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Japan to open market for Thai mangosteens
Japan says it will open its to markets to Thailand for
its tropical fruit known as mangosteens since the quality of the Thai fruit
is now very good, according to Agriculture and Cooperatives Minister
Sora-ath Klingprathum. “I told top Japanese envoys that the quality of
Thai mangosteens has been steadily improving to a satisfactory level, and
urged that Tokyo open its market, he said.
Exports of Thai mangosteens to Japan are expected to
reach billions of baht annually if the market can be penetrated.
Discussions were also held on food safety among member
countries of the Association of Southeast Asian Nations (ASEAN) in case of
emergency, namely rice-stock systems. An idea to promote Thailand as a hub
for agricultural information was also raised during the discussions. (TNA)
PTT petrol stations will sell Thai fruit wine and liquors
In an effort to link up with the nationwide One Village,
One Product scheme, Thailand’s largest gas and oil firm PTT has joined
with a group of distillers of traditional liquor and fruit wines by offering
to market their products in its gas stations.
PTT expects to set up 30 booths at various PTT service
stations for selling the One Village, One Product merchandise by the end of
January 2003.
At present here are about 1,000 producers of local
liquors and fruit wine. Nationwide marketing and promotion of Thai wines
could help reduce the annual 60 billion baht locals spend on imported wine
and liquor.
PTT’s vice-president Apisit Rujikiatkamjorn said that
the company has already started transforming four of its service stations in
Chonburi, Chacheongsao, Bangkok, and Saraburi into prototype shops. Other
products on sale at PTT’s service stations will include handicrafts, and
traditional herbs.
Chaiyuth Visuthjitjai, representative of the local group
of distillers, said the group has already asked the Department of Export
Promotion to help market the local products and has asked Thai Airways
International to include Thai liquor and wines on its in-flight shopping
list.
The group also wants government assistance in research,
development, and marketing. This would add value to the products and help to
open markets overseas. (TNA)
SET hopes to increase market cap to 2.8 trillion this year
The Stock Exchange of Thailand has set a target to
increase the market capitalization of the bourse to 2.8 trillion baht for
the year 2003.
SET president Kittirat Na-Ranong said he had an
aspiration to see the market capitalization double to around 5 trillion baht
in the next four years.
He conceded it was difficult to enlarge the market cap of
the Thai stock market to 10% of that of Asian stock markets as a whole.
However, the SET hopes to see the market cap of the local bourse account for
5%.
He disclosed the total trading volume from January
through to December of 2002 increased by 28.32% to 2.02 trillion baht. The
average daily turnover stood at 8.5 billion baht, an increase of over 30%
from that of year 2001.
Although the local bourse was affected by the continued
fall in the US stock market and fears of a possible war between the US and
Iraq, the trading value for the past year was higher than targeted. Kittirat
said this was attributed to the government’s economic stimulus package and
improved performance results of listed companies. (TNA)
BOT urges tax caution toward government’s fiscal stimulus plans
The Bank of Thailand (BOT) has stressed caution regarding
the government’s recent tax-cut measures. It says that although the
tax-cuts are aimed at economic stimulus, such cuts may not be required as
the economy gains strength.
Bandid Nijathaworn, assistant governor of the Bank of
Thailand recently stated that, “It is necessary to create a balance
between the tax system and the other economic sectors in order to stabilize
our county’s future fiscal position.”
A recent government move to cut the personal income tax
rate for low-income earners and to provide further fiscal stimulus to the
real-estate sector to prop up housing demand will be effective early in
2003.
The government will slash the personal income tax for
low-income earners so that those who make an annual income of less than
80,000 baht will not have to pay any income tax.
The measures also extended tax incentives for the
real-estate sector by cutting the specific business tax from 3.3 percent to
0.11 per cent and retaining the reduced transfer fees for land and buildings
from 2 per cent to 0.01 percent. People who sell their old house to buy a
new home will also get a tax break in order to encourage home ownership.
However, the BOT feels that if the local economy can
sustain healthy growth, some of these measures may not be necessary and the
government needs to achieve a macroeconomic balance.
There have been calls from the International Monetary
Fund for the Thai government to send signals that it intends to consolidate
fiscal policy in the medium term to bring the rising public debt under
control and achieve a balanced budget by 2007. Some feel the tax-cut
measures could hinder this fiscal consolidation. (TNA)
EGAT resists privatization
EAGT disagrees with the government’s plans to proceed
with the privatization of the state-owned Electricity Generating Authority
of Thailand (EGAT). EGAT’s governor views the plan as a threat to the
success of the multilateral Asia Grid Project.
