Condom manufacturer to bring ‘Life Style’ to local market

Suretex Co., producers of condoms and other latex products, plans to launch Life Style, a new brand name condom, to the local market aiming at those who seek a difference. The introduction of the condom is in line with Australia-based Ansell Group, one of the world’s major producers of condoms, which took over Suretex in August 1998.

Suthep Potechongrak, marketing manager of Suretex, said Life Style condoms have been very popular abroad; they are currently the second largest in US and European markets and No 1 in Australia. The new condoms, which would be in extra-large sizes, will be available at convenience stores and other modern trade outlets.

The parent company has introduced high technology to increase production here. Suretex also plans to increase the production of Pleasure condoms to 700 million pieces a year next year, from currently 300 million pieces a year - mainly for exports. The production facility in Surat Thani will be run to full capacity in the middle of next year.

Forecast center airs bullish mood on economy

The Economic Forecast Center of the Chamber of Commerce University said in a study released on Tuesday, December 14, the economy will grow by 4.5% in 2000, but with a number risks. The Thai economy bottomed out before the fourth quarter of 1999 and has continued to grow over the past several months. The sign of recovery was clear, said Thanavat Polvichai, director of the center.

Risk factors which could hamper the growth included low commodity prices, non-performing loans in the banking sector, and politics, Thanavat said. Positive factors which helped spur growth included increasing exports, the government’s deficit fiscal budget, and Japanese loans for development projects in the public sector, he said.

The inflation rate is projected to be 2.6% next year, while the trade balance would slip to 4.7% of GDP. The country’s current account would be 6.1% of GDP.

Recovery in other Asian economies should help enhance the Thai recovery as there will be more trading partners.

Air traffic controller to change end of year flight routes

Despite Y2K readiness in their computer system, Aeronautical Radio of Thailand Ltd., which controls air traffic in the territorial airspace, said main domestic flying routes will be changed on the night of December 31 in order to ‘cross the time line’ smoothly into the new century. A one-way landing system has been designed for passenger planes to and from many of the 32 airports nationwide.

“A number of flights could be delayed due to flight route changes,” said Somnuek Rongthong, director of ARTL’s Computer and information department. “No plane will be allowed to run counter to another while landing at airports on December 31. Several flying routes will be changed or diverted to avoid Y2K risks,” Somnuek said.

The one-way traffic system will be applied from 21:00 hours on December 31, 1999, to January 1, 2000. Planes will also fly under the 29,000-meter altitude limit set by ICAO. Flight times should be a bit longer as planes will fly along indirect routes from one airport to another.

Foreign freight forwarders eye local firms

International transport companies have moved into Thailand, as several others which already have a presence in the Kingdom eye local firms to expand, aiming to tap into the country’s growing exports. Alan Craper, chairman for Asia-Pacific Transport, said the company has greatly expanded over the past two years during the Thai crisis.

Union Transport (Thailand) came to the Kingdom in 1994 and later acquired a local transport firm during an expansion drive. They now control 100% of that firm. Union Transport has also been in take-over talks with a new transport company in Thailand to expand into the Laem Chabang deep seaport area. TNT Express Worldwide (Thailand), a leading transport company, also plans to acquire local firms.

Foreign companies have been successful in supply chain management and logistics services; many freight forwarders have entered into logistics distribution services in Thailand as local retailing continues to grow. Union Transport said the growth rate in 1998 was 40%, while anticipating an 88% increase this year.

Car maker plans to import Mitsubishi cars

MMC Sitthipol plans to bring Galant cars back to the local market next year after years of absence due to the economic crisis. The maker and distributors of Mitsubishi sedans, pickups and other commercial vehicles, plans to increase its share to 11% next year in a market that anticipates combined sales to rise to 260,000 units.

MMC Sitthipol plans to make 100,000 units of Mitsubishi cars in 2000, about 70% of which will be exported, said Katsuyuki Kambayashi, a senior director. Mitsubishi anticipates local sales to top 20,000 units this year, or 10% of the market, with sales of Mitsubishi Lancer sedans making up 30% and Strada pickups 55%.

