Hat Yai hotels fully booked for Chinese New Year
HAT YAI, Feb 8 - Hotel rooms in Thailand’s southern
tourist haven of Hat Yai are at full occupancy, now fully booked, mostly
by tourists for the Chinese New Year this weekend, according to the
president of the Hat Yai-Songkhla Hotel Association.
Somchart Pimthanapoonporn said Hat Yai's business district is lively and
the city has been festooned with Chinese-style decorations ahead of the
city's Chinese New Year 2013.
He said all the city's hotel rooms are fully booked for the Feb 10-16
festival, with an increased inflow of both domestic and international
tourists feeling confident about the government's security measures.
He said combined forces of police, soldiers and civilians have been
deployed across the city around the clock and checkpoints have been set
up to ensure safety for local residents and tourists as part of stiff
security measures to prevent any untoward incident by insurgent groups.
About Bt200 million is expected to be circulated during the upcoming
festivities, said the association president.
Public-private sectors agree on transparency in gov’t projects
BANGKOK, Feb 7 – Thailand’s Transport Ministry and the
independent Anti-Corruption Organisation (ACO) agreed today to
launch a concrete attempt to fight corruption in Thailand given
the government’s planned budget of Bt2.2 trillion (about US$7.4
million) for infrastructure development.
Transport Minister Chatchart Sittipan and Anti-Corruption
Chairman Pramon Sutheewong said a ‘virtue agreement’ will be
released, compelling stakeholders, including civil servants,
political appointees, heads of government offices and private
investors to sign before the start of a bidding process.
They must clearly state their willingness to disclose
information and operate their businesses transparently, Mr
Mr Pramon said that private investors who fail to sign the
agreement will be barred from bidding on the project.
Permanent Secretary for Transport Vichien Poteposri was assigned
to work on the draft virtue agreement and submit it to the
transport minister for approval. Drafting should take about a
They also agreed that an observation committee must be set up to
inspect and follow up projects to ensure transparency from the
stage acquisition to drafting of terms of agreement, bidding and
Mr Pramon described the joint agreement as a stepping stone
towards major change in fighting corruption in Thailand. (MCOT
Deputy PM Kittiratt blows top on threat to BoT governor
BANGKOK, Feb 8 – Deputy Prime Minister Kittiratt Na-Ranong
vehemently put the brakes on rumours that political pressure has
been applied on Bank of Thailand (BoT) Governor Prasarn
Trairatvorakul to resign.
Mr Kittiratt, concurrently finance minister, said bluntly,
“Please stop talking about it. Stop spreading the [false] news.”
Unconfirmed reports have been circulated that the government was
trying to unseat Mr Prasarn amid conflicts with the BoT over the
country’s directives about the policy interest rate and action
on the sharp appreciation of Thailand's baht currency.
Mr Prasarn insisted earlier that he did not feel pressured
regarding Mr Kittirat’s letter to BoT Board Chairman Virabongsa
Ramangkura asking him to supervise the operations of the central
bank and the Monetary Policy Office (MPO).
The finance minister wanted the MPO to reduce the policy
interest rate and take action on the inflows of foreign capital
and the strengthening Thai baht.
Mr Prasarn said he has always taken the government’s policy into
consideration in making any decision. (MCOT online news)
Thailand poised to be Honda’s base in Asia
BANGKOK, 7 February 2013 (NNT) - Honda has announced to
establish its Asian production base in Thailand with an
investment of more than 20 billion baht. The company will expand
production capacity at Rojana Industrial Park and build a new
plant in Prachin Buri province.
President and CEO of Asian Honda Motor and President of Honda
Automobile Thailand Hiroshi Kobayashi said Honda would invest 20
billion baht more in Thailand by setting up a new plant in
Prachin Buri worth over 17 billion baht with a production
capacity of 120,000 cars a year. The rest worth 2.9 billion baht
would be spent to increase Honda’s production capacity at its
existing plant in Rojana Industrial Park, Ayutthaya province, to
300,000 cars a year, Mr Kabayashi said.
When the two plants fully operate, Honda’s total production
capacity will reach 420,000 cars a year, making Thailand the
company’s main production base of cars and parts for various
markets which continuously see rising demands for the products.
