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APEC to hold international conference in Pattaya City in April
Suchada Tupchai
Preparations are being made now for the upcoming Asia
Pacific Economic Cooperation (APEC) conference which will be held in Pattaya
in April. A meeting to prepare for this prestigious event was attended by
Mayor Pairat Suttithamrongsawat, Panga Vathanakul, managing director of
Royal Cliff Beach Resort, and representatives from the Tourism Authority of
Thailand (TAT). The 3-day conference will be held on April 8-10 at the Royal
Cliff Beach Resort.
Mayor
Pairat Suttithamrongsawat says Pattaya is ready to host APEC in April.
APEC comprises the countries of Thailand, China,
Australia, Brunei, Malaysia, Indonesia, The Philippines, Singapore, Taiwan,
New Zealand, Mexico, South Korea, Papua New Guinea, Japan, Canada, U.S., and
Chili. Over 50 representatives of these member-nations will attend the
conference.
APEC representatives will be coming to Pattaya on April
7th, and welcomed by H.E. Sonthaya Khunpluem, Minister of Tourism and
Sports.
Pattaya was chosen to host the conference because of its
beautiful and peaceful location, its multi-cultural atmosphere, and most
importantly, was judged to be one of the safest tourist destinations in the
world.
During their free time, the group will visit a selection
of places in the area including Sattahip Naval Base and Sajjatham Palace.
Since the conferences will take place close to Songkran,
the traditional Thai New Year, the welcoming party will reflect traditional
Thai culture in order to show the international group the uniqueness of the
kingdom’s culture.
Bali Hai point was suggested as the welcoming area and plans need to be
firmed up as to the decorations and formalities.
China agrees to 0% taxes on Thai fruit and vegetables
China’s Prime Minister Zhu Rongji announced a tax break
on Thai fresh produce during talks with Thailand’s Premier Thaksin
Shinawatra in Beijing on February 18. Describing the news as a “very good
signal”, Thaksin said that the scheme would be extended to other products.
“At very least we’ve reached the starting point, and the FTA between
Thailand and China has begun. This ‘early harvest’ has begun with fruit
and vegetables, and once the agreement has been signed taxes will fall to
0%”, he said.
The prime minister quipped that if Thailand used the
whole of its land to produce fruit and vegetables, China, with its huge
population, would be able to consume them all.
The commerce ministers of the two countries will now
enter into further negotiations to ensure that the agreement comes into
effect as soon as possible. The FTA itself is likely to be established in
April or possibly earlier, as Zhu Rongji expressed a wish to see it up and
running quickly.
Thailand and China have few mutual problems that needed
ironing out, including an earlier ban by China on the import of Thai longans,
but the Chinese prime minister has clearly shown a willingness to cooperate
and said he was not interested in putting up trade barriers for the sake of
it. (TNA
Free trade agreement will
not conflict with WTO
Last week Commerce Minister Adisai Bhodaramik said the
free trade agreement (FTA) being promoted by the government will not pose a
problem to the framework of World Trade Organization (WTO).
He said the government was on the right tack in ensuring
Thailand’s sustainable economic growth and that the FTA could only improve
fair trade and a more equitable international trading market.
Adisai said, “The FTA deals will not have any impact on
the WTO because both sides will have agreed to the deal and to abide by
it.”
Thailand’s rice exports may soar in 2003
The country’s rice exports may hit a record high this
year due to an expected reduction in India’s exports.
The El Nino weather phenomenon in 2002 caused drought in
several countries in Asia. India, Thailand’s biggest rival in rice export,
suffered a severe drought followed by insufficient monsoon rains. This
slashed rice India’s rice output, and combined with falling rice stocks,
will most likely prevent India from capturing a large share of the global
market in 2003.
Thai rice prices are expected to hover around current
levels because Thailand still has ample stocks while other exporters like
Vietnam, China and Myanmar are expected to step up their rice exports. Some
exporters will offer lower prices and Thai exporters will have to compete.
The Thai government still needs to release stocks it
accumulated under a domestic price intervention program, so it will have to
lower prices to attract buyers.
Thai 25 percent broken rice is currently offered about
$183-$185/ton, FOB, while Vietnamese rice is quoted at $160-$162/ton, FOB,
compared with last year’s price of $177-$179/ton and $160-$175/ton for
Thai and Vietnamese rice of the same grades, respectively.
SET joins with private organizations to boost competitiveness
The Stock Exchange of Thailand and the Market for
Alternative Investment have teamed up with three private organizations in a
bid to boost competitiveness of entrepreneurs in the business and industrial
sectors.
They include the Federation of Thai Industries,
Securities Companies Association and Investment Bankers’ Club.
Speaking after the signing ceremony, SET president
Kittirat Na Ranong said the cooperation among the five organizations was
aimed to develop and promote Thai business and capital market.
Entrepreneurs in the industrial sector, particularly
members of FTI, would be given a quick access to advisory services by SET
and MAI in case they wanted to raise funds in the stock market.
