Defense & Security Thailand backs Korean role in Cobra Gold, Bangkok Post, Jan 12 Korea is the sixth country to take part in Cobra Gold, launched in 1982, joining Thailand, the US, Japan, Indonesia and Singapore. Under a Thai-US agreement, up to 10 countries could become involved in the exercises. An army source said the US took an active role in backing Korea's participation after reports of joint military cooperation between North Korea and Burma. It could be the first step for South Korea to have a more active role in Southeast Asia, the source said. More than 11,600 soldiers, mostly from the US with 6,217 troops, will gather in provinces such as Rayong, Phetchaburi and Lop Buri from Feb 1 to 11. Meanwhile, the US is also planning joint exercises with Cambodia, but Thai military officials are unconcerned even though Thailand has been at odds with its neighbour on overlapping boundaries. Government to implement internal security law in Songkhla on trial basis, MCOT, Jan 10 In an attempt to lure misled insurgents operating in three deep southern Thai provinces to surrender to the government, Prime Minister Abhisit Vejjajiva said Sunday his administration may introduce article 21 of the internal security law in nearby four districts of Songkhla province on a “trial basis”. Energy Ptt plans $13 Bln investment, Reuters, Jan 12 Thailand's PTT Exploration and Production PCL PTTE.BK (PTTEP) said on Monday it had earmarked 429 billion baht ($13 billion) for investment from 2010 to 2014 in gas exploration projects. The company told the stock exchange that this year it would spend 98.4 billion baht ($3 billion), mainly for projects in Australasia, Bongkot, Arthit, Myanmar M9 and M11, a joint development area of Malaysia and Thailand MTJDA-B17, and its S1 project, it said.
ADB sets aside B9.94 billion loan for green projects in Thailand, Bangkok Post, Jan 11 th The Asian Development Bank approved a $300-million (9.94-billion-baht) loan to Thailand to help finance investment in energy conservation and environmental preservation programmes. Chaiyuth Sudthitanakorn, the ADB executive director, said the funding would come under a climate investment fund set up to support green initiatives. The World Bank, the ADB and other development banks are responsible for managing $6.24 billion in funds pledged by donor countries such as the US, Japan, Germany and Australia as part of a global initiative to help developing countries finance initiatives to combat climate change. A Clean Technology Fund will support low-carbon energy programmes, as well as initiatives to improve energy efficiency, with funding provided through low-interest, long-term loans. A Strategic Climate Fund, meanwhile, will offer grants for programmes such as new forest plantations and renewable energy initiatives. Thailand last November submitted a proposal to draw $300 million from the Clean Technology Fund to support the country's goal of increasing the share of alternative energy to 20% by 2022 and cutting greenhouse gas emissions in Bangkok by 15% from current levels. Funds will be used to facilitate private-sector investment in renewable energy and energy efficiency programmes, support the development of the Bangkok Metropolitan Administration's Bus Rapid Transit system and ongoing alternative energy programmes led by the Electricity Generating Authority of Thailand and the Provincial Electricity Authority. Other countries in the region also receiving allocations include the Philippines and Vietnam with $250 million each. Finance TMB Sets Ambitious goals after revamp, Bangkok Post, Jan 11 th TMB Bank, after reorganising under the ING Group, a 30% shareholder, wants to more than double its market share in the next five years and is bullish about profit growth in 2010. Thailand's sixth-largest bank, with 538 billion baht in assets and 324 billion in loans, suffered heavy losses due to bad-debt provisions in 2006 and 2007, and since then its focus has been on reorganisation. "We are now ready to grow. Actually, that was already reflected in our performance in the fourth quarter of last year, when we started to show signs of improvement," said chief executive Boontuck Wungcharoen. TMB, also 26.1% owned by the Finance Ministry and 6.8% by Singapore's DBS, wants to take its market share to 14% by 2014, up from just 6% now. It also aims to drive up its return on equity to 14% from 4%. "With our skillful management and capable new team, together with a strong financial status supported by ING and the Finance Ministry, the target is not beyond our capability," said Mr Boontuck. Close rivals include fifth-ranked Bank of Ayudhya, 33% owned by GE Capital, and seventh-ranked Siam City Bank, which is in the process of seeking partners.
