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Krung Thai Bank launches Thailand’s first electronic banking
Krung Thai Bank Plc (KTB) has launched its 24-hour
electronic banking services, making it the first bank in Thailand to
initiate this type of service.
Phisek Phothinakorn, director and executive of the
Business Support Department, announced that KTB launched its 24-hour
electronic banking services on August 27 at its Nana Nua Branch.
The services will initially include automatic
withdrawal, automatic deposit, automatic cross-currency exchange, and
automatic updating of deposit books.
Phisek said, “Two automatic withdrawal machines, one
automatic deposit machine, one automatic currency exchange machine, and
one automatic updating of deposit report machine was installed on the
second floor of the Nana Nua Branch on Sukhumvit Road.”
By the end of the year, KTB plans to expand the four
types of electronic banking services to other branches in all regions of
the country in which major tourist destinations and business bases are
located, starting from the Huay Kaew Branch in the northern resort
province of Chiang Mai. (TNA)
PM says countermeasures against trade barriers will be taken
Prime Minister Thaksin Shinawatra has pledged his
government will not hesitate to take countermeasures against any countries
which adopt trade barriers against Thai goods. Thaksin said the government
has attached great significance to the Thai export sector because it is
the country’s main revenue earner.
Measures have been taken to promote exports, namely
expansion of packing credits for exporters, establishment of a one-stop
export service center, encouragement for account trade, and support for
trade connections with key partners such as India, China, the United
States, Japan and Middle East countries.
Although the country’s export volume has risen in the
first half of this year, export value has dropped from that of the same
period the previous year.
The decrease in value was attributed to product price
volatility in the world market, slower than expected economic recovery of
key trade partners, and an increased number of rivals in the market.
Still, the PM believes exports will continue to grow in
the second half of this year since key trade partners’ economies are
beginning to recover. “The government has attempted to broaden the
country’s export market base through Asian economic cooperation
programs,” Thaksin said.
“We stress export to countries where demand for our
products is high. We won’t target countries with high purchasing power
because they often adopt trade protectionism in various forms,” he said.
The PM said his government will first attempt friendly
negotiation with countries that adopt trade barriers. But should the
protectionism continue the government will take countermeasures against
them.
Thaksin told exporters to improve, develop and maintain
the standard and quality of their products and reduce production costs so
they can compete with foreign rivals. (TNA)
Ministry of Commerce aims to quadruple border trade with Malaysia
The Commerce Ministry has set a target to quadruple
border trade with Malaysia from the present 5.2-5.3 billion US dollars
according to the ministry’s spokesman, Rachen Pojjanasunthorn. Rachen
said Thailand’s current border trade with Malaysia represents around
54.7% of the total trade value along frontiers with neighboring countries.
Prime Minister Thaksin Shinawatra and his Malaysian
counterpart Mahathir Mohamad during a recent meeting shared this desire to
see border trade between the two neighboring countries increase four times
under the current administration.
Rachen said Thailand retains a trade deficit with
Malaysia because it has to import crude oil from Malaysia. Even so, the
Thai government wants to facilitate bilateral trade, particularly along
the common border.
To this end, the Foreign Trade Department has proposed
the establishment of duty-free areas along the frontier and a central
market for vegetables and fruit trade. It is also encouraging border
traders to exchange information on trade. Currently border trade through
Thailand’s southern province of Songkla accounts for 95% of total value.
In the first half of this year, Thailand’s exports to
Malaysia included para-rubber with a value of 4.65 billion baht,
electricity-circuit boards with a value of 7.29 billion baht, computers
and parts worth 7.34 billion baht, autos and parts worth 2.23 billion baht
and rice valued at 1.73 billion baht.
Imports included computers and parts valued at 14.7
billion baht, electrical motors and parts worth 8.39 billion baht,
electricity circuit boards valued at 6.96 billion baht and crude oil
totaled 5.18 billion baht. (TNA)
Economy still threatened by 4 risk factors
Bank of Thailand’s governor recently stated he
remained concerned over four risk factors which still loom as threats to
the Thai economy: the stability of financial institutions, non-performing
loans, public debts and the financial policy implementation.
Speaking at a seminar on “Thai Economy: How to Ensure
Sustainable Growth” he said local factors must be given priority for
consideration if all parties want to see the country’s economy enjoy
sustainable growth in the next 3-5 years. The BOT chief said the four
factors, unless managed effectively, could threaten that potential growth.
Although the financial institution system has begun to
improve, these institutions should not become complacent because there are
hidden weaknesses in the system. Some institutions still need to count on
state support, and Thailand must have financial institutions which are
stable and flexible enough to respond to changing situations.
At the seminar it was acknowledged that the central
bank must try to strengthen commercial banks to ensure they can lend to
the business sector. The supervision of financial institutions must be
improved so they can meet international standards.
The central bank will encourage lending institutions to
lend to a broader base of the sector so they can cater to rural customers
and prospective credit seekers. A plan for financial institution
development has been made and is expected to be completed by the end of
this year.
