News from Thailand – March 1, 2013

Prime Minister Yingluck and Prime Minister Najib Razak

For the first time since violence flared up in the South in 2004, Thailand has signed an agreement with a southern resistance group. Yesterday, Paradorn Pattanatabutr and Hassan Taib, head of BRN liaison office Malaysia, signed a peace deal in Kuala Lumpur.

Within two weeks, Thailand and the Barisan Revolusi Nasional (BRN) will sit around the table. Malaysia assists in the choice of call participants.

Critics wonder whether the BRN holds the key to solving the ongoing violence in the southern provinces. Moreover: previous governments have never wanted to recognize rebel groups. Now that a group is talking, the government's authority could be compromised.

Panitan Wattanayagorn, Secretary General for Political Affairs in the previous Abhisit government, warns that the hasty deal is dangerous. "A formal agreement should be carefully considered so as not to undermine the bargaining position and dignity of the Thai state."

Paradorn, secretary general of the National Security Council (NSC), says the agreement is only the first step and there is still a long way to go to peace. "It is an agreement to hold talks with people who have different views and ideologies from the Thai state, with Malaysia as a mediator."

According to Paradorn, BRN is a key player in the southern unrest. Will Violence Continue in the Deep South? I think so. But I also believe that the situation will improve if these negotiations succeed. I don't know how fast that will be. I can only try to do my best.'

According to Paradorn and the Malaysian Prime Minister, the breakthrough is due to former Prime Minister Thaksin. There would have been no agreement without his mediation. And that should sour the grapes for the Democrats, who never succeeded, while electorally ruling the South.

– Thailand and Malaysia signed four agreements yesterday to strengthen economic and youth sports cooperation. The Memoranda of Understanding were signed by Prime Minister Yingluck and her Malaysian counterpart Najib Razak during their fifth meeting in Kuala Lumpur.

The MoUs cover private investment in border areas, facilitating border traffic, the formation of a Thai-Malay Business Council Secretariat and youth sports cooperation. The development of a special economic zone to connect Sadao and Bukit Kayu Hitam and the construction of two bridges were also discussed.

– The execution of drug lord Naw Kham and three of his accomplices is being carried out today in Kunming, capital of China's Yunnan province. Kham and his accomplices have been convicted of the October 2011 murder of thirteen Chinese passengers on the Mekong River. During the legal process, he accused Thai soldiers of being responsible for this. He later retracted that statement and pleaded guilty. Two other members of his gang have received eight years in prison and a suspended death sentence.

– Students of Thammasat and Kasetsart University oppose more autonomy for both universities. They are afraid that this will increase tuition fees. Twenty students yesterday presented Minister Pongthep Thepkanchana (Education) with a petition with their demands.

The greater autonomy is enshrined in a bill that has already been approved by the cabinet and is now before the House of Representatives for consideration. The House will consider it next week.

Prachaya Nongnuch, president of the student council of Thammasat, calls the proposal unjust because teachers and students have not had a say. Although the university has convened a forum, none of the proposals made there have been included in the bill. The minister has pledged to raise the matter with the government chief whip to discuss.

– Do not waste the lives of patients: this inscription on one of the signs that a demonstrator held up leaves nothing to be desired in terms of clarity. He and some 1.500 others protested at Government House yesterday against Thailand's looming free trade agreement (FTA) with the EU.

One of the consequences would be an increase in the price of some medicines. Furthermore, according to the demonstrators, the trade in tobacco and alcohol is facilitated, which is harmful to public health. Arbitration is also a tricky issue.

On Wednesday and Thursday, a Thai delegation led by Prime Minister Yingluck will discuss the FTA in Belgium.

– Foreign workers are obliged to buy a health package for their children. The Ministry of Health wants to prevent health problems and the spread of infectious diseases.

The package applies to children up to 6 years old and costs 365 baht per year. The foreign child receives the same care as a Thai child, including vaccinations. Both children of legal and illegal migrants are eligible. The package will be available for hospital visits from May. Thailand has an estimated 400.000 migrant children.