Thai durian exports affected by Indonesian measures
BANGKOK, Feb 6 - Thailand's Agriculture Ministry
is concerned of Thai durian exports which are
affected by Indonesia's new ban on agricultural
Thai Agriculture Minister Yukol Lim-laemthong
said the Indonesian import ban will negatively
affect the durian business at about Bt600
million/year in value.
The ministry's deputy permanent-secretary Chalit
Dhamrongsak was assigned to travel to Indonesia
to negotiate with the appropriate agencies to
fix the problem immediately.
Mr Yukol said the ministry, meanwhile, is
planning to control the amount of durian to be
supplied to the market in May to comply with
domestic demand, while durian exports will also
be promoted. If the fruit cannot be exported to
Indonesia, new markets are to be looked for such
as in Vietnam or China.
The durian harvest this year is expected at a
demand level of 529,500 tonnes, an increase of
1.12 per cent compared to last year.
The central and southern regions of Thailand
have the highest areas of durian plantation
together at over 500,000 tonnes of production.
(MCOT online news)
Six groups picked for Thailand’s water management projects
BANGKOK, Feb 6 – Six corporate groups have been selected to
prepare conceptual plans on Thailand’s water resources
management which will cost the country Bt350 billion (US$11.7
billion), according to Deputy Prime Minister Plodprasop
Mr Plodprasop, in his capacity as chairman of the Water and
Natural Disaster Management Committee, said eight corporate
groups joined the process and selection of the six winners was
approved by the cabinet on Tuesday.
The six groups consist of 15 Thai firms and 16 international
companies, he said, adding that the committee intentionally
wanted a mixture of Thai and foreign companies.
Thai companies are more knowledgeable on Thailand’s geography
and water resources channels while overseas firms are
experienced and apply technology in water management, the deputy
premier said. The foreign companies are based in China, Japan
The six corporate groups will propose details on construction
and technical aspects, time frame and expense by April when bid
winners will be announced by a selection committee to be
specially set up for the purpose.
The selection committee will work closely with a consultant firm
which will be in charge of supervising construction of all the
projects, Mr Plodprasop said.
The six corporate groups which won bids for the conceptual plans
are Korea Water Resources Corporation (K. Water), Japan-Thai
Joint Business Group, ITD Power China JV, Thailand Team Joint
Business Group, Summit SUT Joint Business Group and Loxley Joint
Two groups which failed in the bids are China CAMC Engineering
Co and Consortium TKC Global from Korea.
The projects involve construction of reservoirs along major
rivers from northern Thailand to the central region, development
of agricultural and irrigation zones, construction of floodways
and flood diversion channels and improvements to the flood
warning system. (MCOT online news)
PM insists Finance Minister Kittiratt stay on as economic chief
BANGKOK, Feb 5 – Prime Minister Yingluck Shinawatra stood firm
today that her deputy Kittiratt Na-Ranong must remain head of
the government’s economic team despite a hiccup regarding two
state-operated commercial banks and the rocketing inflow of
foreign capital into Thailand.
She made the statement in response to a question by reporters on
whether Mr Kittiratt, deputy prime minister and finance
minister, will be ousted from the government’s economic think
tank in an imminent cabinet reshuffle given the problem of
escalating non-performing loans (NPL) at the SME Bank and the
Islamic Bank of Thailand (IBank). Both banks were instructed to
submit their rehabilitation plans to the Finance Ministry.
Mr Kittiratt said a resolution of their NPLs will not be reached
soon as the Finance Ministry must study guidelines on solutions
to the problem as recommended by the World Bank.
He admitted that he was concerned with the loan defaults of the
two banks but said there are several alternatives in solving the
problem including capital increase and separation of
non-performing and performing loans so that management of the
performing loans continues.
Merging with other state-run banks such as the Government
Savings Bank needs further discussion but a conclusion will not
be reached soon, he said.
Mr Kittiratt said his recent letter to the Bank of Thailand’s
Monetary Policy Committee (MPC) was merely an expression of
concern over the country’s high interest rate, adding that he
did it in his capacity as finance minister who is obliged by the
law to supervise the central bank.
