Vol. XIII No. 5
Friday February 4 - February 10, 2005

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Fun City By The Sea

Updated every Friday
by Saichon Paewsoongnern

 

BUSINESS 
HEADLINES [click on headline to view story]: 

Thailand set to go ahead with cross-border farming scheme with Myanmar

Attorneys confident of nailing Saxena in banking scandal

Further Thailand-Japan FTA talks scheduled

Finance Ministry makes shift to social fiscal measures

Katoen Natie opens phase 3 logistic plant on the Eastern Seaboard

Permanent housing begins for tsunami survivors

Thai exporters take advantage of Thailand-Australia FTA

More exports to Russia

Thai fishermen battered by tsunami to receive help

SET appoints new assistant president

Bird flu preventive measures are still strong, says health ministry

Steel price volatility likely to ease this year

Studies aimed at private jail initiative

Ride for Peace returns to Pattaya

Thailand faces shortage of HIV medicines

- EDITORIAL -

Thailand set to go ahead with cross-border farming scheme with Myanmar

Details of a contract farming project have been announced that will see Thai investment flow across the country’s northern border to fund plantations in Myanmar in a bid to stem the flow of illegal migrant workers into the kingdom. Government and private sector interests in the northern Thai border province of Tak have agreed to back the scheme which will link the Tak district of Mae Sot with the town of Myawaddi in Myanmar.

Nawin Thepwong, the province’s commercial chief, said that both countries’ governments and the private sector have agreed to seek the endorsement of the provincial authorities. The project would see Thai investors fund the contract farming of 30,000 rai (4,800 hectares) of maize, mung beans and castor-oil plants in the Myawaddi area. The plantations would then be extended to Tak’s Mae Sot, Mae Ramad and Pobpra districts, covering 500,000 rai of land, Nawin said. This contract farming venture is part of the two governments’ joint effort to deal with the influx of illegal migrant labor from Myanmar.

Meanwhile, traders in Tak said they would be asking the government to relax regulations which cap the value of each cross-border transaction at US$200, or 8,000 baht. They said these regulations were impractical and restricted border trade. (TNA)


Attorneys confident of nailing Saxena in banking scandal

Attorneys remained confident of securing the extradition from Canada of Rakesh Saxena, one of the principle players in the Bangkok Bank of Commerce (BBC) scandal.

Speaking on January 21, a day after the long-awaited conviction of former BBC president Krirkkiat Jalichandra, who has been found guilty of embezzling millions of baht from the now defunct bank, attorney Trakul Winitnaiphak said that he was now working to gain the full ruling on Krirkriat’s case to send to attorneys in Canada, where the fugitive, Saxena, now resides.

Although Saxena never held a formal role at the bank and only ever acted in an advisory capacity, he was heavily implicated in the scandal, and was once described by the Asiaweek Magazine as ‘Thailand’s most wanted man’.

Trakul expressed confidence that Thailand would secure Saxena’s extradition, saying that a decision was likely to be made after the fugitive’s case went through the Canadian Appeal Court in February.

Although the Canadian Lower Court ruled in the past that Saxena could be extradited, Saxena has managed to buy time by lodging a judicial appeal. (TNA)


Further Thailand- Japan FTA talks scheduled

Senior Thai and Japanese officials are scheduled to hold further discussions on a free trade agreement (FTA) in Bangkok, according to senior government officials. The two sides plan to discuss reducing duties on both industrial and agricultural products.

Thailand plans to ask Japan to open its market to Thai chicken meat by fixing import quotas equivalent to total value of chicken exports from Thailand for the whole year, a senior government trade negotiator, Pinit Korsriporn, told reporters.

Thailand will suggest that Bangkok should be given the same privileges included in Japan’s FTA with the Philippines, due to be signed soon, which exempts Philippine exports of chicken meat from import duties. Thailand is also keen to convince Tokyo to reduce import duties on Thai tapioca and sugar. The Thai authorities also want Japan to open its markets to Thai marine products. They argue that most fish products are raised locally by fishermen and do not harm the environment as the Japanese allege.

Negotiations on imports of Thai vegetables and fruits are also on the agenda. Although Japan has opened its market to these products, it has imposed strict hygienic standards.

The results of the meeting will be discussed by the FTA committee, headed by the permanent secretary of the Foreign Ministry, sometime in February. (TNA)


Finance Ministry makes shift to social fiscal measures

The Ministry of Finance has announced a shift towards more community involvement in fiscal measures, in an initiative that will start with senior ministry executives staying overnight with local people to gather ideas and opinions.

The move, announced by the vice minister for Finance, Weerachai Weeramethikul, in a seminar held on January 21, marks a greater swing towards grassroots economic involvement in a government already noted for its dual track approach to economic development.

