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 Friday August 31 - September 6, 2012
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BUSINESS
 

AEC 2015: the AFG consults a ‘mor doo’

Andrew Durieux

Dr. Iain Corness

The dynamic (and rapidly expanding, now 200 members) Automotive Focus Group (AFG) held its monthly meeting at the Amari. The topic was very salient to the industries covered by the AFG and was the ASEAN Economic Community (AEC), looking at the threats and opportunities.

The AEC holds many promises for its member states and peoples, with free flow of goods and services, free flow of labor, harmonized policies ... but is this really what is going to happen, or is it a Utopian dream?

The principal speaker was Andrew Durieux, a past president of the Australian Chamber of Commerce, and currently chairman of the Joint Foreign Chambers of Commerce Thailand (JFCCT) AEC Committee, who spoke on the AEC and how it will affect us, our businesses and our industry.

Some history was in order, with ASEAN having been formed in 1967, and receiving its charter in 2007. The original ASEAN is now joined with a group known as CMLV (Cambodia, Myanmar, Laos and Vietnam), but these latter four are somewhat behind in their employing the statutes enshrined by ASEAN.

With the AEC in place, and operating smoothly, there will exist policies to allow skilled labor groups to move freely around ASEAN. This includes doctors, dentists, accountants, engineers, nurses and architects. This relies on MRA’s (Mutual Recognition Agreements), and Andrew Durieux brought out the fact that there are many “get out of jail cards fee”, as the MRA’s have to be agreed upon, and some of the ASEAN countries do not have such legislation. He also pointed out that these skilled worker groups have to be ASEAN citizens, and if they want a license to work in Thailand will need to have literacy in the Thai language. “Free” movement would appear to be a pipe dream.

He pointed out that ASEAN is not really united, and Thailand has adopted a somewhat protectionist attitude with its plethora of regulations and laws, spanning many different government departments. (A festival of red tape!)

There are opportunities for the ASEAN countries provided by a “working” AEC, such as in the stock markets, ASEAN bonds, Customs agreements, a single Tourist visa, which Andrew Durieux said could be a “Flagship Project” which is needed give the disparate ASEAN countries a common focus.

He finished stating that for Thailand, the possibilities are good, IF the Thai government were to focus on the advantages that the AEC could bring. But will it? The “mor doo” (fortune teller) was not sure!
 


PM wants more use of research in country’s energy, development sectors

Prime Minister Yingluck Shinawatra on Monday expressed strong support for research for national development given Thailand’s limited energy and natural resources.

In her opening speech at a forum on industrial development in Bangkok, she said Thailand should make full use of the country’s research on energy and natural resources to give the country a competitive edge in the coming ASEAN Economic Community (AEC) in 2015.

She called on higher-education institutes to more fully utilize their research results by joining together with the public and private sectors.

Future research, she pointed out, should be conducted in accord with the needs of the state and private sectors for the sake of agricultural and industrial development.

Research scholarships should aim at subjects that enhance the country’s development, she said. (MCOT)
 


ASEAN spells out its tourism priorities ahead of 2015

ASEAN countries are now implementing a clear road map to achieve their tourism objectives for the ASEAN Economic Community, due 2015. There will be a new ‘ASEAN for ASEAN’ campaign and special promotions, along with enhanced strategic cooperation with the growth markets of China, Korea, Japan, India and Australia.

ASEAN Secretary-General Dr Surin Pitsuwan.

ASEAN Secretary-General Dr Surin Pitsuwan and the ASEAN Tourism Ministers have endorsed the plan, which includes a swathe of initiatives such as the creation of a new website and digital promotional campaigns targeting the mass markets of China and India.

ASEAN will also go for niche markets such as experiential, creative, adventure, business, senior, and long stay visitors. Further, there will be special promotions for the cruise market.

“Our strategy is designed to help build global recognition of Southeast Asia as a competitive, world-class tourism destination,” said Dr Surin. “Our focus is on drawing visitors to the region and encouraging them to visit more than one country. As each has its own unique attractions, we will capitalize on the sophisticated marketing capacity and resources of our individual national tourism organizations to spread the word.”

The ASEAN Tourism Strategic Plan 2011-2015 is the foundation of the ASEAN Tourism Marketing Strategy (ATMS) 2012-2015, adopted by ASEAN Tourism Ministers in January 2012. It is the plan with which ASEAN national tourism organizations (NTOs) seek to achieve the objectives of 2015 and maintain double digit tourism growth, an ASEAN hallmark for much of the last 14 years.

ASEAN destinations attracted 81.2 million visitors in 2011, an average increase of a million visitors each year for the last two decades. Three out of four visitors to ASEAN come from Asia; 46.5% from within ASEAN and 27.6% from other Asian markets. According to ASEAN NTOs, Europe is the next largest group of visitors to ASEAN at 12.2%, followed by Oceania (including Australia and New Zealand) at 5.3%, and the Americas at 4.4%.

