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

“SMART” ID cards for security at Laem Chabang Port

Record car sales expected in spite of high oil prices

Hospitals rush to introduce one-stop service for AIDS patients

Pilot projects to boost village economies

Thai beef has bright future

Tax reduction for energy-efficient plants

Campaign underway to reduce chemical fertilizers in agri sector

Vocational schools to develop low-price computers

Housing loan interest rates unlikely to rise

Energy-saving program stepped up

Pak Panang project given full go-ahead

“SMART” ID cards for security at Laem Chabang Port

The Laem Chabang Port in Chonburi Province plans to use “SMART” cards to increase security. Visitors to the port will be given the latest security identity tags on par with other international ports, according to the director of Laem Chabang Port, Theerayuth Thumanond.

The scheme should be operational within the next two months. Tenders have been called to install the necessary technical equipment and produce the “SMART” identification cards.

Theerayuth said the improvement in security was necessary to prevent incidents occurring which could tarnish Thailand’s reputation as a safe country. A “SMART” identification card will contain a photograph and personal information, including employer, job title, name, address and so on about the ID cardholder.

The Laem Chabang Port will bear the expenses of introducing the “SMART” cards for its employees, but private businesses will have to cover the cost of providing their staff with the “SMART” IDs. The Laem Chabang Port authorities will be responsible for issuing the “SMART” identification cards.

All port personnel, shipping staff, and truck drivers will have to wear the “SMART” identification cards, or access to the port will be denied, Theerayuth said. (TNA)


Record car sales expected in spite of high oil prices

Thailand’s sales of automobiles this year are likely to be an all time record high, according to government officials. Despite constant rising oil prices, domestic sales of vehicles are expected to reach a record high of 630,000 units, according to the Chairman of the Federation of Thai Industries (FTI), Ninnart Chaithirapinyo. The country’s continuing strong economic growth and low interest rates have helped boost car sales, Ninnart said.

Total domestic vehicles sales in the first half of this year were almost 300,000. Traditionally, vehicles sales tend to increase in the second half of the year, so the country’s motor industry is now projecting total sales of at least 630,000 units for the whole year.

Originally the industry target for 2004 was 600,000, but in the light of sales so far, the target has been revised upwards. Automobile sales this year seem certain to surpass the previous record of 586,000 vehicles. This was achieved in 1996, the year before the Asian economic crisis hit Thailand.

Ninnart said he supported the government’s plan to revise the excise tax on vehicles. This would result in higher taxes for vehicles with an engine capacity of above 2,400 cc, in line with the country’s energy conservation policy.

However, the government’s proposed 15% excise tax rate for small vehicles (with an engine capacity of less than 1,500) may violate Thailand’s obligations under the AFTA. Member countries have already agreed on a 0-5 percent tax reduction for both domestic and imported vehicles. Tax differentials may also lead to an influx of imported vehicles into Thailand.

The sharp reduction in excise tax on small-engine vehicles may not significantly help reduce the country’s oil consumption since most of the vehicles used to transport goods and agricultural products do not fall in into this category, Ninnart said. (TNA)


Hospitals rush to introduce one-stop service for AIDS patients

The Bangkok Metropolitan Administration (BMA) recently revealed that it is accelerating plans to introduce a one-stop service for AIDS patients in nine of the hospitals under its jurisdiction.

Dr. Prawit Patarawicha, director of the BMA’s Medical Service Department, said that the first hospital to introduce the one-stop service would be Taksin Hospital.

The service will include advice and suggestions from social workers, as well as medical treatment from doctors and the provision of anti retroviral drugs. Treatment will also be provided for diseases often related to AIDS, including tuberculosis. The Taksin Service Center will initially open every Thursday afternoon. (TNA)


Pilot projects to boost village economies

The prime minister has announced plans to go ahead with pilot projects which will pump an economic stimulus of 20 billion baht into villages across the country. The key idea of the twenty-billion-baht-plan, called the SML, (small, medium and large) would allocate funds to all villages for the local authorities to manage. The amount they receive will be based on the size of the village.

Small villages with less than 200 households will receive 200,000 baht each per village, medium-sized villages with 200-400 households, 250,000 baht, and large villages with more than 400 households would receive 300,000 baht.

The prime minister dismissed objections to the scheme saying the plan aims at empowering people at the grass-roots and will help reduce the authority of the government - in line with the government’s decentralization policy.

“Highly-educated people living in urban areas do not trust the ability of those in rural areas to manage budgets, but they actually can. We are going to give those poor people more opportunities to make their lives better,” said the PM. (TNA)


Thai beef has bright future

The Agriculture and Cooperatives Ministry has urged local farmers to try to meet the local appetite for high quality beef dishes, using steers’ beef. About 26,000 steers are currently needed by the local market a year, according to the ministry’s officials.

However, the local capacity to produce high-quality beef falls far short of actual demand. Currently, there are only two co-operatives producing most of the steers’ beef for the upper-end of the market, fine restaurants and department stores. Their combined production capacity of 9,000 animals a year meets around a third of the market demand. The director of the Cooperative Promotion Department, Boonmee Juntaravong, said that the government had planned to support the production of beef to meet the need of the high-end market, and later for export.

Steers’ beef comes from steers raised in an enclosed area, fed and fattened before they are slaughtered. As a result, the meat is of a higher quality than that from beef cattle. This quality beef is a lucrative business. It costs around 80 baht per kilogram to produce and fetches as much as 300 baht a kilogram on the market. (TNA)


Tax reduction for energy-efficient plants

The Thai government is considering tax concessions for energy-efficient factories. A three-year program of tax incentive is being discussed, including reduced import tariffs on energy-saving equipment and devices for industrial plants, tax allowances on the amount of energy saved after the installation of energy-saving equipment and devices by industrial plants, and tax incentives to promote local manufacturing of industrial energy -saving equipment and devices.

