News from Thailand – January 23, 2013

To pull Thailand out of the so-called 'middle-income trap', the government will be working hard over the next seven years with substantial investments in infrastructure. These investments should create jobs, reduce the income gap, eradicate poverty and strengthen business. 

Prime Minister Yingluck announced these ambitious intentions yesterday at a meeting of the top of the civil service and state-owned companies.

The "middle-income trap" is an economic term that indicates that a country's growth stagnates after the country reaches the middle-income level. With an average per capita income of $4.000 to $5.000 per year, Thailand is in that category defined by the World Bank.

By comparison, the median per capita income in Malaysia is $9.700 and in Singapore $46.910. In a high-income economy, it is $12.476 or higher. Malaysia is in the final stages of its middle-income trap and expects to reach the upper-income level in 2020.

During the meeting, Yingluck formulated four main objectives. In addition to pulling Thailand out of the trap, the government wants to promote equality, protect quality of life and the environment, and improve public administration. Yingluck said her government wants to increase people's income by promoting agro-industry, tourism and service sector and zoning land use in the country.

Thailand has a large income gap. The highest income group owns 54 percent of the national pie, the middle income group 41,2 percent and the lowest income group 4,8 percent.

– We reported it yesterday: the government is going to borrow 2,2 trillion baht, of which 1,56 trillion baht is intended for improving rail transport. These investments should ease the transport burden on roads in favor of rail transport, reducing logistics costs by 13,2 percent.

The money will go, among other things, to the construction of a high-speed line Padang Besar-Hua Hin-Bangkok, Bangkok-Chiang Mai and Bangkok-Nakhon Ratchasima-Nong Khai and further to Laos. In Bangkok and the immediate vicinity, the metro network will be expanded from the current 80 kilometers to 464 kilometers. There will also be a unit rate of 20 baht to stimulate the use of the metro.

– A 22-year-old Swiss tourist, who was reported missing by her family in Switzerland, appears to be imprisoned in the provincial prison of Ranong. On December 25, she was detained by immigration officials for stealing a camera. In addition, her tourist visa had expired on December 22.

– An unattended suitcase in the departure hall of Suvarnabhumi aroused suspicion on Monday. An x-ray revealed the contents: 11 otters. The Department of National Parks, Wildlife and Plant Conservation has taken care of the animals and has housed them at the Nokham Bangpra Wildlife Breeding Center in Chon Buri and the Huai Ka Khaeng Wildlife Breeding Center in Uthai Thani.

The otters were destined for Japan. Presumably they came from the southern provinces. The otter is a protected species under the Wildlife Preservation and Protection Act, which prohibits unauthorized export of the animal.

At Chatuchak weekend market and in the vicinity of the Brahma statue at Ratchaprasong intersection in Bangkok, officials seized 119 rare birds. Most were red-whiskered bulbuls (Pycnonotus jocosus). [Google gives no translation]

– Fifteen leaders of the People's Alliance for Democracy (PAD, yellow shirts) have reported to the Criminal Court yesterday to hear what they are charged with in two cases: the occupation of the parliament building and the invasion of Government House.

A total of 20 and 21 PAD members, respectively, have been charged for this; six others had previously reported to the court. All suspects are free on bail. The court will hear witnesses in April.

– Today Somyot hears Prueksakasemsuk, publisher of the magazine Voice of Taksin, whether he is convicted of lèse-majeste. Somyot sent an 18-page final plea to the court last week. On April 30, 2010, he was arrested at the Thai-Cambodian border because of two articles in his magazine that were inappropriate.

Somyot's main defense is that he is not the author of the offending articles, but the publisher. Under the Print Act of 2007, he is not responsible for the articles. Somyot also points to a statement by the king, who has said that he has no objection to criticism of him from his subjects.

– If the board of directors of Thai Airways International (THAI) does not take the union's demands seriously, there is a chance that the staff will stop working again. This threat was made by union president Jaemsri Sukchoterat after she had spoken with Executive Board president Ampon Kitti-ampon. The union is demanding, among other things, a wage increase of 7,5 percent for staff earning less than 30.000 baht a month.

In covert terms, the union has also urged Ampon to think about his future [read: to resign] because he had spread confusing information about THAI. On Saturday, 400 ground staff went on strike to reinforce union demands.

– Why did former Deputy Prime Minister Suthep Thaugsuban (photo, Democrats) intervene in the tender for the reconstruction of 396 police stations? The Department of Special Investigation (DSI, the Thai FBI) ​​wants to know that now that it is investigating the case. The construction of the offices is only 5 percent complete and the work has come to a standstill.