– Floods and water shortage: they both occur simultaneously in Thailand. In Pattani, 400 houses have been affected by flooding. The Pattani River has overflowed its banks. Numerous rice and sugar cane fields have been flooded.

Four schools had already been closed in Narathiwat; three others closed yesterday. In some places the water is starting to recede and some roads are passable again. With the exception of Bacho district, the entire province has been declared a disaster area.

In Phatthalung, 10.000 rai rice fields and 400 rai chili plantations have been destroyed by water from the Bantad mountain range.

And now the drought. The Royal Irrigation Department has called on farmers in the Chao Praya catchment to refrain from planting off-season rice. The water level in the water reservoirs has dropped to 28 percent. Already 72 percent of the water supply for the dry season has been used and there are still two months to go.

In Prachin Buri, salt water has entered because the fresh water level has dropped sharply. Boerenland in four districts suffered damage as a result.

– Yesterday the newspaper quoted another top Commerce Department official as saying that the Department is not considering lowering the mortgage price of rice, but today the Permanent Secretary of the Department admits that the Department will propose to the National Rice Policy Committee the price of 15.000 to 14.000 or 13.000 baht per ton. The committee will meet in mid-March.

The peasants are ready to revolt. Consultations will take place on Monday between members of the Thai Agriculturist Association (which represents farmers in 40 provinces) and Prime Minister Yingluck. Trying to calm things down, Boonsong Teriyapirom (Trade) says the cut is just a proposal by academics and exporters and will be studied.

Kittisak Ratanawaraha, head of a network of rice farmers in 17 northern provinces, called any cuts "unacceptable." He points out that in practice, farmers do not receive 15.000 baht, but an average of 11.000 through deductions due to humidity and pollution. Farmers would be more helped if the government freezes the price of fertilizers and chemicals. Moreover, the farmers have been waiting four months for their money for the rice of the first harvest. As a result, many farmers have had to take out loans loan sharks which charge 20 percent interest per month.

Kasem Promprae, a farmer in Phitsanulok, says XNUMX farmers in his province are ready to demonstrate at Government House. "The rice mortgage system doesn't make us more money than the price insurance of the previous government, but then we got our money faster." And isn't that a nice boost for the current opposition party Democrats?

– Three thousand farmers blocked part of the Mittraphap Road in Nakhon Ratchasima yesterday. They demand that the government help solve the liquidity problems of farmers' cooperatives, of which they are members. The government would have to inject money into the cooperatives for three years. Other demands include a revision of the debt moratorium program, negotiations with the Bank for Agriculture and Agricultural Cooperatives on deferral of payments for the cooperatives and help to farmers with interest payments.

– Lector Sombat Chanthornwong, involved in the Sathian case, urges a speedy investigation into the 'unusual' wealth of Sathian Permthong-in, former permanent secretary of the Ministry of Defense. "I want this case to proceed quickly so I will know whether Sathian's family deceived me," he says.

Sombat confirms that he will resign from Thammasat University – 'to show moral responsibility' – but he cannot give up his professorship because he has been granted it by royal decree. If it is taken away, he will accept it. [Previously the newspaper wrote that Sombat had retired.]

Sombat got involved in the case because Sathian's wife asked him twice to take money into custody. Once 18 million baht and once through a check for 24 million baht in his name. [Yesterday the newspaper wrote 27 million] She asked because of domestic problems. The woman and her daughter have now called Sombat and expressed their regret for putting him in a difficult position.

(See also News from Thailand of February 27 and 28, and the article 'The Sathian case; or: Boontje comes for his wages)

Economic news

– Strange contradiction: not so long ago companies complained about the unfavorable dollar/baht exchange rate for exports, but the figures tell a different story. In January, exports increased by 16,1 percent, compared to the same month last year, to 555 billion baht.

And not only that: sales abroad increased for the fifth consecutive month; in December, for example, the increase was 13,5 percent. All sectors showed an increase in January.

