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Finance Minister confident
of Thailand’s current account status
Deputy Prime Minister and Finance Minister Somkid
Jatusripitak brushed aside concerns over Thailand’s US$ 500 million trade
deficit in the month of February, saying that Thailand will enjoy current
account surplus for the overall 2005 provided that global oil prices do not
rise any further.
Somkid said even though figures showed US$525 million in
trade deficit in February, Thailand had recorded a US$700 million surplus in
services over the same period, hence the overall current account surplus.
He also expressed confidence that Thailand will enjoy a
three billion dollar surplus for the whole of 2005 as forecasted by the
Ministry of Finance. However, this is contingent upon the fact that oil
prices don’t shoot up further.
The Finance Minister said the surge in imports recorded
for February was attributed to import of steel products and machineries,
alongside oil.
The government, he pledged, would strive to promote
export and tourism, while reigning inflation at 4% which is the appropriate
range for the 5% economic growth. “We could expect certain degrees of
volatility in the transition, but the government is trying its best,” said
Somkid. (TNA)
Rural residents seeking work in Bangkok on the increase
Rural residents seeking work in Bangkok this year because
of the severe drought have been on the rise, according to a survey released
at the end of March.
Twenty percent of those interviewed said their incomes
were inadequate to cover their basic living costs. Another 20 percent said
they were unemployed. The other 16 percent said the severe drought had
driven them to seek work in Bangkok.
Four out of five people interviewed said they had used
their own money to travel to Bangkok to look for work. Most of the people
surveyed said they would stay in Bangkok only for a certain period of time,
with some respondents saying around three months or when they had earned
enough money to return home, or when the drought ends.
A fifth of those interviewed wanted the government to
build more dams and reservoirs. A little less than twenty percent wanted job
retraining programs. Another 17 percent believed the authorities should add
rain-making projects to their operations.
Many parts of Thailand have been hit hard by this
year’s severe drought and water shortages. The government has already
poured billions of baht into relief projects. The authorities are also
working on long term solutions to reduce the affects of annual drought on
the economy and the society. (TNA)
Manufacturers put spanner in works of NGV plans
Last month, vehicle manufacturers threatened to disrupt
government plans to promote the use of NGV, saying that they would not
produce cars which could run on the fuel until there were more gas stations
selling it.
On March 24, speaking for the Federation of Thai
Industries (FTI), Ninnat Chaitheeraphinyo said that discussions between
Energy Minister Wiset Jubibal and automobile manufacturers had shown
widespread opposition to the idea of producing more NGV vehicles.
While manufacturers had welcomed suggestions that they
should manufacture more vehicles to run on gasohol and bio-diesel, they said
that NGV was only suitable at present for buses and taxis, due to the
current shortage of distribution points. If manufacturers rushed to produce
personal vehicles running on NGV, motorists purchasing the cars would run
into problems, they warned. (TNA)
Drought turns water jars into bestsellers
Makers of traditional the traditional earthenware water
jars known in Thai as ‘ong’ are experiencing a surge of demand due to
the current drought, with craftsmen in the country’s central province of
Ratchaburi, with which they are closely associated, finding it impossible to
keep up with orders.
According to Thassanai Silprasert, president of the
Ratchaburi Earthenware Association and owner of one of the province’s
‘ong’ factories, orders for the jars are coming in from across the
country as the public rushes to find containers in which to store precious
water. Orders are notably high from the Northeast, where the drought is
particularly severe.
As a result, Thassanai says, local ‘ong’ producers
are failing to keep up with demand, despite the fact that the province’s
38 ‘ong’ factories are churning out the jars as fast as they can.
Part of the problem lies with the fact that the jars,
which depict a Chinese-influenced dragon design, are made by hand and their
production involves a complex series of procedures. At the same time,
producers have been sending their jars down to the southern Andaman
provinces to help residents who survived the December tsunamis, many of whom
require receptacles in which to store water.
