News from Thailand – June 22, 2013

Opposition leader Abhisit hopes that Prime Minister Yingluck will complete her four-year term and find satisfaction in her work as prime minister. This is what Abhisit wished his political rival yesterday on the occasion of her 46th birthday.

"Pay attention to your work and be rewarded with the results of your hard work." He also said he hopes she avoids actions that could cause chaos.

Yingluck paid tribute yesterday at the altar of Government House, at the end of the morning she treated journalists and staff and in the evening she celebrated her birthday in a homely circle.

– The big rice packing companies deny that they buy rice from the government stock. They get their rice from contract millers or buy it directly from the farmers. The packers say the rice stocked by the government is too old and in many cases has been stored for years.

Doubts have recently arisen about the quality of domestic rice. She would not be stored properly, would have been treated with phosphine gas too often and would be moldy. The government is still left with 17 to 18 million tons of rice from the 2011-2012 season in its stomach because it bought the rice at prices 40 percent above the market price under the mortgage system.

Yongyut Phurkmahadamrong, vice president of CP Intertrade Co, a packer of the Royal Umbrella brand, says his company biologically tests the rice for microbes and poisons and determines whether the rice has been over-gassed. When the GMP and HACCP certification is stated on the rice packaging, the rice is absolutely safe. CP Intertrade obtains its rice from forty contract millers. The rice is processed in two factories in Ayutthaya province.

Another company, Soonthorptanyasap Co (under the Kai Kaijae brand), says the company and other packers source the rice directly from farmers and millers. Although the government pays above market prices, they remain loyal to Soonthorptanyasap. But the company has to pay more for the rice because of the higher price offered by the government.

– More rice. A Senate subcommittee will ask the National Anti-Corruption Commission to investigate irregularities in the government's sale of rice. According to a source at the committee, there is uncertainty about 1,6 million tons of rice.

What is it about? The government has earmarked 2,5 million tons of rice to be sold under the Blue Flag brand. That brand is sold in so-called Too Jai outlets, which sell consumer products at a discounted price, and it should also be available in other outlets. But they don't seem to exist. In addition, the Blue Flag rice is said to be old and of poor quality.

Only a part of the 2,5 million tons has been added Too Jai ended up. It is suspected that 1,6 million was sold back to the market, whereby a nice profit could be made. The government would have suffered a loss of 10 billion baht as a result. The subcommittee suspects politicians and various government departments of being involved.

But according to Chanudpakorn Wongseenin, vice president of the Public Warehouse Organization (part of the Ministry of Commerce), there has been no messing around. The 1,6 million tons would not yet be packed and are in warehouses.

– Politicians have the unique ability to put a positive spin on negative things. For the fourth consecutive year, Thailand is on the US State Department's tier-2 list for not doing enough against human trafficking. But Minister Surapong Tovichakchaikul (Foreign Affairs) is satisfied, because the country has not dropped to the tier-3 list, which leads to trade sanctions.

Although it Trafficking in Persons report of 2013 strongly criticizes Thailand (Tens of thousands are forced into the sex industry, fish processing industry and households), the minister says that the country has made significant progress in the fight against human trafficking. But he must admit that justice has been delayed. In 2012, 305 cases were investigated, of which only 10 led to a conviction.

– Central Pattana, the owner of CentralWorld, has banned political activities on its territory. CP's statement is in response to the intention of the 'V for Thailand' group (recognizable by white masks) to hold a rally in front of the mall on Sunday. CP says its properties are intended to be a space in which the public should feel safe and where entrepreneurs can conduct business.

In recent years, the area around CentralWorld adjacent to Ratchaprasong intersection has become a sought-after place for political rallies. The red shirts occupied the area for weeks in 2010.

The white masks will gather tomorrow in various places in the country to demonstrate against government policy. Rallies have been announced in Udon Thani, Mae Hong Son, Chon Buri, Rayong, Suphan Buri, Nakhon Si Thammarat, Narathiwat and even San Francisco and Sydney.

Deputy Prime Minister Chalerm Yubamrung says he has been informed of a possible violent plot against the white mask movement. He has warned against this; not as a threat but out of concern for the safety of the demonstrators. Chalerm accuses the Democratic party of financially supporting the movement.

- Nurse representatives object to the Rural Doctors Society's (RDS) proposal for new inconvenience allowances. They say this widens the pay gap. The RDS is proposing to increase nurses' allowances, which range from 1.200 to 4.500 baht, by 600 to 700 baht. Too little, say the nurses.

The inconvenience allowances (for medical staff working in isolated areas) have been the subject of controversy since the Minister of Health proposed to halve the allowance and introduce a performance-based payment (P4P, pay-for-performance).

