Wine business has been on rough road as market dies down

The usual "wine fever" is missing this year as the festive season come close. Dozens of distributors, born a couple of years ago in a boom, have faded out as hundreds of wine shops and wine cellars have closed. Still, there is always an opportunity in the crisis and many distributors have turned their focus to foreign customers.

The most effective evidence to prove the market is slumping is export figures. Thailand has imported only 1.57 million liters worth Baht 121.83 million between January and September this year, a 73 percent decrease in volume and nearly 80 percent down in value, compared with 5.85 million liters worth Baht 433.63 million in 1997.

According to Berli Jucker’s vice-general manager Visutra Pongviratchai, the depreciating Thai baht is among the major factors that has complicated wine marketing in Thailand. The government has meanwhile twice raised the excise tax since last year, from 40 percent to 50 percent in October 1997 and to 55 percent in February this year.

Thais drank 10 million liters of wine in 1996; only low-priced wine below Baht 500 a bottle working well in the economic downturn; major distributors found tourism boom a boon with new outlets in hotels; high quality wines still needed in buffets at hotels.

Anti-impotence drug becomes popular New Year present

To many, it is a difficult time as New Year celebrations approach and they have to find something as a New Year’s gift for the boss. But there is one more choice this year and many of those looking for some wonderful gifts have turned away from Scotch whisky or fruit baskets to the wonder drug Viagra.

According to hospital sources, doctors and specialists have got more phone questions lately from callers asking for more information about the anti-impotence drug and how to purchase some, and for information about how the drug would enhance sexual activities or help increase durability while making love.

A doctor at Yanhee Hospital said a huge number of callers wanted to know if Viagra was available in the black market for fear that their requests might be turned down at hospitals, since a prescription to buy the drug from specialized doctors is required by law. Some callers said they wanted to use the drug themselves while many more said it would be intended for their superiors as New Year’s gift.

Doctors warn that Viagra works only in those who lose erection, but will not be helpful in patients who have completely lost sexual need; the drug will certainly not help prolong a sexual intercourse; there is a risk of heart attack and kidney failure.

Nearly Baht3 billion needed to guard tourism from effects by SSB project

The government may have to spend over Baht 2.7 billion to fund a package of development projects in the next 7 years to prevent the tourism environment in five southern provinces from side effects from projects under the government’s Southern Sea Board development scheme.

According to a study by Southeast Asia Technology, a leading consultant and researcher in development, key tourism spots in the south - surrounding seas in Krabi and Phuket in the Andaman and Samui in the Gulf of Thailand - must be protected and a concerted effort is needed in implementing development and renovation plans.

Under SSB, two deep sea ports are to be constructed in Krabi on one end and in Surat Thani on another end, while a highway system is to be constructed to bridge the ports. The land bridge scheme will help short-cut a sea transport route between the Andaman and the South China Sea.

Industrial estates and oil pipelines will be eyesores in core tourism areas; industrial wastes, without proper management, would completely destroy coastal areas environmentally; US Bechtel, Japan’s Nippon Koei and Thailand’s AEC also take part in studying, consulting.

Taiwanese speculators closely watched by SEC

The Stock Exchange Commission (SEC) is closely watching a group of Taiwanese speculators whose actions are behind surges in trading volumes in the past 2 weeks, to see if they have violated securities laws. The commission’s legal experts have also looked into details to see if their activities have been a manipulation on shares, which is against the law.

According to sources, the Taiwanese were seen making orders via several large and small brokers, which include Seamico Securities, Security One Finance, JF Thanakom Finance and Nithipat Finance. The Taiwanese have come in and opened cash-balance accounts with about Baht 10-15 million each and made orders by phone to buy and then sell out on the same day to make profit, said sources.

The SET index rose to break the 300 points level last week as daily volume surged to bypass the Baht 10 billion level for the first time in nearly two years. The Taiwanese speculators were active in shares in finance and bank segments, as they saw an opportunity to make quick profit in the temporarily rebounding SET.

Legal actions might be needed; Taiwanese focused only on shares of a few finance houses and banks; shares seen transferred among the group’s members.

UBC’s subcontractors in disarray

Contractors and sub-contractors installing cable TV and satellite TV equipment for Universal Broadcasting Corporation have been in disarray after the only cable network operator stopped supporting devices and at the same time extended payment period to 180 days. Those working for UBC’s CATV system said they want equal treatment from the cable TV operator.

Owner of UBC Telecom Holding Co., a full subsidiary of TelecomAsia Corp, has reportedly left about Baht 2.5 million unpaid to the company’s contractors, which put them in financial hard times. The overdue payments have subsequently affected dozens of sub-contractors, said industry sources.

Those contractors installing receiving units for UBC said they want equal treatment; UBC has paid the companies installing receiving units in direct satellite system (DSTV) immediately after each installation work is complete, but has delayed the payment to CATV contractors for 180 days.

Only 17 sub-contractors left for services, down from over 30 before IBC-UTV merger last year; sub-contractor cannot leave the work fearing that Baht 1 million bank guarantee will not be returned; some said they only have 10-20 customers install each day, compared to 100 before the merger.

ADB loan for water treatment projects halted by minister

Science, Technology and Environment Minister Suvit Khunkitti has ordered the Department of Pollution Control to review its plans to draw US $60 million loans to fund a huge water treatment plant project in Samut Prakarn province, as more information on the spending plan is required after the ministry’s budget fund has been severely slashed in the country’s financial constraint.

According to sources, the department wants to draw the loan from Asia Development Bank to finance the construction of the project, which has come to political limelight in the past several weeks for lack of transparency. Former ministers have made for Baht 7 billion of budget fund for the department, more than one half of the ministry’s overall budget allocated in the fiscal year 1999.

Press reports said the project was created under a big conspiracy to the benefit of a handful of politicians. Deputy Interior Minister Mr Wattana Assawahem, leader of the ‘Cobra’ faction in the Cabinet, has been seen fully benefiting from sales of a 2,000 rai plot of land for the water treatment plant. Four 4 construction companies with close links to political circles have won the construction contract.

Five ‘highway tigers’ now to construct water treatment plant; Industry Minister Suwat Liptapallop reportedly behind the idea of the project when he was at the Ministry of Science.

Linux attracts big time Sls as banks, large corporations turn to the OS

Linux has gained more popularity in the market as financial institutions and companies which include Siam Commercial Bank, Thai Farmers Bank and GF Thanakom Finance turned to using the operating system to run their servers. The Thai version of Linux has run out in the market just two months after it was introduced.
Kraiwal Software, formerly a less known local IT company, which develops Thai version of Linux RedHat 5.2, said the company has been approached by major solution integrators, Oracle System (Thailand), Informix System (Thailand) and IBM Thailand for possible cooperation in business development.
Moreover, TPI, which is among Thailand's largest companies in the petrochemical industry, and Food Lion, the worldwide supermarket, will soon run their Intranet and net servers on Linux. Kraiwal Software is to introduce the upgrade version of Linux, the KW2.0 (Thai) version, to the market soon, said the company's system chief Kant Yuenyong.
Company eyes more organization customers; cooperation with major SIs a boon in market; Linux RedHat 5.2 available on CDs - Baht 250 each; demand rose in the market as all the products were sold out a couple of weeks ago.

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Created by Andy Gombaz, assisted by Chinnaporn Sangwanlek.