Central bank economic
growth estimate unchanged
Bank of Thailand (BoT) Assistant Governor Paiboon Kittisrikangwan on Friday
announced that the central bank will maintain its economic growth estimate
for this year at 3.3-5.3 percent against a contraction of 2.7 percent in
2009.
He said that Thailand’s gross domestic product (GDP) grew 4 percent in the
fourth quarter of last year and tended to expand further upon global
economic recovery, improved private consumption and investment and increased
exports.
Thailand’s economic recovery looks sustainable, he said, given the higher
consumer confidence and business confidence indexes.
The BoT projected GDP in 2011 will expand 2.8-4.8 percent, boosted by the
expected increase in private consumption and investment, and higher exports
and imports.
However, the Thai economy would continue to experience four risk factors
including the slower than expected global economic growth, a continued
slowdown in fiscal driving force, concerns and impacts from the investment
project suspension in the Maptaphut Industrial Estate, and persistent
political conflicts.
Paiboon said the inflation rate would remain low because the government
decided to extend measures to relieve living costs to the first quarter of
this year.
It is expected the general inflation rate would stay at 3-5 percent and the
core inflation rate at 1.3-2.3 percent.
Monetary policy implementation will return to normal this year if the
private sector conducts business steadily and the economy continues
expanding.
Still, higher oil and commodity prices must be monitored as it could fuel
rising inflation. He said the BoT will consider again whether it is
appropriate to raise the policy interest rate in the third and fourth
quarters.
“The interest rate adopted by the bank to boost the economic recovery is
considered especially low. If the economy recovers steadily, the interest
rate must return to normal because the bank must retain economic stability
in the long run,” said Paiboon.
Regarding the stronger baht, he allowed the central bank is unable to peg
the currency because it had adopted the managed float regime, but if the
baht fluctuated too heavily, the bank would attempt to supervise it to
prevent it from affecting the economic recovery. (TNA)
Thailand’s central bank
requires financial institutions to
justify loan rejections
Bank of Thailand (BoT) Assistant Governor Pimpa Thawarayut on
Thursday revealed that the central bank has issued letters of instruction to
managers of all financial institutions, requiring them to make clear
explanations in case they disapprove or reject loan applications.
Reasonable explanations must be given, she said, noting that in the past the
central bank and the center tasked with liaising on addressing loan granting
problems had received complaints from intending borrowers that they received
unclear explanations from financial institutions over why they were refused
loans.
A Bank of Thailand survey also found guidelines for approving loans vary widely
among financial institutions, resulting in public confusion. More importantly,
the failure to clearly explain loan rejections might lead to a negative image of
such institutions as a whole.
Because of this, the BoT established guidelines to ensure uniform standards and
practices to boost public understanding. Also, it could help provide
unsuccessful loan applicants with useful information on how to improve their
financial position.
“We have sought cooperation from financial institutions to explain to intending
borrowers why they rejected their loan applications in writing. To comply with
official rules, financial institutions must give rejected loan applicants easy
access to the reasons and written clarification over their failure to receive a
loan approval,” she said. (TNA)
Siam Cement Group forecasts 5%
consumption growth this year
Domestic cement consumption is expected to grow
some 5 percent this year due to the economic
recovery witnessed late last year, according to
an industry executive.
Siam Cement president Kan Trakulhoon said that
despite the positive signs, shaken confidence
and political uncertainties remain key risk
factors to the demand of cement products.
Previously, he said, the company forecast that
cement demand would continue dropping by 5-10
percent before recovering in 2010, the first in
four years.
He noted the demand for construction materials
had begun to recover since the 4th quarter of
last year.
The paper box and vehicle industries had started
clear recover as well.
Kan said he believed a petition asking to have
five Siam Cement Group projects in the Maptaphut
Industrial Estate withdrawn from a list of
suspended investment projects would receive
court approval because the industries all
reflected improved pollution reduction. (TNA)
Thai, Vietnamese bourses
to boost cooperation
The Stock Exchange of Thailand (SET) and the Hanoi Stock
Exchange (HNX) last Friday signed an agreement to exchange information and
experience in regulating the stock market.
