KPMG survey: India lags behind China in corporate investment
By The Statesman
Asia News Network
Published on June 21, 2008
India is likely to witness the largest growth in its share of overall foreign investment over the next five years and should become the world leader for investment in manufacturing.
But it is China that will corner the biggest chunk of corporate investment by 2013 to 14, moving ahead of even the United States, global think-tank KPMG said in its latest survey.
"As investments go global, the smart money is increasingly finding its way from the traditional investment destinations of the US and Europe to the BRIC countries [Brazil, Russia, India and China]," KPMG India chief executive Russel Parera said. "The more recently recognised India opportunity is reflected in the fact that a significant amount of investment into India in the next five years is expected from first-time investors."
However, though the growth of Indian investment scenario is overwhelming, it is way behind China, already acknowledged as a major new economic power that is expected to receive funds from 24 per cent of corporate investors globally, the KPMG survey titled "Global Corporate Capital Flows 2008-09 to 2013-14" showed.
China is expected to overtake the US as the world's leading recipient of corporate investment and should become the most influential country in information technology, telecom, industrial products and mining.
"India is expected to lead the world in terms of investment in the manufacturing sector with 25 per cent of corporates expecting to invest five years from now and is projected do particularly well in industrial products, where it will displace the US to take second place behind China," the survey showed.
The global survey was
carried out by KPMG International and corporate-investment strategists from more than 300 of the largest multinational companies in 15 major economies. They were asked where they plan to invest in the next 12 months and in five years time.
"It is significant to note that while 10 per cent of the companies surveyed expect to invest in India currently, that number will go up to 18 per cent in five years - the biggest gain amongst all other BRIC countries," KPMG India tax and regulatory services head Sudhir Kapadia said.
Showing posts with label Business News. Show all posts
Showing posts with label Business News. Show all posts
Monday, September 01, 2008
China will not sacrifice food for fuel : experts
China will not sacrifice food for fuel : experts
By China Daily
Asia News Network
Beijing
Published on June 7, 2008
Country tackles concerns as grain shortages plague the world's population
China has no plan to sacrifice food for fuel, the country's energy experts said yesterday amid a controversy over biofuels.
"Food security comes first in China, more important than fuel," China's national energy strategies co-drafter Song Yanqin said while speaking at Asia Clean Energy Forum 2008 in Manila.
Biofuel has become a new buzz word all across the world. Produced from agricultural crops such as maize, palm oil, sugar cane and jatropha, biofuels are used to run factories, power stations and vehicles. Countries that have the right conditions are setting aside millions of hectares for new plantations as international demand for biofuel rises.
However, there is another side to the coin. The development of biofuels is considered as one of the main reasons for the global shortage of food grains - driving up food prices in many countries. For instance, in the Philippines' southern region of Mindanao, rice prices have gone up to 50 pesos (Bt37.50) per kilogram.
Song said, "Biofuel is sensitive", especially in China, where 1.3 billion people live on only 120 million hectares of arable land.
"Actually, in the global context, biofuels are still a controversial topic and all for serious study," China's National Energy Leading Group adviser Zhou Dadi said.
By China Daily
Asia News Network
Beijing
Published on June 7, 2008
Country tackles concerns as grain shortages plague the world's population
China has no plan to sacrifice food for fuel, the country's energy experts said yesterday amid a controversy over biofuels.
"Food security comes first in China, more important than fuel," China's national energy strategies co-drafter Song Yanqin said while speaking at Asia Clean Energy Forum 2008 in Manila.
Biofuel has become a new buzz word all across the world. Produced from agricultural crops such as maize, palm oil, sugar cane and jatropha, biofuels are used to run factories, power stations and vehicles. Countries that have the right conditions are setting aside millions of hectares for new plantations as international demand for biofuel rises.
However, there is another side to the coin. The development of biofuels is considered as one of the main reasons for the global shortage of food grains - driving up food prices in many countries. For instance, in the Philippines' southern region of Mindanao, rice prices have gone up to 50 pesos (Bt37.50) per kilogram.
Song said, "Biofuel is sensitive", especially in China, where 1.3 billion people live on only 120 million hectares of arable land.
"Actually, in the global context, biofuels are still a controversial topic and all for serious study," China's National Energy Leading Group adviser Zhou Dadi said.
China to regulate hot money
China to regulate 'hot money'
By China Daily
Asia News Network
Beijing
Published on July 5, 2008
The Chinese government is ready with new rules to tighten control over speculative-capital inflow from abroad, or "hot money".
The move follows economists' warning that billions of dollars in illegal capital have entered the country in the garb of normal trade.
The new system will make it mandatory for companies to provide evidence to the State Administration of Foreign Exchange (SAFE) for verification from July 14.
Exporters will be required to park their export receipts in temporary verification accounts until they are cleared as genuine trade revenue, according to a statement issued by the SAFE, the Commerce Ministry and the General Administration of Customs (GAC) on Wednesday night.
The new rules are aimed at stopping overseas traders from inflating their invoices to bring in more foreign money.
Inflating invoices is believed to be a common way of pushing overseas speculative capital into China.
Traders will have to report advance payments for exports and deferred payments for imports, too, because either of these channels can be used to bring in "hot money".
The new rules make it clear that the annual deferred payments for exports should not exceed 10 per cent of a trader's total payments for exports in the previous year.
The SAFE will work with the Commerce Ministry and the GAC to implement the new rules through a nationwide computerised network. Banks' computers will be linked to those of the customs department to crosscheck data. The departments used to monitor trade-related foreign capital flows separately, an arrangement that has not proved effective.
The collaboration will make the regulation more effective, an analyst said.
At a glance
- The move follows a warning that billions of dollars in illegal capital have entered China.
- Traders will have to report advance payments for exports and deferred payments for imports, too.
By China Daily
Asia News Network
Beijing
Published on July 5, 2008
The Chinese government is ready with new rules to tighten control over speculative-capital inflow from abroad, or "hot money".
The move follows economists' warning that billions of dollars in illegal capital have entered the country in the garb of normal trade.
The new system will make it mandatory for companies to provide evidence to the State Administration of Foreign Exchange (SAFE) for verification from July 14.
Exporters will be required to park their export receipts in temporary verification accounts until they are cleared as genuine trade revenue, according to a statement issued by the SAFE, the Commerce Ministry and the General Administration of Customs (GAC) on Wednesday night.
The new rules are aimed at stopping overseas traders from inflating their invoices to bring in more foreign money.
Inflating invoices is believed to be a common way of pushing overseas speculative capital into China.
Traders will have to report advance payments for exports and deferred payments for imports, too, because either of these channels can be used to bring in "hot money".
The new rules make it clear that the annual deferred payments for exports should not exceed 10 per cent of a trader's total payments for exports in the previous year.
The SAFE will work with the Commerce Ministry and the GAC to implement the new rules through a nationwide computerised network. Banks' computers will be linked to those of the customs department to crosscheck data. The departments used to monitor trade-related foreign capital flows separately, an arrangement that has not proved effective.
The collaboration will make the regulation more effective, an analyst said.
At a glance
- The move follows a warning that billions of dollars in illegal capital have entered China.
- Traders will have to report advance payments for exports and deferred payments for imports, too.
China an economic umbrella for Southeast Asia?
China an economic umbrella for Southeast Asia?
By Prasong Uthaisangchai
Senior Executive Vice President and Director of International Banking Group, Bangkok Bank
www.bangkokbank.com
Published on July 21, 2008
As more bad economic news pours out of the former economic powerhouses of America, Britain, Japan and Europe, there are increasing concerns that the world economy may fall into a recession.
The only thing which may stave it off, some commentators say, is the strong economic growth in China and other countries such as India, Russia and Brazil. But other observers believe that China will not be able to avoid being caught up in the worldwide economic storm.
Certainly, China is hurting. High oil prices and commodity prices have pushed up the inflation rate and caused many businesses to close down. The cost of imports into China has risen, while the economic slump has reduced demand from China's major markets. In the first half of this year, China's trade surplus totalled US$99
billion (Bt3.3 trillion), dropping $13.21 billion, or 11.8 per cent, compared to the same period last year.
Chinese Vice Premier Li Keqiang describes the Chinese economy as being at a critical stage however he is nonetheless positive. "China's economic fundamentals are sound and growth will still continue to be rapid," he said. To deal with the current challenge, he said, the government must take aggressive measures to support the economy. In particular, the government should work to improve the market system and seek to make price increases "acceptable" for both industry and the public.
The government must also develop China's foreign trade, improve the mix of imports and exports, and encourage Chinese enterprises to expand into the international market. Li has urged enterprises to raise their international competitiveness by speeding up transformation in line with the changing domestic and global economic situation.
GDP in China, despite slowing, still remains above 10 per cent according to the second half figures which were released last week.
Next year's forecast is for moderate growth but it will remain above 9 per cent. This growth is helping to underpin the economies of Southeast Asia which is indeed positive news for Thailand. Morgan Stanley recently raised its 2008 growth forecast for Singapore, Malaysia, Thailand and Indonesia to 5.6 per cent from an earlier estimate of 5.5 per cent.
It is clear that China is providing an umbrella for Southeast Asia during the current economic storm - and according to a recently released study by eminent American economist Albert Keidel, this will continue to be the case in the future. He forecast that the rise of China would continue and that it would overtake the United States as the world's largest economy by 2035.
Currently, China's GDP is about $3 trillion, compared to $14 trillion for the US. Despite the comparatively small size of the Chinese economy, its growth rate is so fast that it will rapidly catch up. Keidel said the growing economic clout of China will help China become a much more important power in other areas, including military and diplomatic affairs. "Leadership of international institutions will gravitate towards China - for example the World Bank, IMF and United Nations," he said.
So, despite the current difficult economic situation, there are still grounds for optimism. Indeed, Thailand could do well to study the economic plans outlined by Li, as it could also help to lift the economic prosperity of our country.
By Prasong Uthaisangchai
Senior Executive Vice President and Director of International Banking Group, Bangkok Bank
www.bangkokbank.com
Published on July 21, 2008
As more bad economic news pours out of the former economic powerhouses of America, Britain, Japan and Europe, there are increasing concerns that the world economy may fall into a recession.
The only thing which may stave it off, some commentators say, is the strong economic growth in China and other countries such as India, Russia and Brazil. But other observers believe that China will not be able to avoid being caught up in the worldwide economic storm.
