BUSINESS NEWS
HEADLINES [click on headline to view story]: 

TGI celebrates its fifth anniversary

Moody’s gives thumbs up to Thai economy

Thailand’s power consumption sets new record on April 8

Central bank to introduce Enterprise Resource Development Planning system

NESDB says war and SARS won’t adversely affect GDP

Finance Ministry say’s VAT to stay at 7% for at least two years

Royal Cliff appoints new recreation & activities manager

Maxxis world brand automotive tire moves into gear at Eastern Seaboard Industrial Estate (Rayong)

Sriracha signs contract with Wastewater Management Authority

Plans to move power plant to Rayong run into local opposition

March auto sales leap 27 percent

TGI celebrates its fifth anniversary

Another milestone in Thai-German knowledge transfer

Elfi Seitz

The Thai German Institute (TGI) celebrated the grand occasion of its 5th birthday, April 3 . A large celebration was held at the Thai-German Institute (TGI) facility in Amata Nakorn to commemorate this special day.

(from left) Dr. Paul Strunk, chairman of the German-Thai Chamber of Commerce, Pairoj Sanyadechakul, senior industry inspector from the Ministry of Industry, Holger Michael, deputy chief de mission of the Germany Embassy and Narong Rattana, Thai director of TGI, during the signing of the MOU.

The visionaries that made it possible: TGI German Director Walter Kretschmar (seated) and TGI Thai Director Narong Rattana. Congratulations TGI!

Honored guests included the Austrian Ambassador Dr. Herbert Traxl, plus Holger Michael the deputy chief de Mission of the German Embassy who appeared for the German Ambassador Andreas von Stechow, as well as Dr. Paul Strunk, the chairman of the German-Thai Chamber of Commerce, and Pairoj Sanyadechakul from the Ministry of Industry, and many high-powered personalities from Thailand’s economic community. Both directors of the TGI, Narong Rattana and Walter Kretschmar were also present.

In his opening speech Narong Rattana said, “We began work in 1998 and we had a mission to promote the development of specialists in Thailand. We have succeeded in doing this. The world’s industrial nations have acknowledged that we have now entered the field of information and communication technology. This new era requires enormous knowledge and ability in order to be able to develop long-term competitiveness in the manufacturing of systems. We prepare our students for this moment. For them everything is possible in these areas.”

Walter Kretschmar, in his as usual charming manner said in his speech, “A birthday is not only an occasion to look back and view accomplishments, but also a time to contemplate the future. This is our 5th anniversary so we are still young. For TGI, that means we still need feedback from our customers to confirm we have fulfilled our task. If you work in the area of training and advanced technology, there is no rest. We must always be a step ahead. We are only as good as our people because our personnel are the most important part of our work.”

“We put 40% of our gross income into the development of our personnel and show our obligation in quality relations,” Kretschmar continued. “But we are also only as good as our international network permits. Around Thailand the newest level of technology and training to ensure long and lasting operations are made possible by intensive cooperation with Germans and other international partners.”

In his congratulatory speech, Pairoj Sanyadechakul, the senior industry inspector from the Ministry of Industry said, “The Thai-German Institute is an important part of the efforts of the government to pass on knowledge of the newest technologies in order to promote the development of Thailand’s skilled workers. Since the Institute began work, they have carried on continuously in assisting in the area of the technical cooperation and passing on of German technical knowledge. The Ministry of Industry will continue to support TGI in its efforts.”

Elfi Seitz (2nd right) presents a bouqet of flowers to Walter Kretschmar (3rd right), German director of TGI, to congratulate him and his team on their 5th anniversary. Also seen is (from left) Peter Malhotra, managing director of Pattaya Mail Publishing, Sue K. from TGI, Dr. Herbert Traxl, Austrian Ambassador to Thailand, Holger Michael from the German Embassy and Dr. Paul Strunk of the German-Thai Chamber of Commerce.

Pairoj explained that Thailand’s SME’s need more support from the government, particularly in the areas of finance, management, technology and training of specialists. TGI plays a central role with its assistance in making Thailand’s SME’s more competitive in the world market.

Pairoj said that if in the year 2005 the German Federal Government terminates its contributions, the Ministry of Industry hopes that TGI will remain active as advisors. He thanked the representative of the German government and all contributors who had helped to arrange this beautiful celebration.

