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Establishment of venture capital fund aims to help SMEs
Deputy Prime Minister Somkid Jatusripitak recently met
with the Securities and Exchange Commission (SEC) to discuss the
establishment of a venture capital fund to help Thailand’s small and
medium enterprises (SMEs) launch their products in the international market.
Since most lack capital, the government is talking with the SEC about
setting up a venture capital fund to enable Thai SMEs to be listed on the
stock market.
Present government policies aim to raise living standards
of all Thai citizens, but achieving these targets will take time. Somkid
said that policies such as the debt moratorium for farmers, the 30 baht
healthcare scheme, the ‘One Tambon, One Product’ project, and the free
trade in fruit and vegetables with China and India were only the first steps
in bringing prosperity to the people.
Small and medium enterprises could become a key economic
driver and government wants to strengthen them. More than 2,000 SMEs are
being viewed as having enough potential to take their products to the global
arena. (TNA)
MOC pushes for motorcycle insurance
The Ministry of Commerce (MOC) is heading up a campaign
to ensure that 10 million uninsured motorcycles get insurance as required by
the law, a move which would benefit local insurance companies.
Deputy Commerce Minister Wattana Muangsuk said the
department of land transportation registered a total of 16.5 million
motorcycles nationwide as of the end of last year. Of that, 2.3 million
motorcycles were registered in Bangkok, while 14.2 million units were
registered in the provinces. Of the total registered motorcycles, only 6.2
million have insurance policies, while the remaining have yet to be insured.
Under the scheme, the ministry will ask village headmen
to act as agents selling vehicle insurance polices to their villagers and
help residents renew vehicle registrations.
Regulations governing land transportation will be amended
to enable the headmen to arrest and fine those failing to abide by the law
from September 1, 2003 onwards.
As an incentive, village headmen will get a commission of
12 percent of the required insurance fee of 300 baht per unit for selling
insurance policies to motorists in their villagers and 30 percent of the
fines collected from offenders. (TNA)
National Environment Board gives nod to biodiversity ratification
After several years of delay, Environment Minister Prapat
Panyachatraksa announced that the National Environment Board said it is
ready to allow the ratification of the International Biodiversity
Convention, which should be concluded by the end of the year.
Although Thailand is a signatory to the convention, it
has not yet ratified it due to concerns that it could put the kingdom at a
disadvantage. After months of wrangling, the Constitutional Court eventually
ruled that Parliament would deliberate the issue.
Prapat said, “Presently, although Thailand is a
signatory to the convention, it has no right to state its views in meetings.
Once Thailand ratifies the convention it will be able to participate in
international forums to protect biodiversity, and should receive full
academic support. Now only Thailand, Brunei and the United States have yet
to sign the convention.”
A committee will be established to make proposals to the
Cabinet concerning amendments to legislation in biodiversity management and
policies Thailand should adopt in the international arena. It will also
draft a Bio-security Act to control biological research and the commercial
use of biological and genetically modified organisms to ensure safety to the
environment. (TNA)
BOT unveils financial institution’s master plan
The Ministry of Finance has given the green light to the
Bank of Thailand’s (BOT) master plan, designed to clarify the role of
financial institutions and overhaul the way loan decisions are made
according to Tharisa Wattanaket, deputy secretary-general of the BOT’s
financial institutions stability section.
Tharisa said that the plan detailed short term, medium
term and long term measures. The short term measures would be enforced in
the near future and would begin with offering improved financial services
for people living in provinces, a role that was decreased during the
financial crisis of the late 1990s.
The central bank’s plan will clearly define the work of
each type of financial institution and detail the operations performed by
specialist institutions. In terms of commercial banks, there will be an
overhaul in the credit decision system, with loan decisions made not only on
the basis of capital but on business capability and profit potential.
The master plan will also make the system of commissions
levied by financial institutions more appropriate and systematic.
The plan warns that inflows of foreign capital will be
carefully controlled to avoid an adverse impact on the economy as a whole.
Regulations are being drawn up to control foreign currency transactions in
the future. (TNA)
UK’s Wastewater Company Limited inspects Saensuk Municipality water treatment plant as part of its investment plans for Thailand
Songklod Kaewvisit
Wastewater treatment is big business around the world
including Thailand. With much of the country now focusing on sustainable
environmental conservation plans and waste treatment, Wastewater Company
(Thailand) Ltd. is set to become an active part of the movement.
Brian
Hill with Pornthep Leewiwat, and Nattapat Saiwan at the Bangsaen-Saensuk
Municipality water treatment plant.
Representatives of the local subsidiary recently visited
the Bangsaen-Saensuk Municipality water treatment plant on a fact-finding
tour. Brian Hill, business development manager and Pornthep Leewiwat,
business development manager for Thailand surveyed the plant’s operations
as part a study in which the UK based company plans to invest in the
construction and maintenance of 86 locations around Thailand.
The Saensuk facility is a joint project between the
Ministry of Science, Technology and Environment. Wastewater Operations
Management Company’s general manager and project engineer Nattapat Saiwan
led the group on the study tour.
Based out of the United Kingdom, Wastewater Company Ltd.
is a subsidiary of the United Utilities Co. Ltd. United Utilities is
involved in wastewater treatment, electricity, gas, telephone and other
services. Wastewater is the largest contractor in the construction and
management of sewerage treatment plants specializing large cities such as
Manchester, England and other cities around the globe. The study of the
Saensuk facility was made due to its complexity and current high standard of
operation.
The two plants in Saesuk and Bangsaen process over 23,000
cubic meters of waste water per day with a combined sewer system of 139
kilometers of drainage pipes leading to the plants. A high level process
enables the sewage to be treated via oxidation ditches allowing water to be
released into the local environment with no adverse effects.
Further surveys and study tours will be done before the decision is made
to make the major investment of building and running 86 similar high
standard plants around Thailand.
Price war planned against pirate CDs
Music and movie companies are agreeing to reduce the
retail price of CDs and VCDs to attract consumers to buy legal products.
Wattana Muangsuk, Deputy Commerce Minister, said that the entertainment
business owners had been satisfied with the stringent crackdown on pirate
merchandise and music and film copyright violations.
Thai copyright holders are to reduce retail product
prices from about 400 baht to 250 baht for music CDs. The music and movie
producers will propose a final pricing scheme to the ministry this month.
International copyright-holding entertainment companies
will also submit price guidelines by the end of this month. The Commerce
Ministry will announce the prices of legal products in August. (TNA)
TT&T Plc. says company is making profit but finding a viable partner is proving more difficult
TT&T Plc said its total revenue for 2003 will be
about seven billion baht, 500 million baht higher than its reported income
last year, due to economic growth and greater demand for telephones from the
business sector.
Pisit Leeahtam, president of the provincial fixed-line
telephone operator sector, said the firm will have to wait and see whether
the second half of 2003’s income will be affected by the government’s
liberalized telecommunication policy, more intense competition and the
recent long distance call rate cuts.
Asked about the problem of seeking new business partners,
Pisit conceded that due to the current economic situation and the
government’s policy to limit foreign ownership to not more than 25 percent
has made it hard to find a viable partner. “If we can’t find a new
business partner by March of 2004 as required by the company’s
rehabilitation plan, TT&T will convert its group C’s 75 percent debt
into capital, significantly reducing its major shareholders, Jasmine
International Plc’s, stake from its current 35 percent,” Pisit said.
(TNA)
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