EGAT Governor Sithiporn Rattanophas recently told Energy
Minister Pongthep Thepkanchana that the Asia Grid Project involves
investments from 8 countries in a number of power-generation projects,
including the construction of the US$6 billion Salween Dam along the
Thailand-Burma border. He said this means it is vital to retain EGAT as a
state-owned entity because of its assets.
EGAT’s enviable assets can be used to obtain funds from
international investors and lenders such as the World Bank. But EGAT would
lose its attraction if it were broken up into smaller entities as is part of
the privatization scheme.
Other countries involved in the Asian Grid project
include China, Burma, Vietnam, Laos, Cambodia, Singapore and Malaysia. Power
generated from the Asia Grid project would be sold to these countries to
meet future energy needs.
During the year 2002, electricity needs among the 8
countries were estimated at 50,000 megawatts.
A study indicates that this demand will increase to
100,000 megawatts by 2010, thus requiring more power-sector investments.
EGAT feels it is in the best position among the ASEAN group to lead in these
investments. (TNA)
Rice exports up
Thailand’s rice exports in 2002 reached about 7.2
million tons, beating the government’s target. The figures were slightly
below last year’s record because the country lost some market share to
India, but Nigeria is expected to continue to be Thailand’s top rice
buyer.
Somboon Pathaichant, manager at the Thai Rice
Exporters’ Association, said, “Thailand’s rice exports for the year
2002 are lower than in 2001 due to fierce competition from other exporters,
notably India.”
In the early part of 2002 the Thai government forecast
the nation’s rice exports at 7 million tons. The figure was down slightly
from 7.5 million tons the year before. India emerged as a major
international rice supplier last year and overtook Vietnam as the world’s
number-two rice exporter.
Exporters say the top five buyers of Thai rice in 2002
were Nigeria, Indonesia, Senegal, Iran and South Africa.
Leading banker warns of widening gap between rich and poor
Bantoon Lamsum, president of Thai Farmers Bank Plc. said
he has learned from a recent discussion with the Bank of Thailand (BOT) that
the country’s international reserve has now increased to US$38 billion and
this bodes well for the economy. But many people still face economic
hardship while certain groups of people are extremely wealthy. He said this
huge gap between the rich and the poor needs to be solved urgently.
Bantoon agreed that government and private companies must
join forces to boost the economy, but should also try to prevent the
repetition of a bubble economy.
Bantoon said the BOT continues to accelerate lending and
expects a growth rate of 2% for the year 2003.
The bank is also stressing the importance of risk
management. “Lending without paying attention to risk management will
aggravate the public debt problem as could be witnessed in the past,”
Bantoon said.
He said the non-performing loan problem has slightly
improved, but not significantly because the economic recovery has not been
felt in all sectors. Debt-restructuring needs to be done with regard to
financial discipline. He projected interest rates will continue to stay low
because liquidity in the banking system remains high. (TNA)
Leading researchers worldwide to gather in Bangkok
Many leading economists, researchers and academics will
gather in Bangkok to attend the 7th International Conference on Global
Business and Economic Development during January 8-11.
C. Jayachandran, representative from USA’s Montclair
State University in New Jersey, said the university joined with the Asian
Institute of Technology and universities worldwide to hold the international
seminar.
The forum will serve as a venue where participants can
learn strategies to run businesses in the era of globalization and to
coordinate Western business styles with those in Asia. He said economies of
many countries in Asia, particularly Thailand, have gradually strengthened
because of the continued economic growth.
More than 300 researchers will present around 180
research papers and work during the forum.
Leading participants from Thailand include former Prime
Minister Anand Panyaranchun, Olarn Chaiprawat, advisor to the finance
minister, and top executives of various private and public organizations. (TNA)
Unithai Group hosts first ‘Open House’ at Laem Chabang facility for VIP customers and local officials
Suchada Tupchai
Over 50 people attended Unithai Shipyard’s ‘Open
House’ at their Laem Chabang port facility on December 20. Unithai Group
management and staff welcomed customers and officials. Visitors were treated
to a slide show on the company’s three main core businesses, shipping,
logistics and metal fabrication.
Over 50
people attended Unithai Shipyard’s ‘Open House’ at their Laem Chabang
port facility on December 20, and were treated to a history presentation
about the company, and a slide show on the company’s three main core
businesses: shipping, logistics and metal fabrication.
During a slide presentation, Apirat Petchu, manager of
the Marketing and Ship Repair Division, explained the company’s start-up
in 1991 and how its stable growth allowed it to become Thailand’s largest
shipping maintenance firm. He said that Unithai’s business continues to
grow despite local economic pressures due to international market appeal and
specialized facilities in the shipping industry.
Following the presentation, a tour of the 500,000 square meter premises
featured the main operation areas and the company’s various departments.
Then all were treated to a delicious lunch. Following the meal a question
and answer session was held.
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