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Consumer confidence index falls for eighth month running
Thailand’s consumer confidence index dropped for the
eighth consecutive month in February due to continuing fears over fuel
prices, the director of the University of the Thai Chamber of Commerce’s
Economic and Business Forecasting Centre, Thanawat Polvichai announced last
week.
The February statistics put the consumer confidence index
at 92.9 points, down from 94.6 points in January, while the overall economic
confidence index fell from 90.9 points to 88.7 points. Thanawat said that
last month’s figures marked the 14th consecutive month in which the
consumer confidence index had remained below 100 points and the eighth
consecutive fall, indicating continuing disquiet over the economic
situation.
He also noted that the confidence of consumers in the
future situation slumped from 93.5 points in January to only 91.6 points in
February, a result he attributed to the rising prices of diesel and
gasoline, and concomitant fears over increases in the prices of goods.
Other factors affecting consumer confidence were the
southern insurgency, avian flu and the last December tsunamis, he added,
warning that these factors could work to dampen consumer confidence until
the middle of this year.
Nonetheless, he pointed to a number of positive factors,
including the landslide general election victory which enabled the ruling
Thai Rak Thai (TRT) Party to form a single-party government, as well as
government investment in mega projects.
In order to boost consumer confidence, he advocated that
the government made payouts from the central budget according to schedule,
and worked to ensure the stability of the Thai currency. At the same time,
he warned the government not to make excessive increases in fuel prices,
with the price of diesel capped at no more than 16.59 baht per liter. But he
expressed certainty that the Thai economy would grow by 5.2.-5.7 percent
this year, with a trade surplus of around US$2.3 billion and a current
account surplus of USD3 billion. (TNA)
Change in interest rates unlikely
Local interest rates are likely to stay unchanged in the
next few months since the liquidity in the system has not significantly
dropped, according to a top banker. Chatisiri Sophonpanich, president of
Bangkok Bank Plc, the country’s largest commercial bank, said he did not
expected the interest rates would increase in the 2-3 months ahead, given
the fact that liquidity has continued to stay high.
Asked to comment on the Bank of Thailand’s idea of
setting a ceiling for consumer loan rates, he said he had not obtained any
details on the matter. He said he needs to see official figures before
giving any comment. However, he believes the central bank will consider the
matter carefully and thoroughly and that the consumer loan business will
continue to expand steadily. (TNA)
New cabinet wins private sector confidence
The new cabinet line-up was given a significant boost
when it was given the thumbs up from heads of three key private sector
bodies - the Thai Chamber of Commerce, the Thai Bankers’ Association and
the Federation of Thai Industries (FTI).
Speaking in response to Prime Minister Thaksin
Shinawatra’s announcement of his new cabinet members, chairman of the Thai
Chamber of Commerce, Dr. Ajva Taulanada, said that all the new ministers
were notable for their knowledge and their abilities. He also stressed the
importance of teamwork for the success of government policies, but declined
to advocate any course of action for the new government.
From the Thai Bankers’ Association, Chatsiri
Sophonpanich described the new cabinet as one that would ensure the
confidence of both domestic and foreign investors.
The FTI secretary-general, Kiertiphong Noijaiboon,
expressed equal confidence in the knowledge and abilities of the new cabinet
ministers, while also noting that whether or not the Thai economy improves
under the new government is dependent on a whole range of factors, of which
government policies are only some. (TNA)
300 million baht for Phuket beach restoration
The government has endorsed a 300 million baht budget for
the restoration of two of the most important tourist beaches in Thailand’s
southern resort province of Phuket, the deputy governor of the island
province revealed.
Winai Buapradit said that the government had approved 200
million baht for the redevelopment of Patong Beach and 100 million baht for
Kamala Beach, both damaged by the Asian tsunamis last December.
Although he said that the money was sufficient to
reintroduce an orderly appearance to the two beaches, he added that further
funding would be needed in order to deal with the current tangle of overhead
electricity cables.
