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Asia Bond Market proposed at economic summit
Prime Minister Thaksin Shinawatra showed his vision at
the World Economic Forum’s East Asia Economic Summit held recently in
Kuala Lumpur when he suggested the Asia Bond Market be set up to allow the
region to survive a new round of economic crisis.
Speaking at the meeting on Asia Cooperation Dialogue, he
said he wanted to see each country in Asia set aside 1% of the international
reserve to pool their money to establish the market. He also said a regional
credit rating agency should be set up to evaluate and rate bonds issued in
Asia.
The Thai leader said countries in Asia need to step up
cooperation with each other as those in other regions have already begun
grouping at different levels.
Thaksin said Thailand has already pulled out of the
economic crisis and the country’s economy has gradually picked up. It is
now trying to manage the economy properly to ensure sustainable development
and is ready to reap benefits from globalization and liberalization. The
countries in Asia are different in terms of geography and culture and have
an abundance of natural resources. Therefore it would be wise to take
advantage of these factors in order to strengthen the region.
He said signs of economic recovery in Asian nations are
positive and now is the time for countries in the region to become stronger
and encourage strategic alliances. ACD could serve as a tool for development
and prosperity. (TNA)
Business confidence index drops only slightly
The business confidence index in August dropped slightly
to 50.9 points from 51.9 in July, but 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 due to
higher oil prices.
The central bank said the index, which has remained in
positive territory - above 50 points - for six months in a row, reflects
confidence among businessmen in the country’s steady economic recovery. As
a result, the bank’s forecast sees 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 was 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 is
expected 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)
Vehicle exports look good
for next year
The country’s vehicle exports are expected to remain
promising next year unless a United States-led military action against Iraq
occurs, according to an industry executive.
Ninnart Chaitheerapinyo, vice president of Toyota
(Thailand) Co, said in the first eight months of this year, local sales
reached 250,000 units and exports totaled 73,000 units. Giant carmakers
including Ford, Mazda and Isuzu have already increased work shifts to two
periods because of rising purchasing orders.
Toyota is likely to expand its work shift in November to
accommodate an increase in market demand. Ninnart said he believes that
vehicle production will increase from the current level of 57% of total
capacity next year.
"The need to expand work shifts signals improvement
in the auto industry. Before the crisis, automakers hired hundreds of
thousands of workers to work three shifts. But once the bubble burst, they
retrenched some workers and reduced the shifts to one," Ninnart said.
Ninnart projected total sales of vehicles will be around
700,000 units next year. Of this, 450,000 units could be sold locally and
the rest would go for export.
In 2004, total sales are likely to rise to 800,000 units
with local sales of 520,000 and exports of 300,000. The sales in 2005 were
expected to increase to one million units with local sales of 600,000 and
exports of 400,000 units. (TNA)
AIDS activists win court battle against U.S. drug maker
By Uamdao Noikorn
Associated Press Writer
Health activists battling to reduce the cost of AIDS
drugs won a victory on October 1st when a judge ruled invalid part of a
patent held by U.S. drug maker Bristol-Myers Squibb.
The ruling on Videx EC, an antiretroviral drug used to
combat HIV - the virus that causes AIDS - allows activists to proceed with a
lawsuit seeking to overturn entirely Bristol-Myers’ patent on the drug in
Thailand and let other companies manufacture generic versions at a lower
price.
"This is good news for the more than 1 million HIV
patients countrywide," said Nimit Tianudom, director of the AIDS Access
Foundation, a lobby group for people with HIV. "It ensures their access
to the right to be healed."
The Central Intellectual Property Court’s ruling that
Bristol-Myers’ patent covers only pills containing between 5 and 100
milligrams of didanosine - the active ingredient in Videx - paves the way
for other drug makers to market pills with dosages above 100 milligrams.
The suit was brought by People Living with HIV/AIDS, a
Thai non-governmental organization, and two people afflicted with HIV,
alleging that the drug company improperly sought to extend its patent on
Videx to cover dosages beyond those for which it originally applied.
Judge Kornkanya Suwanpanich’s ruling also affirmed that
non-governmental organizations and individuals could challenge patents on
social grounds, such as public health. Previously, only companies with a
commercial interest in such cases had been complainants.
A Bristol-Myers spokesman in the United States said he
wouldn’t comment until the company had seen details of the ruling.
Activists have been seeking to reduce the price of
medicines used to treat HIV, saying the high prices discriminate against the
poor. Pharmaceutical companies have trimmed prices somewhat but generally
oppose steep cuts because of the need to recover the high costs of research
and development.
Bristol-Myers developed Videx after licensing didanosine
from the U.S. Institutes of Health. But activists claim the company’s
patent is invalid because the drug doesn’t differ enough from didanosine
to be considered separate and thus patentable.
Toyota Tsusho Techno Park Group Signs with Hemaraj
(From
left): H. Kitagawa, project general manager, Toyota Tsusho Corporation; S.
Ito, department manager, Toyota Tsusho (Thailand) Co., Ltd., T. Nomura,
executive managing director and David Nardone, president & CEO, Hemaraj
Land and Development PLC. K. Takeyama, director and H. Yanagisawa,
president, Seimitsu Corporation, and Vivat Jiratikarnsakul, Hemaraj’s
executive vice president.
