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Bang Chak to
offer ‘gasohol 91’
One of the country’s leading petrol retailers is to
begin offering ‘gasohol 91’, a mixture of ethanol and benzene, in a
drive to promote alternative fuel. A source from Bang Chak Petroleum Plc
revealed that ‘gasohol 91’ would be piloted in nine Bangkok petrol
stations at the end of 2004, or the beginning of 2005.
By 2006, the company hopes that ‘gasohol 91’ will
account for 53 percent of its benzene 91 sales nationwide, and that it will
come to replace ordinary benzene 91 by 2007. Bang Chak already offers
‘gasohol 95’ as an alternative to straight benzene 95, and plans to
offer it at 260 petrol stations by the end of the year.
The government has been trying to promote gasohol as an
alternative fuel to reduce the country’s reliance on imported fossil
fuels. Ethanol, one of the principle ingredients, can be sourced
domestically. (TNA)
Drought damage mounting
in Thailand’s northeast
The drought in Thailand’s northeast has caused damage
to crops and agricultural products estimated to be worth more than a billion
baht. More than half a million rai (2.5 rai = 1 acre) of farmland and fruit
plantations has been damaged by water shortage in Roi Et province, according
to deputy provincial governor Amorn Wetchakarnwitthaya. More than 200,000
rai of farmland has been successfully recovered through the timely
distribution of water, he said.
Meanwhile, over 500 farmers from seven provinces in the
country’s lower northeast attended a workshop hosted by the chairman of
the Senate panel on agriculture affairs to discuss possible solutions to the
drought. Many of the participants complained that bureaucratic red-tape was
partly to blame for the delay in emergency water supplies being provided to
those in need.
A proposal for an amendment to the existing government
regulations to authorize the Ministry of Natural Resources and Environment
to handle all emergency drought relief and assistance was made. Under the
current legislation, it is the role of the Ministry of Interior. (TNA)
New legislation
to stamp out CD piracy
The Ministry of Commerce is preparing legislation which
the government hopes will root out CD piracy, following widespread reports
that Thailand is increasingly being targeted by CD counterfeiters from China
and Taiwan. Describing CD piracy as a problem of national importance, deputy
commerce minister Anutin Charnvirakul stated that the Department of
Intellectual Property was liaising with the private sector to launch a
sustained crackdown on counterfeiting operations.
Anutin said that recent government efforts had
considerably reduced the number of counterfeited CDs being produced, but
conceded that more work needed to be done in order to minimize piracy.
The Department of Intellectual Property hopes to bring
about an 80 percent reduction in the number of counterfeit CDs being
produced in 12 specially targeted ‘red areas’ nationwide. Although in
most areas this target has been achieved, the department now hopes to
educate the public about the importance of copyright legislation to help
prevent the sale of counterfeit goods.
But Thienchai Pinwiset, legal services director for the
Motion Picture Association (Thailand), pointed to widespread counterfeiting
operations despite more stringent anti-piracy measures. Last year, copyright
owners lost an estimated US$28 million as a result of CD counterfeiting in
Thailand. The problem, according to Thienchai, is no longer one of price, as
the price of legal CDs has been reduced in an attempt to stamp out piracy.
Consumers, however, continue to prefer pirated CDs as they appear before the
legal copies and are uncensored.
Thienchai also pointed to legal loopholes which allowed
counterfeiters from countries where piracy rates were high, such as China
and Taiwan, to invest in Thailand. He said that more than 60 percent of Thai
counterfeiting operations were owned by investors from these two countries.
(TNA)
Economy hedged in by risk factors, research center warns
The Thai economy is likely to grow by only 5.5 percent
next year due to volatility in the world’s financial markets and the
weakening of the US dollar, a leading research center had warned. The
Kasikorn Research Center (KRC) said that growth of 6 percent in the third
quarter of 2004 was likely to plummet to 5.5 percent by the final quarter,
down from a high of 6.4 percent during the first half of the year. This
would put economic growth for the year as a whole at 6.0 percent, compared
to 6.8 percent in 2003.
