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Labor Minister to establish fund for unemployed workers
Thailand’s Minister of Labor promised workers
demonstrating in front of his ministry that he would set up a fund to give
financial help to unemployed workers.
More than 100 unemployed workers, mainly women over 40 years old, gathered
in front of the Labor Ministry, demanding that the Social Security Law
Article 39 be amended since it requires unemployed workers registered with
the Social Security Fund to continue to contribute to the fund, even while
they are unemployed.
The demonstrators also asked the Social Security Office to apply profits
from the fund to create jobs and grant interest-free loans for unemployed
workers.
Another group of demonstrators also gathered at the ministry last Wednesday
- some 200 members of the workers’ union of Saint-Gobain Sekurit (Thailand)
Co. Ltd., an automotive glass supplier in the eastern seaboard industrial
estate province of Rayong, who have been in a lengthy dispute with their
employer.
The workers petitioned the Labor Ministry to negotiate with the employer to
increase their wages, bonuses, and other social welfare perks since they
failed to convince the company to do so despite 16 rounds of talks. The
union leaders vowed to increase pressure on the ministry until their demands
are met.
Labor Minister Somsak Thepsuthin promised the unemployed demonstrators he
would ask the Social Security Office to consider setting up a fund to
provide loans for them and give them a vocational and foreign
language-training course.
Meanwhile, he asked the Saint-Gobain Sekurit union members to be patient and
to continue waiting until their talks have satisfied all legal processes.
Somsak told the demonstrating workers that they could gather or sleep in
front of the Labor Ministry but asked them not to join the anti-government
rally led by media mogul Sondhi Limthongkul. (TNA)
Inflation rate
reaches 5.9% in January
Thailand’s inflation rate in January stayed at 5.9
percent, up 0.2 percent from that of December, pressed by surging fuel
prices, according to the Commerce Ministry.
Permanent Secretary for Commerce Karun Kittisataporn said that the inflation
rate rose moderately along with the oil price surge.
However, he believes the rate would stay at around 5.6-5.7 percent in the
first quarter of this year since the ministry is attempting to supervise
consumer product prices to ensure they stay at a fair level and volume to
make sure it meets people’s demands.
The ministry projects that the increase in city bus fares will fuel the
inflation rate by 0.2 percent. He views that prices of other products will
not edge up considerably because fuel prices will not be so volatile.
“As far as we can estimate, the inflation rate for the whole year will stay
at around 3.5-4.5% on the assumption that the gross domestic product (GDP)
grows at 5-5.5%, the Thai baht stays at 41 to the US dollar, the central
bank’s repurchase rate is at 4.5%, the crude oil price in Dubai at US$60-65
per barrel, and minimum wages range between 175 and 184 baht.
“In our view, fuel prices will have the most adverse effect on the inflation
rate. However, we project that oil prices will not be volatile this year so
the inflation rate won’t rise considerably,” said Karun. (TNA)
SEC rules premier’s children do not violate insider-trading code
The Securities and Exchange Commission (SEC) recently
ruled that Panthongtae and Pinthongta Shinawatra, son and daughter of Prime
Minister Thaksin, had not violated an insider trading code in their sale of
a major stake in Shin Corporation Public Company Limited to Singapore’s
state-owned Temasek Holdings last week.
“The regulator concluded that Ample Rich Investments sold Shin shares to
Panthongtae and Pinthongta at one baht each. Both parties own shares in the
company and bought them from themselves. They have not taken advantage of
anybody,” said SEC’s Secretary-General Thirachai Phuvanatnaranubala.
“Had they bought shares from other people without full disclosure, it could
have fallen under Article 241 on insider trading, but in this case, they are
not doing that,” he noted.
However, he said, the SEC is looking into an allegation that Panthongtae and
Pinthongta should have made a tender offer on part of the sale of the shares
if they had held more than 25 percent of the shares in a particular period.
He also affirmed that the SEC has not yet received information disclosure on
changes in the shareholding structure in Ample Rich Investments from the
premier’s children.
He said documents received by the SEC from persons involved with the company
on August 3, 1999 are not related to the change in the shareholders’
structure from 100 percent stake held by Panthongtae to 80 percent by him
and 20 percent by his sister.
Thirachai pledged that the regulator would definitely prosecute if there
were any wrongdoing. The SEC will treat this case using the same standards
that they would with any other cases, he said. (TNA)
Government E-auctions intended to curb collusion by bidders
Computer electronics-aided auctioning for procurement
plans of government agencies is believed to be able to help authorities
curb, if not completely eliminate, behind-the-scenes price-setting or other
collusion among bidders.
Comptroller General’s Department Director General Boonsak Jiampreecha said
that the government’s so-called E-auction system will be applied to some
1,600 procurement projects, each with a minimum value of two million baht.
Though the E-auction system may not be able to completely eradicate hidden
conspiracies among bidders, it will be able to deter and significantly
reduce the frequency and cost to the state of such malpractices in the
future.
Businesses learn of upcoming auctions by visiting government websites,
Boonsak said, and the E-auction process itself consumes only 30 to 60
minutes. A few minutes before bids close, bidders are asked to quote their
most competitive prices, said the chief of the Comptroller General’s
Department. During the bidding process, bidders are prohibited from
communicating with one another, though they may send representatives as
observers. Neither the name of winning bidders nor the winning price
quotations will be disclosed to the public.
The chief of the government unit which runs the procurement project will act
as head of the bidding committee while an outsider will be invited to join
as a member of the committee. (TNA)
US agrees to open fruit market for Thai exporters
The United States has agreed to open its market for Thai
radiated fruits, making Thailand the first country to win access to the
immense Northern American market, according to Agriculture and Cooperatives
Minister Khunying Sudarat Keyuraphan.