Certainly, China is hurting. High oil prices and commodity prices have pushed up the inflation rate and caused many businesses to close down. The cost of imports into China has risen, while the economic slump has reduced demand from China's major markets. In the first half of this year, China's trade surplus totalled US$99
billion (Bt3.3 trillion), dropping $13.21 billion, or 11.8 per cent, compared to the same period last year.
Chinese Vice Premier Li Keqiang describes the Chinese economy as being at a critical stage however he is nonetheless positive. "China's economic fundamentals are sound and growth will still continue to be rapid," he said. To deal with the current challenge, he said, the government must take aggressive measures to support the economy. In particular, the government should work to improve the market system and seek to make price increases "acceptable" for both industry and the public.
The government must also develop China's foreign trade, improve the mix of imports and exports, and encourage Chinese enterprises to expand into the international market. Li has urged enterprises to raise their international competitiveness by speeding up transformation in line with the changing domestic and global economic situation.
GDP in China, despite slowing, still remains above 10 per cent according to the second half figures which were released last week.
Next year's forecast is for moderate growth but it will remain above 9 per cent. This growth is helping to underpin the economies of Southeast Asia which is indeed positive news for Thailand. Morgan Stanley recently raised its 2008 growth forecast for Singapore, Malaysia, Thailand and Indonesia to 5.6 per cent from an earlier estimate of 5.5 per cent.
It is clear that China is providing an umbrella for Southeast Asia during the current economic storm - and according to a recently released study by eminent American economist Albert Keidel, this will continue to be the case in the future. He forecast that the rise of China would continue and that it would overtake the United States as the world's largest economy by 2035.
Currently, China's GDP is about $3 trillion, compared to $14 trillion for the US. Despite the comparatively small size of the Chinese economy, its growth rate is so fast that it will rapidly catch up. Keidel said the growing economic clout of China will help China become a much more important power in other areas, including military and diplomatic affairs. "Leadership of international institutions will gravitate towards China - for example the World Bank, IMF and United Nations," he said.
So, despite the current difficult economic situation, there are still grounds for optimism. Indeed, Thailand could do well to study the economic plans outlined by Li, as it could also help to lift the economic prosperity of our country.
Beijing cites public opinion for emission-permit delays
Beijing cites public opinion for emission-permit delays
By China Daily
Asia News Network
Published on July 5, 2008
The issue of pollution-emission permits will be delayed, as more time is needed to gauge public opinion, an official with the Environmental Protection Ministry said yesterday.
"There is no timetable for issuance of the permits," the official said. He denied media reports the permits would be issued at the end of the year.
Twenty-first Century Business Herald yesterday quoted a source from the Environmental Protection Ministry, as saying "the permits will be officially released at the end of this year, or next year, by the State Council".
However, the ministry official said: "We definitely need more time to make public the legislative procedures."
Emission permits are being introduced to control the amount of pollutants discharged. Currently, only the concentration of a pollutant is monitored.
"Polluters should make preparations for treatment facilities," said Xia Guang, director of the ministry's policy research centre.
By China Daily
Asia News Network
Published on July 5, 2008
The issue of pollution-emission permits will be delayed, as more time is needed to gauge public opinion, an official with the Environmental Protection Ministry said yesterday.
"There is no timetable for issuance of the permits," the official said. He denied media reports the permits would be issued at the end of the year.
Twenty-first Century Business Herald yesterday quoted a source from the Environmental Protection Ministry, as saying "the permits will be officially released at the end of this year, or next year, by the State Council".
However, the ministry official said: "We definitely need more time to make public the legislative procedures."
Emission permits are being introduced to control the amount of pollutants discharged. Currently, only the concentration of a pollutant is monitored.
"Polluters should make preparations for treatment facilities," said Xia Guang, director of the ministry's policy research centre.
Baosteel to pay bhp 97% more
Baosteel to pay bhp 97% more
By China Daily
Asia News Network
Beijing
Published on July 7, 2008
Miner forces steel firm to increase prices, matching Rio Tinto deal, as demand soars
BHP Billiton, the world's thirdbiggest iron-ore exporter, won a price increase of as much as 97 per cent from Baosteel Group, matching the agreement reached by Rio Tinto Group.
Baosteel will pay the higher prices in the 12 months that began from April, BHP said. The company was seeking to settle agreements with the rest of its customers in China and other countries.
Iron-ore prices have gained almost fourfold since 2001 to a record because of surging demand, raising costs for steelmakers and boosting profits of producers. They may gain another 20 per cent next year as demand outpaces supply and new projects are delayed, Merrill Lynch said last month.
"There is no surprise that BHP would accept the same prices Rio has settled, as BHP is the smallest among the three major exporters to China," International Capital Corporation analyst Luo Wei said. "Iron-ore prices may hold or only rise slightly next year as steel production slows."
BHP has made a US$157-million (Bt5.25 billion) hostile takeover offer for Rio, the world's second-largest exporter of iron ore, to gain control of half of the Asian market for the raw material.
BHP's agreement on Friday and Rio's June 23 accord with Baosteel exceeds the 65 per cent gain steelmakers gave Brazil's Cia Vale do Rio Doce, the world's largest supplier of iron ore, in February.
Rio and BHP want Asian mills to pay more for their Australian ore because it is cheaper to transport the material to their countries than from Brazil. Rio's accord includes a so-called freight premium that is worth $7.50 a tonne, BHP said last month.
Rio's accord did not cover the $40- to $50-a-tonne difference between the cost of shipping ore from Brazil and Australia to China, BHP said.
BHP chief executive Marius Kloppers said the company wants to sign iron ore contracts linked to spot prices or a pricing index.
However, an official said Chinese steelmakers, the world's largest consumers of iron ore, will reject any moves to link contract prices to spot prices.
Higher prices for iron ore and coking coal have spurred Baosteel, South Korea's Posco and other rivals to raise prices for products sold to auto-makers and builders to pass on costs.
By China Daily
Asia News Network
Beijing
Published on July 7, 2008
Miner forces steel firm to increase prices, matching Rio Tinto deal, as demand soars
BHP Billiton, the world's thirdbiggest iron-ore exporter, won a price increase of as much as 97 per cent from Baosteel Group, matching the agreement reached by Rio Tinto Group.
Baosteel will pay the higher prices in the 12 months that began from April, BHP said. The company was seeking to settle agreements with the rest of its customers in China and other countries.
Iron-ore prices have gained almost fourfold since 2001 to a record because of surging demand, raising costs for steelmakers and boosting profits of producers. They may gain another 20 per cent next year as demand outpaces supply and new projects are delayed, Merrill Lynch said last month.
"There is no surprise that BHP would accept the same prices Rio has settled, as BHP is the smallest among the three major exporters to China," International Capital Corporation analyst Luo Wei said. "Iron-ore prices may hold or only rise slightly next year as steel production slows."
BHP has made a US$157-million (Bt5.25 billion) hostile takeover offer for Rio, the world's second-largest exporter of iron ore, to gain control of half of the Asian market for the raw material.
BHP's agreement on Friday and Rio's June 23 accord with Baosteel exceeds the 65 per cent gain steelmakers gave Brazil's Cia Vale do Rio Doce, the world's largest supplier of iron ore, in February.
Rio and BHP want Asian mills to pay more for their Australian ore because it is cheaper to transport the material to their countries than from Brazil. Rio's accord includes a so-called freight premium that is worth $7.50 a tonne, BHP said last month.
Rio's accord did not cover the $40- to $50-a-tonne difference between the cost of shipping ore from Brazil and Australia to China, BHP said.
BHP chief executive Marius Kloppers said the company wants to sign iron ore contracts linked to spot prices or a pricing index.
However, an official said Chinese steelmakers, the world's largest consumers of iron ore, will reject any moves to link contract prices to spot prices.
Higher prices for iron ore and coking coal have spurred Baosteel, South Korea's Posco and other rivals to raise prices for products sold to auto-makers and builders to pass on costs.
Sunday, August 31, 2008
No progress on deposit agency
BANKING
No progress on deposit agency
PARISTA YUTHAMANOP
No progress has been made in establishing the Deposit Insurance Agency, despite the relevant legislation being passed, says an official of the Bank of Thailand. The Deposit Protection Act was endorsed by the National Legislative Assembly and took effect on Aug 11. But the appointment of its management executives and chairman, in accordance with the law, is pending cabinet consideration, said Sorasit Soontornkes, an assistant central bank governor.
The agency will remove the Financial Institutions Development Fund's full guarantee on deposits, which has been in place since 1998.
The Deposit Insurance Agency is due to start phasing out this full guarantee one year after the new law took effect. Deposit insurance will progressively decrease to 100 million, 50 million, 10 million and one million baht per account in the second, third, fourth and fifth year.
Regulators expected the agency's operation to improve risk management in depositors and the banking system.
The agency will also act as liquidator in case any financial institution closes down.
Yet, despite the banking system responding to the passing of the Deposit Protection Act by launching campaigns to expand their deposit bases, Mr Sorasit said there has been no progress in implementing the new law.
''The deposit insurance agency has not started operating. The appointment of directors and management has been constantly postponed from the cabinet's meeting agendas,'' he said.
In a separate development, Singhachai Boonyayotin, the director of the central bank's Financial Market and Reserve Management Department, said the second-phase financial master plan would aim at improving the banking system's liquidity risk management through derivatives instruments.
Other measures include promoting mortgage insurance and allowing financial institutions to use securities other than government bonds as borrowing collateral to improve liquidity.
The Central Bank also plans to develop payment systems that facilitate cross-currency real-time settlement, he said.
No progress on deposit agency
PARISTA YUTHAMANOP
No progress has been made in establishing the Deposit Insurance Agency, despite the relevant legislation being passed, says an official of the Bank of Thailand. The Deposit Protection Act was endorsed by the National Legislative Assembly and took effect on Aug 11. But the appointment of its management executives and chairman, in accordance with the law, is pending cabinet consideration, said Sorasit Soontornkes, an assistant central bank governor.
The agency will remove the Financial Institutions Development Fund's full guarantee on deposits, which has been in place since 1998.
The Deposit Insurance Agency is due to start phasing out this full guarantee one year after the new law took effect. Deposit insurance will progressively decrease to 100 million, 50 million, 10 million and one million baht per account in the second, third, fourth and fifth year.
Regulators expected the agency's operation to improve risk management in depositors and the banking system.
