Vichit is FM’s choice for Krung Thai Bank top post

Finance Minister Dr. Tarrin Nimmanahaeminda is to propose executive chairman of the government owned Radanasin Bank, Dr. Vichit Surapongchai, for executive chairman and president of Krung Thai Bank. The top post has been shunned by other high flyers in the past several weeks. Managing director of the Stock Exchange of Thailand, Mr. Sing Tangtatsawas is also Dr Tarrin’s choice as KTB president, said banking sources.

According to the sources, Dr. Vichit, who was a deputy minister of transport and communication in Mr. Chuan’s former cabinet, has been the most suitable choice of the finance minister. The governor of the bank of Thailand prefers Mr. Chalermchai Jaruwat to KTB’s presidential seat, which has been left vacant since Mr. Sirin Nimmanahaeminda resigned last January 15.

Dr. Vichit’s name will be proposed to Prime Minister Chuan Leekpai when he returns from visits to Latin American nations.

BOT, by the Financial Institution Development Fund, owns 86%, while Finance Ministry owns only 3.75% in the bank. Employees fear that KTB will completely fall into the hands of politicians, as the bank’s non-performing loans already constitute 26% of NPLs in the system.

Royal Ahold to invert Baht 900 million more in expanding operations in Asia

Royal Ahold of the Netherlands is to invest US$25 million (about Baht 900 million) this year to expand Tops Supermarket in Thailand, Malaysia, China, Singapore and Indonesia in the wake of a regional recovery. The new investment was aimed to strengthen the group’s business rather than expanding by buying more operations in this region, Royal Ahold’s deputy chairman for public relation affairs Mr. Jan Hol said.

The Dutch group has an accumulated investment of more than Baht 2 billion in Asia since 1997, with Thailand taking the largest stake, said Mr. Hol. Royal Ahold, with Central Retail Corp of Central Group, opened the first 3 Tops Supermarkets in the Kingdom in early 1998. The company, CRC Ahold Co., opened 36 more branches of the chain throughout the year.

Royal Ahold took control of Tops Supermarket earlier this year after CRC gave all its shares in the company to the Dutch group, in a capital increase plan in which the Thai partner was entitled to buy back the shares in 8 years.

Tops earned Baht 9.35 billion in Thailand last year, or more than 50% of over all earnings in Asia by the Dutch group. The chain was left unaffected by the Asian crisis.

Communication firms warned to prepare for solar stroms

Scientists at the Ministry of Science, Technology and Environment have warned local communication industries to prepare for the worst when solar storms, ignited by explosions on the surface of the sun, brew up early next year. It is feared that the phenomena will adversely affect satellite communication and is likely to interrupt paging, mobile phone and radio communication services.

While Pornthep Tejapaibul, Minister of Science, Technology and Environment, said all government agencies concerned will meet to tackle possible impacts on communication networks. Dr Chaiwat Kuptakul, a leading scientist at Srinakarinwirote University, said that essential equipment is still needed in Thailand to create an early warning system, to prevent possible fatal impacts caused by solar storms. Thailand has been dependent on findings by foreign countries, he said.

Failure of satellite communications may cause chaos to national elections early next year.

An X-ray telescope, which costs millions, is needed to detect the solar turbulence, of which shock-waves normally reach the Earth’s surface two weeks later. Some scientists even predict possible blackouts in major cities.

Compaq follows IBM, starts ‘free maintenance’ campaign

Compaq Computer (Thailand) is offering an on-site, 3-year, free maintenance package to every Compaq PC and sever purchased from here to the end of July. This is a new campaign by the company to promote sales of its computer and server in the second quarter. The offer is to compete directly with IBM (Thailand), Compaq’s main rival, which proposed a similar package to computer buyers earlier this year.

Compaq Computer’s business director Alongkorn Tungkabanharn said the new campaign was designed ‘to close the gap’ to compete, and to help lift sales of Compaq PCs and servers. The on-site service would be taken by Compaq’s huge nationwide service network, which is, among others, the company’s strength, Alongkorn said.

Compaq, aiming to be the leader in the computer server market this year, recently authorized SIS Distribution Co. to be a distributor for Compaq Alfa series. Sales of servers have doubled since earlier this year as banks, financial and educational institutions, and telecommunication firms have become new customers.

