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

Cash Converters opens in Pattaya

Halal food industrial estate to be set up in southern region

NPLs currently stand at more than 600 billion baht

Village irrigation schemes to get government funding

Singapore Property Show finally gets go ahead

MOC launches Thailand Marketplace

Thai herbal products developed for patent registration

Higher rates will attract foreign capital

Chonburi Tourist Visa cards now on sale

Singapore slashes tax 50 percent

Fuel price peg expected to be lifted in mid 2004

SET fluctuation stems from ambiguity, says PM

Cash Converters opens in Pattaya

The renowned second-hand center, Cash Converters officially opened on the second floor of Carrefour Department Store after 3 months of pre-launch promotion.

The hundreds of people who turned up for Cash Converters’ grand opening almost caused chaos, but Cash Converters’ manager Simon Hirst made sure everything was kept under control.

Thousands of people waited outside the store from early morning to be the first to view the various items on sale, which almost led to chaos, but luckily all were under control. Cash Converters’ manager Simon Hirst managed the long-awaited event.

Various products on sale included TV sets, Hi-fi systems, accessories, musical instruments, electrical appliances and gadgets, mobile phones, cameras, video cameras, car audio systems, VCD, DVD players, CDs, and more.

Cash Converters is the world’s largest second hand outlet with 500 branches in 23 countries. The branch in Thailand is the ninth in Asia and the third in Thailand.


Halal food industrial estate to be set up in southern region

Thailand is planning to open a halal food industrial estate, the first of its kind in the country, in kingdom’s southern region. The food estate will most likely be set up in Pattani Province. Food consumed by Muslims requires special production and handling methods which conform to religious regulations.

Damrong Chaiyavanont, Chairman of the Pattani Chamber of Commerce, told reporters that a private firm, Matani Industrial Co., had proposed to set up the halal food industrial estate in Panare District in Pattani. “The Pattani Chamber of Commerce has helped submit the proposal to the government, and is expected to know the result by next month”, Damrong said.

If the proposed plan is approved, it is expected to help improve economic conditions of the three southern border provinces, as it is anticipated to attract a number of investors from Malaysia, Indonesian, Brunei, and even Bangkok, according to Damrong. (TNA)


NPLs currently stand at more than 600 billion baht

Non-performing loans (NPLs) held in the financial institution system stand at more than 600 billion baht, or 12.84%, of total outstanding loans at current, with the main portion incurred by private banks, according to the Bank of Thailand (BOT).

At the end of January 2004, NPLs in the system totaled 619.32 billion baht. Of this, 591.04 billion baht, or 13.48%, of the outstanding loans was held by local banks, and 28.28 billion, or 6.4%, by foreign banks.

NPLs held by state banks totaled 95.76 billion baht, as those held by finance companies and credit fanciers stood at 22.25 billion and 431 million. The central bank reported most NPLs had been already transferred to assets management corporations.

NPLs, which remained unsettled from the debt-restructuring process, totaled 444.56 million baht as at the end of January. Of this, 40.95 million baht was held by private banks, 388.59 million by state banks, and 15.02 million by finance companies. (TNA)


Village irrigation schemes to get government funding

The government is set to allocate 455 million baht for village irrigation schemes this year as part of its policy of eliminating drought within the next six years.

Director-General of the Department of Water Resources Surachai Sasisuwann warned that this year’s dry season could see severe droughts across the country. Surachai said that the department would seek out water storage facilities for villages across the country, to ensure that all villages had sufficient water for consumption.

Two of Thailand’s major dams - Bhumibol and Sirikit - are only 80 percent full at present, while population increases are putting a major strain on the nation’s water resources.

A recent meeting of the National Water Resources Commission to prepare for this year’s water crisis approved the budget of 455 million baht to pay for 169 irrigation schemes across the country.

The government of Prime Minister Thaksin Shinawatra has put drought at the top of its political agenda, and has pledged that problems associated with drought will be successfully dealt with over the next six years. (TNA)


Singapore Property Show finally gets go ahead

The first Singapore, Phuket and Samui Property exhibition will be held from Friday, March 5 to Sunday March 7.

This year, the exhibition will also introduce properties from the Pattaya and the Eastern Seaboard region.

The first Singapore, Phuket and Samui Property exhibition will be held from Friday, March 5 to Sunday March 7, and this year, the exhibition will introduce properties from the Pattaya and the Eastern Seaboard region.

The exhibition will still give exhibitors benefit from the 2004 selling season and will precede the two week Easter holiday period.

Originally delayed due to the SARS outbreak, the new venue for the exhibition will be the prestigious Raffles City Convention Centre in the Swissotel The Stamford Singapore, a Raffles International Hotel.

