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ROLLS-ROYCE EXTENDS SUPPORT FOR UK TYPHOON FLEET

2010-06-02T10:19:00.000-07:00

Kindle Wireless Reading Device (6" Display, Global Wireless, Latest Generation)Rolls-Royce, the global power systems company, has signed an innovative service contract worth £865 million with the UK Ministry of Defence (MOD) to support the Royal Air Force’s fleet of Eurofighter Typhoon aircraft which are powered by EJ200 engines, assembled by Rolls-Royce in Bristol.

level of availability for its EJ200 engines.

Rolls-Royce has been contracted to support the RAF’s EJ200 engine fleet since November 2001 and has consistently met 100 per cent of the performance requirements from the outset.

Martin Fausset, Managing Director of Rolls-Royce Defence Aerospace, said: “This contract meets the challenge set by the MOD to industry of delivering affordable and innovative support solutions for the Typhoon programme. We apply a high level of technology and innovation into developing support solutions, as we do to developing our engines, which gives the Armed Forces the twin benefits of increased operational capability and better value for money.”

Typhoon Team Leader Air Vice Marshal Chris Bushell said: “Today’s announcement of a 10-year engine availability service with Rolls-Royce is good news for us all; the service will maximise aircraft availability by using the most cost-effective solution. Typhoon has now been operational in the air defence role for well over two years and a multi-role capability was integrated and declared combat ready by the RAF in July 2008. The signature of the Partnered Support Operational Phase 3 contract builds on this success and will underpin Typhoon’s growing capability and utilisation.”

Rolls-Royce undertakes all aspects of EJ200 engine support, including the provision of replacement engines to meet customer demands, and technical support both on-base and from the Rolls-Royce Operations Centre in Bristol.

Rolls-Royce support operations are centred at the Typhoon Propulsion Support Facility at RAF Coningsby, where the RAF’s Typhoon squadrons are based. From there, a team comprising both Rolls-Royce and RAF personnel manages the engine support for aircraft operations in the field and also carries out some engine repairs. This will be augmented in 2010 by a second Main Operating Base at RAF Leuchars where Rolls-Royce will also have a support team.

The majority of engine repairs are undertaken at the Rolls-Royce facilities at Ansty, near Coventry, and Bristol.

Rolls-Royce is a shareholder in Eurojet, the European consortium responsible for the EJ200 engine that powers the Eurofighter Typhoon twin-engine combat aircraft, and has a 37% production share of the programme.

News Source:
Thaibizpr.com

VMware Introduces New Certifications to Recognize Advanced Virtualization Skills among Customers and Partners

2010-06-02T09:55:00.000-07:00

Certified Advanced Professional Program Aimed at Developing and Advancing Virtualization Expertise to Enable the IT Infrastructure of the Future – Cloud Computing

Bangkok – May 24, 2010 – VMware, the global leader in virtualization solutions from the desktop through the datacenter to the cloud, today announced a new certification program, VMware Certified Advanced Professional (VCAP), to allow IT professionals to deepen their knowledge and expertise of VMware virtualization solutions. This advanced level of certification will enable organizations to transform IT environments through virtualization to help them better realize the greater value from flexible, agile IT-as-a-Service and cloud computing models.

Building upon VMware’s existing certification levels: VMware Certified Professional (VCP), of which there are over 50,000 individuals worldwide, and the elite VMware Certified Design Expert VCDX) of which there are approximately 50 worldwide, the VCAP certification is being added to the VMware Certification program to differentiate and acknowledge those professionals that have continued to grow and develop more cognitively complex skill sets beyond the VCP certification, while also serving as a stepping stone to the VCDX level.

“We expect that the addition of VCAP certification will increase the skills of thousands of IT professionals, providing advanced knowledge to strategically implement and manage virtualization solutions to derive maximum value for their company or customers,” said Enis Konuk, vice president of worldwide technical services at VMware. “The addition of VCAP to our certification program comes at a critical time as many companies need advanced skills to consider how to evolve their datacenters to be more cost and energy efficient – all the while maximizing productivity.”

Two Certified Advanced Professional Training Specialties to Choose From

To start, the VCAP program will offer two certification specialties for virtualization partners, end- users and consultants. VMware Certified Advanced Professional Datacenter Administration (VCAP-DCA) is directed toward System Administrators, Senior Consultants and Technical Support Engineers who are capable of working with large and/or more complex virtualized environments and can demonstrate technical leadership with VMware vSphere technologies. Successful candidates will also be capable of using automation tools, planning and designing virtualized solutions and administering all VMware vSphere Enterprise components. The exam for VCAP-DCA opens July 12, 2010. The other specialty, VMware Certified Advanced Professional Datacenter Design (VCAP-DCD), is directed toward IT Architects and Consulting Architects who can demonstrate their skills in designing VMware solutions in a multi-site, large enterprise environment. Successful candidates will have shown a deep understanding both of VMware core components and their relation to storage and networking, and also of datacenter design methodologies. They will also have shown knowledge of applications and physical infrastructure, as well as their relationship to the virtual infrastructure. Registration for the VCAP-DCD exam opens in August. VCP recipients interested in taking either or both of the VCAP exams may sign up to receive a notice when registrations open by visiting www.vmware.com/go/vcap.

VMware has designed several courses to help VCPs ramp their skills in preparation for taking the VCAP exams. Courses include VMware vSphere: Troubleshooting [V4] and VMware vSphere: Manage for Performance [V4] in prep for VCAP-DCA and VMware vSphere: Design Workshop [V4] to prepare for VCAP-DCD. While these courses are strongly recommended to help prepare individuals, they are not required to take the exam.

“The VCAP program will differentiate between those that know the core VMware product line versus those that fully understand and can architect an end-to-end virtualization infrastructure,” said Ernest Nichols, Virtualization Consultant, from premier partner, SHI International. “This ‘raising of the bar’ will keep value for the VCP who works inside of a customer’s organization, but allows VMware partners to show that we bring additional skills which can further add to their organizational tool belt.”

VMware Education Services provides industry-leading technical training and certification programs that build and recognize virtualization knowledge and expertise, equipping technical professionals to help transform their IT organizations and realize the full value of IT as a Service computing models.

VMware’s education offerings address the range of virtualization technologies – from datacenter to desktop and virtualization management, with onsite, online and e-learning instruction.

“VMware has more than 170,000 customers and 25,000 partners worldwide, working with someone that has industry-recognized VMware certification further validates that IT professional and demonstrates that they possess the skills they need to successfully build, manage, deploy and service your VMware infrastructure,” said senior director of worldwide education, Richard Kerr. “The introduction of the VCAP program demonstrates that we are fully committed to developing the skills and capabilities of our partners and customers.”

News Source:
Thaibizpr.com

“Jasmine Telecom Systems signs on to become an Alcatel-Lucent’s reseller”

2010-04-28T06:57:00.000-07:00

“Jasmine Telecom Systems signs on to become an Alcatel-Lucent’s reseller”
Focus on quality of services and cost-efficient solutions to customers

Bangkok, 26 April, 2010 — Jasmine Telecom Systems (JTS), a leader in ICT system integrator in Thailand has been named as a reseller for Alcatel-Lucent (Euronext: Paris and NYSE: ALU). Under the terms of the agreement, which is effective immediately, JTS will distribute a full range of Alcatel-Lucent converged communications solutions for carrier and non-carrier markets. The extensive, market-leading portfolio of products includes wireline, wireless and next-generation applications.

Terasak Jerauswapong, President of JTS stated, “We are excited to be chosen as an Alcatel-Lucent reseller in Thailand and expect that the synergy created between their world-class product line and our growth model will drive increased revenue for both parties. This is a substantial partnership for JTS and a significant opportunity to elevate our system integrator business by broadening our marketplace beyond the non-carrier community and into a solution provider in much larger carrier space.”

“This relationship is a sign of Alcatel-Lucent’s ongoing commitment to the growth of our business through channels in Thailand,” said Benjamin Kharlakian, Managing Director at Alcatel-Lucent (Thailand). “Alcatel-Lucent’s products, combined with JTS’ strong expertise in system integration together with well customer-experience opening new markets through distribution will play a key role in our growth strategy. JTS will add a variety of services, including solution strategy planning, implementation, testing, provisioning as well as turnkey solution design, to current offers based on the Alcatel-Lucent broad portfolio, clearing the way for the world class Alcatel-Lucent portfolio.”

News Source:
ThaibizPR.com

KBank – SSO jointly launch a special Home Loan

2010-04-28T06:41:00.000-07:00

Mr. Chartchai Payuhanaveechai (2nd from left), First Senior Vice President, KASIKORNBANK and Mr.Pun Wunnapinij (5th from left), Secretary General, Social Security Office together with executives from 8 Banks jointly signed a Memorandum of Agreement in launching a special Social Security Service Home Loan with a fixed MLR rate of 2.5% for 5 years specially tailored to suit the needs of Social Security members. Mr. Phaithoon Kaewthong, Labor Minister acts as the witness of the signing ceremony, which was recently held at Miracle Grand Hotel, Vibhavadee Rangsit Road.

For more information,please contact:
KASIKORNBANK
Tel(662) 470 2653-8

News Source:
ThaibizPR.com

Bank of Ayudhya reports first quarter net profit of Baht 2.08 bn

2010-04-28T06:34:00.000-07:00

Bank of Ayudhya reports first quarter net profit of Baht 2.08 bn
A 101% growth from Q1 2009 and a 31% growth from Q4 2009

Bangkok, 21 April 2010: Bank of Ayudhya Public Company Limited announced that the Bank and its subsidiaries recorded a significantly improved performance for the first quarter of the year. On a consolidated basis, the Bank posted an operating profit before provisioning for doubtful accounts and taxes of Baht 6.15 billion, representing 87% and 24% increases compared to the first quarter of 2009 and fourth quarter of 2009 results, respectively. After setting aside provisions for doubtful accounts of Baht 3.18 billion and taxes of Baht 0.89, the bank recorded a net profit of Baht 2.08 billion, a 101% improvement compared to the same period last year and a 31% improvement when compared to the fourth quarter of 2009.

Major contributors to the favorable first quarter performance were a 55% increase in net interest and dividend income and a 89% increase in non-interest income while non-interest expenses growth was held to 51% compared to the same period in 2009. Compared to the prior quarter, the improvement was driven by a 12% increase in net interest and dividend income and a 22% growth in non-interest income with non-interest expenses growing by 9%.

Mr. Mark Arnold, President & CEO of Bank of Ayudhya, said, “We are very pleased with our strong start to 2010, a year in which we are celebrating the Bank’s 65th anniversary. First quarter performance showed a significant improvement over last year and is better than plan. Operating profit before provision and taxes increased 87% year-over-year while net profit doubled. This strong performance also enabled us to further strengthen our balance sheet with provision coverage moving up to 79% while net NPLs declined to 4.9%. This positions us well to accelerate our resolution of the Bank’s legacy NPLs.

While the integration and streamlining of our group companies has progressed well against our 12 month plan, a significant improvement in profitability in the first quarter of the year is very encouraging. It shows that our efforts in leveraging identified synergies have started to gain momentum across our subsidiaries. We are confident that the strong foundation, built in past years, will enable us to achieve our business objectives set for 2010. We will continue to work hard on the integration to ensure we maintain our strong growth trajectory in the years to come.” Mr. Arnold added.

As of 31 March 2010, on a consolidated basis, the Bank had total assets of Baht 822 billion, loans of Baht 607 billion and deposits of Baht 534 billion. The Bank’s BIS ratio stood at 14.5% with Tier 1 capital of 11.75%.

About Bank of Ayudhya Public Company Limited

Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in Thailand with total assets of Baht 822 billion. BAY provides a full range of banking services to both its commercial and individual customers through 575 branches nationwide. On January 3, 2007, BAY and GE Money, a premiere global consumer financial services firm, successfully became strategic partners. GE Money and the Ratanarak Group are now major shareholders with 33% and 25% stakes in BAY, respectively. For more information, please visit Bank of Ayudhya’s website at

News Source:
Thaibizpr.com

Airbus e-shop is now online offering a wide selection of Airbus-branded good for men,women,children and aviation enthusiasts alike.

2009-11-13T07:05:00.000-08:00

The e-shop is available for Airbus employees and launched to the external world during the Le Bourget air show in June 2009: www.airbus-shop.com

Airbus e-shop is now online offering a wide selection of Airbus-branded good for men,women,children and aviation enthusiasts alike.

The e-shop is offering Airbus-branded products of everyday use-and it’s a great place to find unique gifts for friends and family. Payment, in euros, are made simple and easy by credit card, with goods shipped directly to the buyer’s home address. The Airbus e-shop is launched in English only but the navigation of the Airbus e-shop is quite intuitive with great image and illustrations to make the shopping experience easy and user- friendly.

New products will be added on a regular basis- so save the e-shop in you list of favorites for an east access.

News Source:ThaibusinessPR.com

NEW ETIHAD A330-200 FREIGHTER MAKES FIRST TEST FLIGHT

2009-11-13T06:58:00.000-08:00

Etihad Crystal Cargo’s new A330-200 freighter has made its maiden flight over Toulouse in France, where the aircraft manufacturer Airbus is based.

The flight marks the start of a 200 hour flight-test and certification campaign and paves the way for delivery to Etihad Crystal Cargo, the launch operator, next year.

The new A330-200F will enhance significantly Etihad Crystal Cargo’s capacity with its extensive range and a higher maximum payload. Etihad ordered the A330-200F at the 2007 Paris Air Show in Le Bourget.

Des Vertannes, Etihad Airways’ executive vice president cargo, said: “The maiden test flight is always a special occasion for the launch operator and we are very proud to see the Etihad Crystal Cargo A330-200 freighter take to the skies.

“The A330-200F will make a major contribution to the expansion of Etihad Crystal Cargo as it can carry up to 69 metric tonnes of cargo and can fly up to 6,000 kilometres non-stop. This ensures we can continue to offer our customers the very highest levels of service and commitment.”

John Leahy, Airbus’ chief operating officer – customers, said: “The efficient A330-200F is very well adapted to today’s market dynamics of rising fuel prices and increased pressure on yields.

“The A330-200F is the right aircraft at the right time. We are at the eve of a market recovery, and now is the time for airlines to prepare for future freight growth.”

With its fleet of two Airbus A300-600 freighter aircraft and an MD11, Etihad Crystal Cargo serves 14 cargo freighter destinations, including Frankfurt Haan, Mumbai, Lagos, Colombo and Milan. It also operates bellyhold services on all Etihad Airways passenger flights.

About the A330-200 freighter:

• With a greater payload than initially anticipated, the A330-200F offers two operational configurations depending on the planned mission.

• The aircraft can carry more than 64 metric tonnes over 4,000 nautical miles / 7,400km, or more than 69 metric tonnes up to 3,200 nautical miles / 5,930km - non-stop.

• With an optimized fuselage cross-section, it has the interior flexibility to carry a wide variety of pallet and container sizes for maximum interlining capability, offering 30 per cent more volume than any freighter in its class.

• Compared with the passenger A330-200, this new purpose-designed freighter version has an increased maximum-zero-fuel weight (MZFW) of eight tonnes to allow for high-density cargo configuration transportation of 10lb/ft3.

• In addition, the aircraft features a reinforced fuselage plus new strengthened floor with a specially designed floor-grid for higher running loads.

Full Story at Thaibusinesspr.com

HYDERABAD JOINS EXPANDING FLIGHT NETWORK TO INDIA

2009-11-13T06:52:00.000-08:00

Etihad Airways, the national airline of the United Arab Emirates, has launched flights to its latest destination in India, the city of Hyderabad.

Etihad is the first airline to operate flights between Abu Dhabi and the state capital of Andhra Pradesh. Initially operating four flights a week, Etihad will increase to daily from the start of 2010.

HYDERABAD JOINS EXPANDING FLIGHT NETWORK TO INDIA

With the addition of Hyderabad Etihad flies to seven Indian destinations including the cities of New Delhi, Chennai, Mumbai, Kozhikode, Thiruvananthapuram and Kochi. In total the airline now operates 42 flights to India each week.

James Hogan, Etihad Airways’ chief executive, said: “We are thrilled to launch flights from Abu Dhabi to Hyderabad and to serve the community of Andhra Pradesh. Abu Dhabi and Hyderabad are both growing dynamic cities and the new service will enable commercial ties to develop.

“Etihad has a recognised commitment to serving the Indian market whether it is expatriate Indian nationals who are residing in countries across the world or the business and leisure traffic that is increasingly heading to cities like Hyderabad via our Abu Dhabi base.”

Mr Sripathy, CEO of GMR Hyderabad International Airport Ltd, added: “We are delighted to welcome Etihad to Hyderabad. This will provide a wider choice for travellers wishing to fly to the UAE from our airport.

“We are sure that the new service will be well received and will continue to offer our support in helping Etihad further increase frequencies on the route.”

Etihad operates a two class Airbus A320 on the new Hyderabad route configured to carry 140 passengers with 20 in business class and 120 in economy class.

Hyderabad is well-known for its rich history, culture and architecture. In recent times it has emerged as a modern centre for information technology and bio-technology industries as well as an increasingly popular conference and exhibitions location.

The city is also a centre for film-making and is home to the world’s largest film studio, the Ramoji Film City.

Photo caption: Neerja Bhatia, Etihad Airways country manager for India, and Ayman Hazeem, Etihad Airways manager business airport operations, perform that lamp lighting ceremony to mark the launch of the airline’s new flights to Hyderabad.

About Etihad Airways

Etihad Airways is the national airline of the United Arab Emirates based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights to over 50 destinations in the Middle East, Europe, North America, Africa and Asia. For further details: Etihad Airways Corporate Communications: visit www.etihadmediacentre.com

News Source:
Thaibusinesspr.com

Thai people traveling less due to economy, virus outbreak: BU poll

2009-08-08T08:33:00.001-07:00

BANGKOK, Aug 7 (TNA) - Thais will travel less in the second half of this year, compared to the first half, due to the economic crisis and an outbreak of Influenza Type A(H1N1) according to an opinion poll conducted by the Bangkok University Research Center on Thai travel trends in the second half of this year.

The survey was conducted among 1,116 respondents from July 31 to August 2.

The survey found that 47.7 per cent of the respondents believed they would travel less during the rest of this year than they had in the first six months. Many indicated they might have to save money because they are not confident the economy will improve and they are worried about the outbreak of the Influenza Type A(H1N1). Over one-third -- 36 per cent -- said they would travel as much as they did in the first six months of this year.

Sixteen per cent of respondents said they would travel more because there are several long holidays during the winter when the weather is nice and they want to spend time with their families.

Thirty-six per cent of respondents said the outbreak of Influenza Type A(H1N1) is the factor that will most affect travel in the second half of this year while 35 per cent said that economic factors would mainly affect travel likelihood, and 27 per cent said political problems would affect their willingness to travel.

Asked about their confidence regarding the safety of travel during Thailand’s siege of Influenza Type A(H1N1) while traveling, almost twice as many respondents -- 64 per cent -- said they were not confident, and only 36 per cent said they were willing to travel.

Some 19 per cent of respondents said want the government and agencies concerned to revive the economy, 18.4 per cent want to see more public relations campaigns to promote tourism, followed by 18.4 per cent, who want discounted tour packages. (TNA)

Economy likely to enjoy strong recovery next year, says FTI

2009-08-08T08:31:00.001-07:00

BANGKOK, Aug 7 (TNA) – The Thai economy is likely to enjoy a strong recovery next year as a consequence of the planned government’s major spending to stimulate the economy, according to the Federation of Thai Industries (FTI).

FTI Chairman Santi Villasakdanont said the economic difficulties facing the country began to ease in the second half of this year, as witnessed by increase government tax collections.

Next year would see the government spend up to one trillion baht to jump start the economy through the Thai Khem Kaeng (Stronger Thai) program.

He said the amount would be used for investment to stimulate the economy in many segments including irrigation, education, transport system and logistics.

The amount, if spent together with the 2010 budget and a loan facility of more than Bt200 billion extended under executive order, is sufficient to stimulate the economy.

Should the government spend the amount in an appropriate and timely manner, Mr. Santi said, the economy is very likely to pick up.

“Actually, the Thai economy has begun to recover since March given improvements in many economic indicators including total sales, unemployment and production capacity utilisation.

“Should the government stipulate spending and economies of Thailand’s trading partners including China and ASEAN pick up, it will help accelerate the Thai economic recovery,” he said. (TNA)

Suvarnabhumi Airport Link likely to begin service as scheduled, says SRT chief

2009-08-08T08:26:00.001-07:00

BANGKOK, Aug 6 (TNA) – The Airport Rail Link project, providing direct rail service to and from Suvarnabhumi Airport, is expected to be completely implemented and open for service as earlier scheduled in December, according to the State Railway of Thailand (SRT).

SRT Governor Yuthana Tupcharoen said the project has made much progress--some 98 per cent -- toward its implementation.

At present, it is in process of testing its systems to ensure readiness prior to opening for service, including the test run, safety control, personnel recruitment, and procurement of facilities and utilities for passenger convenience.

He said SRT had attempted to keep both the Thai public and the international community abreast of the progress being made in the implementation of the project and its readiness to open for service.

Now, he affirmed, SRT is testing the systems and expects the Airport Rail Link project will open for service as previously scheduled in December this year. (TNA)

Investment promotion applications drop in first 7 months

2009-08-08T08:23:00.001-07:00

BANGKOK, Aug 8 (TNA) – The number of projects applying for investment promotions in the first seven months of 2009 year totalled 588, down from 701 in the corresponding period one year ago, according to Thailand’s Board of Investment (BoI).

Projects granted investment promotions in the first seven months of this year totalled 482, down from 888, with an investment value of Bt115.3 billion and combined registered capital of Bt15.3 billion.

Project investment amounted to Bt22.3 billion, down by 5.3 per cent from the previous year’s Bt234.7 billion.

