
official computer model of a pregnant crash dummy whose basic geometry was
completed in January this year, is based on a woman in a late stage of her
pregnancy. The purpose is to study how the mother and her unborn baby are
affected by the seat belt and airbag in simulated accidents.
The computer model makes it possible to study in detail
how the seat belt moves, the influence of the belt and airbag on the
uterus, placenta and fetus, and how the fetus moves in relation to the
mother’s body.
The pregnant dummies, that can be scaled up or down to
the size the experts wish to study, are also being used to test new
designs for seat belts and other safety systems to be implemented by the
Swedish carmaker in future models.
Chantana Vatanaromya, Vice president for Marketing of Volvo car
(Thailand) said, “Today many pregnant women wonder whether the seat belt
could harm their unborn baby if they are involved in a car accident.
Thanks to Volvo’s tests to address this specific concern, pregnant women
will not only be provided with even better protection for the unborn baby,
but also benefit from more comfort.”
Exporters of gems and jewelry urged to eye Chinese market
Producers and exporters of Thai gems and jewelry should
pay more attention to the Chinese mainland and expand their exports to
this huge Asian market, according to Thai Farmers’ Bank Research Center.
The Bangkok-based research house suggested in a recent
report that local producers of gems and jewelry, particularly those
producing the medium to the lower grades of the products could change a
crisis of the Thai gems and jewelry industry into a fine opportunity.
Exports of Thai gems and jewelry to the world market
have generally increased in a steady upward trend. But exports to such
major markets as the United States, the European Union (EU), and Japan,
were being affected by similar products from rival countries, inlcuding
China, which have the advantage of cheaper production costs and abundant
raw materials.
“There is still more room for medium and lower graded
products, as well as artificial stones in the Chinese market, particularly
in such large cities as Beijing, Shanghai, Kwang Zhou and Shen Zhen” the
report advised.
Thailand’s exports of gems and jewelry to China are
currently worth only US$ 3.1 million, or only about 0.11% of total Thai
exports to the huge Chinese market.
The research center urged that local producers enhance
their competitiveness by improving skills of Thai workers and upgrading
production technology, which will help reduce production and labor costs.
(TNA)
Employment figures improve in first half of year
The country’s employment figures have improved in the
first six months of this year, but hidden unemployment and the number of
people working in a lower education level remain high, according to the
Bank of Thailand.
A survey showed the number of the employed totaled 32
million in May, an increase of 4.3% from the same month the previous year.
However, of the total 34 million people of working age
in that month, 1.98 million remained unemployed. Of this, one million are
considered the chronic jobless and 980,000 are seasonally unemployed.
It is expected employment in the first half of this
year will rise by 4.1% from that of the corresponding period the year
before.
Employment figures in the agriculture sector increased
by 600,000, or 5.1% to 12.5 million, from 11.9 million the same month the
previous year.
The increase in the employment was a result of the
implementation of the village fund, debt suspension for farmers, and the
One-tambon One-product program, which helped earn local people more
income.
The number of non-agriculture sector workers in May
rose by 700,000 or 3.8% to 19.5 million from 18.9 million the same month
the year before. The employment in the hotel and restaurant sector in May
increased by 9.4% from the same month last year and that in the wholesale
and retail sector rose only 2.4%.
Still, the BOT said it was likely employment in both
sectors would grow considerably in the first half of this year with the
hotel and restaurant sector surging by 12% and the wholesale and retail
sector by 9.1%.
The employment in the property sector also enjoyed a
significant increase of 11% as a result of the jump in construction work.
(TNA)
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