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BOI proposal to boost industrial competitiveness
The state-run Board of Investment of Thailand (BOI) has
proposed to its board to grant promotional privileges to corporations which
can boost competitiveness, or will be able to solve industrial problems.
At the meeting, sources said the BOI board will consider
investment projects which do not create direct profits such as investment on
research and development (R&D), improvement of machinery technology, and
development of alternative energy and ways to solve environmental problems.
Enterprises which have already invested in these areas
and have not yet received promotional privileges, or their privileges have
already expired, can apply so that they can be exempted from import tariffs
and corporate tax, suggested the sources. (TNA)
Unithai to build new cargo ship for NP Marine Co. Ltd.
Suchada Tupchai
Unithai Shipyard and Engineering Ltd in Laem Chabang held
a keel-laying ceremony on December 16 to mark the commencement of work on a
new 150TEU (Twenty-foot Equivalent Unit) containership for NP Marine Co. The
ceremony was held at the construction site at Unithai Shipyard.
Nattapop
Rattanasuwantawee (pressing the knob), Sivavong Changkasiri (2nd from left)
and celebrities attend the foundation stone ceremony.
Sivavong Changkasiri, chairman of the Unithai Group and
Nattapop Rattanasuwantawee, CEO of NP Marine Co. Ltd. from the SC Group,
presided over the ceremony.
Unithai Shipyard and Engineering, the largest shipyard in
Thailand, will build the container vessel for NP Marine Co under Lloyds
Classification survey to guarantee that the ship is constructed to the
required quality standards.
Sivavong Changkasiri said, “I am happy and proud that
the NP Marine administrators placed their confidence in our company to
design and build this ship. The Unithai shipyard is the biggest shipyard in
Thailand, and has a long track record in special techniques for each ship
they have built.”
Nattapop Rattanasuwantawee added that he admires Unithai
Shipyard and Engineering Ltd. because they expertly manage their resources
to reach their goals. “Their most important goal is to support the
country’s main policy and to stress logistics. The SC Group has worked in
logistics and petrochemicals for nearly 20 years, and has actively promoted
commercial partnerships. One partnership is with the Unithai Shipyard. This
ship will be the first one of its kind built by Unithai, and will be their
biggest achievement here to date.”
The 2750dwt containership, specially designed to serve Thailand’s
coastal trade, is expected to be completed and delivered in October 2005.
PTT not worried about takeover of Q8 by Petronas
PTT Public Company Limited (PTT) is not concerned over a
planned takeover of Kuwait-based Q8 petrol stations in Thailand by Petronas,
Malaysia’s national oil firm, as it believes that the lingering fierce
competition in the business will benefit local consumers, PTT’s senior
executive vice president, Apisit Rujikeatkamjorn, said.
Apisit stated that market margin in Thailand’s oil
business is about one baht per liter, which is the lowest in the world,
compared to around 2-3 baht a liter overseas. Competition in the local oil
business this year is expected to remain fierce, and this would benefit
consumers, he said, adding that it is difficult to sell only oil in Thailand
because of its low profit. Therefore, oil firms will have to diversify their
businesses in order to survive.
Apisit said he believed the reason that Petronas had
decided to purchase the Q8 petrol station outlets was because the Malaysian
oil firm wanted to spread its wings in Thailand.
Petronas, at present, has a few petrol stations in
Thailand. Petronas has jointly invested with PTT in a natural gas venture
under the Joint Development Area (JDA) in southern Thailand. Thailand’s
formerly state-own oil firm, PTT, earlier expressed its interest in buying
the Q8 outlets, but negotiations have reportedly failed.
Meanwhile, a Kuwaiti news agency quoted the chairman of
Kuwait Petroleum International Co., or Q8, as saying recently that it had
sold its business in Thailand to Petronas after being informed that the
business did not make profit. Q8 petrol stations were first established in
Thailand in 1990, and to date the company has 117 outlets across the
kingdom. (TNA)
TAMC solves 700 billion baht of NPLs in past 3 years
The Thai Asset Management Corporation (TAMC) has been
able to solve some 98% of the total non-performing loans (NPLs) suffered by
the country’s debt-ridden firms over the past three years, worth 700
billion baht, according to the TAMC managing director, Somchet Musirilert.
He revealed that 70% of these firms are now able to restructure their debts
and perform their businesses normally.
Many medium-sized enterprises are still facing debt
restructuring problems, while TAMC will help small ones in the near future.
TAMC will continue to move on solving problems on NPLs through holding
discussions with entrepreneurs who are facing the cruxes.