Mexico, Thailand may top investor projections, Bloomberg, January 8 th Mexican and Thai stocks may surpass investor projections in 2010 as Latin America’s second-biggest economy benefits from a recovery in the U.S. and growth in the Southeast Asian overshadows political turmoil, PineBridge Investments said. “Mexico could be a surprise this year because of its ties to the U.S.,” Deborah Medenica , the global head of emerging market equities at PineBridge, which has almost $90 billion under management, said yesterday in New York. “People are underestimating Thailand’s economy’s ability to sustain the political challenges.”
Thailand may consider issuing Yen, Dollar bonds, Korn Says, Business Week, January 8 th Thailand, which sold yen-denominated debt in 2008, may “do the same this year,” Korn said in an interview today, adding that issuing dollar-denominated bonds may also be “interesting.” The government may spend as much as 5 percent of the nation’s gross domestic product in 2010 to boost the economy, he said. “We can mostly fund this domestically,” said Korn, who was speaking to Bloomberg Television. “Nevertheless, we haven’t shut the door.” Selling bonds in the international market “would have a potential side benefit of showing the world that Thailand is back where it belongs in terms of its economic strength,” he said. The last time the Thai government issued bonds in dollars was in February 2006, according to Bloomberg data. It also sold 55 billion yen ($590 million) of so-called samurai bonds to Japanese investors in May 2008.
Food & Agriculture Thai 2010 rice exports may match record, Reuters, Jan 11 th "If the government manages its stocks well, I think we could export a record 10 million tonnes this year," Thai Rice Exporters Association President Chookiat Ophaswongse said, referring to the estimated 6 million tonnes of milled rice held by the government."Our conservative forecast is 9 million tonnes," he added in an interview with Reuters. Thai rice, a benchmark for the region, is seeing a resurgence in demand as economic recovery spreads across Asia. Prices jumped around 15 percent from $550 per tonne in January to $630 per tonne in December on strong demand, largely from the Philippines, where damage from typhoons hurt production.
Health & Life Sciences Thailand starts H1N1 vaccination program, MCOT, Jan 11 th Thailand’s Ministry of Public Health has begun its free vaccination programme to protect the public against Influenza A(H1N1) by administering about two million injections to people in five high-risk groups at state and private hospitals nationwide. The public health ministry is satisfied with the initiation of the vaccination campaign against Influenza Type A(H1N1) as there has been no report of allergies so far. Free vaccinations will be offered until March, while pregnant women can get shots until May. Permanent Secretary for Public Health Paichit Varachit said the H1N1 flu vaccine Panenza, manufactured by Sanofi Pasteur in France, is valued at Bt 600 million overall or 300 baht for an individual dose.
Information & Communications Technology TOT seeks news bids for B3 Billion projects, Bangkok Post, January 9th The board of TOT Plc yesterday scrapped the results of recent auctions for a 3-billion-baht broadband internet and fibre-optic network port project and will call new bids. A board source said directors of the state telecom enterprise queried the three winners' prices, only marginally lower than the median prices set by TOT, which set a budget of 3.04 billion baht. The winners' quotes totalled 3.03 billion. The source said TOT would call a new bid with different terms of reference. Prime Minister Abhisit Vejjajiva had questioned the prices of the earlier bid. Three consortiums won e-auctions to deploy Multi Service Access Node (MSAN) equipment for TOT's project to install 577,000 broadband internet and fibre-optic network ports nationwide.
Infrastructure Thailand approves draft law to settle industrial row, Reuters, Jan 12 Thailand's cabinet approved draft legislation on Tuesday to set up an independent body to oversee health and environmental impact assessments at the Map Ta Phut industrial estate, where a court has frozen certain operations. The draft, which must be approved by parliament, is a step towards allowing 64 suspended operations to go ahead at the world's eighth-biggest petrochemical hub in eastern Rayong province. In December the government approved regulations on health and environment assessments for new industrial projects and it now expects a 13-member panel to be formed within 60 days to carry out the inspections [ID:nSGE5BS01E]. "After the draft has been approved, it would be clearer how to solve this and push the process forward," Prime Minister Abhisit Vejjajiva told reporters. Regulation under section 67 approved, Bangkok Post, Jan 12 http://www.bangkokpost.com/business/economics/165096/regulation-under-section-67-approved The cabinet has approved a draft Prime Minister's Office regulation on the appointment of an independent health and environment advisory council as required by the constitution, Prime Minister Abhisit Vejjajiva said on Tuesday. Mr Abhisit said the regulation is an important mechanism to enable industrial operators to take steps to meet requirements stipulated in Section 67 of the constitution. With the regulation in place, he believed investors would have confidence in the government's efforts to solve problems at the Map Ta Phut Industrial Estate. The regulation will see the long-delayed council set up in 60 days and begin assessing Map Ta Phut projects suspended by the Supreme Administrative Court, he said.
