Smaller Thai transport firms must upgrade to be ready for AEC

Thai transport operators should urgently improve their efficiency for inter-country transport service with neighboring countries under the framework of the ASEAN Economic Community, set to launch next year, a senior Thai official said.
Wattana Pattarachon, deputy director general of the Land Transport Department, said operators should study the regulations, laws and culture concerning land transport of other countries and find overseas partners for joint venture on inter-country routes.
He said 80 percent of major transport operators are prepared with technology and business partners while small- and medium-sized entrepreneurs have yet to improve their service.
Thailand and Laos are most ready for joint transport services as the two countries do not set transport quotas while Thailand and Cambodia allow 50 trucks to cross their common border each day, he said.
Thailand and Cambodia are negotiating to increase the quota to 500 trucks a day, he said, adding that Thailand and Myanmar would have to expand the transport service between both nations.
Malaysia has set a timeframe for fresh food from Thailand to the Malaysia-Singapore border, he said. (MCOT)

Brighter market in Europe for Thai palm oil

European rejection of palm oil from Malaysia and Indonesia due to environmental reasons has boosted Thailand’s potential to export the agricultural commodity, according to the Commerce Ministry.
Surasak Riangkrul, director general of the Foreign Trade Department, said European countries have become increasingly keen to import palm oil from Thailand due to the kingdom’s ecologically-standardized agricultural system and the country’s participation in the Roundtable on Sustainable Palm Oil (RSPO) organization.
RSPO, established in 2004, aims to promote the growth and use of certified sustainable oil palm products. Demand in Europe for palm oil in industrial applications is high.
Surasak said palm oil importing countries in Europe have become more aware of the environmental and sustainable production factors of palm oil, adding that six countries - Belgium, France, UK, the Netherlands, Sweden and Denmark - have announced a national commitment to import only sustainable palm oil by next year.
Germany recently issued a law which seeks to certify environmentally-friendly oil palm plantations - an imposition that has directly impacted Malaysia and Indonesia but will contribute to a higher market share for palm oil from Thailand, he said. (MCOT)

Thai bank paints positive picture for Thai economy

Kobsak Pootrakool, executive vice president of Bangkok Bank’s International Banking Group.

Thailand’s solid fundamentals will contribute to economic growth at 2-3 percent and export expansion at 5-7 percent this year, according to a leading Thai banker.
Kobsak Pootrakool, executive vice president of Bangkok Bank’s International Banking Group brushed aside a negative description of Thailand’s economy as a sick man, saying the Thai people’s purchasing power has dropped but not significantly.
People are always in the shopping mood but they have deferred purchases of major items such as cars and homes, he said.
He said the government’s cancellation of the state of emergency has spurred tourism after a number of countries lifted warnings against visiting Thailand.
The number of travelers via Suvarnabhumi airport, which suffered an 8-percent decline during the use of the emergency decree, has returned to normal while the formation of new Board of Investment members will help stimulate investment in the country, he said.
Kobsak said small- and medium-sized businesses have balanced themselves and moved on despite slight deficits while the Thai economy will surge back late this year unless the political crisis worsens.
If the political impasse is prolonged without violence, the Thai economy will grow about 1-2 percent, he said, adding that the economic situation will be worse than the 2010 Thai economic meltdown if the political turmoil escalates.
However, it is estimated that about Bt50 billion of funds in circulation will disappear from the Thai market this year given the suspensions of the Bt2 trillion investment on infrastructure development and the Bt350 billion water management project, he said. (MCOT)