News from Thailand – November 7, 2013

Bangkok Post feared it in her editorial on Tuesday: Opponents of the construction of two dams in the (still damless) Yom River will not have a chance to make their voices heard at a hearing.

And that was exactly what happened yesterday at Mae Jo University in Phrae. Five hundred opponents, including residents of tambon Sa-Ieab, who have long opposed the plans, encountered a wall of supporters and two hundred officers. They didn't get in.

According to the plans, three new reservoirs will be constructed in Phrae. Two of them are controversial: the Yom Bon in Sa-ieab and the Mae Yom in Tao Poon. There are no objections to the third, Mae Lang in tambon Wieng Ta. According to the opponents, the construction is at the expense of a unique forest area with teak trees. Alternatively, they propose the construction of 395 small reservoirs, the improvement of tributaries of the Mae Yom and the introduction of crops that require less water.

Somming Muangrong, chairman of the Sa-ieab committee that opposes the construction of the dams, is at his wits' end. “I don't know what else we can do to stop the dams. But if the government perseveres, I'm going to demolish them personally.' He will then have to do that, because the government is persevering, Minister Plodprasop Suraswadi said yesterday. The minister was pleased, because 85 percent of the participants in the hearing supported the government's plan.

– Thousands of doctors, medical students, nurses and staff of the Siriraj hospital in Bangkok yesterday expressed a strong protest against the controversial amnesty proposal. They gather in front of the statue of Prince Mahidol or Songkhla, the king's father, and sign a petition along with seven thousand others.

Senator Jet Siratanarong, who studied at Siriraj School of Medicine, accepted the petition. He belongs to the group of senators known as the Group of 40. This group is, euphemistically, not a fan of the current administration. She opposes the bill, which will be considered by the Senate on Monday.

Other amnesty news:

• The oracle of Dubai, or former Prime Minister Thaksin, is once again making itself heard. He previously supported the proposal amended by a parliamentary committee, which now also grants amnesty to the army, protest leaders and authorities, who are held responsible for the victims in 2010. Thaksin accuses the opponents of distorting the proposal, so that it seems that he too will receive an amnesty and reclaim his confiscated money. He calls the allegations against him and his family baseless.
• Opposition party Democrats has given ruling party Pheu Thai an ultimatum. She wants the amnesty proposal to be withdrawn by 18 p.m. Monday at the latest. "Otherwise we will do what we have to do," said Democrat MP Suthep Thaugsuban, who is leading the rally on Ratchadamnoen Avenue. Bangkok Postreporters estimated there were 20.000 protesters yesterday, twice as many as the day before.
• If the Senate rejects the proposal, it will not be resubmitted by Pheu Thai, says Pheu Thai spokesman Prompong Nopparit. Prime Minister Yingluck says the same thing on her Facebook page. "There are several ways to help the people without passing an amnesty law," said Yingluck. According to Yingluck, the cabinet does not intend to arrange amnesty through a cabinet decision. She promises not to use violence against the demonstrators.
• Pheu Thai secretary-general Phumtham Vejjaychai says the party has asked MPs who have submitted an amnesty proposal to withdraw their proposal. In addition to the controversial proposal, six other proposals have been submitted. They aim at the same thing, but differ in details.
• In Kanchanaburi, 100 red shirts gathered yesterday at the city ​​pillar shrine, after which they went to the governor's house. They denounced the Democrats for the protests in Bangkok.
• Red shirts in Udon Thani had wanted to come to Bangkok, but the party advised them against it to avoid a confrontation.
• Paradorn Pattanatabut, secretary general of the National Security Council, says some protest groups are shifting their focus from the amnesty proposal to political reform to detain the protesters. According to him, the sting of the protests is now that the president of the Senate has declared that the Senate will reject the proposal next week. The demonstrators who remain, he says, are 'extremists'.
• The demonstrators in Uruphong (Bangkok) do not intend to leave. They continue their protest against the government. On Tuesday, the adviser to the organizers told them that the amnesty proposal will come back. "The government is not going to give up for good."
• The Center for the Administration of Peace and Order, which is responsible for the Internal Security Act that applies to three districts in Bangkok, is afraid that the Uruphong protesters are moving towards the Government House. In addition to Uruphong, demonstrations are also held at the Democracy Monument and the Phan Fah bridge.
• For the second day yesterday around noon on Silom Road at Sala Daeng BTS station, a deafening whistle sounded. Most whistlers are office workers, business people and residents. They go on their whistles every Monday and Wednesday.
• The police have deployed 49 companies with 7.595 officers. Of these, 39 companies are stationed around Government House and the Parliament building and five at the Prime Minister's residence. Fifteen places can stop protesters if they take it into their heads to occupy government buildings and there are nineteen checkpoints that are manned day and night. Checkpoints have also been set up along the routes to Bangkok.
• The Justice Minister and the head of the Department of Special Investigation say the protesters do not fully understand the proposal. According to them, the proposal is not intended to launder corruption cases.
• Eight foreign countries have issued a travel warning for Thailand: Canada, Brazil, Israel, Japan, UK, France, Austria and Sweden. The economic zone of Taiwan has also issued a travel advisory. Minister Surapong Tovichakchaikul (Foreign Affairs) asks the demonstrators to consider the consequences for the country's image, economy and tourism. 'This is a matter for parliament; the proposal now goes to the Senate, which listens to the opinions of all parties.'
• The Lawyers Council of Thailand (LCT) is translating the amnesty proposal into English to make it clear to the international community that the proposal condones corruption. President Det-udom Krairit says the proposal aims to help certain individuals; it tramples on the rules of law. According to the LCT, with the law in hand (if the proposal passes), Thaksin can reclaim the 46 billion baht seized from him.
• Lecturers of the law faculty of Thammasat University strongly oppose the amnesty proposal. Kittisak Prokati: 'Pheu Thai has abused its majority in the House of Representatives to serve party interests. It has undermined the people's confidence in democracy, the government and the parliamentary system.'
• Minister Niwatthamrong Bunsongphaisan (Trade) warns his officials that they are not allowed to demonstrate against the amnesty proposal during working hours or on the premises of the ministry. It is allowed in their free time, provided they do not wear uniforms.
• The ruling party Pheu Thai asks the Ombudsman to conduct an ethical investigation into Suthep Thaugsuban and others, who are organizing the protest against the amnesty proposal. Phew, the parliamentarians were absent from a meeting of parliament on Monday. In addition, they moved the rally venue to Ratchadamnoen Avenue, which is subject to the Internal Security Act (ISA). The party is also submitting a request to the Electoral Council to dissolve opposition party Democrats, because party leader Abhisit addressed the demonstrators on Tuesday. That would be against the ISA and the Political Party Act.