The leading think tank attributed the slowdown to a brake
on private sector consumption and investment, warning that this situation
looked set to continue into 2005. Listing risk factors for the coming year,
it said that the weakening of consumer and investor confidence would be
compounded by a number of external risks, notably the volatility of the
global financial market.
KRC said that economists should keep an eye on regional
economies, noting that a cause for concern was whether or not the Chinese
government could achieve a soft landing for an economy in danger of
overheating. It said that government spending obligations laid out in its
election manifesto would play an important role in determining domestic
economic trends, as would the government’s commitment to achieving a
balanced budget next year, and warned that these commitments would put
limitations on the government’s fiscal policies. (TNA)
New tax policies to emphasise social development
The Ministry of Finance has announced a change of tack in
its tax policies, revealing a new focus on social development, while urging
the private sector to participate more in helping disadvantaged members of
society.
The new policies were announced by Suparut Kawatkul, the
permanent secretary for finance, during a seminar held for members of the
Federation of Thai Industries (FTI).
Suparut said that over the next four years the government
will shift its focus towards using tax revenue for social development, with
the private sector playing an integral role in helping social problems
through a series of joint public-private sector committees.
“By pulling in the private sector, we will boost the
efficiency of tax collection”, the permanent secretary said. Expressing
hope that the private sector would work with the government on social and
environmental issues, he said that companies working on social projects
would receive attractive tax concessions. A company investing in a public
park or library, for instance, might face tax reductions of as much as 50
percent, he said.
The Revenue Department is currently studying ways in
which tax revenue can be used to toward this goal. (TNA)
Thai PM to discuss the economy with financial experts
Representatives of three renowned private economic
institutions will meet to discuss Thailand’s economy and the
government’s plans for 2005 with Prime Minister Thaksin Shinawatra.
Members of Federation of Thai Industries (FTI), Board of
Trade and the Thai Bankers Association will meet with the prime minister to
discuss the country’s industrial, trade and financial performance during
2004 and the projections for 2005, the FTI deputy chief, Kiattipong
Noijaiboon, said. Government officials hope these discussions will help the
government’s economic strategy and policy for the coming year.
The FTI has forecast industrial growth for 2005 of
between 9-12%, with significant growth in the agricultural processing
industry, automobiles and parts, petrochemical, electrical and electronics,
construction, petroleum refinery and paper and pulp.
Exports in 2005 are expected to grow at around the same
level as in 2004, according to the FTI’s projection. Industrial growth
though will depend on the government’s policies for boosting the
competitiveness of businesses. The reduction and adjustment of customs
duties and the opening of new markets under the government’s free trade
area framework agreements, are expected to improve Thailand’s position.
Other factors, including launching a ‘One Stop Service’ would
significantly improve the situation for both importers and exporters.
However, Thailand’s industrial competitiveness could be
adversely affected by a possible increase in diesel oil prices and a further
appreciation of the baht against the dollar, the FTI warned. (TNA)
Six Mekong countries cooperate
on alternative energy
Six countries along the Mekong River have agreed to
promote the use of alternative energy, including hydro-electricity, ethanol
and bio-diesel. Director of the Ministry of Energy’s Energy Planning
Analysis Bureau, Chavalit Pichalai said China, Laos, Myanmar, Cambodia,
Vietnam and Thailand agreed at a meeting recently held in Bangkok, on ways
to trade electricity, to construct an electricity transmission system and to
set technical joint standards which will benefit all the countries.
Under the scheme, the countries would seek private funds
to help fund the program. This includes surveys for additional natural gas
and coal. The participants also agreed to boost the supply of electricity to
remote areas in the region. The six countries plan to exchange power across
their borders where possible.
Delegates from Laos, China and Thailand also held
discussions with representatives of the Asian Development Bank and the World
Bank on a feasibility study on how electricity can be supplied from China to
Thailand through a transmission line installed across Laos. The World
Bank-funded feasibility study is expected to take a year.