The five-year Memorandum of Understanding (MoU) will also support business
opportunities for investors through network mechanism and business matching
activities that will increase the business value of listed companies.
Vietnamese companies and Thai-Vietnamese joint ventures are encouraged to apply
for dual listing on the stock exchanges of the two countries once the laws and
relevant regulations permit it.
“To a greater extent, this agreement will allow us to tighten the bonding
between financial markets in Thailand and Vietnam, making contributions to the
integrity of ASEAN economic community as highlighted in the spirit of ASEAN
alliance,” Tran Van Dzung, president of the Hanoi exchange said in a statement.
SET president Patareeya Benjapolchai said the stronger cooperation and
relationships will further provide both business and investment opportunities
not only for the exchanges but also for all market participants.
According to a SET recent survey, 43 percent of the listed companies responding
to the survey indicated interest in investing in Vietnam, and some listed
companies are exploring investment and business expansion opportunities in
Vietnam. (TNA)
Thailand to host first Southeast Asian
energy regulators conference on climate change
The Energy Regulatory Commission of Thailand (ERC) is
organizing an international conference on “Regulators Respond to Climate Change”
for the first time in Southeast Asia. The 2-day event will be on February 5th
and 6th in which 13 regulators from Southeast Asia countries plus China, Korea
and Japan, will participate.
Professor
Emeritus Dr Direk Lavansiri (center), chairman of the Energy Regulatory
Commission, with Kawin Thangsupanich (left), secretary general to the Office of
the Energy Regulatory Commission and Dr Pallapa Ruangrong (right), commissioner
of the Energy Regulatory Commission announce the international conference o
climate change.
Professor Emeritus Dr Direk Lavansiri, chairman of the Energy Regulatory
Commission said, “The energy sectors and communities around the world are
uniting to reduce green-house emissions. The Energy Regulatory Commission of
Thailand (ERC), being the responsible governmental body in energy regulations,
is encouraging business operators and the public to join us in solving emission
problems.
“The ERC is currently on track in developing energy management to international
standards. One initiative is to assemble the network as to bring together the 10
nations in Southeast Asia, namely Malaysia, the Philippines, Indonesia,
Singapore, Brunei, Lao, Cambodia, Vietnam, Myanmar, and Thailand, with the
additions of experienced counterparts such as China, Korea and Japan to discuss
the situation under the theme Regulators Respond to the Climate Change,” he
said.
Dr Pallapa Ruangrong, commissioner of the Energy Regulatory Commission added,
“This international conference is crucial to bringing about tighter cooperation
in developing efficient regulatory rules in the near future. In fact, the main
goal of the conference is to exchange ideas and knowledge on the roles of the
energy regulatory bodies in solving the global climate change. We also expect
regulators from China, South Korea and Japan to share their experience in
technological and environmentally friendly management. Moreover, ERC will
present ways on how to use or develop sustainable energy, including Clean
Development Mechanism (CDM), Demand-Side Management (DSM) and more.
“This international conference is scheduled at Plaza Athenee Hotel (in Bangkok).
More than 350 participants including energy professionals and government bodies
from Southeast Asia nations, as well as concerned government agencies,
provincial governors, academics and NGOs will join. One of the main attractions
is the keynote address from the Minister of Energy, Dr. Wannarat Channukul on
‘Thailand Renewable Energy and Energy Efficiency’. Additionally, there will be
the seminars by Southeast Asian energy regulators on the topic of The Issues,
Challenges and priorities faced by regulators in the next 5-10 years,” she said.
Kawin Thangsupanich, secretary general of the Office of the Energy Regulatory
Commission or OERC added, “The conference is (being organized) by the Office of
the Energy Regulatory Commission under guidelines drawn by the Energy Regulatory
Commission of Thailand. The primary objective is to form collaboration amongst
ourselves in order to make a stand in the broader communities in energy sectors,
and to bring in benefits to the country as the whole.
“We are confident that this international conference is the strategic step to
show ERC’s support on efficient energy, which would eventually lead to mitigate
the problem of climate change, as well as help decrease the green-house effect,”
Professor Emeritus Dr Direk concluded.
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