Thailand’s commercial banks are now in a better
position to make profit. Their loan-loss provision has stayed beyond the
central bank’s criteria as could be witnessed by the capital-to-risk
asset ratio of 13.7 percent. The minimum proportion set by the Bank for
International Settlement (BIS) is 8 percent.
Non-performing loans held by financial institutions
have significantly dropped following their transfer to Thai Asset
Management Corporation. However, there remains concern that loss from the
management of the transferred NPLs will be high
The BOT Chief said that public debts could worsen
unless solved in a proper manner but feels the government is aware of this
and is addressing the issue. The financial policy implementation is
another concern because it is experiencing high volatility.
Still, the central bank favors the implementation of
inflation-based financial policy and a managed float system since it
maintains stability of inflation and currency exchange rates. (TNA)
Overseas Thai restaurants set to rise to 8,000 in next two years
The Export Promotion Department says it aims to
increase the number of Thai cuisine restaurants overseas to 8,000 in the
next two years with China and India becoming main targets.
A survey by the International Trade Promotion showed
there are 6,737 Thai restaurants around the world now with an average
growth rate of 30% a year, said Banpot Hongthong, the department’s
director-general. Of this, 3,228 are in the United States and Canada, and
1,328 in Europe.
It is expected the number of overseas Thai restaurants
will rise to around 7,000 this year. Of this, 200-300 will be opened in
China as fast-food franchises under the name of Bua Ban (lotus blossom) by
Charoen Phokaphan.
He said the department set a target to increase the
number of Thai food restaurants to around 8,000 in 2004. Its support would
focus on up-market restaurants and franchises.
The intention is to encourage the opening of around 100
up-market restaurants next year. China and India are the main targets
because of the large number of consumers and Thai cuisine is very popular
in both countries. At present, there are only 49 Thai restaurants in China
and 51 in India.
Banpot said the up-market restaurants will help earn
the country currency revenue and tourism fame. More importantly, the
restaurants could play a partial role in promoting local products as most
of them order goods under the One-Product-One-Tambon program.
Should 100 restaurants be set up as targeted, Banpot
said, the country could earn as much as one billion baht in revenue. (TNA)
SIFC plans to seek foreign partnership
The Small Industrial Finance Corporation (SIFC) plans
to seek partners from Japan and other countries in a bid to upgrade the
corporation into the SME Bank.
Samran Phu-anantamanond, president of SIFC, said the
corporation was set to negotiate with potential foreign investors for
possible partnership so they could help SIFC develop small- and
medium-size enterprises in terms of know-how, technology, and capital.
With partnerships, SIFC would become a strong bank that
could help develop SMEs and enable them to compete with foreign
counterparts in various areas.
SIFC’s plan to seek foreign partners is expected
receive good response because local SMEs have growth potential and are a
key base for various industries.
Besides the planned partnerships SIFC needs to
reorganize in preparation for becoming the SME Bank. It must recruit more
than 300 staff to provide depositing and lending services and foreign
business transactions like commercial banks.
SIFC, which currently has a workforce of around 500,
needs to have well-prepared documentation if it is to be upgraded into the
SME Bank.
Samran said SIFC has reduced the target loans to SMEs
to 24 billion baht from 30 billion, as lending in the initial period was
slow because a clear target customer group had not been set. He said he
believed the target would be reached when the target group of customers
had been determined. So far, SIFC has already extended 8 billion baht. (TNA)
Revenue chief downplays concern over higher tax collection
The Revenue Department is brushing aside concerns over
higher tax collection as a result of the forthcoming tax revamp. It says
the reform is aimed only at boosting investment.
Director General Suparut Kawatkul said the department
is studying and preparing the new tax structure so it will help stimulate
the overall investment atmosphere. The move was not made with an aim to
jump-start the economy.
The revamp will be made comprehensively, not for a
specific industry or section. The director general said the tax collection
rate will decrease, not rise, following the tax restructuring. But this
will not mean the government will be in a position to collect less tax
revenue.
Suparut explained that tax collection prospects depend
on many other factors such as the country’s fiscal position and economic
recovery. Such factors will play a key role in boosting local and foreign
investment.
“The tax revamp will lead to lower tax collection in
the short run. However, it won’t reduce the government’s tax revenue
in the long run because the country’s economy is dynamic. Lower or
higher revenue should not be based on year-on-year collection,” Suparut
said.
Suparut added that besides the tax restructuring, the
department will prepare to systematize tax collection. It will try to give
as much information as possible to facilitate tax payment and encourage
entrepreneurs to enter into an organized tax payment system so they would
not be subject to back dated tax collection. He said their cooperation
will help broaden the country’s tax base and enhance the government’s
tax revenue collection.
The increased revenue will offset the shortfall from
the corporate tax reduction aimed at encouraging companies to get listed
on the Market for Alternative Investment and the Stock Exchange of
Thailand. (TNA)
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