HEADLINES [click on headline to view story]: 

Thai economy can stand on its own feet

Benefits from AFTA prompt Toshiba to boost exports

Thailand wants Yemen to import more rice

Telecoms demand in Asia could revive global industry

Toyota chooses Thailand as R&D base

Thai economy can stand on its own feet

The government is stressing that the Thai economy will not be adversely affected if the United States experiences economic malaise or an extended downturn.

Many were worried about the Thai economy based on a report of a change in the US Secretary of Treasury and a fear that the US economy would be engulfed with non-performing loans in its banking system.

Speaking on December 12, Prime Minister Thaksin Shinawatra said the government has adopted an economic self-reliance approach since it was entrusted to administer the country. It had also stepped up the campaign to promote the nation’s export by penetrating new foreign markets.

He said he wants to see the country stand steadily on its own feet and not to rely on external economies. He said his government has managed to drive the country’s economic growth in the past two years. Foreign debts have declined while the international reserve has increased during that period.

When asked what he thought about the opposition’s warning the government not to repay debts the country has with the International Monetary Fund ahead of schedule, Thaksin said everyone had the right to give a suggestion or warning; however, the government will try to do what will most benefit the country. (TNA)

Benefits from AFTA prompt Toshiba to boost exports

Although Japanese electrical appliance manufacturer Toshiba plans to shift television production from Thailand to Indonesia next year, its Thai unit expects to increase its export income by 20 percent over this year’s projected 3.4 billion baht by shifting more of its production units here so that it can take advantage of the regional trade benefits from the ASEAN Free Trade Area (AFTA).

Thai Toshiba Electric Industries vice president Kanit Muankrachang said, “We will start shipping some new products we are manufacturing here, like air purifiers, to Japan next year.

Thai Toshiba also plans to expand exports to other countries in Southeast Asia, including the Philippines and Indonesia in order to take advantage of lower AFTA tariffs. Under the AFTA trade agreement import tariffs on finished goods traded in the region will between 0 and 5 percent and is expected to come into effect early in 2003.

Kanit said Thai Toshiba thinks the Middle East has good potential as a new export market. In this case, expansion into this market could partly make up for a possible decline in the value of export to Japan because of more competition China.

Presently shipments to Japan represent about 90 percent of Thai Toshiba’s total exports. But the company expects a decline in exports to Japan due to the sluggishness of the Japanese economy and increased competition from lower-cost Chinese-made products. (TNA)

Thailand wants Yemen to import more rice

The government is pressing Yemen to import more rice from Thailand in a bid to reduce the trade deficit. Commerce Minister Adisai Bodharamik spoke on December 12 with Mohamed Taramustafa, Yemen’s ambassador to Thailand. The discussion focused on ways to increase the trade value between the two countries.

Thailand has had an annual trade value of US$796 million on average with Yemen during 1997-2001. The bilateral trade value has reached $437.9 million in the first nine months of this year.

However, Thailand has a trade deficit with Yemen because the latter is a key crude oil source. To reduce the deficit the government is urging Yemen to import more products from Thailand, particularly rice. Other potential exports to Yemen include chewing gum, footwear and parts, cosmetics, soap, skincare products, and machinery. (TNA)

Telecoms demand in Asia could revive global industry

In its latest report, “Asia-Pacific Telecom Indicators 2002”, the International Telecommunications Union (ITU) thinks that Asia can be a driving force to bring the global telecoms industry out of its present slump.

The ITU is the world’s biggest non-profit telecom body in charge of global telecom policies.

The world-wide telecom industry has been in economic decline since early 2000. But the ITU says the Asian region has great potential because of high demand for telecommunication services and advanced technology.

The ITU acknowledged the Asia Pacific region was not “bullet-proof” as was witnessed during the financial melt-down in 1997. Even Japan, which is the world’s second largest economy, has slid in and out of recession for nearly a decade.

However, the ITU report said, “Consumer demand in the Asia-Pacific region is strong, and the demand for information-and-communications-technology services among consumers is so high that it continues to drive the sector.”

The ITU report stated, “One of the keys to pulling the world’s telecom industry out of its current slump will be the development of new technologies and applications which must eventually replace existing telecommunication technologies. Today’s technologies are already reaching saturation point in the more developed markets.”

It is projected that developing nations in the region will eventually boost accessibility to telephone service to nearly 100 % while enhancing cellular competition. Increased mobile coverage can be achieved relatively fast.

In Thailand, TA Orange debuted only last March and expects to complete 90 % coverage in December 2002.

The only drawback may be that developing Asian countries are now approaching a new era where affordability rather than infrastructure will be the main barrier to telecom access. (TNA)

Toyota chooses Thailand as R&D base

Deputy Prime Minister Prommin Lertsuridej recently stated that Japanese giant automaker Toyota Motor Corporation has chosen Thailand as a base for investment in research and development (R&D) in Asia.

Prommin said the corporation recently informed the Thai government of its intention to invest R&D here because Thailand is the firm’s production base in the region.

The deputy premier said the Thai government was ready to give support to R&D because it could strengthen the country and its economy. Thailand has set aside up to 3 billion baht for R&D, particularly in the agricultural sector. But only a small amount of the budget has been drawn out so far. He said the government was willing to support Toyota’s R&D investment although it has not yet been determined how much the giant automaker will invest.

A source at Toyota (Thailand) Co. said the corporation would use Thailand as its 5th R&D base after Japan, the United States, European Union and Australia. An automobile school will be established to develop and strengthen the production base.

Thailand will benefit considerably from the plan because it will enhance local scientists and researchers’ knowledge and skills in the industry.

“Toyota opts to invest in R&D in Asia since it has already made such investments in all regions. As an Asian country Japan’s own role is an investment base. So, it sees Thailand as a second one with geological suitability,” said the source. (TNA)