2011 floods slash GDP to 1%: Thai central bank

The Bank of Thailand (BoT) last Friday cut the country’s 2011 economic growth to just one percent from the earlier projected 4.1 percent thanks to the heavy blow of the flood crisis last year, but the economy is expected to grow 4.9 percent this year and 5.6 percent in 2013.

Paiboon Kittisrikangwan, BoT assistant governor said the impact of severe flooding on the country’s economy amounted to a loss of 3.1 percent of gross domestic product (GDP) or about Bt340 billion in damages. GDP in the fourth quarter of 2011 shrank 7.4 percent, compared to the third quarter, with the blow to the Thai economy more severe than that of the 2008 US sub-prime crisis and the Tom Yum Kung crisis in 1997, as flooding heavily affected the industrial sector.

Damage at the industrial estates caused severe supply chain disruptions and overall rehabilitation needs a long time to complete due to insurance claim processes and the need to purchase new machines for those plants.

The Thai economy this year is in a period of recovering from the flood in 2011, Paiboon said.

It is expected that the Thai economy will return to normal in the third quarter of this year and that the overall economic recovery will be supported in part by spending on flood rehabilitation.

Investor confidence has improved as well as private consumption. The government’s Bt400 billion deficit budget will help stimulate the economy.

In Fiscal 2012, beginning with a three-year water management project valued at Bt350 billion and investment in state enterprises will help boost the Thai economy to grow 4.9 percent from 4.8 percent.

The Thai economy in 2013 is likely to expand at a normal rate because the manufacturing sector will return to normal, and the world economy is likely to rebound and favor Thai exports. The government’s budget deficit will support the Thai economy to grow 5.6 percent, he said.

Paiboon warned that risk factors for the Thai economy are the European debt crisis, which can affect the economies and financial markets of other countries, particularly their export sectors. Thai exports in 2012 were projected to grow 7.8 percent. Domestic factors such as the government’s policy on water management to create confidence among investors must be closely monitored.

Inflationary pressure eased in line with consumer goods prices and demand, which slowed down along with the world economy. Core inflation was projected to drop to 3.2 percent in 2012 and 2.9 percent in 2013 while headline inflation in 2012 is likely to fall to 2.2 percent and 1.7 percent in 2013. (MCOT)
 

TOT launches 3G mobile data service in Pattaya

TOT Managing Director Prasong Praneetpolkrang announces the launch of the 3G data service in Pattaya.

Phasakorn Channgam

TOT (Public) Co. this month will launch third-generation mobile data services in Pattaya, piggybacking on Advance Info Service PCL’s network in hopes of catching 3G leader True Corp.

TOT Managing Director Prasong Praneetpolkrang announced the launch of the 3G data service for smartphones and computers Jan. 28 at Central Festival Pattaya Beach.

The service is a rebranding of existing services already provided by AIS in Pattaya. The two companies reached a deal in July that will give TOT customers roaming access on AIS’s 3G network for voice and data services.

Thailand remains far behind the west and even most of Southeast Asia in deploying high-speed wireless data networks. While neighboring countries are already moving to so-called 4G networks, TOT is touting its service as 3.9G amid claims it is the fastest in Thailand with download speeds of up to 21 megabits per second.

Competing True, however, launched its 21 Mbps True Move-H in Pattaya in November and AIS, whose network TOT will use, has only just started deploying 3G access points and remains far behind True in both download speeds and availability.

TOT hopes to expand its mobile data services to 18 provinces by May.
 

Don Mueang Airport scheduled to re-open March 2

Thailand’s Civil Aviation Department (CAD) and the Airports of Thailand (AoT) have agreed to jointly hold a ceremony to officially reopen Don Mueang Airport on March 2 to show the facility’s readiness for commercial use after last year’s flood crisis submerged the airport’s runway, according to the CAD chief.

Civil Aviation Department Director General Woradet Hanprasert said that Nok Air, one of the country’s budget airlines, would resume its services at Don Mueang airport on March 6.

Flight operations at the airport ceased Oct 25 after its runways were flooded. After the floodwater receded, restoration work was begun, he said, adding that Aeronautical Radio of Thailand (AEROTHAI) has been repaired and new aircraft control equipment has been installed.

AoT will restore the electricity system and begin maintenance work on the eastern runway, he said.

Woradet said the department is confident that the airlines which operated at Don Mueang before the flood forced them to relocate temporarily at Suvarnabhumi Airport - including Nok Air, Orient Thai Airlines and charter flights - would resume service at Don Mueang.

There are also additional airlines which expressed interest in using Don Mueang as an operations base, including Thai AirAsia.

THAI Smile Air, Thai Airways International (THAI)’s new sub-brand carrier, which has scheduled its inaugural flight July 1, is expected to use Don Mueang as its main airport.

The CAD chief said he was confident that in the near future, Don Mueang could serve more than 1 million passengers annually and lighten the load on Suvarnabhumi.

During the flood crisis, some airlines shifted their operations from Don Mueang to Suvarnabhumi which now serves on average 47 million passengers per year, higher than its potential capacity of 45 million passengers annually.

Once Suvarnabhumi began its second-phase construction, he said, Don Mueang airport would be able to ease Suvarnabhumi airport’s passenger load. (MCOT)
 

2011 floods slash GDP to 1%: Thai central bank

TOT launches 3G mobile data service in Pattaya

Don Mueang Airport scheduled to re-open March 2