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Thailand suffers trade deficit
of US$3 billion in 1st trimester of 2008
Thailand suffered a trade deficit of about US$3 billion during the first
four months of 2008, the highest since 2003, according to Siripol
Yodmuangcharoen, permanent secretary for Commerce.
Imports during the period totaled US$58.8 billion, an increase of 39.7 per
cent from the corresponding period of 2007, while exports stood at US$55.5
billion, up 22.2 per cent, said Mr. Siripol.
During the first four months of 2008, the country suffered a total trade
deficit of US$2.99 billion compared to a trade surplus the previous year of
US$3.5 billion, he said.
The sharp deficit incurred between January-April, 2008 resulted from heavy
imports of energy and gold, Siripol said. In April this year, Thailand
imported gold valued at US$536.85 million compared to only US$75.03 million
in April 2007.
Despite the trade deficit in the first four months, the Commerce Ministry is
still confident that exports growth this year will meet projections of some
12.5-15 per cent, equivalent to US$170 billion. (TNA)
Bangkok Bank offers cost effective new channel for transferring funds from the US to Thailand
Bangkok Bank Senior Vice President for the Global Payment
Services Department Thanit Sirichote said the bank has opened a new channel for
transferring funds from the US to Thailand using the US Automated Clearing House
(ACH). The service will help senders to save on transfer fees as the cost will
be reduced by around US $15-20 per transaction.
The funds will be directly deposited into the recipient’s accounts in Thailand,
who will also gain the benefit of a better exchange rate, as the funds in US
dollars will be converted into Thai baht at the daily exchange rate of Bangkok
Bank.
“Bangkok Bank is the first bank in Thailand to introduce this service which
connects the ACH system, which is the electronic payment system in the US, to
the network of our New York branch and branches in Thailand. The service will
benefit three customer groups – customers with deposit accounts with banks in
the US who need to transfer funds to Thailand, those receiving regular payments
via cheque from the US government or private agencies, and businesses with
online services who receive their revenues from internet payment service
providers,” Thanit said.
Mr. Thanit said transferring funds from the US to Thailand via this channel is
cheaper than using other electronic channels because the funds will be
transferred via the US domestic network to Bangkok Bank’s branch in New York
which will then deposit the funds directly into customers’ accounts at Bangkok
Bank. This is cheaper and faster than transferring the funds on the SWIFT
network via correspondent banks.
Customers with deposit accounts at banks in the US can transfer funds via the
internet banking service of their US banks. Customers in Thailand who wish to
receive regular payments via the service can contact their Bangkok Bank branch
in Thailand where the staff can guide them through the application process
including preparing supporting documents to instruct their payee organizations
to transfer the funds via the ACH system. On-line business operators can
register with their internet payment service providers to receive their payments
via the ACH system.
Customers interested in receiving payments via the ACH system can find more
details about the service and application process from Bangkok Bank’s website
www.bangkokbank.com including step-by-step advice on how to register for the
service. They can also call Bangkok Bank’s New York branch on telephone (1-212)
422-8200.
Deutsche Bank captures nearly 25% of FX
trading volumes in Asia
Deutsche Bank announced last week that it is responsible for
nearly 25% of all foreign exchange market turnover in Asia, according to the
definitive annual FX survey conducted by respected capital markets publication,
Euromoney.
According to the 2008 Euromoney FX Poll, which gathers information from over
9,800 corporate and institutional foreign exchange clients globally, Deutsche
Bank’s market share in Asia grew to 24.08% from 21.74% in 2007.
Ornkanya Pibuldham, Co-Head of Global Markets for Deutsche Bank in Thailand,
says Deutsche Bank has increased market share this year as its clients turned to
the Bank for currency solutions during the recent period of high market
volatility.
“Companies and investors in Thailand have faced a challenging 12 months due to
the extreme weakening of the US dollar and the rising cost of many commodities.
They have therefore been actively looking for foreign exchange solutions and
it’s been a great privilege to have provided this advice”.
Peter Clarke, Head of Foreign Exchange Sales for Asia at Deutsche Bank, says
that recent market volatility has meant clients have required the close support
of an experienced and locally-based partner.
“Because Deutsche Bank has a local trading floor in Thailand and is a leading
provider of liquidity to the Thai financial system, we have been particularly
relevant to local companies and investors. Our proximity and experience makes
Deutsche Bank a strong partner during extreme market events, as witnessed over
the past 12 months.”
The Euromoney 2008 FX poll also found that Deutsche Bank was the leading FX
house globally, accounting for 21.70% of all market turnover, up from 19.3% in
the 2007 survey. The survey reported a 40% increase in global market foreign
exchange turnover in 2008, up from USD125 trillion in the 2007 survey to USD175
trillion in 2008.
‘Plastic credit’ rises
sharply in 1Q08
Continued rising inflation in Thailand has encouraged
increased consumer spending using locally issued credit cards during the first
quarter of 2008, according to a new survey by Kasikorn Research Center, which
indicates that spending increased to about Bt197.34 billion, up 14.4 per cent
from the corresponding period of 2007.
The survey said besides the sharp jump in commodity prices, diesel prices during
the January-March period soared 70 per cent year-on-year while some goods prices
rose 30 per cent from before.
Inflation during the first quarter this year advanced to 5 per cent, up from 2.3
per cent in the same period last year, it said.
Meanwhile, outstanding credit being carried by plastic cards during the first
quarter 2008 amounted to about Bt174.76 billion, up 5 per cent compared to 4.8
per cent in the first quarter last year, the report said.