The venue is ideally located in Singapore with an MRT station, parking and all the facilities of Raffles Plaza and major restaurants and shopping centres right on the spot.

Although confirmation of the venue has come quite late, all advertising and marketing will be in place. “It has been very difficult to confirm a venue in Singapore,” says exhibition director, Graham Doven. “The long period of SARS caused massive cancellations, and created a huge back log of weddings and business functions.”

“We have been under constant pressure from many major developers in Phuket and Samui to get to Singapore, which has shown a strong growth over the last year, so we can’t afford to let the opportunity pass, especially in such a good venue.”

The Singapore exhibition will be the first on the calendar for 2004, with events planned for Almaty, Kazakhstan, a fast growing market of expats, Dubai, Shanghai, Moscow, Bangkok and Hong Kong.

The last two Hong Kong exhibitions were very successful with the 2003 event generating over 200 million baht in contracts signed at the show.

Immediate details of the Singapore exhibition can be obtained by calling Graham Doven on 01 897 0225. Detailed information on the website will be available shortly.


MOC launches Thailand Marketplace

The Ministry of Commerce (MOC) is teaming up with the private sector to launch ‘Thailand Marketplace’ as a way of penetrating foreign markets and boosting Thai exports, according to Deputy Commerce Minister Pongsak Ruktapongpisal.

The strategic offensive is designed in accord with the government’s policy of promoting the global competitive ability of Thailand’s small and medium-sized enterprises (SMEs).

Noting that SMEs accounted for over 80 percent of Thai manufacturers, Pongsak said, “The Marketplace was designed to create new marketing channels for Thai goods, as well as expand existing ones and will act as a one-stop service for entrepreneurs, focusing on cooperation between foreign markets and Thai SMEs.”

“The key to this cooperation will be marketing administration through the strategic use of information technology and training in administration, finance and publicity. The project will boost the recognition of Thai goods abroad, while promoting sustainable export growth. The initial target markets will be China, India, the Middle East, the Association of Southeast Asian Nations (ASEAN) and Europe,” Pongsak said.

The scheme will also integrate with the government’s policy of transforming Thailand into a ‘global kitchen’, with a focus on food products, Thai restaurants, tableware. Other target products will include spa products, cosmetics, the service sector, fashion, construction materials, furniture, gifts, automobile components and One Tambon One Product (OTOP) goods.

Ponsak forecast that over the next five years, the Marketplace scheme could be set up in 500 locations, helping to create 50,000 new businesses and generating as much as 500 billion baht. (TNA)


Thai herbal products developed for patent registration

Khon Kaen University has developed herbal products in the northeastern region for commercial purpose and to apply for a patent on the products. Dean of the Faculty of Pharmaceutical, Khon Kaen University Bong-orn Sripanichkulchai said that the establishment of the herb development center in 2002 was aimed at preserving Thai traditional remedies from medicinal properties in herbs and conducting the comprehensive research studies to develop Thai herbal products to meet increasing demand in the local and global markets.

Bong-orn said that the center would also assist in the natural resource management and technological transfer to local communities. The natural products which have been already developed for use include oral hygiene products and skin care products made from locally-grown herbs such as Aloe Vera, Tiger Herbal, Siamese Rough Bush, and Turmeric, she said. (TNA)


Higher rates will attract foreign capital

The Bank of Thailand (BOT) said it will set a policy that would see local interest rates staying slightly higher than those in foreign currency markets in a move to attract foreign capital into the country and boost local economic growth.

BOT’s Governor Pridiyathorn Devakula said, “The continued appreciation trend of the baht against the US dollar can be attributed to Thailand’s improved economic fundamentals. The BOT wants domestic interest rates to stay higher than those in foreign currency markets in order to continue the influx of foreign capital into the country. Part of the foreign capital will be invested in the Stock Exchange of Thailand (SET).”

Commenting on the baht’s direction, Pridiyathorn said, “The baht is likely to make further gains against the US dollar due to Thailand’s continued economic advances. I expect local economic expansion this year to be higher than in 2003, with private investment being the driving factor.”

Pridiyathorn said domestic spending still has room to grow and forecasted high growth in Thailand’s export sector. “However, we may not see the 15 percent growth of last year’s high due to a slight reduction in shipments of Thai products to the nation’s the country’s major export markets such as China, United States, the European Union and Japan,” he said. (TNA)


Chonburi Tourist Visa cards now on sale

Triple-pricing now in effect?

Suchada Tupchai

In an effort to boost local tourism, the Chonburi Attraction Club has joined forces with the Tourist Authority of Thailand (TAT) to offer a 20% to 40% discount on gate charges via a scheme called the Chonburi Tourist Visa Card. The promotion is aimed at encouraging Thais to visit the province’s many tourist attractions. The card is only available to Thai nationals.

