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Economy still vulnerable to 4 risk factors

Bank of Ayuthaya extends cheque clearing period

200 million baht budget pledged for deep-sea fisheries projects

Rice prices likely to rise in world market, says MOC

Former BOT chief appointed as SET’s chairman

US Franchise Mission to Thailand

Future exports expected to reach more than $100 billion

‘Mobile units’ to boost Middle East trade

Former finance minister agrees with current policy of budget deficit

Economy still vulnerable to 4 risk factors

Bank of Thailand’s Governor M.R. Pridiyathorn Devakula has affirmed the economy has satisfactorily recovered, but there remained at least four risk factors that could affect the sustainability of its growth.

In a keynote speech delivered at a seminar on “Economic Management on Recovery Path - Future Challenge”, he said the central bank was happy with the current economic growth and wanted to see the economy continue to expand steadily but he conceded there were risk factors that should be closely monitored.

Firstly, the economic growth driven by the consumption and export can not be sustained unless private investment expanded considerably. The growth in the consumption and investment should be balanced.

Secondly, the continued growth in export, which is the main driving factor for the economic expansion, remained uncertain given the global economic volatility.

Thirdly, non-performing loans (NPLs) and non-performing assets (NPAs) remained quite high in the financial institution system and impeded the smooth function of the financial institutions.

Finally, inflationary pressure would mount when the economy recovered. The BOT wants to keep inflation rates under control to ensure the economic stability.

However, the point was whether the central bank had sufficient information on the inflation. The BOT governor said, “The bank needs to monitor the movement of assets prices and try to curb the price increase to ensure the country would not experience the repetition of the bubble economy.” (TNA)


Bank of Ayuthaya extends cheque clearing period

Bank of Ayudhya, a leading Thai commercial bank, has initiated a move to further facilitate its clients by extending its cheque clearing hours to 03:00 p.m. Chet Raktakanishta, First Executive Vice President of the bank, said that the service would initially serve clients at its five branches located in major business areas, including the Rama III, Ploenchit, Sam Yaek, and Surawong branches, as well as its North Sathorn Sub-Branch. “From now on our clients can visit the five branches for the extended cheque clearing service”, he said, adding that the service would later be expanded to other branches.

Bank of Ayudhya is the first commercial bank here which has moved first to extend the cheque clearing period. Normally, commercial banks close their cheque clearing service at around 11:00 a.m.

Chet said that Bank of Ayudhya had also developed a new service, called the Cheque Express Service, by which the bank’s clients could immediately withdraw cashes from cheques paid on their names at the maximum of 200,000 baht per cheque in its clearing center in Bangkok, and at the maximum of 100,000 baht at its clearing centers outside Bangkok. (TNA)


200 million baht budget pledged for deep-sea fisheries projects

The government says it is preparing to pour 200 million baht into the private fisheries sector to boost the nation’s deep-sea fishing industry, in a bid to search for new markets for Thailand’s fishing companies and avoid concession fees. The Department of Fisheries will soon conduct feasibility studies regarding the proposal.

Songsaeng Pathawanich, president of an association concerned with fisheries outside Thailand’s waters, said that the prime minister had called on Thai fishermen to band together to engage in deep-sea fishery. Once the fishing industry had made its proposals to the government, the government would respond with 200 million baht in aid, he said, but he conceded that at present Thailand had few boats suitable for deep-sea fishing.

The industry is also calling on the government to open up negotiations with Africa to allow Thai fishing boats to operate in African waters. Songsaeng noted that already 10 Thai fishing boats operated in Madagascar and a further four boats in Mozambique, adding that Mozambique had also requested Thai investment in shrimp farming. (TNA)


Rice prices likely to rise in world market, says MOC

Rice exports are expected to benefit in terms of prices from the expected insufficient supply of the output in the world market next year, according to Thailand’s Ministry of Commerce.

Pasit Pumchusri, the ministry’s deputy spokesman, said the ASEAN Food Security Reserve Board met recently and concluded the rice output was on the decline in the global market with stocks likely to drop by 20% late this year, the lowest since 1987. According to the board’s estimate, the supply of the rice output would not meet the demand next year, resulting in rice prices in the world market edging up.

Pasit said the situation would benefit Thailand’s rice exports as prices would rise in tandem with those in the global market, although he conceded Vietnam was a remarkable rival in the global market share of rice. (TNA)


Former BOT chief appointed as SET’s chairman

Former central bank governor Vijit Supinij has been appointed as the new chairman of the Stock Exchange of Thailand’s board in place of Chavalit Thanachanan whose term had expired. Chavalit said Vijit was highly qualified for the job since he had long work experience in the country’s financial and economic system.