Total registered capital dropped to Bt43.5 billion from Bt48.1 billion. Of this, Bt11.8 billion is registered by foreign investors, down from Bt27.1 billion, while Bt31.7 billion by Thai investors, up from Bt21 billion.

It resulted in employment dropping by 53.5 per cent to 49,584 workers from 106,628, or more than half.

The country most seeking investment promotions is Japan with 132 projects, followed by Europe, the United States, Singapore, Taiwan, and Hong Kong.

The largest number of businesses applying for investment promotion are in the service and public utility area with 212 projects, followed by agriculture, production, and electronics and electrical appliances.

Based on investment value, service and public utility businesses remain on top with Bt159.4 billion, followed by agriculture and production, metal products, machinery, and transport equipment. (TNA)

Deputy police chief says Sondhi case probe making progress

2009-08-08T08:19:00.000-07:00

BANGKOK, Aug 8 (TNA) - The ongoing police investigation into the attempted killing of media mogul Sondhi Limthongkul earlier this year has made considerable progress as investigators are working actively again, said Deputy National Police Chief Pol Gen Thani Somboonsap on Saturday.

Gen Thani, who briefed Prime Minister Abhisit Vejjajiva on the case for more than one hour earlier in the day, told journalists that he doesn’t yet know whether more arrest warrants will be sought in the attempted murder of Mr. Sondhi, a core leader of the People’s Alliance for Democracy (PAD) on April 17.

The court earlier issued a warrant for Sgt-Maj Panya Srihaera a non-commissioned officer from the Army’s Special Warfare Command in Lop Buri and Pol Cpl Worawut Mungsanthi, assigned to the Narcotics Suppression Bureau (NSB) for involvement in the failed killing attempt.

Both men, however, are still at large.

Cpl Worawut earlier sent a letter to Gen Thani denying any involvement in the killing attempt.

Pol Gen Thani said he was optimistic that the case could be wrapped up before he retires from his post, scheduled from this October 1 due to compulsory retirement age of 60.

He declined to say whether the annual reshuffle list of 152 police generals, proposed by National Police Chief Pol Gen Patcharawat Wongsuwan, who also retires at end of September, and approved earlier by Police Commission, would have any effect on the investigation.

The police investigation team probing the Sondhi incident earlier complained of difficulties in conducting the case as information had been leaked by unnamed police officers. (TNA)

No foreigners found violating law on buying, renting farmland in Thailand

2009-08-08T08:13:00.000-07:00

BANGKOK, Aug 8 (TNA) - Concerned Thai officials will continue monitoring whether foreigners have violated law on buying or renting farmland to engage in agriculture in the kingdom although initial investigation found that such a practice does not exist, Deputy Commerce Minister Alongkorn Ponlaboot said on Saturday.

Mr Alongkorn said an investigation had been conducted in 20 provinces nationwide by Commerce Ministry Business Development Department officials and it was found that no foreigners had either bought or rented farmland over the limit set by law to continue farming in Thailand.

However, the ministry will continue monitoring the sector and seek cooperation from owners of agricultural land, and members of the Thai Farmers Association (TFA) for help in monitoring the activities of foreigners who may have entered into the business, he said.

Farming as an occupation is reserved for Thais only and the probe was conducted following an outcry by some farmers that foreigners have bought numerous plots of farmland here and hired farmers to provide the labour.

On Monday, the ministry will ask the Department of Special Investigation to continue probing whether foreigners have bought or rented farmland through business registration or a joint investment with Thais, said Mr. Alongkorn.

The ministry will also cooperate with TFA president Prasit Boonchuey in investigating the matter, he said.

He said Thailand will ask Bahrain’s Prime Minister Sheikh Khalifa bin Salman Al Khalifa during a meeting with his Prime Minister Abhisit Vejjajiva Monday to buy Thai agricultural products or enter into joint investments in farming.

Sheikh Khalifa is scheduled to arrive here Sunday for a three-day official visit at the invitation of the Thai government. (TNA)

Ultimate Ears Creates Pro-Quality Audio Experience for Your iPod

2009-08-05T14:27:00.000-07:00

New addition to Ultimate Ears Earphones in Thailand: Ultimate Ears 700 Noise-Isolating Earphones Pack Bold Sound in a Compact, Comfortable Design

Bangkok, Thailand – 30th July 2009 – You live to hear your favorite band live. There’s something indescribably beautiful about great music as it’s meant to be heard – and experienced. That’s what Ultimate Ears by Logitech® has introduced with the new Ultimate Ears 700 noise-isolating earphones. The earphones deliver the kind of audio quality used by 75 percent of the world’s touring professional artists – including acclaimed rock bands The Killers, Green Day and Fall Out Boy – all in a comfortable, compact design.

You don’t have to be a rock star to enjoy Ultimate Ears. Any way you get your music – from your iPod, other MP3 players, or your computer – the Ultimate Ears 700 noise-isolating earphones offer superior sound without cramping your style. And unlike other high-quality in-ear earphones, the Ultimate Ears 700 earphones use a custom-tuned dual-armature microdesign that delivers highly accurate sound reproduction in a compact design – each earphone is smaller than a coin.

When you’re listening to Fall Out Boy, or your favorite band, on your Ultimate Ears 700 earphones, Peter Wentz’s vocals sound nearly as good as they sound live. Featuring a custom-tuned dual-armature layout that separates the broad frequency response – 10 Hz to 16.5 kHz – into two high-fidelity channels per ear, the Ultimate Ears 700 earphones deliver music the way it’s meant to be heard.

“Ultimate Ears legacy of creating custom in-ear monitors for rock stars directly benefits people who love great music,” said Philippe Depallens, Logitech vice president and general manager of the Ultimate Ears product unit. “After designing thousands of in-ear monitors for professionals, we’ve put everything we know about delivering great sound quality into the Ultimate Ears 700 earphones.”

The Ultimate Ears 700 earphones include an assortment of ear cushions so you can choose the fit that’s best for you. You can choose between small, medium and large soft-silicone ear tips or use the included Comply™ foam tips for optimum comfort, fit and seal. The custom fit provides passive noise-isolation of up to 26 dB, allowing you to get fully immersed in your tunes.

For your traveling convenience, the Ultimate Ears 700 earphones also come with a pocket-ready hard case. At just 11.6 grams, the earphones are light enough to wear whether you’re relaxing, riding the bus to work, or going for a jog. And thanks to its compact and comfortable design, you’ll experience less ear fatigue, leaving you free to enjoy pure music.

Pricing and Availability

The Ultimate Ears 700 noise-isolating earphones are expected to be available in Thailand by early August for a suggested retail price of 8,900 baht. For more information on product availability, kindly refer to Dynamic International Products Co., Ltd, office numbers 02-664-0959 / 02-2261-3939.

About Ultimate Ears

Ultimate Ears makes listening devices that let people enjoy music the way it was meant to be heard. A product unit of Logitech International (SIX: LOGN) (NASDAQ: LOGI), Ultimate Ears is the leading supplier of custom in-ear monitors for professional musicians and an emerging provider of premium earphones and headsets for the consumer market.

About Logitech
Logitech is a world leader in personal peripherals, driving innovation in PC navigation, Internet communications, digital music, home-entertainment control, gaming and wireless devices. Founded in 1981, Logitech International is a Swiss public company listed on the SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

Logitech, the Logitech logo, and other Logitech marks are registered in Switzerland and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s Web site at www.logitech.com.

REF:www.thaibusinesspr.com

British Airways and Qantas appoint new manager in Thailand

2009-08-05T14:10:00.000-07:00

British Airways and Qantas have announced the appointment of Neil Ager as Manager for Thailand, Cambodia and Vietnam for both airlines. Based in Bangkok, Mr. Ager replaces Kevin McQuillan who moved to Hong Kong as British Airways Regional General Manager, Far East.

In Mr. Ager’s new role at the company, he will oversee the key commercial strategies and initiatives across the Thailand and Indochina markets for both airlines, including the operations at Suvarnabhumi Airport.

Mr. Ager brings extensive experience from across the British Airways network. Most recently, he was Revenue Development Manager, South East Asia for Qantas/British Airways based in Singapore. Prior to that, he was involved in a range of commercial roles for British Airways, including UK sales corporate account management at Waterside.

Stephen Limbrick, British Airways and Qantas Regional General Manager, South East Asia said, “We are delighted to have Neil joining our strategic hub in Bangkok. His expertise gained from work across the British Airways network and most recently in Singapore will be of great value to us in the region as we navigate through these tough times.”

British Airways and Qantas have been operating in Thailand for 75 and 56 years respectively. In 1996 the airlines formalised their relationship and now operate a joint service station in Bangkok, sharing operating and marketing services. Currently, British Airways operates 28 direct flights per week in a codeshare agreement with Qantas to and from Bangkok serving London Heathrow on the Northern route, and Sydney on the Southern route.

To learn more about the airlines, please visit www.ba.com and www.qantas.com

REF:www.thaibusinesspr.com

A(H1N1) cases rise to 518; More defences mounted

2009-06-18T11:16:00.000-07:00

BANGKOK, June 18 (TNA) - Thailand’s overall influenza A(H1N1) patient count reached 518 on Thursday with 113 new cases diagnosed, even as several Bangkok schools resumed classes after being closed earlier this week to prevent the potential spread of the new virus among students.

The Bureau of Epidemiology revealed that of the 518 A(H1N1) patients, more than half lived in metropolitan Bangkok.

The total number of student infections reached 79 in 28 educational institutions which have closed, according to Dr. Chinnapat Bhumirat, Permanent Secretary for Education, said in his capacity of head of the Ministry of Education working committee to prevent the spread of the H1N1 flu.

The Bangkok Metropolitan Administration operates 435 schools, and the capital and its suburban areas include numerous private schools and universities, tutoring centres, computer and language schools not included in this number.

Dr. Chinnapat said that several schools in Bangkok reopened on Thursday, including Suankularb Wittayalai, where two students tested positive to the new virus. The ministry ordered schools under its authority to implement preventive measures as agreed at the ministry meeting.

Among its measures, the education ministry is aimed at close surveillance and screening under the guideline of the public health ministry rather than closing school, which can affect schooling and students.

However, if the spread of the H1N1 virus increases widely enough to reach 10 per cent of the student population, additional school closures will be needed to contain the virus, he added.

He also advised parents to let their children stay at home if they fall ill with flu-symptoms, which could be cured in a week.

However, the primary school of Bangkok’s Assumption College on Thursday became the 28th school to close and will resume classes on Tuesday (June 23). (TNA)

Piyasvasti is new THAI president

2009-06-18T11:11:00.000-07:00

BANGKOK, June 18 (TNA) – Thailand’s national flag carrier Thai Airways International (THAI) on Thursday selected former energy minister Piyasvasti Amaranand as president of the cash-strapped airline, Chairman Amphol Kitti-amphon announced Thursday.

Following the action of the board, Mr. Amphol said the next step calls for the Ministry of Finance, the major shareholder of THAI to discuss with Mr. Piyasvasti regarding salary and fringe benefits to be offered.

Mr. Amphol said he believed that Mr. Piyasvasti could begin work as THAI’s 15th president in mid-July.

He said there is no conflict of interest with Mr. Piyasvasti being a board member of Bangkok Aviation Fuel despite earlier concern, as oil is not a key business of the national airline.

During the meeting, THAI board also approved a plan to borrow Bt23 billion from financial institutions in the country. The airline is expected to receive it first loan of Bt5 billion from the Government Savings Bank.

THAI share price closed on Thursday at Bt12.80 on the Thai bourse, down Bt0.10 from Wednesday’s closing. (TNA)

Thai economy contracts 5% in second quarter

2009-06-18T11:08:00.000-07:00

BANGKOK, June 18 (TNA) - Thailand’s economy contracted 5.3 per cent during the second quarter of 2009, but there are signs that it will return to the black in the last quarter this year, according to Thanawat Palavichai, Director of the Economic and Business Forecast Centre at the University of the Thai Chamber of Commerce (UTCC).

By regional sectors, the economy in the Central region contracted most during the second quarter with 7.1 per cent followed by Bangkok and surrounding provinces at 4.9 per cent, the South at 4.1 per cent, the Northeast with 4 per cent, and the North with 3.7 per cent, said Dr. Thanawat.

There are signs that Thailand’s economy will pick up due to an increase in purchase orders from overseas on the back of the improving global economy, he said.

Domestic consumption is seen declining only slightly, instead of dropping more severely, thanks to the government’s economic stimulus programme, he said. Private investment is also likely to slow down as investors await domestic political transparency.

Several industrial sectors have begun to recover, but agricultural product prices and the tourism sector are still falling, he said.

Mr. Thanawat said the country’s economy is projected to turn positive in the fourth quarter with a growth of 0.7 per cent, but on average it will shrink 4.1 per cent due to earlier contractions.

The economy is expected to improve in the fourth quarter due to the government’s second economic stimulus programme, speedier disbursement of government’s budget and investment promotion, he said. (TNA)

Economic crisis takes toll on business paper

2009-06-18T11:07:00.000-07:00

BANGKOK, June 18 (TNA) – The ongoing economic crisis has taken its toll on the country’s leading business newspaper, Than Setthakit, as the company decided to make 60 employees redundant on June 12.

Chaiwat Wanichwattana, executive editor of the weekly newspaper, said the firm had given lay-off notices to 60 employees including reporters and some staff from other departments.

He said the company needed to make the redundancy because it had much more expenses than revenues under the current economic meltdown.

The firm had no choice but to reduce overhead and downsize its organisation for survival.

The laid-off employees would receive severance pay, depending on their service length. But the payment would be made in installments because the company has financial constraints.

Mr. Chaiwat said the company’s staff had neither protested nor felt unhappy with the decision because the firm had periodically told them of difficulties it is experiencing.

“Everybody understands what happens to our organidsation. It is very necessary for us to downsize business for commercial viability,” he said. (TNA)

Finance minister shrugs off advice to use reserves

2009-06-18T11:05:00.000-07:00

BANGKOK, June 18 (TNA) – Finance Minister Korn Chatikavanij on Wednesday brushed aside advice by some academics that the government reassign the country's US$30 billion in international reserves to stimulate the economy, saying he saw no need for such a move because the country still had enough liquidity.

“We have no plan to earmark the international reserve as suggested by some academics. We plan to seek domestic loans following passage of the executive decree by Parliament empowering the government to borrow because we believe the local liquidity remains sufficient,” he said.

Asked whether he is confident of the economic recovery this year once the executive decree takes effective, Mr. Korn noted that the clear result of implementating the short-term economic stimulus package was an increase in value-added tax collection in April and May.

He affirmed the government would forge ahead with its investment plan made under the “Strong Thailand” scheme.

The finance minister expressed optimism that Thailand's economic liquidity would improve clearly in the last quarter of this year and that the expected shrinkage of 4-5 per cent in the gross domestic product (GDP) would ease as the supplementary measures and the executive decree on borrowing are implemented. (TNA)

REF:enews.mcot.net

Thailand's Fiscal 2010 budget deficit in House for debate

2009-06-18T10:59:00.000-07:00

BANGKOK, June 17 (TNA) - Thailand’s lower house of Parliament, the House of Representatives, on Wednesday began debating the government’s budget for Fiscal 2010, which starts October 1, totalling Bt1.7 trillion, down from the current fiscal expenditure amounting to Bt251.7 billion.

The deficit budget totalling Bt350 billion for Fiscal 2010 is, according to Prime Minister Abhisit Vejjajiva, focuses on eight strategies.

Mr. Abhisit told the members of parliament that of the eight planned strategies, social development and improving the quality of life will receive the highest allocation, at Bt506.64 billion followed by public sector expenditure of Bt426.6 billion to be spent on emergency items, plus personnel administration and the public debt.

Of the total Bt1.7 trillion budget, the biggest category is the Education Ministry with Bt345.66 billion, followed by the Ministry of Finance with Bt215.89 billion and the Central budget totalling Bt215 billion.

In defending the budget, Mr. Abhisit said although funding basic infrastructure projects for Fiscal 2010 is reduced, the shortfall could be compensated for by planned spending on the government’s three-year second economic stimulus programme with a total spending of Bt800 billion.

Half the Bt800 billion will be borrowed from local financial institutions, while another Bt.400 billion will be borrowed from abroad.

Mr. Abhisit said he is optimistic that Thailand’s economy will start recovering in the final quarter this year. Next year, the economy is projected to grow between 2-3 per cent, and inflation is estimated at 0-1 per cent. (TNA)

REF:enews.mcot.net

Battered tourism sector seeks urgent government help

2009-06-18T10:57:00.000-07:00

BANGKOK, June 17 (TNA) - Amid a sharp drop in tourist arrivals to Thailand, the country’s tourism agencies were alarmed and strongly urging the government to provide urgent measures to rescue the beleaguered industry.

Tosaporn Thepbutr, deputy-chairman of Committee on Tourism and Sports, said the Association of Domestic Travel (ADT), the Thai-Chinese Tourism Alliance Association (TCTA) and Thailand-Japan Tourism Promotion Association on Tuesday submitted a complaint letter to the committee.

They charged that although the government had announced tourism as a national priority, to date no concrete measures have been implemented by concerned-agencies to boost the country’s tourism industry. So the premier himself should intervene to resolve the problems.

Thailand’s tourist arrivals sharply drop to a critical level, Mr. Tosaporn said, in June alone, the number of tourist arrivals has dropped from 165,000 in the same period of 2008, to 27,000 in 2009 due to the Influenza A(H1N1) outbreak, or 33.45 per cent year-on-year.

Mr. Tosaporn said that with the falling number of tourist arrivals from almost every nation, except from Iran and Hong Kong, the earlier estimated arrival levels of 11 million tourists projected by the Tourism Authority of Thailand (TAT) will be unlikely to achieve the target.

"The causes of the sharp drop in tourist arrivals are attributed to the closure of Suvarnabhumi Airport by the People’s Alliance for Democracy (PAD) in November and December, and recent domestic political turmoil, combined with the current outbreak of the H1N1 flu,” Mr. Tosaporn said. (TNA)

REF:enews.mcot.net

Continental Automotive opens plant in Rayong

2009-06-18T10:50:00.000-07:00

RAYONG, June 16 (TNA) - Continental Automotive (Thailand) Co., Ltd., a subsidiary of Germany-based Continental AG, one of the world’s top five automotive suppliers, on Tuesday opened a plant in the eastern province of Rayong.

Located at Amata City, the company’s first plant was built with an investment of approximately Bt5 billion and will produce Powertrain diesel injectors, high pressure pumps and common rail assemblies. In future, interior electronics will be produced at the plant.

The company’s first lot of export will be for markets in China, India and Europe this month. It will start supplying its products to the Thai market in 2010 and, according to the company’s plan, 70 per cent of the total output will be for the Thai market and the rest for India and Europe.

Managing Director Thomas Chambers of Continental Automotive (Thailand) said that although the economic situation is not bright, his company decided to invest as it considers that the Asian market can still grow at a high rate.

Thailand, said Mr. Chambers, is the automotive hub for ASEAN (Association of Southeast Asian Nations) and also the company’s production base for export to other countries. (TNA)

REF:enews.mcot.net

SCB forecasts 2009 growth will contract 5%

2009-06-18T10:47:00.000-07:00

BANGKOK, June 16 (TNA) - Thailand’s gross domestic product (GDP) is projected to contract about 5 per cent this year, more than the 3-3.5 per cent forecast earlier by the government, according to a report issued by the Siam Commercial Bank (SCB) Center for Economic and Business Intelligence.

The SCB unit said the current economic meltdown in Thailand is “unlike” the Asian financial crisis, which originated in Thailand in 1997, or the sluggish economy in the United States in 2001, because the country’s two major business sectors -- tourism and export-related production -- are being hardest hit now.

SCB said the export values of vehicles and parts, electrical appliances and electronics in the export-related production sector have already retreated 43, 20 and 14 per cent respectively since Thailand’s economy turned sluggish last July.

In the tourism sector, the number of employees laid off from their jobs were larger than those three key sectors as there are many small and medium-sized enterprises related to tourism such as hotels, restaurants and retail stores, the center noted.

The number of foreign arrivals in Thailand during the first quarter of 2009 had fallen 15 per cent while it is projected that earnings from tourism should decline much more due to global economic meltdown and tourists were reluctant to travel, it said.

Despite the economic slowdown in Thailand, prices of single detached houses have risen slightly, it added. (TNA)

REF:enews.mcot.net

Stock plunge won't affect listings of many firms: SET chief

2009-06-18T10:12:00.000-07:00

BANGKOK, June 16 (TNA) – Thed recent sharp fall in the Stock Exchange of Thailand (SET) composite index will not affect the planned listing of many companies on the bourse, according to SET president Patareeya Benjapolchai.

She said the SET index had dropped considerably, by almost 40 points, in the past several days in tandem with most foreign stock exchanges, which saw the indexes fall by around 2 per cent.

Previously, stock exchanges worldwide had rapidly rallied by around 30-60 per cent. So did the SET index, which had surged by 30 per cent since early this year.

So, it was usual for investors to take profits given the continued surge, she said.

Mrs. Patareeya said she was confident the recent drop in the Thai stock index would not impact the planned listing of many firms because the liquidity in the market remains sound and stock prices are still stable.

At present, 12 companies, approved for listing by the Securities and Exchange Commission, are in the process of setting stock prices and offering newly-issued securities for sale to the public, while 10 other firms are awaiting SEC approval.

Regarding passage of the executive decree empowering the government to borrow Bt400 billion in the parliamentary session, she said it would benefit the overall economy and employment.

However, she warned that the approval process of investment funds must be transparent and the proceeds be used for maximum efficiency. (TNA)

REF:enews.mcot.net

Loan decree, if approved, will benefit overall economy

2009-06-18T10:09:00.000-07:00

BANGKOK, June 16 (TNA) – The executive decree empowering the government to borrow Bt400 billion in domestic loans to stimulate the economy will benefit the overall economy if approved by Parliament, according to a top securities analyst.