The RDS has proposed new rates for the allowance. Doctors and dentists would keep the same allowance, nurses should get something extra, according to the RDS proposal. The allowance for doctors and dentists ranges from 10.000 to 70.000 baht per month, depending on years of service and location.

– Nineteen members of a call center, who were arrested in China, have been handed over to the Thai police. The suspects, four Chinese and fifteen Thais, seduced victims to transfer money to their bank account. They are being tried in Thailand because they targeted Thais. The police observed the gang for a year before asking Chinese colleagues to round up the gang.

– Owners of imported luxury cars will have another week to report to the Department of Special Investigation (DSI). The DSI is currently investigating 548 cars worth 4 million baht or more, whose owners may have evaded the tax. They were declared as being assembled in Thailand, which meant less tax to pay, but that was not the case.

The DSI's investigation follows an incident last month when four of six luxury cars caught fire while being transported in Nakhon Ratchasima. Two suspects have already reported to the DSI. They have been released on bail.

– The commander of the unit of the Royal Marine Corps, who killed sixteen militants in February, has visited the relatives and apologized. The militants were shot dead during their leaked attack on the naval base in Bacho (Narathiwat).

In a speech to students of the Royal Thai Naval Staff College, the commander said he had had a hard time with the talks. "The hardest part was sitting in front of their families and starting with the first sentence."

– The eighteen ambassadors from the EU who visited Phuket on June 14 and 15 call on the Thai government to help improve the safety of tourists from the EU in Phuket. In a statement released yesterday, they point out that tourists make an important contribution to the local economy. Tourists should feel safe and they should be treated fairly, the statement said.

In concrete terms, this means an end to the intimidating behavior of tuk-tuk drivers and taxi drivers and the scams in the rental of jet skis and motorcycles.

– Residents of Wang Nam Khieo (Nakhon Ratchasima) have protested against the construction of an office in the Khao Paengma forest. They say Forestry officials cut down trees they had planted since 1994 in honor of the King and Queen.

Economic news

– On the first day of its IPO, Nok Air shares closed at 26,50 baht and 8,12 billion baht worth of shares were traded. The day started at 26,75 baht, slightly above the IPO price of 26 baht, rose to 29,25 baht and finally ended at 26,75 baht.

Siam Piyanont, analyst at Phillips Securities, calls the IPO price attractive compared to listed fellow airline Asia Aviation. "We target a price of 36,75 baht, based on a P/E (price-to-earnings) ratio of 17 times." Aira Securites set its target price at 36,20 baht.

Nok Air has earmarked 187,5 million IPO shares to finance future expansions, including the purchase of new aircraft. The airline wants to expand its fleet from 16 aircraft now to 30 in 2015.

– Minister Pongsak Raktapongpaisal (Energy) wants to expand Thailand's energy reserve from 15 to 20 percent. He points out that the frequent interruptions in the supply of natural gas from Myanmar can lead to blackouts and brownouts.

Thailand has an active capacity of 32.961 MW, but the actual or standby capacity is less. Demand is 27.000 MW in the hot season and 24.000 to 25.000 MW in the rainy and cold season.

Between 2008 and April this year, the gas supply from Myanmar has been interrupted 15 times, mostly during the hot season. The gas from Myanmar accounts for a quarter of Thailand's consumption. An interruption means that the reserve stock decreases from 6 to XNUMX percent.

The last time supply was interrupted was in April, when a production platform was shut down for maintenance work. Thanks to the cooperation of the business community, which shifted production times and saved energy, the country came off unscathed.

Pongsak would not say how large the maximum reserve should be. This year the Power Development Plan (PDP) will be reviewed, looking at the increasing demand for energy due to urbanization and the planned construction of high-speed lines. One line uses 1.200 MW. The PDP was updated last year, but it did not take into account the expansion of the metro network in Bangkok, the construction of the high-speed lines and water management projects.

– The National Broadcasting and Telecommunications Commission (NBTC) must urge the three 3G providers to guarantee a minimum speed of 345 kbps (kilobits per second). The NBTC must also ensure that the providers adhere to the international standard of Fair Usage Policy. This plea is made by a consumer panel [not indicated by name by the newspaper].

The panel says it is inundated with complaints about the actual speed. Some packages offer a lower speed than 2G or 64 kbps. The minimum download speed of 3G is 345 kbps and of uploads 153 kbps. Providers in other countries only limit use in accordance with the Fair Usage Policy for apps such as music, video-on-demand and file-sharing. Normal internet services are provided at the promised minimum speed. Some European countries limit speed during peak hours.

Next week, the NBTC will consult with the three providers. According to AIS CEO Wichian Mektrakarn, it is still too early to conclude that the current speed of 3G services is much lower than required.

www.dickvanderlugt.nl – Source: Bangkok Post