Thai power plant sold to Iraqi government for US$37.5 million

Thai-owned Alpha Power Co. will sell heavy equipment, which includes three French-made gas turbine generators at the company’s power plant in Chachoengsao, to the Iraqi government through an Iraqi-owned company based in Spain. The deal has been approved by the United Nations. The US$37.5-million (Baht 1.3 billion) deal has been secured by Alpha Power chairman Sonkuan Assavachoke and Hussein Nasser Hussein, chairman of Dominion Spain, with the consent of Iraqi officials.

Alpha Power, with the capacity to generate 210 megawatts of electricity, was set up during the boom years to supply electricity to industries inside Alphatechnopolis Industrial Estate. The company would also sell some of the electricity produced to the Electricity Generating Authority of Thailand.

The Assavachoke family, which also owns Alphatech, a major electronic wafer manufacturer, scrapped the power project shortly after the Thai crisis hit in 1997, and the whole group ran into trouble financially.

France’s Alstrom, maker of the three gas turbine generators, has been hired to handle removing and transporting the equipment to Iraq. The deal was struck after just one month of negotiations.

The Assavachoke family advertised to sell the equipment in international market.

The generators are to be used by industry ministry of Iraq.

Paradej emerges as strongest candidate for TAT top post

Paradej Payakkavichien, a deputy governor of the Tourism Authority of Thailand, has become the strongest candidate for the top post after Governor Seri Wangpaichit retires at the end of September this year. Paradej, a ‘mister clean’ who rose to head of planning and development of TAT several years ago, has surpassed his friend and colleague Ms. Chuthamas Siriwan after he expressed the wish to join the race a couple of weeks ago.

According to TAT sources, Paradej would be the most suitable person to head the authority, which commands the future of the country’s crucial tourism industry. His suitability comes from his jobs in the past several years, while the only competitor, Ms Chuthamas has been involved mainly in managing TAT duty-free shops, which have been in trouble financially. Seri’s most senior deputy, Pannara Choocharn, is also to retire this September.

Both Paradej and Ms Chuthamas rose to the post of deputy governor in the same year when TAT was under the patronage of Dr Savit Bothivihok, now a cabinet minister in charge of national energy policy.

Sources said politicians will determine who would be the next TAT governor; sources in Chat Pattana Party, with Minister Pitak Intaravittayanan patrolling the organization, said Paradej is the party’s choice.

VAT return scheme runs into turmoil

Officials have found that the VAT returning process has not worked well at the start, since the scheme, aiming to boost spending by foreign tourists, was introduced on June 1. Some foreign tourists tore up in anger VAT return slips and receipts when counters at airports refused to process them. The VAT Refund for Tourist plan is highly touted as a tool to boost the Thailand Grand Sales Festival, which is a couple of months away.

Officials said such turmoil, caused by inadequate public relations and lack of knowledge among officials concerned, are scaring away tourists rather than encouraging them to return. The situation is clouding the Amazing Thailand Years. Some shopping centers even fail to issue VAT return slips for tourists, they said. Tourists themselves, meanwhile, have failed to take along the goods they purchased to show at the revenue counters inside departure lounges.

A get together as planned for June 11 to figure out the problems. A total of 149 shoppers applied for VAT return in the past 7 days, with only a few thousand of the Baht 300 million fund for the scheme disbursed. Public relations has been cited as the key to success.

Officials said some tourists are being very rude.

US educator, KSC offer free language classes on the Net

US-based Eduverse Co., a technology group and developer of educational curricula, signed an agreement last week to authorize KSC Internet as its sole representative to offer English language classes to Thai learners on the Internet free of charge. Eduverse general manager Mark E Brook said the new service would help enhance the group’s business opportunity in Thailand, as well as the opportunity for Thais to learn American English.

According to KSC Internet chairman Dr. Srisak Jamornmarn, the service, which covers Bangkok and 35 other provinces this year, would be expanded to cover all 76 provinces in 2000. Under the agreement, no tuition fee will be charged from learners and general Web surfers who visit the site, Eduverse would earn from selling ads on the home page.

KSC Internet is the largest ISP in Thailand, which claims to have 250,000 users. The company plans to print language lessons on CD-ROMs in a later stage of business.

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Created by Andy Gombaz, assisted by Chinnaporn Sangwanlek.