Niti Kongrut, TAT Central Region 3 director talks about the Chonburi Tourist Visa.

According to Dr. Pichai Sonjaeng, president of the Chonburi Attraction Club and director of the Bangsaen Institute of Marine Science, Burapha University, the idea was raised approximately 6 months ago and became a reality this February. Cards are now on sale at 100 baht each.

A total of 20,000 cards have been printed with over 7,000 being sold. The card enables visitors to save up to 2,000 baht per day on gate charges at 16 destinations, including Underwater World, World Gems Collections, Jems Gallery Pattaya, Ripley’s Believe or Not! Museum, the Bottle Museum, Khao Kheow Open Zoo, Million Years Stone Park & Crocodile Farm, Romance of the Three Kingdoms, Nong Nooch Gardens, Mini-Siam, Sriracha Tiger Zoo, Chonburi Flying Club, Tiffany Show, Sattahip Butterfly Farm, The Sanctuary of Truth and the Bangsaen Institute of Marine Science, Burapha University.

Niti Kongrut, TAT Central Region 3 director said, “It is entirely the idea of the Chonburi Attraction Club and is a definite plus in attracting more local visitors to the province, especially for couples and families.”

The cards are valid until the end of the year and are available at three locations: TAT Central Region 3 Office on Pratamnak Hill, Romance of the Three Kingdoms theme park and the Bangsaen Institute of Marine Science, Burapha University. The TAT is currently running a public relations campaign to promote the card. Further details are available by calling 038-428750 or 038-427667.


Singapore slashes tax 50 percent

Thailand’s dream of becoming a regional energy hub has sparked region-wide competition, with Singapore announcing a 50 percent cut in its corporate income tax in a bid to maintain its market share.

According to Chavalit Sethameteekul, Director-General of the Customs Department, rumors from Thai companies suggest that since Thailand’s launching of its Sriracha oil center, Singapore has banned its businesses from providing Thailand with any in-depth information concerning oil and its related industries.

At the same time, Singapore has slashed its corporate income tax from 10 percent to only 5 percent, following the Thai cabinet’s decision to cut corporate income tax from 30 percent to 10 percent for oil companies within the Sriracha zone.

Chavalit expressed confidence that the launch of Thailand as a regional oil hub would also help solve the problem of the illegal oil trade. With the hub in operation, the prices of oil produced and distributed domestically would fall to the level of oil from Singapore and Malaysia, he said.

However, the government denied that it might follow Singapore’s move in reducing corporate income tax to 5 percent, with a senior energy ministry official noting that the government had only just announced the cut to 10 percent. (TNA)


Fuel price peg expected to be lifted in mid 2004

The government is expected to lift its imposed ceiling on retail gasoline prices in the domestic market in mid 2004, from its earlier plan in March. Praset Bunsumpun, a top executive of PTT Public Company Limited, (PTT), said that it is likely that the government will lift the current peg on domestic fuel prices when oil prices in the world market are expected to drop to around US$30 a barrel.

“When a recent agreement of the Organization of Petroleum Exporting Countries to cut its oil production by 2.5 million barrels a day takes effect on 1 April, oil prices will eventually begin to drop due to decreased demand in the summer,” said Praset.

The government stepped in to curb soaring gas prices in the domestic market on 10 January, and so far, the government’s oil fund has spent about 2.0 billion baht to shoulder the pegged fuel prices, according to Praset. (TNA)


SET fluctuation stems from ambiguity, says PM

Prime Minister Thaksin Shinawatra recently conceded that the ongoing volatility in the Stock Exchange of Thailand (SET) stemmed from ambiguity in net settlement rules, brokerage commission liberalization, and tax reduction extension.

He said the outbreak of an avian influenza was not a key issue eroding investors’ confidence in the stock market now because it had been absorbed by investors.

“Actually, there were three main issues shaking investors’ confidence at the moment. First, the liberalization of brokerage commission fees remains equivocal. In my view, the fees should be determined in both minimum and maximum rates, not be liberalized. Second, the measure to encourage companies to list on the stock market by reducing income taxes to 5 percent will end on September 5. Finally, net settlement rules initiated by the Stock and Exchange Commission late last year remain ambiguous in terms of implementation,” said Thaksin.

The Thai leader said the government would step up efforts to make it clear on the three issues. He said the Security and Exchange Commission (SEC) had been instructed to closely monitor speculative trading, adding that while speculation was usual in the capital market, control was still needed to ensure the stability of the market. (TNA)