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PM to lead war
on corruption
Prime Minister Thaksin Shinawatra announced last week
that he himself would lead a war on corruption this year, while assigning
certain cabinet members to take responsibility for other key issues.
The prime minister told the Thai cabinet at its official meeting in the
country’s northeastern province of Loei that he had divided government
policies into three main categories this year. They include those in the
economic, social as well as political and state administrative sectors.
The division is aimed at encouraging every ministry under each of the three
categorical sectors to be able to focus on overhauling their management and
operational strategies to keep pace with fast changing world situation.
The premier assigned Deputy Prime Minister and Commerce Minister Somkid
Jatusripitak to be in charge of the micro and macro economic sectors and
service sector, Deputy Prime Minister and Industry Minister Suriya
Jungrungreangkit to be in charge of the industrial sector, Finance Minister
Thanong Bidaya to take responsibility for the development of local financial
institutions and Agriculture and Cooperatives Minister Khunying Sudarat
Keyuraphan to be responsible for the agricultural sector, according to
Government Spokesman Surapong Suebwonglee.
The prime minister instructed the ministers to form their teamwork within 30
days and begin to take action so that substantial improvement in the sectors
would be seen by the end of this year.
Policies in the micro economic sector include reduction of state budgets in
the Bt30 per hospital visit scheme, debt restructuring for farmers,
controlled pricing of chemical fertilizers and management of organic
fertilizers in each district scheme.
They also include promotion of alternative energy, namely bio-diesel and
natural gas for vehicles (NGVs), as well as the One Tambon, One Product
(OTOP) scheme, the one million cattle project, development of the capital
market, increased efficiency of state enterprises and village fund project,
and the Bangkok Fashion City scheme.
Policies in the macro economic sector include the Asia Bond scheme, the
nationwide energy conservation drive, free trade areas (FTAs) negotiations
and overall economic and industrial restructuring.
Policies in the social sector are the war on corruption, drugs, influential
figures, and human trafficking, the eradication of vices, namely
pornography, non-creative on-line games, as well as the improvement of
traffic congestion in Bangkok and its surrounding areas and road accident
reduction. Also targeted is the nationwide eradication of poverty, the
development of science and technology, local education and support for food
safety schemes and improvement of broadcast programs, particularly
television and radio for youths.
Policies in the political and state administrative sector include the
development of the overall fiscal and financial systems, the Smart Card
identity card scheme, the expansion of mass transit systems, the eradication
of slums and the development and utilization of information communication
technology (ICT) for the public, as well as support of decentralization and
legal reform.
Thaksin announced that he himself would take responsibility for the war on
corruption, which is part of the state social policy. (TNA)
BOI chief upbeat about applications for investment promotions
Applications for investment promotions this year are
likely to reach 800 billion baht as targeted since investors are still
confident of the country’s sound economy, according to the Board of
Investment of Thailand (BOI).
BOI’s Secretary-General Sathit Sirirangkamanond said that he was confident
the application target set for this year would be reached when compared with
last year’s applications that surged to 716 billion baht.
He conceded that last year saw an influx of negative factors, including
surging oil prices, bird flu outbreak and drought, but the country’s main
industries such as petrochemicals, vehicle, electronics and electrical
appliances continued to grow.
It showed that the country’s fundamental economy remained strong. More
importantly, foreign investors, who have shifted capital into Thailand, have
paid attention to the overall picture of the Thai economy, not individual
factors.
“Given many factors, we are confident that applications for investment
promotions set for this year at 800 billion and one trillion baht within the
next 3 years will be reached unless there are new negative factors,” he
said.
“Policies on political and economic platforms, as well as mega-projects
delivered by Prime Minister Thaksin Shinawatra will also increase confidence
among investors,” he added. (TNA)
Baht likely to reach 38 to the dollar in first quarter of this year
The Thai baht is likely to appreciate to 38 to the US
dollar in the first quarter of this year because investors in the United
States have shifted funds to invest in stock markets in Asia, and weighed
more investment in Thailand, according to a veteran banker.
Prasong Uthaisaengchai, senior executive vice president of Bangkok Bank,
said that US investors had sold dollars heavily and brought the money to
invest in stock markets with more attractive returns since the US Federal
Reserve signaled an end to its interest hikes following continued upward
adjustment for up to 18 times.