Ampon Kittiampon, an MPC member, said the finance minister’s
signal for an adjustment of policy interest rate was not a
pressure on the committee, adding that several elements must be
taken into consideration in reducing the interest rate. (MCOT
BoT governor not pressured by Finance Min’s letter
BANGKOK, 6 February 2013 (NNT) – Bank of Thailand (BoT) Governor
Prasarn Trairatvorakul said he is not pressured or threatened by
the Finance Minister’s letter, calling for interest rate cut,
after the BoT has suffered an accumulated loss from its dealing
with the Thai currency speculations.
Finance Minister Kittiratt Na-Ranong has recently sent a letter
to BoT Chairman Veerapong Ramangkul, demanding the BoT to take
action on currency fluctuation and impose a rate cut to help
ease the effects of Baht’s strength.
In response to the letter, the BoT governor said the move was
only an act of concern and gave him no pressure, while assuring
he is still doing his job. However, he declined to comment on
the interest rate policy. He further revealed that the letter
has been seen by the BoT board, adding any further action will
rest upon the board as he could not speak on behalf of them.
Commerce Ministry kicks off agricultural fair
BANGKOK, 6 February 2013 (NNT) – The Commerce Ministry has
kicked off an agricultural fair at the ministry in Nonthaburi
Province, offering consumer products and food for the offering
on Chinese New Year at low price.
Permanent Secretary for Commerce Vachari Vimooktayon presided
over the opening of the agricultural fair. Consumers can enjoy
reasonably-priced items, such as pork, chicken, vegetables,
fruits and other products needed for the Chinese New Year
Festival’s worship rites. The Lunar New Year this year will be
on February 10th.
Ms Vachari stated that products available at the fair are 20-40%
cheaper than in the market. Boiled chicken, for example, is sold
at 180 baht each; while pork is sold at 115 baht per kilogram.
In addition, the permanent secretary stated the fair is also
aimed to help farmers release their stockpiles and stimulate the
economy. The fair is held during February 6-8, from 8 am to 5 pm
at the Commerce Ministry in Nonthaburi Province.
Cargo shipping in Thailand expected to grow
BANGKOK, 6 February 2013 (NNT)-Kasikorn Research Center is
confident that shipping business will expand this year due to
export growth, although operators are warned of fierce
competition and natural disasters.
According to the research center, given the improving global
economy, many industries across the board begin to expand. Cargo
ships are likely to carry more products as several industries,
such as auto-makers, have turned to manufacturing for export
rather than catering to local consumers since the first car
policy has expired.
The shipping volume is collectively expected to rise by 8-10% to
around 100 billion baht worth this year with approximately 88
million more tons of commodities being shipped overseas through
both the Bangkok Port and Laem Chabang Sea Port.
However, Kasikorn Research Center is warning cargo operators to
mind several risk factors that may harm their businesses. They
include rival competitions, natural disasters, labor shortages,
minimum wage rise and the stronger Baht. Thailand is ranked the
world’s 56th most equipped sea port, according the World
Economic Forum’s 2012-2013 ranking.
Thailand still remains behind other ASEAN members like Singapore
and Malaysia, in terms of shipping infrastructure.
Transport Ministry to submit draft law on mega transport projects to Cabinet
BANGKOK, 3 February 2013 (NNT) - The Ministry of
Transport has completed a draft of law, intended for the country’s
transport efficiency enhancement and logistics cost reduction. The draft
will soon be submitted for Cabinet consideration.
Minister of Transport Chadchart Sittipunt said, on Sunday, that the
ministry’s draft of a new Act to authorize the Ministry of Finance to
borrow up to two trillion baht for the country’s widely-anticipated
transport infrastructure development projects.
Mr. Chadchart stated that draft will soon be submitted to the Cabinet
He added that the Ministry of Transport is also working on the details
of all projects to be included in the full version of the law, as some
of them may be implemented with funds from the state budget or under the
Public-Private Partnership (PPP) initiative.
The Transport Minister said that a conclusion will soon be drawn and
presented to the Cabinet.
Regarding the 2-billilon baht pension payout plan for the State Railway
of Thailand (SRT)’s retired employees, Mr. Chadchart said that the
Ministry of Finance will likely have to borrow to execute the payment,
even though the original Cabinet resolution called for the use of the
SRT’s own assets.
Govt brushes off reports of business shutdowns due to wage rise
BANGKOK, 3 February 2013 (NNT) - The government has dismissed
news reports of business shutdowns, caused by the new 300-baht
daily minimum wage raise, but promised to look into the issues
and offer possible assistance when needed.
