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 Friday August 10 - August 16, 2012
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Updated every Friday by Saichon Paewsoongnern
 
BUSINESS
 

Thailand’s Consumer Confidence Index on present economy increases for 8th consecutive month

Thailand’s Consumer Confidence Index (CCI) ‘on the present economy’ has increased for the 8th consecutive month from 56.8 in June to 57.3 in July, reflecting an improved Thai economy after last year’s flood, a professor of the University of Thai Chamber of Commerce (UTCC) Centre for Economic and Business Forecast said last week.

Wachira Khuntaweetep noted, however, the CCI to the overall economy last month lowered slightly from 68.5 to 68.2, for consumers lacked confidence on the country’s economic situation due to internal politics and fluctuations of the world economy.

The July CCI regarding the economy in the next six months, meanwhile, was downgraded from 80.2 to 79.1, reflecting consumers’ views on possible risks of the Thai and world economies, particularly influenced by political instability and the eurozone debt crisis, respectively. The cost of living tended to continue at a high level.

Meanwhile, Centre for Economic and Business Forecast director Thanawat Polvichai commented that the overall confidence index for July would result in lower confidence among consumers in the future, meaning a dull Thai economy.

Negative factors leading to a lowered future consumer confidence index included the Bank of Thailand’s adjusted prediction of the country’s economic growth this year to 5.7 percent, from the previously expected 6, and on next year’s growth at 5 percent, from the earlier forecast of 5.8 percent.

Other factors covered included a worsening European debt crisis, causing negative performance figures for Thai exporters, internal political instability, higher oil prices, concerns on likely flood situations, and unsatisfactory prices for agricultural produce. (MCOT)
 


Thailand’s 2012 economic growth projection drops to 5.7% from previously forecast 6%: BoT

The Bank of Thailand (BoT) lowered its projection for the country’s economic performance this year to 5.7 percent from its previously forecast 6 percent, Asst Gov Paiboon Kittisrikangwan said Friday.

The adjustment dropped because the economy in the second quarter expanded only 3.5 percent compared to the same period last year, and only 3.3 percent compared to this year’s first quarter.

However, Paiboon said the third quarter will grow 3.2 percent, but expand to 16.4 percent in the fourth quarter. Such high growth of more than 10 percent would compare to the same period last year when the country was facing difficult flood situations.

Meanwhile, the bank sees the country’s Gross Domestic Product (GDP) next year growing by only 5 percent, from earlier forecast at 5.8 percent.

The downgrade was based on the government’s slow management of finances such as budget spending and flood prevention measures, resulting in a lowered GDP of 0.3 percent, while the stagnant growth of the Thai export sector has affected 0.4 percent of the lowered GDP.

According to Paitoon, trade with Thailand’s partners will decline from 4.8 percent to 4.5 percent, while the country’s overall exports will grow only 7 percent from an earlier prediction at 8 percent.

He said the BoT must monitor the higher risks of the weakening world economy in the second half of 2012, which will affect the country’s export sector and lessen consumption, while domestic stimulants to the economy are also slowing down.

However, the slowed economy tended to lower inflation rates, both headline inflation and core inflation, Paiboon noted. (MCOT)
 


Thailand’s first EV charging station opens in Bangkok

The Metropolitan Electricity Authority (MEA) opened Thailand’s first electric vehicle (EV) charging station for the public, with nine more stations to be launched by the end of next year, MEA Governor Atorn Sinsawat said Wednesday.

The station opening was in response to the global warming issue, he noted, adding that countries such as Japan and the United States also have policies to support the use of electric cars.

The MEA, as a government organization, opened its first pilot EV station at its headquarters on Pleonchit Road at no charge until July 31 next year.

The nine other stations will be in Bangkok, Samut Prakan, and Nonthaburi, with the construction cost of each at Bt600,000. Services will include a quick charge at 20-30 minutes and a home charging system to fully charge a vehicle in 6-8 hours.

The Metropolitan Electricity Authority will order 20 electric cars for its organizational use within four years. The move is considered as beginning Thailand’s biggest step toward an electric cars society.

Assoc Prof Watit Benjapolakul, Electrical Engineering Department head at Chulalongkorn University, commented the government should support the use of electric cars as Japan and the US do, for instance, by offering tax reductions for such imported vehicles, and supporting opening EV charging stations as well as subsidizing free services.

The academic forecast more people will opt for such cars should their prices in Thailand be lowered from the current over Bt2 million to around Bt1 million.

Meanwhile, Mitsubishi Motors’ planning and marketing general manager Hideyuki Hatori said around 27,000 electric vehicles were produced in Japan for export.

The company is considering whether to open an electric car plant in Thailand for manufacturing its eco Mitsubishi Mirage as an electric car. If it was to do so, Hideyuki said the Thai government must provide complete privileges in setting up the plant, support the import of lithium batteries or the construction of a lithium batteries plant in Thailand, as well as reduce excise taxes from the current rate of 10 percent.

The manager noted three Mitsubishi electric cars have been imported to the country. Another four will be within this year.

The current price of a Mitsubishi electric car is Bt2.6 million, of which the import tax is still as high as 80 percent. Such price was not set for commercial purpose but rather for supporting research studies of related agencies, Hideyuki said, adding that sales for commercial purposes in Thailand is expected in the next five years. (MCOT)
 


HEADLINES [click on headline to view story]

Thailand’s Consumer Confidence Index on present economy increases for 8th consecutive month

Thailand’s 2012 economic growth projection drops to 5.7% from previously forecast 6%: BoT

Thailand’s first EV charging station opens in Bangkok
 

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