Vijit said, “I am honored and glad all members of the board entrust me to take the top post. As a former central bank governor, I have had an opportunity to help develop SET from the outset and worked closely together with its executives.”

Vijit said SET had played a crucial role in the economic system. As the new chairman, he would work closely with the board and management, and his full knowledge and capability to develop SET. (TNA)


US Franchise Mission to Thailand

The Thailand-U.S. Business Council (TUSBC) and the U.S.-Thailand Business Council (USTBC) are hosting the ‘U.S. Franchise Mission’ on September 15-16, 2003 at the Oriental Hotel, Bangkok. This is a rare opportunity for Thai entrepreneurs to have one-on-one meetings with representatives from top U.S. Franchises, and more importantly to acquire information about new franchise opportunities from the United States.

The U.S. Franchise Mission, a part of the U.S.-Thailand Franchise Program, is organized by the Thailand-U.S. Business Council and the U.S.-Thailand Business Council. The program is supported by the International Trade Administration (ITA), U.S. Department of Commerce, and the International Franchise Association (IFA). The program is designed to link American Franchisors with potential Thai Franchisees as they develop opportunities in one of the world’s fastest growing markets. Participating franchises in the program include successful food related and service-based franchises from the U.S.

Make an appointment to meet with the Franchisors and learn more about this event by contacting Khun Wanotai/ Khun Kornshulee at Thailand-U.S. Business Council, Tel: 02-636 9020-5 or E-mail: info@ tusbc.org. Updated information about the U.S.-Thailand Franchise Program can also be found at www.USTBC franchise.com


Future exports expected to reach more than $100 billion

A concentrated effort on exporting to more developing countries, coupled with the various free trade agreements signed by the country, could aid Thailand’s exports to reach soaring heights, according to Commerce Minister Adisai Bhodaramik. “The government’s goal over the next three to four years is to reach in excess of $100 billion in exports,” he said.

Exports during the first seven months of the year stood at $44.6 billion, a jump of 18.1 percent from the same period last year and the ministry expects exports to reach $76 billion for the whole year, one of the highest amounts ever recorded in the country.

Adisai said Thailand will aim at penetrating all markets in order to achieve this target, but will focus more on developing countries not explored by Thai exporters in the past.

“We are also looking at markets such as China, India and Bangladesh. In some cases the competition is relatively lower than those seen in Europe,” he said.

Official free trade talks with the US and the European Union are expected to begin by the end of the year and Thailand is also looking for a free trade pact with Australia and Japan. (TNA)


‘Mobile units’ to boost Middle East trade

Government trade representatives are preparing to establish ‘mobile units’ bringing together private and public sector forces in a bid to increase trade and investment in the Middle East and Iraq.

Speaking at a seminar on trade and investment in the Middle East and Iraq, organized by the Thai Chamber of Commerce, Kornphot Assawinwichit said that the Ministry of Foreign Affairs, Ministry of Commerce and the Thai Chamber of Commerce had entered into discussions with the private sector on the establishment of mobile units to facilitate private sector business in the Middle East. “Trade and investment opportunities for Thai businesspeople in Iraq are still high and Thai businesspeople are continually working with businesspeople in that region,” he said.

Sanchat Thephassadin Na Ayutthaya, director-general of the Ministry of Foreign Affairs’ South Asia, Africa and Middle East division revealed that the government had a five-pronged strategy for opening up new markets in the Middle East and Iraq. Regarding the mobile units, Sanchat said, “The units will require entrepreneurs with sound marketing vision to assess investment channels and to facilitate operations for Thai businesspeople, with full financial backing from the government. Businesspeople are urged to work together to draw up proposals for the units. In addition, the government is backing the Thai construction industry in these areas as well as establishing a Thai goods exhibition center in Iraq and constructing accommodation for Thai students.” (TNA)


Former finance minister agrees with current policy of budget deficit

Speaking at a seminar on “Managing the Recovery: Challenge Ahead”, former finance minister Veerapong Ramangkul said indicators showed the Thai economy had already recovered. “The higher-than-targeted tax collection reflects more profits earned by companies. The budget deficit has declined while the current account balance is in surplus and the international reserve has increased,” he said.

He urged the government not worry about deflation because people want to invest under the current circumstances. He also said the value added tax (VAT) rate should stay at 7 percent to encourage economic growth.

Veerapong voiced concern about the improper movement of local interest rates, saying some commercial banks reduced the rates for speculative purposes. On the currency exchange rate, he suggested, the Bank of Thailand try to keep the baht stable and not allow it to further strengthen or it would affect exports and the overall economy. (TNA)