Most investors paid much attention to investing in Asian stock markets,
resulting in the strengthening of all regional currencies, including the
Thai baht.
He said the Thai currency had rapidly appreciated this year because foreign
investors brought a lot of funds to invest in the Stock Exchange of Thailand
(SET). They view that stock prices in Thailand are lower than those in other
Asian markets.
The price/earning (p/e) ratio of the SET now stays at 8-9 times, while a p/e
ratio of stock markets in neighboring countries average 13-14 times.
“The baht is very likely to strengthen to 38 to the US dollar in the first
quarter of this year because the currency has rapidly appreciated in the
first two weeks of this year.”
With the strengthening of the baht, Prasong said, the country’s
international reserve has increased to around US$54-55 billion baht. The
Bank of Thailand (BOT) has a duty to supervise the baht to ensure that it
stays at an appropriate level, according to the veteran banker. (TNA)
Government warned of
possible impeachment
if it bypasses parliament in FTA deal
The Free Trade Area agreement that Thailand is
negotiating with the US has implications on Thailand’s sovereignty and if
the government bypasses the Parliament in the processing of finalizing the
agreement, it could be impeached, a veteran lawyer warned.
Lawyer Kanin Boonsuwan, a member of the now-defunct Constitution-Drafting
Council, which drafted the current Constitution, said the Thai-US FTA
agreement incurs commitment of the country and several laws ought to be
amended to comply with it.
All these have implications on the State sovereignty as defined by the
Constitution. Therefore the government must seek parliamentary approval to
enter into the FTA deal with the US, he said. Agreeing to the FTA without
parliament’s approval would mean the government breaches Section 303 of the
Constitution and is liable to impeachment. Kanin urged Prime Minister
Thaksin Shinawatra to think through this matter carefully. (TNA)
Finance minister certain
that stronger baht stems
from long-term capital inflow
Finance Minister Thanong Bidaya attributed the continued
strengthening of the baht to recent foreign capital inflow, and expressed
confidence that it would be long-term capital. The baht appreciation was
boosted by the capital inflow of tens of billions of baht from foreign funds
into the Thai stock market.
Normally, he said, foreign investors opt to invest in a big lot once a year
in markets that offer attractive returns. These are generally long-term
investments that could increase the funds’ asset value.
Such investments are different from that of small investors who prefer
speculation in a short term. However, he conceded, the Stock Exchange of
Thailand’s index could dip if foreign investors begin to withdraw their
investment.
Dr. Thanong said most foreign analysts including Morgan Stanley had
overweighed investment in the Thai bourse since they viewed that the country
managed to solve economic woes to a great extent in the second half of last
year.
He said most stocks that interested foreign investors are blue-chips in the
banking, energy, and communications sectors.
He believes investors would continue to invest more in the country if the
economy remained sound. (TNA)
Thailand takes US to task over intellectual property rights stand
Intellectual property rights protection has become the
latest stumbling block in the current round of negotiations for a Thai-US
Free Trade Agreement (FTA), with Thailand complaining publicly about the
Americans’ stand.
In order to conclude the FTA pact, the United States negotiating team has
been demanding that Thailand extends protection to a range of industrial
property rights, including patents and copyrights, beyond those demanded by
the World Trade Organization. In return, Thailand has said it wants the
United States to recognize other types of intellectual property rights
protection that are important to Thailand, such as traditional knowledge and
safeguards against bio-piracy.
The Thai negotiating team has issued a statement expressing disappointment
at what it deems to be the US side’s failure to address Thai concerns and
its rejection of Thai proposals about intellectual property rights. Apart
from protection of traditional knowledge, Thailand wants a benefit-sharing
arrangement in case of bio-resource use in patenting. It has also called for
more flexibility on the compulsory licensing of patented drugs to ensure
Thais have access to affordable medicine. (TNA)
Thai trade deficit set to hit 12 billion dollars in 2006
Thailand will suffer a second consecutive annual trade
deficit this year, amounting to 12 billion dollars, according to a forecast
by the Center for International Trade Studies of the University of the Thai
Chamber of Commerce.
Center Director Ath Pisalwanich said exports this year would grow 13.9
percent, compared with 15.2 percent in the previous year due to global
economic trends.
At the same time, imports are expected to total nearly 139 billion dollars,
up 17.2 percent from 2005. They will be mostly energy and capital goods.