Deputy Commerce Minister Nattawut Saikua said during the weekly’
“Yingluck Government Meets the People” program on Saturday that
the government has introduced some measures to help and support
SMEs, who could be in need of assistance to help them better
cope with the new daily minimum wage policy.
Mr. Nattawut said that such measures include low interest loans,
the improvement of machineries to boost productivity, and the
support for their penetration into international markets.
The deputy minister confirmed that, so far, no business has been
shut down because of the minimum wage hike, which came into
effect across the country since January 1, 2013. He said that
those out of business did so because of their operational
However, Mr. Nattawut stated that the government will conduct a
survey to see how the country’s SMEs have been affected by the
minimum wage increase and how they may want the government to
Meanwhile, Democrat Party spokesman Chavanon Intharakomalsut
said that the 300-baht daily minimum wage policy has
particularly hit those in the textile and electronics industries
in the Northern region. He suggested the government to subsidize
the difference of the old and the new wages, saying that this
approach will cost the state coffer only 20 billion baht.
22 non-Thai companies breach foreign business law
BANGKOK, Feb 4 – Thailand's Ministry of Commerce has identified
22 violators of the Thai Foreign Business Act for holding more
than half of the corporate shares when the law limits foreign
ownership at a maximum 49 per cent.
Deputy Commerce Minister Nattawut Saikua said today that random
checks by the Business Development Department found the 22
companies – 20 in Chonburi and two in Prachuap Khiri Khan – had
breached the law by having Thai citizens holding shares in proxy
The Foreign Business Act limits non-Thai ownership in a business
operation in the kingdom at 49 per cent.
Mr Nattawut said the 53 Thais and foreigners in the 22 companies
are in large- and small-sized real estate businesses, tourism,
food and beverages, service and textile businesses.
Seventeen are Thai citizens and 36 others foreigners. Penalties
for violating the Foreign Business Act are a maximum three-year
jail term or fine between Bt100,000 and Bt1 million, or both.
The Business Development Department has concentrated its
inspections in five major tourism provinces – Chonburi,
Phrachuap Khiri Khan, Phuket, Surat Thani and Krabi.
Mr Nattawut said the inspections were to ensure fairness for
Thai business operators, adding that foreign ownership of more
than 50 per cent in a company is allowed as long as the
investors inform the Commerce Ministry. (MCOT online news)
Thai AirAsia projects 20% growth this year
BANGKOK, Feb 4 – Thai AirAsia, Thailand’s largest low-cost air
carrier, predicted a 20 per cent business growth with 10 million
passengers using its service, or an 82 per cent occupancy per
flight this year, a senior executive said today.
Tassapon Bijleveld, chief executive officer, forecast an overall
aviation business growth of 12-15 per cent for Thailand this
year thanks to uninterrupted tourism expansion in the region and
the increasing trend of tourists heading for Indochina.
Thailand has been rated one of the top destinations in the
region, he said, adding that the ASEAN Economic Community,
scheduled to be launched in 2015, will facilitate inter-country
tourism in Indochina.
The longer winter in Europe and Asian countries like Japan and
Korea is a tourism boon for tropical countries in the region, he
Mr Tassapon said AirAsia will enhance its fleet of 34 aircraft
with seven new energy-saving Airbus 380s in the near future.
Thai AirAsia will increase the number of flights on domestic
routes to Chiang Mai, Phuket and Hat Yai and open several new
regional routes to two Chinese cities, one Indochina city and
Asked if the projected high-speed train services in the region
will affect the low-cost airline business, Mr Tassapon said 80
per cent of travel fees for high-speed trains worldwide is
higher than those charged by low-cost airlines due to high
infrastructure investment costs for rail projects.
In Bangkok, both international airports – Don Meaung and
Suvarnabhumi – are not far from the city centre, and that is
convenient for travellers, he said. (MCOT online news)
Thai Kitchen to the World set to get big boost
BANGKOK, Feb 4 – Thailand has targeted increasing its export of
agricultural and food products by 10 per cent as part of the
“Thai Kitchen to the World” programme, according to a senior
Commerce Ministry official.
