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Finance ministry to ask cabinet approval to maintain bank deposit insurance coverage

Deputy Prime Minister/Finance Minister Kittiratt Na Ranong said his ministry is proposing that the next Cabinet meeting consider drafting a royal decree to indefinitely expand the protection period of the bank deposit insurance coverage at Bt50 million per account in lieu of the uncertainty surrounding global financial markets.

The Deposit Protection Agency (DPA) was previously set to lower deposit coverage to only Bt1 million/account starting Aug 11.

Kittirat said any changes on protection during this period might affect depositors’ confidence, particularly under the current circumstances of the eurozone debt crisis.

The deposit insurance is also meant to prevent risks and legal uncertainties, as well as to comply with the current economic situation. (MCOT)
 


Thailand to supply more gas to meet high demand in Myanmar

Thailand is prepared to allocate more natural gas from the M9 gas field to Myanmar as the neighbor needs more energy to serve the growing demand for the country’s development, Thai Energy Minister Arak Chonlatanon said on Monday.

After his recent visit to Myanmar, the Thai minister said that under the contract, 60 million cubic feet (MCF) of gas per day will be delivered to Myanmar.

However, after a request from Myanmar and talks with PTT, the Thai oil and gas conglomerate running the project, an additional 60 MCF per day could be allocated for delivery.

Offshore block M9 is located some 300km south of Yangon in the Gulf of Martaban.

Additionally the Electricity Generating Authority of Thailand (EGAT) will send Myanmar two power generators, able to run on oil or natural gas, to serve Myanmar’s electrical power demand the country is due to host the Southeast Asia (SEA) Games and the World Economic Forum on East Asia next year.

Energy assistance to Myanmar will not only help our neighbor but also demonstrates goodwill as Thailand is also investing in energy in Myanmar. A joint committee was set up to see if there are more energy channels by which Thailand could help Myanmar, Arak said.

However, energy support to Myanmar will not negatively impact Thailand’s energy security, he added.

Under the 30-year agreement, PTTEP will start producing natural gas at 300 MCF per day in block M9 in 2013. The amount of 240 MCF per day will be delivered to PTT while the remaining 60 MCF will go to Myanmar for domestic use. (MCOT)
 


PM orders agencies concerned to closely follow up economic situation in Europe

Prime Minister Yingluck Shinawatra on Saturday expressed concern that economic woes in Europe will affect Thai exports, and ordered concerned agencies to closely follow up the economic situation in European countries.

PM said during “Yingluck Government Meets the People” program broadcast via Radio Thailand and National Broadcasting Services of Thailand (Channel 11) that the government has instructed relevant agencies, including the National Economic and Social Development Board (NESDB), Finance Ministry, and Bank of Thailand to work together to monitor the situation and analyze the potential impact to Thailand’s economy, both directly and indirectly.

These agencies are tasked with understanding impacts correctly and working together to build Thailand’s economic strength, she said, adding that this approach would help Thailand prepare for and proactively prevent problems at the same time.

Yingluck said that the Commerce Ministry has talked with exporters who may be affected by the crisis in Europe and the government has prepared to extend assistance while advising the private sector to be prepared to respond to the situation.

As for the tourism industry, she said, new markets of tourists would be sought out.

Meanwhile, Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong who also joined the TV program, said that the international community was confident that the European countries would be able to handle this economic crisis.

He was also confident that Thailand could handle the situation and measures have been prepared to respond to the crisis.

Kittiratt also added that Thailand’s public debt would not become a non-performing loan as in several countries of the European Union (EU), while expecting the eurozone crisis will not heavily affect the world economy like the 2008 Hamburger crisis.

He said Thailand’s export goal remains the same, to expand by 15 percent, thanks to negotiations to enter more markets.

The country’s gross domestic product (GDP) is expected to grow at least at 5.5 percent due to government investment in infrastructure for flood prevention, the minimum wage raise, corporate tax reduction from 30 percent to 20 percent, low interest rates, weaker energy prices, and weaker foreign exchange rate of the baht currency.

He noted that the Thai economy depends on exports, domestic investment, and the service sector (tourism). While admitting the EU’s debt crisis would affect the Thai economy, he was confident the government would mitigate the impact.

The premier has assigned all parties to reduce such impact, he said. The Export-Import Bank of Thailand (EXIM), and other banks were called upon to prepare assistance to the private sector. (MCOT)
 


Future of Thai rice and Thai farmers

This year is the fourth anniversary since Thailand designated June 5 as National Rice and Farmers Day. As Thailand has been the world’s top rice exporter for a long time, questions about the future of Thai farmers and their improved livelihood remain unanswered.

