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Kasikorn Bank named best-managed Asian commercial bank
Thailand’s second largest commercial bank, Kasikorn
Bank (KBANK) was named the commercial bank with the best management in Asia
by Euromoney Magazine in its November issue.
The world’s leading economic and financial magazine
surveyed analysts from Asia’s leading financial institutions and research
institutes on strategic planning of organizations and transparency of
commercial banks and financial institutions. The survey named KBANK,
formerly known as the Thai Farmers Bank, as having the best management in
Asia since it had outlined a strategic plan for its business performance in
a reliable, excellent, clear and viable manner. The bank ranked ninth in
Asia for its transparency in business performance and is Thailand’s sole
financial institution to have gained the recognition.
Among the top ten business organizations with the best
management in Asia, Thailand’s petroleum giant, PTT Plc, is ranked first
and Bamrungrad Hospital is ranked eighth. (TNA)
Energy Ministry allows oil stations to open 24 hours on New Year
To give people convenience for New Year celebrations, the
Energy Ministry has decided to allow oil service stations to be open 24
hours a day during December 29-January 5.
Energy Minister Viset Choopiban said the ministry relaxed
the incumbent closure of the oil service stations from midnight to 05.00 am
for eight days starting from December 29 to facilitate people’s travel
during the festival, promote tourism, and boost economic growth.
Next year, he said, the ministry would continue to
promote a campaign to save energy and boost alternative energy consumption
despite a forecast that crude oil prices would become stable and weaken from
that of this year.
It is projected the crude prices would hover around
US$45-50 per barrel and the fuel demand would increase by only 1.7 percent
because of the global economic slowdown.
He said that fuel demand would drop by 500,000 barrels
per day if the gross domestic product contracted by 1 percent. An interest
hike of each percent would push down the oil demand by 15,000 barrels per
day.
At present, oil reserves in the United States, Europe,
and Japan have increased along with a hike in production capacity of
refineries and crude refining of the Organization of Petroleum Exporting
Countries (OPEC).
Asked whether cooking gas prices would increase after the
year-end, Viset conceded that cooking gas prices would eventually be allowed
to float. (TNA)
New Year spending
set to rise
New Year season spending nationwide is set to rise almost
12 percent this year to an estimated 66 billion baht, with the people of
Bangkok outlaying almost half the total, according to a recent poll.
The survey, conducted by the University of Thai Chamber
of Commerce, asked 1,300 respondents how they would spend their money during
the festive season.
Of the 66 billion baht total, 13 million baht would be
spent on general goods; 12 billion baht on New Year celebrations; 12 billion
baht on merit-making activity; 7 billion baht on luxury goods; 8 billion
baht on domestic tours; and 2 billion baht on overseas travel.
Top destinations for many domestic tourists include the
provinces of Chonburi, Chiang Mai, Nakhon Ratchasima and Loei.
Would-be travelers also nominated the southern provinces
of Surat Thani and Pattalung in the Gulf of Thailand as their favorite
destinations, dethroning last year’s chart topper - the resort island of
Phuket.
People in the provinces are expected to spend around 34
billion baht, compared with 31 billion baht by the residents of Bangkok.
Festive season spending last year totaled 59 billion
baht. (TNA)
China-Thailand meet to wipe out trade obstacles
Thailand and China have begun a joint meeting here to
strengthen ties and remove trade barriers, hoping to increase bilateral
trade under the free trade area (FTA) framework.
Presiding over the seminar on Sino-Thai Trade, Investment
and Economic Cooperation in the northernmost province, Deputy Transport
Minister Preecha Laohapongchana said the meeting would focus on the fruit
and vegetable trade between the two countries.
He said Yunnan Governor Liu Ping led a team of more than
100 businesspeople for talks on greater cooperation on trade and investment
issues. Negotiations centered on problems associated with the import and
export of fruit and vegetables.
Sino-Thai trade under the FTA has increased to more than
US$8 billion in the first 10 months of this year, from $7.12 billion since
October 1, 2003.
Preecha said the continuing cooperation and visits by
delegations from each side would help boost bilateral trade and investment,
and ease possible misunderstanding of the agreement and obstacles to trade.
“We believe each seminar and mutual visit by the two
sides will help increase the value of trade and investment up to $50 billion
and $5-6 billion respectively, as targeted in the next five years.
“It will also help raise the number of tourists up to
four million in the period,” he said. Preecha expressed confidence that
the establishment of the Sino-Thai FTA would not put Thailand’s trade
balance in deficit as many had feared. He said Thailand had enjoyed a
surplus with China of more than nine billion baht in the fruit and vegetable
trade since the FTA was established in October 2003. (TNA)
Honda to open 2.4 billion baht regional R&D center
Honda has announced plans to invest 2.4 billion baht in a
Bangkok-based regional research and development center.
