|
Diesel use surges nearly 7% in first eight months
Thailand’s petroleum demand in the first eight months
of this year increased by 4.5 percent, with that of diesel alone surging by
nearly 7 percent, according to the country’s petroleum giant, PTT Public
Company Limited (PTT).
The demand for petroleum, including oil and natural gas,
excluding that in the petrochemical industry, reached 1.174 million barrels
a day in the January-August period, a 4.5 percent increase from the same
period of last year, PTT’s Public Relations Department Chief Pongpayak
Satienpakiranakorn told journalists.
The country’s demand for oil rose to 732,500 barrels a
day, an increase of 2.6 percent, with the demand for diesel alone surging to
351,100 barrels a day, a 6.8 percent increase from the same period of last
year, while that of gasoline dropped by 6.4 percent to 126,600 barrels a
day.
The use of natural gas totaled 441,900 barrels a day
during the period, a 7.9 percent increase.
The country’s supply of petroleum reached an average of
1.608 million barrels a day, an increase of 5.1 percent from the
January-August period of 2004, most of which, or about 1.047 million barrels
a day, was imported.
Crude oil imports reached 854,300 barrels a day, while
imports of refined fuel dropped by 5.5 percent to 42,500 barrels a day.
Natural gas imports from Myanmar rose by 24.4 percent to
150,500 barrels a day.
Domestic supply of natural gas increased by 8.6 percent
to 387,000 barrels a day, while that of crude oil rose by 27 percent to
106,000 barrels a day. (TNA)
Water supply prices to remain unchanged for next 2-3 years
The prices of water supply in metropolitan areas will
remain unchanged, at least over the next 2-3 years despite rising costs, the
Metropolitan Waterworks Authority (MWA) announced.
MWA Governor Pipit Promsit told journalists that the
authority had attempted to reduce its expenses and increase its revenues to
cope with rising production costs of around Bt 0.25 per cubic meter of
water, caused by oil price hikes.
The authority could, therefore, be able to maintain the
prices of its water supply provided to households and businesses in the
metropolitan areas at the current levels over the next 2-3 years, he said.
“MWA is increasing revenues through penetrating new
groups of customers which are manufacturing firms turning to use the MWA’s
pipe-water services, instead of water supply from artesian wells. The number
of these new customers has risen to more than 2,000. MWA’s revenues earned
from these groups are likely to increase by 20 percent annually over the
five years”, he noted.
MWA’s monthly revenues now stand around Bt 1.2 billion,
about 15-20 percent is profit; so the authority is self reliant and is ready
for its planned privatization and listing on the Stock Exchange of Thailand
(SET) next year, as part of the government’s policy, according to the MWA
chief.
Pipit admitted, however, that continuing hikes of its
production costs, mainly power and chemical raw material prices, might force
the authority to raise its water supply prices after the next couple of
years.
MWA’s water services now cover 90 percent of households
and business firms in Bangkok and surrounding areas. (TNA)
Commercial Ministry to focus more on exports and overseas investment
Deputy Prime Minister and Commercial Minister Somkid
Jatusripitak on Monday announced the adjustment of the ministry’s
performance role by focusing more on promoting exports and encouraging Thai
entrepreneurs to boost their investment overseas in preparation for the
opening of free trade areas (FTA) in the future.
He said the ministry is in the middle of adjusting its
performance style, which is expected to be complete by the end of this
month.
Its new role will put a greater emphasis on promoting
exports and enhancing competitiveness. Also, the ministry will encourage
local entrepreneurs to boost their investment overseas.
Dr. Somkid said a preliminary data showed that the
country’s exports in September surged above US$10 billion and would
definitely grow more than 20 percent for the whole year.
He believed Thailand’s move to penetrate new overseas
markets and export in large quantities to them helped bolster the
country’s exports. Still, he also wants local entrepreneurs to step
forward by investing more overseas because in the future, competition will
intensify upon the opening of FTAs. When that happens, those who were able
to penetrate into new overseas markets would have an advantage. Now, Thai
entrepreneurs fail to reach that stage, he said.
Next month, the deputy premier said, Singapore and
Thailand will hold a meeting to discuss bilateral trade partnership.
Dr. Somkid also voiced confidence that the new outbreak
of avian flu would not affect the export of chicken since Thailand now has
experience in coping with the pandemic. He said most chickens in Thailand
are now raised in closed farm areas. Local exporters have turned to ship
cooked chicken overseas, which could earn more value-added revenue.
Also, Thai chicken exporters have enjoyed hefty market
opportunities and obtained the generalization system of preference (GSP)
from major importing countries, he added. (TNA)
Listing of EGAT to enhance market cap to 5 trillion baht
The listing of EGAT Public Company Limited (EGAT)’s
shares on the Stock Exchange of Thailand (SET) late next month will help
enhance the market capitalization by 200 billion baht to 5 trillion baht,
according to a top executive of SET.