Thassanai confirmed, however, that members of his
association had been asked to step up production where possible, and that
prices would not be raised to take advantage of the higher demand. (TNA)
Interest hike depends on economic conditions, says BOT
Bank of Thailand’s Governor M.R. Pridiyathorn Devakul
has reiterated that the central bank will pay attention to the country’s
economic conditions before making any decision on the local interest rate.
He conceded the decision by the United States’ Federal
Reserve to raise key interest rates by 25 basis points would put the local
interest rate under pressure, since the interest spread between the US and
Thailand would widen. However, he said, the US interest rates had nothing to
do with the Thai economy. So, any decision to raise the local interest rates
must be made by considering the country’s economic conditions as a main
factor.
“It is too early now to consider the possibility of the
local interest rate hike. What we can do now is to evaluate the overall
economic conditions. The decision on the matter will be made at the next
meeting of Monetary Policy Committee to be held on April 20,” he said.
Naris Chaisutr, Director-General of the Fiscal Policy
Office (FPO), said the latest US interest rate hike had not had any effect
on the local interest rate. Still, the upward interest adjustment will have
an impact on the country’s overall economy. As well, the liquidity in the
system remains high. So, he saw no need to edge up interest rates.
He said the FPO viewed the sharp diesel price hike will
have an impact on the production costs and consumption in the short run.
However, it would benefit the country in the long run because it reflects
the actual costs of production and could prevent the distortion of the fuel
supply. (TNA)
Higher inflation won’t fuel NPLs, says BOT
The upward trend of inflation rates will not fuel
non-performing loans (NPLs) since interest rates have not risen and
liquidity remains high in the system, according to the Bank of Thailand.
Tarisa Watanagase, the BOT’s Deputy Governor in charge of the Financial
Institutions Stability Group, said although the inflation rates tended to go
up due to higher oil prices, it would not cause financial institutions to
incur more NPLs.
She believes interest rates, which are a key to the NPL
movement, will not increase in the near future because the liquidity in the
system remained excessive.
In contrast, she viewed NPLs in the system are likely to
further decline as a result of the central bank’s strict control on
lending.
In February, NPLs dropped to 10.71% of the outstanding
loans from 12.70% the same month of the previous year.
Of this, 419.43 billion baht or 12.78% belonged to
private commercial banks, 137.57 billion baht or 9.57% to state-owned banks,
13.39 billion baht or 2.6% to foreign banks, 21.49 billion baht or 7.65% to
finance companies, and 297 million baht or 27.58% to credit fanciers.
The combined NPLs incurred by private, state-owned and
foreign banks dropped significantly to 570.39 billion baht or 10.91% from
619.09 billion baht or 12.87% the same month the year before.
Evaluated by quarter, NPLs in the fourth quarter last
year declined to 10.71% from 11.41% in the third quarter.
Tarisa said the BOT maintained its target to reduce NPLs
in the system to 2% of the outstanding loans next year. (TNA)
Siam City Bank opens new
Beach Road satellite branch
Suchada Tupchai
Siam City Bank opened their latest branch in North
Pattaya last Friday morning. The new satellite branch, located on Soi One in
North Pattaya, saw a number of distinguished guests attend the opening
ceremonies.
Saensuk
Mayor Somchai Khunplome and Arun Wirachawala Siam City Bank general manager,
cut the ceremonial ribbon as Mayor Niran Wattanasartsathorn, Pattaya MP
Chanyuth Hengtrakul and distinguished guests participate.
Somchai Khunplome, Saensuk mayor was the guest of honor,
along with Chanyuth Hengtrakul, Pattaya MP, Mayor Niran Wattanasartsathorn
and Siam City Bank GM Arun Wirachawala.
Arun Wirachawala said that Siam City Bank has been
operating for 65 years and is the only commercial bank to have a royal
figure in its logo. “Siam City Bank offers the latest in banking
technology systems and includes services such as personal and business
loans, credit card facilities money transfers and currency exchange. This
new North Pattaya branch is one of over 360 branches throughout the country
and will service residents and tourists in the area.”
The new branch will provide general banking and as part
of the opening special, hand out gifts to those who open a new account.