Weerachai said that under the ‘roving ministry’ plans, senior ministry executives would eat and stay overnight with community leaders in order to get a picture of the genuine needs of local communities. With society and the public placed firmly at the center of new policy directives, senior ministry officials will be expected to think outside traditional frameworks so as to draw up effective social development measures.

Weerachai said that although the government had done much to develop Thai society, it recognized that more needs to be done. “This includes the transformation of the Bank for Agriculture and Agricultural Cooperatives (BAAC) into a true bank for the rural population and the development of One Tambon One Product (OTOP) goods,” he said.

The initiative, which echoes a similar one over a decade ago, was applauded by Phaiboon Wattanasiritham, a member of the National Social and Economic Advisory Board. Advocating the establishment of a people’s committee, Phaiboon said that the involvement of the people was essential in the determination of policies.

The committee would also work in a supervisory role, scrutinizing government work. “The government must constantly recognize that the national budget and assets do not belong to the government or to government leaders, but are money and assets belonging to public taxpayers,” Phaiboon said. “The government must allow public participation in determining policies and operations, particularly urgent policies such as addressing the tsunami in the six southern provinces,” he added. Describing social fiscal measures as a challenge, he called on Prime Minister Thaksin Shinawatra to honor his promise to give the people a role in public decision-making. (TNA)


Katoen Natie opens phase 3 logistic plant on the Eastern Seaboard

Belgian logistics company Katoen Natie automotive division officially opened their phase 3 expansion plant on Friday, January 21 at the Eastern Seaboard Industrial Estate in Rayong. The new 9,000 square meter facility represents an additional 110 million baht investment into the region’s growing automotive business.

Dr. Ulf Osmers, Technical Planning and Quality director for BMW Thailand; Chin Weng Chow, Delphi Automotive Systems general manager and Dr. Pricha Pantumsinchai, TLAPS president cut the ribbon to declare the new 9,000 sq. meter facility open.

Guests, customers and business associates throughout the eastern seaboard attended the opening festivities and were privy to an array of Thai cultural shows with elegantly dressed performers.

The official ceremonies began with Alain Deurwader, Katoen Natie (Thailand) Ltd. managing director welcoming guests and customers to the new plant.

Kateon Natie Sembcorp vehicle used to transport raw plastics.

“Kateon Natie began here on the Eastern Seaboard just four years ago and since then our facilities have grown to a total of 19,000 square meters,” said Alain.

Stephen De Vrieze from Kateon Natie in Belgium echoed Alain’s sentiments saying that Thailand and the Eastern Seaboard in particular after witnessing the industry’s pro-active attitude. “I feel that this is the place where things are going to happen,” said Stephen, who spent two years in Thailand when the company opened on the Eastern Seaboard.

Alain Deurwader, Katoen Natie (Thailand) Ltd. managing director watching the time as he leads guests on a tour of the facility.

Guest speaker, Dr. Pricha Pantumsinchai, Thai Logistics and Production Society (TLAPS) president, spoke on the future of the industry in Thailand. “Thailand is aiming to be the logistics hub for Asia but in order to do so, we (Thailand) must compete better on price, have better qualified people and improve our communications,” said Dr Prich, who also lectures at Chulalongkorn University and recently conducted an extensive survey into the logistics industry -customers and suppliers - in Thailand. He also said that there is a push to give further tax breaks to BOI companies.

Dr. Ulf Osmers, Technical Planning and Quality director for BMW Thailand and current, Chin Weng Chow, Delphi Automotive Systems general manager, a Katoen Natie customer, also presented their ideas and feedback on logistics. The central theme behind all three speakers was the need for professionalism and flexibility, a quality that Katoen Natie offers to its varied customer base.

Katoen Natie management, staff and guests take to the stage to remember the occasion.

All three then cut the ceremonial ribbon declaring the facility open. With the official ceremonies over, a tour of the company’s facilities was conducted, during which Alain Deurwader told his guests that the warehouses and facilities had been built to international standards with natural ventilation, a standard floor load weight 5 tons per sq. meters and a flexible system for their in-house customers.

“Our customer UMU, which manufactures fiber composite mats required at least 7 tons per square meter and to meet those needs we reinforced the floor. Similarly, we (Katoen Natie) are flexible enough to meet our customer’s needs in terms of space for manufacturing, storage or delivery systems,” said Alain.

Following the plant tour a buffet lunch laid out on site by the Amari and was enjoyed by all and even the Belgian Ambassador H.E. Jan Matthysen who arrived for the event.

