BUSINESS NEWS
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Thai German Institute introduces new technology to Thailand’s SME sector

Banks and private firms are urged to be more aggressive

Assumption University polls public confidence on government economic measures

BOT figures for August show business confidence drops only slightly

Economic quadrangle trade exhibition

Victor Kriventsov promoted to Royal Cliff’s new worldwide director of sales-leisure

Cabinet minister suggests project team on banks’ bad loan problem

Thai German Institute introduces new technology to Thailand’s SME sector

Earlier this month the Thai German Institute held a press conference to introduce new technologies into Thailand’s Small and Medium Size enterprise (SME) sector. Narong Rattana, TGI’s Thai director, announced that one of these new technologies supported by TGI is the ZOXY Battery, which was recently released into the Thai business sector.

Hubert Voudetten, ZOXY Battery business development manager for Asia.

At the conference held on October 1st Narong said, “The Thai German Institute is at the forefront in presenting new technology to the SME’s of Thailand. We have supported the Tuk Tuk Thai Co. Ltd., which is the first company to commit to new innovations including the ZOXY Battery. Hubert Voudetten, the business development manager for Asia has been working with the Tuk Tuk Thai Company to get project started.”

The ZOXY Battery (Zinc Oxygen) was first introduced in 1994. Since then development has continued with a full-scale production beginning in 2000.

Thirasak Chucheeb together with the ITB Project advisory team instruct the educational team from Best Polymer International Co., Ltd.

The benefits of the ZOXY Battery are numerous; the main being a substitute for the lead-acid battery currently used in industry and in vehicles. In addition to being environmentally friendly, it is three times lighter than current products, it can be recharged 300 times and is inexpensive.

Narong Rattana, TGI’s Thai director

Hubert Voudetten said, “ZOXY has been well received in the German and European markets. This versatile power source is used in the communication, transport and industrial sectors. As for Thailand, production of the fuel cell is underway and we intend to promote it as an environmentally friendly and quality product.”

As part of the project, the suggestion was made to use the battery in the tuk tuk industry. “TGI was instrumental in taking the idea to the Tuk Tuk Thailand Co. Ltd. We see it as an important step in furthering the economic development in Thailand,” added Hubert

Prof. Vinai Sripaichaiyonsak teaches Mold & Dye Manufacturing Co., Ltd.

The official launch of the battery powered Tuk Tuk was held on October 10th. The company expects to integrate the use of the ZOXY Batteries in tuk tuks by the end of this year. A representative of Tuk Tuk Thailand said, “We have been operating for over 15 years, producing tuk tuks for Thailand. This new innovative technology definitely has a market not only in Thailand but also throughout Asia. The new generation of tuk tuks will benefit not only the environment but the country as a whole.”


Banks and private firms are urged to be more aggressive

Thailand’s prime minister has suggested commercial banks and private companies manage their businesses aggressively in view of stiffer competition encountered through globalization. In his view, adopting a strictly defensive strategy will hinder the sector and hamper the nation’s overall economy.

Referring to results from a recent workshop dealing with non-performing loans, the PM said the meeting reported progress being made by Thai Asset Management Corporation, (TAMC) which is tasked to manage bad debts held by private and state banks.

TAMC’s new strategy will involve categorizing all non-performing loans into different segments. This method will attempt to set a standard of restructuring geared specifically for each category. Both good and problem debtors will be given fair treatment in terms of incentives. Segments of non-performing loans (NPls), which could increase employment and revitalize the economy if successfully restructured, should be given priority.

The prime minister said, “I had an opportunity to exchange views with business figures and executives of the Thai Bankers’ Association and asked them to step up efforts to help strengthen the country’s economy.” (TNA)


Assumption University polls public confidence on government economic measures

Most households remain confident of economic stimulus measures being taken by the current administration, according to a poll conducted by Assumption University (ABAC Poll).

The survey was conducted in the third quarter of this year with a random sample of 5,346 households nationwide to serve as an economic warning in the last quarter.

The ABAC Pool showed 15.2% voiced confidence in the economic stimulus packages and 31.4% was confident while 7.5% expressed uncertainty and 28.5% was uncertain.

Asked how they felt about family living conditions 54.5% said they were satisfied while 34.4% said they were not, and 11.5% did not comment.

Asked to comment on economic conditions in the past few months, 42.7% viewed they remained stable and 30.1%% said they had deteriorated while 27.2% viewed they had improved.

The poll showed 58.7% viewed the economy would worsen if oil prices continued to increase, and 49.6% said it would if farm product prices experienced a slump.