Yaowaluk Kwankaew, branch manager, runs Siam City Bank North Pattaya branch.
Once the speeches concluded and the ribbon cutting ceremonies were
performed, visitors and guests toured the new branch with Yaowaluk Kwankaew
giving a guided tour for the VIPs.
Nong Nooch marks Elephant Day
Patcharapol Panrak
Nong Nooch Garden celebrated Thai Elephant Day on March
13 with a parade of elephants encircling large fruit baskets – a gracious
welcome to the crowds of visitors who came to watch the amazing event.
Kampol Tansatcha, director and owner of Nong Nooch
Garden, organized the lavish event and Pongpat Wongtrakul, Sattahip district
chief presided over the opening ceremonies.
Elephants
enjoy tasty treats from the largest fruit basket buffet in the world.
Thongchai Sodorn, managing director of marketing for Nong
Nooch Garden explained that Chonburi Province held its first Elephant Day at
the Elephant Camp at Nong Nooch Garden in 2000. What was to become an annual
event was suspended in 2004 for economic reasons, but Thongchai said he
hopes it will again become a yearly extravaganza.
At the Nong Nooch Elephant Camp there are a total of 42
male and female elephants; 8 males and 34 females. The oldest female is
named “Pang Dork Mai” and she is 103 years old. The youngest elephant is
8 months old. Thai Elephant Day is held to pay tribute to the elephants,
remembering how much they serve the people and raise awareness of the need
for their protection.
The activities started with a tom-tom parade led by 13
baby elephants into a festival with the big elephants. Then a mountainous
buffet was laid out for the elephants with the largest fruit baskets in the
world.
Thirteen elephants encircled them in a 6-meter diameter,
19-meter long circle. The baskets had 10 types of fruit inside plus 3 types
of Thai herbs such as urticaceae leaves, Thai leaves and tamarind, which
protects many elephants from diseases like flatulence and worms. Other
activities were also held, such as the “Bai Sri” ceremony for elephant
spirits, and Bai Sri Dance for all of the elephants, especially for Pang
Dork Mai who is 103 years old.
Kampol told the crowd, “In Chonburi Province there are more than 300
elephants living in different elephant camps. The purpose of this Elephant
Day held by Nong Nooch Garden was to make everyone aware that they are
essential for society. We must keep them as Thailand’s symbol, and to
revive Thai elephant history so that future generations realize how
important this wonderful animal has been to our kingdom.”
Crabs stick Songkhla
in Guinness Book
Thailand’s southern province of Songkhla achieved
global fame on March 23 with the creation of the world’s largest
artificial crab stick.
Locals and tourists gathered to watch, while the deputy
provincial governor, Prayong Rattaphan, marked the gravity of the occasion,
as the ‘Making of Thailand’s Biggest Artificial Crab Stick 2005’ event
kicked off.
The crab stick, made by Pacific Seafood Processing Ltd.,
measured 120 centimeters in length, had a diameter of 22.5 centimeters, and
weighed in at a whopping 49 kilograms; thus giving it a place in the
Guinness Book of Records.
Thawee Piyaphattana, managing director of Pacific Seafood
Processing, said that the event would serve to promote the nation’s
seafood industry. (TNA)
SilkAir adds 14 percent capacity
SilkAir on March 27 increased network capacity by 14
percent, which will continue until October 29. Flights to Phuket will
increase from 14 weekly to 21 weekly; there will daily flights to Davao,
instead of four times weekly; five weekly flights to Kochi in India, one
more; and flights to Manado will be increased from three to four times a
week.
From May 3, the airline will resume its twice-weekly
service to Padang, and from July 1, there will be an additional frequency to
Yangon on top of the 10 weekly services.
Chief executive, Mike Barclay said, “We are confident
that there is strong demand for the additional services. We remain committed
to growing air travel in the region by offering more flights and better
connections across the combined SilkAir and Singapore Airlines network.”
(TTG Asia)
Thai government to set up Globalization Fund
To cushion the impact of globalization on Thailand’s
economic development and industries, the Thai government intends to set up a
Globalization Fund to ease Thailand into transition, alongside an
eight-pronged development strategy.