Kongkiat Opaswongkarn, president of the Securities Analysts Association, said passing the loan decree, now being debated in an extraordinary session of Parliament, would bring a new funds into the country’s economic system.

The infusion would immediately benefit investment-related businesses such as construction and building materials. Once the economy expands, it would boost purchasing power and reactivate consumer-related businesses including retail and commercial banking.

However, he said, since it is a long-term investment project, the government must give priority to the transparent use of the loan.

Should there be any corruption in the loan-supported projects, it could undermine public confidence in the government.

“The loan decree, if approved, will bode well for the implementation of the 2nd economic stimulus package. However, the government must be careful and transparent in spending unless it wants the public feeling to be affected,” he said.

As the global economy is on the path of recovery led by the strong Chinese economic resilience, he suggested the Thai government to hold more discussions with the Chinese counterpart.

Currently, the Chinese economy has rapidly recovered and begun to enjoy robust growth again.

“Many countries count on the Chinese economic resilience to steer their economies. So, Thailand should neither overlook such an opportunity nor ‘miss the train’,” he said. (TNA)

REF:enews.mcot.net

Bt800 billion loan debate begins in Parliament

2009-06-18T09:56:00.000-07:00

BANGKOK, June 15 (TNA) – The live broadcast on a parliamentary debate on the Bt800 billion loan package sought by the coalition government of Prime Minister Abhisit Vejjajiva aimed at jump starting Thailand’s economy began Monday.

Finance Minister Korn Chatikavanij told members of the House of Representatives that the planned borrowing of Bt800 billion is necessary as it would enable the government to have sufficient funds to resolve economic problems confronting the country, prepare efficient state-sponsored public services and strengthen financial positions on a long-term basis.

Mr. Korn said he expected that with the funds, economic growth in the country would turn to positive from negative from 2010 and “the economy should return to normal from 2014.”

Thailand’s economy has now entered a recession, according to the National Economic and Social Development Board (NESDB), after the gross domestic product (GDP) contracted by 7.1 per cent in the first quarter of 2009 -- a far larger drop than the 4.3 per cent drop registered in the last quarter of 2008.

Thailand’s 7.1 per cent contraction is the biggest drop since the 1997 financial crisis, the NESDB said.

Reasoning that the national economy could contract 4-5 per cent per year due to severe global economic meltdown and several domestic negative factors, Mr. Korn said consumption and public investment in Thailand had already declined sharply.

More than 6,000 urgent projects worth about Bt1.43 trillion or equivalent to about 17 per cent of GDP could be implemented within the next three years from now, he said. This will enable the government to achieve its goals as it forecasts that economy would grow at around 1.5 per cent per year and also generate employment of between 400,000-500,000 jobs per year.

Mr. Korn said the government has prepared deficit expenditure for “at least another three years” but still it cannot invest much on projects so it is necessary for it to draft executive decree and a bill each seeking Bt400 billion to help the government to have enough funds for investment on projects.

Under an agreement made between the government and opposition chief whips, the live broadcasts on radio and television of the government’s executive decree and on the draft bill will be debated Monday.

However, the debate could continue until Tuesday.

Live broadcast on debate of the government budget for Fiscal 2010, starting October 1, will be held June 17-18.

Opposition Puea Thai Party members charged in Parliament that the government’s borrowing plan is not transparent, could cause corruption and create debts for the people to shoulder at the end.

Puea Thai MP for Chiang Mai Surapong Tovichakchaikul said he is against the government issuance of the executive decree as it is “not urgent to borrow money now.”

Some of the projects are still not transparent and it would be appropriate for the government to start borrowing in August, Mr. Surapong said.

He urged the government to “screen all the projects carefully as there might be corruption. The opposition isn’t against issuing an executive decree but it feels that several processes undertaken (by government officials) are not transparent and could damage the country.”

Another Puea Thai Party member Prakiat Nasima said he wondered where the government would keep Bt800 billion as it would not be deposited as financial reserves.

The decree empowers the cabinet ministers to spend this money but no details of spending are given and this could create a “new round of policy corruption,” said Mr. Prakiat. (TNA)

REF:enews.mcot.net

Thai economy "already" in recession, says finance minister

2009-06-14T11:51:00.000-07:00

BANGKOK, June 13 (TNA) – Finance Minister Korn Jatikavanich on Friday conceded that the Thai economy is already in recession because the country’ gross domestic product (GDP) had experienced a negative growth for two successive quarters.

However, Mr. Korn believed the economy will not remain in deep recession since the GDP is unlikely to shrink more than 10 per cent for this year. He also brushed aside concerns that the pandemic of H1N1 influenza in many countries worldwide, including Thailand, would affect the economy as the Ministry of Public Health is able to cope with the situation efficiently.

Regarding the private-sector call for the Bank of Thailand (BoT) to closely supervise the baht movement to ensure it does not strengthen too much, he said the new law authorises the central bank to work independently of the finance ministry.

So, it is a matter of the Bank of Thailand’s discretion to supervise the Thai currency, he said, adding that he personally believed that the baht value should be lower than the current level to help boost exports.

Previously, he said, the BoT had explained that the weakening of the baht could not help reinforce exports.

However, the central bank suggested that improved export products be developed in terms of quality to boost competitiveness in the world market in the long run. (TNA)

REF:enews.mcot.net

Best price Dog costumes | Pet costomes | Dog crates | Dog houses

2009-06-14T11:46:00.000-07:00

BANGKOK, June 13 (TNA) – Thailand’s housing market is not yet out of the woods, nor will it be for the rest of this year, although the government has gradually introduced various measures to stimulate the economy, according to a leading Thai credit rating agency.

Bangkok-based TRIS Rating Co attributed the continued sluggishness of the housing demand to the overall decline in Thai consumer confidence and the lack of spending capacity on the part of prospective home buyers, the economic recession, the increasing numbers of the jobless, the stock market plunge, and continuing political conflict.

These factors had collectively undermined consumer confidence in Bangkok and elsewhere in Thailand.

The National Economic and Social Development Board (NESDB) forecasts that the Thai economy will shrink 2.5-3.5 per cent this year.

The firm said that the credit rating of housing developers in 2009 has been revised based on the competence of executives to adapt to the changing business environment, financial discipline, liquidity management capability, good connection with financial institutions, and strong support from parent companies.

TRIS said local housing developers will still face continued weakness in the market, particularly the single house and townhouse sections, for the remainder of this year, and at the same time, new condominium start-ups have begun to decline.

Consequently, it is expected that the number of new housing starts this year would drop from that of the previous year. (TNA)

REF:enews.mcot.net

First H1N1 case confirmed in the north

2009-06-14T11:37:00.000-07:00

BANGKOK, June 14 (TNA) – A Chiang Mai University student, returning home from US, tested positive to H1N1, the first virus diagnosis reported in Thailand’s northern region.

Her relatives and persons who had close contact with her were placed under quarantine.

Meanwhile, the resort island of Phuket in the south conducted a community-wide mass cleaning on Sunday, disinfecting roads, restaurants, entertainment venues, hotels and guesthouses in the Patong Beach area after a woman working in a pub tested positive to the Influenza A H1N1 virus.

Her condition has improved, but she remains under quarantine for another seven days. Her co-workers don’t contract the virus, according to the lab tests. (TNA)

REF:enews.mcot.net

S&P Corrects Washington Public Power Supply System Bank Of America-Backed Rating To 'A+/A-1'

2009-06-14T06:56:00.000-07:00

Standard & Poor's Ratings Services corrected and lowered its rating on Washington Public Power Supply System's Project No. 1 series 1993 1A-1 and 1A-2 bonds to 'A+/A-1' from 'AA-/A-1+'. The rating is based on letters of credit provided by Bank of America N.A. (A+/A-1). We inadvertently did not lower the rating on the bonds at the time of Standard & Poor's downgrade of Bank of America N.A. to 'A+/A-1' from 'AA-/A-1+'.
Complete ratings information is available to RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.

Media Contact:
Ana Sandoval, New York (1) 212-438-5095, ana_sandoval@standardandpoors.com

Analyst Contacts:
Chi W Tang, New York (1) 212-438-7989
Tiphany Lee, New York 212 438 5464

News Source:Standard & Poor's

REF:thaipr.net

Woori Bank's proposed exchange offer subordinated notes rated 'BBB+'

2009-06-14T06:54:00.000-07:00

Standard & Poor's Ratings Services has assigned its ‘BBB+' rating to Woori Bank's (Woori; A-/Negative/A-2) proposed lower tier II subordinated notes due April 2015. The proposed coupon rate is 7.63%. The new notes are being issued in connection with the bank’s offer to exchange new notes for its outstanding US$400 million 5.75% lower tier II subordinated notes due March 13, 2014. The rating on the subordinated notes is subject to final documentation.

The one-notch differential between Woori's counterparty credit rating and the rating on the proposed notes mainly reflects the risks associated with the proposed subordinated notes. Subordination adversely affects the ultimate recovery prospects of subordinated obligation holders in a bankruptcy, since claims from priority creditors must be satisfied first (see our criteria article: "Hybrid Capital Handbook" published Sept. 15, 2008).

The ratings on Woori reflect its strong market position as Korea's second-largest bank and a core operating bank subsidiary of Woori Financial Group. The bank's domestic market share of loans and deposits is about 15%. The ratings are also supported by the bank's strong corporate banking business, which is based on long-term client relationships. In addition, it is supported by strong revenue contributions from nonbanking businesses at the group level.

The ratings are constrained by Woori’s relatively large exposure to the construction industry, whose creditworthiness is under severe pressure due to Korea's stagnating housing market and economic slowdown. The bank's aggressive loan growth over the last several years is a credit risk due to the sharp economic downturn. Declining net interest margin is another key issue, particularly in the face of rising credit costs.

The negative outlook reflects our view that the ratings could come under downward pressure if Woori's asset quality deteriorates beyond our expectations and its capitalization is significantly impaired due to the economic slowdown.

--www.theasianbanker.com (June 12 2009)--

News Source:Asian Banker

REF:Thaipr.net

Fitch Assigns Thailand’s TISCO Financial Group ‘A-(tha)’ Rating

2009-06-14T06:51:00.000-07:00

Fitch Ratings (Thailand) Limited has today assigned TISCO Financial Group Public Company Limited (TISCO) National Long- and Short-term ratings of ‘A-(tha)’ and ‘F2(tha)’, respectively, with a Stable Outlook.
The ratings reflect TISCO’s holding company status, which is structurally subordinated to its banking subsidiary - TISCO Bank Public Company Limited (TISCOB, ‘A(tha)’/’F1(tha)’/Stable) – as TISCO will have to rely mainly on dividend payment from TISCOB. The Stable Outlook is based on the expected maintenance of leverage and liquidity at both the holding and group level. Major changes to TISCO’s investment, leverage and business strategy as well as ratings of TISCOB could also affect its ratings. Given TISCO’s status as a holding company and its lack of a strong institutional shareholder, external support should not be relied upon.
For Q109, TISCO reported an unconsolidated net profit of THB152m. Most of its income is derived from service fees charged to its subsidiaries for administrative functions. The company incurred THB31m interest expense in Q109 on THB3.5bn of short-term borrowings, mostly from TISCOB. TISCO is expected to repay THB500m in Q209 using the proceeds from a capital reduction at recently acquired Primus Leasing Company Limited (Primus). A dividend payout from TISCOB of THB0.6bn will be partially used to further reduce TISCO’s debt in Q209, although most of the dividend will be paid out as dividend to TISCO’s shareholders.
While TISCO plans to partly refinance its short-term loans via the issuance of short-term bills of exchange given the latter’s cheaper funding cost, TISCOB will continue to be the main provider of liquidity to the holding company, although the bank would be subject to the intra-group lending limit which is currently capped at THB3.7bn. That said, TISCO’s reliance on the bank for liquidity support and short-term nature of the holding company’s liability structure is of concern.
At the bank level, TISCOB’s reliance on large depositors and its short liability duration is also a concern, although the bank’s duration gap has improved after the issuance of THB2bn subordinated debt in Q109 and is expected to further improve after the issuance of another THB2bn. TISCOB’s loans to deposits and short-term funding ratio also improved to 98.3% at end-2008 from 108.9% at end-2007 as deposits increased sharply in 2008. Moreover, the full deposit protection should help mitigate liquidity risk.
TISCO’s debt arose mainly due to the transfer of subsidiaries from TISCOB to TISCO. Nonetheless, the TISCO’s existing leverage ratio still appears low with debt to equity ratio of about 0.3x. Given management’s indication that TISCO has no plan to make further investment over the next three years, TISCO’s debt to equity ratio is expected to remain low. TISCO’s current double leverage ratio appears acceptable at 121%.
TISCO is the group holding company of TISCOB. Set up in 2008, it holds a 99.5% stake in TISCOB and 100% stakes in its securities, asset management and leasing subsidiaries.
Disclosure: TISCO Asset Management Company Limited (of which TISCO Financial Group PCL holds 100%) owns 10% of the shares in Fitch Ratings (Thailand) Limited. No shareholder, other than Fitch Ratings Limited of the UK, is involved in the day-to-day operation of, or credit rating reviews undertaken by, Fitch Ratings (Thailand) Limited.

Contacts: Patchara Sarayudh, Vincent Milton, Bangkok +662 655 4755.

News Souce:Fitch Ratings

REF:Thaipr.net

POSB steps up efforts to help underprivileged chidren

2009-06-14T06:49:00.000-07:00

Bank organising inaugural POSB Run for Kids event and also opening up its extensive distribution network to help raise funds for the Community Chest.

To underscore POSB’s firm commitment to the community and its belief in nurturing the next generation of Singaporeans, the bank announced details of the inaugural POSB Run for Kids event today. At the same time, POSB is making available its extensive distribution network to help the Community Chest to raise funds for educational, social and counselling services and programmes for children in need.

POSB Run for Kids 2009

Since the late 1960s, POSB has been promoting savings and encouraging thrift among the young in Singapore. POSB recognises the importance of having good money management habits and educating the young, so that they can achieve their full potential.

The POSB Run for Kids event is a platform for POSB staff and customers to help the less privileged children in Singapore. All funds raised from POSB Run for Kids will be channelled equally to an education welfare fund for primary school children and the Singapore Children’s Society.

The education welfare fund will be managed by the Punggol Central Citizens’ Consultative Committee, with dollar-for-dollar matching by the North East Community Development Council. The fund will benefit underprivileged students in the 39 primary schools in Pasir Ris-Punggol GRC.

This year, POSB is proud to be working in partnership with the Pasir Ris–Punggol GRC to organise POSB Run for Kids, which will take place at Sengkang East Drive on 12 July. This inaugural event will be graced by Deputy Prime Minister Mr Teo Chee Hean

The support from the Pasir Ris-Punggol GRC has also been very heartwarming. About 130 students from Compassvale Secondary School have volunteered to help put together the race packs for participants.

Sign up for the POSB Run for Kids at www.posb.com.sg or at POSB branches. Registrations close on 26 June 2009.

POSB supports the Community Chest

The Community Chest is one of POSB's community service partners. Like POSB, the Community Chest believes in nurturing children and bringing out the best in them.

All POSB customers can donate to the Community Chest through bill payment service via phone banking, internet banking and the over 900 POSB/DBS ATMs island-wide. In addition, donation boxes are now available at all 52 POSB branches.

To encourage POSB Everyday Cardmembers to contribute to Community Chest, the bank has also set up a special telepoll line in conjunction with Community Chest’s TV fundraising programme Truehearts, telecast 'live' last Sunday. POSB Everyday Cardmembers can enjoy a 5% cash rebate for every $10 donation via telepoll line 6691 2233. POSB customers can call the telepoll line from now till 14 June and there will be a repeat telecast of Truehearts this Sunday 14 June.

Said Mr Rajan Raju, Managing Director and Head of DBS Consumer Banking Group: "We deeply appreciate the fact that POSB has a special place in the hearts of Singaporeans. We recognise that in these challenging times, Singaporeans from all walks of life, including the little ones, will need whatever assistance they can receive. POSB has been always been about the people and we want to do our part for them.

We hope that many of our 4 million customers, especially those in the Pasir Ris-Punggol neighbourhood, will join us at POSB Run for Kids '09. Having witnessed how many of them have donated generously towards the victims of the tsunami and the Sichuan earthquake, we are confident that together we can make a difference to community.”

--www.theasianbanker.com (June 12 2009)--

News Source:Asian Banker

REF:Thaipr.net

Citigroup completes benchmark A$1.3 billion 3-year senior government guaranteed notes

2009-06-14T06:44:00.000-07:00

The bank Citigroup Pty Ltd has priced an upsized A$1.3 billion 3-year fixed and floating rate transaction under the Australian Government's Guarantee Scheme for Large Deposits and Wholesale.

Final tranching was as follows:
- A$500 million 3-year with a 5.500% coupon, issued at A$ mid swaps +65bps
- A$800 million 3-year floating rate notes, issued at 3-month BBSW +65bps

Settlement of the bonds is on 18th June 2009, with maturity on 18th June 2012

The transaction saw strong demand from around 35 high quality Australian and international accounts and over 50 tickets, which allowed the deal to be upsized from A$1 billion. Ticket sizes ranged from A$200,000 to over A$200 million.

Citigroup Global Markets Australia Pty Ltd is Sole Bookrunner.

Senior Co-managers: ANZ Investment Bank and National Australia Bank

Co-managers: Commonwealth Bank of Australia, Macquarie Investment Bank, and Westpac Banking Corporation.

--www.theasianbanker.com (June 12 2009)--

News Source:Asian Banker

REF:Thaipr.net

Moody's downgrades three Mongolian banks' ratings

2009-06-14T06:41:00.000-07:00

Approximately USD 75 million of debt securities issued by TDB affected

Moody's Investors Service has taken multiple rating actions on three Mongolian financial institutions to reflect stresses arising from the current crisis and the increasing convergence between the government's ability to support the banks and its own debt capacity.

The financial institutions are: Khan Bank, Trade and Development Bank of Mongolia (TDB) and XacBank. Specifically, the following rating actions were taken:

Bank Financial Strength Rating (BFSR)

[1] The BFSRs of two banks -- Khan Bank and XacBank -- were lowered to D- from D, and map to a baseline credit assessment (BCA) of Ba3 from Ba2. The revised ratings carry stable outlooks.

[2] The BFSR of TDB was placed on review for possible downgrade.

Deposit & Debt Ratings

[3] All three banks' foreign currency long term deposit rating was confirmed but assigned at the same time a negative outlook..

[4] Khan Bank's foreign currency long term issuer rating and senior unsecured MTN rating were lowered to Ba3 from Ba2. Its local currency long term bank deposit rating, issuer rating, and senior unsecured MTN were lowered to Ba3 from Baa3. Its foreign currency subordinate MTN was lowered to B1 from Ba2. Its local currency subordinate MTN was lowered to B1 from Ba1. Its local currency short term bank deposit rating was lowered to NP from P-3. The revised ratings carry a stable outlook.

[5] TDB's foreign currency long term issuer rating and senior unsecured rating were lowered to Ba3 from Ba2. Its foreign currency subordinate MTN rating was lowered to B1 from Ba2. Its local currency long term bank deposit and issuer ratings were lowered to Ba3 from Ba1. The revised ratings are placed on review for possible downgrade.

[6] XacBank's foreign currency long term issuer rating was lowered to Ba3 from Ba2. Its local currency long term bank deposit and issuer ratings were lowered to Ba3 from Ba1. The revised ratings carry a stable outlook.

The rating actions today concluded the reviews initiated on February 6, 2009, triggered by the review for possible downgrade Mongolia's sovereign ratings. Separately, XacBank's BFSR was put under review on December 12, 2008 in light of the bank's deteriorating asset quality and growing exposures to the small and medium-sized enterprises (SMEs) which entails more concentration risks than its traditional micro-finance lending. The complete list of ratings is at the end of the press release.

The rating actions follow a comprehensive review of all rated banks in Mongolia after (i) conducting scenario analysis that tested the banks' sensitivity to various credit loss assumptions; (ii) concluding Moody's review on Mongolia's sovereign ratings; and (iii) better aligning the banks' credit ratings and the Mongolian government bond ratings as a result of the global financial crisis.

Yvonne Zhang, a Moody's Vice President and Senior Analyst, explains the rating actions:

RATING ACTIONS ON BFSRs

The lower BFSRs and outlooks on the Mongolian banks reflect Moody's concern that their core capital level could be further weakened by the expected deterioration in asset quality. In determining the BFSRs, Moody's assesses the banks' capital level after incorporating expected losses on their risky assets using scenario analysis. The application of a forward-looking view on the banks' capital ratios is in line with Moody's reports "Calibrating Bank Ratings in the Context of the Global Financial Crisis" and "Moody's Approach to Estimating Bank Credit Losses and their Impact on Bank Financial Strength Ratings", published in February and May respectively this year. Both are available on www.moodys.com.

An estimate of credit losses shows that the rated banks' earning power and capital adequacy would deteriorate to a level under which their current BFSRs and outlooks would not be justified.

Moody's downgraded Khan Bank's BFSR from D to D- with a stable outlook, reflecting Moody's concern about the fast increase in the non-performing loan (NPL) and past due loan ratio since Mongolian economy turned south in September 2008. Khan Bank traditionally lends to SMEs, and in recent years has entered into corporate lending. Currently corporate lending makes up about 20% of their total loan portfolio. Khan Bank has yet to demonstrate more solid expertise in corporate lending.

Moody's puts TDB's D- BFSR under review for possible downgrade to primarily reflect its concern about the high refinancing risk that TDB faces as its USD75mm EMTN will be due in January 2010. In addition, similar to Khan Bank, its asset quality has shown rapid deterioration since the start of the economic downturn.

Moody's downgraded Xacbank's BFSR from D to D- with a stable outlook. Compared with Khan Bank and TDB, its NPL and past due loan ratios are much lower, though the pace of deterioration of asset quality is equally fast. XacBank is a smaller bank with lower earning power. It also has less extensive branch network and relies more heavily on wholesale funding. Under Moody's loss scenarios, it's in a much weaker position to earn its way out of asset quality deterioration.