The agency will also act as liquidator in case any financial institution closes down.
Yet, despite the banking system responding to the passing of the Deposit Protection Act by launching campaigns to expand their deposit bases, Mr Sorasit said there has been no progress in implementing the new law.
''The deposit insurance agency has not started operating. The appointment of directors and management has been constantly postponed from the cabinet's meeting agendas,'' he said.
In a separate development, Singhachai Boonyayotin, the director of the central bank's Financial Market and Reserve Management Department, said the second-phase financial master plan would aim at improving the banking system's liquidity risk management through derivatives instruments.
Other measures include promoting mortgage insurance and allowing financial institutions to use securities other than government bonds as borrowing collateral to improve liquidity.
The Central Bank also plans to develop payment systems that facilitate cross-currency real-time settlement, he said.
Betagro aims to build equipment exports
Betagro aims to build equipment exports
New facility will target emerging economies
PHUSADEE ARUNMAS
Betagro Group, one of the country's largest food processors and exporters, has set its sights on exporting farm equipment to emerging nations now that its manufacturing facility is ready for commercial production.
The company announced its export objective as it launched two products yesterday _ ventilation controller technology (VenTech) and 50-inch energy-saving fans for an evaporative cooling system and for pig farming (PowerTech).
The products have emerged from collaboration between the Betagro Group's subsidiary B International and Technology and King Mongkut's University of Technology Thonburi (KMUTT) carried out under the Industry Technology Assistance Programme (iTAP) of the National Science and Technology Development Agency (NSTDA).
According to Nopporn Vayuchote, executive vice-president of the Betagro Group, six more projects are in the pipeline: weighing apparatus for measuring feed in silos; heating pads for piglets; biogas production technology; energy-saving inverters for evaporative cooling systems; and energy-saving cooling pads.
Mr Nopporn said equipment from the company's production lines would not only supply the group but also be exported, especially to emerging markets including India, Bangladesh and Nepal, and to neighbouring countries with growing livestock industries such as Laos, Cambodia and Vietnam.
Betagro has been developing farm equipment for four to five years and Cherdchai Sinsarng, general manager of B International & Technology, estimates that producing its own equipment could save the group more than 100 million baht a year from imports.
B International is committed to setting aside about 3% of the company's sales in research and development and plans to introduce at least two new farm equipment products a year, he said.
B International currently generates about 400-500 million baht sales per year, contributing 1% to Betagro's revenues, which are expected to top 45 billion baht this year.
Thailand's farm equipment market is valued at about four billion baht a year, with imported products valued around 1.5 billion baht. Mr Cherdchai said he did not expect this market to expand this year.
''As livestock prices are not very good at the moment farmers are unlikely to want to replace much of their equipment this year. We therefore expect our sales to see flat growth in 2008,'' said Mr Cherdchai.
New facility will target emerging economies
PHUSADEE ARUNMAS
Betagro Group, one of the country's largest food processors and exporters, has set its sights on exporting farm equipment to emerging nations now that its manufacturing facility is ready for commercial production.
The company announced its export objective as it launched two products yesterday _ ventilation controller technology (VenTech) and 50-inch energy-saving fans for an evaporative cooling system and for pig farming (PowerTech).
The products have emerged from collaboration between the Betagro Group's subsidiary B International and Technology and King Mongkut's University of Technology Thonburi (KMUTT) carried out under the Industry Technology Assistance Programme (iTAP) of the National Science and Technology Development Agency (NSTDA).
According to Nopporn Vayuchote, executive vice-president of the Betagro Group, six more projects are in the pipeline: weighing apparatus for measuring feed in silos; heating pads for piglets; biogas production technology; energy-saving inverters for evaporative cooling systems; and energy-saving cooling pads.
Mr Nopporn said equipment from the company's production lines would not only supply the group but also be exported, especially to emerging markets including India, Bangladesh and Nepal, and to neighbouring countries with growing livestock industries such as Laos, Cambodia and Vietnam.
Betagro has been developing farm equipment for four to five years and Cherdchai Sinsarng, general manager of B International & Technology, estimates that producing its own equipment could save the group more than 100 million baht a year from imports.
B International is committed to setting aside about 3% of the company's sales in research and development and plans to introduce at least two new farm equipment products a year, he said.
B International currently generates about 400-500 million baht sales per year, contributing 1% to Betagro's revenues, which are expected to top 45 billion baht this year.
Thailand's farm equipment market is valued at about four billion baht a year, with imported products valued around 1.5 billion baht. Mr Cherdchai said he did not expect this market to expand this year.
''As livestock prices are not very good at the moment farmers are unlikely to want to replace much of their equipment this year. We therefore expect our sales to see flat growth in 2008,'' said Mr Cherdchai.
Issues behind the ads
CORPORATE Counsellor
Issues behind the ads
TILLEKE & GIBBINS
In a scene that unfolds every day, the marketing team of a consumer goods company engages an advertising agency to create a campaign to promote a product. The product manager briefs the agency, identifies media channels and provides general direction on the scope and look and feel of the campaign.
Weeks later, the agency comes back with a campaign proposal and mock-up. The management and the product manager like the idea and decide to proceed. Storyboards and artwork of brochures, magazine ads and billboards are later forwarded to the product manager for approval, and ultimately to senior management, who sign off on the production. The whole process seems complete, but is it?
There is one step missing that is crucial in mitigating unnecessary trouble and expense for the company: legal clearance. The issues relevant to attractive and effective advertising materials go beyond marketing strategy. Critically important legal issues such as intellectual property (IP) clearance and regulatory compliance must also be considered.
In terms of IP, clearance of photos or ad soundtracks, presenters' rights and trademarks must be given adequate thought. Often, advertising will rely on a celebrity presenter. The agency usually has the responsibility of hiring and entering into a contract with the presenter (though in many cases in Thailand, a contract may not exist at all).
The agreement with the presenter serves to protect the interests of both presenter and company. Ideally, it should identify who the actual hirer is and who is entitled to the final rights of production. The scope of work performed must be clear. To avoid a dispute that could lead to negative publicity, this is a good time to agree whether adaptation of the work (for example, from a TV commercial to a still shot for a subsequent magazine ad) is permissible and what the compensation is for that additional use.
If the advertising piece must borrow photos, graphics or songs from other authors, a licensing agreement or permission from those creators must be sought. It is imperative that the creator grant authorisation to the agency or the hiring company for multiple use of the work, while confirming that the creator understands that the work will be published or broadcast several times.
Alternatively, if artists (e.g., photographers, composers, singers) are hired to create new copyrighted work, a written agreement must ensure that the hirer is identified as the proper rights owner and copyright has been assigned.
Certain catchy slogans or other wording used in the advertising material could potentially be a registered trademark of another party. Current law in Thailand provides that use of a trademark does not necessarily need to be an exact duplication to result in an infringement. Other factors that need to be taken into account include the degree of similarity in appearance and pronunciation, types of goods and likelihood of public confusion. To ensure that the advertising material does not unintentionally infringe someone's right, legal clearance is strongly recommended.
Regulatory compliance is also important. As a general rule, language used in advertising material in Thailand must not lead to a misunderstanding and should not be false, deceitful or contrary to Thai culture. It is not permissible to use words that exaggerate product quality such as excellent, exceptional, perfect, effective, magic, or best. Any claims of effectiveness or quality must carry scientific proof to substantiate such statements.
Some industries are required to comply with specific rules and regulations. Examples of industries that must exercise caution before issuing communications to the public include tobacco, alcohol, pharmaceutical, food, medical devices, and cosmetics. Advertising material for certain products must receive approval from the Food and Drug Administration before use in the marketplace.
Violation of advertising rules and regulations runs the risk of fines from the FDA. If the Office of the Consumer Protection Board is responsible, an order to amend the material or make a restatement may be issued. Complete removal of the material is often seen as the appropriate action. Needless to say, this results in significant expense that could have been avoided if the proper preventive measures to confirm regulatory compliance had been undertaken.
Written by Areeya Ratanayu, Consultant, Intellectual Property Department, Tilleke & Gibbins International Ltd. Please send comments or suggestions to Marilyn Tinnakul at marilyn.t@tillekeandgibbins.com
Issues behind the ads
TILLEKE & GIBBINS
In a scene that unfolds every day, the marketing team of a consumer goods company engages an advertising agency to create a campaign to promote a product. The product manager briefs the agency, identifies media channels and provides general direction on the scope and look and feel of the campaign.
Weeks later, the agency comes back with a campaign proposal and mock-up. The management and the product manager like the idea and decide to proceed. Storyboards and artwork of brochures, magazine ads and billboards are later forwarded to the product manager for approval, and ultimately to senior management, who sign off on the production. The whole process seems complete, but is it?
There is one step missing that is crucial in mitigating unnecessary trouble and expense for the company: legal clearance. The issues relevant to attractive and effective advertising materials go beyond marketing strategy. Critically important legal issues such as intellectual property (IP) clearance and regulatory compliance must also be considered.
In terms of IP, clearance of photos or ad soundtracks, presenters' rights and trademarks must be given adequate thought. Often, advertising will rely on a celebrity presenter. The agency usually has the responsibility of hiring and entering into a contract with the presenter (though in many cases in Thailand, a contract may not exist at all).
The agreement with the presenter serves to protect the interests of both presenter and company. Ideally, it should identify who the actual hirer is and who is entitled to the final rights of production. The scope of work performed must be clear. To avoid a dispute that could lead to negative publicity, this is a good time to agree whether adaptation of the work (for example, from a TV commercial to a still shot for a subsequent magazine ad) is permissible and what the compensation is for that additional use.
If the advertising piece must borrow photos, graphics or songs from other authors, a licensing agreement or permission from those creators must be sought. It is imperative that the creator grant authorisation to the agency or the hiring company for multiple use of the work, while confirming that the creator understands that the work will be published or broadcast several times.
Alternatively, if artists (e.g., photographers, composers, singers) are hired to create new copyrighted work, a written agreement must ensure that the hirer is identified as the proper rights owner and copyright has been assigned.
Certain catchy slogans or other wording used in the advertising material could potentially be a registered trademark of another party. Current law in Thailand provides that use of a trademark does not necessarily need to be an exact duplication to result in an infringement. Other factors that need to be taken into account include the degree of similarity in appearance and pronunciation, types of goods and likelihood of public confusion. To ensure that the advertising material does not unintentionally infringe someone's right, legal clearance is strongly recommended.