He said FTI members would also obtain a privilege to
participate in training courses and seminars held by SET, MAI and the
Securities Companies Association.
As well, SET will help them develop good corporate
governance within the organizations.
Prapat Pothivorakul, chairman of FTI, said members with
growth potential would be selected to list on SET and MAI.
FTI will also participate in road shows to be held by SET
in provinces in different regions, including Petchaburi, Nakhon Ratchasima,
Chon Buri, Songkla and Lampoon.
He said FTI wanted members in both Bangkok and provincial
areas to realize the importance of the long-term capital source in
strengthening business and boosting competitiveness. (TNA)
Government Saving Bank to provide loans for low-cost housing
The central government has begun a new phase of its
project to provide housing for the poor. Low wage earners who already own
land will be allowed to borrow money at low-interest rates from the
Government Savings Bank to build a home.
The government expects around 100,000 people to borrow
money to construct houses within the first three months of the project.
Those who do not own land can will be allowed to find a house if the cost is
under 300,000 baht.
Deputy Prime Minister Somkid Jatusripitak, Finance
Minister Suchart Jaovisidha, and Deputy Finance Minister Varathep
Rattanakorn on recently visited the Government Housing Bank to review
progress on a housing project for the poor.
Charnchai Musiknisakorn, president, said the public could
apply for loans under the project at all branches of the bank from March 3
onwards. The first batch of loans should be issued during Songkran festival
in April.
Each branch will be able to accept 100 applications and
expedite permit authorization of the loans since the amount is very low.
The project is divided into two parts. The first one
involves loans for construction of houses on the applicant’s land on the
condition that the borrower is between 20 to 65 years of age. The borrower
is required to have a steady job with an income of at least 6,000 baht per
month.
The maximum amount that can be borrowed is 300,000 baht
and people can build a house according to the bank’s design or a design of
their own choice. The loan term can extend to a maximum period of 30 years.
People can also borrow money to buy a house from a
housing estate that is part of the bank’s project. Civil servants and
state enterprise workers can borrow 100 percent of the amount; while those
in other professions can borrow a maximum 90 percent; if other conditions
are similar to the first category.
The bank will charge an interest rate of 3.50% in the
first year, 4% in the second, and 4.50% in the third year with a floating
rate to apply after that.
To control expenses and keep within the budget, Somkid
told the bank that it should coordinate with contractors in provinces so
that those who want to build a home according to the bank’s design do not
have to find a contractor of their own.
BTG Golder hosts environmental
seminar in Laem Chabang
A seminar aimed at providing useful information and
enhancing environmental awareness in the industrial sector was held at Laem
Chabang Golf Course. John Stasig Moerk, managing director of BTG Golder
Limited, part of Betago Group which produces animal food products, presided
over the opening.
BTG Golder is well known for its international standards
in environmental preservation management.
Discussions focused on management techniques geared to
bring industry operations up to international standards. Methods which
result in long term improvements on environmental issues will be provided by
the BTG.
Jay Babin, BTG Golder environmental services director
added that he hopes the seminar will prove useful in preventing noise
pollution, improving wastewater treatment, smoke emission and other dangers
to the environment.
Government’s assets conversion scheme
aims to wipe out poverty in six years
According to the government’s assets conversion
program, owners of non-transferable land titles; intellectual property
rights; machinery ownership and rental rights; and occupation rights to
public property can use these non-property assets as part of collateral to
apply for loans.
Prime Minister Thaksin Shinawatra hopes that the scheme
will give low-income earners more channels to access bank loans, which it
says will boost overall lending. Thaksin has said that the program will
provide a big boost for economic growth in 2004 would contribute to the
eradication of poverty in the kingdom within 6 years.
“Then there will be no more people living below the
poverty line of US$1 (42.9 baht) a day,” the prime minister said.
However, although local banks have paid lip service to
the idea, most banks are reluctant to accept non-traditional assets as
collateral. After the country’s financial crisis in 1997 Thai bankers
suffered huge loses when lenders defaulted, even under the traditional
lending practices. After the meltdown banks seized property assets which
became non-performing burdens for years. Now the most critical criterion for
loans is the borrower’s business plan.
Chatri Sophonpanich, president of the Thai Bankers’
Association, said that banks now view the viability of success in a business
and its cash flow rather than collateral as the determining factor for
lending.
The Small and Medium-Sized Enterprise Development Bank of
Thailand said it had initially decided to grant loans amounting to only 30
percent of the appraised price of intellectual property rights because of
their volatility, especially in the technology sector.
The government is putting pressure on the state-owned
banks to cooperate with the scheme. But they have already suffered huge
losses and mass defaults at this stage could leave them insolvent.
But the new scheme fits in with Prime Minister
Thaksin’s plans to revitalize the nation’s economy at the grass-roots
level, which include the people’s bank, the village fund, and debt
forgiveness for small farmers. (TNA)
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