The government has pledged to not only restore both
beaches to their pre-tsunami state, but also make them more orderly and
conducive to tourism. (TNA)
Authorities confident bird flu outbreaks under control
Thai authorities insist they can contain the latest
outbreaks of deadly bird flu in the country. Seven provinces are currently
under quarantine for three weeks in a bid to stem the spread of the disease.
Livestock Department director Yukol Limlaemthong told journalists that most
of the quarantined provinces were in the lower north of the country, namely
Phitsanulok, Kampheangphet, Nakornsawan, Pichit, and Uttaradit. The other
two provinces were Suphanburi, Nonthaburi.
“In many provinces, officials found local fowls
infected with bird flu. All were destroyed to prevent the virus spreading.
Now we will find ways to manage ducks,” he said. He also said the
provincial governors concerned had reported that culling programs and a ban
on the movement of fowls had been strictly implemented.
In a related development, the livestock chief unveiled a
plan for the strict quarantine all animals being imported for a proposed
Night Safari Zoo in the northern province of Chiang Mai. The zoo is due to
open to the public next month on Songkran Day, April 13. (TNA)
MPI drops in January
The manufacturing production index (MPI) in January
dropped by 1.28% from the previous month to 143.44 points, partly because
some major steel plants halted their production to install modern machinery
of higher quality, according to the Office of Industrial Economics.
The office’s director-general, Chutaporn Lambasara
disclosed that the index was calculated based on a survey on 2,000 large,
medium, and small plants manufacturing 203 products in 50 industrial groups.
It showed the inventory index in January stood at 140.76, up 2.28% from the
month before, and the inventory ratio index at 174, a rise of 18.78% from
the previous month.
As well, it found the industrial production index in
February was on the decline, dampened by the tsunami disaster late last
year, which led to a slowdown in tourism-related industries such as food and
beverage.
The rise in diesel price by 0.60 baht per liter last
month had also affected the industries. So, the office estimated that the
production and distribution of industries in February would decline by
around 2-3% from the previous month.
She said the fall in the index was attributed to a
slowdown in the production and distribution of refined fuel since certain
major refining plants were closed for repair and maintenance.
The total output of refining oil in January stood at 4.19
billion liters, down 237.5 million liters, or 5.37%, from the previous
month. Given higher fuel prices, she projected consumers would slow purchase
orders since transport costs had increased continuously. She said the
country’s export declined slightly since a big lot of products had been
already delivered to customers. (TNA)
Delayed opening of new airport would do no harm
It is not too late if the opening of the New Bangkok
International Airport, Suvarnabhumi Airport, is postponed for two years,
according to an industry executive. Udom Tantiprasongchai, president of
Orient Thai Co, operator of Orient Airlines, said he personally thinks that
unless facilities are well equipped at the opening of the airport, it would
not be good, although the airport could be put into service as scheduled.
“Should it be necessary to postpone the service to
ensure full readiness, it should be done. We do not believe any delay will
have an effect on the policy to promote the country as a regional aviation
and transport hub and erode confidence,” he said. “What the government
should do now is to make it clear about a plan to open the Suvarnabhumi
Airport for service and what it will do with the Don Muang Airport; so the
private sector knows how to adjust and prepare itself. At present,
everything is not clear. Such atmosphere can shake confidence,” he
cautioned.
Udom said he believed it was neither too late, nor any
trouble if there was a delay in the opening of the airport for two years. In
his opinion, the communication network system covering roads and the
elevated electric train system around and toward the airport must be put in
place to accommodate the traffic congestion first.
“Currently, traffic in different routes accessible to
the airport is so terrible. For instance, a main road to the airport always
comes to almost a standstill when there is an annual motor show fair. So,
let’s think how terrible the traffic is if the airport is opened for
service,” he said. (TNA)
Changing weather kills fish stocks
Hundreds of thousands of fish being reared in farms along
the Moon River are being killed off due to the changing weather conditions,
leading to economic loss of over 10 million baht, according to local
fisheries experts.