CHANGE IN SYSTEMIC SUPPORT INDICATOR FOR JOINT-DEFAULT ANALYSIS (JDA)

Earlier this month, Moody's commented on its global review of the support capacity of a government and a central bank for its banking system in the special comment titled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries."

Consistent with the analytical criteria specified in that report and in light of Mongolia's current situation and future prospects, Moody's has concluded that the systemic support input for Mongolian bank ratings be changed to the local currency government bond rating of B1 from the former input of Baa2 which was the local currency deposit ceiling. Accordingly, Mongolian bank ratings are affected.

Moody's assesses Mongolia to be a low support country, which reflects a market discipline-led approach during periods of normal financial market conditions. However, during the current crisis, the Mongolia government has demonstrated its willingness in supporting the banking sector, to maintain financial system stability. Actions taken include 1) in November 2008, it announced its blanket deposit guarantee covering all Mongolian banks; 2) in December 2008, Mongolia's central bank took control of the nation's fifth-largest commercial bank Anod, and subsequently provided liquidity in the amount of about 2% of GDP. At the same time, its inclination to support the banking system is constrained by the government's rapid deterioration in fiscal position and balance of payment.

In the Special Comment, Moody's points out that the appropriate reference rating for the capacity of a national government to provide support to banks in a prolonged and widespread crisis would be aligned with or increasingly constrained by the government's own debt rating, although this rating could be adjusted to reflect the non-fiscally dependent measures that many central banks and governments can deploy to support banks.

In deciding whether the local currency-denominated deposits of a bank can be rated differently from the local currency-denominated debt issued by the national government due to systemic support, Moody's considers a number of factors for each banking system. These are the size of the banking sector relative to the government's resources, the level of stress in the banking system and in the economy, the foreign currency obligations of the banking system relative to the government's own foreign currency resources, political and historical patterns, and the possibility of any drastic shift in government priorities.

With regard to Mongolia, the total banking assets is about 80% of GDP. On the other hand, as discussed earlier, the level of stress in the banking system and Mongolian economy has increased following the worldwide recession. Though the government is willing to support the banks, its ability to do so may be limited , mainly due to rapid deterioration in balance of payment (BOP), fiscal position, and volatility in exchange rate.

To stem the rapid depletion in official foreign exchange reserves and stabilize its economy, the government entered into an 18-month, $224 million IMF Stand-By Arrangements (SBA) in April. The first and second tranches of $76 million and $40 million, respectively, were disbursed. The focus of the program is fiscal adjustment, encouraging a proactive monetary policy to protect international reserves and stabilizing the banking system and the flow of credit. The IMF program is solidly supported by the government and the government is using the IMF to force implementation of measures that were previously politically difficult.

With regard to political and historical patterns, there was discussion of recapitalizing banks in the Parliament while the central bank claimed that the banks were adequately capitalized. The public appears to have doubts about the credibility of government support for its banks since after Mongolian currency depreciation in late 2008, the government priority shifted to protect the local currency value.

In conclusion, the B1 systemic support input for Mongolian banks is the same as the B1 local currency government bond rating. This is predicated on Moody's view that the risk of a system-wide banking crisis is high and that the likelihood of the government supporting the banking system is medium.

Moody's last rating actions on Khan Bank, TDB and XacBank were taken on February 6, 2009, when the long term deposit, issuer and debt ratings for all three banks and Khan Bank's short term local currency deposit rating were placed on review for possible downgrade.

The principal methodologies used in rating these issuers are the "Bank Financial Strength Ratings: Global Methodology" (February 2007) and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology (March 2007)." These can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Credit Policy & Methodologies directory.

All three banks are headquartered in Ulaanbaatar, Mongolia. As of December 31, 2008, Khan bank reported assets of MNT 839 billion (approximately USD 654 million), TDB MNT 659 billion (USD 514 million) and XacBank MNT 208 billion (USD 162 million).

Below is a list of the ratings for the three banks (all with stable outlook unless specified):

Khan Bank:

Bank Financial Strength D- (downgraded from D)

LT Bank Deposits (Foreign) B2 with negative outlook

LT Bank Deposits (Domestic) Ba3 (downgraded from Baa3)

LT Issuer Rating (Foreign) Ba3 (downgraded from Ba2)

LT Issuer Rating (Domestic) Ba3 (downgraded from Baa3)

Senior Unsecured MTN (Foreign) Ba3 (downgraded from Ba2)

Senior Unsecured MTN (Domestic) Ba3 (downgraded from Baa3)

Subordinate MTN (Foreign) B1 (downgraded from Ba2)

Subordinate MTN (Domestic) B1 (downgraded from Ba1)

ST Bank Deposits (Foreign) NP

ST Bank Deposits (Domestic) NP (downgraded from P-3)

Trade and Development Bank of Mongolia:

Bank Financial Strength D- (placed on review for possible downgrade)

LT Bank Deposits (Foreign) B2 with negative outlook

LT Bank Deposits (Domestic) Ba3 (downgraded from Ba1 and placed on review for possible downgrade)

LT Issuer Rating (Foreign) Ba3 (downgraded from Ba2 and placed on review for possible downgrade)

LT Issuer Rating (Domestic) Ba3 (downgraded from Ba1 and placed on review for possible downgrade)

Senior Unsecured (Foreign) Ba3 (downgraded from Ba2 and placed on review for possible downgrade)

Senior Unsecured MTN (Foreign) Ba3 (downgraded from Ba2 and placed on review for possible downgrade)

Subordinate MTN (Foreign) B1 (downgraded from Ba2 and placed on review for possible downgrade)

ST Bank Deposits (Foreign and Domestic) NP

ST Issuer Rating (Foreign and Domestic) NP

Other Short Term (Foreign) NP

XacBank:

Bank Financial Strength D- (downgraded from D)

LT Bank Deposits (Foreign) B2 with negative outlook

LT Bank Deposits (Domestic) Ba3 (downgraded from Ba1)

LT Issuer Rating (Foreign) Ba3 (downgraded from Ba2)

LT Issuer Rating (Domestic) Ba3 (downgraded from Ba1)

ST Bank Deposits (Foreign and Domestic) NP

ST Issuer Rating (Foreign and Domestic) NP

--www.theasianbanker.com (June 12 2009)--

News Source:Asian Banker

REF:Thaipr.net

Thais feeling economy picking up: ABAC Poll

2009-06-12T03:59:00.000-07:00

BANGKOK, June 12 (TNA) – More Thai people feel that the overall economy has picked up and consumers are expecting to earn higher incomes, according to a survey by the Assumption University ABAC Poll.

Noppadol Kannikar, director of the ABAC Research Center, said that the survey conducted with people in 1,237 households of 17 provinces showed most respondents -- almost 90 per cent -- kept up with news coverage.

The number of people who believed the country’s economy had begun recovering in the past 30 days increased from 5.6 per cent in April to 11.8 per cent in May and 17.4 per cent in June

However, more than 80 per cent of respondents believed the overall economy remains terrible.

Asked about incomes earned at present, the survey found the number of respondents who said they earned enviable incomes increased from 21.9 per cent in April to 34.4 per cent in May and 38.9 per cent in June while those who said they earned lower incomes dropped to 61.1 per cent from 78.1 per cent.

The poll found the number of people who felt secure in their current jobs rose from 49.5 per cent in April to 56.1 per cent in June.

Asked about their intentions to make major purchases in the next six months, the survey showed that consumers who intended to buy electrical appliances such as refrigerators and televisions rose from 13.1 per cent in April to 21.9 per cent in June.

At the same time, the number of people who planned to buy new cars and homes climbed from 6.5 and 6.6 per cent to 11.3 and 10.4 per cent respectively. (TNA)

REF:enews.mcot.net

Thai Chamber urges central bank to move baht closer to other currencies

2009-06-12T03:57:00.000-07:00

BANGKOK, June 12 (TNA) – The Bank of Thailand (BoT) should closely supervise the baht to ensure it does not appreciate considerably and that it moves in the same direction as other currencies in the region, according to the Thai Chamber of Commerce (TCC).

TCC Vice-Chairman Pongsak Assakul said the baht had strengthened against currencies of neighbouring countries by 1.8 per cent since early this year.

The currencies of most neighbours had weakened or strengthened marginally against the baht. For instance, the Malaysian ringgit had depreciated 2.8 per cent and the Singapore dollar had weakened 0.9 per cent.

The baht index showed the currency had appreciated 2.71 per cent against the currencies of 12 of Thailand’s trading partners. This means that Thai exports lost competitiveness in terms of prices by the same percentages.

Nonetheless, should the baht weaken by one per US dollar, exports would grow further and the economy would expand by 0.3 per cent, leading to an increase in the number of new jobs by 100,000 .

“Should the baht management be stable, it will boost investor confidence the baht won’t be attacked because it is closely supervised. The matter will be raised for consideration at the Joint Private-Sector Committee,” Mr. Pongsak said. ( TNA)

REF:enews.mcot.net

Japanese SME operators in Thailand seek financial help

2009-06-12T03:55:00.000-07:00

BANGKOK, June 11 (TNA) - Japanese operators of small- and medium-sized enterprises (SMEs) in Thailand on Thursday asked the Japanese and Thai governments to provide financial assistance to them due to the ongoing global economic meltdown.

Led by Yo Jitsukata, president of the Bangkok-based Japanese Chamber of Commerce, Japanese businessmen handed a letter to Japanese ambassador Kyoji Komachi urging the their government to help their country’s business community in Thailand.

As Japanese businesses are hurting, some of the requested measures, including cooperation between the Japanese private sector and the Thai government, will be raised by the Japanese embassy with the Thai authorities later as many Japanese SMEs operating in this country are now confronting financial crisis.

Mr. Jitsukata said SME businesses have limited access to funding due to the global economic meltdown, forcing his group to submit their letter on Thursday. The help needed by SMEs in Thailand is for both immediate and long-term measures.

Currently, there are approximately 7,000 Japanese-operated SMEs in Thailand. Out of the total, 1,300 firms are members of the Japanese Chamber of Commerce while the rest are non-members and do not have a parent company in Japan and also do not receive any help from the Thai or Japanese governments.

Munenori Yamada, president of Bangkok-based Japan External Trade Organization, said several Japanese firms in Thailand have closed down businesses after financial crisis hit the world last year.

Some SMEs operated by Thais at present receive credit guarantees from the Small Business Credit Guarantee (SBCG) – only 0.4 per cent compared to about 40 per cent given to Japanese businessmen, while the Thai government has allocated budget of about Bt30 billion to the SBCG, said Mr. Yamada.

It is hoped that more SME businesses will have access to financial assistance offered by the agency. (TNA)

REF:enews.mcot.net

Thailand ready to help Ford, GM expand production bases

2009-06-12T03:50:00.000-07:00

BANGKOK, June 11 (TNA) - The Thai government is prepared to offer investment promotion privileges to American-owned giant automakers General Motors and Ford Motor Co. to expand their production bases in the kingdom, Thai Finance Minister Korn Chatikavanij said on Thursday.

Mr. Korn told journalists after meeting senior executives of the two automakers who had expressed interests in expanding investments in Thailand.

The finance minister said he had told them that the Thailand is willing to offer the firms promotional privileges of the Board of Investment (BoI) but they must seek low-interest loans from banks by themselves as the government cannot get involved in that.

Although privileges to be given by the BoI are less than in some other countries, he said, the two firms still wish to expand investment in this country as they believe in future growth of the industry in Thailand, Mr. Korn said.

Ford Motor plans to make Thailand its sole overseas base in order to trim its expenses although it is concerned about the political turbulence in this country, he said.

In recent years Ford closed more than a dozen plants and cut more than 40,000 jobs. The car maker lost more than US$15 billion in 2006 and 2007. The Michigan-based company is trying to secure hundreds of millions in direct loans and loan guarantees to aid its credit line and to comply with environmental regulations in North and South America, Europe and Australia.

Despite a bankruptcy declaration on June 1 by Detroit-based General Motors, its subsidiary GM Southeast Asia Operations Ltd., including General Motors (Thailand) Ltd., announced earlier this month that its units in Thailand and elsewhere in the Association of Southeast Asian Nations region would not be affected. (TNA)

REF:enews.mcot.net

Thai consumer confidence index in May lowest in 7 years

2009-06-12T03:47:00.000-07:00

BANGKOK, June 11 (TNA) - Thailand’s consumer confidence index continued its nosedive in May to 71.5, its lowest level in 90 months, or seven and one half years, according to a monthly survey released on Thursday.

The decline in the consumer confidence index which was below the 100 level for 59 consecutive months also showed that consumers did not have confidence in the national economy, while their concerns on domestic political problem increased, said Thanawat Palavichai, director of the Economic and Business Forecast Centre at the University of Thai Chamber of Commerce (UTCC).

Indicators of the index in May fell in almost every item, he said. Consumers were worried about continued rising oil prices, especially prices of gasoline and diesel which had increased about Bt2 per litre, as they were worried that the jump would push up the cost of living, Mr. Thanawat said.

Private consumption is not expected to expand much until the third quarter this year, he said.

Global oil prices are projected to rise to US$80 per barrel within the next three months, Mr. Thanawat said. The expected increase will depress economy because a jump of the retail oil price of every Bt1 per litre would lower Thailand’s consumer purchasing power of around Bt2.1 billion per month and push up inflation to between 0.1-0.2 per cent, said Mr. Thanawat.

He urged the government to speed on its budget disbursement to stimulate economy.

The government spending will help reduce an expected contraction of Thai economy this year, said Mr. Thanawat. (TNA)

REF:enews.mcot.net

Thailand's GDP likely to recover in Q4: FTI

2009-06-12T03:44:00.000-07:00

BANGKOK, June 11 (TNA) – Thailand’s gross domestic product (GDP) is expected to clearly recover in the fourth quarter of this year as a result of the government’s borrowing 400 billion baht to boost the stability of the economy, according the Federation of Thai Industries (FTI).

FTI chairman chairman Santi Vilassakdanont said the country’s GDP had been resilient in the second quarter following a sharp contraction.

The FTI chief said he believed the government’s injection of money from the loans sought by the Finance Ministry under the executive decree would help revitalise the economy.

Of the total 400 billion baht, half would be set aside as investment budget.

Because of this, Mr. Santi said, he was confident the Thai economy would recover markedly in the fourth quarter. For the whole year, it would have negative growth of no more than 3 per cent.

The government’s injection of money to stimulate the economy through the executive decree and the act would help the economy sustain growth next year.

Mr. Santi said Thailand’s exports had begun to recover in tandem with the global economic resilience as purchase orders for vehicles and steel returned.

However, he allowed, small Thai entrepreneurs are still short of liquidity since commercial banks are reluctant to lend.

As for boosting productivity in Thailand’s industrial sector, he said the Industry Ministry remained short of funds by some 2 billion baht to boost productivity, so he recommended that the public sector allocate budget to enhance productivity because the country’s resources are running out. (TNA)

REF:enews.mcot.net

Thailand must boost productivity, says PM

2009-06-12T03:43:00.000-07:00

BANGKOK, June 11 (TNA) – Thailand must increase its productivity to invigorate the economy, according to Prime Minister Abhisit Vejjajiva.

Delivering a keynote speech on “Productivity: Tomorrow’s Hope” at the “Productivity Expo 2009: Knowledge and Assistance Fair for Strong Thai Business,” he said Thailand from now on must give priority to raising productivity. It must not rely on the country’s resources which are declining day by day.

The government-initiated economic stimulus measures are aimed at stimulating purchasing power to help boost economic growth.

The short-, medium- and long-term economic stimulus packages must be correlated to ensure effectiveness, he said.

The premier revealed the 3rd phase economic stimulus scheme would be implemented along with the reform of the country to strengthen the economy.

The scheme will focus on productivity and sustainability in all sectors with every stage of the production process involving higher productivity.

He said Thailand had played a leading role in production of cassavas, sugarcanes and oil palm, but given the low production per rai, the country must develop its productivity.

Thailand is one of the world's major food exporters, Mr. Abhisit said, and could generate alternative energy without any impact on the country’s food production ability.

The prime minister said Thailand can no longer claim it is a low-cost production base, but must emphasise productivity, initiative, and increasing market value of its products in the future. (TNA)

REF:enews.mcot.net

Vigorous competition as banks vie with attractive interest rates: BoT

2009-06-12T03:41:00.000-07:00

BANGKOK, June 10 (TNA) – The country’s commercial banks are competing more fiercely with each other to offer lower lending rates and higher long-term deposit rates to boost economic recovery, according to the Bank of Thailand (BoT).

Bandid Nijathaworn, BoT Deputy Governor for Financial Institutions Stability, said when discussing a possible interest reduction with commercial bank executives in mid-May, it was found that nine commercial banks had cut their lending rates by 0.10-0.30 per cent.

Competition in the banking system, particularly in lending, had intensified because there is substantial liquidity in the system. The decision by the Monetary Policy Committee to maintain the policy interest rate unchanged at 1.25 per cent boosted the market perception that the interest rate is stable.

He said the central bank is satisfied with the competition among commercial banks as it believes the lending rate cut by the banks was timed to benefit the economy.

Mr. Bandid said the low interest rate led to a shift of money in deposit accounts into new savings instruments such as stocks and debt instruments.

Because of this, commercial banks had begun to raise their long-term deposit rates in a bid to maintain both their customer base and liquidity.

He said the central bank projected commercial banks would further cut lending rates and raise long-term deposit rates because the liquidity in the system is very high.

Last month, some commercial banks had issued larger numbers of loans and attempted to overhaul their deposit structures by focusing on mobilising long-term deposits, which would benefit economic recovery in the second half of this year.

Regarding concerns over the government’s plan to seek Bt800 billion in loans, Mr. Bandid said he believed impacts on the financial market will not be adverse since it is a gradual rise in borrowing, and not a single lending.

However, he allowed it would affect the bond market because lending costs might edge higher. Even so, it would not impede the country’s economic expansion. (TNA)

REF:enews.mcot.net

PM assures foreign investors that government seeks recovery

2009-06-12T03:37:00.000-07:00

BANGKOK, June 10 (TNA) – Thailand’s Prime Minister Abhisit Vejjajiva on Tuesday assured foreign investors his government would attempt to the utmost of its ability to make the country’s economy recover and stay competitive.

Speaking of his government’s policy in response to the economic crisis in an address to the 3rd Euromoney Thailand Investment Forum: “Navigating Uncertainty-Thailand’s Path Forward,” Mr. Abhisit said that “the economy has always experienced crisis and that (historically) the political situation has become uncertain whenever the Democrat Party led the coalition government.

“We must decide on difficult and sensitive issues, but it is considered a challenge. Thailand had learnt the crisis in 1997, which led to the reform of our financial institution system.

“Our international reserve is tantamount to 12 months of imports, which is quite substantial,” he said. “But it cannot be denied the global economic crisis had put the stock market and the real industrial sector in tatters.”

Surveying the extreme changes to the economy, the prime minister said Thailand’s first-quarter economy shrank 7.1 per cent. It looked unfamiliar since the gross domestic product (GDP) had often grown by more than 10 per cent in the past.

Still, the GDP of other countries in Asia experienced a similar sharp ‘negative growth’.

What the government had done is to attempt to help the most vulnerable group of people by issuing the 1st phase economic stimulus scheme to inject money into the macro-economic level.

Now, he said, the most terrible economic situations had already passed by, with many industries now improving and the Stock Exchange of Thailand’s index rallying by 30 per cent since early this year.

He predicted that the economy in the 2nd and 3rd quarters would still contract, but would turn around and become positive in the 4th quarter.

Mr. Abhisit said it is believed GDP for the whole of this year would contract 3-5 per cent and turn to grow 1-2 per cent next year due to the government’s attempt to stimulate the economy through the implementation of various mega-projects.

He also believed the executive degree allowing the government to seek Bt400 billion in loans would pass its reading in Parliament next week.

As for the 3rd phase economic stimulus scheme, he said, the National Economic and Social Development Board (NESDB) had been assigned to carry out to boost Thailand’s competitiveness in the future. (TNA)

REF:enews.mcot.net

EXIM Bank: Thai economy likely to shrink 4% this year

2009-06-12T03:30:00.000-07:00

BANGKOK, June 8 (TNA) – The Thai economy is projected to shrink 4 per cent this year if the government succeeds in applying Bt400 billion of loans being sought by the Ministry of Finance to restore and rebuild the economy as scheduled, according to a top economist.

Narongchai Akrasanee, chaiman of the Export and Import Bank of Thailand (EXIM), said, however, that if the loans were not taken, the economy might contract more than expected.

Such a course would make the baht continue to appreciate against the US dollar for the rest of this year as the dollar had weakened.

At the same time, he said, Thailand’s international reserves, which remain more than US$100 billion now, had increased month by month and a certain amount of foreign capital had flowed in for investment in the market.

“Unless the executive decree allowing the government to seek Bt400 billion in loans passes the parliamentary vote, I believe the economy will shrink more than the current level.

“Now, only is the government in a position to spend and invest in many areas, as the private sector has slowed investment. So, the government should accelerate implementing the second economic stimulus scheme through various investment projects,” he said.

Mr. Narongchai said he believed that Thailand’s exports this year would contract more than last year by at least 20 per cent.

"All parties should stop projecting the export trend because it has already contracted," the EXIM chairman advised,“Instead all parties should turn to see whether new markets, particularly Asian countries with growth potential, have been restructured yet.” (TNA)

REF:enews.mcot.net

TDRI: Second economic stimulus programme will boost economy

2009-06-07T04:13:00.000-07:00

BANGKOK, June 7 (TNA) -- The private think-tank Thailand Development Research Institute (TDRI) is confident that the government’s planned injection of Bt1.43 trillion in its second economic stimulus programme will help the domestic economy begin to recover later this year.