Thailand plans to buy 3,000 MWs of electricity from
China. Participants at the meeting also agreed to the Thai proposal to
extend cooperation in other energy-related fields, including alternative
energy. This covers the production and use of ethanol and bio-diesel to help
reduce pollution. (TNA)
Government beefs up food quality control
The Ministry of Public Health has strengthened the
country’s food quality controls. It has issued new standards for cooking
oil used to cook deep-fry food in an effort to prevent the use of old and
contaminated oil. Under the new regulations, only oil with a polar substance
lower than 25% of its total weight can be used for cooking. Any restaurants
or food vendors using oil with a polar substance which exceeds the permitted
ratio will be fined up to 50,000 baht.
Public Health Minister Sudarat Keyuraphan has signed on
the regulation setting out the new standards, which was effective
retroactively as of November 6. “Government surveys show large numbers of
Bangkok’s restaurants, fast food shops and food vendors use old oil with a
high ratio of polar substance,” Sudarat said. The new regulations will
change the situation within months, she promised.
The public health ministry will send out teams in the
near future to check the cooking oil used by food vendors in Bangkok. This
will then be extended to the provinces. The government has also warned Thais
to throw away cooking oil that had been used to fry food more than three
times.
The polar substance in cooking oil is increased during
repeated use of the oil for cooking, the Food and Drugs Administration (FDA)’s
secretary general, Prof. Dr. Pakdee Pothisiri, stated. He added that
repeated use of old oil will contaminate food cooked in it increasing the
risk of disease and cancer. (TNA)
Thailand wins prawn concessions from EU
Thailand appears to have won its battle with the European
Union (EU) on the restoration of preferential import tariffs on Thai prawns,
following months of heated discussions. The victory is in large part thanks
to Thai Airways International Public Company Limited, which has made the
restoration of generalized system of preferences (GSP) status on Thai prawns
a condition of its purchase of European Airbus jets for its new fleet.
Government spokesman Jakrapob Penkair said that
negotiations over the past weeks had won over European ministers. The
decision will now be forwarded to the European Commission for official
endorsement. Further negotiations will take place on the purchase of Airbus
planes, as well as on the export of fresh Thai chicken to the EU.
Thai prawn farmers have launched heavy protests against
the EU’s decision to revoke Thailand’s GSP status in 2000, which caused
a devastating drop in Thailand’s share of the EU prawn market. Prawn
imports from most other countries in the region are already covered by GSP
rules. (TNA)
Gold market likely to be
sluggish over New Year
Gold traders are predicting a sluggish market over the
New Year festival with buyers deterred by high prices. Chitti Tangsithipakdi,
president of the Gold Trading Association, said gold prices were likely to
move in a narrow range over the New Year, and not fluctuate as much as in
past festival times. It is expected that the retail price of gold will move
within a range of about 100 baht.
At present, Chitti said, a traditional gold bar was
bought for 8,400 baht and sold for 8,500 baht. Gold ornaments sold for
around 8,700 baht, and were bought for about 8,320 baht. He said gold prices
in the world market had also moved in a narrow range because most gold
traders slowed their activities on the eve of the Christmas and New Year
festivals.
However, Chitti said, global gold prices are likely to
rise to about US$480 an ounce in the first quarter of next year from the
current figure of around US$450 because of the weakening US dollar. “Gold
traders must pay special attention to currency rates next year as the
strengthening of the baht has an influence on the gold price movement.
Should the baht stay at around 40 to the dollar; the one-baht weight of gold
ornaments will be around 8,800 baht. But if it strengthens to 39 to the
dollar, gold prices would drop to around 8,500 baht,” he said.
New Japanese technology
to produce ethanol
A Japanese scientist has unveiled the latest technology
to produce ethanol and bio-diesel to help replace the use of fossil fuels in
the near future.
The new technology aims to extract fuel from biochemical
substances found in wood, Prof. Dr. Shiro Saka of Kyoto University’s
Department of Socio-environment Energy Science told an international meeting
on “Energy and sustainable environment” recently held in Hua Hin. The
Japanese scientist told more than 300 international energy experts that his
department was studying how to extract lignocelluloses - a biochemical
substance found in wood which can be used to produce ethanol.
The research project also plans to study commercial
methods of producing the substance. If the project succeeds, Japan should be
able to produce more than eight billion liters of high grade ethanol a year.