Regulatory compliance is also important. As a general rule, language used in advertising material in Thailand must not lead to a misunderstanding and should not be false, deceitful or contrary to Thai culture. It is not permissible to use words that exaggerate product quality such as excellent, exceptional, perfect, effective, magic, or best. Any claims of effectiveness or quality must carry scientific proof to substantiate such statements.
Some industries are required to comply with specific rules and regulations. Examples of industries that must exercise caution before issuing communications to the public include tobacco, alcohol, pharmaceutical, food, medical devices, and cosmetics. Advertising material for certain products must receive approval from the Food and Drug Administration before use in the marketplace.
Violation of advertising rules and regulations runs the risk of fines from the FDA. If the Office of the Consumer Protection Board is responsible, an order to amend the material or make a restatement may be issued. Complete removal of the material is often seen as the appropriate action. Needless to say, this results in significant expense that could have been avoided if the proper preventive measures to confirm regulatory compliance had been undertaken.
Written by Areeya Ratanayu, Consultant, Intellectual Property Department, Tilleke & Gibbins International Ltd. Please send comments or suggestions to Marilyn Tinnakul at marilyn.t@tillekeandgibbins.com
Food and drink producers ask for a sugar subsidy
COMMODITIES
Food and drink producers ask for a sugar subsidy
VICHAYA PITSUWAN
The Federation of Thai Industries (FTI) wants the the Cane and Sugar Fund to subsidise sugar for food and drink manufacturers to help alleviate their troubles.
FTI chairman Santi Vilassakdanont yesterday told Industry Minister Mingkwan Sangsuwan that the food and drinks industry had been severely hit by sugar's price increase by five baht a kilogramme approved by the cabinet in April.
The industry asked the ministry to help, or its sales, production and growth would be affected, said Mr Santi.
''The industry uses 800,000 tonnes of sugar yearly, or 40% of domestic demand. Given the size of its consumption and the sugar price increase, its operating costs have increased dramatically,'' Mr Mingkwan said after the talks.
The industry asked the ministry to consider a special quota of low-priced sugar to food and drink manufacturers whose sales were for the domestic market. It also asked officials to review regulations so that local food and drink manufacturers could buy sugar for export, which is sold at lower prices, more easily.
The industry proposed that the Cane and Sugar Fund subsidise its sugar price by five baht a kilogramme now that the fund pays mills less after the price rise.
The fund's director declined to comment, saying he needed to look at the proposal carefully first.
The fund now has a deficit of 24 billion baht, owed by cane farmers who needed to borrow money as farmers received revenue from selling cane at a price that did not cover production costs.
The cabinet's approval of a higher sugar price was intended as an incentive for cane farmers to remain in business and produce enough sugar to meet local demand, support the ethanol industry and keep Thailand as a leader in world sugar exports.
Thailand is the second largest sugar exporter to the world market after Brazil.
Food and drink producers ask for a sugar subsidy
VICHAYA PITSUWAN
The Federation of Thai Industries (FTI) wants the the Cane and Sugar Fund to subsidise sugar for food and drink manufacturers to help alleviate their troubles.
FTI chairman Santi Vilassakdanont yesterday told Industry Minister Mingkwan Sangsuwan that the food and drinks industry had been severely hit by sugar's price increase by five baht a kilogramme approved by the cabinet in April.
The industry asked the ministry to help, or its sales, production and growth would be affected, said Mr Santi.
''The industry uses 800,000 tonnes of sugar yearly, or 40% of domestic demand. Given the size of its consumption and the sugar price increase, its operating costs have increased dramatically,'' Mr Mingkwan said after the talks.
The industry asked the ministry to consider a special quota of low-priced sugar to food and drink manufacturers whose sales were for the domestic market. It also asked officials to review regulations so that local food and drink manufacturers could buy sugar for export, which is sold at lower prices, more easily.
The industry proposed that the Cane and Sugar Fund subsidise its sugar price by five baht a kilogramme now that the fund pays mills less after the price rise.
The fund's director declined to comment, saying he needed to look at the proposal carefully first.
The fund now has a deficit of 24 billion baht, owed by cane farmers who needed to borrow money as farmers received revenue from selling cane at a price that did not cover production costs.
The cabinet's approval of a higher sugar price was intended as an incentive for cane farmers to remain in business and produce enough sugar to meet local demand, support the ethanol industry and keep Thailand as a leader in world sugar exports.
Thailand is the second largest sugar exporter to the world market after Brazil.
Dhipaya plans to lure more retail clients
INSURANCE
Dhipaya plans to lure more retail clients
CHAROEN KITTIKANYA
Dhipaya Insurance is banking more on personal lines as premium contributions from the construction industry and megaprojects are likely to be bearish this year because of political instability and unfavourable economic conditions. ''We hope to expand into personal lines as much as possible, as new construction and megaprojects planned by the government are unlikely to take place within this year, mainly because of political uncertainties,'' said the company's managing director Charuek Kungwanphanich.
He said contributions from big corporations and state enterprises, one of Dhipaya's major customer groups, were relatively sluggish in the first half, resulting in flat growth overall.
However, insurance contracts with big clients are generally signed in the third and fourth quarters of the year.
For the first six months, Dhipaya reported written premiums of 3.69 billion baht, 2.12 billion of which came from miscellaneous business, mostly from megaprojects of the government and state enterprises.
Motor insurance generated 1.06 billion baht, fire 399.14 million, and marine and cargo 105.48 million baht. Underwriting profit increased by 11% to 707.45 million baht, with investment profit increasing by only 4% to 172.47 million.
Net profit rose 3.23% to 303.90 million baht from 294.39 million a year earlier.
According to Mr Charuek, greater contributions from state megaprojects in the second half were expected to help raise written premium growth by 5-6% this year.
To meet the growth target and tap more into personal lines, the company yesterday launched TIP SMART, a smart-card programme aiming to attract buyers of personal accident and household insurance.
''TIP SMART will make insurance much more convenient and simple. Buyers just rub off the access code on the back of the card and call back the call centre at 02-660-3455 and the policy's protection will become effective immediately,'' he said.
Mr Charuek admitted returns from investments were likely to remain bearish until the end of this year, as the investment environment, particularly for the stock market, was unlikely to improve soon.
The company currently has investment assets of six billion baht, with about one billion in stocks.
It expects net profit to increase to about 565 million baht by the end of the year, up slightly from 531 million a year earlier.
Dhipaya plans to lure more retail clients
CHAROEN KITTIKANYA
Dhipaya Insurance is banking more on personal lines as premium contributions from the construction industry and megaprojects are likely to be bearish this year because of political instability and unfavourable economic conditions. ''We hope to expand into personal lines as much as possible, as new construction and megaprojects planned by the government are unlikely to take place within this year, mainly because of political uncertainties,'' said the company's managing director Charuek Kungwanphanich.
He said contributions from big corporations and state enterprises, one of Dhipaya's major customer groups, were relatively sluggish in the first half, resulting in flat growth overall.
However, insurance contracts with big clients are generally signed in the third and fourth quarters of the year.
For the first six months, Dhipaya reported written premiums of 3.69 billion baht, 2.12 billion of which came from miscellaneous business, mostly from megaprojects of the government and state enterprises.
Motor insurance generated 1.06 billion baht, fire 399.14 million, and marine and cargo 105.48 million baht. Underwriting profit increased by 11% to 707.45 million baht, with investment profit increasing by only 4% to 172.47 million.
Net profit rose 3.23% to 303.90 million baht from 294.39 million a year earlier.
According to Mr Charuek, greater contributions from state megaprojects in the second half were expected to help raise written premium growth by 5-6% this year.
To meet the growth target and tap more into personal lines, the company yesterday launched TIP SMART, a smart-card programme aiming to attract buyers of personal accident and household insurance.
''TIP SMART will make insurance much more convenient and simple. Buyers just rub off the access code on the back of the card and call back the call centre at 02-660-3455 and the policy's protection will become effective immediately,'' he said.
Mr Charuek admitted returns from investments were likely to remain bearish until the end of this year, as the investment environment, particularly for the stock market, was unlikely to improve soon.
The company currently has investment assets of six billion baht, with about one billion in stocks.
It expects net profit to increase to about 565 million baht by the end of the year, up slightly from 531 million a year earlier.
CPF to benefit from WTO shrimp ruling
CPF to benefit from WTO shrimp ruling
US to cut its anti-dumping duties
POST REPORTERS
Charoen Pokphand Foods Plc, the country's largest food producer, stands to gain from a World Trade Organisation ruling against the United States in an anti-dumping case involving Thai shrimp exports.
According to Adirek Sripratak, the CPF president and CEO, the decision by the WTO's top court was good news for the entire shrimp industry.
The ruling would increase the competitiveness of Thai shrimp products in the United States, as exporters' costs would decrease, he said.
The Department of Commerce in Washington has just announced duties for Thai shrimp at 3.18%, far lower than previous 6.05% penalties.
''The WTO ruling will benefit CPF as it gives the company more opportunities to increase sales in the US,'' said Mr Adirek.
Mr Adirek said CPF now expects to raise its shrimp shipments to the United States to 40,000 tonnes this year, compared with 34,000 tonnes last year.
Shrimp exports to the US generally account for 20% of CPF's sales.
CPF expects a 10% rise in total sales this year to 150 billion baht thanks to higher market prices of all meats.
Revenue from foreign operations accounted for about 17-18% of the company's total last year. It is expected to rise further this year when the CPF plant in Russia opens this month.
A number of food products under the CP brand are now marketed in 40 countries after three years of steady efforts to build the brand.
According to Mr Adirek, overall Thai shrimp exports are also expected to stand to benefit from the ruling, raising shipments to 400,000 tonnes this year from 350,000 tonnes last year.
The country's shrimp export value is expected to grow by at least 15% this year to 80 billion baht this year.
Thailand is the world's top shrimp producer and the number-one source of shrimp for the United States.
The US is Thailand's biggest market for shrimp, comprising 42-43% of exports, followed by Japan at 20%, the European Union at 15%, and Australia and Canada making up the rest.
CPF shares closed yesterday on the SET at 3.90 baht, up 12 satang, in trade worth 78.27 million baht.