TDRI President Nipon Poapongsakorn said the economy could grow 0.8 per cent in 2009 if the government accelerated its budget disbursements totalling more than Bt100 billion before the end of fiscal 2009.

About 80 per cent has already been spent by the government for this fiscal year which ends this September 30, according to Mr. Nipon.

He said that if the government applies the investment funds from the second economic stimulus programme, which runs from this year to 2012, the national economy in 2010 could grow from the projected 1.4 per cent to 2 per cent.

Somchai Jitsuchon, head of TDRI’s overall economic development and income distribution activities, said if the government continues its financial packages to help low-income earners with free public transport, subsidies for electricity, water and cooking gas and implements the second economic stimulus programme, the economy will begin recovery later this year.

Mr. Somchai predicts that Asian economies, including that of Thailand, will recover before the global economy, which he sees taking at least two to three years before it could improve. (TNA)

REF:enews.mcot.net

Thailand?s health and beauty products net handsome revenue

2009-06-07T04:04:00.000-07:00

BANGKOK, June 6 (TNA) – Thailand’s health and beauty products business sector is expected to net more than Bt100 billion for this year, according to the Export Promotion Department (DEP).

Director-General Rachane Potjanasuntorn said the health and beauty sector, particularly Thai spas, had become a one-stop healthcare product and service hub for buyers and sellers.

The sector is in a position to promote a positive image of Thailand’s health and beauty businesses in the eyes of foreigners and lead to a business expansion overseas.

Mr. Rachane said Thailand’s health service businesses are internationally-recognised as the number of international patyients using medical services in private hospitals had risen annually by around 10 per cent.

Last year, the health and beauty business sector earned Bt107.42 billion. It is expected the business would earn revenue of Bt108.19 billion this year.

Key markets include Japan, the United States, the Middle East, ASEAN, and South Asia.

New markets with growth potential include Russia, Eastern Europe, South Europe, Central Europe, and Canada.

Key rivals include India, Malaysia, Singapore, South Korea, Taiwan, and Middle East.

Mr. Rachane said the Thai healthcare, food, cosmetic product business had also grown.

As for the Thai spa business sector in 2008, over 4 million people had used the services, earning Thailand Bt14.88 billion. Of this, 3.2 million of the clientele -- 80 per cent -- are foreigners.

It is projected the Thai spa business would earn the country Bt15 billion this year. (TNA)

REF:enews.mcot.net

Government urged to have clear rice guarantee scheme plan

2009-06-07T03:59:00.000-07:00

BANGKOK, June 6 (TNA) – The government should have a clear rice price guarantee program plan in the interest of farmers in the long run, according to former deputy prime minister and finance minister M.R. Pridiyathorn Devakul.

Although Thailand’s exports might pick up somewhat in the second half of the year, he thought, the decline in farm product prices and any improper intervention in rice prices by the government would dampen farmers’ incomes.

An ineffective or counterproductive rice price plan will eventually weaken the expected recovery of local purchasing power.

The former finance minister said the rice mortgage system has been distorted during the past 4 to 5 years, resulting in middlemen, not farmers, getting full benefits from the system.

So, he said, if the government plans rice price guarantee programme, it must have clear rules and regulations to help farmers.

M.R. Pridiyathorn predicted that domestic rice prices will drop further in the second half of this year since the previous three governments had mismanaged the policy on rice, particularly the increase in the rice mortgage quota.

Simultaneously, India had begun exporting more rice, which will affect rice prices in the world market.

Because of this, the government needs must address the problem, he said. (TNA)

REF:enews.mcot.net

Kung Fu star may have died as a result of self-imposed sexual mishap

2009-06-05T14:37:00.000-07:00

BANGKOK, June 5 (TNA) – Thai police on Friday said they found no evidence of any kind suggesting Hollywood ‘Kung Fu’ and ‘Kill Bill’ actor David Carradine was murdered, while a Thai forensic expert believes his death may have been caused by an "autoerotic accident."

The 72-year-old actor was found dead, hanging naked with a rope tied around his neck and sex organ, in a closet in his room at the Swissotel Nai Lert Park Hotel on Thursday.

Bangkok Metropolitan Police chief Pol. Lt. Gen. Worapong Chewpreecha said that although Carradine’s death was unlike a normal hanging suicide, no evidence linked the actor's death to a murder attempt.

"We have checked the hotel’s closed circuit television (CCTV) footage and investigated the hotel’s employees, but found no suspicion circumstances to suggesting he was murdered," said the Bangkok police chief.

Representatives of the US Embassy in Bangkok have been invited for a briefing about the investigation and to receive information pertaining to the cause of the actor’s death, said Pol. Lt. Gen. Worapong, adding that police are awaiting results of an autopsy from Chulalongkorn Hospital.

Pol. Lt. Gen. Worapong said that police expect to conclude Carradine’s cause of death as soon as the autopsy results are known.

Meanwhile, Dr. Pornthip Rojanasunand, director of the Forensic Science Institute, the Thai Ministry of Justice, said that according to the circumstances surrounding Carradine’s death, the Hollywood actor may have died as the result of an "auto-erotic accident."

Dr. Pornthip elaborated that an ‘autoerotic accident’ occurs as the result of the victim indulging in an attempt to intensify his sexual fantasy. In this case, it is possible that the actor was unaware that the rope was tied around his neck too tightly as he indulged his fantasy, which may have led to his death.

"In the case of victims of an ‘autoerotic accident’, a naked body - usually a man - is often found with the sex organ bound by rope or cord and his neck similarily tied," said Dr. Pornthip.

The Thai forensic expert concluded that if the dead body was found under such circumstances, it is unlikely it was a case of murder.

But this is only the initial forensic theory based on the evidence thus far, she added. (TNA)

REF:enews.mcot.net

Thaksin supporters launch tabloid newspaper

2009-06-05T14:35:00.000-07:00

BANGKOK, June 5 (TNA) – Supporters of ex-premier Thaksin Shinawatra or the so-called red shirt group launched the first edition of a tabloid newspaper tagged “The Red News” on Friday.

The newspaper was published just less than two months after red-clad protesters stormed a summit of Asian leaders in the eastern seaside resort of Pattaya, forcing the meeting to be cancelled. The protestors then fought street battles with security forces in the capital.

PM's Office Minister Sathit Wongnongtoey said the government was concerned about the launch of the newspaper which hit newsstands on Friday.

Thailand's tourism, trade and foreign investment remain affected by the unruly protest in Pattaya led by the United Front for Democracy against Dictatorship (UDD), and forcing the cancellation of the ASEAN summit. Ensuing riots which paralysed many parts of Bangkok, prompted the government to declare a state of emergency during the Thai New Year holiday, he said.

“Print media should realise their social responsibility rather than serving as a tool (of any side) that can lead to more violent conflict,” Mr. Sathit said.

The government will closely monitor the content of the Red News, because the April violence was a lesson that (the government) must guard against any recurrence.

The first edition of the Red News featured an exclusive interview with UDD core leader Jakrapob Penkair, a former minister to the Prime Minister’s Office during Thaksin's administration.

Jakrapob remains at large after an arrest warrant was issued for him along with other UDD leaders following their leading role in the anti-government violence and street protests in the capital during the Thai New Year holiday in April.

In an exclusive interview with the paper, Jakrapob defended his flight, saying the military crackdown prompted him to flee only to further direct the red-clad fight for their common course in a 'safe zone'.

In the interview he talks about his 35-hour escape through military checkpoints before reaching a safe haven. He said he was not far away from home where he could keep abreast of the news in Thailand, but refused to disclose his whereabouts. (TNA)

REF:enews.mcot.net

PAD registers new party with Election Commission

2009-06-05T14:33:00.000-07:00

BANGKOK, June 4 (TNA) – Thailand’s People's Alliance for Democracy (PAD) activist movement which played a key role in driving three successive Thai governments from office, Thursday registered a new political party with the Election Commission (EC).

The newly-formed party will be registered as the New Politics Party (NPSP) and is headed meantime by a key PAD leader Somsak Kosaisuk.

The NPSP interim leader turned up at the EC office at 9.09 am together with the party’s secretary-general Suriyasai Katasila who is the PAD coordinator, to register the new party and its 27-executive members.

Another four PAD key leaders, Sondhi Limthongkul, retired Maj-Gen. Chamlong Srimuang, Pipob Thongchai and Somkiat Pongpaibul however are not on the list of the party’s executive members.

Somkiat is now a Democrat Party MP.

Mr. Somsak said the names of NPSP executive members may be changed as there will be a party general assembly to choose a leader and executive members, once the registration process is legally completed.

The party general assembly is expected to be held within two months.

The NPSP interim leader said that if the EC certifies the party registration on Friday, the NPSP will kick off its member subscription and set up four regional branches to prepare for the NPSP general assembly as soon as possible.

He said that his party would focus on civil politics and the fight against corruption with an aim to change what they called the “current old-style politics." (TNA)

REF:enews.mcot.net

Finance Minister: Thai economy bottoms out in Q1/09

2009-06-05T14:30:00.000-07:00

BANGKOK, June 5 (TNA) - The Thai economy has already hit rock bottom at minus 7.1 per cent during the first quarter of 2009, and any indicators from that point on should be better, according to Finance Minister Korn Chatikavanij.

Mr Korn was addressing an annual seminar at Rajabhat Chandrakasem University focussing on Thailand’s economic opportunities.

Nevertheless, Thailand must remain on guard against any potential setback resulting from external economic factors, particularly economic woes in the US and its troubled financial sector.

As the dollar weakens and the baht gets stronger, Thai exports are affected. Compounding the strength of the currency is the rising oil price, which he reckons would reach at least 85 dollars a barrel towards the end of the
year. This means, he said, higher costs for the manufacturing and transport sectors.

Mr Korn said even though the government may not last, it is nevertheless laying down all the necessary foundations for sustainable economic growth and stability.

The government has started looking for lending sources for a 400 billion baht loan, and its “Strong Thai” scheme featuring 1.43 trillion baht in spending to pump-prime the economy.

“Although politics make the economy stumble, the people still want to see all governments pressing ahead with economic stimulus,” he told the forum.

Former finance minister and former central bank governor Pridiyathorn Devakula said the government’s popularity has soared after the Cabinet put a damper on the plan to buy 4,000 NGV-powered buses a potential deal which many have labelled as not transparent.

As a result of the move, this government should last longer than one year, giving it the leverage to make various key projects going ahead, he said.

Pridiyathorn said as the economies of the US, Europe and Japan are still in the doldrums, Thailand should instead pursue trade opportunities with China. (TNA)

REF:enews.mcot.net

World Bank: Thai economy to improve in second half of 2009

2009-06-05T14:27:00.001-07:00

BANGKOK, June 5 (TNA) - As the global economy shows signs of recovery, the heavily export-oriented Thai economy should recover in the latter half of the year, said World Bank's economist for Thailand Kirida Bhaopichitr.

Ms Kirida cautioned however that a number of global economic factors remain as yet uncertain.

In April, the World Bank forecast that the Thai economy is likely to contract by 2.7 per cent this year, but this figure will be updated and revised in October.

She said the Thai government’s performance over the last five months has been good, particularly in boosting consumer confidence and applying rapid stimulus measures to put cash in people’s hand, even though the steps did not benefit all segments of society.

The World Bank economist added that the economic recession has seen an increase in non-performing loans in Thailand. She added however that the situation is still under control as financial institutions are awash with excess liquidity as they curb lending.- (TNA)

REF:enews.mcot.net

Thai Industry Minister urges Indian investors to set up in Thailand

2009-06-05T14:24:00.000-07:00

MUMBAI, June 5 (TNA) – Thai Industry Minister Charnchai Chairungrueng, leading a roadshow to India, took the opportunity to encourage giant Indian fertilizer company Deepak Fertilisers and Petrochemicals Corporation (DFPC) to establish a fertilizer factory in Thailand, a move he said would provide Thai farmers with competitively priced fertilizers.

Mr. Charnchai held talks with the senior vice president of DFPC in a bid to convince the corporation to establish a fertiliser factory at the Map Ta Phut Industrial Estate, where the national fertilizer company was once
located, to produce fertiliser from natural gas.

The minister said it would help the supply of cheaper fertiliser produced in Thailand and reduce the importation of fertilisers which took off after the national fertiliser company closed two years ago, he said.

Atchaka Sibunruang Brimble, Thai Board of Investment (BOI) secretary general, accompanying Mr. Charnchai to India, said the Indian fertiliser company will decide in July if it will go ahead with a plan to set up the factory in Thailand.

To encourage investors, the BOI offers eight year tax exemptions and tax cuts of 50 per cent for another five years as well as zero import tax on machinery, she said .

More than 35 Indian investors in auto parts, chemical, alternative energy industries are already confident in the Thai government’s policies to welcome foreign investors, Ms Atchaka said.

The roadshow to India lasts between June 2-6 and the minister will lead more roadshows to India later this year.

Indian investors expressed their interest in seeking privileges from the BOI and some companies have planned big projects worth more than ten billion baht, she added. (TNA)

REF:enews.mcot.net

Government urged to invest in developing transport logistics system

2009-06-05T14:16:00.000-07:00

BANGKOK, June 5 (TNA) – The government should accelerate investment in the development of the nation's transport infrastructure in order to boost the country’s competitiveness, according to a former central bank governor.

Delivering a keynote speech on “Logistics Cost Management and Country’s Competitiveness,” former deputy premier and finance minister M.R. Pridiyathorn Devalkul said he agreed with the government’s plan to develop the nationwide logistics system, particularly in the marine transport sector in the Southern Seaboard where new ports are to be built and existing ports revamped to enhance service efficiency.

He said the government should also speed up investment in developing the national rail system and expand investment in construction of the dual track project under the plan prepared by the State Railway of Thailand to lengthen nationwide track capacity by 800 kilometers.

The private sector must also be encouraged to jointly provide rail transport services to help boost efficiency, he said.

Simultaneously, the government must accelerate the expansion of container yards at major railway stations and develop goods distribution centers nationwide.

This focus on transport infrastructure development would ultimately help lower costs in Thailand’s transport sector, he said. (TNA)

REF:enews.mcot.net

PM aspires to resuscitate economy for sustainable growth

2009-06-05T14:10:00.000-07:00

BANGKOK, June 5 (TNA) – Prime Minister Abhisit Vejjajiva on Thursday revealed his strategy to resuscitate the Thai economy and ensure sustainable growth going forward.

Delivering a keynote speech on “Global Crisis and How to Drive Thailand,” he said the current economic crisis is far worse and more worrying than the situation in 1997 when the country’s financial system came under pressure.

He conceded it was hard for the Thai economy to recover unless and until the global economy shows signs of recovery.

“No matter how efficiently we are able to stimulate our economy, it is difficult to recover completely if the world economy fails to pick up," he said, adding that the previous economic crisis broke out in a few countries including Thailand, Indonesia and South Korea. But the current economic crisis erupted and spread around the globe. So, the process of recovery is more worrying.

“Additionally, the economic crisis Thailand is facing now has been fueled to a great extent by persistent political and social conflicts in the past several years. So, it is a complicated crisis which is hard to address,” he said.

However, Mr. Abhisit said his government had already prepared both short and long-term measures to drive a recovery in the Thai economy.

In the past five months, he said, many people had criticised the government for simply focusing on solving short term problems while waiting for the situation to return to normal.

The premier said his government had not only set a target to pull the country out of the currency crisis, but it had also attempted to consolidate the economic fundamentals of the country to ensure sustainable economic growth. (TNA)

REF:enews.mcot.net

Thai govt may extend subsidies to help low-income earners

2009-06-04T10:44:00.001-07:00

BANGKOK, June 4 (TNA) -- Thai Finance Minister Korn Chatikavanij said on Thursday that some measures proven to be beneficial under a six-month programme of government-funded subsidies to help relieve the burden of low-income earners, may be extended.

The five-pronged range of economic measures expires in July.

Mr. Korn said his ministry is now studying which measures should be maintained and which should be dropped.

The measures include free tap water for households nationwide using less than 30 units a month, free electricity for households throughout the country using less than 90 units monthly, free third class travel on trains, free travel on 800 buses of the state-run Bangkok Mass Transit Authority on 73 routes in Bangkok, and a freeze on the price of cooking gas. (TNA)

REF:enews.mcot.net

Thai Finance Ministry to issue 5-yr savings bonds in July

2009-06-04T10:41:00.000-07:00

BANGKOK, June 4 (TNA) - Thai Finance Minister Korn Chatikavanij has given approval for the issuance of five-year saving bonds worth Bt30 billion in July, said the Ministry’s director-general of Public Debt Management Office Pongpanu Svetarundra on Thursday.

The planned issuance of saving bonds is in line with the government’s stategy to borrow money during current fiscal 2009 which ends this September 30, said Mr. Pongpanu.

A higher than market interest rate will be offered in order to attract investors and the rate will be increased after the initial three-year term, he said.

The bonds will be offered to the public and the minimum purchase for any investor is Bt10,000, while the maximum is Bt10 million, said Mr. Pongpanu.

He said he was optimistic that the bonds would receive a positive response from investors as they offer better-than-market rates, hold no risk and the five-year maturity is neither too short nor too long.

Between three and four commercial banks will help sell this issue rather than just one bank which is the normal practice, he said. This should encourage a wider range of retail investors to buy them, he said. (TNA)

REF:enews.mcot.net

Thailand to import the Tata Nano from India

2009-06-04T10:39:00.000-07:00

MUMBAI, June 4 (TNA) -- Visiting Thai Industry Minister Charnchai Chairungrueng said here on Thursday that Thailand is expected to import the price-competitive 650 cc Tata Nano brand manufactured by India’s Tata Motors soon.

Accompanied by Atchaka Brimble, secretary-general of the Thai Board of Investment (BoI), and several leading Thai businessmen, Mr. Charnchai, who is leading a roadshow to Mumbai, said he had also invited Tata Motors to establish a manufacturing plant to build the Nano in Thailand.

Tata Nano will be launched commercially next month and is priced between Bt80,000-150,000. If it could be produced in Thailand it could allow low-income earners in Thailand to buy it, said Mr. Charnchai.

Ajit Venkatraman, CEO of Tata Motors (Thailand) Ltd., said he is confident that the Tata Nano would receive a warm reception in Thailand.

The car has a maximum speed of 85 kilometres per hours, consumes one litre of gasoline every 22 kilometres,and plans are to develop the car to Euro 4 and Euro 5 standards in future.

On a plan by Tata Motors to manufacture eco cars in Thailand, Mr. Venkatraman said the company needs to review the plan again due to the current global economic meltdown as its sales in India have already declined 60 per cent, causing a liquidity crunch for the company.

He urged the Thai government to find low-interest loans for the company as the eco car project requires an investment of more than Bt7 billion.

Mr. Venkatraman added he is also uncertain whether production requirements at 100,000 units annually would be too much, as the auto market has turned sluggish.

During talks with Mr. Charnchai, senior executives from Tata Motors also requested the Thai government lower the horsepower of one-tonne trucks required by the Thai government to 2,200 cc from 2,500 cc. The company does not produce the 2,500 cc trucks and, is therefore unable to join in bidding to supply smaller vehicles.

Mr. Charnchai said on his return to Thailand he would confer with the Thai Budget Bureau, Finance Ministry and economic ministers regarding the Tata Motors request. (TNA)

REF:enews.mcot.net

Private sector backs government spending to accelerate recovery

2009-06-04T10:37:00.000-07:00

BANGKOK, May 4 (TNA) – The private sector has voiced support for the government’s policy to accelerate state spending to drive the country’s economy, according to a top banker.

Kosit Panpiemras, executive chairman of Bangkok Bank, the country’s largest commercial bank, said however the government must spend the appropriate funds and in a limited period of time to prevent accumulated burdens in the future.

He cautioned that the spending be kept under control so as to avoid jeopardising the government’s efforts to seek sufficient revenues for national development.

Should government spending proceed as planned, he believed the Thai economy will turn around and eventually register positive growth. He said the government needed to accelerate spending because currently the business and household sectors are not in a position to help drive the country’s economy.

Asked how the government’s planned spending would affect the economy, he said it depended on the nature of investment projects involved and periods of implementation.

Mr. Kosit said BBL maintained its forecast that the Thai economy would shrink 3 per cent this year, while his banks' own lending would grow by 3-5 per cent as targeted. (TNA)

REF:enews.mcot.net

Thailand confirms first human-to-human transmission of A (H1N1)

2009-06-04T10:32:00.000-07:00

BANGKOK, June 4 (TNA) -- Thai Public Health Ministry officials on Thursday confirmed the first human-to-human case of the Influenza A (H1N1) virus, bringing the total number of confirmed infections in the kingdom to eight.

Deputy Prime Minister Sanan Kajornprasart told a press conference after chairing a meeting on the virus that a 19-year-old man whose mother had returned from a trip to the United States on May 25, had contracted the disease. He became infected due to close contact with his mother, making him the first case in Thailand country to contract the virus through human-to-human transmission.

The man did not accompany his mother on the trip.

Sanan said that the 50-year-old mother had fully recovered after receiving treatment in hospital.

Two other new cases are also both women who had travelled to the United States and returned home recently, said Sanan.

Public Health Minister Witthaya Kaewparadai said he expected that influenza A virus would continue spreading in Thailand. His ministry would cooperate with the Education Ministry in a bid to control the spread of the disease as many young Thai students had been abroad to study.

Educational institutions will have to ask students suspected of contracting the virus to stay home and receive treatment, in order to prevent any spread among fellow students, he said. (TNA)

REF:enews.mcot.net

Farmers block highway; demand government rice support continuation

2009-06-03T08:20:00.000-07:00

CHIANG RAI, June 3 (TNA) -- More than 200 rice farmers in Thailand’s northernmost province of Chiang Rai on Wednesday blocked a highway once again, demanding that the government continue its rice support programme.

The protesting farmers blocked Phaholyothin highway in Phan district, a road leading to Phayao, after learning that the government plans to use a price guarantee programme instead of a pledging or mortgage scheme for major crops.

