BUSINESS 
HEADLINES [click on headline to view story]: 

SCB sees slowdown in Thai economy until reforms implemented

THAI appoints True to provide Wi-Fi services in Executive Lounges

Tension rises between Galileo and THAI

FTI urges government to build Andaman Sea port

Industry Ministry to propose sugar deregulation to new minister


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)