Dr. Paul Strunk said, “TGI has laid the foundation for today’s celebrations and will successfully cooperate for the next 5 years to benefit Thai industry.”

Holger Michael, the representative of the German message, said in his speech that the day’s celebration is symbolic of TGI’s work: “The strength of the innovation is very important, a grandiose show for the exhibitors.” He expressed hope that TGI will successfully work for many years to come.

Young students and children put on an impressive show between the speeches and inspired the several hundreds of guests.

During the event, guests also witnessed the signing of an MOU on the “Integration of Resources and Strategies to Improve Competitiveness in the ICT Age” between four organizations: the Department of Vocational Education, the Department of Skill Development, the Federation of Thai Industry and TGI.

The agreement will run for a period of 5 years. Its aim is the long term development of Thailand’s human resources, with special emphasis on upgrading the capacity of teachers and lecturers - an important factor in industrial development.

The signatories were TGI Thai Director Narong Rattana, TGI German Director Walter Kretschmar, Dr. Payungsak Jantrasurin, director-general manager of DOVE, FTI Chairman Pradphad Phodhivorakhun, and Panich Chitchang, director of the Technical Studies and Training Division of DSD.

A second ceremony witnessed the signing of an MOU on the “Establishment of an Innovation Technology Services Center at TGI”, supported by the Thai and German private sectors. The two signatories were TGI, represented by Thai Director Narong Rattana and German Director Walter Kretschmar, and the Asia Pacific Committee of German Business (APA), represented by Dr. Paul Strunk. The new center would undertake business development, staff training and technology transfer for the benefit of both countries.

After the contract signings the exhibition “Innovation Day” was admired by honored guests and the other visitors and was then followed by a buffet luncheon, with cuisine from all four corners of Thailand.

With plenty of beer, Thai meals and much charm and friendliness from both sides, some guests again and again held their glasses high to toast the well-being of the birthday child, TGI.


Moody’s gives thumbs up to Thai economy

The US-based credit rating agency Moody’s Investor Services has praised the Thai economy and the government’s ability to control economic risk, and forecast that its revenues this year would exceed spending by 79 billion baht.

In its official report on the Thai economy, Moody’s described the Thai economy as having improved, saying that the government was successfully controlling economic risk. This in turn assisted the government in drawing up budgetary and fiscal measures, and boosted domestic consumer confidence.

The Moody’s report also praised Thailand for reducing foreign debts and boosting foreign reserves to US$36 billion, despite debt repayments to the International Monetary Fund (IMF) of US$4.7 billion. The revival of the fiscal sector points to sustainability in that sector.

However, the report also said that it would be some time before Thailand’s financial system had fully recuperated, despite the fact that debt restructuring was carried out by several companies and had now hit 50 percent of the total target figure.

The report blamed the judicial system for hindering debt restructuring among small-scale debtors, while praising the Thai Asset Management Corporation (TAMC) for improving Thailand’s non-performing loan situation, particularly among banks in which the government had intervened.

The report concluded that the revival of the Thai economy in 2002 augured well for the present and future, with the strengthening of the regional economy going hand in hand with the strengthening of Thailand’s fiscal base. (TNA)


Thailand’s power consumption sets new record on April 8

Domestic power consumption set a new highest record on Tuesday, April 8 due to higher demand, as temperatures were on the rise in the mid summer and economic activities were expanding, according to the Electricity Generating Authority of Thailand (EGAT).

EGAT Governor Sitthiporn Ratanopas said the country’s overall power consumption climbed to its peak at 2 p.m. on Tuesday.

“At the time, the overall power consumption in the country reached 17,826 megawatts, setting a new highest record, due to higher temperatures in the summer, as well as rising demand of local manufacturers prior to long holidays this week during the Songkran festival, and the expanding Thai economy,” Sitthiporn said.

EGAT estimates that the country’s power consumption will continue to grow this year, with its peak possibly reaching 17,888 megawatts.