– Two southern resistance groups join the peace talks between Thailand and resistance group BRN. Those two are the Patani Liberation Organization (Pulo) and the Barisan Islam Pembangunan Pattani (Bipp). Deputy Prime Minister Pracha Promnok announced this yesterday after speaking with a Malaysian observer who follows the talks.

There has been no meeting since the beginning of Ramadan. Talks will resume early next month. The Thai delegation leader Paradorn Pattanatabut, Secretary General of the National Security Council, thinks it is possible that Runda Kumpulan Kecil will also join.

– Prime Minister Yingluck's idea: a pollution levy for factories on the Map Ta Phut industrial estate in Rayong. She launched it yesterday after being briefed on the issues, including pollutant emissions.

A panel made up of representatives from the Industrial Estate Authority of Thailand, businesses and households would manage the tax money. The money can be used to purify wastewater. The Minister of Finance and the National Economic and Social Development Board are allowed to study Yingluck's plan. Yingluck ended a three-day visit to Chon Buri, Rayong and Chanthaburi yesterday.

– Residents of Ta Mieng (Surin) are building new underground bunkers around their village. The village is 11 kilometers from the Ta Muen Thom temple along the border with Cambodia, which was shot at during the border clashes two years ago. The villagers are preparing for the worst awaiting the International Court of Justice's ruling on Monday in the Preah Vihear case. They fear that it will come to fights.

– The United Front for Democracy against Dictatorship (UDD, red shirts) will set up its own TV channel. It says goodbye to AsiaUpdate, which has removed the talk shows of four red shirt leaders because they abstained from voting on the (amended) amnesty proposal last week. Worachai Hema, who submitted the original proposal, says canceling the shows is tantamount to turning friends into enemies. "That's unacceptable to the red shirts."

– It is cold in Phayao, so the government is again called upon to provide blankets and warm clothing to residents in need. The county office of the Disaster Prevention and Mitigation Department estimates that 80.665 residents of nine districts are shivering from the cold.