US to cut its anti-dumping duties
POST REPORTERS
Charoen Pokphand Foods Plc, the country's largest food producer, stands to gain from a World Trade Organisation ruling against the United States in an anti-dumping case involving Thai shrimp exports.
According to Adirek Sripratak, the CPF president and CEO, the decision by the WTO's top court was good news for the entire shrimp industry.
The ruling would increase the competitiveness of Thai shrimp products in the United States, as exporters' costs would decrease, he said.
The Department of Commerce in Washington has just announced duties for Thai shrimp at 3.18%, far lower than previous 6.05% penalties.
''The WTO ruling will benefit CPF as it gives the company more opportunities to increase sales in the US,'' said Mr Adirek.
Mr Adirek said CPF now expects to raise its shrimp shipments to the United States to 40,000 tonnes this year, compared with 34,000 tonnes last year.
Shrimp exports to the US generally account for 20% of CPF's sales.
CPF expects a 10% rise in total sales this year to 150 billion baht thanks to higher market prices of all meats.
Revenue from foreign operations accounted for about 17-18% of the company's total last year. It is expected to rise further this year when the CPF plant in Russia opens this month.
A number of food products under the CP brand are now marketed in 40 countries after three years of steady efforts to build the brand.
According to Mr Adirek, overall Thai shrimp exports are also expected to stand to benefit from the ruling, raising shipments to 400,000 tonnes this year from 350,000 tonnes last year.
The country's shrimp export value is expected to grow by at least 15% this year to 80 billion baht this year.
Thailand is the world's top shrimp producer and the number-one source of shrimp for the United States.
The US is Thailand's biggest market for shrimp, comprising 42-43% of exports, followed by Japan at 20%, the European Union at 15%, and Australia and Canada making up the rest.
CPF shares closed yesterday on the SET at 3.90 baht, up 12 satang, in trade worth 78.27 million baht.
Budget carrier's planes probed
AVIATION
Budget carrier's planes probed
BOONSONG KOSITCHOTETHANA
The safety reputation of One-Two-Go Airlines has been called into question further by Spanair's fatal plane crash in Madrid on Aug 20 and the extended suspension of the Thai carrier's operating licence by another 30 days.
The Spanair accident that killed 153 people involves a McDonnell Douglas MD-82, a similar type of jetliner to that used on the Thai budget carrier's ill-fated flight OG269, which crashed in Phuket on Sept 16 last year, leaving 89 dead and 41 injured.
Thailand's Department of Civil Aviation (DCA) has extended the suspension of One-Two-Go's licence to Sept 20 as the airline failed to meet the safety standards on the Aug 21 deadline.
One-Two-Go executives explained the airline was unable to meet the deadline as its pilots, numbering more than 60, had to wait their turn for retraining on busy flight simulators in Japan.
Last month, the DCA suspended the airline and parent carrier Orient Thai Airlines after discovering sub-standard safety requirements, lack of proper airline management, and falsification of documents by some pilots who misstated their level of aviation proficiency.
A senior executive of One-Two-Go agreed with aviation industry analysts that the two cases were worsening the carrier's image, and that could affect whether it would be allowed to fly again.
''It will be an uphill task for One-Two-Go to restore passengers' confidence in its services because it is served by an all-MD-80 series fleet,'' said the executive.
Shortly after the crash, Spanair said the US-made MD-82 airliner experienced overheating in an air intake valve before a first attempt at takeoff, but added that it was not clear if that had anything to do with the crash.
International media reports raised questions about the safety of the MD-80 series of aircraft, which they said has had a particularly troubled history.
American Airlines was forced to ground its entire MD-80 series earlier this year after a safety audit, canceling around 6,000 flights as hydraulic wiring was checked.
Almost 400 people have died in accidents involving the MD-80 series over the past five years, including the One-Two-Go runway crash at Phuket International Airport in Thailand and the 2005 West Caribbean Airways flight 708 crash in northwest Venezuela that killed 160 passengers and crew.
However, AirDisaster.com, a website dedicated to aviation safety information, ranks the MD-80 series as the second safest plane in the skies. It also lists 18 major accidents involving the model since its introduction.
The mid-range, two-engine, single-aisle jet, built by McDonnell Douglas of Long Beach, California, was introduced in 1980. MD-80 series aircraft carry up to 172 passengers, depending on seat configuration and requirements.
Nearly 1,200 were built until production ceased in 1999, two years after McDonnell Douglas's merger with the US plane-making giant Boeing.
Authorities have indirectly signalled One-Two-Go executives, who seemed to be disheartened by the turn of events, to call it quits for good, say aviation industry insiders.
But before deciding on the fate of the airline, One-Two-Go bosses want to first pass the DCA's safety audit hurdle in order to ''retrieve our pride and honour''.
About half of some 1,000 staff, including 80 cockpit staff employed by One-Two-Go and parent carrier Orient Thai Airlines have reportedly been seeking an exit as the airline plunged into financial difficulties due to the grounding.
The airlines are also facing a string of multi-billion-baht lawsuits in US courts by lawyers representing British and American families of victims of OG 269.
Budget carrier's planes probed
BOONSONG KOSITCHOTETHANA
The safety reputation of One-Two-Go Airlines has been called into question further by Spanair's fatal plane crash in Madrid on Aug 20 and the extended suspension of the Thai carrier's operating licence by another 30 days.
The Spanair accident that killed 153 people involves a McDonnell Douglas MD-82, a similar type of jetliner to that used on the Thai budget carrier's ill-fated flight OG269, which crashed in Phuket on Sept 16 last year, leaving 89 dead and 41 injured.
Thailand's Department of Civil Aviation (DCA) has extended the suspension of One-Two-Go's licence to Sept 20 as the airline failed to meet the safety standards on the Aug 21 deadline.
One-Two-Go executives explained the airline was unable to meet the deadline as its pilots, numbering more than 60, had to wait their turn for retraining on busy flight simulators in Japan.
Last month, the DCA suspended the airline and parent carrier Orient Thai Airlines after discovering sub-standard safety requirements, lack of proper airline management, and falsification of documents by some pilots who misstated their level of aviation proficiency.
A senior executive of One-Two-Go agreed with aviation industry analysts that the two cases were worsening the carrier's image, and that could affect whether it would be allowed to fly again.
''It will be an uphill task for One-Two-Go to restore passengers' confidence in its services because it is served by an all-MD-80 series fleet,'' said the executive.
Shortly after the crash, Spanair said the US-made MD-82 airliner experienced overheating in an air intake valve before a first attempt at takeoff, but added that it was not clear if that had anything to do with the crash.
International media reports raised questions about the safety of the MD-80 series of aircraft, which they said has had a particularly troubled history.
American Airlines was forced to ground its entire MD-80 series earlier this year after a safety audit, canceling around 6,000 flights as hydraulic wiring was checked.
Almost 400 people have died in accidents involving the MD-80 series over the past five years, including the One-Two-Go runway crash at Phuket International Airport in Thailand and the 2005 West Caribbean Airways flight 708 crash in northwest Venezuela that killed 160 passengers and crew.
However, AirDisaster.com, a website dedicated to aviation safety information, ranks the MD-80 series as the second safest plane in the skies. It also lists 18 major accidents involving the model since its introduction.
The mid-range, two-engine, single-aisle jet, built by McDonnell Douglas of Long Beach, California, was introduced in 1980. MD-80 series aircraft carry up to 172 passengers, depending on seat configuration and requirements.
Nearly 1,200 were built until production ceased in 1999, two years after McDonnell Douglas's merger with the US plane-making giant Boeing.
Authorities have indirectly signalled One-Two-Go executives, who seemed to be disheartened by the turn of events, to call it quits for good, say aviation industry insiders.
But before deciding on the fate of the airline, One-Two-Go bosses want to first pass the DCA's safety audit hurdle in order to ''retrieve our pride and honour''.
About half of some 1,000 staff, including 80 cockpit staff employed by One-Two-Go and parent carrier Orient Thai Airlines have reportedly been seeking an exit as the airline plunged into financial difficulties due to the grounding.
The airlines are also facing a string of multi-billion-baht lawsuits in US courts by lawyers representing British and American families of victims of OG 269.
Thai-Cambodian oil talks stall
Thai-Cambodian oil talks stall
Border dispute blocks long-sought deal
YUTHANA PRAIWAN & NAREERAT WIRIYAPONG
Negotiations involving overlapping claims to undersea oil and natural gas fields in the Gulf of Thailand are likely to drag on as both Thailand and Cambodia still need to seek agreement on the disputed border area, says Krairit Nilkuha, the director-general of the Department of Mineral Fuels.
The two countries had opened negotiations in 1995 in a bid to tap into potentially rich reserves.
The talks led to a memorandum of understanding signed in 2001 by the Thai and Cambodian prime ministers.
Under the pact, they agreed in principle to join in development and share profits from a total of eight blocks of petroleum fields in the overlapping claims area (OCA).
The 2001 agreement still needs approval of the Thai House of Representatives to comply with provisions in the 2007 Constitution governing international agreements and treaties.
However, the main obstacle centres on two petroleum blocks, designated Block 5 and 6, where clarification of the disputed sea border is still sought.
Since the memorandum of understanding was signed in 2001, only five meetings have been held with no real progress made, even though both sides have clearly expressed their willingness to reach a conclusion as soon as possible.
Committees and working groups are working to seek an agreeable solution for the whole 26,000-square-kilometre OCA.
Leaders from both countries last failed to hammer out a formal arrangement in 2006 during a visit to Cambodia by former prime minister Thaksin Shinawatra.
However, Mr Krairit said he was optimistic that negotiations could be concluded soon, with a goal of seeing production from the areas begin within 10 years.
''All state agencies related to the OCA are accelerating efforts to seek the best solution that could help resolve the disputed sea border between the two countries, so we could resume talks,'' he said.
Thailand first awarded exploration licences to work in the areas in 1968 to Idemitsu, Chevron, British Gas and Mitsui Oil.
However, the dispute first arose in 1972 when Cambodia claimed its overlapping sea border. The Phnom Penh government also later awarded the licences over the exact same areas in 1997 to Conoco Phillips, Shell and Idemitsu.
As the dispute remains, those licence holders are unable to gain access to the areas in question.
Mr Krairit said he believed that resources in the area were plentiful, based on results from blocks nearby in the Pattani basin in Thai territory, where there are proved reserves of 5.4 trillion cubic feet of natural gas by US-based Chevron and Thailand's PTT Exploration and Production.