Speaking after witnessing thousands of fish floating dead
on the Moon River in Tambon Sawang Wirawong, Suphrom Phuangin from the
provincial fisheries office attributed the phenomenon to volatile weather
conditions over the past couple of days, with high pressure and cold weather
moving in from China.
The sudden loss of sunlight meant that plants growing in
the river were no longer able to photosynthesize, with the result that the
oxygen levels in the water had dropped considerably, thus killing off the
fish, he said.
He advised local fish farmers to move their baskets out
into the center of the river, reduce overcrowding, and spray the baskets
with water to ensure that the fish could breathe.
Initial estimates suggest that 32 farmers of Nile tilapia
and red tilapia have been affected, with the death of around 644,000 fish
worth about 12 million baht.
The area in question has now been declared a disaster
zone, and provincial funding has been requested to help the afflicted
fishermen. (TNA)
Diesel flotation wins private sector backing
The government’s decision to float the price of diesel
on March 10 won widespread support from key private sector bodies, but the
government was also urged to provide assistance to sectors which were likely
to be dealt a huge blow by the higher fuel prices.
Noting that the private sector had already made
preparations for the flotation by taking measures to conserve energy, Dr.
Ajva Taulanada, chairman of the Thai Chamber of Commerce, said that the
flotation merely represented a reflection of the situation as it currently
stood.
While admitting that there might be a short term adverse
impact, with the price of foodstuffs in particular likely to leap up by 5
percent, he said that in the long term the move would be beneficial.
Nonetheless, he said that the government should roll out assistance measures
for groups likely to be particularly hard hit, including the fisheries
sector.
Similar concerns over the rising prices of consumer goods
were expressed by Kiertiphong Noijaiboon, the vice president of the
Federation of Thai Industries, who noted that the flotation would nudge up
the cost of transportation, raw materials, labor and interest rates. But he
said that he personally believed the decision to float the price of diesel
to be a good one, while stressing that the private sector should be given a
clear warning of the date of flotation in order that it could be thoroughly
prepared for it.
Meanwhile Chatsiri Sophonpanich, president of the Thai
Bankers’ Association, spoke of energy conservation at being at the heart
of attempts to mitigate the impact of the flotation. Nonetheless, he
expressed confidence that the impact on economic growth would be minimal, as
rising fuel prices had already been factored into economic projections.
(TNA)
Ultimate Beach Party launches La Royale Beach project
Wise Power Land Co., Ltd.’s chairman, Eric Lai, and
managing director, Sombat Chanchareonsin, recently organized an ‘Ultimate
Beach Party’ to officially launch La Royale Beach, an exclusive
2-billion-baht residential development on Jomtien Beach.
 Howard
Noble (right), Air Madagascar’ s Regional Development Manager for Asia,
presented two round trip business class air tickets, Bangkok-Madagascar
valued over Baht 178,000 to Yupadee Pisithamachot. (center)
Tawee Butsuntorn, honorary advisor of Wise Power Land and
chairman of Bank Thai Plc., Pinsom Nimsuwan, mayor of Bang Saray, Pattana
Boonsawad, deputy mayor of Pattaya City and Pattaya City councillors Amnuay
Sompongcham and Thongchai Artsong joined in a champagne toast to the success
of the project.
 Bob
Kevokian (right), Chairman and Managing Director of K-Tech Construction
Public Co., Ltd. and Eric Lai congratulate, Nantana Worramonthon, the lucky
winner of an Egyptian Tour Package to Cairo.
Beach activities were held and guests were invited to
enjoy the sumptuous buffet, get a body massage, fingernail and henna
painting. Girls could even have their hair braided.
Many raffle prizes were drawn including a 7 day-6 night
tour package to Egypt from EG Thai Tour, two round trip tickets to
Madagascar from Madagascar Airlines, a meal voucher from the Pattaya
Marriott Resort and Spa, and many other prizes.