They installed tents and used loudspeakers on their cars, stopping all traffic on the highway.

The protesters demanded that provincial authorities locate silos to store their crop at prices fixed by the government, with payment to be made within three days.

About 250,000 tonnes of rice in Chiang Rai now await harvested.

They threatened to block the highway until the government extends rice mortgaging scheme, or a better solution is found.

In Bangkok, Prime Minister Abhisit Vejjajiva told journalists that the Cabinet agreed Wednesday to fix sugarcane prices.

He said the quota of the government-sponsored rice mortgage scheme is full while rice in some provinces has just been harvested.

The rice policy committee has been assigned to determine if the quota should be increased.

The committee will meet Friday and a solution should be found, Mr. Abhisit said. (TNA)

REF:enews.mcot.net

PM Abhisit: Delayed bus project won't affect loan decree

2009-06-03T08:18:00.000-07:00

BANGKOK, June 3 (TNA) - A delay in the Bangkok bus leasing project proposed by the Transport Ministry will not affect the government’s executive decree to seek Bt400 billion in loans to stimulate the national economy, Prime Minister Abhisit Vejjajiva said on Wednesday.

Speaking to journalists after the Cabinet meeting, Mr. Abhisit said his government’s policy is clear that the debt-ridden Bangkok Mass Transit Authority (BMTA) must undertake a major reorganisation in line with mass transit committee policy.

The prime minister said that Transport Minister Sopon Zarum expressed no dissatisfaction at the Cabinet meeting when it assigned the National Economic and Social Development Board (NESDB) review the project within one month.

After completing the study, the NESDB must report to the Cabinet, said Mr. Abhisit.

The NESDB must review the project involving 4,000 natural gas-powered buses to be leased for 10 years at a cost of Bt64.85 billion to serving commuters in the Thai capital.

The prime minister said delaying the project will not lead to a rift in his coalition and will not affect the vote on the executive decree when it is tabled for House of Representatives approval during the extraordinary parliamentary session on June 15.

Meanwhile, a government spokesman said ministers at the Cabinet meeting did not doubt the transparency of the project, but due to criticism that the leasing is too expensive, the Cabinet decided to assign NESDB to conduct the study.

The study will focus on whether leasing or buying buses will bring about maximum benefit without making further debt to burden the BMTA, according to the spokesman. (TNA)

REF:enews.mcot.net

Airport link's soft launch planned in December

2009-06-03T08:16:00.000-07:00

BANGKOK, June 3 (TNA) – Direct express rail service linking Suvarnabhumi Airport to downtown Bangkok will commence in December, with the public getting free rides for one month.

Tawanrat Ornsira, Deputy Permanent Secretary for Transport Ministry and chairman of the State Railway of Thailand (SRT) board, said Wednesday that construction of the direct Airport Link, a 28-km rail link between Suvarnabhumi and the City Air Terminal in Bangkok’s Makkasan area, is now 98 per cent complete. The builder is expected to hand over the Airport Link to the SRT in September.

After the official handover, the rail link’s security system will be inspected and tested prior to launching a one-month period of free rides starting from December 5, according to Mr. Tawanrat.

Evaluation of the project will be carried out early next year, as the trial period for the Airport Link service will be conducted for three months before full service is initiated, expected to be in March.

The Airport Rail Link is owned and will be operated by SRT, through a subsidiary company, which will administer the overall operations.

According to a preliminary study, the fare for an express trip will be Bt150 per person, while fares for the City Line commuter trips, will vary from Bt30-50 per passenger.

Transport for airport express riders and local commuters will run on the same track with the same equipment, but with a staggered schedule.

Premium-fare express services will run on the hour between Suvarnabhumi Airport and City Air Terminal, while the City Line service will stop at six local stations along the route. (TNA)

REF:enews.mcot.net

Controversial Bangkok bus leasing project goes for review

2009-06-03T08:14:00.001-07:00

BANGKOK, June 3 (TNA) - A controversial bus leasing project for Bangkokians which would cost the Thai government Bt64.85 billion was delayed again Wednesday as the Cabinet asked the National Economic and Social Development Board (NESDB) to review the costly project within one month.

Transport Minister Sopon Zarum, a member of the Bhumjaithai Party which is a key partner in the coalition government of Prime Minister Abhisit Vejjajiva, told journalists after the Cabinet meeting that he could accept the Cabinet decision as the NESDB was earlier involved in assessing the project, but it must now determine cost benefits of leasing and buying the buses.

Mr. Sopon said his ministry is willing respect the decision of the NESDB but his ministry still believes that leasing the buses is the “most suitable way.”

Under Mr. Sopon’s plan, 4,000 natural gas-powered buses will be leased for 10 years at Bt64.85 billion to improve the fleet of the debt-ridden Bangkok Mass Transit Authority.

The plan has drawn flak, especially by some 40 senators who have threatened to derail the government’s executive decree seeking Bt400 billion in loans to stimulate the economy and the government’s draft budget for Fiscal 2010 beginning October 1 when they go before Parliament for approval if the Cabinet endorses the bus leasing project.

Members of the ruling Democrat Party, led by Mr. Abhisit, are also not happy about the expensive project especially when the country’s economy has become sluggish.

Interior Minister Chavarat Charnvirakul, also leader of Bhumjaithai Party, told journalists that his party did not lose face on the Cabinet decision.

It is as if “each party took one step back”, Mr. Chavarat said. The Democrat Party was not ‘buying time’ by assigning the NESDB to conduct the study. (TNA)

REF:enews.mcot.net

Thai exchange, SET, likely to continue downsizing

2009-06-03T08:11:00.001-07:00

BANGKOK, June 3 (TNA) – The Stock Exchange of Thailand (SET) is expected to continue downsizing and receive less attention from world-class funds in the next 4-5 years, according to a top fund manager.

Susheel Narula, president of Kasikorn Asset Management, said the investment weight given by mutual funds worldwide to the Thai bourse has been below 0.5 per cent while that provided by the MSCI Index has been reduced to 2 per cent from 4 per cent.

“The smaller the Thai stock market, the less attention foreign investors pay,” Mr. Susheel noted.

Thailand is a small part of the market, getting more noticeable attention for only three or four years.

He said the number of IPO shares around the world totalled US$1.6 trillion. Of this, 18 per cent of the shares are in Asia, 53 per cent in China, and only about one per cent represent stocks from SET.

Bualuang Asset Management Co. forecast that foreign investment would continue flowing into the Thai bourse in a rather large amount this week.

Foreign capital inflow in Thailand since early this year has been “rather low at around $14 billion against $70 billion of capital outflow,” he said.

The information indicated that many funds missed the current rally of the Thai bourse and might begin purchasing stocks in a new round.

Under the circumstances, the SET index has the leeway to continue increasing for now. (TNA)

REF:enews.mcot.net

Thai government pension chief resigns in wake of investigation

2009-06-03T08:06:00.000-07:00

BANGKOK, June 3 (TNA) – Thailand’s Government Pension Fund (GPF) Secretary-General Visit Tantisunthorn on Tuesday revealed he had given his letter of resignation to the chairman of the board of directors to show regret and to take responsibility for any damage incurred by the agency.

A source said Mr. Visit’s resignation took place after the agency moved to examine its performance, especially concerns about losses from its investments.

Headed by GPF board chairman Sompol Kietipaiboon, the ad hoc committee includes representatives of the Ministry of Finance, the Office of the Attorney General, the Bank of Thailand, the Securities and Exchange Commission, the Stock Exchange of Thailand, and the National Police Office.

Mr. Visit was also alleged by the Committee on Prevention and Suppression of Corruption in Public Sector for a purchase and sale of stocks in his private investment portfolio a few days prior to investment by the Fund in the stock market.

Among other concerns, Mr. Visit is alleged by the Committee on Prevention and Suppression of Corruption in Public Sector to have bought and sold stocks in his private portfolio related to investments by the fund in the stock market.

The GPF secretary-general offered apologies, saying he had intended no wrongdoing and had not wished to exploit the fund to his personal advantage. He thanked those who had cooperated in the fund’s performance for nearly eight years. (TNA)

REF:Thaipr.net

GM Thailand: Business still strong, moving ahead with new diesel engine plant

2009-06-02T11:57:00.000-07:00

BANGKOK, June 1 (TNA) - Even though General Motors in the United States is in economic straits and plans to file for Chapter 11 protection on Monday, its subsidiary General Motors (Thailand) Ltd. said its business in the kingdom remains solid with no plans to lay off more employees as the firm is now negotiating with banks regarding loans to be invested in a new diesel engine plant.

The company went through a restructuring earlier this year, reducing its workforce by nearly one-third by using voluntary retirement incentives, which nonetheless led to employee protests at the time.

Stephen Carlisle, president of GM Southeast Asia Operations Ltd, including General Motors (Thailand) Ltd. and Chevrolet Sales (Thailand) Ltd., said GM in Thailand still believes there is plenty of opportunity in Thailand and that the country could develop into a hub for Asia or even for the world in certain products.

The GM chief said during a meeting with Thai Industry Minister Charnchai Chairungrueng on Monday that although his parent company had terminated some of its employees and downsized its operations, GM Thailand was not impacted.

His remarks were made as GM bondholders in the U.S. voted Saturday in support of a restructuring plan. Under the plan, bondholders would have the right to buy an extra 15 per cent of GM’s stock at a low price.

They would also control 25 per cent of the new GM, after having supported the new company’s creation in bankruptcy court.

The Obama administration has set Monday as the deadline for General Motors to submit a viable restructuring plan or file for bankruptcy.

On a plan by GM Thailand to build a new diesel engine plant in this country, Mr. Carlisle said his company is still negotiating with banks in Thailand including the Export-Import Bank of Thailand regarding loans and the results should be known within 60-90 days.

General Motors (Thailand) announced its plans last August to invest US$445 million to build the new diesel engine plant, its first in Southeast Asia, in the eastern Thai province of Rayong, where the US automotive giant has operated an assembly plant for the past nine years.

Meanwhile, Mr. Charnchai said he was briefed on the overall situation of GM by Mr. Carlisle and that his ministry would help the firm in Thailand to receive privileges equal to local operators.

Mr. Charnchai said GM (Thailand) had not discussed the company’s plan to invest more with him, but that he had conferred regarding increasing investment under promotional privileges granted by the government’s Board of Investment.

Meanwhile, Deputy Director-General of the Department of Labour’s Protection and Social Welfare Department Arthit Issamo reaffirmed that General Motors (Thailand) Ltd. won’t be affected.

It was the Thai-based company remains strong after recent restructuring to cut its production and overhead costs, he said.

The company reduced its employees through early retirement incentives and a voluntary resignation scheme, which caused the number of employees to drop from 2,343 to 1,643, leading to a protest at the beginning of this year.

Now, the terminated employees are seeking settlement their demands such as bonus payments, Mr. Arthit said. The situation of the parent company in the United States should make the Thai employees understand why its subsidiary in Thailand underwent the restructuring process. (TNA)

REF:Thaipr.net

Inflation unlikely to contract this year: KRC

2009-06-02T11:54:00.000-07:00

BANGKOK, June 2 (TNA) – Thailand’s inflation rate is unlikely to contract this year although headline and core inflation rates are set to stay in negative territory for several months, according to Kasikorn Research Center.

The leading think tank said the inflation trend is edging out of the inflation target set by the Bank of Thailand (BoT), but believes the trend will continue temporarily.

KRC projected that inflationary pressure will gradually increase, particularly in the fourth quarter.

Still, government measures that could effectively ease consumer costs now would help alleviate inflationary pressure in the rest of this year.

Under the circumstances, the BoT would be able to continue applying an easing monetary policy for at least 6-9 months.

KRC forecast that the headline and core inflations for the entire year will stay at 0.0-0.1 and 0.5-1 per cent respectively.

Regarding a possible oil price rebound, the think tank said the government should provide measures and contingency plans to deal with the situation such as a campaign for continued energy saving and an integrated alternative energy plan covering raw materials, production and marketing.

Simultaneously, it advised entrepreneurs to monitor the movement of raw materials prices to ensure they buy in an appropriate manner. (TNA)

REF:enews.mcot.net

Former anti-government PAD activists set up political party

2009-06-02T11:47:00.000-07:00

BANGKOK, June 2 (TNA) - Thailand's activist People’s Alliance for Democracy (PAD), which played a key role in driving three Thai governments from office in the past, officially established its own political party Tuesday, naming it the New Politics Party (NPSP), according to the movement’s leaders.

Somsak Kosaisuk, a top PAD core leader, told a press conference that initially his political party is to be named the New Politics Party, with a 21-member committee.

Mr. Somsak said he will head the party, and Suriyasai Katasila will be secretary-general, and retired vice admiral Pratheep Chuen-arom will be party spokesman.

He said the NPSP will register with the Election Commission on Thursday.

Initially, Mr. Somsak said he sees Thai politics changing with the party’s establishment as the “current old-style politics has damaged the country.”

Whether the NPSP would cooperate with other political parties is yet to be seen, but a common stance must be adopted, Mr. Somsak said, “to work for the country.”

High-profile leader Sondhi Limthongkul, earlier expected to lead the party, told journalists that he believed thousands of people would join the party. He said another party meeting will be held to elect the committee.

The new committee will be elected by registered members of the new entity, not the existing PAD stalwarts, Mr. Sondhi said. (TNA)

REF:Thaipr.net

GM Thai, ASEAN unaffected by US parent firm's bankruptcy

2009-06-02T11:43:00.000-07:00

BANGKOK, June 2 (TNA) - One day after Detroit-based General Motors declared bankruptcy, its top manager in Thailand reaffirmed Tuesday that GM units in Thailand and elsewhere in the Association of Southeast Asian Nations (ASEAN) region will not be affected.

Stephen Carlisle, president of GM Southeast Asia Operations Ltd -- including General Motors (Thailand) Ltd. and Chevrolet Sales (Thailand) Ltd. -- said the Asia-Pacific operations, including Thailand and ASEAN, would drive the new GM to achieve its goals.

GM (Thailand) seeks to achieve long-term growth in Thailand and ASEAN, the auto executive said. “Despite the region being hit by economic meltdown, GM operations in the region still enjoyed surprising growth during the first quarter this year and are expected to continue until the end of this year.”

Pledging continued support to GM Corp, US President Barack Obama said on Monday after the bankruptcy declaration that the US government will own 60 per cent of the new GM.

Mr. Obama said he hoped the American company would emerge quickly from bankruptcy. He said that his government is ready to inject another US$30 billion to assist the company get on its feet.

Antonio Zara, vice president of sales, marketing and after-sales for Chevrolet Sales (Thailand) Ltd., said this year’s sales are projected to decline while sales in some ASEAN members are still growing considerably.

Despite negative reports about GM Corp in the US, the company in Thailand is becoming assertive, replacing its defensive business tactics with new products to be launched soon, said Mr. Zara.

GM units in ASEAN will in coming months launch new campaigns and sales promotions with an aim to create confidence among the customers. (TNA)

REF:enews.mcot.net

Thailand confirms 5th H1N1 flu case

2009-06-02T11:39:00.000-07:00

BANGKOK, June 2 (TNA) -The Ministry of Public Health on Tuesday confirmed the country’s fifth case of the deadly Influenza A (H1N1), a Thai woman who recently returned from the United States, where she apparently was exposed to the virus.

Clinical samples from the 18-year-old woman tested positive for the H1N1 virus, according to Permanent Secretary for Public Health, Dr. Prat Boonyawongvirot.

Arriving in Thailand on May 27, the woman showed flu-like symptoms and was admitted to hospital on the following day to receive medical treatment.

She is on medication and while her condition has improved, she remains hospitalised.

Six close relatives and friends are also being monitored, asked to stay home for seven days, to avoid any activity which might spread the disease to others in case they had also contracted the virus.

Currently, Thailand has 13 suspected H1N1 cases awaiting test results.

According to the latest World Health Organization (WHO) report, 62 countries had officially reported 17,410 cases of Influenza A(H1N1), including 115 deaths. (TNA)

Thai Entrepreneurial Confidence Index falls to 40.4 in April

2009-06-01T08:59:00.000-07:00

BANGKOK, June 1 (TNA) - Thailand’s entrepreneur confidence index in trade and services for April this year fell to 40.4 from 41.6 in March, according to Pak Tongsom, acting director of the Office of Small and Medium Enterprises Promotion.

The decline in April was felt in almost every business sector, especially in wholesale, retail and services whose indices stood at 40.1, 39.8 and 41.1 respectively, from 41.7, 40.5 and 42.7 the previous month, Mr. Pak said.

The confidence index regarding their own businesses’ prospects also slipped to 32.1 from 34.7, indicating a larger spread. The confidence index regarding the national economy, however, rose by 1.3 to 24.4 in April from 22.1 the previous month, he said.

Declines in April in almost every sector were attributed to the street clashes between security forces and anti-government protesters in mid-month coupled with uncertainty in the domestic and global economies, and a rising trend in oil prices which impacted production costs and the public’s cost of living.

Mr. Pak said indices which stood below 50 showed that business entrepreneurs still did not have full confidence as most believed that negative factors which could impact their businesses were the sluggish national economy, poor consumer purchasing power, a lower demand for goods and services, fiercer market competition, and higher production costs and labour wages. (TNA)

REF:enews.mcot.net

GM Thailand: Business still strong, moving ahead with new diesel engine plant

2009-06-01T08:56:00.000-07:00

Another Thai woman diagnosed with H1N1 influenza virus

2009-05-30T03:18:00.000-07:00

BANGKOK, May 30 (TNA) -- A 52-year-old Thai woman who returned earlier this week from the US and Canada has been found to have contracted the potentially-lethal influenza A (H1N1) virus, according to Dr. Praj Boonyawongvirot, Permanent Secretary for Public Health.

Dr. Praj said the victim went to the U.S. and Canada with her son and eight other persons on May 13. They boarded a luxury cruise liner in Alaska and spent eight nights on the ship.

The party returned to Bangkok on Tuesday, he said. The woman suffered a fever and sore throat the next day and went to see a doctor at a Bangkok hospital and was found to have contracted the disease.

The woman, the third victim of influenza A virus in Thailand following the outbreak of the disease in Mexico, is now recovering after doctors gave her antiviral drug Tamiflu, Dr. Praj said.

Meanwhile, Bangkok deputy governor Dr. Malinee Sukvejvorakij said her office, the Bangkok Metropolitan Administration, had cooperated with the Ministry of Public Health caring for the woman from the beginning when she was sent to hospital for treatment.

The patient has now been went to her home upcountry, Dr. Malinee said. (TNA)

REF:enews.mcot.net

Thailand's Industrial Output Index falls in April

2009-05-30T02:39:00.000-07:00

BANGKOK, May 28 (TNA) – Thailand’s Industrial Output Index in April shrank 12.84 per cent from the same month last year, despite many industries showing signs of coming recovery, according to the Industrial Economics Office (IEO).

Director-General Arthit Vuthikaro said the index had risen for three consecutive months from contraction sof 25.6 per cent in January, 23.07 per cent in February, and 17.74 per cent in March.

The reduced contraction of the index is considered a positive sign as many industries began to receive purchase order and led to increased employment following layoffs of industrial workers late last year.

In particular, he said, electronics producers had received numbers of purchase orders from China, which had accelerated its national development.

Also, carmakers and hard disk producers received many purchase orders from China, resulting in the April index shrinking in a narrower range.

In short, the output index (value-added) in April stayed at 146.66 points, down 12.8 per cent from 168.27 in the same month the year before, the goods delivery index at 140.69, down 16.69 per cent from 168.88, the index on labour in the industrial sector at 102.49, down 5 per cent from 107.88, and the inventory index at 224.50, up 11.41 per cent from 201.50. (TNA)

REF:ENEWS.MCOT.NET

PM calls on private sector to help restore the economy

2009-05-30T02:26:00.000-07:00

BANGKOK, May 30 (TNA) – Prime Minister Abhisit Vejjajiva on Friday called on the private sector to help restore the economy, saying it had a significant role in developing the Thailand’s economy to ensure sustainable growth.

Delivering a keynote speech on “The Economic Stimulus Package: How Businesspersons Can Give Assistance,” he said that Thailand's current economic crisis is different from the crisis of 1997 because it stemmed from external factors, not local financial problems as in in the past.

The government had monitored and supervised the crisis and come up with multi-level measures to curb possible impacts and strengthen the economy.

He conceded the immediate situation his government is facing now remained unabated. But there are some signs the economic problem began to ease and the unemployment had dropped.

Mr. Abhisit said he wanted to seek the private-sector cooperation to help shore up the economic situation because he was informed that some groups of people would attempt to instigate unrest in June.

He affirmed should the bill authorizing the Ministry of Finance to seek Bt400 billion in loans to help restore economic stability this year win approval, the government will apply the funds to invest in a schedule of critical projects.

It is expected the projects would create up to 1.5-2 million jobs and boost competition in the economic, education and public health sectors, he said. (TNA)

REF:ENEWS.MCOT.NET

Govt presses ahead with development project to quell southern violence

2009-05-30T02:22:00.000-07:00

PATTANI, May 29 (TNA) – Deputy Prime Minister Suthep Thaugsuban on Friday convened a security meeting of senior officials to push forward development projects aimed at ending the continuing violence in the southern border provinces.

Among those attending the meeting were Thaworn Senneam, Deputy Minister of Interior, Army Commander Gen. Anupong Paochinda, Police Commissioner-General Pol.Gen. Patcharawat Wongsuwan as well as the governors of five southern border provinces, all on hand to discuss solutions to quell the southern unrest.

They also discussed plans on developing the southern provinces to achieve the government-targeted plans and budget for development projects from 2009-2012. The development overall scheme aims to improve the quality of life and create jobs for the local populace, Mr. Suthep said.

The establishment of the new agency to take overall control of the response to the southern insurgency is the law at issue, which needs more consideration, he said.

The Internal Security Operations Command (ISOC) and the Southern Border Provinces Administrative Centre (SBPAC) are the main agencies in charge of official operations in the deep south, he added.

