BUSINESS 
HEADLINES [click on headline to view story]: 

Gold price rising to Bt17,000 per 15.2 grams in months

NPLs rising in retail banking sector, says banker

ASEAN to increase fund of contributions to US$120bn on global economic slump

Seminar teaches self-sufficiency

Markets along Thai-Cambodian border revive as tensions ease


Gold price rising to Bt17,000 per 15.2 grams in months

The price of gold in Bangkok last Saturday rose Bt200 per 15.2 grams (one baht weight) and it is expected that its price would touch Bt17,000 per 15.2 grams in the next one or two months, Gold Traders’ Association president Jitti Tangsithpakdi, president of Gold Traders’ Association.
Saturday’s buying price for bullion gold increased to Bt16,250 while selling price also rose Bt200 to Bt16,350 per 15.2 grams (baht) weight as the public rushed to gold shops and sold gold and took away profits, Jitti said.
The gold price rise has resulted from its steady rise in its price overseas as traders believe that many central banks bought gold from their international currency reserves.
Gold shops in Thailand at the same time also relieved their stockpile by exporting gold overseas and it is expected that the country would earn tens of billions of baht, he added.
Thai gold prices last Wednesday hit record highs for a second day, at Bt15,950 per one baht weight for gold bars and Bt16,350 baht for gold ornaments, rising from Bt15,750 and Bt16,150 respectively. (TNA)


NPLs rising in retail banking sector, says banker

Non-performing loans (NPLs) appear to be rising, particularly in the retail banking sector, amid the current economic slowdown, according to a top Thai banker.
Siam Commercial Bank (SCB) president Kannikar Chalitaporn said lending is likely to decline in the first quarter of this year due to the sluggish economy.
However, she said she sees loan applications as picking up in the second quarter of the year.
Kannikar said the bank set its loan growth target for 2009 at 5-7 percent, which is in the same level as the expected loan market expansion.
The bank began to witness an increase in NPLs, especially in its retail banking group, she conceded, adding that whether the trend will continue rising depends on each bank’s ability to manage and supervise quality of customers.
“I’m not surprised to see exports in January drop by over 26 percent because the slump is being witnessed around the world. Entrepreneurs should adjust and prepare to face the continuing plummeting of exports and the continued slowdown of the global economy,” Kannikar commented.
Regarding the interest rate trend, she said, the bank must wait to see whether the Monetary Policy Committee would further cut the policy interest rate from 2 percent at present.
Interest rates the world over are in a downward trend, she observed. Commercial banks had already reduced their interest rates to quite low levels.
Should they cut the interest rates even further, it would negatively affect depositors, she said. (TNA)


ASEAN to increase fund of contributions to US$120bn on global economic slump

Finance ministers of the Association of Southeast Asian Nations (ASEAN) are set to expand their countries’ financial cooperation to multilateral from the current bilateral status and will increase their fund contributions to US$120 billion from $80 billion during their one-day meeting with three East Asian partner countries, Thai Finance Minister Korn Chatikavanij said.
The ministers’ meeting was held Sunday in Thailand’s Andaman Sea resort of Phuket, with ASEAN’s secretary-general and the Asian Development Bank (ADB) president also participating.
At the meeting, the 10 ASEAN ministers and the three East Asian partner nations - Japan, China and South Korea (ASEAN+3) - conferred on upgrading their financial cooperation to multilateral from bilateral to allow a regional-pact response to ASEAN member country facing a financial problem, Korn said.
He said the agreement will help boost the short-term liquidity of whatever country encounters problems as the global economic recession worsens.
The ASEAN+3 finance ministers also discussed the progress of the Chiang Mai Initiative, a program of financial cooperation launched in Chiang Mai in 2000, Korn said.
Under the terms of the Chiang Mai Initiative, ASEAN members will contribute funds from their reserves to $84 billion, but Sunday’s meeting upwardly revised the amount to $120 billion.
The concluding joint statement of the Phuket meeting will be discussed at the ASEAN summit at Hua Hin February 27 to March 1.
ASEAN comprises Brunei, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos, Cambodia and Vietnam. (TNA)


Seminar teaches self-sufficiency

Patcharapol Panrak
A training seminar at Wat Yansangwararammahaviharn Agricultural Development Center (say THAT 3 times fast!) explored “natural agriculture” and self-sufficient living as good solutions for the current economic crisis and global warming.

Apichart Jirawut and Dr Marisa Koseyayothin.

On February 17, Apichart Jirawut, secretary of the Non-systematic Academic Office and Vocational Studies, presided over the seminar with Dr Marisa Koseyayothin. During the meeting, people discussed alternatives to using His Majesty the King’s ideals of self-sufficient economy and consumption to reduce global warming and to keep a livable balance between humans and other living organisms.
Dr Marisa said that spreading this knowledge would lead to a strong society which could depend on itself by following His Majesty’s thoughts on sufficient economy and the process of natural agriculture.
She said that agriculturists who pass this training seminar, organized with the involvement of the Ministry of Natural Resources and Environment, are to be more efficient in their tasks and better able to help people develop further ideas and practice in this methodology and philosophy.
Apichart said that living adequately is very important because “getting rid of greed will definitely help human kind to survive.”
 


Markets along Thai-Cambodian border revive as tensions ease

Cross-border trade between Thailand and Cambodia along the northeastern province of Surin has been staggered since the border dispute between the two countries over the ancient Preah Vihear temple and overlapping area erupted in mid-2008. Today, the situation has returned to normal, but how’s the trading of the two nations? Let’s find out.
Cambodia’s O’Samach market across from Thailand’s Chong Jom border crossing in Surin has been revived, after seven months of tension and the military standoff between the two countries eased.
A Cambodian trader said the border dispute and the deadly clashes last year scared Thai customers who usually crossed the border to the market, while the Cambodians were also reluctant to cross into Thai territory for fear they could not return to their homeland if tensions rose.
With the situation having improved in January thanks to border talks, O’Samach market welcome about 600 Thais daily. The number might not be as many as before the border dispute flared up, but it’s much better than the last quarter of 2008.
“When the Preah Vihear dispute eased, Thai people came back to our market as they did before. But our sales still drop to 70%. We used to sell 100% before the border problems happened,” said a Cambodian trader.
As normal trade activities resume, people seem more comfortable, as seen in a traditional coffee shop where Cambodians usually relax during the trading day. They enjoy sipping tea and coffee while watching DVD movies with their friends.
Across the border in Thai territory is Chong Jom market. Here the atmosphere is also lively. As most of the traders are Cambodian, when the tensions flared they all closed their shops and fled to their homes. Now they’ve come back, bringing more traders with them. Market operators say market expansion is needed to facilitate these new traders.
“The old Cambodian traders told their descendants that trading in the Thai market was always doing well. So they followed the old traders here. Now we have to expand the market area to support these newcomers, said Plaeng Charoensuk, Chong Jom Market Operator.
Cambodians are still dependant on purchasing everyday necessities, as well as construction materials and petrol from Thailand, while they export mainly agricultural products to the kingdom. (TNA)