BUSINESS NEWS

HEADLINES [click on headline to view story]:
National Police, NECTEC move on first ever cyber laws
 
No nude calendars please
 
Royal Ahold, Tesco deny reports on merger with Big C
 
Room rates brought up as tourists flood into Samui and Phuket
 
Minister forces reduction in hand phone fee
 
Seastar Properties

National Police, NECTEC move on first ever cyber laws

The National Police Force and National Electronics and Computer Technology Center have been in a big move towards new legislation aiming to prevent and to suppress computer-related crimes which have worried the industry. The two state organizations are preparing 6 drafts of the country’s first law of the kind to the Cabinet within 3 months.

A working committee comprising representatives from NPF, NECTEC, office of the Attorney General, courts and Ministry of Justice was recently set up to determine the terminology of ‘computer crime’ and acts of violation, aiming to protect users from hecklers and hi-tech thieves, among other things, said Pol Col Yarnpol Yangyuen of Division 3, NPF IT Center.

Some legislation is specially aimed to regulate registering of domain names and to protect those registered. Officials are working to see if new legislation could comply with international laws on computer and the Internet. Some legislation is specially designed to protect Internet-related businesses - transfers of money and administrative papers, for instance.

Rising violations over domain names worried both government, private and business organizations; a domain name will be as valuable as a land deed; storing data on other people’s hard disks without permission could be a crime.

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No nude calendars please

There will be very few nude calendars from spirits producers this year, as Mekong whisky, leader in nudity premiums in the past decade, maintains their policy to stop producing the widely arguable artistic premium this year and instead will give the budget to needy school students in the form of scholarships. Only a secondary brand of Scotch will offer a nude calendar to drinkers.

Mekong and Saengsom whiskies used to spend more than Baht 20 million a year in producing nude calendars, which they say helped make the whisky well known. Success in sales, however, depended on quality of the products, said Thanit Thannasukhati, corporate public relation manager for Surathip and Suramaharasdorn groups, distillers of the whiskies.

Price cuts have been seen as an alternative - most distributors recently slashed prices hoping to boost sales in the last two months of the year.

Only Blue Eagle Scotch by United Pacific Holding vows to offer a nude calendar this year, featuring hot shots of the country’s top sex model Champaign X, for every purchase of 2 bottles.

UPH said to have spent Baht10 million on nudity premium; Richmonde Bangkok extends low-priced campaign for Spey Royal to early next year; Royal Distiller (Thailand) follows by bringing down price of Clan MacGregor Scotch to Baht 30 a bottle; Suntory, Tumbler and a few others choose grand draws.

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Royal Ahold, Tesco deny reports on merger with Big C

Royal Ahold, owner of the Tops Supermarket chain, has come out and made matters clear saying that the group has no plan to merge or buy into the Big C discount store chain of Thailand’s Central group, reportedly in financial trouble for months. The Dutch retail group said it was not in line with the policy of the mother company to diversify into the discount store business.

Royal Ahold entered the retail industry in Thailand by forming CRC Ahold with Central Retail Corp in 1996. The company is stable, with the Tops Supermarket chain having expanded into provinces nationwide, and a huge distributing network having been set up. Though the Dutch mother company runs a variety of retail stores abroad, CRC Royal Ahold has no policy to expand into other business outside the supermarket segment, said the company’s president Tom Den Hertog.

Meanwhile, sources in Lotus Supercenter said British partner Tesco group would neither take over nor buy into the Big C discount store chain. Tesco group just wants to use Thailand as a springboard in the company’s expansion drive into this region, and Charoen Phokephand has been a fairly strong partner in this country.

Royal Ahold said diversifying is the matter of future; Tesco also eyes Korea and Taiwan but sees Thailand as the most attractive place for investments; industry sources said Tesco discouraged by high price in dealing with Big C.

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Room rates brought up as tourists flood into Samui and Phuket

The Tourism Authority of Thailand has received rising complaints about expensive rooms at hotels in Samui and Phuket, while several tour agents have planned to divert inbound groups to other destinations, especially islands in the sea off Trad Province which are similar to those of Samui and Phuket in terms of geographical structure.

According to the Association of Thai Tourism Agents’ president Anant Sirisant, ATTA has to look forward and plan for the next 3 to 5 years, as those hotels have increased room rates by 30-40 per cent from November 1. "It is the time to spread tourism business to other areas which include Koh Chang island in Trad and some other islands in the south," said Mr. Anant.

Hotels in Samui and Phuket have been fully booked through the year as tourists, especially from Australia and Europe, have shunned away from Indonesia’s Bali after political turmoil erupted in that country. "Many hotels have directly sold room packages to travel agents abroad and refuse to do business with ATTA members," said Mr. Anant.

Investment to flood into Koh Chang; government urged to review Chantaburi Airport project to transport tourists to eastern sea resorts; hotels rush to agents abroad and enjoy sales at 100 per cent of rates.

[Note: Civic Aviation Board is to grant another five-year flying agreement to Orient Thai Airline.]

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Minister forces reduction in hand phone fee

Transport and Communication Minister Suthep Thuagsuban has declared war against the Baht 500 hand phone ‘maintenance fee’ since his first days in office. He said he would not bow to resistance by the two major operators and would force the goal which would benefit phone users and the public as a whole.

The minister, who demands that the two hand phone operators Total Access Communication and Advanced Info Service bring down the monthly fee to Baht 400, from Baht 500, earlier said he would let in a third hand phone network to compete with the two, if necessary.

In another move, Minister Suthep said he would invite two former deputy ministers of transport and communication, Mr. Sombat Uthaisang and Mr. Direk Charoenpol to be his advisors, to deal with the two private phone companies. Mr. Suthep said the two former ministers, both of whom are former directors of Telephone Organization of Thailand, are highly respectable and used to work with the two companies before.

New third network, likely to be the digital 1500 MHz, to offer a lower air time rate and with Baht 300 monthly fee; negotiations would be tough as operator would not concede to demand; transforming of concessions in process.

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Seastar Properties

One of the newer Property Development companies on the Eastern Seaboard is Seastar Properties. This enterprise is conjointly owned by the Starsing fund management group and the Eastern Star Real Estate Public Company in Ban Chang.

Live wire General Manager is Bernard Ng, who, along with Property Manager John Koh, is looking at enticing some of our larger industrial concerns to consider renting many of their houses that have recently become vacant.

The original leases were held by the refinery companies, but the scaling down of their operations, and the completion of many three year lease agreements, has meant that there are now some opportunities for renting in the Eastern Star Country Club and Golf Resort development.

The enclaves are set in the beautiful golf course grounds and all the "resort" type facilities and amenities are "on site". These include tennis courts, swimming pools, clubhouse and an international restaurant. The development roads are wide European standard, with underground power and good street lighting. Security has been made a high priority, and Bernard feels that their housing development is a really excellent venue for expat families.

Large Executive apartments and free standing houses are now available, and with the development’s proximity to Map Ta Phut, Bernard expects that the vacancies will not last too long. Interested individuals, or corporate bodies can contact him or John Koh on (038) 602 995/6 or fax (038) 602 997.

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