Speaking to reporters after a special weekend session on
administration, Dr. Ampon Kitti-ampon, secretary-general of the National
Economic and Social Development Board said he has proposed the Globalization
Fund” to be set up so that the fund can be drawn in the advent of
“unexpected changes within the country and beyond” that may have an
effect on the country. This fund will be outside the normal budget. This
initiative is subject to further consultation among the NESDB, the Budget
Bureau and the Office of the Civil Service Commission.
The weekend meeting at the government among senior policy
makers also elaborated on an eight-pronged strategy to bring Thailand
forward. The strategy focuses on poverty eradication, and improving
Thailand’s competitiveness in the world market. The impact of various Free
Trade Agreements that Thailand is negotiating with key players in the world
market including the US; Japan was also discussed and it is proposed that
there must be a mechanism to help the farm sector.
As part of the strategy, the Thai government will also
invest in strengthening the petrochemical industries to support local
industries. The industrial sector will be reformed in view of the FTAs, and
human resources development also features prominently.
The government’s ambitious development strategy
envisages dramatically improved transport, as well as information technology
infrastructure. The Foreign Ministry is meanwhile tasked with improving
relations with neighboring countries so that Thailand can advance economic
ties with them. (TNA)
Nod for Lufthansa
to buy SWISS
The supervisory board of Deutsche Lufthansa AG and the
board of directors of Swiss International Air Lines have approved a business
model for the acquisition of SWISS by Lufthansa and its integration into the
Lufthansa Group.
It was jointly devised by the two companies. Lufthansa
CEO, Wolfgang Mayrhuber, and SWISS CEO, Christoph Franz, signed the
corresponding integration agreement in Zurich last week.
Franz told SWISS TravelClub members: “The agreement
ensures the fair development of our Zurich hub, the size of our long-haul
fleet, the retention of our quality SWISS brand and the continuation of
SWISS as an operational airline domiciled in Switzerland.”
Several European industry members are concerned Lufthansa
may dominate the international operations, leaving SWISS to operate mostly
regionally. This would blow away the millions of dollars spent recently to
upgrade and develop Zurich as a hub Franz’s assurances remains to be heard
on this issue. (TTG Asia)
Police on alert for oil smuggling
Thailand’s police are on the alert for an increase in
smuggling of diesel oil at sea. The authorities expect an enormous increase
in smuggling after the domestic price for diesel rose by 3 baht a liter last
month, the Deputy National Police Chief, Pol. Gen. Suthep Thammarak, said.
A special task force, including marine police, are also
on full alert for ships suspected of smuggling diesel and the so-called
‘green diesel oil’ traveling from Malaysia and Singapore, where it is
refined. The Thai government allows the tax-exempt ‘green diesel oil’ to
be use by Thai trawlers.
More than 1.2 million liters of smuggled oil has been
confiscated in raids during January to March 23. Only over 290,000 liters
was confiscated in the same period last year.
Pol. Gne. Suthep said police were also on the watch for
the possible smuggling of diesel and gasoline by land through Thailand to
Myanmar, Cambodia and Laos, where retail prices are higher than those in
Thailand. (TNA)
Emergency repairs
for Giant Swing
Bangkok’s Giant Swing, which is one of the capital’s
top tourist attractions and was once used in Brahmin ceremonies - is now in
urgent need of repair work.
An inspection of the swing carried out by the Bangkok
Metropolitan Administration (BMA) and the Fine Arts Department last month
showed that the weather has seriously eroded the structure and caused cracks
and holes in the wood.
Although several restoration operations have been carried
out in the past, the Fine Arts Department now wants to take down the whole
structure to examine it in more detail. The repair operations will include
an ancient Brahmin ceremony.
By the end of April, the BMA and the Fine Arts Department
hope to have determined what repair work will be needed on the 200 year-old
structure, which has been declared a World Heritage Site by the United
Nations Educational Scientific and Cultural Organization (UNESCO). (TNA)
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