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Finance Minister pledges funds
to develop Chiang Mai
Finance Minister Korn Chatikavanij pledged to allocate a government budget
for tourism development projects in Chiang Mai during his trip to this
northern province, a major political stronghold of fugitive former prime
minister Thaksin Shinawatra.
Korn visited Wat Prathat Doi Suthep, a famous temple compound on the
mountain overlooking Chiang Mai.
The government will spend a budget of Bt84 million to fix the historic Doi
Suthep temple, he said.
Prathat Doi Suthep is Chiang Mai’s most famous tourist site and one of the
country’s most popular tourist destinations. The government pays attention
to tourism development and will allocate the budget to the province’s
development project as high as Bt18.6 billion, second to the capital city of
Bangkok, he added.
Engineers from the Asian Institute of Technology and Chiang Mai University
earlier found cracks on the pagoda, caused by the structural subsidence.
They said these cracks, in conjunction with heavy rain and a possible
moderate earthquake in the area, can lead to more serious structural damage
in the future.
A budget from the government will be spent on a number of projects related
to flood prevention, tourism development, road construction and education,
the finance minister said, adding that some of the budget will be allocated
to improve the Chiang Mai Zoo.
During his visit to Chiang Mai, Korn was jeered by some Thaksin supporters,
the ‘Red Shirt’ group of the United Front for Democracy against Dictatorship
(UDD).
The finance minister said his trip to Chiang Mai was sincerely intended to
note the progress of various government projects and instructed local
officials to push for more progress to benefit local people, he said.
The schedule of his trip was kept confidential for his safety in the wake of
anti-government protests.
Niyom Luangcharoen, a UDD key member was detained by the police after he had
been found carrying a gun and ammunition in his van during a police search
at Chiang Mai airport on Thursday.
The UDD leader’s arrest prompted about 200 UDD protesters to gather outside
the police station. The crowd dispersed early Friday after the police used a
water cannon to force them to leave.
Chiang Mai is Thaksin’s home town and is a political stronghold of
politicians under the Puea Thai Party who are his staunch supporters.
(TNA)
Thai central bank unworried about withdrawals
for savings bonds
Bank of Thailand (BoT) Assistant Governor Paiboon
Kittisrikangwan on Thursday said the central bank was unconcerned over
significant numbers of withdrawals from commercial banks to invest in government
savings bonds issued under the “Stronger Thai” scheme.
He said the funds transfer in the banking system is considered normal, but
conceded that the issuing of the saving bonds, which offer an average interest
rate of more than 4 percent, might force commercial banks to raise their deposit
rates to maintain their customer base.
In addition, it might prompt the banks to introduce new financial products with
higher interest to attract new clients and maintain their customer base.
However, it depended on the policy of each bank as some banks might not need to
mobilize deposits because lending was lower than targeted.
The deposit rate hike would benefit consumers as rates had dropped too quickly
in recent time.
Paiboon said he believed the government’s issuing of savings bonds at a face
value of Bt 80 billion would not affect liquidity in the banking system since
current liquidity remains sufficient and the loan to deposit ratio has stayed at
84.04 percent.
Additionally, the proceeds from selling the bonds will circulate in the
country’s economic system, he added. (TNA)
Trade rep: Thais courted to invest in Japan
Japan has convinced Thais to invest in three main industries including
auto parts, food and processing, and retail trade and distribution in
the country by allowing them to hold an entire stake in businesses they
operate, according to Thai Trade representative Vatchara Panchet.
Speaking of his visit to Japan to meet with top executives and officials
in the public and private sectors July 7-14, he said that permission for
investment with an entire stake is considered unprecedented in Japan.
So, it is an appropriate time for Thai businesspersons to turn a crisis
into an opportunity by making the investment in preparation for the
economic boom in the future.
“The Japanese government has appreciated Thailand’s role as a production
base of vehicles, pickups, and eco-cars. Establishing companies in Japan
constitutes an opening of a new market by Thai firms,” the Thai official
reported.
“Investing in the food and processing business will help build on the
project to turn Thailand into the world kitchen. It will also help cope
with difficulties in exporting foods to Japan where food safety
regulations are very strict because Thai companies investing there will
receive the same entitlements Japanese firms get,” he said.
“Simultaneously, investing in the retail trade and distribution will
give Thai products more distribution channels in Japan,” Vatchara said.
The Development Bank of Japan and the Japan Bank for International
Cooperation are ready to provide financial support for Thai investors in
Japan.
In addition, Tokyo Stock Exchange chairman Atsushi Saito had invited
Thai companies to list on the market, he said. (TNA)
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