New technology, known as “catalyst-free method” can
also produce bio-diesel, by turning used vegetables or animal oil into
bio-diesel fuel, Prof. Dr. Saka also told the meeting.
Japan has stepped up its efforts to find alternative
fuels to replace carbon-based fossil fuel to help reduce the green house
effects caused by the emission of gases from burning of fossil fuel.
According to the Kyoto Pact, industrial countries in the European Union (EU)
and Japan must reduce their carbon dioxide emissions by 6% by 2010.
“Currently, the Japanese government has tested the use
of E3, ethanol mixed with benzene in the ratio of 3 in 100. Further studies
are aimed at increasing the ethanol mixture to 10%,” Prof. Dr. Saka said.
However, the E10 will have to wait until the year 2020
when automobile manufacturers alter their engines and make them compatible
with E10. (TNA)
Siam Best signs with
K-Tech Construction
Two of the area’s top real estate development companies
have formed an association to work together to develop prestige property
developments here.
The contract formally signed last week involves high
profile local developer Siam Best Enterprises Co., Ltd. and Bangkok-based
construction giant K-Tech Construction Public Company Limited.
Signing
the contract are Bob Kevorkian - chairman K-tech, Mayor Niran
Wattanasartsathorn, Bruno Pingel, Rattana Khiaophet, Michael Suttie and
Vichu Tanthasiri (director & legal advisor).
K-Tech has been engaged to construct View Talay Residence
condominium buildings 3 and 4 at Jomtien Beach.
View Talay Villas is the flagship development of Siam
Best Enterprises and sales and marketing agent Pattaya Properties Co., Ltd.
K-Tech has successfully completed a wide variety of major
projects in Bangkok across the industrial and commercial spectrum.
At the contract signing, representatives of Siam Best and
K-Tech said they understand the need for flexibility and the use of the
latest available technology in a world where local authorities are enforcing
strict regulatory and environmental considerations.
Through the new relationship, both companies hope to
largely eliminate or greatly reduce frustrating delays in construction that
has dogged Pattaya and Jomtien Beach since the property boom started.
The managing director of Siam Best, Bruno Pingel said,
“Both our companies share the same philosophy that employees are the
cornerstone of ultimate success and customer satisfaction.”
Bruno added, “Like K-Tech we have always placed great significance on
the principles of outstanding quality and innovation. The teaming of our
highly experienced staff and K-Tech’s expertise means a fusion of highly
skilled tradesmen which is a vital ingredient in property development and
absolutely essential as we focus on the future and maintaining the highest
standards that buyers now expect.”
Thailand set for influx of foreign investment
Thailand is set to receive a new wave of foreign direct
investment from the end of this year onwards, the governor of the Bank of
Thailand (BOT) M.R. Pridiyathorn Devakula forecast recently while denying
that the recent appreciation of the baht was a cause for concern.
Pridiyathorn said that while the growth of foreign direct
investment (FDI) had been relatively sluggish in the wake of the economic
crisis of 1997, Thailand’s growing industrial production capacity usage
was likely to lead to a surge in FDI over the coming months. “Based on the
data we have, we expect that from the end of this year to the beginning of
next year, the rate of production capacity usage will grow to the extent
that the private sector will have to engage in further investment. When this
point is reached, we will begin to see an influx of foreign direct
investment”, he said.
The United Nations Conference on Trade and Development (UNCTAD)
has also forecast promising FDI trends for Thailand over the next four
years, with Thailand forming the world’s fourth most attractive magnet for
FDI after China, India and the US. Pridiyathorn said that in response to the
expected influx of FDI, the BOT would ensure the stability of financial
institutions.
Mindful of the fact that in the year 2000 the financial
institution system faced a profit to asset ratio of minus 1.7, the BOT
governor said even though this ratio had now shot into the black to stand at
plus 1.5, the central bank will continue to work to introduce international
financial standards to ensure sustainable fiscal strength.
But he dismissed suggestions that the recent appreciation
of the baht could prove the economy’s undoing, saying that the Thai
currency remains at a level which facilitates national competitiveness and
exports. While promising to closely monitor the baht, he ruled out the
possibility of intervention, saying that it was unnecessary. (TNA)
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