FTI hopes to see new government act closely with private sector

Thailand’s prospective post-election government should collaborate closely with the private sector in driving the industrial sector for the sake of the country’s development, according to Federation of Thai Industries (FTI) chairman, Payungsak Chartsutipol.

Many political parties have prepared party policy statements for the public in the expectation that the House will be dissolved and a new government will be formed soon.

He said the border tension between Thailand and Cambodia had begun to ease because both countries have attempted to resolve the dispute by peaceful means. Consequently, he did not expect the border conflict to escalate.

The FTI chief proposed the government postpone its deliberation of the auto excise tax restructuring if it thought the issue need be considered with caution as it could affect the performance of the auto industry in both short and long terms.

Thai Chamber of Commerce (TCC) chairman, Dusit Nontanakorn, said the organization wants Thailand’s new government to enhance the country’s readiness to enter the ASEAN Economic Community in 2015.

TCC hoped the new government would forge closer cooperation with the private sector in enhancing border trade and addressing the reduction of trade barriers, he said. (MCOT online news)

60,000 Thai workers dealing with aftermath of Japan’s earthquake, tsunami

The recent earthquake and tsunami in Japan have impacted over 60,000 Thai workers in Thailand, with another 80,000 at risk.

According to Amporn Nitisiri, director-general of Thailand’s Department of Labor Protection and Welfare, nearly 61,000 workers - 60,704 exactly - working in Japanese owned companies had their working hours cut, with 140,000 overall at risk.

The situation in Japan caused 60 business operators in Thailand to reduce production output due to insufficient raw materials and led them to cut overtime working hours and to stop operations under Article 75 of regulations guiding foreign investments.

The five most-affected provinces are Ayutthaya, Samut Prakan, Chonburi, Chachoengsao and Pathum Thani, Mrs Amporn, said citing the latest information as of April 28.

Some 300 businesses with 80,130 employees are now being watched for possible impacts from the disaster in Japan, the labor official said.

However, not all the effects are negative. Twenty-six businesses with 23,016 workers have benefited from more orders. The firms include food processing, auto parts, ceramics, aluminum, construction materials, and fruit and vegetable exports.

Meanwhile, Yongyuth Mentaphao, president of the Federation of Automotive Labor Unions said Thailand’s auto production has dropped by half in the past two months.

A number of companies have not yet reduced employee salaries but some with less production capacity have had their working days cut to Tuesdays and Wednesdays only and their salaries reduced to 75 percent.

The union leader said he disagreed with adopting salary-cutting measures under the law as the problem is not caused by an economic crisis and car orders are still as high as 30,000 units.

The federation asked the government to help in paying workers as some companies cannot shoulder the burden.

Auto parts production of some companies in Japan has resumed. Yongyuth said workers should not worry as it is monitoring the situation and believes that it will ease by late October. (MCOT)

Loans for first-time homebuyers to help stimulate property market

Cabinet’s approval of a Bt25 billion loan program for first-time homebuyers with special repayment terms and conditions will help stimulate Thailand’s property market and the mortgage loan business for the rest of this year, according to Kasikorn Research Center (KRC).

Under the loan program, the Government Housing Bank will offer first-time homebuyers a mortgage at zero interest for the first two years if it is less than three million baht, with a full term of 30 years. Homebuyers with less than one million baht annual income can borrow up to one million baht.

Successful applicants are also eligible for a waiver on a mortgage fee at 1 percent of the loan amount and an ownership transfer fee at 2 percent of the appraisal price. The Bt25 billion amount is equivalent to 8 percent of the new mortgage loans extended each year.

According to a report by the Land Department and the Real Estate Information Center, property ownership transfers in Bangkok and its environs in the first two months of this year totaled 18,907 units, down 21 percent from the same period last year.

The decline in property market activities stemmed partly from the lack of property stimulus measures taken earlier.

Simultaneously, commercial banks had begun a gradual increase in lending rates with four major banks offering a minimum lending rate at 6.75 percent. Each 1 percent increase in lending rates will have the approved loan amount reduced by 7-8 percent. That means the purchasing power of homebuyers will decrease accordingly.

With the implementation of the loan program, KRC said, the property market is expected to be active again for the remainder of the year.

At present, housing units that are completely built and those under construction are available in a large number, so it is a good opportunity for property developers to accelerate the marketing and sale of housing units left in stock. (MCOT online news)