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Fuel prices pegged
The government has finally stepped in to curb soaring
gasoline prices in the domestic market, pegging the prices of benzene octane
95, benzene octane 91, and diesel at 16.99 baht, 16.19 baht, and 14.59 baht
respectively.
Prime Minister Thaksin Shinawatra met with top-ranked
officials of the Ministry of Energy at the Government House and said the
government had finally decided to intervene in the domestic oil market after
monitoring the world oil situation, and seeing that world oil prices rose in
an irregular trend against the market mechanism.
“The new intervention, like the one the government
announced during the war in Iraq in early 2003, will be temporary, around
only two months, aimed to curb prices of consumers goods and services in the
domestic market”, Thaksin stated.
Thaksin said the government believed that world oil
prices would continue to drop after the Chinese New Year festival.
“Given the implementation of the oil-price ceilings,
the government sees no reason for local traders and entrepreneurs to raise
their prices of goods and services and all the prices must stay
unchanged”, stressed the Thai leader.
“Another point I have to clarify is that after the
world oil prices begin to drop, expected in early February, the government
will not immediately end the current oil-peg measure, but maintain it for a
certain period of time to collect some money for the oil-fund, meaning that
domestic oil prices will not immediately drop when the world oil prices
decline early next month”, Thaksin said.
It is expected that the government will use no more than
5.0 billion baht to compensate to local oil firms during the pegged
oil-price period, according to Thaksin. (TNA)
Bangkok Bank chief sees no need for merger
Bangkok Bank’s executive chairman Kosit Panpiumrat
reiterated the bank has a sound financial position, and saw no need to lead
a merger with other bancks under the new financial master plan. He said that
the master plan, which had recently won approval from the Cabinet, would
facilitate people’s access to financial services and capital sources.
“According to the plan, commercial banks will be encouraged to merge with
each other; so the number would drop to only 3-4 major banks,” he stated.
Kosit said Bangkok Bank had become a universal bank,
which provides a full range of financial service which gave it a competitive
edge.
Chatsiri Sophonpanich, the bank’s president, said the
bank needed to first study the master plan in detail because it would have
far-reaching effects. (TNA)
Leslie Wright battling the Crab
Long time Pattaya Mail contributor Leslie Wright,
Managing Director of Westminster Portfolio Services, author of the weekly
Family Money column that usually appears on this page, and author of the
inspiring series, “Battling the Crab”, is currently in critical
condition, battling cancer, in ICU room 301 at Bamrungrad Hospital, Bangkok.
Pattaya Mail, as well as all his friends and associates, wish him all the
best. We pray for a speedy recovery.
New consumer protection board to be created
Prime Minister Thaksin Shinawatra has ordered the
establishment of a consumer protection board to boost the protection offered
to Thai consumers. He said that the consumer protection policy committee
would oversee the three agencies currently responsible for consumer
protection.
The agencies include the Food and Drug Administration
(FDA), the Department of Internal Trade, and the existing Consumer
Protection Board. (TNA)
Thai companies go on Iraqi road show
The Thai government sent 13 companies to participate in a
road show on the reconstruction of Iraq to vie for projects worth over US$50
billion. Thailand was one of 19 countries participating in the road show,
which was held in Kuwait on 19-21 January.
Sponsored by Kuwaiti Prime Minister Sheik Sabah Al-Ahmed
Al-Jaber Al-Sabah, the 2004 Iraqi reconstruction road show was the largest
international event of its kind to be held in Kuwait for 50 years.
Companies from the 19 countries, which included those
from the Middle East, Europe, Australia and Asia, proposed projects worth a
total of over US$50 billion. It is thought that the reconstruction of Iraq
over the next five years will cost as much as US$100 billion.
Most of the contractors in the initial stages of the
reconstruction process will be US and UK companies. Nonetheless, the Kuwaiti
government described the road show as a golden opportunity for companies
providing equipment for communications in commercial airports, airport
parts, airport services, transportation equipment, construction services and
security services.
The Kuwaiti government has also noted that all of
Iraq’s ports require substantial and urgent development, while there is
also an urgent need for health services, agricultural and environmental
services, air conditioning systems, information technology and hotels. (TNA)
“Baht is too strong,” warns BOT governor
Bank of Thailand (BOT) Governor Pridiyathorn Devakula has
echoed media warnings that the recent appreciation of the Thai currency
could prove damaging to the nation’s economic growth, and spoke of the
necessity for intervention.
Describing the baht’s recent rise to 38.90 baht to a US
dollar as “excessive”, M.R. Pridiyathorn said that the central bank was
keeping a close eye on the situation to ensure that the currency remained at
a suitable level to safeguard Thailand’s national competitiveness.
He attributed the strength of the baht to the huge amount
of foreign capital flowing into Thailand on the back of investor confidence
in Thailand’s economic situation, while stressing that currency
speculation was not involved.
“The current appreciation of the baht is not due to
speculation by foreign investors as in the past. Rather, it is due to the
influx of capital into the stock market,” he said.
The baht has been appreciating for several months,
initially following a similar trajectory to other currencies. However,
recently, while other currencies have begun to stabilize, the baht has
continued to rise. M.R. Pridiyathorn said unless the central bank
intervened, the appreciation of the Thai currency would have an adverse
impact on investments and economic growth. (TNA)
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