“Kateon Natie is indeed a well established company and represents the ideals of Belgium such as innovation, commitment and efficiency,” said the ambassador.

Based in Antwerp, Katoen Natie has expanded greatly since its humble beginnings. Kateon is the Dutch/Belgian word for cotton and since 1855 is still Europe’s largest handler of the cotton. However, since then the privately owned company has expanded into 22 countries, dealing with all forms of logistics, engineering and petrochemicals.

In an Alain Deurwader, Katoen Natie (Thailand) Ltd. managing director said, “Kateon Natie has invested 250 million baht in Thailand and with the opening of this new facility we have already had enquiries from potential customers and orders to fill by the end of the year. Once it’s about 75 percent full we’ll start the process of acquiring the land next store and expand once again. That takes about six month to complete.”

Kateon Natie Thailand has two facilities: the automotive division in the Eastern Seaboard Industrial Estate (ISIE) - with it neighbors being Ford and General Motors. The other is a joint venture; Kateon Natie Sembcorp dealing with petrochemicals and logistics in the Maptaput industrial estate, also in Rayong.


Permanent housing begins for tsunami survivors

Just weeks after massive tsunami waves smashed into Thailand’s southern Andaman coastline, the government has officially begun its program of constructing permanent housing for those made homeless by the disaster.

In Phuket to ceremonially lay the first post of the first house in Thalang district was Deputy Prime Minister Gen. Chavalit Yongchaiyudh, who traveled to the southern resort island to oversee the construction of an initial batch of 36 houses.

Built and designed by the Community Organization Development Institute (CODI) in conjunction with the Treasury Department, the Department of Public Works and Town and Country Planning, and the Tha Chat Chai tambon administrative organization, the houses will provide accommodation for some of the 55 households whose homes were swept away when the massive waves struck on December 26.

The semi-detached houses, constructed at a cost of 100,000 baht have open areas at the front which residents will be able to use for petty trade or for storing fishing equipment. Construction is expected to be completed within a month.

However, Gen. Chavalit refrained from painting a completely rosy picture of the future, warning local residents that they had to form community groups to streamline the receipt of aid and cope with future contingencies. (TNA)


Thai exporters take advantage of Thailand-Australia FTA

More than 200 Thai exporters have taken advantage of the privileges under the Thailand-Australia free trade agreement (FTA) which came into force some weeks ago, according to senior commerce ministry officials. More than 200 local exporters have already checked with the government office on the details of the Thailand-Australia FTA, senior trade official Apiradi Tantraporn reported.

Thai exporters of auto parts, electrical products, including air-conditioners, canned seafood, furniture and ceramics, have taken advantage of the FTA, Apiradi confirmed.

Imports from Australia during the period were mostly margarines, malt, wheat, aluminum and cherries worth around sixty million baht. Most of these goods were imported for processing into finished products in Thailand. The import of ‘sensitive’ goods, including beef, has not risen since the agreement came into force. (TNA)


More exports to Russia

Thailand plans to increase exports to Russia, with the promotion of new products, including electronic, sports and recreation products, according to senior government officials.

Thailand plans to increase its exports to Russia following a recent meeting with Russian senators in Bangkok, a senior bureaucrat, Chutaporn Lumpasara recently announced. At the meeting, Thai officials suggested increasing the export of televisions, radio sets and plastic resins. They also told their Russian visitors that Thailand wants to promote the export of new products including electronic, sports and recreation products to Russia.

Thailand’s public and private sectors are now conducting a feasibility study on how to organize one-to-one meetings between Thai and Russian businessmen, aimed at exchanging information and expanding Thai exports to Russia.

Thailand has a trade deficit with Russia. Bangkok’s exports to Russia last year were worth nearly three hundred million dollars, while imports from Russia were worth nearly twice that. (TNA)


Thai fishermen battered by tsunami to receive help

Under an agreement between Thailand and the UN’s Food and Agriculture Organization (FAO), the UN will provide US$ 400,000 to assist Thai fishermen affected by the tsunami on December 26. The FAO assistance will be offered to Thai farmers, especially fishermen, in the country’s six southern coastal provinces which were devastated by the massive tidal waves, according to a senior agricultural official, Pinit Korsriporn.

Under the agreement signed on January 24, the FAO will provide fishing equipment worth US$ 400,000 to nearly nine thousand farmers and fisherman. The assistance will available until the end of October.

In 2004, the FAO also extended assistance to help relieve those affected by the flooding problem in Sukhothai province.

US officials are expected to visit Thailand soon to inspect the damage down by the massive tsunami waves, Pinit said. The US is also expected to use the FAO’s information when it considers Thailand’s requests to lower the anti-dumping duty imposed on Thai shrimp imports. (TNA)


SET appoints new assistant president

The Stock Exchange of Thailand (SET) has appointed a new assistant president to take care of its information and research projects, and foreign affairs.

