World Bank: Thai economy to improve in second half of 2009

As the global economy shows signs of recovery, the heavily export-oriented Thai economy should recover in the latter half of the year, said World Bank’s economist for Thailand Kirida Bhaopichitr.
Ms Kirida cautioned, however, that a number of global economic factors remain as yet uncertain.
In April, the World Bank forecast that the Thai economy is likely to contract by 2.7 percent this year, but this figure will be updated and revised in October.
She said the Thai government’s performance over the last five months has been good, particularly in boosting consumer confidence and applying rapid stimulus measures to put cash in people’s hand, even though the steps did not benefit all segments of society.
The World Bank economist added that the economic recession has seen an increase in non-performing loans in Thailand. She added that the situation is still under control as financial institutions are awash with excess liquidity as they curb lending. (TNA)

Government urged to have clear rice guarantee scheme plan

The government should have a clear rice price guarantee program plan in the interest of farmers in the long run, according to former deputy prime minister and finance minister M.R. Pridiyathorn Devakula.
Although Thailand’s exports might pick up somewhat in the second half of the year, he thought, the decline in farm product prices and any improper intervention in rice prices by the government would dampen farmers’ incomes.
An ineffective or counterproductive rice price plan will eventually weaken the expected recovery of local purchasing power.
The former finance minister said the rice mortgage system has been distorted during the past 4 to 5 years, resulting in middlemen, not farmers, getting full benefits from the system.
So, he said, if the government plans rice price guarantee program, it must have clear rules and regulations to help farmers.
M.R. Pridiyathorn predicted that domestic rice prices will drop further in the second half of this year since the previous three governments had mismanaged the policy on rice, particularly the increase in the rice mortgage quota.
Simultaneously, India had begun exporting more rice, which will affect rice prices in the world market.
Because of this, the government must address the problem, he said. (TNA)
 

Thai Industry Minister urges Indian investors to set up in Thailand

Thai Industry Minister Charnchai Chairungrueng, leading a road show to India, took the opportunity to encourage giant Indian fertilizer company Deepak Fertilisers and Petrochemicals Corporation (DFPC) to establish a fertilizer factory in Thailand, a move he said would provide Thai farmers with competitively priced fertilizers.
Charnchai held talks with the senior vice president of DFPC in a bid to convince the corporation to establish a fertilizer factory at the Maptaput Industrial Estate, where the national fertilizer company was once located, to produce fertilizer from natural gas.
The minister said it would help the supply of cheaper fertilizer produced in Thailand and reduce the importation of fertilizers which took off after the national fertilizer company closed two years ago, he said.
Atchaka Sibunruang Brimble, Thai Board of Investment (BOI) secretary general, accompanying Charnchai to India, said the Indian fertilizer company will decide in July if it will go ahead with a plan to set up the factory in Thailand.
To encourage investors, the BOI offers eight year tax exemptions and tax cuts of 50 percent for another five years as well as zero import tax on machinery, she said.
More than 35 Indian investors in auto parts, chemical, and alternative energy industries are already confident in the Thai government’s policies to welcome foreign investors, Atchaka said.
The road show to India was June 2-6 and the minister plans to lead more road shows to India later this year.
Indian investors expressed their interest in seeking privileges from the BOI and some companies have planned big projects worth more than ten billion baht, she added. (TNA)

Thailand’s health and beauty products net handsome revenue

Thailand’s health and beauty products business sector is expected to net more than Bt100 billion for this year, according to the Export Promotion Department (DEP).
Director-General Rachane Potjanasuntorn said the health and beauty sector, particularly Thai spas, has become a one-stop healthcare product and service hub for buyers and sellers.
The sector is in a position to promote a positive image of Thailand’s health and beauty businesses in the eyes of foreigners and lead to a business expansion overseas.
Rachane said Thailand’s health service businesses are internationally-recognized as the number of international patients using medical services in private hospitals has risen annually by around 10 percent.
Last year, the health and beauty business sector earned Bt107.42 billion. It is expected the business would earn revenue of Bt108.19 billion this year.
Key markets include Japan, the United States, the Middle East, ASEAN, and South Asia.
New markets with growth potential include Russia, Eastern Europe, South Europe, Central Europe, and Canada.
Key rivals include India, Malaysia, Singapore, South Korea, Taiwan, and Middle East.
Rachane said the Thai healthcare, food, cosmetic product business has also grown.
As for the Thai spa business sector in 2008, over 4 million people had used the services, earning Thailand Bt14.88 billion. Of this, 3.2 million of the clientele - 80 percent - are foreigners.
It is projected the Thai spa business would earn the country Bt15 billion this year. (TNA)