Imports rose 40,9 percent year-on-year to US$23,8 billion in January, pushing the trade deficit to $5,48 billion (176 billion baht), the largest gap since 1991.

According to Vatchari Vimooktayon, Permanent Secretary of the Ministry of Commerce, Thailand's industry has now recovered from the effects of the 2011 floods. The recovery of the world economy is driving greater demand for rice, fish products and electrical appliances.

The weak Japanese yen is good for Thailand; especially for the Japanese cars and parts produced in Thailand.

– The Ministry of Industry is calling on factories to reduce power consumption by 10 percent or 1.200 MW per day in order to avoid an energy crisis. The ministry is asking 70.000 factories that consume 40 percent of Thailand's electricity, or 12.000 MW of the 27.000 MW. The factories on 40 industrial sites use 3.700 MW per day.

Witoon Simachokede, permanent secretary of the ministry, says that the ministry is now asking for cooperation, but energy conservation could be a condition when permits are renewed.

According to the Industrial Estate Authority of Thailand, April 5 and April 8-10 are critical days in terms of power supplies. National electricity company Egat says Bang Chan industrial estate in eastern Bangkok is most likely to be affected by power outages, as are the district of Lat Phrao and Ratchadaphisek Road. From April 5 to April 14, two natural gas fields in Myanmar will be out of operation for maintenance work. Thailand's power stations depend on natural gas for 70 percent.

– Minister Pongsak Raktapongpaisal (Energy) wants the use of natural gas in the generation of electricity to decrease from the current 70 percent to 45 percent in 2030. Coal and the import of electricity should fill that gap. According to him, the reduced dependence on natural gas will increase Thailand's competitiveness, particularly in the field of energy costs. Other energy sources that can contribute are biogas or biomass and hydro energy.

Pongsak made his plea during a press conference of Thai Solar Renewable Co. The company expects to commission five solar farms before March and another five before June. Each farm produces 8 MW. They are located between Kanchanaburi and Suphan Buri.

– The Law Reform Commission of Thailand, an independent body that aims to improve the country's laws, calls on the government to speed up the National Saving Fund.

The fund, which is an initiative of the previous government, is a voluntary pension scheme for informal workers. The premium is at least 50 baht per month; the government adds an amount, the amount of which depends on age and contribution. People between the ages of 15 and 60 can become members of the fund.

The Ministry of Finance previously announced that the fund would come into effect on May 8, 2012, but that did not happen. The government wants to amend the relevant law. According to the committee, the delay violates the rights of citizens to benefit from the fund, especially those approaching the age of 60.

– Thailand should reduce the number of farmers, who now make up 40 percent of the population, by half while the crop yield remains the same. Former farmers can work in tourism and other industries, says former finance minister Thanong Bidaya. He believes Thailand's future lies in tourism, not agriculture. According to him, Thailand has the best location in Asean for tourism. “Besides, it also has sea, sand, sun and sex. '

Thanong points out that two or three rice harvests a year are harmful to the environment and the increased rice production forces Thailand to sell rice to Africa, what Thanong calls a poor market. "Selling rice to poor countries does not make a country rich. Tourism can generate more income for the local population, so the government should pay more attention to tourism."

– Farmers in Ayutthaya threaten to go to Bangkok on Monday to protest against a reduction in the price they receive for rice under the mortgage system. It is said to go from 15.000 to 13.000 baht per ton.

The Commerce Department denies the rumours. The ministry is not considering lowering the price, says a senior official. Such a decision can only be made by the National Rice Policy Committee, which does not meet until mid-March.

Under the rice mortgage system, the government buys the rice at a price 40 percent above the market price. As a result, exports have collapsed and stocks of unsaleable rice are piling up in warehouses and silos. The system was an election promise of Pheu Thai, who still defends it because it would have increased farmers' incomes. (Source: Breaking News MCOT, February 28, 2013)

www.dickvanderlugt.nl – Source: Bangkok Post