Niche and mass market promotions will go hand in hand. ASEAN Tourism Marketing Working Group chairperson, Sansern Ngaorungsi, who is also deputy governor of the Tourism Authority of Thailand said, “… Tactical campaigns will … show the diversity of ASEAN, and mass tourism demand for mainstream attractions is expected to keep growing and bring important economic benefits to ASEAN destinations.”

One niche sector, cruise, is being favored by ASEAN because riverine and sea cruise ships usually visit more than one destination. To promote cruise ship activity in ASEAN, Singapore is organizing the “Cruise Shipping Asia Pacific 2012” forum on 17 September in Singapore.

Southeast Asia NTOs will also be emphasizing the grouping’s marketing plan at the ASEAN Tourism Forum which will take place in Vientiane, Laos 17-24 January 2013. Over 1,600 delegates will include some 150 ASEAN tourism ministers and officials, 800 ASEAN exhibitors, 400 international buyers, 150 international and local media and 100 tourism trade visitors.
 


Real estate business improves after last year’s floods

Housing Business Association chairman Isara Boonyang said the real estate business has expanded some 10-15 percent after last year’s floods, thanks to remedial measures implemented by the government.

The Bank of Thailand is offering Bt300 billion in soft or low interest loans for those affected by floods, while the government’s ‘first house’ scheme provides home buyers with interest-free loans for three years.

The expansion of so-called horizontal residential projects has been overtaken by vertical housing, high rises or condominiums, for many pieces of land have not been developed, he said.

The construction cost for a residence as well as real estate prices have moved up about 5 percent as a result of higher prices of land and the minimum wage rise of Bt300.

Many housing projects have adjusted home planning designs to be able to cope with future floods, he noted, such as dyke construction.

Isara believes Thailand will not face a flood crisis this year, for he thinks the government has measures to deal with such situations despite its as yet unclear water management plan.

Chairman Kitti Pattanapongpiboon of the Housing Finance Association said the overall amount asked for in applications for loans in the second quarter reached Bt270 billion, which was an improvement. The whole-year figure is expected to reach Bt300 billion.

The Housing Finance Association and Home Buyers’ Guide Company have joined together to sponsor a ‘Home Buyers’ Expo 2012, NPA Grand Sale 2012, and Home Loan 2012' to boost the housing market at Queen Sirikit National Convention Center from today through Sunday with special conditions offered to potential buyers.

Around 80,000 visitors are expected to join the four-day event. (MCOT)
 


Thai massage industry expected to blossom in AEC

The Ministry of Public Health has reported that the Thai massage industry last year generated up to 30 billion baht of income for the country and it is expected to expand further when the ASEAN Economic Community (AEC) is opened.

Minister of Public Health Wittaya Buranasiri recently held a press conference on the 9th National Herb Expo, which will be held from September 5-9 with an aim to support the Thai massage industry. During the conference, he stated that related authorities are now campaigning for people to get a Thai massage when they experience body aches, instead of taking analgesic or anti-inflammatory drugs.

He also disclosed a financial overview of the Thai massage industry, which showed that as much as 20-30 billion baht was generated for the country last year. It has also been discovered that nearly 2,000 people are working in this field.

Wittaya said the Ministry of Public Health is aiming to make Thailand the world’s ultimate destination for massage, with plans to improve the quality of the workers, offer more massage classes to the public and set up a massage center in every hospital.

With the AEC to be established in three years’ time, the minister expressed confidence that the Thai massage industry will flourish and bring in even more income for Thailand. (NNT)
 


Finance Ministry not proposing changes in vehicle tax structure

Deputy Finance Minister Thanusak Lek-uthai said the ministry will not yet propose vehicular tax structure changes for Cabinet consideration linked to the quantity of carbon dioxide (CO2) released by newly-produced vehicles.

Such a method of tax adjustment is intended to reduce environmental problems.

Thanusak said that the auto industry has only just recovered from last year’s flood, and is installing new machinery in its production lines, and the government recently launched its ‘First Car’ scheme to boost sales and car ownership in the auto sector.

Changing the vehicular tax structure should not be done now, he said, as it could require the auto industry to change its production lines, which will be a burden for the sector.

In case of a structural change, the Excise Department has studied how to collect motor vehicle excise tax in accordance with the quantity of carbon dioxide released.

A 50 percent tax collection applies to an engine higher than 3,000cc, while a 30 percent tax would be applied to vehicles with an engine smaller than 3,000cc.

In that case, the tax collection structure for vehicles with the usage of ethanol, gasohol (a gasoline and ethyl alcohol mix), and electric and eco cars will be annulled. (MCOT)
 


HEADLINES [click on headline to view story]

AEC 2015: the AFG consults a ‘mor doo’

PM wants more use of research in country’s energy, development sectors

ASEAN spells out its tourism priorities ahead of 2015

Real estate business improves after last year’s floods

Thai massage industry expected to blossom in AEC

Finance Ministry not proposing changes in vehicle tax structure
 

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