Thailand invokes Internal Security Act ahead of planned protests, March 9 2010
IN THIS UPDATE:
  • Customs
  • Defense & Security
  • Finance
  • Food & Agriculture
  • Information & Communications Tech
  • Infrastructure
  • Politics
  • Other

Looking Ahead...

  • March 24-26th Council Business Mission to Bangkok. Opportunity to join closing soon!

  • April 12th event in D.C. with Prime Minister Abhisit on sidelines of Global Nuclear Security Summit

  • For more information on these events, contact Anthony Nelson at anelson@usasean.org

 

Customs

AFTA helps car exports, Bangkok Post, March 5

The Asean Free Trade Agreement (AFTA) has boosted Thai car exports to the Asean market from 50 per cent of production to 52 per cent in the first two months of this year, the Federation of Thai Industries (FTI) reported on Friday.

"The AFTA has been in effect since Jan 2010 and it is likely that car exports will continue expanding in the long run," FTI's Automotive Industry Club spokesman said Surapong Phaisitpattanapong said.

Thailand's major trade partners are Indonesia, Malaysia, Vietnam, Philippines, Brunei, and Singapore, while car exports to Australia and New Zealand have risen 27 per cent.

Defense & Security

Stolen arms cache fuels fears, Bangkok Post, March 8

The government is investigating whether the theft of war weapons and ammunition from an arms depot in the South is politically motivated amid reports the weapons are already on their way to Bangkok.

Army spokesman Sansern Kaewkamnerd yesterday confirmed the theft but would not comment on the number of stolen weapons.

The war weapons and ammunition were stolen last Tuesday from an arms depot belonging to the 401st Engineers Battalion at Fort Aphai Borirak attached to the 4th Army in Phatthalung's Muang district.

A highly-placed security source said the weapons and ammunition stolen included about 2,000 rounds for M16 and HK rifles, about 1,000 rounds for an 11mm pistol, and about 20 anti-personnel M26 and M67 grenades.

Col Sansern said the army had lodged a complaint with police and was coordinating with a forensic unit to investigate all fingerprints found in the area.

 

Kurt Campbell Regional Overview of East Asia and the Pacific: State, March 3

For the last half century, the United States and its allies in the region – Japan, the Republic of Korea, Australia, the Philippines, and Thailand – have maintained security and stability in East Asia and the Pacific. Our alliances remain the bedrock of our engagement in the region, and the Obama Administration is committed to strengthening and modernizing our alliances to address both continuing and emerging challenges. And, we must recognize that those alliances are, at their core, security alliances. Major multilateral exercises, such as the recent Cobra Gold exercise co-hosted with Thailand, are tangible examples of the enduring value of our alliances by continuing to provide opportunities to improve force readiness and advance political and military objectives with our partners in Asia.  

Our security relationships are particularly important in East Asia where traditional balance-of-power calculations still animate inter-state relations. The United States must maintain a forward-deployed military presence in the region that both reassures friends and reminds others that the United States will remain the ultimate guarantor of regional peace and stability. There should be no mistake: the United States is firm in its resolve to uphold its treaty commitments regarding the defense of its allies.

 

Finance

Korn reassures U.S. investors about situation, The Nation, March 9

Finance Minister   Korn Chatikavanij   last night reassured American businessmen the government was ready to manage the security situation in the greater Bangkok area during the planned anti-government rally from Friday until Sunday.

Speaking on behalf of Prime Minister Abhisit Vejjajiva, Korn urged US business leaders in Bangkok and in the US via a teleconference to have confidence in the government's ability to handle the situation. The government will use the rule of law to solve the protracted political issue and deal with anti-government protests.

Korn was speaking at an event held by the American Chamber of Commerce in Thailand (Amcham).

Abhisit had been due to speak at the event, but his aides cancelled the premier's participation at the last minute.

Korn also told foreign business leaders the Thai economy is recovering.

Gross domestic product projected to grow 4-4.5 per cent this year.

