9 banks to offer 0% loans, as NIA seeks to increase industry innovation

NIA Director Supachai Lorlowhakarn (left) announces the new 0% financing program.

Patcharapol Panrak

Hoping to spur innovation in Thai companies, nine banks will offer zero-interest loans for programs that take advantage of information technology, marketing and finance consulting from the National Innovation Agency.

The NIA, set up in 2003 as an autonomous organization under the Ministry of Science and Technology to address “the country’s declining ranking in the global technology capacity sweepstakes,” reviewed its latest effort to improve the competitiveness of Thai industries at a June 20 workshop at Nong Nooch Tropical Garden.

NIA Director Supachai Lorlowhakarn said many Thai business executives still lack technical and management skills, resulting in limited development of unique products and services in the Thai economy. Following its mission to facilitate cooperation between government, academia and the private sector, the organization is reaching out to banks to provide funding for corporate research and development projects.

Participating in the proposed 0 percent loan would be Ayutthaya, Bangkok, CMB, Kasikorn, Krung Thai, Siam City, Siam Commercial, and Thai Military banks, as well as the Small- & Medium-Size Enterprise Development Bank of Thailand. The loans would support companies “interested in developing innovative businesses” who require support from the NIA, Supachai said.

While the NIA would arrange consulting services, the banks would also create promotional activities, such as workshops, to potential customers and advise on the development of R&D projects.

The NIA already has a list of 10 proposed projects and is encouraging banks to provide financing for efforts increase the knowledge exchange and project management.

Bangkok Airways closes city check-in counter at Makkasan

Domestic carrier Bangkok Airways closed its check-in service at Bangkok’s City Air Terminal, also known as Makkasan Station.

Airline public relations director Nantika Worawan said the service is closed temporarily, as few passengers use the facility on average per day.

Bangkok Airways initially expected some 400 passengers would check in at the City Air Terminal, or about 20 percent of approximately 2,000 travelers using the carrier at Suvarnabhumi Airport. The figure expected was later lowered to 20-50 passengers per day.

Nantika said such low numbers were due to the fact that it was more practical and convenient for travelers to take a taxi directly to the airport.

She said the carrier will re-open its counter when the government attracts more riders to use the Makkasan Station service, which may be positively affected by providing added convenience in travelling, and building a department store within the compound.

Meanwhile, Thai Airways International (THAI) continues to offer its city check-in service, but the number of counters was reduced from four to one, for only about 15 passengers use the facility daily. The airline has not yet halted service as the State Railway of Thailand (SRT) is not charging for use of the counter.

The Suvarnabhumi Airport Link began full operation in January when its check-in service was opened for the first time.

The 28-km rail link connects Suvarnabhumi Airport in adjacent Samut Prakan province and the City Air Terminal in Bangkok’s Makkasan area. (MCOT)

BoT: Baht fluctuates due to election and world economy

The Bank of Thailand (BoT) has indicated there are three factors contributing to the heavy fluctuations of the baht: the global economy, debt crisis in Greece, and the election in Thailand.

BoT Assistant Governor for Financial Market Operations Pongpen Ruengvirayudh said the US’s unstable economic recovery, the prolonged Greek debt crisis, and domestic political problems and the election were influencing the shift in the baht.

She believed that if the general election passes without any violence or unusual activities; then investors should not be worried.

The BoT reported international money reserves as of 17 June at 185.4 billion THB, a 500 million THB decrease. (NNT)

PTT’s gas leak affects 3,000-megawatt power generation

Thailand’s largest energy conglomerate PTT Public Company’s impaired natural gas pipeline from a natural gas processing platform in the Gulf of Thailand, leaking since Saturday afternoon, may affect power generation of about 3,000 megawatts, or 4-5 power plants, according to Suthat Pattamasiriwat, director of the Electricity Generating Authority of Thailand (EGAT).

To tackle the problem, other types of fuel, such as stove oil and liquefied natural gas (LNG), are currently being used by EGAT to generate power, which Suthat admitted could result in higher electricity bills. The normal electricity charge would resume once PTT finishes repairs to its gas pipeline.

According to EGAT, 70 percent of natural gas harvested domestically is normally used for generating power for Thailand.

The Gas Transmission Pipeline unit’s executive vice president, Wichai Pornkeratiwat of PTT said the leak was located around 325 kilometers off Rayong’s coast, where a main tube of 34-inch diameter and a minor pipeline of 24-inch diameter were linked.
A remotely operated vehicle (ROV) was sent into the sea to monitor the situation and estimate time for further repair.

PTT announced the amount of gas leak reached around 600 million cubic feet per day, which clearly affected the company’s ability to transfer the natural gas to EGAT and the gas separation plants. In the meantime, a gas supply of about 400 million cubic feet was available to EGAT, while PTT is also sourcing 30 million liters stove oil supply, LNG, and gas from other fuel sources for power plants, which the company said will be sufficient to meet demand.

The gas leak incident has not had a negative impact on the marine ecosystem, Wichai said, because natural gas is lighter than air, insoluble in water, and in an unadulterated form. (MCOT)