This is expected to result in a 6.7 billon dollar deficit, accounting for
about 3.3 percent of gross domestic product.
In key commodity exports, the center forecasts that Thailand should export
2.5 billion dollars worth of rice, up nearly six percent in value compared
with 2005. However, the export market for rice is intensely competitive with
a projected increase in total world output and with pricing competition from
other key rice producing nations such as Vietnam, India and the United
States. Major markets for Thai rice such as the Association of South East
Asian Nations (ASEAN), China and the European Union (EU) are also projected
to buy than they did last year.
Thai rubber exports are projected to grow slightly at 4.4 percent,
generating an export value of 3.9 billion dollars, compared with a 9.4
percent growth in 2005 over the previous year.
Export of tapioca products are expected to grow 11.4 percent to achieve an
export value of 944 million dollars, according to the center.
Garment exports are expected to total 3.5 billion dollars this year as Thai
garment makers will be able to add value of their products destined to the
US, the EU and ASEAN.
Exports of electrical and electronic goods are also projected to grow, along
with cars and auto-parts. (TNA)
Poll signals political doldrums, economic worry
A poll has shown that only some, not a
majority, of Bangkok respondents favor Prime Minister Thaksin Shinawatra
over his arch rival Abhisit Vejjajiva, leader of the main opposition
Democrat Party, for the premiership.
Forty-three percent of Bangkok residents think that Thaksin is the best man
for the job, while 57 percent do not think so. Nonetheless, support for the
prime minister lead the Democrat favorite by a 3:2 ratio.
The premier’s low rating is significantly higher than that of his Democrat
party rival’s, but the figures might indicate a lack of confidence in the
political cast of characters.
Over half the respondents - 53.9 percent - are worried about the economy in
the year ahead. Despite the political promises being made, they indicated
that they do not have full confidence in the Thai economy for 2006.
The respondents indicated that Thaksin is more suitable for the post of
prime minister than Abhisit. The prime minister received a 42.8 percent vote
while the Democrat leader received only 28.1 percent.
The ABAC poll, conducted by Assumption University Jan 6-7 among 1,251
Bangkok residents aged 18 or over, showed that Thaksin, head of the ruling
Thai Rak Thai Party, easily netted 97.4 percent for being a knowledgeable
and competent person, 92.5 percent for recognition by foreign investors,
91.7 percent for his ability to make quick decisions, 89.1 percent on
possessing working experience, 88.5 percent for intelligence, and 51.6
percent for having a democratic spirit.
Regarding Abhisit, the respondents awarded him 89.7 percent for his
politeness, 80.7 percent for his prudence, 80.6 percent for human relations,
78.2 percent for his democratic spirit, and 58.9 percent for his initiative
on ideas. (TNA)
Chang brewer asked to reconsider decision to list on Singapore market
The Stock Exchange of
Thailand’s President Kittirat Na Ranong called on the board of Thai Beverage
Public Company Limited, producer of Chang beer, to reconsider its decision
to list its shares on the Singapore Exchange.
He said the listing of the company’s shares on the Singapore stock market
would deprive Thailand of business opportunities and activities worth
several billions of baht.
For instance, SET will lose 500 million in annual revenue from fees of
trading of the company’s shares and Thais will not benefit from dividends of
the shares.
He said the amount of money is valuable because it could be brought in as a
form of tax to develop the country. Because of this, he wants the company’s
board to reconsider the decision to list on the Singapore Exchange and give
the SET an opportunity to proceed with the listing of the company’s shares.
He believes Thai Beverage had intended to list on the SET because it is a
Thai-owned company. Kittirat said he did not believe the company decided to
list on the Singapore bourse because it intended to press the Securities and
Exchange Commission (SET) to accelerate listing its shares on the SET.
Rather, the company’s decision to do that most likely came from obstacles or
problems it faced from trying to list on the Thai stock market, he said,
adding that he still believes in the standard of SEC’s performance.
“I still have faith in SEC’s performance and believe Thai Beverage still
loves Thailand. As a Thai, I know the company has high profits and sizable
market capitalization. So, I want the firm’s board to review its decision
and give the Thai capital market an opportunity. “My request is made with
the company’s board members as a whole, not with Charoen Siriwattanapakdi,
the board’s chairman,” he said. (TNA)
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