In addition, the government will spend more than Bt1 trillion over the next three years to increase the country's long-term economic competitiveness.

CEOs and senior executives of major US firms, including Coca-Cola, Chevron, Ford, Fedex, Citibank and United Airlines, were among the participants at last night's teleconference.

Citing the red shirts' planned March 12-14 anti-government protests, Amcham president Joe Geagea said political instability had become one of the biggest concerns for foreign investors here.

 

Health & Life Sciences

Thailand seeks WTO solution on Generic Drugs, AFP, March 8

A senior Thai official voiced hope Monday for a WTO solution on the production of low-cost generic drugs, an issue that has stirred friction with Western companies.

A military-backed government in 2006 suspended patent protections for expensive cutting-edge treatments for AIDS, cancer and heart disease, giving Thais access to cheap copycat versions.

Activists against AIDS and poverty hailed Thailand as a global leader, but the kingdom has faced heavy pressure and threats of legal action from Western pharmaceutical firms.

Trade Representative Kiat Sittheeamorn told the American Chamber of Commerce in Thailand that the government was in talks with all sides and hoped for an eventual solution under the World Trade Organization.

"What we would like to see is US engagement with the WTO in order to come up with a multilateral regime that is good for all," Kiat said in remarks videocast in Washington.

"It is a very sensitive issue, but we also recognize that we don't want to violate any patent rights," he said.

"I think the final goal for all is to be able to have affordable drugs for all the Thai people while recognizing the ownership rights" of patent holders, he said.

Campaigners voiced outrage last year when they said they obtained a letter showing Prime Minister Abhisit Vejjajiva's government would not license more generic drugs as the issue was holding up free trade talks with the United States.

Information & Communications Technology

Qualcomm keys on 3G, Bangkok Post, March 5

Qualcomm Inc, a wireless communications products maker, will increase its focus on chipsets for mobile handsets in the Thai market to cash in on surging demand for smartphones.

The US-based firm expects sales of its wireless chipsets in Thailand to increase by 30-40% this year in line with the local growth in 3G handset sales, said Kaneungjit Suriyathumrongkul, country manager of Qualcomm Thailand.

Smartphone handset sales in Thailand were fuelled by strong demand last year for high-speed multimedia services.

"Even though 3G has yet to become available in Thailand, the market behaviour has already shifted towards the higher features phones with high-speed internet access," said Ms Kaneungjit.

She said the company will focus more on making wireless chipsets for mobile phones by co-operating with local mobile operators, 3G equipment suppliers and local house-brand 3G handset makers to increase sales.

"With the country's penetration rate of mobile phone already passed 100%, the market is moving into wireless data communications," Ms Kaneungjit said.

Qualcomm makes chipsets for cellular products, wireless modules for notebook computers under the Gobi brand, and computing systems for smartphones and netbooks under the Snapdragon brand.

Chipsets sales made accounted for 60% of Qualcomm's global revenues last year, with technology licensing fees contributing 35% and the remaining coming from services and applications.

 

Infrastructure

Thailand tightens environmental regulations, Wall Street Journal, March 4

hailand's biggest foreign investors have learned to live with a lot in recent years, including mass protests, airport closures and persistent rumblings about military coups. But now there is another issue that has companies such as   Ford Motor   Co. and a host of petrochemical firms wondering if they should be putting their money somewhere else: the government's struggle to deal with tough new environmental regulation.

In September, a Thai court sided with the country's growing green movement and suspended $12 billion in investments on Thailand's industrial eastern seaboard—the world's eighth-largest petrochemical hub—until their environmental impact can be properly assessed. The move caught the government by surprise, and leaders worry the injunction could shave half a percentage point off Thailand's expected 4%-5% growth rate this year.

The move also provided new evidence that environmental activists are gaining ground in parts of developing Asia after years of largely ineffective lobbying—a development that could further ramp up regulatory hurdles for large investors. Activists have likewise stepped up their lobbying in Indonesia, Vietnam and China over the past several years, at times pressuring their governments to slow or cancel environmentally sensitive projects.

