News from Thailand – September 13, 2012

Nonthaburi and Pathum Thani provinces, hit hard by last year's floods, are again at risk of getting wet feet (and more) this year if there are torrential downpours, Prime Minister Yingluck says.

But the government is doing everything it can to prevent this by releasing controlled water from reservoirs and reservoirs. In addition, the water drainage in the east and west of Bangkok has improved, she says.

The Meteorological Department expects heavy rains across the country from tomorrow through Monday. Bangkok's Department of Drainage and Sewerage has warned the capital's 50 district offices to closely monitor the situation. 27 neighborhoods outside the flood walls of the Chao Phraya should receive a flood warning from the relevant district offices. The municipality has already lowered the water level in the canal network to prepare for extra water.

Although drainage via the Chao Praya is an option, the municipality prefers to drain the water via the east and west sides of Bangkok to spare the downtown business districts.

The Water and Flood Management Commission, on the other hand, wants to drain the water only through the west side. Discharge via the east side entails risks for the industrial sites located there, the committee argues.

However, the municipality continues to favor both sides. "The committee should explain why it does not take the interests of the people into account," said a source at the municipality.

– The nice words of the government about water management and anti-flood measures are in stark contrast to what happened in Sukothai on Monday. At the first bit of water from the North, a river dike broke, flooding the city. Undoubtedly the result of poor or no maintenance.

This year would be different from last year, the government has told the population ad nauseam in recent months. Tell it to the residents of Sukothai after they dry up, writes the Bangkok Post in its editorial on Wednesday. In a word: a debacle.

– The Amsterdam-based organization La Strada International is one of five organizations receiving a donation, run together from November 3 to 18 by a group of volunteers from different parts of the world. The 350-kilometer journey from Bangkok to the Three Pagodas Pass on the border with Myanmar aims to draw attention to human trafficking and, importantly, to raise 5 million baht, because that is the target amount.

Every morning 25 to 32 kilometers are run, in the afternoon the runners immerse themselves in the problem of human trafficking and forced labour. The first day the American ambassador walks in Thailand along, the last six days former presidential candidate Howard Dean.

La Strada International campaigns against the trafficking of men and women who have to work in the sex industry in Eastern Europe or are forced to do other work. The walking tour is an initiative of an American who works for the Global Alliance Against Traffic in Women and a Thai law student from Chulalongkorn University.

– The Democrats got their way. Prime Minister Yingluck will also be present at a discussion about violence in the South on Tuesday. The meeting is chaired by Deputy Prime Minister Chalerm Yubamrung.

Chalerm says the 93 men who voluntarily surrendered in Narathiwat on Tuesday will at least be prosecuted if charged with a crime. But the government does want to arrange legal assistance for them. But, he said, this is a private opinion, which I will not formally present to the Minister of Justice. In the meantime, more insurgents have made it known through their families that they want to surrender.

Udomchao Thammasarorach, commander of the XNUMXth army corps, says the army will still decide what to do with those detained under the emergency order. He thinks the state of emergency should be lifted so that more insurgents are likely to surrender.

– The Office of the Narcotics Control Board (ONCB) will set up centers in 25 districts in Bangkok and 54 districts in 23 provinces, from which officials from various ministries will tackle the drug problem for at least 90 days. The Ministry of ICT will install cameras there, the police will arrest drug dealers, the Ministry of Health will offer drug rehabilitation options, both voluntary and compulsory, and so on.

Civil servants from the Ministries of Education, Employment, Home Affairs and Welfare are also involved in the ambitious campaign.

Economic news

– The Thai rice exporters react with surprise and disbelief to the announcement of Minister Boonsong Teriyapirom (Trade) that his ministry has concluded export deals with four countries for a total of 7,33 million tons of rice. The minister has not disclosed any further details except that it concerns Indonesia, the Philippines, China and Ivory Coast.