Economic news

– Corruption and Thailand's competitive position in the Asean Economic Community are of greater concern to foreign investors than the current political situation, says the Joint Foreign Chambers of Commerce in Thailand (JFCCT). That is why the JFCCT supports the Anti-Corruption Organization of Thailand.

Newly appointed chairman Stanley Kang last month says an anti-corruption platform could create more transparency, reduce costs and improve government efficiency. Corruption increases the cost of doing business in the country and extensive customs procedures complicate regional and international trade.

The political situation raises some security concerns, but Kang doesn't think the protesters and government want to harm or inconvenience each other, given past experience. He mentions the good infrastructure and the various borders with neighboring countries as positive points of Thailand. Even during an economic crisis, Thailand is able to recover quickly because of its developed infrastructure, Kang said.

– The German-Thai Chamber of Commerce finds the political situation in Thailand normal for a democratic system. "Thailand can be proud of its democracy, where you can even demonstrate in front of parliament," says President Karl-Heinz Heckhausen. But corruption is unacceptable. Large German companies are strict about this. They reject even the slightest compromise.'

– Small and medium-sized enterprises (SMEs) will be the first to benefit from the increase in the maximum amount of deductions for individual taxpayers. The amount is expected to double to 120.000 baht next year. Receipts and invoices must be submitted with the declaration. The Tax and Customs Administration believes that the scheme encourages SMEs to declare their turnover correctly and to pay the correct amount of taxes, because customers will ask for a receipt.

Taxpayers may deduct expenses up to 40 percent of their taxable income up to a maximum of 60.000 baht. Based on 10 million taxpayers, the additional deduction amounts to a total of 600 billion baht.

– 23 employees of the tax authorities and private companies are suspected of involvement in VAT fraud, which has cost the government 4,3 billion baht. An investigative committee has discovered that eighteen civil servants have committed fraud, as well as forty of the 65 companies investigated.

The Department of Special Investigation has filed a complaint against the XNUMX with the National Anti-Corruption Commission. Five suspects from the private sector will face criminal charges.

The Anti-Money Laundering Office has been unable to retrieve the loot. The tax authorities themselves have filed a complaint against fourteen employees. They have XNUMX days to defend themselves. The fraud concerned fake companies that supposedly received paid VAT back with fake invoices.

– The mortgage system for rice has yielded a loss of 390 billion baht over the past four harvests, said a source at the Ministry of Finance. This amount is close to that calculated by former Deputy Prime Minister and Finance Minister Pridiyathorn Devakula. He came to an amount of 425 billion baht and possibly even 466 billion baht. The current finance minister said earlier that Pridiyathorn could not count and did not understand the rice accounting system.

The cabinet yesterday approved a draft agreement for the sale of 1 million tons of rice per year to China over the next five years. The rice is sold at market prices. The cabinet also approved a joint statement in which China pledges to help build a high-speed railway between Bangkok and Nong Khai in exchange for Thai agricultural products.

– Thailand must limit rising household debt and government debt if the country is to continue to grow economically, warns Paul Gambles, partner of the MBMG group. Otherwise, he foresees a repeat of 1997 with government debt approaching 60 percent and household debt at 80 percent.

"It's terrifying when those two happen at the same time," he says. For the government, the high national debt means that it has less room for maneuver and for consumers that they spend less.

At the end of August, the national debt was 5,3 trillion baht or 44,63 percent of gross domestic product. Household debt amounted to 8,97 trillion baht or 77,5 percent of GDP in the first quarter of this year.

– The stricter rules on mortgages applied by banks will continue to affect the housing market next year, while the household debt crisis will return to normal. Consequences of the political crisis will be short-lived, says Wongsakorn Prasitvipat, deputy chief business development of Property Perfect Plc (PF).

As a result of the stricter rules, 15 percent of mortgage applications are now rejected, compared to 7 to 10 percent last year. Since the third quarter, the housing market has slowed down due to higher household debt, the first car program and the inability to obtain a mortgage. Houses between 1 and 3 million baht are the hardest hit segment.

Wongsakorn believes it is too early to determine whether the political issues are having a negative effect on the market. Nevertheless, PF is canceling the promotion campaigns planned for next month for low-rise projects. The advertising budget will also be cut for November and December, which is normally the high season for the housing market.

PF is currently holding the Perfect Condo Showcase 2013 at Central World. Ten condo projects are on offer: four new and six existing in Greater Bangkok and Hua Hin.

www.dickvanderlugt.nl – Source: Bangkok Post

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