The newly-appointed SET’s assistant president is Sethavuth Suthivatnarueputhi, 39, who was a former senior economist of the World Bank. He was also a top economist at government agencies under the Ministry of Finance, including the Comptroller General’s Department and the Fiscal Policy Research Institute, and at New York-based consulting company, McKinsey & Co., Inc.

Sethavuth, an undergraduate with the First Class Honor from Swarthmore College, as well as a post graduate and Ph.D graduate, from the Faculty of Economics, Yale University in the United States, was also a lecturer of universities in Bangkok, including Chulalongkorn University and the National Institute of Development Administration (NIDA). (TNA)


Bird flu preventive measures are still strong, says health ministry

Monitoring measures on bird flu in Thailand are still being strictly imposed to prevent its re-emerging for the third time, Public Health Minister Sudarat Keyuraphan has affirmed. “New cases of bird flu patients have not been found in Thailand since October,” said Sudarat.

The monitoring measures have been increased to the highest level of awareness, especially the preventative measures on human-to-human transfer. Public health volunteers across the country were given training on how to deal with the situation, and were assigned to pass on the information to villagers whenever local fowls suspiciously die.

The Ministry of Public Health is planning to open more labs with the potential to test for the disease, increasing the number from the current 6 to 12 nationwide, in order to speed up the testing process. “A few cases of suspicious bird deaths have been found in only four lower northern provinces and the situation has been kept under control,” said the director-general of the Department of Disease Control, Dr. Thawat Suntrajarn. “With close cooperation and coordination between the Ministry of Public Health, the Ministry of Agriculture and Cooperatives and the National Park, Wildlife and Plant Conservation Department, fresh information on the disease has been obtained daily and this has helped in planning the prevention of any further spread,” he said.

Bird flu hit Thailand twice last year, causing several billion baht damage to local poultry businesses, especially in the export sector. Millions of fowl have been culled to stop the spread. Dozens of Thai people, mostly in rural areas, were infected with the disease and many of them died. (TNA)


Steel price volatility likely to ease this year

The steel price volatility is expected to ease this year on an assessment that the demand for the product in the world market would increase at a slower pace that of last year, according to the Kasikorn Research Center (KRC).

KRC disclosed the International Iron and Steel Institute (IISI) projected the global demand for steel this year would increase 5% from that of last year with China still becoming the biggest consumer of around 290 metric tons. The expected growth rate is lower than that in 2003 and 2004, which saw the demand increase at an average of 7.5% and 7.6% per year respectively.

The report said the decline in the steel demand in China and speculation on the price volatility would ease the pressure on the demand and price of the product in the world market although prices of various kinds of steel continue to stay high.

KRC projected the steel demand would grow steadily at 2.2% during 2005-2008 compared with an average of 6.23% during 2002-2004. The high consumption of steel in China will still dictate the demand in the world market.

The leading think tank forecast the local steel price volatility, which was very high last year, would also ease as a result of the decline the price fluctuation in the world market and the increase in production capacity of many local steel plants. Although the local steel demand would rise on the rehabilitation of houses damaged by last month’s tsunamis, it would be offset by the increasing supply in the market. (TNA)


Studies aimed at private jail initiative

Thailand’s prison system could be privatized in the future, Justice Minister Pongthep Thepkanjana recently revealed, while insisting that plans to allow the private sector to run new prisons will rest with the results of feasibility studies.

But the justice minister stressed that the private prison initiative was at present simply one idea among many for reforming inmates’ behavior. While noting that several nations had adopted similar approaches to prison management, he said that this did not mean that the idea would necessarily take off in Thailand.

At present, he said, the government was conducting more studies and gathering opinions on the issue, and the initiative would only come off the drawing board if it seemed appropriate.

He also dismissed suggestions that private sector prisons would be places of luxury, saying, “Don’t jump to the conclusion that private sector prisons will be five-star hotels or resorts. That would require a high level of investment. These prisons must be cheaper than those run by the public sector.”

Stressing that the plans would not result in any lay-offs among current prison staff, he said that bringing in the private sector would help reduce the burden on an already overstretched public sector workforce.

However, he hinted that the prison service could face wholesale privatization in the future, saying that privatization could improve the quality of life for prison inmates, while simultaneously reducing costs. He added that it is possible that the private sector prisons might accommodate inmates on minor charges who are willing to pay special fees for greater comfort. (TNA)


Ride for Peace returns to Pattaya

Thundering sounds of big bikes and classic cars to rumble in February

Suchada Tupchai

The second annual ‘Ride for Peace’, hosted by the Burapha Motorcycle club, American Classic Car society and Classic Old Bike society is again set to roar through the streets of Pattaya. In a recent meeting at city hall Mayor Niran met with organizers and law enforcement agencies to coordinate the 3-day event, from February 11-13.

