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Local stores told to do or die
Car makers bring up targets as quarter sales rise sharply The local car market was upbeat on sales in the first quarter, causing some car makers to increase their sales targets. Combined sales in the industry are predicted to be higher, up to 280,000 units this year. Honda Motor (Thailand) said it had sold 11,680 cars, an 86% increase, in the period from January to May. HCT has now adjusted this year’s sale target to 31,000 units, from 28,000 units. Dr Vatchara Pannachet, vice-president of MMC Sittiphol Co, which produces and sells Mitsubishi Cars in the local market, said the overall industry output between January and April this year was 120,416 units, a 51% increase, while the export value had topped Baht19.5 billion in the same period. Low interest rates have helped spur leasing and purchasing, and about 70% of cars leased in the past few months have been bought under installment programs. A total of 19,705 units were exported from January to April; the number represented a 43.81% increase compared to exports in the same period in 1999.
FDA says no to higher caffeine levels in soft drinks The Food and Drug Administration has rejected demands by producers of ‘energizing drinks’ for an increase in the quantities of caffeine. But the FDA resolved - in a way viewed by many industrial experts as a time buying game - that all the soft drinks in the market be re-examined to figure out a suitable level of the stimulating substance. According to Dr Narong Chayakul, FDA secretary-general, a committee was set up to handle the study. Soft drinks to be scrutinized for caffeine content include energizing drinks, ready-to-drink coffee and tea, Coke and Pepsi, the sales of which have grown rapidly over the past few years. The study would focus on how much caffeine average Thais could consume without harming them. Osotspa, producer of Lipovitan D, rationalized that if the level of caffeine was increased from 50 milligrams to 80 milligrams a bottle, then exports would increase dramatically. Thailand and Japan are major producers of energizing drinks for the world market, which had combined sales worth Baht262.4 billion in 1999.
TMB president rumored to call it quits Rumors have it that the president of the Thai Military Bank, Dr Thanong Pittaya, will soon leave his office after successfully leading the bank through the capital increase process. Rumors spread when Dr Thanong was on leave to spend holidays with his family, and none of his deputies stepped out to calm down the rumors. Dr Thanong was reportedly paving way for Akradej Peechaphol, a vice-president, while rumors put it that the finance ministry, which is the majority-owner of the bank, is sounding out Somchai Sakulsurarat, former president of First Bangkok City Bank, and Tawatchai Yongkittikul, president of Thai Bankers Association, for the TMB top post. Dr Thanong does not have to leave until he completes his three-year term in the next 7 months. But sources said the president is waiting for new board members representing new shareholders to move in before he moves out.
Internet ‘Invention Fund’ reviewed as Shin eyes foreign partner for technology Shin Corporation has stopped injecting new capital into AD Venture Co, the group’s venture capital arm, while the company eyes prospective foreign partners to share know-how on the Internet. Shin Corporation is looking for foreign partners because there are still problems that average Thais are not able to solve because they have not yet “matured” in particular areas. Boonkli Plungsiri, Shin’s chairman and CEO, said it was not only money that makes scientists; there were several other ways to make them. “Thais are not diligent, nor do they work harder after they win funding,” he said. “Shin will not set up ‘incubators’ here to nurture young scientists because of high costs, and the fund will be reviewed,” Boonkli said. Candidates would face a tough examination to win more grants. There have been more than 10 Webmasters and/or Websites that won financial support from AD Venture Co. when the project was launched late last year.
Thai recovery: The crisis has gone - insists FM Tarrin The Kingdom has survived the worst economic crisis in modern times, but a lot has yet to be done to bring about a sustainable economy after this ‘first phase’ of the economic recovery, said Finance Minister Tarrin Nimmanahaeminda. Politically, he said his Democrat Party would be a must choice in the next general election in order to continue the economic policy. The Thai economy has reached a very important turning point that needs continuity in policy, the economic chief said. It is important to continue implementing measures to stabilize the economy by strengthening banking and financial institutions, which would need drastic change in their managing systems. The Bank of Thailand, for instance, faces such a change, the minister said. Thai society must be strong and secure, and the government must undergo redistribution of wealth to different social sections, he said, adding that the country’s non-performing loan problem has been corrected. Dissolution of the parliament this month would delay the 2001 fiscal budget for 6 months.
Tens of thousands face layoffs as electronic banking becomes choice Between 10,000-30,000 employees in the country’s banking industry fear they will be laid off starting this year as financial institutions turn more to electronic banking. Many of the employees said layoffs en-masse seems inevitable as foreign bankers introduce banking inventions into the Kingdom. Electronic banking has been the new trend since the market began to use the Internet. For example, GE Capital is currently providing lending services through the group’s home page. The president of Siam Commercial Bank, Khunying Chada Wattanasiridham said that services at branch offices cost Baht15-30 per service, but would only cost Baht7-15 per category by electronic banking. There are normally 15 employees working at each branch, but that number was recently brought down to 5-7 employees after electronic systems were introduced, said another SCB executive. Modern machines will further bring down the number of employees at each banking branch to 4-5. Bankers are saying it was time to adapt to modern times, in order to be competitive.
Krabi Airport has busy first year
Atec computer sales unexpectedly surge in first 5 months
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