No data on petroleum reserves within the disputed areas have been revealed due to the extreme sensitivity of the border claims.
Mr Krairit said the talks should rely on the International Territory Law following the model of a Thai-Vietnamese sea territory clarification in 1997, or the Malaysia-Thailand Joint Development Area (JDA) in 1990.
Viraphand Vacharathit, the Thai ambassador to Cambodia, agreed that the prospects for the talks seemed brighter, adding that the two governments had agreed in principle that the benefit-sharing model of the Thailand-Malaysia JDA was the best solution.
''What has yet to be concluded is sharing ratio for the spilt of the resources,'' said the ambassador.
Authorities on both sides have discussed OCA issues occasionally. Talks have been positive so far because both parties want to reap benefits from the untapped gas deposits.
''It is believed that the OCA has more natural gas reserves than oil. However, the amount of reserves has yet to be confirmed,'' Mr Viraphand said.
Border dispute blocks long-sought deal
YUTHANA PRAIWAN & NAREERAT WIRIYAPONG
Negotiations involving overlapping claims to undersea oil and natural gas fields in the Gulf of Thailand are likely to drag on as both Thailand and Cambodia still need to seek agreement on the disputed border area, says Krairit Nilkuha, the director-general of the Department of Mineral Fuels.
The two countries had opened negotiations in 1995 in a bid to tap into potentially rich reserves.
The talks led to a memorandum of understanding signed in 2001 by the Thai and Cambodian prime ministers.
Under the pact, they agreed in principle to join in development and share profits from a total of eight blocks of petroleum fields in the overlapping claims area (OCA).
The 2001 agreement still needs approval of the Thai House of Representatives to comply with provisions in the 2007 Constitution governing international agreements and treaties.
However, the main obstacle centres on two petroleum blocks, designated Block 5 and 6, where clarification of the disputed sea border is still sought.
Since the memorandum of understanding was signed in 2001, only five meetings have been held with no real progress made, even though both sides have clearly expressed their willingness to reach a conclusion as soon as possible.
Committees and working groups are working to seek an agreeable solution for the whole 26,000-square-kilometre OCA.
Leaders from both countries last failed to hammer out a formal arrangement in 2006 during a visit to Cambodia by former prime minister Thaksin Shinawatra.
However, Mr Krairit said he was optimistic that negotiations could be concluded soon, with a goal of seeing production from the areas begin within 10 years.
''All state agencies related to the OCA are accelerating efforts to seek the best solution that could help resolve the disputed sea border between the two countries, so we could resume talks,'' he said.
Thailand first awarded exploration licences to work in the areas in 1968 to Idemitsu, Chevron, British Gas and Mitsui Oil.
However, the dispute first arose in 1972 when Cambodia claimed its overlapping sea border. The Phnom Penh government also later awarded the licences over the exact same areas in 1997 to Conoco Phillips, Shell and Idemitsu.
As the dispute remains, those licence holders are unable to gain access to the areas in question.
Mr Krairit said he believed that resources in the area were plentiful, based on results from blocks nearby in the Pattani basin in Thai territory, where there are proved reserves of 5.4 trillion cubic feet of natural gas by US-based Chevron and Thailand's PTT Exploration and Production.
No data on petroleum reserves within the disputed areas have been revealed due to the extreme sensitivity of the border claims.
Mr Krairit said the talks should rely on the International Territory Law following the model of a Thai-Vietnamese sea territory clarification in 1997, or the Malaysia-Thailand Joint Development Area (JDA) in 1990.
Viraphand Vacharathit, the Thai ambassador to Cambodia, agreed that the prospects for the talks seemed brighter, adding that the two governments had agreed in principle that the benefit-sharing model of the Thailand-Malaysia JDA was the best solution.
''What has yet to be concluded is sharing ratio for the spilt of the resources,'' said the ambassador.
Authorities on both sides have discussed OCA issues occasionally. Talks have been positive so far because both parties want to reap benefits from the untapped gas deposits.
''It is believed that the OCA has more natural gas reserves than oil. However, the amount of reserves has yet to be confirmed,'' Mr Viraphand said.
Boathouse taps affordability
PROPERTY
Boathouse taps affordability
NINA SUEBSUKCHAROEN
HUA HIN : Speed and adaptability help in any game of life, and the developers of Boathouse Hua Hin have applied this by introducing lower-priced townhouses in tune with the current cautious mood.
Praphaisith Tankeyura, managing director of the Cha-am based 80-rai development bordering Hua Hin beach, said that instead of building 13-million-baht villas he has subdivided the land for townhouses.
The development will now feature 5.3-million-baht two-storey houses on its 24-square-wah plots closest to the sea along with 4.7-million-baht three-storey houses on 35-square-wah plots further from the sea.
There will also be semi-detached duplex houses on 46 to 66 sq wah plots, which will be priced between 5.6 and 7.9 million baht, depending on their proximity to the sea.
Reflecting a cost-conscious shift in investor sentiment over the last three years, the cheaper units are selling best.
Among locals _ who love the seaside town and make up 70% of buyers _ the strategy is also working well. Mr Praphaisith admits, though, that his company has had less success in Dubai and among Thais in New York.
In the United States, he found that parents are still attached to Hua Hin but their children ''are already Americanised''.
''They no longer want to stay in Hua Hin or Thailand,'' he said.
Two-storey houses on 24-square-wah plots closest to the sea will sell for 5.3 million baht.
In Dubai, promising leads turned out to be speculators unwilling to place a 30% down payment.
Mr Praphaisith's next target is Singapore, where he plans to participate in a marketing event in October.
But in all overseas markets, he says he faces a perception of economic and political problems that has kept foreigners away from all of Thailand's sectors.
''Overseas investors are nervous about Thailand,'' he said. ''They don't understand the real situation. As we are Thai, we know that Thaksin comes and goes, governments come and go, but the system is still here and still works.''
If this hurdle can be overcome, he claims his development can attract buyers through occupying a different niche to other resorts such as Phuket, where medium- and low-priced developments have suffered.
He dismisses Koh Samui as hamstrung by poor town planning. ''It will be a mess in future,'' he said.
Nor does he see a threat in Pattaya's continuing success.
''The buyers are not the family type,'' he said. ''It's a different market. Hua Hin is family-oriented plus you have a lot of golf courses, a lot of cultural attractions. We have good food and restaurants too.''
He claims Boathouse Hua Hin also has an edge over other developments because it obtained its land a few years ago at only three million baht a rai _ rather than at the 50-million-baht price tag prime plots carry today.
''Our condominiums are selling for less than 100,000 baht a square metre. On the top floor it's around 90,000 baht (a square metre). On the lower floor it's around 60,000 baht,'' he said.
The advantages of starting early carry into construction.
''When we signed the contract with Christiani and Nielsen to develop the infrastructure, one barrel of oil was only 37 dollars,'' he said.
As with many developments in the current inflationary context, Boathouse Hua Hin is being built with a focus on costs and with the application of value engineering to increase construction efficiency.
The potential risks of overlooking such considerations, says Mr Praphaisith, are illustrated by a Bangkok-based property company that failed to lock in construction costs before selling 70% to 80% of its units.
Mr Praphaisith said he hoped that all of Boathouse Hua Hin's 40 townhouses and duplex houses would be sold this year. Construction of these relatively simple structures should then start next year and finish by the end of 2009.
The selling of units in two more condominium buildings would then be launched, with construction starting once 40% are sold.
He added that Boathouse Hua Hin was launched with an 800-million-baht bank loan _ in addition to 720 million in cash _ and that he hoped 500 million baht would be repaid to the bank by the end of this year when units in the project's Condominium C will be transferred to buyers.
Boathouse taps affordability
NINA SUEBSUKCHAROEN
HUA HIN : Speed and adaptability help in any game of life, and the developers of Boathouse Hua Hin have applied this by introducing lower-priced townhouses in tune with the current cautious mood.
Praphaisith Tankeyura, managing director of the Cha-am based 80-rai development bordering Hua Hin beach, said that instead of building 13-million-baht villas he has subdivided the land for townhouses.
The development will now feature 5.3-million-baht two-storey houses on its 24-square-wah plots closest to the sea along with 4.7-million-baht three-storey houses on 35-square-wah plots further from the sea.
There will also be semi-detached duplex houses on 46 to 66 sq wah plots, which will be priced between 5.6 and 7.9 million baht, depending on their proximity to the sea.
Reflecting a cost-conscious shift in investor sentiment over the last three years, the cheaper units are selling best.
Among locals _ who love the seaside town and make up 70% of buyers _ the strategy is also working well. Mr Praphaisith admits, though, that his company has had less success in Dubai and among Thais in New York.
In the United States, he found that parents are still attached to Hua Hin but their children ''are already Americanised''.
''They no longer want to stay in Hua Hin or Thailand,'' he said.
Two-storey houses on 24-square-wah plots closest to the sea will sell for 5.3 million baht.
In Dubai, promising leads turned out to be speculators unwilling to place a 30% down payment.
Mr Praphaisith's next target is Singapore, where he plans to participate in a marketing event in October.
But in all overseas markets, he says he faces a perception of economic and political problems that has kept foreigners away from all of Thailand's sectors.
''Overseas investors are nervous about Thailand,'' he said. ''They don't understand the real situation. As we are Thai, we know that Thaksin comes and goes, governments come and go, but the system is still here and still works.''
If this hurdle can be overcome, he claims his development can attract buyers through occupying a different niche to other resorts such as Phuket, where medium- and low-priced developments have suffered.
He dismisses Koh Samui as hamstrung by poor town planning. ''It will be a mess in future,'' he said.
Nor does he see a threat in Pattaya's continuing success.
''The buyers are not the family type,'' he said. ''It's a different market. Hua Hin is family-oriented plus you have a lot of golf courses, a lot of cultural attractions. We have good food and restaurants too.''
He claims Boathouse Hua Hin also has an edge over other developments because it obtained its land a few years ago at only three million baht a rai _ rather than at the 50-million-baht price tag prime plots carry today.
''Our condominiums are selling for less than 100,000 baht a square metre. On the top floor it's around 90,000 baht (a square metre). On the lower floor it's around 60,000 baht,'' he said.
The advantages of starting early carry into construction.
''When we signed the contract with Christiani and Nielsen to develop the infrastructure, one barrel of oil was only 37 dollars,'' he said.