The
Limbo Rock was part of the fun and games.
Customers who reserved a unit in condominium A on that
day received a 42” plasma TV (Samsung Home Theatre model CHT-500) valued
at 159,000 baht as a bonus. Those who reserved a unit in Condominium B
received a 54” projector TV and a DVD Home Theatre combo model HT-DS 100
valued at 94,900 baht.
Le Royale Beach, located on Jomtien Beach south of
Pattaya City, comprises six beachfront villas, each with private swimming
pools, a 34-storey condominium block and 8 triplex garden villas.
For more information contact the sales office in Bangkok on Tel. 02-670
1645-6 or in Pattaya on Tel. 038-362 416-7 or visit www.laroyalebeach.com
Lovely
staff demonstrate that the beds are big and comfortable.
Sallmans push Panchalae at BCCT Networking
The Sallmans International Property Consultants and
Valuers sponsored the British Chamber of Commerce Thailand (BCCT) networking
evening held on the veranda at Henry J Bean’s Bar and Grill last Friday.
Taking the opportunity to promote their Panchalae Boutique Residences in
Jomtien, they had a hungry and thirsty group of BCCT members and guests to
impress, with around 60 attending.
Ravi
Bhatia, Dr. Iain Corness, Jeff Burrows, Iain Cruickshank and Dave Davey find
a cosy spot to chitchat.
As always at the BCCT events, there was a broad
cross-section of business enterprises represented, with many coming down
from Bangkok, such as Ravi Bhatia, COO of Suvitech, the IT people, who
brought his family down as well, to enjoy a weekend by the sea.
Greg
Watkins, Simon Landy, Graham Macdonald and Tim Gladwin stand guard over the
lovely lasses from Sallmans.
Looking at Risk Control was Iain Cruickshank, another
visitor from the capital, who was seen in confab with Dave Davey, the MD of
Kiwi Fire Protection on the Eastern Seaboard.
A line
up of pretty maidens all in a row.
The wonderfully flexible Aliza Kinhachandra, the business
development manager from Paragon Flexible Staffing, soon had her own
following clutching her business cards, including Stuart Saunders, the
dental floss man, who was obviously ready to be as flexible as possible!
(The Paragon business cards were in such demand, that Aliza had run out by
halfway through the evening.)
Ensuring that everyone had enough to eat was the Amari
executive chef, Flemming Schulthess, and I must say the lemongrass-skewered
prawns with Bloody Mary’s were sensational; while the BCCT’s ‘man on
the ground’, Graham Macdonald ensured that those who attended got to meet
the right people.
When the evening eventually came to a close, many continued on visiting
the Henry J Bean’s Bar to continue cementing friendships, concluding
business deals or just to say TGIF!
(l-r)
Nipha Nanta, Looket S. aka Kate, Warangkhana Rattanasonthi and Komkrit J, a
pleasant addition to the BCCT networking evenings.
Anil
Singh and Kannikar look cute while Ib Ottesen is enthralled by whatever
Kevin is talking about.
Peter
smith is the center of attraction for these young belles.
Economist proposes radical decentralization
of governmental powers
by Sue K
In a recent seminar organized by Asian University’s
Business Faculty, the economist Dr. Peter Grubenmann presented a lecture on
“Entrepreneurial Opportunities through Grassroots Empowerment”.
 Dr.
Peter Grubenmann
Dr. Grubenmann proposed a radical decentralization of
governmental powers following the concept of subsidiarity, where
governmental tasks remain for efficiency reasons with that level of
government where the tasks have to be performed and, where the services are
consumed and, ideally, paid for.
Dr. Grubenmann presented recent research results on
government decentralization that he conducted in four different countries
with different developmental status. He found that in addition to
subsidiarity in task allocation, the handing over of ultimate decision power
to the citizens through compulsory public vote on all projects, taxing and
public financing matters in a direct democratic fashion, is most beneficial
for a country and its localities in terms of growth, income and development.