From the onset of the rainy season, farmers started plowing to prepare the soil for seasonal rice planting in hopes of a good price for their produce, which is now guaranteed by the government under the rice mortgage scheme, beginning last year.

Despite some problems in implementing the plan, farmers are generally satisfied with the government’s project.

“Taking into account higher rice prices in the market, and farmer satisfaction, I believe the government’s rice mortgage scheme must be considered successful,” said Yanyong Puangrach, Permanent Secretary for Commerce.

“Losses that might be incurred by the government is not the point, as the government aims to raise rice prices to increase farm income,” Yanyong added. The government is confident that Thailand will be able to retain the status quo as the world’s top rice exporter.

In the first four months of this year, Thailand ranked first, exporting 2.7 million tons of rice. It is believed that each year, there is demand for at least seven million tons of Thai rice, so the country’s target to export 8.5-9 million tons is possible.

“Farmers are satisfied - to a certain extent - but it must be admitted that some problems remain, such as delays in issuing warrant documents in many areas,” said Prasit Boonchueay, chairman of the Thai Rice Farmers Association.

“If the government cannot sell mortgaged rice, it won’t have money to buy rice in the next round. Then, farmers have to sell their rice produce to rice mills at low prices,” he said.

However, it needs more time to prove whether the rice mortgage policy will be accomplished.

Under the rice mortgage scheme, management of rice reserves in stockpiles is a difficult task as the government must strike a balance between releasing rice in stock and preventing a drop in global rice prices and at the same time; it must oversee rice prices in the domestic market to prevent a rise that could hurt Thai consumers.

Although National Rice and Farmers Day was designated to highlight the importance of farmers, the so-called backbone of the nation, the future of Thai farmers remains uncertain.

According to a survey by the Thai Rice Foundation, the number of farmers continues to drop. And 90 percent of farmer’s children - the future of Thai agriculture - said they would not carry on their forebear’s work in rice paddies.

Another threat to the future of agricultural occupations is the issue of land. Rice paddies have changed into residential estates, commercial buildings, and industrial factories. Many remaining rice paddies belong to business investors and farmers become renters and workers on rice farms that used to be their own.

Since the long ago past until now, Thai governments have always had policies to increase farmers’ income and improve their quality of living but to achieve the goal, more needs to be done seriously besides price guarantees and rice mortgage schemes and designation of the National Rice and Farmers Day. (MCOT)
 


PM inspects Maptaput industrial estate ahead of cabinet meeting

Prime Minister Yingluck Shinawatra last Sunday visited the Maptaput industrial estate in Rayong ahead of Tuesday’s cabinet meeting.

The prime minister observed an emergency evacuation drill at the Maptaput industrial estate in the eastern province of Rayong to see the progress of an emergency response plan at the surveillance and environmental control centre after a fire at the compound of the BST Elastomers Co. on May 5.

The company is responsible for paying compensation to families of the deceased and those injured in the accident. It has sent mobile medical units to nearby communities and set up a 10-million-baht fund to help affected people as ordered by the prime minister.

The prime minister observed a drill of a mock fire accident in an oil tank in a storehouse. About 200 firefighters and medical staff with 35 fire trucks managed to put out the fire and evacuated people in the simulation. The prime minister instructed the drill to be conducted periodically.

Yingluck also ordered a flood prevention plan including evacuation of local residents and machinery movement to be added in the emergency plan and advised inspections in industrial plants which may not adhere to acceptable safety standard. She underscored environmental concerns to see whether Rayong province may become an example of proper environmental management in an industrial estate.

After meeting with agencies concerned, Yingluck received a letter from representatives of the Eastern People Network, gathering at the Maptaput industrial Estate. Several factions of the group submitted petitions, calling for the government to tackle problems on air pollution, industrial waste and industrial impacts on local fisheries.

The prime minister told them that the government understood their problems and is urgently addressing pollution in Rayong, encompassing a large number of industrial plants. She instructed the governor and the industrial minister to oversee the issue and report to her.

Yingluck later travelled to the Royal Cliff Beach Resort in Pattaya to chair a workshop on driving policies to increase tourism income to 2 trillion baht within five years as well as another workshop to boost work efficiency of tourist police. (MCOT)
 


HEADLINES [click on headline to view story]

Finance ministry to ask cabinet approval to maintain bank deposit insurance coverage

Thailand to supply more gas to meet high demand in Myanmar

PM orders agencies concerned to closely follow up economic situation in Europe

Future of Thai rice and Thai farmers

PM inspects Maptaput industrial estate ahead of cabinet meeting
 

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