Srirat Rastapana, director general of the International Trade
Promotion Department, said activities are being organised to
promote Thai food abroad including joining food fairs in various
countries, holding Thai food fairs in 12 countries, promoting
health foods for export and assigning Thai commercial
representatives to directly promote Thai food in Southeast Asian
countries, China, India, Japan and the Middle East.
There are 19 international food events in 14 countries including
the World Food Moscow 2013 in Russia Sept 16-19, Fine Food
Australia 2013 in Sydney, Australia Sept 9-12, Food Taipei 2013
June 26-29 and Anuga 2013 in Cologne, Germany from Oct 5-9, she
She said the department will also provide consultations and
assistance to Thai businessmen interested in opening restaurants
or food-related businesses in Southeast Asian countries such as
Vietnam, Myanmar and Indonesia, and in Eastern European
countries such as Russia and Poland. (MCOT online news)
Labor Ministry assures fair treatment for Thai workers overseas
BANGKOK, 4 February 2013 (NNT)-The Ministry of Labor has
instructed labor attaches to Thai embassies worldwide to assure
Thai workers in their respective areas of fair treatment and to
make their voices heard.
Labor Minister Padermchai Sasomsap told Thai labor attaches in a
meeting in Bangkok to hand down his policy that any
controversies regarding overseas employments, particularly those
affecting the country’s image must be resolved quickly. He urged
them to get ready for the approaching ASEAN Economic Community.
Mr. Padermchai said he would rather see Thai workers offered a
job through a government-to-government contract, than through
middlemen or employment agencies which often charge their
clients an exorbitant fee for a job. He added a G2G contract
would ensure workers of fair treatment and living conditions.
According to him, more than 440,000 Thai laborers are working
overseas; however, half of that number is working illegally,
mostly in Malaysia. The minister urged Thai labor attaches to
work pro-actively to win trust from workers so that they will
confide in them.
Thailand to go ahead with Thai-EU FTA
BANGKOK, 4 January 2013 (NNT) - The parliament has
given a green light to the government to continue talks on the Thai-EU
Free Trade Agreement (FTA) aimed at increasing Thailand’s
competitiveness in trade and investment in the EU market.
Commerce Minister Boonsong Teriyapirom said on 2 February 2013 that the
parliamentary joint sitting on 29 January 2013 approved a draft of the
Thai-EU FTA framework submitted to the parliament by the Cabinet. The
parliament’s approval will allow Thailand’s negotiating team to announce
and start talks on the FTA.
The Ministry of Commerce has set a target to round off the Thai-EU FTA
talks as soon as possible with hopes to raise the competitiveness of the
country in trade and investment in the EU and international markets.
The minister said the Thai-EU FTA would help reduce the effects of the
EU’s decision to strip Thailand of the privileges under its Generalized
Scheme of Preferences on 1 January 2015. The FTA would permanently
decrease tariffs for Thai exports, helping Thailand not to lose its
competitiveness and prevent the EU from relocating its production base
to Vietnam. The FTA would also help turn Thailand into the center of
trade and investment for the EU in Asia.
Thai automotive industry set to grow this year
BANGKOK, Jan 31 – Thailand’s Industrial Economics Office
forecast that the country’s automotive industry will continue to
grow this year.
Industrial Economics Office Deputy-Director Hathai Uthai said
the forecast was because automotive companies wanted to speed up
manufacturing cars for their customers.
Overall car production is targeted at 2.5 million units, a 2.57
per cent increase from last year, half of which -- 1.25 million
units, a 22.18 per cent increase from 2012 – is targeted for
However, Mr Hathai said domestic car sales are projected to be
12.31 per cent lower this year as the government's first-time
car buyer scheme already ended.
Meanwhile, the Electrical and Electronics Industry is estimated
to expand 3 per cent compared to last year, particularly in the
Association of Southeast Asian Nations (ASEAN) and US markets.
According to the Industrial Economics Office, the textile and
garment sector might see a slight reduction in exports but
within the range of a few percentage points, while the food
industry this year is expected to grow 4.7 per cent. (MCOT
Red Line deal inked; some Hopewell pillars to stay
BANGKOK, Jan 31 – The State Railway of Thailand (SRT) today signed two
deals, worth a combined Bt21 billion (US$700 million), to expand
Bangkok’s urban mass transit rail projects to the northern side of the
Transport Minister Chadchart Sittipunt presided over a ceremony to sign
the agreements between the SRT and Italian-Thai Development Co.
