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SET urged to extend minimum commission fee
The Securities Companies’ Association plans to ask the
Stock Exchange of Thailand (SET) and the Securities and Exchange Commission
(SEC) to maintain a minimum commission fee of 0.25 percent for another three
years to ensure that securities firms are ready to face financial
liberalization in the near future.
Kampanart Lohacharoenvanich, the association’s president, said that its
committee had resolved to ask for the extension of the minimum commission
rule, which is originally scheduled to expire in January 2007, so that
securities companies have time to adapt to the commission fee
liberalization.
Upon the completion of the extension period, he said, a ladder-style
commission fee would be adopted based on the trading value of each client.
He said the association sees a need to extend the rule because the
securities business in Thailand is still not sizable and revenue comes
mainly from securities trading.
Should the minimum commission fee be liberalized immediately, many small
securities firms would be unable to compete with large ones and might
withdraw from the market, he noted.
He said competitors in the securities business should pay more attention to
providing quality service rather than pricing strategy.
Kampanart said the association had set up a working group to gather reasons
for the need to extend the rule and would submit them to the SET and SEC for
consideration and approval. It is believed that a final conclusion on the
matter would be made within the next three months, he added. (TNA)
EGAT plans for future unprivatized
The country’s biggest state power utility EGAT held a
top-management meeting last Monday to discuss its future following the
Supreme Administrative Court’s verdict last week stating that its
privatization plans are illegal.
EGAT Governor Kraisi Karnasuta said after the meeting amongst EGAT
executives from around the country that a number of clarifications were
made, including share buyback from all EGAT employees, and how to handle
business contracts in the aftermath of the Supreme Administrative Court’s
verdict.
Kraisi said that there should not be any problems regarding contracts that
have already been finalized and committed.
“It’s only a question of the status of the contracting party, whether it’s a
state enterprise or public company,” he said about the finalized contracts.
However other contracts under negotiations will not be signed until EGAT
receives guidelines from the Council of State. For now, EGAT’s status as to
whether it is a public company or a state enterprise is not yet clarified.
Now that it cannot raise funds in the capital market, EGAT needs to
reexamine its financial liquidity. If it does not have enough in the coffers
to implement various projects such as power generation plants, or for an LNG
joint venture with state energy firm PTT, it may ask its subsidiaries to
implement these new investment, said Kraisi.
According to a source, the verdict may also potentially put an end to EGAT’s
plans to set up a telecoms subsidiary to operate in fiber optic network
nationwide because the business plan was drawn up during the period when
EGAT was transformed from a state enterprise into a public company last
year.
Nevertheless, the contract that EGAT clinched with private operators TT&T
and True Corporation in which these two companies would lease EGAT’s fiber
optic network at 120 million baht a year will remain unaffected. EGAT should
continue with this business in order to earn supplementary income to support
its plan to give its staff a pay raise.
Reacting to the civil society organization’s announcement that they will
continue to revoke privatization of other state enterprises, caretaker
Energy Minister Viset Choopiban instructed energy firm PTT to review legal
steps that led to the listing of PTT on the stock market in order to explain
the matter to the public. (TNA)
Exports surge higher than expected in February
Thailand’s exports in February increased by 23 percent
against 11.9 percent projected earlier due to the improved global economy,
according to the Fiscal Policy Office (FPO)
Ekniti Tanprakas, director of FPO’s Macro-Economic Analysis Group, said that
the country’s exports in the month reached US$9.52 billion in value, up 23
percent against US$8.67 billion, or an increase of 11.9 percent from the
figure forecast earlier.
Exports rose higher than expected because the global economy, particularly
that of China, Europe and Japan, has picked up.
Imports totaled US$9.8 billion, up 19 percent, against US$9.36 billion, or a
rise of 13.1 percent from what was earlier expected.
This resulted in the country’s trade balance in February experiencing a
deficit of only US$286.7 million, lower than expected at U$691 million.
Should the global economic situation improve, the trade deficit for the
entire year would be lower than projected.
Ekniti insisted that the higher-than-projected growth of the exports in
February did not mean FPO made the wrong estimate. He said the better-than
expected surge in exports stemmed from the improvement on the world economy.
He believes that exports and imports in March would also pick up in the same
direction of the improved global economy. (TNA)
EU to compensate Thailand on quota after political expansion
The European Union has agreed to compensate Thailand for
economic losses resulting from the EU enlargement on Thai exports.
Apiradi Tantraporn, director-general of the Trade Negotiations Department,
said an exchange of letters agreeing to the compensatory measures was
conducted through the Office of the European Commission’s Delegation to
Thailand.
The European Union has agreed to compensate Thailand for market
opportunities lost as a result of the EU enlargement on May 1st, 2004 when
ten more countries joined the body to increase its membership to 25 nations.
