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

PM promises overhaul of chicken industry

Government to shave corporate tax for oil traders

Thais asked to help save energy

Chicken industry chiefs urge talks with trade partners

Establishment of Asia Bond Secretariat approved

PM promises overhaul of chicken industry

Prime Minister Thaksin Shinawatra has pledged a radical overhaul of Thai chicken farming methods in response to the avian flu crisis, saying that farmers will be encouraged to turn to closed farming methods to prevent similar epidemics in the future.

The prime minister unveiled a raft of long-term measures to stem off the swelling tide of concern that avian flu could strike again.

Speaking in Suphan Buri Province, which has been worst affected by the flu outbreak, Thaksin hinted of a mass vaccination program which would be carried out each year before the seasonal migration of ducks from China. But he also conceded that it would be necessary to kill all chickens to halt the immediate crisis.

“We will have to kill all chickens, as well as other kinds of poultry and partridges, even if they do not show signs of disease, in order to prevent the spread of the epidemic. This epidemic has now covered the entire province of Suphan Buri. We must act decisively. Chicken coops must be made free from chickens. They must be sprayed and abandoned for a while before they are used again,” Thaksin said.

“When this crisis is over, I will ask the Ministry of Agriculture and Agriculture Cooperatives to find ways to help farmers make the changes,” Thaksin said. (TNA)


Government to shave corporate tax for oil traders

The government has approved a proposal to cut the corporate tax for oil trading companies from the present 30 % to 10 % to support Thailand’s initiative to become the energy hub in Southeast Asia. The bill is expected to be passed within two weeks.

The Ministry of Energy said it would use PTT Plc, PTT Exploration and Production Plc (PTTEP), and the Electricity Generating Authority of Thailand (EGAT) as the international investment arms for its plans to promote Thailand as an energy hub in the region.

Minister of Energy Prommin Lertsuridej, said the government aims to make the Kingdom a regional hub for electricity, oil, fuel, natural gas, petrochemicals, and cooking gas. Eventually Thailand plans to set up a link with Indo-China which would allow Thailand to supply electricity to other parts of Asia. (TNA)


Thais asked to help save energy

Energy Minister Prommin Lertsuridej is calling on Thai people to help save energy to ease the burden on the government’s fuel price cap. He said gasoline prices in the world market had begun to decline gradually since the Chinese New Year festival. However, diesel oil prices are slightly higher because the demand has increased in Europe, where the weather is now very cold.

The minister said he wanted people to help save fuel consumption since the government is using the Oil Fund to cap prices by spending around 1-2 baht per liter, or 80-90 million baht per day.

Dr. Prommin projected that the fuel situation would return to normal in the next two months, and the government would not need to cap fuel prices after that. He said, however, that the government’s measure on the fuel price cap had kept product prices in the market under control. (TNA)


Chicken industry chiefs urge talks with trade partners

The Federation of Thai Industries (FTI) called on the government to hold a series of talks with its trading partners over the bird flu scare, saying that frank discussions were better than mutual cat-calling.

Speaking about the confirmed cases of bird flu in Thailand, FTI deputy president Kiertiphong Noijaiboon asked the government to hold talks with representatives from trading partners, including the European Union (EU) and Japan, and invite chicken producers to explain their position.

“These talks would help create a joint approach to the situation, with trade representatives advising Thailand on how best to proceed to solve the problem,” Kiertiphong said.

At the same time, Kiertiphong stressed the necessity of cooperating closely with the World Health Organization (WHO), noting that WHO approval of Thailand’s measures to contain the epidemic would considerably boost its international credibility.

Kiertiphong was quick to point out that the bird flu epidemic was confined to egg farms, and was not affecting meat farms.

He explained, “The problem of chicken flu has emerged in open farms, which are all chicken egg farms, rather than farms producing meat for export. If the government gives this information to Thailand’s trading partners, they should be able to understand the situation more clearly. That way, the impact on the chicken meat export industry, which is worth 40 billion baht per annum, will be reduced.”

Meanwhile Wichai Techawattanan, president of the Association of Chicken Producers, Traders and Exporters, said, “The association has edged down exports of eggs, as it fears a domestic egg shortage. Currently eggs are no longer being exported to India, South Africa or the Middle East although they are still being sent to Hong Kong.”

Wichai stressed that these measures had been put in place by the Thai exporters, not because some countries had imposed an import ban.

Domestic prices of eggs have risen to a 10-year high. For example, size 2 eggs now cost 2.80 baht each. The public is being advised to refrain from the consumption of raw eggs, while reassurances have been given that the consumption of cooked eggs is 100 percent safe. (TNA)


Establishment of Asia Bond Secretariat approved

The Cabinet has approved the establishment of the Asia Bond Secretariat Office in Thailand, as proposed by the Finance Ministry.

Government Spokesman Jakrapob Penkair said, “The government has placed great importance on setting up the Asia Bond market. This market could serve as a long-term capital source for member countries and lead to a balanced structure of the money, capital and debt-instrument markets.”

The secretariat office will play a role in monitoring the movement of the money and debt-instrument markets in the region, boost mutual understanding and cooperation among member countries, and develop the demand and supply of the debt-instrument market in the private sector. (TNA)