Prasan Nikaji, president of Burapha Motorcycle Club Thailand, explained the 3-day bike-riding event was initiated to promote tourism in many aspects - aiming to raise awareness of eco-friendly tourism, carbon monoxide reduction, and to generate understanding amongst the public that bike riders such as his group love peace and social harmony.

Prasan said it was common in some parts of the world to see chopper bikers as troublemakers, but his group is made up of respectable people with jobs and businesses who just happen to love big bikes. They genuinely desire to uphold peace and interact with the community in a responsible way.

“Our members are also involved in many charitable events,” said Prasan. The group leader said his squad endorses the campaign for 4-stroke motorcycle engines to help reduce CO2 emission, the wearing of helmets and switching on headlights for safety, Asian-European-American relationship strengthening, and fundraising for Pattaya student scholarships, and improvement of facilities.

Prasan said, “This year we can expect at least one thousand riders of different nationalities, to join in a huge parade from North Pattaya Road, proceeding to Beach Road, to Pratamnak Road, and end at Na Jomtien. Tight security will be enforced by local police and volunteers to ensure the event comes off without a hitch.”

A number of shows will again take place at the event ground in Jomtien including a chopper bike show, Jet Ski show, para-motor show, Miss Chopper beauty pageant, and a Cowboy and Cowgirl contest.

The event opens from 8.30 a.m. till 6 p.m. and entrance is free for all spectators.


Thailand faces shortage of HIV medicines

A Thai AIDS support group has warned the government that Thailand faces a shortage of a medicine used in the treatment of the human immunodeficiency virus (HIV) infection. The shortage in the country’s eastern province of Rayong was so severe that hospitals have run out of their stocks of Efavirenz, said Nimit Thien-udom, director of the AIDS Access Foundation.

Rayong’s hospitals have had to rely on neighboring provinces for their supplies. But now their supplies are so limited they have had to reduce the prescriptions of the tablets for HIV carriers, Nimit said. “The HIV carriers now have to go to hospital every week to get the drug, instead of every month as previously,” he said.

The Foundation has urged the government to look into the problem, as it is worried that these shortages could spread to other provinces, Nimit said.

There has been a shortage of Efavirenz ever since the manufacturer moved its factory outside the country. More than 3,000 HIV carriers need to take the drug regularly to prevent their infection become resistant to the treatment.

Nimit said his group has also petitioned the health minister. A meeting with the ministry’s Permanent Secretary, Dr. Vichai Tienthavorn, has been arranged for February 7 to discuss the problem.

Efavirenz, an anti-HIV drug, is a non-nucleoside reverse transcriptase inhibitors. It is used with other medicines to treat HIV infection. (TNA)


EDITORIAL: Exercise your rights to a fair election

Suchada Tupchai

As the February 6 election date draws close, parliamentary candidates are stepping up the campaigns and knocking doors in a last ditch effort to win over the voting populace. The campaigners are being closely monitored by election officials to ensure candidates remain on the straight and narrow path in the lead up to Sunday.

The election regulations were formed in 1998 to ensure a fairer and tighter system of controls, right down to the ballot boxes. Since then, regulations have been adjusted to close loopholes and maintain the essence of democracy.

The Election Monitoring Committee (EMC) members in each province have been chosen and told to follow the middle path in allowing equanimity for all parties - especially for those honest and no so honest. Each member has been selected based on their political neutrality in the selection of community leaders by the voting public.

Throughout the nation and even in Pattaya candidates are forging ahead to make the grade and EMC members and ballot box scrutinizers have received specialized training in advance and directly involved with the government. These people must adhere to the policy being impartial during this period and instructed to follow their duty with honesty and due diligence to enforce the regulations laid down by the EMC and the laws it abides by.

More importantly on this issue, is honesty and the ability to carry out the special instructions with a sense of justice and fairness for all - as the general public monitor every move and detail as Thailand tries to improve its democratic system.

Eligible voters throughout the nation have been urged to cast their ballots this weekend, already many have used their right to vote knowing in advance that they will not make it on Election Day, February 6,between 8 a.m. to 3 p.m. The public has also been urged to report discrepancies or suspected vote buying directly to National Police Bureau Election monitoring office via emailing [email protected] or calling 02 278 8000, 08 619 7472-3 (for those outside the greater Bangkok area).



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