As with many developments in the current inflationary context, Boathouse Hua Hin is being built with a focus on costs and with the application of value engineering to increase construction efficiency.
The potential risks of overlooking such considerations, says Mr Praphaisith, are illustrated by a Bangkok-based property company that failed to lock in construction costs before selling 70% to 80% of its units.
Mr Praphaisith said he hoped that all of Boathouse Hua Hin's 40 townhouses and duplex houses would be sold this year. Construction of these relatively simple structures should then start next year and finish by the end of 2009.
The selling of units in two more condominium buildings would then be launched, with construction starting once 40% are sold.
He added that Boathouse Hua Hin was launched with an 800-million-baht bank loan _ in addition to 720 million in cash _ and that he hoped 500 million baht would be repaid to the bank by the end of this year when units in the project's Condominium C will be transferred to buyers.
BJC aims to raise share free float, expand abroad
TRADING & DISTRIBUTION
BJC aims to raise share free float, expand abroad
DARANA CHUDASRI
The SET-listed trading conglomerate Berli Jucker Plc (BJC) is considering raising its market free-float and also investing in Vietnam and Malaysia to expand in foreign markets.
The projects may be partially financed by operating cash flow and some bank loans, president Aswin Techajaroenvikul said yesterday.
''However, we are also studying a capital-increase programme to fund the projects and boost liquidity of our stock trading,'' he added.
The company has four core businesses: packaging, consumer and logistics, technical and industry, and information technology.Mr Aswin said the company had a 15% free-float of total shares listed on the Stock Exchange of Thailand. Its paid-up capital is 1.58 billion baht with a share par value of one baht. As of May 2008, TCC Holding, controlled by liquor billionaire Charoen Sirivadhanabhakdi, held a 75.04% stake in BJC.
Although the company's market capitalisation ranks fifth in the SET's commerce sector, its price-to-earnings ratio is only 5.8 times, compared to the double-digit rates of its industry peers.
''This might be because of our low market liquidity,'' Mr Aswin said. ''Thus, we are studying possibility of increasing capital together with investment expansion. All issues will be finalised within the third quarter.''
BJC spent 180 million baht to buy Jacy Foods Sdn Bhd in Malaysia in June. It will use the Malaysian company as its production base for Halal snacks to export to the Middle East and other Muslim countries.
For its investment in Vietnam, there are two or three projects including new machinery for glass manufacturing and the building of a factory to make consumer products.
Mr Aswin said BJC's export revenue was now less than 5% of total revenues but it would rise more in the near future.
The company posted 10.96 billion baht in revenue in the first half of this year, up from 9.265 billion in the same period last year. Net profit was 673 million baht, compared to 531 million a year earlier. Its gross margin was 25.2%, up from 24.9% the year before.
He said the company was trying to maintain its gross margin although it was being challenged by external factors such as high oil prices and falling domestic consumption.
The company has set its 2008 revenue target of at least 20 billion baht, up more than 10% from last year.
BJC shares closed yesterday on the SET at 5.25 baht, up five satang, in trade worth 1.18 million baht.
BJC aims to raise share free float, expand abroad
DARANA CHUDASRI
The SET-listed trading conglomerate Berli Jucker Plc (BJC) is considering raising its market free-float and also investing in Vietnam and Malaysia to expand in foreign markets.
The projects may be partially financed by operating cash flow and some bank loans, president Aswin Techajaroenvikul said yesterday.
''However, we are also studying a capital-increase programme to fund the projects and boost liquidity of our stock trading,'' he added.
The company has four core businesses: packaging, consumer and logistics, technical and industry, and information technology.Mr Aswin said the company had a 15% free-float of total shares listed on the Stock Exchange of Thailand. Its paid-up capital is 1.58 billion baht with a share par value of one baht. As of May 2008, TCC Holding, controlled by liquor billionaire Charoen Sirivadhanabhakdi, held a 75.04% stake in BJC.
Although the company's market capitalisation ranks fifth in the SET's commerce sector, its price-to-earnings ratio is only 5.8 times, compared to the double-digit rates of its industry peers.
''This might be because of our low market liquidity,'' Mr Aswin said. ''Thus, we are studying possibility of increasing capital together with investment expansion. All issues will be finalised within the third quarter.''
BJC spent 180 million baht to buy Jacy Foods Sdn Bhd in Malaysia in June. It will use the Malaysian company as its production base for Halal snacks to export to the Middle East and other Muslim countries.
For its investment in Vietnam, there are two or three projects including new machinery for glass manufacturing and the building of a factory to make consumer products.
Mr Aswin said BJC's export revenue was now less than 5% of total revenues but it would rise more in the near future.
The company posted 10.96 billion baht in revenue in the first half of this year, up from 9.265 billion in the same period last year. Net profit was 673 million baht, compared to 531 million a year earlier. Its gross margin was 25.2%, up from 24.9% the year before.
He said the company was trying to maintain its gross margin although it was being challenged by external factors such as high oil prices and falling domestic consumption.
The company has set its 2008 revenue target of at least 20 billion baht, up more than 10% from last year.
BJC shares closed yesterday on the SET at 5.25 baht, up five satang, in trade worth 1.18 million baht.
Asia Fashion Federation extends its role
Asia Fashion Federation extends its role
PHUSADEE ARUNMAS
The Asia Fashion Federation, which represents organisations from five countries including Thailand, has announced that it will extend its activities beyond textiles to cover lifestyle products.
Secretary-general Yodsapon Kijkusol said expanding to cover products such as leather goods, jewellery and decorative items would promote links among related industries and foster new joint ventures, data connections and fashion trends.
Mr Yodsapon added that the move would also help the industry grow and increase channels in marketing and sales.
The Asia Fashion Federation held a forum on Wednesday as part of the Bangkok International Fashion Fair and Bangkok International Leather Fair 2008 (BIFF & BIL 2008). The event at the Bangkok International Trade and Exhibition Center (Bitec) in Bang Na is open to trade visitors today and to the general public tomorrow and Sunday.
BIFF & BIL 2008 is positioned as a leading regional sourcing and networking platform for local and overseas fashion trade professionals. It aims to cover Thailand's fashion and leather business across design, manufacturing and merchandising.
Commerce Minister Chaiya Sasomsap said the ministry was confident that Thailand's fashion, textile and garment exports would grow at least 10% this year to US$7.83 billion.
Market growth is particularly rapid in Europe, Asia, China and Asean, he said.
PHUSADEE ARUNMAS
The Asia Fashion Federation, which represents organisations from five countries including Thailand, has announced that it will extend its activities beyond textiles to cover lifestyle products.
Secretary-general Yodsapon Kijkusol said expanding to cover products such as leather goods, jewellery and decorative items would promote links among related industries and foster new joint ventures, data connections and fashion trends.
Mr Yodsapon added that the move would also help the industry grow and increase channels in marketing and sales.
The Asia Fashion Federation held a forum on Wednesday as part of the Bangkok International Fashion Fair and Bangkok International Leather Fair 2008 (BIFF & BIL 2008). The event at the Bangkok International Trade and Exhibition Center (Bitec) in Bang Na is open to trade visitors today and to the general public tomorrow and Sunday.
BIFF & BIL 2008 is positioned as a leading regional sourcing and networking platform for local and overseas fashion trade professionals. It aims to cover Thailand's fashion and leather business across design, manufacturing and merchandising.
Commerce Minister Chaiya Sasomsap said the ministry was confident that Thailand's fashion, textile and garment exports would grow at least 10% this year to US$7.83 billion.
Market growth is particularly rapid in Europe, Asia, China and Asean, he said.
Thursday, August 28, 2008
True Corp could trim its investments
True Corp could trim its investments
Mobile and cable holdings may be cut
KOMSAN TORTERMVASANA
True Corp could divest part of its shareholdings in cable operator TrueVisions, as well as mobile phone provider True Move, according to True chief financial officer Noppadol Dej-udom.
But he ruled out any immediate deal, saying that the telecommunications conglomerate had until mid-2009 before it faced the need to raise funds.
Bitco, the holding company parent of True Move, raised three billion baht in capital last year through a rights offering to the CP Group, a major shareholder of True Corp. True Corp has the right to repurchase the 23% Bitco shareholding until July 2009 at the offering price of 0.5 baht per share plus carrying costs of 12%.
Mr Noppadol said True has not yet decided how it would finance the share buyback.
A debt issue was one possibility, although market volatility and rising yields make this an unattractive offer at the moment.
True itself could also issue new shares, also an unattractive prospect considering the dilution effect on existing shareholders.
''Another possibility would be to sell off some portion of TrueVisions or True Move to a new strategic partner,'' Mr Noppadol said. ''There is considerable investor interest in both companies.''
True currently holds 99% in TrueVisions and controls 76% in True Move, the country's third-largest mobile phone operator.
Mr Noppadol said any transaction this year was highly unlikely considering current market and economic trends. In any case, True would continue to hold a majority shareholding in both TrueVisions and True Move to support the company's overall ''convergence'' strategy blending content across different telecommunications channels.
''Forget about any deal over the next four months. It's impossible. The political situation and overall telecommunications market is simply not supportive of an asset sale,'' he said.
Athueck Asvanund, vice-chairman of True Corp, said there were no plans to discuss a possible share sale at the company's board meeting this month.
''It's not an issue at the moment, and True has no need right now to raise cash,'' he said.
True reported first half profits of 65.89 million baht compared with losses of 282 million last year. First-half revenues rose 2.5% year-on-year to 31 billion baht.
Shares of True on the Stock Exchange of Thailand closed yesterday at 2.32 baht, down 10 satang, in trade worth 32.35 million baht.
Mobile and cable holdings may be cut
KOMSAN TORTERMVASANA
True Corp could divest part of its shareholdings in cable operator TrueVisions, as well as mobile phone provider True Move, according to True chief financial officer Noppadol Dej-udom.
But he ruled out any immediate deal, saying that the telecommunications conglomerate had until mid-2009 before it faced the need to raise funds.
Bitco, the holding company parent of True Move, raised three billion baht in capital last year through a rights offering to the CP Group, a major shareholder of True Corp. True Corp has the right to repurchase the 23% Bitco shareholding until July 2009 at the offering price of 0.5 baht per share plus carrying costs of 12%.
Mr Noppadol said True has not yet decided how it would finance the share buyback.
A debt issue was one possibility, although market volatility and rising yields make this an unattractive offer at the moment.
