SCB sees slowdown in Thai economy until reforms implemented
Narisa Nitikarn
The Siam Commercial Bank predicts the Thai economy will slow down over the
next two to three years as new administrative reforms are put into place
following the military coup.
Dr
Veerathai Santiprabhob, division head, Business Bank – Strategic Planning
Division talks about the Thai economy in 2006.
The state of the economy was discussed during a Siam Commercial Bank
business banking seminar on October 12 at the Dusit Resort, with Dr
Veerathai Santiprabhob, head of the business banking strategic planning
division, Dr Pakorn Peetathawatchai, head of the treasury division, and Dr
Vivat Kittiphongkosal, head of the business banking division as key
speakers.
More than a hundred business people from Chonburi, Chachiangsao and Pattaya
attended the seminar.
Dr Veerathai spoke of economic trends towards 2007, saying that the effects
of the administrative reforms should be closely monitored as should
international trade embargos.
China and India will be the major global economic driving forces in the next
five years because of major investments that will pour into those countries
and increase their manufacturing potential. Meanwhile, investment in
Thailand will slow down over the next two to three years as a result of the
administrative reforms.
Market strategists envisage that in 2007 the Thai economy will see a growth
of 3.5 to 4.5 percent, provided by exports, government expenditures and
income from the agricultural sector.
THAI appoints True
to provide Wi-Fi services
in Executive Lounges
Seen above signing the contract
are: Mrs. Rhatchya Pamon-montri (2nd from left), Managing Director of Customer
Services Department, Thai Airways International Plc and Mr. Thiti Nantapatsiri
(2nd from right), Managing Director Home/Consumer Solution & hi-speed Access of
True Corporation Plc.
Thai Airways International PLC has signed an agreement with
True Group to provide Wi-Fi- services and computer facilities for the airline’s
Royal Executive Lounges, covering a total area of over 13,000 square meters at
Bangkok’s newly opened airport.
All of Thai’s Royal Executive Lounges now feature Wi-Fi Internet access via
True’s Wi-Fi network, which is the largest in the country numbering 3,000 hot
spots nationwide.
Both Thai’s Royal First class and Royal Executive class passengers can now enjoy
seamless hi-speed wireless connectivity to the Internet with speeds of 1Mbps.
For added convenience, no user authentication is required.
Tension rises between Galileo and THAI
The spat between Thai Airways International (THAI) and
Galileo over the national carrier’s abrupt decision to cancel its domestic
ticketing contract with the travel service provider has reached a boiling point.
THAI fired the latest salvo last Monday when it said a planned meeting between
the two parties at the end of this month had been cancelled due to Galileo
continuing to involve the media and agents in the matter.
Thai Airways International executive vice-president for commercial, Mr. Wallop
Bhukkanasut, said Galileo kept on “persisting on getting the press and agents
involved.”
“The environment is not good; the atmosphere is not good. So we won’t be going
ahead with the meeting.” Mr. Wallop said Galileo was the only party protesting
over the decision to end the deal effective September 30.
Mr. Wallop said: “We have the right to preserve costs for domestic. It’s been
that way for a long time without a problem, until interference from Galileo and
its GSAs forced us to open up. The domestic ticketing cost is double what we’re
paying. We only took back what was rightfully ours in terms of cost control.”
He said THAI was not considering ceasing its global deal with Galileo, but added
“our contract under that agreement stipulates that either side can terminate the
agreement without cause with notice of 60 days.”
Travelport, which owns Galileo, said THAI had not informed it about the meeting
being cancelled. Travelport managing director Asia, Mr. Simon Nowroz, said,
“It’s disappointing being in this state with Thai Airways International. The
decision (to terminate the contract) was made unilaterally - we were not
consulted in this process.” (TTG)
FTI urges government
to build Andaman Sea port
The privately run Federation of Thai Industries (FTI) has
asked the government to construct a deep sea port on the Andaman seaboard to
help boost exports, a senior FTI official said.
Mr. Payungsak Chartsuthipol, deputy chairman of FTI, said that such a seaport is
required to facilitate trade in the Indian Ocean region.
The Thai government should also look to expand the commercial marine fleet and
shipbuilding industry in the south of the country, he said, as both could help
to reduce transportation costs and make Thai exports more competitive.
Currently, Thailand has to contend with sea transportation costs at a rate 60
per cent higher than Malaysia and 100 per cent higher than that of China, he
said. By having a commercial maritime fleet and a deep sea port on the Indian
Ocean or the Andaman Sea, local exporters will pay less for goods transported to
some markets.
The deep sea port, if constructed, will help boost exports to countries in South
Asia, especially India which is now enjoying sustained economic growth, he said.
Mr. Payungsak also said that electronics manufacturers had informed the
government that Thai producers are suffering from sub-standard foreign parts
imports, which have flooded the country as Thailand has only imposed
standardization on 19 categories of goods. The FTI is therefore now calling for
the government to issue more stringent goods standards.
Thailand should also look to accelerate the introduction of a product liability
law, aimed at forcing importers to be responsible for the goods they bring into
the country, and to carry liability if the goods are hazardous to human health.
Importers must also possess a valid import license to prevent them from
importing substandard quality goods into Thailand, he said.
The FTI deputy chairman also asked the government to reduce electricity fees
during peak hours between 6pm and 9pm (1800 hours-2100 hours) to assist business
operators in lowering their production costs. (TNA)
Industry Ministry to propose sugar deregulation to new minister
Thailand’s new Minister of Industry will be advised to deregulate the sugar
trade.
Permanent-Secretary for Industry Chakramon Phasukavanich told reporters
recently that he has prepared a shortlist of urgent issues for the new
industry minister to consider, and sugar is near the top of the list.
Among the most urgent issues for the new minister’s attention is the
recommendation that Thailand cease regulating the sugar trade, starting with
freeing up the price. This would mean the commerce ministry will have to
remove sugar from the list of controlled goods, Mr. Chakramon explained.
The deregulation recommendation would not affect the current arrangement of
the 70 and 30 revenue-sharing formula between sugarcane farmers and sugar
refineries.
Seen to be just as urgent as the sugar trade issue is the need for the new
minister to inspire investor confidence in light of the recent political
changes. Mr. Chakramon said some foreign investors are expressing doubts
regarding the policy of self-sufficiency and what impact that will have on
the Board of Investment (BoI) policy of granting investment privileges.
The BoI will be content with promoting Bt.400 billion, (US$10.7 billion)
worth of new investment this year, against the target of Bt.500 billion,
(US$13.3 billion), he said.
Mr. Chakramon said he also intends to seek the views of the new minister
regarding the policy on incentives for production of eco-friendly cars.
(TNA)
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