The EGAT governor, however, urged that the public help save energy, suggesting that setting air conditioners at 25 C, and regularly cleaning their air conditioners would help save power bills by at least 10%. (TNA)


Central bank to introduce Enterprise Resource Development Planning system

The Bank of Thailand (BOT) has set aside 280 million baht to improve its internal resources to make them more efficient. BOT’s assistant governor Soawanee Suwannacheep said the bank will introduce an Enterprise Resource Planning system (ERP) to develop its internal resources.

“Initially, the ERP system will be used for the resource development of three projects. The first is a project for the budgeting and inventory accounting system of the whole bank, the second is the setting up of a banknote printing office, and the third project is to develop a computer system for human resource management,” Soawanee said.

She said that the BOT has earmarked a budget of 130 million baht to hire a consultancy firm, while another 150 million baht had been set aside for the development of hardware and software systems for the bank.

The assistant governor explained, “We came up with the idea of the ERP system five years ago but it was delayed because of the 1997 financial crisis. However, we think the time is now right to introduce the system and improve the organization’s capacity.”


NESDB says war and SARS won’t adversely affect GDP

The US-led war on Iraq and the epidemic of severe acute respiratory syndrome (SARS) will not have adverse impacts on the country’s gross domestic products growth, according to National Economic and Social Development Board’s Secretary-General Chakramon Pasukvanich.

General Chakramon projected the two events would last for around two months and cause Thailand to lose around 30-40 billion baht in tourism revenue. However he said this sum is relatively very small when compared with the country’s GDP, which stood at around 5.5 trillion baht. Many Thai tourists postponed their overseas trips and are being encouraged to travel locally instead. The impact on GDP growth is expected to be less than 0.1 percent.

“We have no plan to revise our economic growth estimate of 4-5% for this year until June when the GDP in the first quarter is announced. We will closely monitor the situation. But from our assessment, the overall economy in the first quarter remains favorable. The economy is expected to slow down in the third quarter, but we can step up efforts to stimulate it,” said the NESDB chief. (TNA)


Finance Ministry say’s VAT to stay at 7% for at least two years

Thailand’s Finance Minister Suchart Jaovisidha recently announced that the nation’s value added tax (VAT) will stay at 7 percent for the next two or three years.

“The ministry feels an increase would have a negative impact on consumer confidence,” Suchart said.

Suchart said ordinarily he would be in favor of raising indirect taxes such as VAT and slashing direct income taxes. But the government’s current economic policy is to pursue the consumer-led growth model.

Instead Suchart said he hopes to continue to increase revenue collection, which improved substantially last year. “This would allow for a lower-than-expected budget deficit and curb on expenditure,” he explained. (TNA)


Royal Cliff appoints new recreation & activities manager

Panga Vathanakul, managing director of the Royal Cliff Beach Resort, recently announced the appointment of Worapong Wongarmart as Recreation & Activities manager. Worapong will be responsible for the day-to-day operations of the exclusive Royal Cliff Sports & Fitness Club, as well as all other recreation and activities requirements for individuals and groups.

Worapong Wongarmart

Worapong brings with him a wealth of experience from previous positions he has held, including club manager at the Hilton International Bangkok, Health Club manager at the JW Marriott Hotel (Bangkok) and Club Reception & Activity supervisor at the Capitol Club, part of the President Hotel Group.

The Royal Cliff Sports & Fitness Club, completed in 2000 and available to guests of the resort and members, includes a gym with state-of-the-art equipment, 2 swimming pools, 6 floodlit tennis courts, a jogging track, steam and sauna rooms as well as a games room and a 3-hole practice golf course. The Royal Cliff Beach resort also has an extensive program of recreational activities available throughout the week.


Maxxis world brand automotive tire moves into gear at Eastern Seaboard Industrial Estate (Rayong)

Maxxis International (Thailand) broke ground for construction of its Thailand-based automotive tire-producing plant of 167 rai, at the Eastern Seaboard Industrial Estate (Rayong), developed by Hemaraj Land and Development Plc. Wally Y.H. Chen (center left), president of Chengshin Rubber; David Nardone, Hemaraj president & CEO (center right); H.M. Wu (6th right) assistant vice-president, Financial Dept. and Lenny H.K. Lee (5th right) manager, General Management Office, Cheng Shin Rubber all attended the launching ceremony.