Arguments against devolution of governmental powers such
as insufficient local tax base, lack of political maturity and low
educational attainment, cronyism and low institutional and organizational
intensity were proven untenable by relevant research results. This
particularly also applied to the Thai locality included in the research.
Results also showed that, if villagers are given the
right to decide in either taxing, public financing or project matters only,
or worse even, giving them no decision power in these matters at all,
keeping these powers with the local government council or with an upper
governmental level produced much slower growth, lower income, slower
development and in a generally lower level of welfare than could have been
attained if decision powers were given to the villagers directly.
Dr. Grubenmann then addressed the question of what
opportunities a radical devolution of governmental powers can offer to firms
and entrepreneurs. He found that:
* Devolution with full citizen empowerment appears to
minimize tax rates. Low tax rates are beneficial for corporate costs.
* Local disposable income is enhanced through a lower tax
burden. This creates opportunities for local businesses and professionals.
* Citizens’ referendum power in public finance and
taxation matters keeps project costs low. Thus more projects or better
projects can be realized with the same or even a lower budget.
* Devolution creates a competitive market among local
governments for larger tax bases, i.e. for more inhabitants and firms
through lower taxes and more competitive regulatives. The threat of citizen
and businesses to vote with their feet, i.e. that could move to another more
beneficial locality, forces localities to be competitive in the political
marketplace. This increases bargaining power for firms and inhabitants
versus local government.
* Devolution creates increased supply opportunities for
local firms in outsourced services and productions.
* Probably the most important opportunity is, however,
that through closeness to the voting citizens and tax payers, irregular
financing and rent seeking practices are abated, thereby creating beneficial
effects on corporate costs, consistent rule application and government
predictability.
With respect to the comprehensively described decentralization policy of
Thailand as laid down in the new constitution and the respective organic
laws, Dr. Grubenmann indicated that the initially enthusiastic drive came
almost to a halt and in many aspects the wheel was even turned back to a
time before the new laws were promulgated. According to his long-run
simulation results, this will unfortunately be a major factor contributing
to slowed down local modernization and growth processes.
Thais to have ID cards from birth
Thais will soon be given identification cards from birth,
instead of the age of 15, after a proposed legal amendment comes into
effect, deputy government spokesman, Yuranan Pharmornmontree recently
announced.
The cabinet agreed to the change in principle at its
weekly meeting in order to improve the management of information on
household registration. Under the new law, parents are obliged to register
their new born babies within 60 days of their birth.
The ID cards will need to be renewed every ten years,
Justice Minister Pongthep Thepkanjana said. People can automatically use the
titles Mister and Miss at the age of 15 without having to apply for
permission, he said. The existing law requires citizens to apply for ID
cards when they turn 15. (TNA)
Government launches new drunk-driving campaign
The government is rushing out a new phase of its
drunk-driving campaign before the traditional Songkran New Year festival
next month in the hope that threats of having to undergo probation and
community services will deter motorists from drinking.
A collaborative effort between the Department of
Probation, the Thai Health Office and the traffic police, the campaign saw
the official launch on March 10 with a series of television adverts which
emphasize the penalties for motorists who persist in drunk-driving.
The adverts will also feature former drunken drivers who
have been forced to collect the bodies of drunk-driving victims and to
undertake ambulance work as part of their community services.
Dr. Kittipong Kittiyarak, the director-general of the
Department of Probation, said that efforts to force drunk drivers into
community services last year had proved successful, but that this year the
department would introduce even stricter community service measures for
offenders.
The ‘D-Day’ for the campaign has been set as April 4,
in time for the forthcoming Songkran festival which traditionally claims
scores of lives on the nation’s roads. Dr. Kittipong said that the
department would also campaign vigorously in the periods prior to the
beginning of the Buddhist Lent and New Year.
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