Hotel and casino group urges Ministry to open door to Golden Triangle

An investment group with a good political connection has urged the Interior Ministry to open the border checkpoint to the notorious Golden Triangle, where the group operates a hotel-cum-casino. Vistavat Co., which is owned by an elder brother of Deputy Minister of Interior Prapat Pothasuthon, held a soft opening of the casino last month.

The company, with Japan’s Hanata Group, started the construction of a 150-room hotel, restaurant and casino complex and a golf course several years ago on a Mekhong island just inside Burma. The casino, banned on Thai soil, was aimed to attract both gamblers and tourists from Thailand, China and the rest of Southeast Asia. The Japanese group withdrew from the project in 1997.

The Golden Triangle checkpoint, opened by the Chart Thai Party-led government of PM Banharn Silapa-Archa, was closed by the Chuan Leekpai administration in April 1998.

Duty-free shops and a foreign exchange facility were also planned for inside the casino complex.

PRD to start Internet via Web TV in June

The Public Relations Department said it will start transmitting Internet information through an on-air system to Web TV networks nationwide this June. The broadcast via satellite should help save millions a year in operation costs as the PRD would not have to rent telephone lines from the Telephone Organization of Thailand.

The Web TV broadcast, however, has a limit, admitted Choosak Rongsawas, head of PRD’s Information Center. The department’s Internet broadcast would be a one-way system and TV audiences would not be able to access the World Wide Web while watching. Moreover, a "top of set" box might be needed in some cases, he said.

Obscenity would be screened out in the broadcast. PRD also plans to set up public Internet PCs in rural areas nationwide to publicize the government’s information and services. Costs of the two projects are yet to be disclosed.

Experts cautious on the PRD’s Web TV project as the technology has yet to be proven successful in other countries.

BMA considers setting up own cable TV network

The Bangkok Metropolitan Administration is considering a plan to set up its own cable TV network as an alternative to UBC, which has been under attack after the network increased its service fees on May 1.

BMA, as a legal entity, would apply for a cable TV license from the National Broadcasting Commission of the Prime Minister’s office. BMA would look for partners to invest in the new pay TV service.

"Free TV networks have failed to allocate enough time for BMA affairs," BMA councilor Apichart Harlamchiak said.

According to Councilor Apichart, the BMA Council has received complaints from 30-40 subscribers about the services offered by Universal Broadcasting Corporation, Bangkok’s only pay TV network, on the fee hike.

UBC, meanwhile, said it would still run in the red after the fee adjustment and once again urged the commission to allow it to sell commercials. The network also suggested stop buying HBO and start making its own movie program to cut costs.

NBC said about 50 cable licenses have been granted to operators in Bangkok and provinces.

NCC wants more land for hotel project

NCC Management and Development Co., operator of the Queen Sirikit National Convention Center, has asked the Finance Ministry about the possibility to use more Tobacco Monopoly land to add to the 53-rai plot under the 25-year concession agreement over the national convention center complex.

NCC said it wants the land to build a parking garage for up to 3,000 vehicles, in addition to the original plan of the Baht 2.7 billion five-star hotel project to be built under a BO concession agreement. Talks between the Treasury Department and the Tobacco Monopoly over the plot of land were expected to conclude soon, said the department’s head Manit Temvittaya.

NCC was to submit the hotel construction plan to the department last month for approval. The economic crisis, however, delayed the development plan under the agreement between NCC and the department.

NCC is still looking for loans to support the hotel project.

Meanwhile, a long negotiation lies ahead over the new plot of land, along with a new benefit sharing agreement.

Benz dealers said market lost to BMW in policy hurdles

Dealers of Mercedes cars have said that Mercedes Benz (Thailand) must make clear its marketing policy and in appointment of new dealers or face losing more of the market to BMW. BMW, by Bayerische Motoren Werke (Thailand) Co Ltd., recently launched a new sales campaign, said dealers.

Former authorized distributor Thonburi Group has more than 1,000 units of Mercedes cars in stock. The cars need to be cleared by the new Thai Benz unit under Germany’s parent company Daimler-Chrysler Corp. Mercedes Benz (Thailand) has yet to announce new rules in quota arrangements and the criteria for appointing dealers, old dealers said.