Senior Executive Vice President Sophavadi Lertmanaschai
said on Monday that the SET had decreased the number of companies planning
to list on the market this year to 45-50, from 60 set originally. It has
also cut the number of companies to list on the Market for Alternative
Investment (MAI) to 10-15 from 40. Still, it maintains a target to raise
market capitalization to 5 trillion baht from 4.8 trillion.
She said the planned listing of EGAT’s shares on
November 30 would help increase the market capitalization significantly
because EGAT has the market cap of up to 200 billion baht.
Funds mobilized from the listing totals 40-50 billion
baht, the highest ever on the SET.
“The trading of EGAT’s shares will help broaden the
investors’ base significantly, partly because some holders are people who
purchase shares at the initial public offering (IPO). A significant number
of EGAT staff holds shares,” she said.
The price of IPO shares of EGAT is likely to range from
25-30 baht, with the share subscription period set on November 16-17. The
shares will be offered for subscription through commercial banks.
Should the number of subscribers exceed the number of
shares offered, the share allocation on a per ladder basis would be made on
November 22.
The paid-up and registered capital of EGAT totals 60
billion baht, divided into 6 billion shares with a par value of 10 baht.
Of this, 460 million shares will be earmarked for EGAT
staff who will be allotted the shares equal to 8 times their salary at a par
value of 10 baht.
Share subscription by the staff is set for October 25-27
with a silent period of three years. The number of EGAT staff at present
totals 25,000.
(TNA)
Thailand’s investment promotion ranks high among foreign investors, poll indicates
Foreign investors and businessmen identified China as
offering the highest return on investment while Thailand tops the ranking in
investment promotion.
The Abac Poll Research Center of Assumption University
surveyed nearly 500 foreign investors and businessmen based in Thailand on
the strengths and weaknesses of investment in ASEAN and China.
Thailand scored high in terms of friendliness of the Thai
people and its investment promotion measures.
To the question of countries where investors are
concerned about corruption, 39 percent named Indonesia, 32 percent named
Thailand and China followed close behind at 30 percent. Nearly 72 percent of
respondents named traffic congestion, and nearly 50 percent said pollution
are the major problems plaguing Thailand. (TNA)
Thai National Power to expand on Eastern Seaboard
Thai National Power, a wholly owned subsidiary of the
U.K. publicly listed International Power plc., has obtained Board of
Investment approval for a 23 MW expansion on its existing Small Power
Producer (SPP) plant at Siam Eastern Industrial Park, Rayong Province. The
plant, first commissioned in October 2000, currently produces 118 MW net
capacity and supplies both neighboring industrial park manufacturers and
EGAT. The power plant has also recently completed a 2200 RT capacity
district-cooling scheme utilizing steam fired absorption chillers providing
cooling capacity to two neighboring manufacturers.
Thai
National Power is set to expand on the Eastern Seaboard.
The expansion project is part of a Baht 900 million
investment program in the Thai National Power facility and reflects a
substantial commitment by International Power plc to expand its existing
facility in Thailand.
International Power plc is a leading independent electricity generating
company with 16,363 MW (net) in operation and 1,708 MW (net) under
construction. International Power has power plants in operation or under
construction in Australia, the United States of America, the United Kingdom,
the Czech Republic, Italy, Portugal, Spain, Turkey, Oman, Qatar, Saudi
Arabia, the UAE, Indonesia, Malaysia, Pakistan, Puerto Rico and Thailand.
International Power was listed on the London Stock Exchange and the New York
Exchange (as ADR’s), on 2 October 2000.
A little piece of paradise
to be built in town center
Narisa Nitikarn
Construction of a billion baht luxury housing project
described as a paradise in the middle of Pattaya was announced on October 15
at the site in Soi Sanam Golf Siam Country Club, opposite Wanasin
Plantation.
Chanyuth
Hengtrakul, MP for Chonburi (second from right) and his wife (right) present
a basket of flowers to Banruanthai administrative director Pinyo Tanwiset,
chairman of Chonburi Provincial Administration Organization and Rewat
Pollok-In, vice chairman of Chonburi Provincial Administration Organization.
Ban Ruan Thai, a project that is to be managed by Pinyo
Tanwiset, familiar to residents as chairman of the Chonburi Provincial
Administration Organization, was launched with a host of dignitaries present
including Chanyuth Hengtrakul, MP for Chonburi Zone 6, Mayor Niran
Wattanasartsathorn, and Rewat Polluk-In, Pinyo’s deputy.
Four types of houses will be built to give locals a wider
choice in their style of accommodation. The types are Ban Ruankaew, Ban
Ruankwan, Ban Ruan Thai and Ban Ruanthong. The project will cost around 1
billion baht and the Thai-style houses will be built on an approximate area
of 100 rai.
Guests were entertained by a Thai musical show and dance in fitting with
the style of the project.