Bangkok hopes to set up a new environmental-monitoring agency within five months to quickly assess and approve new projects and keep investment flowing into the country. But a growing number of companies, including many that aren't involved in the oil and chemical industries and have solid green credentials, now are becoming increasingly concerned about the changes and the uncertain regulatory environment they have created, and they want the investment crisis solved as soon as possible.

Ford is among them. It already exports vehicles to more than 50 countries from its Thai manufacturing plants. Last month, the company told The Wall Street Journal in a statement that it wasn't ready to commit to plans for a new passenger-car plant it is considering building, shocking Thai authorities who have counted on big investments from foreign auto makers to boost growth. Ford said there are "ongoing assessments" of its plans for the new car plant, and stressed that "a number of related factors must still come together before any decisions could be considered."

Politics

PM gives assurance of law and order, Bangkok Post, March 9

Prime Minister Abhisit Vejjajiva assured tourism operators that there would be no violence during the red-shirts rally this weekend, during a meeting at Government House today, acting government spokesman Panithan Wattanayakorn said on Tuesday afternoon.

“The state authorities responsible for maintaining law and order in Bangkok and vicinity will not carry any weapons. They will not use force against the protesters,” Mr Abhisit was quoted as saying.

Mr Abhisit was confident that the government is capable of keeping the situation under control.

Members of the Association of Thai Travel Agents and the Domestic Tour Business Association met the prime minister this afternoon for a briefing on the political situation and the use of the Internal Security Act in Bangkok and nearby provinces during the red-shirt rallies.

Mr Panithan said the business operators also plan to meet leader of the opposition Puea Thai Party to explain their woprries about the anti-government demonstrations in Bangkok this weekend.

Thailand to impose Internal Security Act for rally, Reuters, March 8

The Thai government plans to invoke a tough security law giving the armed forces broad powers to control a rally in Bangkok by supporters of former Prime Minister Thaksin Shinawatra, a minister said on Monday.

The Internal Security Act (ISA) allows the country's top security agency, the Internal Security Operations Command, to impose curfews, operate checkpoints and restrict the movement of demonstrators if protests by the United Front for Democracy against Dictatorship (UDD) turn violent.

"Based on information we have received, there are many groups of protesters and some may attempt to use violent means," Deputy Prime Minister Suthep Thaugsuban said after a meeting with top security officials, adding that violent acts may include bombings and the seizure of government offices.

The ISA, to be formally invoked after a cabinet meeting on Tuesday, would be imposed from March 11 to March 23 in Bangkok and surrounding areas, where anti-government protesters plan to rally to press for new elections.

Following the decision to use the ISA, Prime Minister Abhisit Vejjajiva cancelled a visit to Australia planned for March 13-17, a spokesman said, without elaborating.

Thaksin's red-shirted supporters plan to kick off their rallies in parts of Bangkok and the provinces on March 12. They plan to merge in the historic part of the city on March 14 in an operation that they said would "peacefully halt Bangkok".

The UDD has said it would rally peacefully for at least seven days in what has been dubbed "a million-man march", although analysts doubt the group can mobilise that number.

Thai Premiere cancels Australian trip as mass protests loom, Monsters and Critics, March 8

Thai Prime Minister Abhisit Vejjajiva on Monday cancelled a planned trip to Australia and   New   Zealand   this week amid mounting concerns about a mass anti-government protest planned in Bangkok.

Abhisit had initially planned to visit Australia and   New   Zealand   on March 13-17, despite a purported 'million-man' protest to be staged in the Thai capital on March 14.

The United Front for Democracy against Dictatorship (UDD) has threatened to mobilize between 500,000 and 1 million people to descend on   Bangkok   between March 12 and 14, hoping to force the government to resign and call for a new election.

The mass demonstration has raised fears of fresh violence in the streets of Bangkok, or at the very least a horrendous traffic jam.