 Agriculture
and Cooperatives Minister Sudarat Keyuraphan
Last Tuesday, US and Thai agriculture authorities signed a memorandum of
understanding (MOU) for an operational framework of reciprocal practices in
safe radiation covering bilateral trade of radiated fruits, said Khunying
Sudarat. Under the MOU, Thailand is allowed to initially export six radiated
fruits to the US market. These fruits are mango, mangosteen, lychees,
longan, rambutan and pineapple.
“Thailand is the first trading partner the US has opened its market for
radiated fruit exports, as Washington has recognized the standardized safety
of the Thai radiation process on food products. This is beneficial to Thai
fruit exporters as they can earn up to Bt100 billion annually from their
shipments to the huge US market, which is linked to Canada based on the
Northern American Free Trade Agreement (NAFTA),” the minister told
journalists after witnessing the signing of the MOU.
“Thailand is likely to begin exporting radiated fruits to the US market by
September this year,” she added. Thailand will later ship more radiated
fruits to the US market, including papaya and coconut.
Khunying Sudarat said Thailand’s Office of Atomic Energy for Peace (OAEP)
can currently provide the country’s fruit radiation service at the capacity
of 20 tons per day.
When demand for the Thai radiated fruits considerably increases, the
ministry may invite private firms to provide the same standardized service
of the OAEP, instead of having the government make large investments, she
noted.
Washington believes that standardized radiation is the safest method for
people to consume pest-free fruits, according to Alan S. Green, director of
the US hygienic crop program, who signed the MOU with the Thai authorities.
“There is now increasing demand for tropical fruits on the US and Canadian
markets,” he said. “Washington hopes Thailand will also open the market for
US radiated fruits in the future,” he added. (TNA)
Thai exporters urged to accelerate upgrading product quality
Deputy Prime Minister and Commerce Minister Somkid
Jatusripitak urged Thai exporters not to worry about the strengthening Thai
baht, saying that they should instead give priority to upgrading the quality
of their products.
He said the recent appreciation of the local currency was not cause to worry
because the government is encouraging Thai entrepreneurs to produce products
whose quality meets market recognition.
Regardless of whether the Thai baht is weak or strong, Thai products could
still be sold on the market at an attractive price if the quality is
recognized.
“Japan is a model country where the currency value is no longer a matter of
concern. For instance, Japan’s melons tastes very good. People here are
willing to buy them regardless of how weak or strong the yen is.
“Thai exporters must try to develop their products like those of Japan,
instead of selling them in large amounts and gaining small profit margins
for each item,” he said.
Dr. Somkid added that China has attempted to replicate what Japan has done.
If successful, China would become a remarkable rival because its product
prices are already competitive, he said.
Chantra Purnariksha, director-general of the Department of Export Promotion,
said that both the commerce minister and Bank of Thailand (BOT)’s governor
believe that the Thai baht will only remain strong in the short term.
However, she said, it is necessary for parties concerned to closely monitor
the economic policy of the United States following the replacement of the
Federal Reserve chairman. She believes the overall picture of the local
currency movement will become clear in February and March. (TNA)
Government releases rice stock to support Thai exporters
The government released more than 700,000 tons of rice in
stock to support continuing Thai rice exports amid increased demand and
prices on the world market.
Deputy Prime Minister and Commerce Minister Somkid Jatusripitak approved a
plan in which Thai rice exporters were welcome to bid for a certain amount
of rice for their shipments overseas, according to Director-General of the
Department of Foreign Trade Rachane Potjanasuntorn.
“The move followed a shortage of rice supply in this year’s harvest amid
rising demand and prices on the world market,” Rachane told journalists.
“With the plan, local rice exporters can fulfill their overseas orders
without waiting for the next harvest,” he noted.
With the increased global demand, Rachane said, most of the Thai rice from
this year’s harvest has been exported. Rice in the government stock include
5 percent, 15 percent and 25 percent white rice.
Bidding of the rice was made in US dollars based on the free on board (FOB)
Bangkok price. Tenders were submitted at the Department of Foreign Trade in
Nonthaburi Province on the outskirts of Bangkok on January 31. (TNA)
Private bus operators given green light for new fare rise
The Ministry of Transport has given
the green light for private operators of both city and inter-province
passenger buses to raise their fares due to continuing rising fuel costs.
Deputy Transport Minister Gen. Chainant Charoensiri told journalists that
the ministry’s approval on the new bus fare rise was due to the fact that
the price of diesel now exceeds Bt24.50 per liter.
“For the past six months, the Ministry of Transport has asked private bus
operators to keep their fares unchanged, promising them that once domestic
diesel prices reached Bt24.50 per liter, they would be allowed to raise
their fares. Diesel price has now risen to Bt24.69 per liter, and the
ministry must keep its promise,” he explained.
“Forcing private bus operators to keep their fares unchanged amid continuing
fuel cost hikes may result in undesirable sub-standard services adversely
affecting the passengers,” he cautioned.
With this new approval, private city bus operators of both air-conditioned
and non-air-conditioned buses are allowed to raise their fares by Bt1.0,
while inter-province buses are allowed a fare rise of Bt0.03 per kilometer.
The new fare rise became effective February 6.
Whether or not there will be a fare raise for state run buses (Bangkok Mass
Transit Authority (BMTA) and the Transport Company Limited) will depend on
the decisions of their top executives.
Meanwhile, the inter-province private bus operators said they would consider
whether the approved fare rise of Bt0.03 per kilometer is acceptable. Their
earlier request was for Bt0.09 per kilometer, as their fuel costs now stand
at Bt0.14-0.15 per kilometer. (TNA)
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