However, if the increase of 5 per cent is compared to the last quarter of 2007
then outstanding balance of credit would have fallen to 2.5 per cent as card
issuers decided to remove bad debts from their system faster, it said.
Moreover, cardholders also paid higher volumes of cash on their outstanding
balances after the Bank of Thailand increased the minimum payment on the
outstanding amount by cardholders to 10 from 5 per cent.
The Kasikorn Research Center said some credit card issuers would probably
stimulate cardholders to spend more during the Euro Cup 2008 football event
which starts June 7. They are expected to launch joint campaigns with
entertainment places, restaurants and department stores. (TNA)
Powerful new Scandinavian / Thai alliance
(Left-Right): Peter Smith,
Director AA Insurance Brokers is pictured
with Thomas Söderström, Director Euro Benefit Group and Malcolm Scorer, Director
AA Insurance Brokers.
AA Insurance Brokers and Euro Benefit Group recently
announced the signing of their new business alliance to provide insurance
products and services to the Scandinavian community.
Euro Benefit Group specialise in providing a full range of services to
Scandinavians throughout the world, especially those seeking to relocate to
foreign shores, including Thailand.
AA Insurance Brokers meanwhile are one of Thailand’s leading insurance
specialists with offices in various locations throughout the Kingdom.
Local oil prices likely
to top Bt40 per litre
Thailand’s domestic gasoline and diesel prices are projected
to reach 43-44 and 40-41 baht per litre respectively in the second half of this
year, according to Manoon Siriwan, a leading oil industry analyst from Bangchak
Petroleum.
He said that crude oil prices in the United States market were hovering around
US$130 per barrel after hedge funds speculated upon news reports that Goldman
Sachs, the world’s largest investment bank, estimated the price would reach $141
per barrel in the second half of this year.
Simultaneously, while oil production capacity in Mexico and Russia had fallen,
the demand for fuel in many countries, including China, India, and ASEAN, had
increased.
Also, it is believed the US economy has already bottomed out after having
suffered from the sub-prime mortgage lending woes.
Should the world crude price rise to $141 per barrel as projected, he said,
Thailand’s domestic gasoline and diesel prices will reach a range of 43-44 baht
and 40-41 baht per litre.
Manoon predicted that local oil dealers would raise fuel prices further because
the market margin of diesel remains in deficit and that of gasoline is hovering
at only around 1 baht. (TNA)
ASEAN+3 holds nuclear energy workshop in Bangkok
Energy experts from the 10-member countries of the
Association of Southeast Asian Nations (ASEAN) plus China, South Korea and Japan
will meet in the Thai capital next month to discuss nuclear energy and
bio-fuels, Thai Energy Minister Poonpirom Liptapanlop said last Saturday.
The ASEAN+3 Forum on Nuclear Energy Safety workshop will be held June 16-17
while the East Asia Summit (EAS) Workshop on bio-fuels will be held June 18-20,
said Mrs. Poonpirom.
More than 300 energy experts from those countries will participate in the
workshop and exhibition on nuclear energy which is expected to demonstrate an
ideal, sustainable alternative energy for ASEAN and East Asia regions, she said.
The upcoming workshop will also display the strong determination of Thailand and
its fellow members of ASEAN in reducing global warming due to emissions of
greenhouse gases and the use of fossil fuels, said Poonpirom.
Results of the meeting will be discussed in detail at the ASEAN+3 ministerial
meeting to be held in Thailand in August, she added. (TNA)
Dubai World keen on investing in Thai property sector
United Arab Emirates-based Dubai World chairman Sultan Ahmed
bin Sulayem last Saturday conferred with Thai Prime Minister Samak Sundaravej,
expressing the interest of his business group to invest in Thailand’s property
sector.
The sultan told the PM that the UAE prime minister wished to visit Thailand in
the near future and thanked the Thai government for allowing his group to
conduct a feasibility study for the land bridge project in Thailand, according
to Pongthep Thepkanchana, spokesman for former prime minister Thaksin Shinawatra
who invited the Dubai World chairman to visit Thailand.
Under the project, deep sea ports as well as communication and transport
networks would be built to link the Andaman seacoast and the Gulf of Thailand in
order to help create jobs in southern Thailand.
In particular, the three troubled southernmost provinces of Pattani, Yala, and
Narathiwat would benefit directly from rising employment and economic
development.
“Dubai is also interested in investing in Thailand’s property sector because
development in Thailand in the past decade has improved sharply, especially
related to infrastructure projects, compared to many other countries,” Pongthep
said. (TNA)
The World’s leading portfolio
manager to speak in Bangkok
International speaker Scott Campbell shares
his views and advice for investors
MBMG International is holding a public seminar, delivered by a leading
portfolio manager that will focus on investing in the current economic
climate.
Visiting keynote speaker Scott Campbell of Midas Capital, ranked as the
number one global active investment portfolio manager by several independent
bodies including Reuters and Standard & Poor’s rating agency, will present
on a range of topics including:
- The current global economy
- How to manage investment portfolios successfully
- How to arrange the purchase and funding of Thai property
- Where to get the best deposit rates
- Special new tax-planning rules for pensions and retirement plans.
Date: Thursday 5 June 2008
Venue: The Westin Grande Sukhumvit Hotel
Time: 18.30 hours
The seminar is free of charge, courtesy of MBMG International. Please book
early as spaces will be strictly limited.
To reserve your seat or for further information, please contact Todd Guest
at MBMG’s Client Service Desk at 02 655 6044 or e-mail
[email protected]
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