Notes: MCC restarted its production line of 6-wheel trucks last September. Exports next year include about 2,000 units of Lancer cars to Israel. MCC Sitthipol will also import Pajero MPVs to the market next year. The company has brought out 1,700 units of Mitsubishi light trucks this year, and the production will be increased to 2,000 units next year.

Software market leader brings down prices to combat pirates

GM Corporation said there will no longer be ‘promotion prices’, as all the company’s VDO CDs and video cassettes will be sold at one low price. The company, which is the market leader in the documentary software market, had brought their prices down to Baht 99 a title during occasional sales promotion campaigns over the past several months. Normal prices were between Baht 129 and Baht 189 per title.

Siva Vatcharapol, deputy managing director for administration and marketing, said a new “lowest possible price” will be applied on all GM software at all sales outlets, including the Power Mall at the Mall department stores. The low prices have increased sales by about 50%, and have been a very effective means to counter rampant pirated CDs, Siva said. However, although sales increased greatly, the lower prices meant narrower profit margins.

A documentary cassette tape and a VDO CD will now be sold for Baht 99. Special prices will also be offered to schools for educational purposes.

TAT & THAI plan major international events in 2000

The Tourism Authority of Thailand and the national flag carrier, Thai Airways International, have planned several major international events for 2000 - which include several golf trips from Europe and Asia - to boost tourism sales. Pradech Payakvichien, governor of TAT, said international award festivals will also be organized as TAT celebrates its 40th birthday next year.

The Kingdom had expected to earn Baht 571.87 billion from tourism in 2000, or a 10% increase over this year, said Pachpong Apichatapong, a deputy governor. There will be niche market tours to Thailand next year, including about 360,000 golfers from all over the world, Pachpong said.

The Kingdom will also host the international ‘Johnnie Walker Classic’ golf tournament in November 2000.

Several international conferences and exhibitions are also being planned by the tourism authority.

Earning from tourism is expected to top Baht 510.872 billion this year, or a 27.87% increase over 1998.

Shin Corp, US partners, plan integrated mobile Internet service

Shin Corp, the investment company of the Shinnawatra Group, said it has been in negotiations with US-based investors for a plan to connect all communication operations with the Internet to create a mobile Internet service network. The initiative fits into Shin Corp’s policy to raise capital through listing on the New York stock market, NESDAQ, over the next six months.

Boonklee Plungsiri, chairman of Shin Corp, said its subsidiary Advance Info Service plans to invest about Baht 10 billion in 2000 to expand the digital GSM cellular phone network as its subscriber base becomes much larger. The GSM network would also be connected with the group’s satellite networks in 2001, Boonklee said.

Shin Corp, through its newly-created AD Venture Co., has already had a huge Web ring in Thailand - with more than 10 portal and community Web sites currently in operation. The group will have adequate funds to support expansion programs after listing in NASDAQ.

Hotels, airlines, agencies, on BTS train trip packages

Though the country’s first elevated electric train system had an unpleasant experience in the first week due to a low turn-out of passengers, it still has a very bright future in tourism. A number of travel agencies, first class hotels and foreign airlines have planned tour packages which include BTS train rides to bring hundreds of thousands of foreign tourists into the Kingdom each year.

Sivaporn Pokpong, marketing manager of Bangkok Transit System Co., said several inbound group tours are bound for Bangkok’s electric train service next year. BTSC has been in negotiations with Asiana Airline, Finnair, and five-star hotels, which include the Shangri-La and the Sheraton Grand, over package tours, Ms Sivaporn said.

Meanwhile, a new fare structure for tourists is being mapped out. BTS currently sells store-value tickets for Baht 300, but the fare is expected to be brought down to Baht 100. The fare will be determined to the standards in this region. Foreign tourists are expected to make up about 30% of BTSC train passengers next year.

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