The uncertainty in policy spurs growth in sales of Mercedes cars in the local gray market. Imported S-320 and S-500 models by independent distributors are scheduled to arrive this month. Negotiations with Thonburi Group linger as prices could not be settled.

Business figures seen behind NAP’s change in leadership

Prominent business figures have been seen backing the New Aspiration Party which underwent restructuring in its leadership last week. The business leaders are believed to be new financial backers behind party chief Gen. Chavalit Yongchaiyudh, who successfully pushed Jaturon Chaisaeng into the seat of the NAP’s secretary-general, replacing the conservative Sanoh Thienthong.

The US-educated Jaturon has been a rising star in parliament as to his role as the only opposition MP who dared challenge the ‘economic czar’ of the Chuan Leekpai administration Dr. Tarrin Nimmanahaeminda in the past several house debates. The young Mr. Jaturon, who is in his mid-forties, is also a former deputy minister of finance.

The change for Jaturon was reportedly urged by the party’s financial backers.

On the political scene behind NAP includes Dr Virul Tejapaibool, directors of several business organizations, founder of the World Trade Center, Dr Supong Limthananukul, chairman of Denza International, and Pongthep Disyasirin who held several top posts in major businesses in recent years.

Wang Li family turns to focus on agro-industry

Founder of Nakhon Thon Bank, Wang Li family said the group would switch to focus on agro-industry as its core business, after diversifying to many other industries in the past several years. Chairman of the group Sukij Wang Li said the family started from agriculture before expanding to banking, property developing, insurance and other businesses.

Mr. Sukij said that although the group had been successful in venturing into businesses, all but its agro-industry had been adversely affected in the economic crisis. However, the family, which last week sold almost all its shares in NTB, which it founded 60 years ago, to the Standard Chartered Bank, must be well prepared to compete in a free-trade world, said Mr. Sukij.

The family’s Poonpipat Finance was among 56 financial firms ordered closed by the Bank of Thailand; there would not be any more good days to export millions of tons of tapioca, agricultural produces must be processed and modified before exported; the country’s agri-business was slightly affected by the crisis.

Plan to revoke import duties lauded by toy makers

The Association of Thai Toy Industry said it fully supported the initiation by the office of the Board of Investment to exempt import duties for categories of items, and parts and plastic pallets used in toy making should be included. "It’s important that the local toy industry gets tax assistance from the government to compete in the world market," said ATTI’s president Dusadee Laoticharoen.

More than one half of Thai toy makers in recent years have turned to produce quality toys under their own brand-names for export, from made-to-order manufacturing under international makers, said Mr. Dusadee. Exports of Thai-made toys were expected to top Baht 9 billion this year, a 10% growth. Thai makers have to avoid direct competition with Chinese makers, which make low budget, low-quality toys for export, he said.

Thailand is rich in resources but lacks essential parts like sound producing devices and horns. Locally-produced plastic pallets, which are used in making toys, are more expensive than imported ones. US market consumes about 30% of Thai-made toys each year while another 30% is taken by the EU. New competitors are Vietnam, Indonesia and Sri Lanka.

APS brings down prices to increase sales in VDO CD market

APS Co. has brought down prices of its music CDs and movie CDs to Baht 99-120 a title in a plan to spur sales in the home entertainment software market which is now dominated by video tapes. The company has planned to increase sales 10-fold this year, from Baht 200 million in 1998 to Baht 2 billion.

According to APS’ chairman Aphichart Sawasthanakul, VDO CD is still relatively new to the Thai market while prices of the software have been brought down gradually, along with prices of the hardware by major manufacturers. The market has tended to switch to music CDs from music tapes, while sales of VDO CDs have risen recently, he said.

Sales expected to rise to Baht 3 billion in 2000. Major makers of VDO CD players, Pioneer and Panasonic said that they keep a very small stock as almost all the products were sold in the first quarter. Prices of VDO CD players were also brought down to control shares in the Baht 3 billion market of home entertainment products.

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