Map Ta Phut: Victory Comes at a Cost, Bangkok Post, January 8 th Industrial expansion in the Map Ta Phut area is facing legal barriers after the Supreme Administrative Court in December ruled that only 11 out of 76 industrial projects could proceed with their investment and construction programmes. One other project involving Siam Cement Group was subsequently cleared, leaving 64 in limbo after the court insisted they needed to take further steps to comply with health and environmental standards. Currently, only a small number of those 64 projects are being reviewed to see if they could continue with their projects as they had conducted their environmental impact assessments (EIA) before the 2007 Constitution was enacted. This legal impasse has stalled investments totalling 229 billion baht, equivalent to about 2.5% of gross domestic product and 3% of the loan portfolios of commercial banks. How will this environmental struggle affect the economy? Direct investment is only one side of the story when it comes to assessing the economic impact of Map Ta Phut. The secondary sector contributed about 43% of GDP in 2009. Manufacturing accounted for roughly 34% of the secondary sector last year. Politics PM: Cabinet Reshuffle decided this week, Bangkok Post, Jan 12 There will be only four changes in the new cabinet line-up and the reshuffle should be completed by the end of this week, Prime Minister and Democrat Party leader Abhisit Vejjajiva said on Tuesday. Mr Abhisit said Interior Minister and Bhumjaithai Party leader Chavarat Charnvirakul told him at the cabinet meeting that he will need about two more days to find the right person to succeed Manit Nopamornbodee as the new deputy public health minister.
Thailand’s diplomacy: Searching for new dynamics, The Nation, Jan 12 No wonder, the government's nine-point comprehensive foreign policy announced on December 30, 2008 was unable to implement in totality. Thai diplomatic objectives, while seeking to promote universal norms and standards, are just not compatible with Asean thinking as they are considered too progressive. Looking back, the government succeeded only partially in pushing forward at least five diplomatic agenda: developing ties with neighboring countries; trying to make Asean a people-centred organisation;strengthening cooperation and strategic partnership with major powers; promoting the country's interaction with the global community in setting international standards on important transnational issues including human rights; promoting public awareness and understanding of global changes that affect Thailand so as to forge consensus in the formulation and conduct of foreign policy. The remaining four objectives - promoting close cooperation with Muslim countries; supporting entry to international agreements including ratifications; building the country's confidence and people-to-people understanding in the international community; protecting and promoting Thai interests overseas - will be the main focus of this year's diplomatic efforts. It was unfortunate that the Thai-Cambodian dispute received all the media attention and coverage, giving the impression of the government's obsession with Cambodia and its leadership links with fugitive Thaksin Shinawatra. Truth be told, Thailand's present relations with other neighbours including Laos, Vietnam, Malaysia and Indonesia are very good, marked by closer cooperation and concrete progress.
UDD Protestors rally outside Royal Advisor’s home, Reuters, Jan 12 At least 5,000 protesters from the United Front for Democracy Against Dictatorship (UDD) gathered to denounce Surayud Chulanont for his alleged illegal occupation of forest land in the mountains of northeastern Thailand. Surayud sits on the Privy Council and the UDD says members of this body orchestrated the military coup that ousted Thaksin in September 2006. Former army chief Surayud became premier one month later and served until elections in December 2007. The protest by the "red shirts" is seen as the prelude to an offensive later this month by pro-Thaksin elements inside and outside parliament to bring down the embattled coalition government of Prime Minister Abhisit Vejjajiva. Concern about the planned protests has unsettled the stock market in Southeast Asia's second-biggest economy. Previous clashes led to downgrades in Thailand's credit ratings. Prosecutors agreed last week Surayud was not the rightful owner of the plot of land, which he will have to return to the state. Tanapit Moonprauk, a spokesman for the Attorney-General's office, said prosecutors would not press charges against Surayud because he had not intended to break the law. However, the UDD, which draws its support largely from the rural poor who helped Thaksin twice win election landslides, accuse Surayud and Thailand's powerful elite of hypocrisy.
END MEMO
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