Thailand’s industrial plants consume more than a third of the country’s total energy consumption. The government hopes that these tax incentives will contribute to a reduction in the country’s energy usage. (TNA)


Campaign underway to reduce chemical fertilizers in agri sector

The Department of Land Development has revealed its strategy plans for the year 2005, which will see a concerted campaign aimed to encourage farmers to steer away from the use of chemical fertilizers. Ard Somrang, director-general of the Department of Land Development, said that next year’s strategies would focus on reducing the use of chemical fertilizer and other chemicals in Thailand’s agricultural sector.

The department hopes to be able to reduce the use of agricultural chemicals by 50 percent next year. This year the department has campaigned to reduce chemical use by 30 percent, with a series of exercises designed to encourage the use of organic fertilizer and biotechnology products.

It has been projected that the use of organic fertilizer would slash agricultural costs by 10 percent, boosting revenue by 2,500 baht per year for each farming family.

One success story was provided recently by Somsak Kreuawan, a durian farmer from Rayong Province. For the past four years, Somsak has been following government campaigns to reduce the use of chemical fertilizer on his land. Somsak says that by slashing his use of agricultural chemicals, he has cut production costs by as much as 80 percent. While conceding that his overall income has remained virtually unchanged due to the volatility of crop prices, he says that the use of organic fertilizer has boosted the fertility of his land and led to a better environment to live and work in. (TNA)


Vocational schools to develop low-price computers

Thailand’s vocational schools will begin marketing their own brand of locally-assembled computers within the next six months, according to a senior education official. The price of the computers will be lower than the current market brands and will be sold under the trademark of “VEC” - an abbreviation for the Vocational Education Commission, its general secretary, Veerasak Wongsombat revealed.

Under the commission’s scheme, hundreds of vocational schools throughout the country will be ready to launch their first batch of computers on the local market with the next six months. “Many of the parts of our computers will be made by our students. Our purpose is to show that our kids have developed strong skills in high-technology,” Veerasak said.

“Many technological innovations in Thailand have been created by vocational students and now benefit the country as a whole. For example, ten of the country’s vocational schools have been chosen to join the Army’s project and produce parts for 500 four-wheel-drive trucks that are to be used for military purposes,” Veerasak said. (TNA)


Housing loan interest rates unlikely to rise

Interest rates on housing loans are unlikely to increase for the rest of this year since competition in the home loan market is still stiff, according to a leading banker. Laddawan Thanathanit, senior vice president of Bangkok Bank Plc, projected that the property business would continue to grow in the second half of this year, given the steady growth in the country’s economy, hefty consumer confidence, and higher demand for residences. Under these circumstances, the housing loan growth should continue to gain momentum.

However, interest rates on the loans were unlikely to rise within the rest of this year because competition in the loan market remains fierce. At the same time, Laddawan forecast interest rates would not decline during the rest of the year. She said she did not expect the interest direction would have an effect on people’s demand for their own homes. On mounting concern that there was more speculation on real estate due to low interest rates, she said the information she obtained did not indicate the speculation had increased so significantly that it could affect the economy. Presently, more purchases of real estate stemmed mostly from real demand and not speculation, she added. (TNA)


Energy-saving program stepped up

The cabinet has agreed to step up its energy-saving program, according to a deputy government spokeswoman announcement. The cabinet has been pleased with the results of a recent national campaign so far which have produced a fall in oil consumption of 5.8 percent.

Consumers and entrepreneurs have cooperated in the campaign, especially the closing of gas stations from midnight to 5 a.m. Throughout the country, more than six petrol stations in ten are closed during the voluntary curfew period.

The government is now looking for more cooperation from the business sector. Companies and individually owned billboards have been asked to switch them off after 10 p.m. So far owners of more than seven hundred advertising boards have cooperated.

The government recently also announced a new automobile tax structure which benefits those cars that conserve energy. Cars with new technology or which have switched from oil to other fuels, like natural gas, hydrogen, or electricity, will be taxed at the lower rate of 15%. This lower rate is intended to encourage Thai consumers to turn to automobiles which use less fuel.

The government is also trying to promote the production and use bio-diesel. A bio-diesel factory was built in the northern city of Chiang Mai. The hope is that the fast food restaurants in the region will be encouraged to use bio-diesel.

In another government fuel scheme - a combination of bio-diesel and diesel - will be sold twenty satang (0.20 baht) cheaper than diesel. It will be tested on 1,200 local taxis. If the combination works, the project will be extended to several provinces, including the eastern province of Chonburi, and the southern provinces of Phuket and Surat Thani, according to the deputy spokeswoman. The government also plans to increase the number of palm oil plantations for fuel alternatives. (TNA)


Pak Panang project given full go-ahead

Prime Minister Thaksin Shinawatra has given the Pak Panang basin development project the full go-ahead. During his inspection tour before the cabinet meeting in the southern province of Nakhon Si Thammarat, the prime minister said he believed progress on the project was satisfactory. He was told that most of the construction, except for an irrigation canal system, would be completed by the end of September.

The provincial governor reportedly told Thaksin that there were problems though, and they needed nearly two billion baht to complete the five development projects involved in the scheme. The projects include flood control and prevention, the construction of a new road, a public health project, a market for local farm produce and the renovation of an ancient Buddhist temple. (TNA)