Somchet urged the debt-ridden entrepreneurs who need help
through debt restructuring procedures to contact his office directly, not
through any middlemen. (TNA)
Thais saving less
for retirement security
Thai people have paid less attention to saving prior to
retirement because of lower return rates offered by financial institutions,
according to a leading fund manager.
Speaking at a seminar on “Saving for Retirement,”
Kampol Asawakulchai, senior vice president of the National Asset Management
Co. said a survey found Thai people had shown less interest in saving since
returns particularly on deposits with commercial banks or financial
institutions had decreased.
Most are indifferent to depositing money for saving, but
turn to pay more attention to health care. It results in the post-retirement
life span lengthening more than 20 years.
Kampol said women and men currently had an average life
span of 84 and 80 years. So, the spending on living after retirement would
average 60% of saving revenue, excluding that of medical treatment. In this
scenario, retirees must deliberate carefully whether their saving revenue
will be sufficient for the post-retirement living.
“With the longer life span and higher living costs in
the future, Thai people should not expect the government or their
descendants will be able to take care of them upon retirement. They must
adjust their attitude because in the future the cost of living will increase
so much that their descendants will not be in a position to look after
parents.”
As a result, Kampol suggested young people or those who
still have a working age of 20 years left pay more attention to investment
or saving so that they would be in financial trouble upon retirement. He
said people of the current generation should save money for at least 20
years or more. Should they opt to save for only 10 years, they would have
insufficient saving for spending on post-retirement living for 20 years.
(TNA)
‘Healthy Thailand’ policy placed on national agenda
The government launched its ‘Healthy Thailand’ on
December 19 with a campaign with a pledge to put the health of the nation on
the national agenda, declaring a target of boosting children’s IQ to 100
and life expectancy to 80 years.
Announcing the campaign at a rally in Bangkok’s Lumpini
Park, Prime Minister Thaksin Shinawatra pledged to ensure the transformation
of the nation into ‘Healthy Thailand’ by the year 2017, when His Majesty
the King will celebrate his 90th birthday.
Witnessed by provincial governors and senior ministerial
representatives, the prime minister officially signed the declaration onto
the national agenda, describing it as a New Year’s present for
Thailand’s 63 million-strong population.
The 17-point campaign is focused on the promotion of good
health, warm families, strong society, and a reduction in infant and
maternal mortality, the boosting of average child IQ levels to at least 100,
opportunities for lifelong education and an increase in average life
expectancy from 72 years to 80.
In terms of specific diseases, the campaign will target
AIDS, cancer, heart disease, high blood pressure, dengue fever, mouth
disease and diabetes.
All Thais over the age of 6 years will be encouraged to
take regular exercise, and consume safe and healthy food. Equally, the
government will endeavor to ensure that all Thais live in a society free
from crime and violence, a land of love, unity, and care, based on religious
and cultural principles.
Listing government policies to bring about the health of
the nation, Thaksin spoke of the universal healthcare scheme, the war on
drugs, the war on poverty and education reform. However, he noted that the
government alone could not ensure a healthy nation, which also depended on
the participation of all sectors of society, including the private sector
and ordinary individuals from a village or community level upwards.
The prime minister, who demonstrated his commitment to
the campaign by engaging in a mass aerobics session with a crowd of over
10,000 gathered in the park, said that ‘Healthy Thailand’ would help the
nation’s development. Human resources, he said, were the most expensive of
all.
Stressing the threefold goal of good physical health,
good mental and emotional health, and good knowledge and education, he said
that knowledge was the key to the new society.
Next year Thailand will host the World Health
Organization’s (WHO) meeting on the promotion of global health, an event
which the government will capitalize on when conducting the ‘Healthy
Thailand’ campaign.
Average life expectancy in Thailand has risen from 59.9
years for men and 62 years for women in 1965 to 69.9 years and 74.9 years
respectively by 2001. However, during this period Thais have been
increasingly prone to conditions such as heart disease, which in 2002 was
the third highest cause of death in Thailand after cancer and accidents.
(TNA)
Jomtien Park Villas auctioned off at grand event
On Sunday December 19, the Royal Cliff Hotel hosted the
Grand Auction of Jomtien Park Villas, the magnificent project developed by
One Stop Real Estate and marketed by MGI Global Auctions.
Auctioneers
from MGI Global Auctions take bids at the Grand Auction of Jomtien Park
Villas.