The Honda R&D Asia Pacific center will open in a
suburb of the capital in 2007, said Honda Senior Vice President Motohide
Zudo.
The Asian Honda Motor Co. regional center will work on
auto parts made in Thailand and other countries in the Southeast Asian
region.
Given an annual production of 1.7 million multi-purpose
engines for automobiles, Thailand is the world’s largest exporter of Honda
engines, including the newly assembled 25cc and 35cc units.
In Thailand, the Japanese automaker has sold 1.4 million
motorcycles and 60,000 sedans this year. It plans to earn 85 billion baht in
sales of motorcycles, automobiles, auto engines and auto parts next year,
compared with 66 billion baht this year. (TNA)
Government uses taxes to boost Thailand’s competitiveness and investment
The government will use tax incentives to boost
competitiveness of Thai industries and investment of listed firms on the
Stock Exchange of Thailand (SET), Government Spokesman Surapong Suebwonglee
announced.
Dr. Surapong told journalists that the cabinet, at its
official meeting in Thailand’s northern province of Sukhothai, approved
three major tax incentive measures proposed by the Ministry of Finance.
The three tax measures, aimed to help boost
competitiveness and investment of the country’s private sector, include
import tariff cuts to zero percent for production of local electric and
electronic industries and local printing industry, namely raw materials,
capital goods and even textbooks.
The first two measures are also aimed at promoting
Thailand as a regional manufacturing hub for electric and electronic
products, as well as a regional center for printing services in the future.
The last measure is a special corporate tax reduction for
local firms, particularly those listed on the Thai stock market during
January 1, 2006-December 31, 2010 to encourage them to invest in new capital
goods for their expanded investment projects.
Finance Minister Thanong Bidaya said the government
regards the three major tax measures as a New Year present for local
entrepreneurs.
Meanwhile, Deputy Government Spokeswoman Sansanee Nakpong
told journalists that the cabinet also approved a Ministry of Agriculture
and Cooperatives plan to distribute cattle (bulls and cows) to one million
households of Thai farmers over the next three years.
Under the plan, 500,000 cattle would be distributed to
250,000 households of local farmers in 2006, 700,000 cattle to another
250,000 households in 2007 and another 800,000 cattle to 400,000-500,000
households in 2008, she said.
The plan is aimed at helping local farmers to raise
high-quality cattle to not only increase their incomes, but also improve
their quality of life and status. (TNA)
FTI eyes foreign partners for alternative energy production
The Federation of Thai Industries (FTI) plans to attract
foreign partners to co-invest over Bt10 billion (US$250 million) in
alternative energy production within the next two years.
FTI also signed an agreement with nine Rajamangala
technical universities countrywide to join in research and development of
alternative energy and training personnel for the field.
According to a news release, FTI’s alternative energy
industry ‘club’ will invite foreign companies to invest or co-invest in
alternative energy production, following the lead of foreign companies which
have already entered the Thai energy industry.
A recent British investment centers on producing
electricity from collected waste. Next year a Chinese private company will
invest in ethanol production, the FTI release said, while a private American
firm wants to invest in biodiesel.
The plan would benefit Thailand in terms of new sources
of alternative energy, increased employment and technology transfer. The
proposed activities would expand groundwork for the sustained development of
alternative energy in Thailand.
The framework agreement included the cooperation on
energy plant research and development and alternative energy that would lead
to commercially based cooperation called Public Private Partnership (PPP).
The cooperation would also cover research and development
on equipment and tools related to the alternative energy, and promote
technical cooperation. (TNA)
Home loans likely to rise further despite upward interest trend
Home mortgage loan extension next year is expected to
grow to more than 300 billion baht despite the upward interest trend,
according to an industry executive.
Kitti Pattanapongpibul, president of the Housing Loans
Association, projected local interest rates would increase by around 1.5
percent next year. So, he wants the government to control the inflation rate
and reduce it from its current 6 percent to 2-3 percent, close to those of
rivals and neighboring countries including the United States, Malaysia and
China.
Should the inflation rate be allowed to stay high at 6
percent, he said, the Bank of Thailand is likely to raise the policy
interest rate and commercial banks might increase lending rates up to 8
percent.
He said the interest rate movement also depended on how
much the country would experience a trade deficit from the implementation of
mega-infrastructure projects.
“Should the trade deficit increase, the government will
have no choice but to raise interest rates or allow the baht to weaken.
“Next year, real estate loans are expected to grow on
par with the property market growth at around 10%. Home mortgage loan
extension is likely to rise to 300 billion baht, 10% of which are
refinancing loans,” he said. (TNA)
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