BUSINESS 
HEADLINES [click on headline to view story]: 

Govt agrees to raise sugar price

FTI urges Thai govt to help reduce cost of living

Govt’s incentives insufficient for E85 cars made in Thailand

Government to develop integrated logistics system

Lee Marine attends prestigious boat show for sixth consecutive year


Govt agrees to raise sugar price

Those with a sweet tooth who prefer to put plenty of sugar in their coffee might start having to think twice and become sugar-free, after the government agreed to increase sugar price by 5 Baht per kilogram. The government’s decision will likely have a grave effect on consumers and sweetmeat sellers.
A sweetmeat vendor said “Obviously our production cost has risen. We have less profit.”
Although the sugar price hike has caused trouble for sellers, it has great benefit not only for sugarcane growers —who have suffered from low prices for many years — but also the Bank for Agriculture and Agricultural Coopperatives or BAAC.
“As currently the BAAC has subsidised 24 billion baht to help with sugarcane farming, each increased 5 Baht per kilogram of sugar sold will go to BAAC. It is estimated it will take 5 years for BAAC to clear existing debts,” said Akachai Ariyamongkonchai Deputy Secretary General Cane Planters Association For Zone 7.
For sugarcane growers, the price rise is as high as 700 to 807 baht per ton. Still, they cannot break even. One rai can grow a maximum of 12 tons of cane, which means that the most income that can be gained per rai is 9,684 Baht. The growing cost is high, at 10,000 baht per rai, especially when chemical products and other materials cost more due to the oil price hike.
Anchalee Chamnongkol, a sugarcane grower said, “It’s great that the government has increased the sugar price but it can’t cover our growing costs anyway.”
Raising the sugar price alone might not be enough if the government wants to ensure sugarcane growers a better living in the long run. Plans to improve sugarcane output and quality are still vital. (TNA)
 


FTI urges Thai govt to help reduce cost of living

The Federation of Thai Industries (FTI) has urged the government to help lower the public’s cost of living, which has been battered by soaring global oil prices and locally increased inflation.
FTI chairman Santi Vilassakdanont said the Thai economy is now confronted by several negative factors including a sharp increase of New York crude to US$139 per barrel, Thai inflation in May which rose to 7.6 per cent and the recent increases in deposit and lending interest rates of commercial banks.
Some businesses are now reluctant to ask for loans from commercial banks, especially those focusing on goods manufactured for the Thai market, as consumers have slowed their spending, Santi said.
“The outlook of the Thai economy towards the end of the second quarter until the third quarter isn’t bright while economic growth this year isn’t expected to reach the projected 6 per cent. Growth is expected to be about 5 per cent only,” he said.
Santi proposed that the government should introduce measures to help lower expenses for the people, such as distribution of food coupons for certain groups, as is done in some other countries, and holding fairs to sell goods inexpensively. (TNA)


Govt’s incentives insufficient for E85 cars made in Thailand

Fourteen car manufacturers in Thailand have delivered their assessment that the Thai government’s measures and incentives are still not attractive enough to induce manufacturers to produce E85 vehicles in the Kingdom, said Deputy Prime Minister and Industry Minister Suwit Khunkitti last week.
Suwit said his ministry would ask the manufacturers what added measures they wanted in a bid to enable the country to become a hub for alternative energies for automobiles. The government is going all out to encourage more motorists to switch to using E85, a blend of 85 per cent ethanol and 15 per cent gasoline.
Last Tuesday, the cabinet gave a green light to exempt import tariffs on E85 car parts as well as lowering excise taxes for E85-powered cars.
According to Suwit, the manufacturers also said they would continue to concentrate on manufacturing eco-cars, but that the government plan to promote manufacturing E85-powered cars would not affect their businesses.
Currently, six eco-car projects have received Board of Investment’s privileges. Combined production is estimated at 800,000 units in the next six to seven years which would make Thailand an important production base for energy-saving cars.
Suwit said his ministry would soon meet again with all 14 producers to lay out a long-term automotive industry pilot plan, designed to make Thailand a significant passenger car production hub, apart from being a one-tonne pickup truck hub. (TNA)
 


Government to develop integrated logistics system

The Thai government is determined to develop a comprehensive logistics system in preparation for trade liberalisation, according to Finance and Deputy Prime Minister Surapong Suebwonglee.
Delivering a keynote speech on “Thailand’s Logistics Policy and Trade Liberalisation,” he said he was worried about the development of the country’s basic infrastructure. Thailand is currently ranked 48th among 55 countries for the basic infrastructure development as it has not yet been able to create an integrated system of logistics.
Up to 86 per cent of the country’s cargo transfers rely on land transport, with only 2 per cent distributed by the rail system.
At present, Thailand’s transport cost is as high as Bt1.2 trillion, and oil consumption for transport reaches Bt800 billion or 10 per cent of the gross domestic product (GDP).
However, Surapong said the government is attempting to forge ahead with development of a large-scale transport system. In particular, it has developed transport routes linking with Myanmar, Laos and Vietnam.
Dr. Surapong said the government would also count on information and communication technology to develop a rail system that links land, seaborne and airborne transports. (TNA)


Lee Marine attends prestigious boat show for sixth consecutive year

The 6th Ferretti Yacht’s “Privilege Days” boat show was held
in Cattolica, Italy from April 19-20.

One of Thailand’s leading yacht sales and service companies has once again proven their commitment to providing the best for its customers.
Lee Marine’s Managing Director, Joshua Lee, recently attended Ferretti Yacht’s “Privilege Days”, an exclusive boat show dedicated to the company’s luxury yacht owners. This was the event’s sixth year, held April 19 and 20 in Cattolica, Italy. It was also the sixth year Lee attended the prestigious boat show to familiarize himself with new models and meet with Ferretti representatives.
“It’s a big effort for us to go, but Ferretti yachts are our family, so it’s a pleasure to go,” said Lee.
During Privilege Days, distributors from 30 different countries bring their best clients to view the impressive fleet of Ferretti yachts. This year the entire range floated on the waters of the Marina Nuova in Cattolica. Since the event is by invitation only, it’s a chance for customers to get some quality time with the boats. They also have access to a wide array of other services including private inspectors, interior technicians, and engineers.
Lee says this is what makes Privilege Days different from other shows of its kind.
“In boat shows, it’s hard to get someone’s time. I’ll have more customers to deal with,” says Lee. “Privilege days you have the privilege as a client to have unobstructed time and attention from everybody.”
The entire event was designed to reflect the lifestyle of “Being Ferretti.” For example, more than 700 guests attended the Privilege Days exquisite black and white dinner party. It was decorated to recreate the atmosphere at the famous party held by Truman Capote at New York’s Plaza Hotel in 1966. The Italian celebration was held at the Horses Riviera Resort.
The show’s 2008 location of Cattolica was significant as it is located at the production site of the most prestigious models of the Ferretti Yachts. The 2008 Privilege Days held special meaning also because this year marks the 40th anniversary for Ferretti Yachts.
The Ferretti story began in 1968 in Italy, when brothers Alessandro and Norberto Ferretti established their naval yard. Today, they are the leader in marine luxury. The company is internationally renowned with dealers from 77countries all over Europe, USA, the Middle East and Asia.
About Lee Marine
Lee Marine is a leading international yacht dealership and brokerage based in Phuket and Pattaya, Thailand. The company represents Riviera, Ferretti, Pershing, Jeanneau and Crownline for new yacht sales and service. Lee Marine’s international brokerage arm has the largest selection of second-hand yachts for sale in Asia. Founded in 1997, the company has six experienced brokers in four sales offices. For further information check out the company’s web site at www.leemarine.com.