Under a new agreement, which will be effective “soon,” the EU will allow
Thailand to export tuna-based products tax-free up to a total amount of
1,816 tons. Beyond that, Thai tuna exports will be subject to 24 percent
import tariffs.
For processed fish products made from sardines, the EU has agreed to
allocate 1,410 tons of tax-free imports for Thailand, while export outside
that quota will be subject to 25 percent import tariffs.
For rice, the EU is planning to allocate an overall tax-free import quota of
25,216 tons, of which Thailand will get a share of 1,200 tons. (TNA)
Customs Dept instructed to strictly prevent smuggling of sugar
out of country
Caretaker Deputy Prime Minister and Commerce Minister
Somkid Jatusripitak recently instructed the Customs Department to strictly
prevent any smuggling of sugar out of the country in a bid to ease the local
supply shortage.
Speaking after chairing a meeting with senior officials of state agencies on
proper understanding of the distribution of sugar on the domestic market, he
conceded that the local sugar shortage problem has continued to drag on.
He has invited major sugar producers to discuss ways to cope with the
problems. They had promised to fully cooperate with state agencies to
prevent the smuggling of sugar to foreign countries, particularly Cambodia,
he said.
With the cooperation of many parties in the public and private sectors, Dr.
Somkid said he was confident the sugar shortage would ease and the situation
would return to normal soon.
In order to curb the smuggling of sugar out of the country, he said, the
Customs Department chief pledged to take strict measures and assign
officials concerned to closely inspect all border checkpoints.
The caretaker deputy premier added that the Revenue Department would be
asked to check backdated taxation on arrested smugglers of sugar.
To ease people’s suffering due to the sugar shortage in particular areas, he
said, the Internal Trade Department would open sugar distribution points in
these areas. (TNA)
PTT chief affirms privatization is lawful
PTT Public Company Limited’s President Prasert Bunsumpun
last Tuesday affirmed that the privatization of the country’s giant oil
trader was made in accordance with all proper legal proceedings.
He said PTT is ready to clarify information on the privatization process.
The company wants to affirm that it was privatized in a lawful manner, and
has not caused any damage to consumers.
Prasert also revealed that PTT would not yet raise local retail prices of
all categories of oil over the next few days despite the high volatility of
global fuel prices.
The crude oil price in Dubai increased to US$57 per barrel last Monday,
while diesel and gasoline prices in Singapore stayed at around $70 per
barrel.
At present, a marketing margin obtained by the company stands at
approximately 0.90 baht per liter, which is considered an acceptable level.
He said the company’s decision not to raise retail fuel prices had nothing
to do with the current political situation. (TNA)
Cash-strapped Finance Ministry asked to reschedule 5 billion baht debt with GSB
The Cabinet today approved the Finance Ministry’s request
to extend repayment deadline for 5 billion baht debt owed to the Government
Savings Bank.
Caretaker government spokesman Surapong Suebwonglee said apart from the debt
rescheduling, the caretaker Cabinet endorsed the Finance Ministry’s new
flexible approach to foreign debt management for the budget year of 2006.
The Finance Ministry was originally scheduled to redeem five billion baht
worth of promissory notes for the Government Savings Bank. However, to
maintain the cash flow at the level required for budget disbursements due
during April and May, it has to roll over this five billion baht repayment.
The cash flow has to be sustained because it is not until the first week of
June that tax revenues from personal income taxes will enter state coffers.
This batch of promissory notes will therefore be extended for another year
at the annual interest rate of 2 percent. As a result, total funds for
public debt management to cover budget shortfalls will be increased from 260
billion to 265 billion baht, according to Dr Surapong.
Under the new approach of foreign debt management endorsed by the Cabinet,
the Finance Ministry will be more flexible when considering various means of
managing foreign debt. Prior to this, the Finance Ministry could only
refinance a certain amount of foreign debt under certain means, such as
foreign currency SWOP, roll-over or refinancing, and each time the Finance
Ministry wanted to go over the allocated limit, it had to seek Cabinet
approval.
The new approach will give the Finance Ministry more leeway in choosing the
most appropriate way under financial market circumstances to manage foreign
debts totaling 132 billion baht on part of the government and 193 billion
owed by state enterprises. (TNA)
Caretaker Finance Minister reiterates that budget is sufficient
Caretaker Finance Minister Thanong Bidaya reiterated that
the ministry has sufficient budget for spending under the current economic
conditions.
He said the ministry still sees no need to seek cabinet approval for an
application of additional loans to boost its cash flow.
 Finance
Minister: Don’t worry about the government going bankrupt.
The ministry would not seek more loans through issuance of fiscal bills as
part of efforts to manage its liquidity.
He stressed that the ministry has enough funds to accommodate the volatility
of the economy at present. He does not want people to be concerned about the
government going bankrupt.
