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Finance Minister Korn’s win
of Financial Times Banker award
should help restore confidence
The selection of Thailand’s finance minister, Korn Chatikavanij, by the
Financial Times Group’s ‘The Banker’ magazine as the Outstanding Global
Finance Minister of the Year 2010 and Asian Finance Minister of the Year
2010 will help restore foreign investor confidence and reaffirm that the
government’s economic policy is on the right track, according to Democrat
Party Spokesman Dr Buranat Samutrak.
The magazine reported that policies that helped jumpstart the economy
included the 2,000-baht government cheque package, an allowance for the
elderly, and living cost reduction measures, which are part of the Democrat
Party’s 99 day action plan and the Thai Khem Keng (Strong Thailand) scheme.
“Against a backdrop of ongoing domestic political upheaval, Thailand has
succeeded in containing the budget deficit with a projected decline in the
deficit for 2010. While GDP growth for 2009 has retracted by around 3.5
percent, it is due to bounce back, reaching a solid 3.7 percent for 2010,”
he quoted The Banker as saying.
Under questioning Dr Buranati conceded the government would experience key
risk factors for the second year of its performance, particularly political
disturbances that could affect investor confidence and trust.
However, it is believed the government’s measures to relieve farmers’
difficulties, including the crop price guarantee scheme and the farmer
income guarantee project, would help boost confidence among farmers that
they would not suffer losses, he added.
Finance Minister Korn has become the first Thai minister to receive the
awards.
He was selected as the top candidate for the award in competition with
outstanding finance ministers from around the world. A survey of global
analysts, bankers and economists showed that Korn demonstrated an astute
handling of the financial crisis, a progressive and proactive style of
management, strong leadership qualities and the ability to overcome major
economic and political challenges. (TNA)
2010 Outlook: Thailand’s exports likely to rise moderately
Thailand’s exports this year are projected to increase
moderately from those of last year as a result of the global economic recovery
and the expansion of shipments to China and ASEAN, according to the University
of the Thai Chamber of Commerce (UTCC).
Aat Pisanwanich, director of the UTCC International Trade Study Center, said the
center forecast Thailand’s exports this year would grow in a satisfactorily
manner.
Exports of products to China and ASEAN are set to increase on implementation of
the ASEAN Free Trade Agreement and the ASEAN-Sino Free Trade Agreement.
It would result in a higher growth rate of exports in the food, agriculture, and
industrial sectors. The center projected exports in 2010 would expand 10.5
percent compared with its contraction of 15.1 percent last year, he said.
The export value for the whole year is likely to reach US$166.91 billion while
the value of imports is set to stay at $149.88 billion, resulting in trade and
current account surpluses of $17.02 billion and $18.74 billion compared with
$19.96 billion and $21.25 billion respectively in 2009.
Although the world economy and the ASEAN Free Trade Area agreement would help
boost Thailand’s exports this year, there are many negative factors that need be
monitored.
They include a possible depreciation of the Vietnamese dong, a stiffer price
competition in exports to China by ASEAN under the AFTA and ASEAN-Sino free
trade area agreements, an expected rise in interest rates, higher crude prices
in the world market, and a non-tariff barrier imposed by superpowers including
the United States and European Union. (TNA)
Thailand opens AFTA hotline
to help business operators
In order to facilitate business operators and exporters
regarding any doubts about the ASEAN Free Trade Area (AFTA)
enforced since January 1, Thailand’s Ministry of Commerce has
established an AFTA Hotline, using the number 1385, so that
government officials can receive and answer questions on a daily
basis.
Commerce Minister Pornthiva Nakasai said after presiding at the
opening of the ASEAN Hotline 1385 on Friday that the
establishment of the service was made following an order given
by Prime Minister Abhisit Vejjajiva to help business operators
and to answer questions from the general public.
Pornthiva said the Thai government has also set up a special
fund to help business operators negatively affected by AFTA so
that they could compete more effectively in the world market.
Currently, the ASEAN market is the key market for Thai export
products, and it is expected that it will replace major import
markets including the United States, Japan and the European
Union in the future, she said.
This year, the commerce ministry projects that exports to ASEAN
will grow between 10-15 percent, Pornthiva said.
AFTA is now enforced in six out of 10 ASEAN member countries.
Cambodia, Laos, Vietnam and Myanmar which joined the regional
grouping later will implement their free trade zone in 2015.
Director-General Vichak Visetnoi of the ministry’s Foreign Trade
Department said he was optimistic that Thailand would benefit
from AFTA and in order to help business operators fully
understand the benefit, the ministry would hold a major seminar
in February so that operators can apply the advantages offered
as much as possible. (TNA)
Two firms continue oil
exploration in NE Thailand
Despite disappointingly small discoveries of oil in
northeastern Thailand, two companies are continuing exploration with hopes that
success will be achieved, according to a senior Ministry of Energy official.
Mineral Fuels Department director-general Kurujit Nakhonthap said PTT
Exploration & Production (PTTEP) is now busy seeking more oil in its two
operating fields, while the Pan Orient Energy Corp. is also exploring for more
commercially viable oil in its Bo Rang field.
Currently, Bo Rang can produce between 500-1,000 barrels of oil per day, said
Kurujit.
PTTEP and Chevron oil production in 2009 made considerable progress as both of
them achieved over 80 percent of their targeted production of 330,000 million
cubic feet per day, he said.
Also, Pearl Oil had positively tested the presence of nearly 9,000 barrels of
oil per day in the Gulf of Thailand while there were prospects of oil in another
well with approximately 2,000 barrels of oil per day, demonstrating that the
country still has more potential petroleum resources.
Thailand is now able to produce between 150,000-160,000 barrels of oil daily,
equivalent to some 20 percent of Thailand’s total consumption, said Kurujit, but
this is still insufficient for the country’s overall needs.
As production is still far short of local demand, the ministry is studying
whether to open a new concession for petroleum production, he added. (TNA)
12 Maptaphut industries seek
court approval to resume
Six industrial projects of PTT, Thailand’s biggest energy
company and six others from the Siam Cement Group at the Maptaphut Industrial
Estate have submitted further details to the court to seek lifting of the
suspension of their activities for environmental reasons, according to Prasobsil
Chotmongkol, deputy governor of the Industrial Estate Authority of Thailand
(IEAT).
PTT, a state-owned Stock Exchange of Thailand-listed oil and gas company
formerly known as the Petroleum Authority of Thailand, and the Siam Cement
Group, controlled by the Crown Property Bureau, are two of the largest
corporations in Thailand. Investment in the 12 projects totals some Bt 29
billion.
IEAT governor Monta Pranootnarapal said some 50 court-suspended industrial
projects at the Maptaphut Industrial Estate have the potential to continue. The
projects can be compared to 11 projects that were earlier permitted by the
Supreme Administrative Court to resume operations.
The IEAT has already submitted details of 16 projects to the court to consider
lifting the suspension, he said.
In addition, BRT Steel, supervised by the Department of Industrial Works, will
submit details about their operations for court consideration next week.
The Ministry of Industry has opened a centre to advise operators whose projects
have been suspended by the court. Two companies which installed systems to
reduce their negative environmental impact, having up-to-standard water
management, have sought advice so far.
In September a Central Administrative Court injunction suspended 76 industries
at Maptaphut due to environmental concerns. The injunction followed complaints
from residents and environmental groups that state agencies failed to issue
proper operating licenses to the industrial projects.
The Supreme Administrative Court later allowed 11 of the 76 projects to continue
operating, with 65 to remain shuttered until they comply with the environmental
and health requirements of Section 67 of the 2007 Constitution. (TNA)
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