Thailand prepares
for Basle 2 Agreement
Finance Minister Thanong Bidaya on Sunday disclosed that
he had instructed the Ministry of Finance’s Fiscal Policy Office (FPO) and
the Bank of Thailand (BOT) to accelerate drawing up criteria that encourage
all financial institutions to operate business prudently in preparation for
a new international agreement on capital known as Basle 2.
He said he wanted to see all financial institutions
upgrade operations to those of prudent banking, like other financial
institutions in developed countries such as the United States and the
European Union (EU).
This would help set credit and operation ratings of the
financial institutions in the eyes of the public and the central bank, he
noted.
Dr. Thanong said the criteria would just be a guideline
for the institutions to adopt in order to improve operations.
The prudent banking criteria focuses on four standards,
including capital fund, capital adequacy, non-performance loans (NPLs)
management and organizational management.
He affirmed that these standards are part of the
framework of Basle 2 that could strengthen Thai commercial banks. The new
Basle accord is set to become effective in the next 3-4 years.
The minister conceded, however, that commercial banks
currently give more importance to asset value for collateral pledged than
cash flow, making them hold NPLs unsolved until the collateral value is
below the debt value.
He said the banks prefer lending to clients with enough
collateral and paid attention to their cash flow, although some cases might
have potential products and projects that could create working capital in
the future, said Dr. Thanong. (TNA)
SET index to edge up to 800 next year: top analyst
The Stock Exchange of Thailand (SET)’s index is
expected to edge up to touch 730 points by the end of this year and rise
further to 770-800 next year with fuel prices and interest rates still being
key pressing factors, according to a top securities analyst.
Yarnsak Manomaipibul, president of Bualuang Securities
Public Company Limited, said that for the next few years, the SET index
would be put under pressure due to oil price volatility and a
faster-than-expected interest hike.
Additionally, the outbreak of avian influenza in Europe
had fueled concern that the disease would spread into Asian countries,
including Thailand.
Given these factors, he forecast operating results of
listed companies this year would grow less than 10 percent against the
two-digit growth projected earlier.
However, he said, the planned listing of EGAT Public
Company Limited (EGAT)’s shares on November 30 is likely to improve the
investment sentiment on the Thai stock market because EGAT has a market
capitalization of up to 200 billion baht and sizable fund mobilization.
(TNA)
Oil bonds to be offered
to public first
Prime Minister Thaksin Shinawatra has urged the Energy
Ministry to consider offering oil bonds for sale to the public first,
following criticism that only a small handful of people managed to obtain
the latest bond issues.
The oil bonds offered recently by the ministry through
Kasikorn’s branches nationwide were totally subscribed within 10 minutes
of the banking opening, causing an outcry that most bonds were already
reserved for banks’ major clients.
Government Spokesman Surapong Suebwonglee said Tuesday
the premier noted that many financial institutions managed to subscribe oil
bonds in the latest offering.
He viewed that such conduct was deemed inappropriate
because the institutions brought people’s deposits for which they offered
an interest rate of 1-2 percent to buy the bonds, which give a return rate
of up to 5 percent.
So, the premier wants the Energy Ministry to consider
selling the oil bonds to the public first in the next bond offering. The
bonds would be offered to financial institutions only if they are left
unsold, said the spokesman. (TNA)
Cabinet approves more than 40,000 jobs for southern residents
The government kicks off its initiative to boost
employment in Thailand’s deep south by creating more than 40,000 jobs for
local residents.
The cabinet, at its weekly meeting here on Tuesday,
approved the job creation program of 42,000 positions for the workforces in
the country’s three troubled southernmost provinces of Yala, Narathiwat
and Pattani, as well as four adjacent districts in Songkhla Province, Deputy
Government Spokesman Danuporn Punnakan said in a press conference.
The job creation program for the 2006 fiscal year, which
began on October 1, divides into five categories. They include projects
initiated by Her Majesty the Queen (10,000 positions), projects to support
families of victims affected by insurgency in the southern border region
(2,300 positions), projects to promote community peace (11,810 positions),
projects to support vocational development of the local residents in general
(10,000 positions) and project reserved for urgent tasks (7,890 positions).
All those employed under the job creation program would
each receive a monthly salary of Bt 4,500 or about Bt 150 a day, said the
deputy government spokesman.
The comprehensive employment will use a budget of more
than Bt 2.2 billion out of the government’s initially earmarked Bt 5.0
billion fund to support the program.
The Office of the National Economic and Social
Development Board (NESDB) would assess the job creation program every four
months, the deputy government spokesman said.
Prime Minister Thaksin Shinawatra has suggested that
electronic identity cards, or Smart Cards, be used to support the
establishment of a local labor database of the residents in the deep South.
The cabinet on Tuesday also approved the extended
implementation of the executive decree in the three southernmost provinces
for another three months, from October 20, 2005 to January 20, 2006, due to
continuing violence in the region. (TNA)
|
