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Indonesia-Malaysia-Thailand sign joint rubber pact
Thailand has joined hands with Indonesia and Malaysia and
signed an agreement paving the way for the establishment of a rubber
partnership company, which all three countries hope will ensure that the
price of natural rubber does not fall below 30 baht.
Following the recent Association of Southeast Asian
Nations (ASEAN) leadership summit on the Indonesian island of Bali,
Thailand’s Agriculture and Cooperatives Minister Sora-at Klinpratoom
signed the deal with Indonesia’s Industry and Trade Minister and
Malaysia’s Primary Industries Minister. The signing was the culmination of
several years of discussions, with an initial agreement made between the
three countries two years ago to boost their global bargaining power.
The three countries will control up to 80 percent share
of the global rubber market, and the initial investment in the company will
run to 2 million US dollars, with the headquarters based in Thailand.
Thailand will also be the largest shareholder, with
shareholder ratio of Thailand, Indonesia and Malaysia being 2.0, 1.5 and 1.0
respectively. The company will be responsible for trade, stock and market
mechanisms, but will not seek to intervene in the market. (TNA)
Interest rates will stay low for at
least 18 months says BOT governor
Bank of Thailand (BOT) Governor M.R. Pridiyathorn
Devakula has projected local interest rates will continue to stay low for at
least 18 months.
Pridiyathorn said, “Private investment and consumption
has played a key role in boosting economic growth. Private investment
dropped to 14% of the country’s gross domestic product (GDP), from 25%
before the economic crisis in mid 1997. It is necessary to keep the interest
rates low to stimulate the private investment and consumption. We expect the
rates will stay low for at least a year and a half until investment
continues to increase to an acceptable level.” (TNA)
Free organic fertilizer to be distributed to 2 million farmers
The Land Development Department is preparing to
distribute free organic fertilizer to two million farming households as part
of the government’s campaign to promote 2004 as a year for food safety and
organic farming.
The department’s Director-General Ard Somrang said,
“The fertilizer will reduce farmers’ reliance on chemicals and improve
the quality of their soil so they can move over to organic agriculture and
increase their incomes.”
The organic fertilizer developed by the department will
not only increase yields by 10 percent and cut costs by another 10 percent,
but could also cut the use of chemicals by 30 percent. (TNA)
Higher investment will
help sustain growth: KRC
Overall investment in the country is likely to grow
13-15% next year, which could help sustain the economic growth, according to
a report just put out by KASIKORN Research Center (KRC). The think tank
reported that aside from exports, investment would play a vital role in
boosting the economic expansion in 2003-2004.
The report projected that private investment will
continue to increase next year, boosted by impressive operating results in
the business sector, higher production capacity utilization, and inflow of
foreign direct investment. As well, the improved fiscal position should push
up public investment, which had contracted since 1998.
The research center warned, however, that government
should maintain the quality of investment and the stability of the economy.
It urged caution about speculation in assets, particularly stocks and
property, to avoid a repetition of the economic crisis in 1997. (TNA)
Chinese business giant to invest in Thai fabric industry
China World Best Group to create new industrial city in Rayong Province
Industry Minister Somsak Thepsuthin recently revealed
that one of China’s largest state-run business groups has announced that
it will boost its investment in Thailand’s fabric industry, and has also
expressed an interest in investing in herbal products as part of a broader
policy to use Thailand as an ally in penetrating the global marketplace.
Speaking after talks with Zsou Yucheng, president of
China World Best Group, Somsak said that the company would increase its
investment in both the fabric industry and the medicine manufacturing
sector, adding to its current interests in five projects in the Rochana
Industrial Estate in the eastern province of Rayong. “The company intends
to create its own industrial city, with investment of around 150 million US
dollars,” Somsak said.
China World Best Group, run by the Chinese government, is
China’s largest player in the fabric and medical industries. Mr. Zsou
said, “We chose Thailand as a production base due to the good relationship
between our two countries.”
In the medical sector, the company has joined with the
Ministry of Public Health in the investment in a plant producing herbal
products for use as vaccines and medicines to protect against the HIV virus.
The company indicated that it wants to boost market recognition of Thai
herbs, using Chinese extraction technology and Thailand’s expertise in
cultivation. (TNA)
2003 Motor Expo expected to boost car sales to record high
Total sales of automobiles are very likely to break a
record this year, given the industry’s recovery and continued economic
growth, according to an industry executive.
Kwanchai Papaspong, Chairman of International Media,
organizer of 2003 Motor Expo, said, “The auto industry had recovered along
with the economic growth. With the rejuvenation, total sales of vehicles
this year are projected to hit a record high.”
Kwanchai added, “This year, sales are expected to be
around 720,000 units. Of this, 520,000 units are predicted to be sold
locally, and the remaining 200,000 will be exported.”
The 2003 Motor Expo will be held during November 29th
through December 10th at the Impact Exhibition Hall, Muang Thong Thani in
Nonthaburi Province, with 35 automakers and importers expected to
participate. It is projected that the exhibition will draw more than 1.6
million visitors, up from 1.5 million last year. (TNA)
IMF suggestion on inflation brushed aside
The Bank of Thailand (BOT) and the National Economic and
Social Development Board (NESDB) have brushed aside a suggestion by the
International Monetary Fund (IMF) that the country raise the target
inflation rate from zero to prevent possible deflation.
Previously, the IMF had projected the Thai economy would
continue to grow this year. However, it said the government should closely
supervise the economic development since the financial and business sectors
remained engulfed with non- performing loans.
The IMF also suggested that the BOT consider increasing
the target minimum inflation rate from zero to stand in positive territory
because the inflation rate, if allowed to stay very low, would put the
economy under the pressure of deflation should there be any crisis.
BOT’s Governor M.R. Pridiyathorn Devakula said still
saw no need for the country to raise the target inflation rate.
Chakramon Phasukavanich, NESDB’s Secretary-General,
said that he did not think the Thai economy was on the path to deflation,
adding that inflation would increase automatically when the economy
continued to grow. “We should not accelerate consumption in an excessive
manner. The consumption will grow naturally when the economy expands,” he
concluded. (TNA)
BOI road shows in Ireland and Finland spark confidence
The Secretary-General of the Board of Investment (BOI) of
Thailand, Somphong Wanapha, has expressed confidence that the international
business community’s positive outlook on Thailand’s economic future will
lead to increased investment in the kingdom.
Speaking of the success of BOI road shows in Ireland and
Finland, Somphong said that investors from both countries were interested in
investment in Thailand, particularly in the technology and
telecommunications sectors.
“Thailand needs investment in research and development.
Admittedly investment figures have not reached the heady levels of the
pre-crisis period of the early 1990s, but present investment levels of
200-300 billion baht are appropriate for the current economic climate,”
Somphong said. (TNA)
Thailand’s toy exports soaring
The Thai toy industry is booming, with an increase of
10-12 percent in export sales during the first half of this year. Pichit
Laosunthorn, Chairman of the Thai Toy Industry Association, said that
Thailand’s maximum toy production capacity in the first half of this year
was still inadequate to serve surging demand placed by overseas customers,
particularly those in the United States.
“Although China is the major toy exporter, Thailand’s
toy business stays competitive due to its higher quality products. Local toy
manufacturers have improved their production and efficiency to introduce new
products with unique designs and now meet international safety standards.
Last year, toy exports earned the country 9.2 billion
baht, and this year the kingdom is expected to earn up to 9.8 billion baht
from its toy exports. (TNA)
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