This was the first time in Pattaya that a luxury
residential development was offered at an auction where the majority of the
properties were sold without a minimum starting bid and without a reserve,
regardless of price. A fact that many skeptics did not believe until they
saw it happening with their own eyes.
Ninety-eight qualified bidders had pre-registered at the
Auction Information Office prior to the auction date. Approximately 15 more
chose to register at the hotel on auction day.
During the inspection period the project received a total
of 591 visitors (actually more because a few, especially at the beginning,
went in without leaving their details with the auction staff). 116 of those
visitors went back to see the beautiful show villas more than one time. A
few of them came every single day of the last week of the inspection period
to see the homes at different times of the day.
A particularly pleasant event during the inspection
period was a cocktail party, held on the evening of December 10, where 204
guests enjoyed a wonderful atmosphere in the four show villas. The majority
of the people concentrated in the Van Gogh home, which proved spacious even
for such a large crowd. Everybody enjoyed meeting the developer and the
auctioneers.
A classical music trio performed on the patio next to the
swimming pool. All guests commented on the impressive display of the 4 Show
Villas at night and complimented the hosts for the excellent catering that
was provided by the Art Caf้ and personally supervised by its gracious
owner Jo Stetten.
At the auction the crowd enjoyed what almost everyone
agreed was the most impressive and professional display for the sale of real
estate that they had ever seen.
Fourteen Villas were offered and sold, without a minimum
starting bid and regardless of price to successful bidders who were
delighted with their purchases.
Observers agreed that the prices were extremely fair. The
developer said what developers always say after the auctions: “We would
have liked to get a bit more money, but we are satisfied with the price and
extremely happy about having sold 14 homes in one single day.”
The prices at the auction ranged from 5,800,000 baht to
12,100,000 baht. The winning bidders will have to pay a 3% buyers premium on
top of those prices, which is a standard practice at any auction (auction
companies like Christie’s and Sotheby’s charge a minimum of 10%).
The remaining 7 villas have already been put on the
market at prices slightly higher, but still extremely good value compared
with any other project in Pattaya and Jomtien. At the time of writing this
report, one more has been sold and only the last six are available.
The developer is also offering a new opportunity for
those interested buyers who would like to have one of the floor plans that
were completely sold-out at the auction (Picasso, Gaugin, Renoir and Van
Gogh). Some of the projected remaining homes can be converted to adapt them
to become any of this four show villas.
For more information, contact tel. (038) 303 871-5, fax (038) 373 794
email: auction @realesthai.com www. mgiglobalauctions.com
THAI assistance for those affected by Southern tsunami
THAI’s president, Kanok Abhiradee, along with members
of management and employees packed shipments of emergency supplies, food,
water, and clothing donated by the general public, the entertainment
industry, THAI employees, THAI Employees Association, and the THAI Employees
Union. The emergency aid shipment was transported on board THAI’s regular
flights to Phuket. Shipments for Krabi were sent on regular Bangkok-Krabi
flights.
People wishing to make donations in the form of clothes,
dry or canned food, drinking water, and necessary personal items for those
affected by the tidal wave in Southern Thailand may contact THAI’s
Security Office on a 24 hour basis or call tel. (02) 545-2535 to 7 during
business hours. Donors are asked to provide an itemized list of the goods
donated on all boxes in order to facilitate separation and categorizing of
items.
BOT upbeat about deposit
insurance efficiency
The deposit supervision mechanism will strengthen when
the deposit insurance institute is established and begins to function,
according to the Bank of Thailand.
Tarisa Wattanagase, deputy governor of BOT in charge of
the Financial Institution Stability Group, said the deposit insurance
institute bill was in the process of being deliberated by the Judicial
Council before being forwarded to the cabinet for consideration. The bill
will go before the House of Representatives when it got approval from the
new cabinet to be formed following the general election early next year. She
said the institute would be established within 180 days when the bill won
approval from the House of Representatives.
The institute will be an independent organization
succeeding the Financial Institution Development Fund in guaranteeing
deposits. Commercial banks will shift their contribution from the Fund to
the institute.
It will have to collaborate closely with the central bank
to monitor and supervise the status of financial institutions and help solve
any difficulties they had experienced.
The deputy BOT chief said the establishment of the
institute would help enhance efficiency of deposit supervision mechanism.
Depositors will be encouraged to pay attention to their deposits. The
complete guarantee of deposits has allowed depositors ignore monitoring
their own accounts and not bother to consider the stability of individual
financial institutions, she said, adding when any problems occurred,
people’s tax money was brought in to solve them. (TNA)
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