Kobatech (Thailand) Co. Ltd. NT Seimitsu (Thailand) Co.,
Ltd., and Seimitsu Thai Co., Ltd., led by Toyota Tsusho Corporation (Japan)
have signed to purchase 17.51 rai of land from Eastern Seaboard Industrial
Estate (Rayong), developed by Hemaraj Land and Development PLC.
These companies will produce high precision fuel
injection parts for the automotive engine with the investment of
approximately 500 million baht.
Thai rice and dried foods in greater demand in Canada
Thailand’s Commerce Ministry has reported that Thai
rice and dried foods are in greater demand in Canada,
The ministry said it was informed by its foreign trade
promotion office in Toronto that Minh Phat Trading Co., wholesaler of dried
foods in Canada, wants to import high-quality rice from Thailand. The firm
has been satisfied with the import of Thai products because of good profits.
Most customers of the company are Thais and Vietnamese
who opened restaurants or grocery stores in Canada. The firm directly
supplies around 100 restaurants and supermarkets owned by Thais, Vietnamese
and Chinese.
Ninety percent of dried foods imported for sale in Canada
are from Thailand and the remaining 10 percent is imported from Vietnam.
(TNA)
MOC confident exports will grow this year
The Ministry of Commerce voiced confidence in its
projection of 3.5% export growth this year with the country likely to enjoy
a trade surplus of US$3.3 billion on average.
Commerce Minister Adisai Botharamik said exports in
August increased to US$6.3 billion, a 9.1% increase over the same month last
year. Exports in the first eight months of this year totaled $44.1 billion,
up 0.8% from the corresponding period the previous year.
Imports in August totaled $5.9 billion, a surge of 15.8%
from the same month the year before. Still, import figures during the
January to August period declined by 0.17% to $42.09 billion.
The country enjoyed a trade surplus of $347 million in
August, a fall of 45.1% from that of the same month the previous year. But
the surplus in the first eight months of this year rose 26.4% to $2.05
billion.
Dr Adisai said, "I’m still confident this year’s
export will grow 3.5% as targeted and the trade surplus may be even higher
than $3.3 billion. Although the economic situation in the United States
still looks uncertain for the second half of this year, our export figure in
the third and fourth quarter is expected to remain positive."
He added, "It is hard to foresee the situation in
November and December. But I firmly believe exports will meet expectations
given the government’s extensive measures to promote them." (TNA)
Figures show industrial output index rose in August
The industrial output index in August continued to
increase for the ninth month in a row and indicates local consumption has
improved, according to a senior official at the Industrial Economics Office.
Damri Sukhotanang, the office’s director-general, said
the index stood at 195.2 points, up 3.1% over July and 32.8% over the same
month the previous year. The product transport index in August was 193.3
points, an increase of 4.9% over July and 36% over the corresponding period
the year before.
The inventory index was 155.4 points, a rise of 1% from
that of the previous month and 2.5% from that of the same month last year.
But the inventory ratio index dropped by 5.6% from that of July and 12.9%
from that of the corresponding period last year to 103.1 points.
"The rise in the industrial output index in August
was attributed to an increased production in many industries in preparation
for local and overseas demand," said the director general.
He said industries with output rising for the nine
consecutive months include automobiles, television and radio sets, beer, the
marine animal process and preservation industry, marine products (canned
seafood), and petroleum products.
Industries with declining output include cement products,
clothing, electronic tubes and parts. (TNA)
BOT denies government’s plan to make early dept repayment weakens baht
The Bank of Thailand (BOT) recently denied the baht’s
weakness was attributed to reports of the government’s plan to repay debts
owed to the International Monetary Fund ahead of schedule.
Thirachai Phuvanat-naranubala, deputy governor of BOT in
charge of monetary stability, said the weakening of the local currency
stemmed from several oil companies’ move to expedite foreign currency
payments of oil imports.
Repayment of foreign debts by the public and private
sectors at the end of the third quarter was another factor behind the baht’s
depreciation. Thirachai reiterated the baht had not weakened significantly,
adding that its depreciation was in line with that of regional currencies.
Thirachai said, "There were reports the weakening of
the baht is a result of the government’s plan to make early repayments on
debt with IMF. We want to clarify such reports have nothing to do with the
baht value. Should the debt repayments be actually made, it won’t affect
the baht value because the bank has sufficient foreign reserves." (TNA)
Local farmers urged to adopt organic farming
Local farmers are being encouraged to adopt organic
farming methods to accommodate an increasing demand for chemical-free foods
among consumers worldwide.
Somkid Disathaporn, director of the Agriculture
Department’s Organic Crop Institute, said consumption of organic food has
increased annually by 15%. The demand for organic food in the world market
soared to one trillion baht in 2000.
To keep up with the trend, the Agriculture Ministry set
up the Organic Crop Institute early this year to encourage the production of
organic food.
Somkid said, "The overall demand for the food in the
world market continues to increase annually with the United States, Germany,
and Japan becoming major markets. Demand from neighboring Singapore also
rose significantly."
The director said the institute has launched a pioneer
project to support the organic farming of crops, fruits, vegetables, and
herbs. In particular, organic jasmine rice is in such great demand from the
European Union that participants in the project could not produce enough.
Other organic products that gained popularity include bananas, durians, corn
and other vegetables used for salad. (TNA)
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