Sriracha signs contract with Wastewater Management Authority

Suchada Tupchai

Chatchai Timkrachang, Sriracha’s municipal mayor, on March 25 signed a management contract with the Wastewater Management Authority (WMA) in the presence of Akkanit Ampawasiri, director of the WMA and Ittiphol Khunpluem, Member of Parliament for Chonburi Province.

The WMA will be responsible for working on water-treatment equipment, quality check-up equipment, and making improvements on the water treatment system. WMA said Sriracha locals should be more concerned about their surroundings and help in protecting their environment. The WMA will also implement an environmental awareness campaign.

Sriracha is one of 8 cities officially urged to improve its water resources by the WMA on October 1 last year. Other cities include Petchburi, Hua Hin, Prachuap Kirikhan, Patong-Phuket, Chumseang Nakorn Sawan, Sakon Nakhorn, Baan Phae-Rayong, and Pattaya City.

Sriracha is a popular holiday destination and one of the most heavily populated districts in Thailand. Its environment needs better preservation, especially water resources.


Plans to move power plant to Rayong run into local opposition

Hopes that plans to re-site the location of a contentious electricity generating plant from Prachuab Khiri Khan to Rayong would be plain sailing were wrecked on April 8 when it became apparent that Rayong environmental groups are fiercely opposed to the move.

Sermrat Wongyuu, deputy secretary general of the eastern branch of the Public Federation for the Environment, said that the Cabinet’s resolution to move the coal-fired power station from Bo Nok to Rayong’s Pluak Daeng District had run up against considerable local opposition. Even without the plant, he said, Rayong was full of pollution, with water sources, the air and the land contaminated with toxins from the province’s industrial estates. And despite the multitude of problems, nothing had been done to solve them.

Urging the Cabinet to review its decision, he accused the Cabinet of passing its resolution without asking the views of local people, and said that no environmental impact assessment (EIA) report had yet been carried out on the relocation plans.

The Cabinet decided to locate the power plant in Rayong after years of stalemate over the Bo Nok project, which was blocked by local residents and environmentalists.

Sermrat described water sources in Pluak Daeng as the province’s lifeblood, and pointed to the fact that the BLCP electricity generating plant in Maptaput Industrial Estate was already causing problems for the areas.

Sermrat said that the public federation would hold a meeting in the near future to call on the Cabinet to rethink its resolution.

“It shouldn’t be a case of them not being able to locate it anywhere else, so they dump it in Rayong, as it will have a direct impact on the public. Rayong is not a dumping ground for pollution, as there’s already so much pollution here we can’t cope with it,” he said.


March auto sales leap 27 percent

A 27 percent rise in automobile sales over March has pushed year-on-year first quarter sales up by 41 percent, with manufacturers predicting sales of at least 500,000 vehicles this year and unprecedented levels of exports.

Ninnat Chaitheeraphinyo, advisor to the Federation of Thai Industries’ automobile industry group, said that overall domestic car sales in March stood at 41,000 vehicles, representing a 27 percent rise on 2002 figures and a continuous increase from sales of 37,769 and 39,661 vehicles in January and February respectively.

This meant that overall sales figures for the first quarter of the year were driven up to around 185,000 vehicles, a 41 percent rise on the previous year’s sales.

Ninnat expressed confidence that annual domestic sales for the year would hit the industry’s forecast of 500,000 vehicles, with another 250,000 vehicles sent for export, pushing overall production to 750,000 vehicles, or 75 percent of total production capacity.

“The increase in car sales can be attributed to low interest rates and the confidence of the Thai public in economic stimulus measures. Despite the fact that sales growth rates in March were lower than those for January and February, this growth can nonetheless be regarded as substantial,” Ninnat said.

Thailand’s automobile usage is still extremely low compared to other countries. In Thailand the average number of people per vehicle is 13.2, compared to 1.7 in Japan, 2.1 in the US, 5.6 in Malaysia, and 6 in Singapore.

As the Asian economy revives, Thailand’s car manufacturers, including Isuzu, Toyota and GM, are investing more money to use Thailand as an export base.

Ninnat said this was positive news for the economy as a whole. “This increase in investment has boosted employment in the automobile sector to 300,000 people, after 30 percent of staff was laid off during the economic recession. At Toyota’s Gateway, they have re-introduced two shifts for production staff and it looks as if more people will be hired in the future,” he noted.