The exporters only know of a contract with Ivory Coast for 240.000 tonnes, concluded in July. An anonymous source says that agreements have been made with Indonesia, the Philippines and Bangladesh for 1 million tons each and 200.000 tons with Guinea.

The minister's statement that the delivery has already started is not believed at all because the exporters in the port have not seen any activity that indicates this. 'Export of more than 100.000 tonnes of rice would at least have a shipment booking, which cannot be concealed, and due to the current low export volume, we'd know about any large exports such as those announced by the minister.'

The exporters are curious at what price the rice is sold. According to reports, the government would sell rice to Indonesia for $500 a ton, which is less than the current market price of $560-580. "If the sale price turns out to be $450, it would mean a huge loss to the government and the destruction of Thailand's rice export market," said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association.

Until last Friday, Thailand had exported 4,5 million tons of rice, 45 percent less on an annual basis than last year. The minister thinks that the country will export 8,5 million tons this year. The government stock of 12,6 million will be reduced to 4,1 million tons, an amount that will remain available for emergencies. The minister reiterated once again that the criticized mortgage system for rice will be maintained. "Every grain of rice is being bought up."

– This weekend the price of LPG for the transport sector will go up. The Energy Policy Administration Committee will make a decision on this on Friday. The price for domestic use remains the same at 18,13 baht per kilo; it will only go up next year. The transport sector also paid 18,13 baht until now, the price for the industrial sector was already released last year and is now 30,13 baht. Since 2008 LPG has been subsidized by the State Oil Fund, a fund that is fed by levies on other fuels. The LPG subsidy has required 100 billion baht.

– Can't the business community keep its pants up? Why does it need the government for that? Because neighboring countries score better in the Global Competitiveness Report 2012-2014 of the World Economic Forum, the business community is calling on the government to take concrete actions to increase Thailand's competitiveness.

Look at Malaysia, where the government has formed a competitiveness task force, Tevin Vongvanich, president of the Thailand Management Association, said at the 2012 Thailand Competitiveness Conference on Tuesday.

Malaysia is in 25th place, Thailand has risen one place to 38th place in the ranking of 144 countries and Singapore is unchanged in second place. On the list of institutions, Thailand dropped 10 places, because the level of public health and education is judged to be weak.

In another ranking of 59 countries by the International Institute for Management Development 2012, Thailand dropped from 27th to 30th place.

The Thailand Management Association (TMA) lists a number of challenges for Thailand: investor confidence, government stability, labor shortages, infrastructure, SME survival, investment in science and technology and developing a 'green' economy. The TMA believes that the government should spend more money on R&D (research and development) and government departments should simplify the process for companies to receive incentives for R&D.

Isara Vongkusolkit, chairman of the Mitr Phol Sugar Corporation, said Malaysia is outperforming Thailand in terms of food exports, although the country has 47 million rai in arable land compared to Thailand's 110 million rai. This is mainly due to a higher crop yield.

Thailand does not use many irrigation systems, so the yield is low. Of the 33 million rai of rice fields, only 4 million rai is irrigated.

Deputy Minister Chatchart Sithipan (Transport) pointed out that Thailand's transport network relies far too much on road transport. To reduce transportation costs, the country needs to expand its rail network. The logistics costs in Thailand amount to 15,2 percent of the gross domestic product, which is quite high.

– The fines on counterfeit goods will go up to 400.000 baht next year, a prison sentence of up to 4 years or both. On Tuesday, the cabinet decided in principle to take a tougher approach to piracy. Provincial staff and police are instructed to inspect flea markets for counterfeit items, especially alcoholic beverages, coffee, sauces, shampoo and cosmetics. That is only a small part of the illegal trade, because most fake products are sold via the internet.

In the past seven months, the national police have seized 4.071.056 counterfeit products worth 77 million baht.

www.dickvanderlugt.nl – Source: Bangkok Post (September 12) and www.bangkokpost.com (September 13)