Deputy Prime Minster Suthep Thaugsuban, who handles security, said the cabinet will on Tuesday be asked to announce the enforcement of the Internal Security Act in Bangkok from March 11 to 23, to allow the government to ban protestors from sensitive areas and put joint army/police companies on full alert to suppress any violence.


Thailand braces for new round of anti-government protests, Voice of America, March 4

The Thai Government is bracing for a new round of anti-government protests later this month with the aim to force the administration to resign and call fresh elections. Rally organizers hope to mass over 500,000 people on the streets of Bangkok amid fears of violence if the protests are protracted.

The Thai government is facing fresh protests from anti-government protesters aligned with ex Prime Minister Thaksin Shinawatra later this month with renewed calls for the 14 month administration to resign and call fresh elections.

The rallies are to be led by the pro-Thaksin United Front for Democracy against Dictatorship or UDD, known for their wearing of red shirts.

The protests mark a return to massive demonstrations from a year ago when UDD supporters blocked streets in Bangkok and later forced cancellation of a regional summit of Asian leaders at a seaside resort after they made their way in to a conference venue.

UDD spokesman Sean Boonpracong says there are three key aims of the protesters who want the government to resign and want the reinstatement of a constitution from 1997. "The simplest goal is to dissolve the parliament. Second to bring back the people's written constitution of 1997 and third of course is the Privy Council to stay away from politics," he said.

Other

Thailand offers tourists free insurance, AP, March 4

Thailand is continuing to offer insurance coverage worth $10,000 to anyone harmed in riots and demonstrations as it seeks to attract tourists scared off by political turmoil, officials say.

Other carrots range from a waiver on all visa fees to discounts on airline landing fees.

"The measures are to support the tourism industry. The situation has been recovering but the businesses still need help," said Thai government spokesman Panitan Wattanayagorn earlier this week.

Thailand has been plagued by political conflict since the ouster of Prime Minister Thaksin Shinawatra in a 2006 military coup. More demonstrations are scheduled by his supporters for mid-March.

In 2009, the number of tourists dropped to 14.1 million, an 8 percent decrease from the previous year while revenue shrank to 527 billion baht ($16 billion), a 3 percent drop from 2008. Tourism is the country's number one foreign currency earner.

 

850,000 Migrants register in Thailand, AFP, March 4

Around 850,000 migrant workers in Thailand have met a deadline to start a registration process, the labour ministry said Thursday, as rights groups made renewed calls for a halt to the policy.

Thailand had ordered 1.3 million eligible citizens from neighbouring Myanmar, Cambodia and Laos to begin the process of registering and verifying their nationality by Sunday or risk deportation.

To enter the process migrants must pay registration and medical fees of 3,800 baht (116 dollars) -- a large sum for people who mostly have low-paid jobs in the manufacturing, agricultural and domestic sectors.

The full registration process takes two years to complete and will eventually entitle the migrants to claim temporary work permits.

"Some 850,000 migrant workers met the deadline" said Supat Gukun, a labour ministry official.

The 1.3 million are eligible because they registered for different one-year work permits last year.

Thai authorities estimate there are up to another 1.2 million unregistered migrants in the country who will not be eligible for the new process.

 

Thai deportations will take time, Wall Street Journal, March 3

A Thai government official said authorities intend to stick to a Tuesday deadline for new immigration rules that could result in the deportation of hundreds of thousands of migrant workers who don't comply.

But it could take some time before any deportations begin, said Karun Kitpun, head of the national verification division of Thailand's Ministry of Labor. The government has to compile data on the number of migrant workers who failed to comply, then determine how best to handle them, he said.

"The government will decide later how to enforce the rule of law on these people," he said.

Human-rights groups have blasted the program, which requires some 1.5 million migrants—mainly from Myanmar, Cambodia and Laos—to register with Thai authorities and prove their nationalities, or be deported. Although Thailand has long required migrant workers to register with the government, the newer program calls on migrants to undergo a more time-consuming process that involves verifying their identities with their home governments.

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