Development projects and a public relations campaign to promote understanding between the state agencies and local villagers will be discussed and assigned to be tasked by local officials, he said. (TNA)

REF;ENEWS.MCOT.NET

Thai economy shows signs of recovery: BoT

2009-05-30T02:20:00.000-07:00

BANGKOK, May 30 (TNA) - The Thai economy began signalling recovery in April despite political unrest and long public holidays, according to the Bank of Thailand (BoT).

BoT Local Economy Division senior director Amara Sripayak said Friday that economic data released in April was better than expected.

The industrial production index rose 7.6 per cent and private consumption index edged up 0.7 per cent from the previous month because there was an increase in purchase orders in the electronics and electrical appliance sectors.

However, private investment index shrank 16.4 per cent due to the economic slowdown as Thailand’s production capacity utilization stayed low at 59.7 per cent.

Additionally, the business confidence index edged down to 39.2 from 40 points in March because of concerns over the political and economic uncertainties.

She said the shrinkage in the country’s gross domestic product (GDP) of 7.1 per cent in the first quarter of this year announced by the National Economic and Social Development Board is a further contraction from the fourth quarter last year.

Still, economic indicators had picked up on a monthly basis. Even so, the central bank remained uncertain whether the economic recovery could gain momentum. It needed to monitor internal and external factors for a while.

April also saw private-sector loans increase by Bt29.4 billion after contracting for three consecutive months. Most are consumer loans and credit facilities extended by state-owned banks after the government had accelerated lending.

Exports totalled US$10.28 billion, down 25.2 per cent, while imports amounted to $9.66 billion, down 36.4 per cent, resulting in a trade surplus of $619 million.

Regarding a call by exporters for making the baht weaken further to help, Mrs. Amara said BoT had currently supervised the baht value to ensure it moves in line with the economic trend.

The general inflation rate in April edged down by 0.9 per cent while the core inflation stayed at 1 per cent.

She said the Bank of Thailand was unwooried about a surge in oil prices to $60 dollar per barrel because in July 2008 the oil prices skyrocketed to $140 per barrel. (TNA)

REF:ENEWS.MCOT.NET

Kasikorn Research sees Thai economy contracting 5.6-7% in second quarter 2009

2009-05-30T02:17:00.000-07:00

BANGKOK, May 30 (TNA) - The Kasikorn Research Centre predicts that Thailand’s economy will contract 5.6-7 per cent during the second quarter of 2009.

The Kasikorn Bank (K-bank) think-tank projection is a slight improvement from the contraction of 7.1 per cent in the gross domestic product (GDP) during this year’s first quarter announced by the National Economic and Social Development Board (NESDB) earlier this week.

The K-bank Centre said positive signs appeared in some economic indicator categories after the first quarter this year, especially government spending to stimulate the domestic economy, higher production and increased spending by the private sector.
These positive factors are expected to stimulate the economy, but they must be evaluated cautiously whether they could help recover economy in the latter stage, according to the Centre.

Thailand’s domestic political unrest in conjunction with low confidence in the national economy and uncertainty regarding the timetable of its recovery are major factors that must be closely monitored, Kasikorn added. (TNA)

REF:TNA

Siemens strengthens commitment to Thailand’s mass transit development

2009-05-30T02:07:00.000-07:00

Today Siemens Limited Thailand, a world leading international suppliers of railway solutions and logistic systems, underlines its commitment to the Thai government’s mass transit expansion and development plan with its readiness to transfer technologies and know how in the rail transportation sector as well as to support Bangkok to explore possibilities to become a world class transit oriented metropolis of the 21st century by 2050 according to a recent Siemens-sponsored study released by ITS Infrastructure and Transportation Systems Consultancy Ltd., Hong Kong, and Albert Speer & Partners (AS&P), Architects, Planners, Frankfurt/Main, Germany.

The reiteration of Siemens’ commitment was given at the 2nd Thai-German Joint Economic Committee Meeting in Berlin between Deputy Prime Minister Korbsak Sabhavasu and German Economic Minister Karl-Theodor zu Guttenberg in early May on the bilateral economic co-operation and investment in Thailand.

“We strongly support and are fully committed to Thailand’s sustainability development and the government’s plan through world class technology transfer, particularly in the field of rail transportation”, said Mr. Anthony Chay, President & CEO of Siemens Ltd. Thailand.

Siemens’ commitment towards technology transfer to the country includes 1) the Bangkok 21 project initiative launched jointly with the German Technical Cooperation (GTZ) and the King Mongkut Institute of Technology Lat Krabang (KMITL) to outline a roadmap to transform Bangkok into a world-class, transit-oriented metropolis like New York and Paris, 2) the formation of the German-Thai Engineering Technology Alliance, and 3) local rolling stock assembly possibilities.

One core value of Siemens is a strong commitment to good corporate citizenship; the company actively manages the social responsibility and environmental impact of its activities. Siemens today reaffirms the long term commitment and contribution to Thailand’s education as a responsible corporate citizen by transferring technologies in a sustainable manner via the German-Thai Engineering Technology Alliance (G-TETA), a partnership of RWTH Aachen University, the Thai-German Institute and Siemens. This involves the set-up of a Master Course in Mass Transport Engineering in the country at The Sirindhorn International Thai-German Graduate School of Engineering (TGGS), which is an already existing joint venture between RWTH Aachen and King Mongkut’s University of Technology North Bangkok to provide engineering education in Thailand for over seven years now.

“We would like to fulfill the government’s intention of not just buying foreign technology, but also to develop local know-how and competency. Hence, Siemens is willing to continuously foster local engineers in order to contribute eventually to the development of the mass transit industry and the country”, expressed Mr. Chay.

As a German firm, Siemens Ltd. Thailand, a reliable partner of Thailand’s railway industry for over 15 years, is very keen to continuously support and contribute to the country’s much needed integrated mass transit infrastructure that plays a vital role in the overall economic development.

Mr. Chay added that Siemens was ready to vie for Bangkok’s future mass transit projects and is looking forward to an opportunity to provide state-of-the-art solutions to further develop the network for Bangkok commuters. With the worldwide experience, and particularly with the experience from the successful projects in Bangkok BTS, the metro and the ongoing Airport Rail Link project, Siemens’ proven project implementation and highest standards of system performance demonstrate clearly the capability to deliver excellent performance that have outstanding safety and reliability records. Furthermore, with the well established local expertise, well trained resources and excellent proven partners, Siemens will be able to supply the new mass transit system in the capital in the fastest and most cost-efficient manner.

“We are confident that we will be able to make the best competitive offer. One of our strengths and differentiation to other suppliers is that we have the largest local project management set-up, covering more than 600 employees with engineering and service capabilities – a large pool of which we have continuously built up since 1995”, underscored Siemens’ CEO.

News Source:Siemens

REF:Thaipr.net

First Niagara among the first banks to repay TARP proceeds

2009-05-29T08:09:00.000-07:00

"Stress Tests" confirm that First Niagara capital level would remain strong under extreme economic conditions

First Niagara Financial Group, Inc. is one of the first financial institutions to redeem its non-voting senior preferred stock that was sold to the Department of Treasury under its Capital Purchase Program (CPP).

First Niagara management also reaffirmed its belief that the Company is well positioned to withstand extreme and unprecedented economic conditions, based on even more severe economic assumptions than those used by the Federal Reserve Board in last month's Supervisory Capital Assessment Program (SCAP) "stress tests" of the nation's largest banks.

First Niagara has redeemed all $184 million received from the preferred stock purchased by the U.S. Treasury Department under the Troubled Asset Relief Program (TARP). As a result of the redemption, First Niagara will record an accelerated discount accretion of $7.7 million related to the difference between the amount at which the preferred stock sale was initially recorded and its redemption price. This accelerated accretion, together with the final preferred stock dividend, will reduce the Company's second quarter diluted earnings per share by $0.07. The Company also intends to negotiate with the Treasury for the repurchase of the warrant for 953 thousand common shares issued under the program. The repurchase of this warrant is not expected to have an impact on earnings per share. The number of shares available to the Treasury under the warrant was reduced by one-half due to First Niagara's successful April follow-on stock offering.

During their seven-month investment in First Niagara, the government earned more than $4.8 million in preferred stock dividends, exclusive of any value it may realize related to the repurchase of the warrant by First Niagara.

"Our first quarter loan production increased by 8% over the same period a year ago as we continued to leverage the federal capital to make commercial and consumer credit readily available in the communities where we do business," President and CEO John R. Koelmel said. "When market conditions improved, we replaced the government's investment with private investors' capital, following the blueprint laid out by the Treasury when they created the Capital Purchase Program."

First Niagara was one of the first publicly traded financial institutions to launch a follow-on stock offering in 2009, raising $380.4 million in April from private investors, or twice the amount required to repay the federal government. This followed the Company's successful $115 million follow-on stock offering in October 2008, leaving the Company in a stronger capital position than that which existed prior to the government investment in November.

First Niagara's abundant capital position not only allows it to capitalize on growth opportunities, such as its previously announced acquisition of 57 Western Pennsylvania branches and $4.2 billion in deposits from National City Bank, but to also withstand the effects of this unprecedented downturn in the economy.

First Niagara's strength was also confirmed by the results of its own internal stress test using assumptions more severe than the scenario provided in the Federal Reserve's recent SCAP review of the 19 largest U.S. bank holding companies. Even under these extreme economic conditions, with loan losses over 20 times current levels, First Niagara's stress testing revealed it would maintain a Tier 1 Common Capital ratio well above the anticipated regulatory level of 4.0%. These results included the impact of redeeming CPP proceeds and September's expected Western Pennsylvania branch acquisition closing.

In addition, at least two analysts have recently published independent stress tests on First Niagara, leading them to draw equally favorable conclusions about the Company's very solid capital position.

"By any measure, we're a clear winner and we pass with flying colors," Koelmel said. "Even under credit-deterioration scenarios that are more extreme than those contemplated by the Fed's SCAP, we believe First Niagara's capital would remain well above regulatory guidelines and our ratios would remain very solid. Our internal stress test allows us to confidently reaffirm that we believe First Niagara has ample capital to drive profitable growth, organically and through acquisitions, and weather an even more severe economic storm, should it unfold."

--www.theasianbanker.com (May 29 2009)--

News Source:Asian Banker

REF:Thaipr.net

Economic Activity In Europe Likely To Remain Subdued Until The Second Half Of 2010, Says Report

2009-05-29T08:07:00.000-07:00

Despite mounting evidence that the first quarter of 2009 may prove to be the low point of the current economic slowdown in Europe, it would be unwise to expect anything like a strong upturn says a report titled "European Economic Outlook: The Long, Slow Climb From Recession Begins," published yesterday by Standard & Poor's.

"These early signs of recovery should be treated with caution," said Jean-Michel Six, Standard & Poor's chief economist for Europe. "In our opinion, they suggest that the destocking phase in the corporate sector is approaching an end, allowing production and demand to be better aligned in the coming quarters. That, and a slight improvement in orders from emerging markets, would set the stage for a return to modestly positive GDP growth later this year."

"We anticipate that growth in the next few quarters will edge upward, but will likely be followed by an extended period of well-below-trend growth through the end of 2010. This is because the forces acting against consumer spending remain substantial, namely the increasing pace of job shedding, continuing losses in household wealth, and the stabilization in consumer price inflation now that commodity prices have stabilized."

Balancing these negatives is the increasing level of monetary and fiscal policy support. As the report points out, central banks have been particularly active in their efforts to address the current crisis from its start in August 2007. Their fire-fighting has become even more spectacular since the collapse of Lehman Brothers in September of last year. This is because the resulting freeze-up in the financial markets made it even more necessary for central banks to act as lenders of first resort, as illustrated by the massive increase in their balance sheets. Last September, the U.S. Federal Reserve's total balance sheet was approximately $900 billion, or 6% of U.S. GDP. At the end of December, it had mushroomed to $2,300 billion (16% of GDP) on the back of a massive increase in lending to the financial sector. Over the same period, the European Central Bank's balance sheet rose to 23% of (Eurozone) GDP from 15% of GDP. In the first quarter of 2009, however, the Federal Reserve's total assets declined to 15% of GDP and those of the ECB to 20%. This decline could be an early sign that demand for short-term liquidities from the financial sectors in the U.S. and Europe is no longer as strong because interbank lending is resuming.

The release of actual first-quarter GDP numbers for 2009 lead us to trim back, for the second month running, our annual average forecasts for GDP growth for this year and, in some instances, 2010. We have slightly cut our Eurozone GDP estimate for this year to negative 4.2% (from negative 4.0% in April). Similarly, we now anticipate that German GDP will decline by 5.0% this year (from negative 4.5% last month) and bounce back to 0.6% next year (unchanged). We estimate that French GDP will decline 2.9% this year (2.5%) and bounce back to 0.5% next year (0.8%). Finally, our forecast for Ireland is scaled back to negative 7.7% this year (6.5%) and negative 1.5% next year (unchanged).

The report is available to RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; select Ratings in the left navigation bar, then Find a Rating. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4011.

Media Contact:
Mimi Barker, New York (1) 212-438-5054, mimi_barker@standardandpoors.com

Analyst Contacts:
Jean-Michel Six, Paris (33)-1-44-20-67-05

News Source : Standard & Poor's

REF:Thaipr.net

TMB Bank announces lending rate cut to support businesses to lower borrowing costs

2009-05-29T08:04:00.000-07:00

TMB Bank Pcl, today announced a lending rate cut for minimum overdraft rate and minimum retail rate of a quarter of one percentage point effective from 29 May 2009.

TMB Bank Chief Executive Officer Mr. Boontuck Wungcharoen said the bank has lowered its minimum overdraft rate and minimum retail rate by 0.25%, bringing its minimum overdraft rate to 6.50% and minimum retail rate to 6.75%.

“The reduction in lending rate is aimed at helping businesses, especially SMEs to lower their borrowing costs. TMB had lowered its minimum loan rate to 6.25% in late March this year and is among the first commercial banks in Thailand to lower minimum loan rate in response to the Bank of Thailand’s policy to help stimulate the economy. Our minimum loan rate is currently stay competitive when compared with other commercial banks with similar size,” said Mr. Boontuck.

News Source :TMB Bank

REF : Thaipr.net

COMMONWEALTH BANK OF AUSTRALIA REOPENS THAI BAHT BOND MARKET FOR FOREIGN ISSUERS

2009-05-29T08:02:00.000-07:00

Commonwealth Bank of Australia (CBA), one of the leading banks in Australia, has successfully completed the book-building exercise for its debut Thai Baht bonds – THB 4 billion (USD 116 million) with tenor of 4- and 7-years. HSBC is the Sole Bookrunner and Sole Lead Manager of this transaction. The success of this transaction demonstrates CBA’s strength as an issuer and HSBC's strong global debt capital markets platform in assisting its clients to successfully reach new emerging local currency bond market.

CBA (Aa1/ AA/ AA by Moody’s/ S&P/ Fitch) is one of two foreign issuers which obtained permission from the Thai Ministry of Finance to issue Baht-denominated bonds in the February 2009 round of approvals.

With CBA’s strong credit and solid financial position, its debut Thai Baht bonds were well-received by investors who are looking for high quality credit paper. The bonds were split equally into 2 tranches: 4-year and 7-year tenors with an issue amount of Thai Baht 2.0 billion each. The coupons for the 4-year and 7-year tranches were 3.93% pa and 4.80% pa, respectively, implying spreads of 140 bps and 158 bps over comparable government yields on the bookbuilding dates. Those spreads were considered to be very tight.

CBA’s bonds not only mark the first issue by an Australian issuer into the Thai Baht bond market, but also reopened it for foreign issuers after it shut down in September 2008 as a result of the global financial crisis. "We are delighted with this transaction for a number of reasons. It's great to be the first Australian issuer to access the Thai Baht bond market. Very importantly, it has broadened our investor base and provided a competitive cost of funds without the support of the Australian Government guarantee", said John te Wechel, General Manager – Group Funding, Commonwealth Bank of Australia.

Media enquiries to:
The Commonwealth Bank of Australia HSBC
Australia
John te Wechel Tel: +612-9118-1335 Australia
Andrew Duncan Tel: +612-9255-2345
Kate Epworth Tel: +612-9006-5682

Hong Kong
Alexander Hayes-Griffin Tel: +852-822-4506
Sean Henderson Tel: +852-2822-3071
Annie Cheng Tel: +852-2822-4938

Thailand
Prakob Phiencharoen Tel: +662-614-4869
Salinla Seehapan Tel: +662-614-4608

Media enquiries to Varanandha Sutthapreeda on 0-2614-4609 or Savittree Muadmuang on 0-2614-4606.

Notes to editors:

1. HSBC in Thailand
HSBC was established as the first commercial bank in Thailand in 1888. With access to global expertise and enriched local knowledge, HSBC in Thailand provides a full range of financial services including global, commercial and institutional banking, global markets, securities services, trade and supply chain, payment and cash management services to corporate customers; personal financial services and credit cards to a growing retail customer base in Thailand. HSBC is globally recognised for its high service standards, ethical practices and full commitment to corporate social responsibilities to benefit the local economy.

2. HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,527 billion at 31 December 2008, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank’.

REF:Thaipr.net

Mice operators facing rivals

2009-03-05T20:50:00.000-08:00

News Source : www.bangkokpost.com
By: CHADAMAS CHINMANEEVONG
Published: 2/03/2009 at 12:00 AM

Thailand is facing new challenges as a Mice destination from Macau and Korea, which are emerging strongly in the Asian market for meetings, incentives, conventions and exhibitions.

The Thailand booth at the AIMC in Melbourne had a fairly low-key presence compared with those of some rival destinations.
Local Mice specialists started to see the signals two years ago but the trend became more obvious at the recent Asia Pacific Incentive & Meeting Expo 2009 (AIMC) in Melbourne. The Macau and Korea booths attracted not only Australians but worldwide visitors, particularly from Asia.

Malinee Kitaphanich, director for meetings and incentives with the Thailand Convention and Exhibition Bureau (TCEB), said that when the whole world faces the same situation, competition intensifies in every business, including the Mice market.

Many hotels in Thailand pin their hopes on Mice because the number of leisure tourists has fallen dramatically. The competition is not only local but international.

Ms Malinee said that this year, apart from conventional competitors such as Singapore, Hong Kong, and Malaysia, Macau and Korea were drawing attention with very new and interesting offerings.

For Macau, its US$25 billion worth of huge entertainment complexes and hotel-casinos are a big magnet, led by the Venetian from Las Vegas with nearly a million square metres. Korea has made huge strides marketing its image and culture through singers, movies and TV series.

However, Thailand remains committed to value for money, always an attractive selling point for many organisers, Ms Malinee said.

According to the Union of International Associations (UIA), Seoul held 121 international meetings in 2007 and ranked ninth worldwide. Singapore topped the global list at 465 - but Thailand was not in the top 10.

Ms Malinee said the country may lose some market share in Asia to Macau and Korea because many people want to experience something new.

Malinee: Value for money matters
However, she believes the trend will be temporary because novelty value wears off quickly.

In the meantime, she suggested Thai operators improve their products and services and create strong selling points to compete when the economy gets back to normal.

She is also confident that Thailand remains attractive in Europe where people are interested in culture. As well, room rates in Thailand are cheaper than in Macau and Korea. Meeting costs in Korea are twice Thailand's, she said.

One trend she notes is that groups coming to Thailand this year and next will be smaller - down from a minimum of 200 participants per group to only 50 - as hosts will be careful in selecting participants to save costs.

"Events from China, Japan, the United States, and some countries in Europe would disappear but we will not give up. We must keep launching campaigns, waiting for the economy to recover," she said.

TAT passes Elite Card ball back to cabinet to decide

2009-03-05T20:45:00.000-08:00

News Source : www.bangkokpost.com
By: CHATRUDEE THEPARAT
Published: 19/02/2009 at 12:00 AM

The Tourism Authority of Thailand board is reluctant to make a final decision on the fate of the troubled Elite Card programme, saying the cabinet should have the final say.

"As the project was born from politics, its fate should also be decided by politics," board chairman Weerasak Kohsurat, himself a former Tourism and Sports minister, said yesterday.

Mr Weerasak said the TAT would propose choices based on a recent study of Thailand Privilege Card Co (TPC), which operates the Elite Card programme for wealthy tourists and investors.

According to the study, the government would need to pay 2.43 billion baht in compensation to 2,570 Elite Card members and clear outstanding debts if TPC is wound up.

Alternatively, TPC would require a major business overhaul to increase income and control costs if it is allowed to stay in business.

Another solution would be to allow the private sector to take up to a 49% stake in the state-owned company or sell out to the private sector.

Pending a cabinet ruling, the company would be ordered to suspend all new transactions including new membership and procurement, said Tourism and Sports Minister Chumpol Silpa-archa.

Thailand Elite Card was launched by former prime minister Thaksin Shinawatra in 2003 to attract wealthy tourists and businesspeople.

It promised fast-track immigration privileges, long-term property leases and discounts at luxury spas, golf courses and hotels. Mr Thaksin confidently predicted it would attract one million cardholders by 2008, but to date it has drawn just 2,570.

TPC posted accumulated losses of up to 1.14 billion baht as of 2006

PTTEP may cut investment by 10% on slowing demand

2009-03-05T20:41:00.000-08:00

By: YUTHANA PRAIWAN
Published: 5/03/2009 at 12:00 AM
News Source : www.bangkokpost.com

PTT Exploration and Production Plc (PTTEP) is considering cutting its investment budget this year by 10% to 87 billion baht in line with forecasts of falling oil prices and lower demand.

According to Asdakorn Limpiti, vice-president for strategy, the company will end exploration and operations in some high-cost fields, such as oil-sand and heavy-oil fields in Canada and Venezuela.

"In some countries we may raise our output through a merger and acquisition strategy - for instance, offshore fields in Australia," he said.

An average petroleum production cost of around US$60 per barrel compares with current market prices of only $40-45.