True itself could also issue new shares, also an unattractive prospect considering the dilution effect on existing shareholders.
''Another possibility would be to sell off some portion of TrueVisions or True Move to a new strategic partner,'' Mr Noppadol said. ''There is considerable investor interest in both companies.''
True currently holds 99% in TrueVisions and controls 76% in True Move, the country's third-largest mobile phone operator.
Mr Noppadol said any transaction this year was highly unlikely considering current market and economic trends. In any case, True would continue to hold a majority shareholding in both TrueVisions and True Move to support the company's overall ''convergence'' strategy blending content across different telecommunications channels.
''Forget about any deal over the next four months. It's impossible. The political situation and overall telecommunications market is simply not supportive of an asset sale,'' he said.
Athueck Asvanund, vice-chairman of True Corp, said there were no plans to discuss a possible share sale at the company's board meeting this month.
''It's not an issue at the moment, and True has no need right now to raise cash,'' he said.
True reported first half profits of 65.89 million baht compared with losses of 282 million last year. First-half revenues rose 2.5% year-on-year to 31 billion baht.
Shares of True on the Stock Exchange of Thailand closed yesterday at 2.32 baht, down 10 satang, in trade worth 32.35 million baht.
Tourism sector fears protest effect
Tourism sector fears protest effect
CHADAMAS CHINMANEEVONG & CHATRUDEE THEPARAT
Tourism operators are feeling the effects of protests to topple Prime Minister Samak Sundaravej and say they could hurt the country's image and drag the sector down.
Natwut Amornvivat, president of Thailand Convention & Exhibition Bureau (TCEB), said he was concerned about the violent movement as it hurt the country's image and spread negative images around the world.
''We must keep an eye on the situation to see how it will end. Many events will not be cancelled, but some participants may not want to come to Bangkok,'' he said.
In the worst case, he said, bloodshed would cause TCEB to miss its Mice (meeting, incentive, convention and exhibition) business target.
''It's difficult to outline future plans,'' he said. ''The agency will have to work harder to boost the country's reputation again in the Mice sector.''
Mr Natwut added that if political instability ended with the house's dissolution, TCEB would be affected in other ways, including the delay of a budget allocation by the new government. Some budgets could be reduced, which would be an obstacle to promoting Mice business in the long term.
Mr Prakit Chinamourphong, president of the Thai Hotels Association (THA), agreed with Mr Natwut, saying the growing political instability was hurting tourism and hotel businesses.
''If the government and PAD don't compromise and think about the interests of the country, the problem will drag on and hurt the economy,'' said Mr Prakit.
During the first seven months of 2008, average hotel occupancy was 68%, up from 67% last year.
''If we had no political problems, the average occupancy would reach 70% or 80%,'' Mr Prakit said.
But Jennifer Cronin, vice-president for sales and marketing of the Dusit Group, was still optimistic that yesterday's PAD rally would not lead to bloodshed.
''Tourists are familiar with the protests as this kind of political movement has taken place in many western countries for years. The protests in Thailand are not as serious as in many countries,'' she said.
This year, the number of corporate, leisure and Mice tourists to Thailand continued to rise, despite PAD protests taking place since May.
Apichart Sankary, president of the Association of Thai Travel Agents (ATTA), said tourists who have already booked tour packages might cancel their trips if they felt unsafe. But he said no cancellations have been made yet, as it is still too early to make any decision.
''The protest might deter tourists who plan their trips in the high season between October and December,'' he said.
If the turmoil ends in two or three days without serious violence, he forecast that the impact would be unlikely to be felt by Thailand's tourism in high season.
The committee of the ATTA is scheduled to meet today to consider the latest PAD protest. Mr Apichart also called on both the government and PAD to solve problems in a peaceful way.
CHADAMAS CHINMANEEVONG & CHATRUDEE THEPARAT
Tourism operators are feeling the effects of protests to topple Prime Minister Samak Sundaravej and say they could hurt the country's image and drag the sector down.
Natwut Amornvivat, president of Thailand Convention & Exhibition Bureau (TCEB), said he was concerned about the violent movement as it hurt the country's image and spread negative images around the world.
''We must keep an eye on the situation to see how it will end. Many events will not be cancelled, but some participants may not want to come to Bangkok,'' he said.
In the worst case, he said, bloodshed would cause TCEB to miss its Mice (meeting, incentive, convention and exhibition) business target.
''It's difficult to outline future plans,'' he said. ''The agency will have to work harder to boost the country's reputation again in the Mice sector.''
Mr Natwut added that if political instability ended with the house's dissolution, TCEB would be affected in other ways, including the delay of a budget allocation by the new government. Some budgets could be reduced, which would be an obstacle to promoting Mice business in the long term.
Mr Prakit Chinamourphong, president of the Thai Hotels Association (THA), agreed with Mr Natwut, saying the growing political instability was hurting tourism and hotel businesses.
''If the government and PAD don't compromise and think about the interests of the country, the problem will drag on and hurt the economy,'' said Mr Prakit.
During the first seven months of 2008, average hotel occupancy was 68%, up from 67% last year.
''If we had no political problems, the average occupancy would reach 70% or 80%,'' Mr Prakit said.
But Jennifer Cronin, vice-president for sales and marketing of the Dusit Group, was still optimistic that yesterday's PAD rally would not lead to bloodshed.
''Tourists are familiar with the protests as this kind of political movement has taken place in many western countries for years. The protests in Thailand are not as serious as in many countries,'' she said.
This year, the number of corporate, leisure and Mice tourists to Thailand continued to rise, despite PAD protests taking place since May.
Apichart Sankary, president of the Association of Thai Travel Agents (ATTA), said tourists who have already booked tour packages might cancel their trips if they felt unsafe. But he said no cancellations have been made yet, as it is still too early to make any decision.
''The protest might deter tourists who plan their trips in the high season between October and December,'' he said.
If the turmoil ends in two or three days without serious violence, he forecast that the impact would be unlikely to be felt by Thailand's tourism in high season.
The committee of the ATTA is scheduled to meet today to consider the latest PAD protest. Mr Apichart also called on both the government and PAD to solve problems in a peaceful way.
The Mall Group commits to UN environmental mission
ENVIRONMENT
The Mall Group commits to UN environmental mission
PITSINEE JITPLEECHEEP
Ms Supaluck and Mr Chamnarn show new green bags as part of the campaign.
The Mall Group, the country's second largest retail chain, is to work with the United Nations Environment Programme (UNEP) to create a ''green'' role model that promotes environmental conservation.
As well as working with UNEP, the group will co-operate with other partners including the Energy Ministry and the Bangkok Metropolitan Administration on the second phase of its green campaign this year, said vice chairman Supaluck Umpujh.
''We will continue to implement measures and campaigns to raise consumer awareness of sustainability and to change behaviour and attitudes, particularly among the younger generation,'' she said.
Ms Supaluck said the group planned a series of green campaigns focusing on the theme of reduce, reuse and recycle. Promotional materials will be installed this year in every department to raise customer awareness and spread the campaign's message.
''Thailand uses up to 5.2 billion plastic bags per year,'' said Ms Supaluck.
''As the retail sector has become the heartbeat of a modern lifestyle, we will go forward in thinking green with sustainable plans.''
The Mall Group started its green campaign last year and plans to reduce the use of plastic bags at its retail outlets, including The Mall, The Emporium and Siam Paragon, by 6% from 100 million bags per year. It also hopes to cut expenses on electricity bills by 5%.
The group's Home Fresh Mart supermarket already provides packaging without foam and all outlets offer recycled plastic bags. Some 100 million baht will be invested in package recycling.
Chamnarn Maythaprechakul, the group's senior vice-president for marketing, said the group plans to negotiate with all of its suppliers to make their packaging environmentally friendly and to increase their range of green products.
The group also plans to turn waste from fresh vegetables to LPG gas and to encourage tenants inside its department stores to use drinking water in glass bottles. A green label is also planned for products available at its outlets.
Dechen Tsering, deputy regional director of UNEP, said it wanted to encourage retailers and consumers to become environmentally friendly and socially responsible by facing three major challenges _ reducing environmental impacts and carbon emission from their own operations; influencing suppliers to produce products with minimal environmental impact; and promoting eco-products and encouraging consumers to purchase eco-friendly products.
The Mall Group commits to UN environmental mission
PITSINEE JITPLEECHEEP
Ms Supaluck and Mr Chamnarn show new green bags as part of the campaign.
The Mall Group, the country's second largest retail chain, is to work with the United Nations Environment Programme (UNEP) to create a ''green'' role model that promotes environmental conservation.
As well as working with UNEP, the group will co-operate with other partners including the Energy Ministry and the Bangkok Metropolitan Administration on the second phase of its green campaign this year, said vice chairman Supaluck Umpujh.
''We will continue to implement measures and campaigns to raise consumer awareness of sustainability and to change behaviour and attitudes, particularly among the younger generation,'' she said.
Ms Supaluck said the group planned a series of green campaigns focusing on the theme of reduce, reuse and recycle. Promotional materials will be installed this year in every department to raise customer awareness and spread the campaign's message.
''Thailand uses up to 5.2 billion plastic bags per year,'' said Ms Supaluck.
''As the retail sector has become the heartbeat of a modern lifestyle, we will go forward in thinking green with sustainable plans.''
The Mall Group started its green campaign last year and plans to reduce the use of plastic bags at its retail outlets, including The Mall, The Emporium and Siam Paragon, by 6% from 100 million bags per year. It also hopes to cut expenses on electricity bills by 5%.
The group's Home Fresh Mart supermarket already provides packaging without foam and all outlets offer recycled plastic bags. Some 100 million baht will be invested in package recycling.
Chamnarn Maythaprechakul, the group's senior vice-president for marketing, said the group plans to negotiate with all of its suppliers to make their packaging environmentally friendly and to increase their range of green products.
The group also plans to turn waste from fresh vegetables to LPG gas and to encourage tenants inside its department stores to use drinking water in glass bottles. A green label is also planned for products available at its outlets.
Dechen Tsering, deputy regional director of UNEP, said it wanted to encourage retailers and consumers to become environmentally friendly and socially responsible by facing three major challenges _ reducing environmental impacts and carbon emission from their own operations; influencing suppliers to produce products with minimal environmental impact; and promoting eco-products and encouraging consumers to purchase eco-friendly products.
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