However, he suggested state agencies, particularly the Comptroller General’s
Department, manage their existing cash flow with caution.
They should not enjoy an excessive disbursement of the budget. Instead, they
must try to ensure that each state agency disburses money for efficient
spending, he said. (TNA)
Import tariffs on automobiles among ASEAN members to be reduced to 0%
Tariffs on automobile imports among member countries of
the Association of Southeast Asian Nations (ASEAN) are likely to be reduced
to zero percent over the next five years.
Director-General of the Customs Department Sathit Limpongpan said in a
seminar on Thailand’s Detroit of Asia Policy that the automobile import
tariffs among the 10 ASEAN member countries could be reduced to zero percent
by 2010-2011. The move is in accordance with the ASEAN Free Trade Area
(AFTA) Agreement.
Free trade area (FTA) agreements that the Thai government has already signed
and are soon to sign with trading partners will result in a drop in
automobile import tariffs, said Sathit.
However, he urged local automobile manufacturers to improve their
competitiveness amid growing competition on the world market.
The Thai Customs Department chief proposed that the ASEAN member countries
impose import tariffs on automobiles at the same rate to avoid distorted
prices.
He said that The Thai Customs Department would join its counterparts in
other ASEAN member nations to study and formulate the proposed single import
tariff rate for automobiles within the grouping.
The proposal was submitted to caretaker Finance Minister Thanong Bidaya for
further consideration and action, revealed the Thai Customs Department
chief.
ASEAN now groups Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Myanmar. (TNA)
Thailand’s first derivative market to draw great attention upon inauguration
Thailand’s first derivative market is projected to draw
great attention when it is officially inaugurated on April 28, according to
an industry executive.
Nithit Pukkanasutr, president of Ayudhya Derivatives Co, said that he
thought it would take approximately 3-6 months to assess how attractive the
trading of derivative products would be once the derivative market opens for
formal trading.
However, he believes the market would draw much attention, particularly when
a larger number of new derivative products are offered for trading in the
system.
He views that the country’s current political confusion would not affect
trading of derivative products, although it had begun to have an impact on
investment sentiment on the Stock Exchange of Thailand (SET).
In contrast, the opening of derivative product trading, while the stock
market is sluggish, could draw investors’ attention because they could
profit from both upward and downward trends of the market, said Nithit.
(TNA)
ADVERTORIAL: Apple Honey
Following the successful introduction of ‘Blackthorn
Cider’ from Apple Honey to Thailand in 2003, Apple Honey is now proud to
announce two further new products due to requests from consumers to broaden
our portfolio of ciders to suit a wider spectrum of taste.
 For
those of you who are not familiar with ‘Blackthorn Cider, it is a household
name in the UK: Blackthorn Cider is an ice cold filtered cider made from
only the finest English cider apples. Blackthorn is the leading brand and
the fastest growing amber cider in the off trade + 10% vs. Stongbow (+5% on
an MAT Basis).
Blackthorn is the official cider of the Glastonbury Music Festival.
Blackthorn branches used to be burnt as incense to ward off evil spirits –
today people enjoy Blackthorn cider for its genuine qualities of strength,
taste and refreshment. Thirst come, thirst served! 440ml can 5.5%.
The Second one on stage is Gaymers “Olde English”. This is a medium dry
cider made using a unique blend of dessert and cider apples giving it a
sweeter taste. Gaymers ensure that this delicious refreshing cider is of the
highest quality. Gaymer’s believe ‘Olde English’ to be the gold standard in
English ciders. Gaymers Olde English, England at its best! 440ml can ABV
5.3%.
The last but not least on stage is “Natch” Strong Dry Cider. (Previously
known as Taunton Natural Dry). Natch has a clean crispy taste; Natch is a
firm old favorite with those hailing from the West Country in the UK. Never
before has Natch been sold outside a 70 mile radius of its home town of
Shepton Mallet Somerset. Introduced during the festive season, just as a
special, it sold out quickly! Since then, there have been many requests to
re-stock! Due to popular demand Natch is here to stay in Thailand! Total
refreshment for all occasions. Natch Original Strong Dry cider - A west
country Tradition! 500ml can ABV 5.2%.
As you can see our ciders are top quality premium ciders and fresh off the
line from the manufacturer before exporting to Thailand, holding a long
shelf life on arrival here.
All the products are available throughout Pattaya, Bangchang, Rayong
including Foodmart and Friendship supermarkets. They can also be found in
major tourist destinations in Thailand such as Phuket, Koh Samui, Koh
Phangan, Koh Tao, Koh Chang, Hua Hin, Bangkok, Chiang Mai and Udon Thani. We
are currently working on other destinations.
Apple Honey ‘The Cider Company’ welcomes all enquires, contact Num, English
and Thai, at 038 716224, or Selina at 068498923.
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