On the unemployment this year, 37.4% viewed it would increase while 9.9% said it would decrease and 33.5% felt it would remain the same. (TNA)


BOT figures for August show business confidence drops only slightly

The business confidence index in August dropped slightly to 50.9 points from 51.9 in July. However, that level was considered good for the sixth consecutive month, according to the Bank of Thailand.

The slight decrease was attributed to concern about higher production costs thanks to rising oil prices. The central bank said the index, which remained in positive territory; above 50 points for six months in a row, still reflected confidence among businessmen in the country’s steady economic recovery.

As a result, the bank is forecasting businessmen’s confidence in the economic outlook in the next three months will increase to 56.4 points on average.

The corporate performance confidence index rose marginally to 56.8 and was projected to reach 62 by the end of the year.

The order placement index climbed up to 46 from 45.8 in July and is expected to continue to rise to 60.6 by year-end.

The investment confidence index declined to 54.8 from 55.2 in July, but was projected to recover to 58.2 by the end of this quarter.

The employment index decreased to 53.2 from 54 and was anticipated to reach 54.8 by the end of the year.

The production confidence index fell to 52.1 from 54.3 and was expected to rise to 61.2 by the end of this year. (TNA)


Economic quadrangle trade exhibition

Thailand’s Royal Project and Economic Quadrangle Board hosted a four-nation trade show in the northern resort province of Chiang Mai, according to chairman of the Royal Project Foundation Peesadej Rachanee. The exhibition was held from September 28 through October 6 and aimed to strengthen ties between China, Laos, Myanmar and Thailand.

Somsak Wanichkachon, chairman of the Organizing Committee said that the event was initiated under the cooperation of the three neighboring countries - China, Laos, Myanmar - and 10 provinces of northern Thailand, including Chiang Mai, Chiang Rai, Lamphun, Lampang, Mae Hong Son, Phrae, Nan, Uttaradit and Tak.

The fair was divided into five major parts. The first area showcased locally-made products of the four nations, souvenirs plus Thai goods from the government’s One Tambon, One Product Scheme, and private firms, namely Charoen Pokphand Group and Saha Pathanapibul Plc. Motor Expo and fruit markets also held their exhibits in this zone.

The second section featured exhibitions from the Royal and Economic Quadrangle Projects, as well as tourism promotion of the Mekong region.

National performances of the four nations were shown at the third section, including the peacock dance of Sipsongpanna, and cookery demonstrations of each country.

In the fourth zone, a mini-concert featured Grammy Entertainment Co., Ltd, as well as other entertainment programs and food stalls offering northern local dishes. The fair organizers estimated about 30,000 visitors a day visited the 9 day event. (TNA)


Victor Kriventsov promoted to Royal Cliff’s new worldwide director of sales-leisure

The Board of Directors of the Royal Cliff Beach resort recently announced the promotion of Victor Kriventsov to the position of director of sales-leisure. Previously, Kriventsov held the position of director of sales-Europe & Middle East.

Victor Kriventsov

Kriventsov has been with the Royal Cliff Beach Resort for six years and will now be responsible for overseeing the resort’s worldwide sales activities for the leisure market as well as head the resort’s international team of sales managers.

The multiple award-winging Royal Cliff Beach Resort is a fully integrated 5-star resort comprising 4 hotels, 2 health spas and a stand-alone convention and exhibition center along with a myriad of other facilities recreational and leisure facilities.


Cabinet minister suggests project team on banks’ bad loan problem

Tokyo (AP) A project team to deal with the bad loan problem saddling Japan’s banking industry will be created in October. Economy Minister Heizo Takenaka, who assumed the financial services portfolio in a recent Cabinet reshuffle said the panel will discuss the issue and the government’s target of “normalizing” banks’ non-performing loans by March 2005.

Takenaka took over the banking portfolio after Prime Minister Junichiro Koizumi sacked Hakuo Yanagisawa over his foot-dragging in fixing the problems in Japan’s financial system.

In announcing the reshuffle, Koizumi stressed his desire to get Japan’s economy back on track after more than a decade of sluggishness, and cited the banking problem as a major priority.

Koizumi said the government needs to help the banking industry eliminate some of its 43 trillion yen (US$352 billion) in bad loans.

The government wants to cut bad loans to between 3 percent and 4 percent of total loans. The bad loan-to-lending ratio at major banks jumped to 8.4 percent in March from 6.2 percent in September and 5.3 percent in March 2001.

Takenaka said he wants the project team to submit an interim report in two weeks, and a final report by the end of the month. “We do not want a piecemeal approach,” Takenaka said, promising a comprehensive plan.

The make-up of the team is yet to be finalized. But it is expected to draw from both government and private sectors.