Mr Asdakorn said sizeable operators were expected to cease all activities in Mexico, Venezuela and Canada where costs top $70 per barrel.

"I think that Opec, whose output accounts for 30-35% of total oil supply, could recoup these losses around two years from now," he said.

"At present, it is putting its efforts into bringing oil prices back to the level where its producers can cover operating costs through reducing world oil supply. But it seems to be far from successful."

According to the company's internal study, oil demand will be back to normal next year, which could translate into higher prices. It suggested an appropriate price of between $50-80 a barrel.

PTTEP expects its oil and gas production this year to rise to 235,000 barrels of oil equivalent per day from 219,000 in 2008. About 70% of forecast total output would be natural gas. Additional output this year will come from the new Block B17 in the Thailand-Malaysia Joint Development Area, where proven gas reserves are about 270 million standard cubic feet per day.

Despite rising output PTTEP expects sales and profit to drop due to low prices.

PTTEP shares closed yesterday on the SET at 84 baht, up one baht, in trade worth 720.88 million baht.

Thai-Lao train service launched

2009-03-05T20:37:00.000-08:00

By: NAOWARAT SUKSAMRAN
Published: 6/03/2009 at 05:46 AM
News Source : www.bangkokpost.com

NONG KHAI: Her Royal Highness Princess Maha Chakri Sirindhorn stepped aboard the train yesterday to become the first passenger on the rail service linking Thailand and Laos.

The Princess rang the departure bell at Nong Khai station at 9.30am and the train pulled out to begin its maiden journey across the Thai-Lao Friendship Bridge over the Mekong river, arriving at Thanaleng in Laos at 10am.

The Princess was joined on the journey by Prime Minister Abhisit Vejjajiva, cabinet ministers and senior State Railway of Thailand staff. Lao Vice President Bounnhang Vorachit and Public Works and Transport Minister Sommad Pholsena greeted the Princess at Nong Khai and joined her on the train.

About 10,000 Thais and Lao witnessed the launch of the service.

Tracks across the Friendship Bridge

The 3.5km line is the first phase of a rail link between the two countries. The Thai government has given Laos a soft loan and a 197-million-baht grant to build the railway from the middle of the bridge, joining the track on the Thai side which has been in place since 1994, to Thanaleng. Construction began in October 2006 and was completed in April last year.

Porn Suriyawong, 79, a Thai-Lao who settled in Nong Khai and donated five rai for the rail link project, said she was delighted to see the Princess and to join her on the rail trip.

"From now on, we will have a new transport route which is more convenient," she said. "I'm glad the rail link facilitates the transport of Thai and Lao people. It will help people from the two neighbouring countries get closer."

She recalled that when she was about 14 years old, she and her vendor friends ferried goods from Thailand across the Mekong by boat to sell them in Laos.
They had to hawk the goods all day in order to sell everything. At night, they stayed with relatives in Laos before taking a boat back to Thailand the following day.

"Our trips took time in the past as there was no public transport.

"There were only ferry boats. Since the Friendship Bridge was built, life is more comfortable as vehicles cross the border. Now, we have train services," Mrs Porn said.

Thongkaew Piewbang, 62, a native of Nong Khai, said she woke up at 6am to welcome the Princess and buy train tickets for her and her husband to take the first train to Laos.

"We have been waiting a long time for this train service. We wanted to ride this train to join the others on its maiden voyage," said Mrs Thongkaew, one of many passengers who formed a long queue to buy rail tickets.

A 9km link is to be built from Thanaleng to Vientiane.

The fare on an air-conditioned passenger train is 50 baht per trip, 30 baht on a second-class train and 20 baht for a third-class seat. Passengers wanting to cross the border to Laos must show a border pass or passport to officials.

Princess Sirindhorn today will preside over a stone-laying ceremony for the third Thai-Lao Friendship Bridge linking the northeastern province of Nakhon Phanom with Laos's Thakhek.

EARLIER REPORT By BangkokPost.com

The first railway line connecting Thailand and Laos was officially opened on Thursday, aiming to boost tourism and trade.

Princess Maha Chakri Sirindhorn presided over the opening ceremony of the 3.5km track connecting Nong Khai Province and Thanaleng station in Laos.

After the ceremony, she boarded a Laos-bound service across the Mekong river as the first passenger.

Prime Minister Abhisit Vejjajiva and Lao Deputy Prime Minister Boonyoung Worlajit also attended the ceremony.

State Railway of Thailand (SRT) governor Yutthana Thapcharoen said about 500 passengers were expected to use the train each day once it begins regular passenger services.

The train will make four round trips a day over the Mekong river. A third-class ticket will cost 20 baht and second-class 80 baht, he said.

If citizens from either country do not have a passport to present for a visa, they will be able to ask checkpoint officials for a temporary border pass, he said.

The SRT and Laos have agreed to extend the rail service from Thanaleng to Vientiane, 25km away, in the near future, the governor added.

The railway was financed by Thailand with total funding of 197 million baht (about US$5.4 million).

The second phase is expected to cost about one million baht.

Laos imports consumer products and construction materials from Thailand while it exports agricultural products and timber to Thailand

Thai Cabinet agrees to borrow B270 bln to support govt measures and projects

2009-02-04T23:03:00.000-08:00

The Cabinet on Tuesday gave an approval to Finance Ministry’s plan to borrow about 270 billion baht to support the state enterprises and to finance government’s initiatives to stimulate the economy.

Finance Minister Korn Chatikavanij told the press that an estimate of 200 billion baht will be short-term loans, up to the period of three years, from domestic commercial banks and state financial institutions to help the state enterprises which need funds for their projects or to refinance existing loans.

The other 70 billion baht, he said, will be sought from international institutions, such as the World Bank (WB), the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), for up to 10 years of repaymnent period at the interest rates between 2.38-3.70 percent per annum, which would still be much lower that the loans from domestic financial institutions.

The loans of up to 70 billion baht will be used for the activities of state-controlled financial institutions in order to support government stimulus measures, especially as loans to exporters, small and medium businesses and real estate sector, and to finance government’s infrastructure projects, mainly aimed at increasing the country’s competitiveness and productivity during the next three years.

Korn however said the government’s plan to borrow 200 billion baht in short-term loans will not increase the country’s public debt since the loans would be used for refinancing debts incurred by state enterprises and from four major domestic banks — Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Kasikorn Bank.

Meanwhile, Pongpanu Svetarundra, director-general of the Finance Ministry’s Public Debt Management Office (PDMO), revealed that Thailand’s public debt now stands at about 3.4 trillion baht, which is equivalent to about 37 percent of the country’s gross domestic product (GDP).

He said the public debt at the end of the current fiscal year on September 30, 2009, is estimated to rise to 3.9 trillion baht following the planned loans, which would still be lower than 41 percent of the country’s GDP.

Business News :REF ->www.thailandobservers.com

Scotiabank increases stake in Thanachart Bank to 49% limit

2009-02-04T22:51:00.000-08:00

Canada’s Scotiabank yesterday announced it has completed the acquisition of an additional 24 percent of stake in Thanachart Bank, Thailand’s eighth-largest bank and leading automobile lender, for 7.7 billion baht (about C$268 million), increasing its stake to 49 percent as limited for foreign banks in Thailand.

Scotiabank, the trademark of the Bank of Nova Scotia which is Canada’s second largest bank by assets, said in its statement that it would purchase a total of 416 million shares in Thanachart Bank from Thanachart Capital Plc, which is the major shareholder of Thanachart Bank.

Thanachart Bank, Thailand’s eighth-largest bank and leading automobile lender, and its subsidiaries posted a net income of about 1.87 billion baht, or about C$67 million, during the past year, an increase of about 40.9 percent from the previous year.

Rob Pitfield, head of Scotiabank’s International Banking Group, said in a statement that the Thai market has “solid fundamentals with good long-term growth prospects” and Scotiabank’s increased investment in Thanachart Bank is a great opportunity for the Canadian bank to capitalize on the strength of the Thai market.

The statement also said the higher stake in Thanachart Bank will increase the number of Scotiabank representatives on Thanachart Bank’s 10-member board of directors from two to three.

Meanwhile, Suphadej Poonpipat, chairman of Thanachart Bank’s executive committee and chief executive officer, said, “Through this investment, Scotiabank has re-affirmed its commitment to supporting Thanachart Bank’s growth and development initiatives. The partnership between Thanachart Bank and Scotiabank leverages the strengths of both of our institutions and is strengthened by our shared commitment to the exciting potential of Thailand.”

Business News :REF ->www.thailandobservers.com

Thai exports projected to grow 0-3% this year

2009-02-01T23:11:00.000-08:00

BANGKOK, Feb 2 (TNA) - Thailand's commerce inister said the country's exports are projected to grow by 0-3 per cent this year despite the slowdown in the global economy, a senior official of the Commerce Ministry said on Monday.

Director-General Rachane Pojanasunthorn of the Department of Export Promotion (DEP), said the ministry is proposing a comprehensive effort to both the government and the private sector to launch sustained efforts to boost confidence in the country's economy.

Proposed measures to be taken include boosting exports to emerging markets such as China, India, Russia and neighbouring countries as well as conventional markets, participation in international trade fairs and working with the private sector on cutting logistics costs.

The senior official projected the export figures in the first quarter of 2009 as gloomy, but said they are likely to improve in the remainder of the year thanks to the implementation of economic stimulus packages in other countries.

The DEP director-general said the planned Japan road show to be led by Prime Minister Abhisit Vejjajiva and his joint public-private trade delegation between February 5-7 is expected to help boost confidence in Japan following two years of political turmoil in Thailand.

Mr. Rashane said Thai export to Japan in 2009 is projected to grow by 3 per cent, a decline from 10.88 per cent last year with the value of export $20,900 million.

Thai-Japanese trade last year totalled $53 billion, with Thai exports to Japan totalled $20 billion, up 10.88 per cent from the comparable period of 2007, while Thai imports from Japan totalled $33 billion, up 18 per cent from the same period of the previous year. (TNA)

Business News : REF ->ENEWS.MCOT.CO.TH

Thai economy clearly slows down but should pick up in Q3

2009-02-01T23:08:00.000-08:00

The Fiscal Policy Office (FPO) yesterday said the economy in December and the entire fourth quarter of last year showed several signs of significant slowdown.

However, the Center for Economic and Business Forecasting (CEBF), University of Thai Chamber of Commerce, today projected that it is expected to turn around in this year’s third quarter.

Dr.Somchai Sajjapongse, director-general of the FPO, said the country’s export in the fourth quarter had contracted for the first time in seven years by 10.6 percent from the previous year to US$38.7 billion, mainly due to the slowdowns in economy among Thailand’s major trading partners and the additional impact from the temporary airport closures which hindered export of goods.

Private consumption in the quarter also continued to slow down as consumption indicator from real-term value-added tax collection grew only about 0.1 percent from the same period of the previous year, compared with 16.1 percent in the third quarter.

Private investment in the quarter weakened while the country’s real estate sector slowed down in line with lower demand, seeing real-estate tax collection in the quarter contracted by 5.6 percent over year and the 22.2 percent growth in the third quarter.

Fiscal indicators showed that net government revenue collection in the quarter, which is the first quarter of Thailand’s fiscal year 2009, was about 272.8 billion baht, down 16.1 percent from the same period in 2007, partly from the slowdown in domestic economy and the impact from excise tax reduction for gasoline as one of the then government’s economic stimulus measures.

Income-based tax grew merely 0.3 percent over the same period of 2007, from 17.4 percent growth in the third quarter, reflecting weaker performance in business sector as well as the lowering income from the economic slowdown.

The government expenditures in the quarter amounted to 404.3 billion baht, expanding from the same period of the previous year by only 2.8 percent due to the low level of budget disbursement in October 2008 as a result from the delayed implementation of fiscal year 2009 budget act.

Meanwhile, Dr.Thanavath Phonvichai, CEBF director, said the country’s economy is likely to shrink by 3-4 percent in the first quarter of this year and around 0-1 percent in the second quarter.

He said the government’s fiscal policy to inject funds into the economy amounting to 300 billion baht through both the central budget and tax measures should help turn around the economy in the third quarter of this year.

The economy will begin to recover in the third quarter of this year with a growth of about 1-2 percent and then grow 3-4 per cent in the fourth quarter, helping this year’s economy to expand 0-2 percent.

However, he said, key factors needing to be closely monitored will include world economic recovery, domestic political uncertainties, 2010 budget deliberation and oil price volatilities.

In addition, Prime Minister Abhisit Vejjajiva’s plan to organise present roadshows in many countries could help restore foreign investor confidence in Thailand while the US Congress’ approval of the US$800 billion economic stimulus package would help improve the overall global economy including the Thai economy, he added.

Business News : REF ->http://www.thailandobservers.com/

Suvarnabhumi ready to welcome back domestic flights on Mar 29

2009-02-01T23:05:00.000-08:00

Suvarnabhumi Airport is ready to welcome domestic flights back from Don Mueang Airport, beginning from March 29.

Serirat Prasutanond, acting president of the state-controlled Airports of Thailand Plc (AoT) which operates six international airports in Thailand, yesterday said many airlines, including the national flag carrier Thai Airways International (THAI), have agreed to move their services back to Suvarnabhumi airport from March 29 onward.

Serirat, also a director of Suvarnabhumi airport, said some airlines, which still disagree to the government plan to relocate all domestic flights to Suvarnabhumi, will be persuaded to move back and explained about the advantages of the relocation, saying that Suvarnabhumi is not as congested as some airline operators might have thought.

He disclosed that, according to the government’s single airport policy, Suvarnabhumi will handle both domestic and international flights while Don Mueang will be reserved only for chartered flights and will soon become an aviation maintenance centre.

During the Chinese New Year festival, Suvarnabhumi airport has welcomed about 100,000 passengers daily as an additional 165 flights from 21 local and international airlines have been operating during the period from January 24 to February 5, however the global economic slowdown has severely affected the chartered flight business to drop as much as 50 percent.

In September 2006, Don Mueang airport had been closed to scheduled flights with the opening of Suvarnabhumi airport but later was reopened on March 25, 2007, to relieve congestion at Suvarnabhumi and allow construction flaws at the new airport to be repaired.

At present, some THAI domestic flights and all domestic flights of Nok Air and One-Two-Go operate out of Don Mueang.

Recently, acting THAI president Narongsak Sangapong said the relocation of THAI flights from Don Mueang to Suvarnabhumi would coincide with the start of the summer flight schedule and is expected to help the airline be able to cut certain operation costs, especially its management costs and duplication of activities at both airports at the same time.

However, Patee Sarasin, chief executive officer of Nok Air – which operates flights to 16 destinations within Thailand, recently told reporters that the budget airline had accepted the single airport policy but it needed time to prepare for the relocation to Suvarnabhumi, possibly for the period of one year or until the second phase construction of Suvarnabhumi.

Patee said he personally disagreed with the relocation plan, saying the relocation would cost each airline 10 to 20 million baht, as the low-cost airline had already borne the relocation cost twice, from moving from Don Mueang to Suvarnabhumi and then from moving from Suvarnabhumi back to Don Mueang in 2007.

Meanwhile, Udom Tantiprasongchai, chairman of One-Two-Go Airlines which operates daily flights to three major destinations of Chiang Mai, Hat Yai and Phuket, also said he would rather see the airlines have a choice of not moving to Suvarnabhumi.

Udom said he doubted that Suvarnabhumi had sufficient space to accommodate the airline and complained that the changes in top-level policies would adversely affected airlines.

Business News : REF ->http://www.thailandobservers.com/

Honda exports over B104 bln products from Thailand in 2008

2009-02-01T23:01:00.000-08:00

Asian Honda Motor has last year exported more than 104.58 billion baht of automobile and motorcycle products from Thailand, up four percent from 2007.

The Bangkok-based Asia and Oceania regional headquarters of Honda Motor today reported that the exports include some 65 billion baht of completely built-up (CBU) and completely knocked down (CKD) cars, accounting for 62 percent of the total export value, more than 23.88 billion baht of CBU and CKD motorcycles, 23 percent of the total export value, nearly 10.13 billion baht of power products, 10 percent of the total value, and some 5.48 billion baht of spare parts, accessories and dies and molds.

Fumihiko Ike, president and chief executive officer of Asian Honda Motor, said in a statement that Honda has so far exported a total of more than 555 billion baht of various products from Thailand, but the global economic crisis has led to a decline in the company’s exports since late last year.
He said, “Export growth has slowed down since the third quarter last year due to the global financial crisis which has affected the entire world. In the fourth quarter, automobile and power products export value faced a decrease while motorcycle export value remained little changed. The export value of Honda products in the fourth quarter dropped 12 percent over the same period in 2007. However, the annual export value of Honda’s products in 2008 is four percent higher than 2007.”
According to the company’s statement, the total value of Honda’s automobile CBU and CKD exports remained stable last year, with an increase of about 13 percent in CKD exports to 26,031 million baht due to the start-up of production of new models such as the Jazz in Brazil and the City in India and a drop of six percent of the CBU exports to 39,060 million baht.

For automobile CBUs, it said, Honda continues to export five models, namely the City, Jazz, Civic, Accord and CR-V, to over 30 countries worldwide and the CBU exports were 72,497 units last year.

Meanwhile, the total value of Honda’s motorcycle CBU and CKD exports in 2008 increased by ten percent to 23,881 million baht, with the exports of motorcycle CKD units, including part kits, rose 14 percent to 22,298 million baht while the motorcycle CBU exports fell 22 percent to 1,584 million baht.
On the company’s power products, for which Thailand is the primary global production and export base in exporting to over 80 countries around the world, the exports in 2008 dropped two percent as a result of the global financial crisis affecting the general market, especially Honda’s key markets in Europe and the United States.

Business News : REF ->http://www.thailandobservers.com/

SET appoints Veerathai as new chief strategy officer

2009-02-01T22:56:00.000-08:00

The Stock Exchange of Thailand (SET) has appointed Dr.Veerathai Santiprabhob as new chief strategy officer, as well as the executive director of its Capital Market Research Institute, from January 26 onward.

The Thai bourse yesterday announced that Dr.Veerathai, former executive vice president for strategic planning at Siam Commercial Bank (SCB) — Thailand’s third largest bank, will be in charge of Corporate Strategy and Development Division of the Thai bourse, overseeing business policies for SET and developing strategic plans.

He will also head the Capital Market Research Institute, which will support the works of the Capital Market Development Committee toward the development of SET to become a key player in Thailand’s capital market development.
After receiving both Master’s and Doctor’s degrees in economics from Harvard University, Dr.Veerathai returned to Thailand to start his career as an economist at the International Monetary Fund (IMF) for one year before returning to his homeland and joined the Ministry of Finance.

At the ministry, he finally became the co-director of Policy Research Institute, the Fiscal Policy Office, before joining the Siam Commercial Bank in 2000.

Dr.Veerathai graduated from Thammasat University in Bangkok with first-class honours in economics when he was only 18.5 years old and received a scholarship from Anandhamahidol Foundation to pursue his study at Harvard, and finally received the doctor of philosophy in economics in 1994 while he was 24 years olds.

Business News : REF ->http://www.thailandobservers.com/

Economy continues to shrink, says Thai central Bank

2009-02-01T22:50:00.000-08:00

BANGKOK, Jan 31 (TNA) - The Thai economy is projected to experience a slower growth of only 3-3.5 per cent in 2008, dampened by a continued economic plunge in the fourth quarter, according to the Bank of Thailand.

Amara Sripayak, senior director of the bank's Local Economy Division, revealed on Friday the economy in the fourth quarter of last year is estimated to shrink by 0.5-2 per cent due to the global economic slowdown and local political uncertainties that impacted the industrial sector and tourism.

The industrial output index in December shrank to a record low of 18.8 per cent.

Amara said the gross domestic product (GDP) in the first quarter of this year is likely to contract 0.5 per cent or more compared with a growth of 6 per cent in the same period last year.

The central bank hoped the government would manage to accelerate disbursing 94 per cent of the budget and believed the easing of the strict monetary policy and the declined inflation would help stimulate the consumer and investor confidence.

Simultaneously, the clearer political direction would help boost the GDP growth in the first quarter of this year.

Regarding suggestions the BoT make the baht weaken to promote exports, he said, the central bank had currently overseen the baht to ensure it is stable and not volatile.

She said the export sector had contracted upon the continued global economic meltdown.

Also, it remained uncertain when the world economy would bottom out. It caused overseas purchase orders to decline. (TNA)

Business News : REF ->ENEWS.MCOT.CO.TH

Thailand to borrow Bt270 billion to boost economy

2009-02-01T22:47:00.000-08:00

BANGKOK, Jan 31 (TNA) - Thai Finance Minister Korn Chatikavanich said on Saturday he would seek Cabinet approval Tuesday for a plan to borrow Bt270 billion from domestic and international lending agencies in an attempt to stimulate the Thai economy amid the current global downturn.

The sum will be sought to bolster liquidity at state banks and firms so they could provide more funding and extend credit facilities for varied manufacturing and exporting sectors.

Of that sum, an estimated Bt70 billion will be borrowed from the Asian Development Bank, the Japan International Cooperation Agency (JICA) and the World Bank, the finance minister said.

The Bt270 billion loans will be injected into the country's economic mechanisms and add to the government's mid-year economic stimulus package which recently won approval in the first reading of the House of Representatives.

Eight state banks and financial institutes, including the Small and Medium Enterprise Development Bank of Thailand (SME Bank) and the Bank for Agriculture and Agricultural Cooperatives will be instructed to extend credit lines for their customers such as exporters and small- and medium-sized entrepreneurs.

The finance minister dampened fears that the government might be running out of cash to cover regular expenditures -- including the monthly payroll for government personnel nationwide, given an untapped sum of only about Bt52 billion currently left in the state coffers.

Mr. Korn said the government will collect a sizeable sum of revenue from corporate income tax around the middle of this year in addition to the sought-after loans. (TNA)

Business News : REF ->ENEWS.MCOT.CO.TH