Business

HEADLINES [click on headline to view story]:: Ratchaprasong entrepreneurs to discuss rehabilitation plan; Thai hoteliers call for new strategy to rebuild confidence; Thailand, India move to implement joint FTA in 2010; Thai central bank reaffirms availability of ATM services

Ratchaprasong entrepreneurs to discuss rehabilitation plan

Part of Central World shopping complex collapsed after arsonists set it ablaze and firefighters were unable to reach the area in a timely manner due to ongoing conflicts between UDD protesters and Thai soldiers.

Members of the Ratchaprasong Square Trade Association (RSTA) met Thursday to begin planning ways to restore the area and its businesses after the violence and arson which erupted Wednesday.

Following the widespread vandalism and arson at Central World shopping complex, Thailand’s largest high-end shopping mall and the second largest in Southeast Asia, as well as Big C Supercenter and other properties in the Ratchaprasong area causing incalculable damage, the entrepreneurs grouping have started to prepare a plan to rehabilitate the area.

The association also is considering adjusting existing plans, including the restoration of buildings and areas at Ratchaprasong intersection as well as marketing and promotion campaigns to boost sales.

However, details of the revised plan can be clarified only after the violence ends and Bangkok Metropolitan Administration (BMA) authorities clear the damaged areas.

In addition, the association has set up an RSTA Call Center 085 484 6471-3 from 9am-5.30pm for entrepreneurs wanting to register for assistance.

Currently, 50 entrepreneurs in trouble contact the call centre daily. It is expected that more entrepreneurs will take advantage of calling on the association for assistance.

Federation of Thai Industries vice chairman Payungsak Chartsutipol said that although business offices in outer Bangkok could open Thursday, many companies couldn’t operate due to the loss of document systems as their Ratchaprasong headquarters were affected by arson.

Shipping and transport systems are suspended and financial institutions were directed to close on Thursday and Friday by the Bank of Thailand (BoT).

He said the damage from the violence includes asset damage and the impacts on investor confidence, the loss of life and psychological effects on many Thai people.

If the crime spree ends soon, the impact will not spread, he said.

Meanwhile, Punnachai Footrakul of the Petroleum Authority of Thailand (PTT) Natural Gas Vehicle Marketing Department said that service stations last Thursday morning faced shortages of NGV, LPG, and oil products due to the huge demand in preparation for the curfews.

All PTT stations in the 13 zones banned from gas and oil transport remain closed.

He added that the Ministry of Energy discussed the situation and may propose that the Centre for the Resolution of the Emergency Situation (CRES) allow the gas tankers to enter the 13 zones in the next few days. (TNA)

Thai hoteliers call for new strategy to rebuild confidence

Sirima Eamtako,
TTG Asia

Saddened by what they say is the “worst” setback for Thailand’s tourism industry, Thai hoteliers are nevertheless confident there will be sunshine after the rain and are calling for a new strategy to rebuild confidence.

Dusit International CEO Chanin Donavanik told TTG Asia e-Daily: “I am very sad and disappointed in the Thai government’s (inability to deal with the protests) ... but I am not giving up hope. I cannot give up Dusit. I cannot give up Thailand.”

Going forward, Chanin said it was critical that the Thai government first restores the political stability before joining hands with the private sector in restoring confidence in the destination.

Centara Hotels and Resorts senior vice-president sales and marketing Chris Bailey added this must not be done “by just throwing big money at advertisement campaigns. We need to rethink a strategy to earn Thailand’s reputation back,” he said.

Thailand, India move to implement joint FTA in 2010

Thailand and India, which until now agreed to only 82 items of goods traded under the so-called Early Harvest Scheme (EHS), are speeding up negotiations for other goods left under the free trade area (FTA) agreement between the two countries in a bid to expand bilateral trade, Thai Deputy Commerce Minister Alongkorn Ponlaboot said.

Alongkorn said on returning from a three-day trip to New Delhi beginning Tuesday that he led government officials and private businesspersons and explained to Indian officials and journalists that the political turmoil in Thailand would not affect trade and investment between the two countries.

Both sides were confident that the value of bilateral trade could reach the targeted US$10 billion within 2012, said Alongkorn.

Alongkorn said he had discussed with his Indian counterpart Jyotiraditya M Scindia that only 82 items of goods traded under the Thai-Indian FTA enjoyed trade privileges and the two countries should speed up holding talks on the rest of merchandise within this year. Negotiations should also cover joint investment and service sectors.

He said he had also discussed possible cooperation on “creative economy”, particularly motion pictures, information technology and software, as India has gained wide experience in the field.

Thailand has invited India to join the World Creative Economic Forum which will be hosted by Thailand this November. Scindia agreed to be a keynote speaker.

India also asked Thailand to support its plan to host the first India-ASEAN Business Fair scheduled for January 8-11, 2011 in New Delhi.

Combined trade between the two countries last year totaled US$4.95 billion and it is expected that the value could soar to US$10 billion by 2012 without difficulty, he added. (TNA)

Thai central bank reaffirms availability of ATM services

Bank of Thailand (BoT) Assistant Governor Sorasith Suthornkes reaffirmed the money supply in the country’s banking system is more than sufficient to meet public demand and that automatic teller machine (ATM) services remain available as normal.

The central bank allowed all financial institutions nationwide to close for services May 20-21 in the wake of street violence and riots in Bangkok and the civil unrest in many provinces following the abrupt end to the anti-government mass rally by red shirt protesters.

He said the ATM network had not gone out of service despite rumors to that effect. Some ATM machines in risk-prone areas are closed because cash delivery trucks have been unable to reach them. He advised persons wanting to withdraw cash to use ATM services at nearby areas.

Chim Tantiyasawasdikul, BoT assistant governor in charge of the Information System Group, said that although May 20-21 were special holidays for all financial institutions nationwide, the central bank continued open for service at 11 Banknote Management Centers countrywide to enable the financial institutions to disburse cash and put it in ATM booths.

The central bank affirmed ATM booths had sufficient cash to meet public demand and did not want the public to have concerns about cash availability and rush to hoard cash. For people living in the violence-prone areas, the bank suggested they have some cash reserves because the ATM booths in the areas might be out of service.

“We affirm that the ATM network is not disconnected as rumored,” he said. “The credit card system is also available for service”. (TNA)