The first deal covers a 21km rail system between Bang Sue and Rangsit
(Red Line) and the construction of six stations, including Don Meuang,
along the route. The second agreement involves construction of the
foundations for future expansion of two major stations – Samien Naree
and Lak Hok.
Construction will take three years and the Transport Ministry projects
the Red Line to service 30,000-40,000 commuters per hour.
Half of the existing concrete pillars of the unfinished Hopewell rail
link project will be useful as structures while substandard pillars will
be demolished. The pillars lining Vibhavadi-Rangsit Road were abandoned
for 15 years after the Thai subsidiary of Hong Kong-based Hopewell
Holdings discontinued building the mega mass transit project.
Mr Chadchart said SRT retained consultants have pinpointed which pillars
will be torn down and noted that the use of the remaining ones is not a
breach of contract with the original contractor.
The minister said he has ordered the SRT to speed up construction of
rail link stations at the Thammasat University Rangsit campus, Nava
Nakhon industrial estate, Samien Naree and Lak Hok, and ensure that
connections for passengers to the stations are convenient.
He said the original plan to integrate city rail links and high-speed
rails could be impractical and a separate four-track system may be
needed for a high-speed train.
Mr Chadchart said private contractors in provinces along the high-speed
rail line will be invited to join bids to build railway stations which
can be expanded to include hotels and shopping complexes. (MCOT online
Deputy Interior Min follows up on Dawei project
BANGKOK, 31 January 2013 (NNT) – Deputy Interior Minister Chat
Kuldilok has visited Ban Phu Nam Ron, in Kanchanaburi Province,
where the Italian-Thai Development Company is working on utility
and infrastructure projects.
According to the deputy minister, temporary public utilities
have been completed at this stage, while a 4-lane road will soon
be under construction to help ease traffic in the area.
Furthermore, a housing project is underway to help those people
whose houses have been expropriated by the government for the
construction of the Dawei economic zone. The deputy said the
housing project is now 50 percent complete.
Furthermore, Mr Chat said the government considered the Dawei
project as the base for the ASEAN region's economic expansion,
plus Kanchanaburi Province is the border crossing point before
anything can reach Dawei Deep Sea Port. All the projects in
those areas must therefore be completed on schedule.
White rice standards help ensure quality of exported Thai rice
BANGKOK, 31 January 2013 (NNT) - The Department of Foreign Trade
has stressed the importance of Thai white rice standards, which
are hoped to help boost the global market’s confidence in the
quality of Thai rice and help rice farmers sell their produce at
Deputy Director-General of the Department of Foreign Trade
Thikhamporn Nartworathat said the standards were applicable to
eight categories of exported rice, including grade 1-3 100%
white rice as well as 5%, 10%, 15% and 25% white rice. He
pointed out that the standardization of white rice had been
around for a long time to cut the rice export process and
expenses of Thai rice exporters. Most importantly, the rice
standards could increase the confidence of international
consumers in Thai white rice, the deputy director-general said.
If Thai rice producers fail to meet the standards, they will be
subject to no punishment but they will have to improve their
produce otherwise they will not be allowed to export rice.
Thailand is now the world’s number 3 rice exporter, following
India and Vietnam. Compared to the same period of last year,
Thailand is exporting 35% more, making it likely that the
country might come back as the number 1 rice exporter.
Labor Minister: Too soon to assess pros-cons of minimum wage hike
BANGKOK, 31 January 2013 (NNT) – Labor Minister Padermchai
Sasomsap said it was too soon to evaluate the pros and cons of
the 300-baht minimum wage policy, which took effect nationwide
on January 1st.
According to the minister, it is too premature to conclude
whether the implementation of 300-baht daily minimum wage is
good or bad, since it has only been in effect for just one
month; and it would take at least 12 months for the ministry to
assess the consequences of the wage hike. However, he has
reaffirmed that the hike is not the main reason why a number
businesses have shut down, saying most of the entrepreneurs have
already adjusted themselves to the new rate since last year.
In response to reports of businesses shutting down, the minister
said it was internal factors that forced them to close their
doors as they had long been in the red before the 300-baht wage
policy took effect.
He further stated that the Labor Ministry would press ahead with
its human resources development and training programs in order
to produce more workers in areas where they are needed.