Initially, the tender was to take place separately in each region, but Suthep intervened and demanded a central tender through the Royal Thai Police. He stipulated that the contractor was not allowed to subcontract the work. The work was put out to tender in March 2011 with the contractor receiving an advance of 877 million baht. The total budget is 6,67 billion baht.

Opposition leader Abhisit has already threatened to take the DSI to court if it charges Suthep with the aim of intimidating him. And that wouldn't be the first time, because it seems that the DSI is conducting a witch hunt against Suthep (and Abhisit).

– A 12-year-old boy was shot dead in Nong Chik (Pattani) on Monday evening, while he was sitting on the back of his mother's motorcycle. The boy's stepfather, who was behind him, was injured. Two men on a motorcycle followed the trio. The pillion passenger opened fire on them. Police have CCTV footage of the two attackers.

In Khok Pho (Pattani), three defense volunteers were injured when a roadside bomb exploded. The volunteers, protecting a school, were only slightly injured. The bomb was 30 meters from the school.

– The army has set up a commission to investigate whether two officers were involved in the smuggling of Rohingya. They hold the ranks of lieutenant and major and are attached to the Internal Security Operations Command's 4th Region Forward Command.

Earlier this month, 850 Rohingya refugees from Myanmar were detained in Songkhla province. Most have been smuggled in by human traffickers. Their future is being discussed between the government and the UNHCR. The refugees were on their way to Malaysia or Indonesia.

Another 179 Rohingya were intercepted by the police in the water near Phangnga yesterday. They were huddled in a boat and had been on the road for sixteen days.

– The number of complaints from Thai women living abroad and say in one love affair to have been lured and taken from money is increasing. The Department of Special Investigation (DSI) has launched an investigation into the recent arrest of two Nigerians who stole 20 million baht from a Thai woman.

According to the DSI, there is a gang that approaches Thai widows in their XNUMXs living in Sweden, Norway, Denmark, Hungary and Australia. The women are seduced with sweet talk for no other purpose than to extract money.

– The chairman of the Provincial Administration Organization of Songkhla has been arrested on suspicion of involvement in the murder of Peera Tantiserane, mayor of the city of Songkhla, in November last year. The chairman is said to have ordered an assassin to kill Peera. The chairman is the fifth suspect arrested in this case. [Soon a background article about this case on thailandblog.]

– Forest fires in Lampang province are leading to a deterioration in air quality, but the safety standard has not yet been exceeded. In the neighboring province of Nan, drought and wildfires are getting more severe every year due to widespread deforestation.

Political news

– The Pheu Thai candidate for governor in Bangkok promises things that are against the law. Opposition leader Abhisit has therefore asked the Electoral Council to investigate whether Pongsapat Pongcharoen is making misleading promises.

Pongsapat has said he will reduce the rent of market stalls at Chatuchak weekend market and make all air-conditioned buses in Bangkok free. Abhisit points out that Chatuchak is operated by the State Railway of Thailand and bus fares are the responsibility of the Ministry of Transport.

This week the battle for governor has started with 18 candidates registered. The most important are ex-governor Sukhumbhand Paribatra (Democrats) and Pongsapat (Pheu Thai). Pheu Thai is committed to breaking the dominance of the Democrats in Bangkok. Bangkok goes to the polls in March.

Economic news

– A quarter of the 400 companies in a poll by the Federation of Thai Industries (FTI) say they may close their doors because they cannot afford the higher wage costs due to the increase in the minimum daily wage to 300 baht on January 1. As a result, operating costs have risen on average by 10 to 12 percent. Moving to a low-wage country is not an option for those companies, said FTI Secretary General Tanit Sorat.

The poll was conducted among the manufacturing and service industries, including transportation, hotels, retail and shippers. The companies produce for both the export and the domestic market with a workforce ranging from 25 to more than 200 employees.

The clothing industry is the hardest hit, followed by the food industry, electronics and ceramics. 35 percent of SMEs expect to end up in the red.

According to a recent survey by the Industrial Works Department, 66.000 companies are affected or 88 percent of all factories. Only 37 percent have their own brand. When subcontractors raise their prices, they risk customers shifting their orders to competitors in other countries.

According to half of the companies surveyed, government support measures, such as reductions in business tax, are of little use to them. Another 47 percent see no benefits in these measures. [The difference between the two categories is not clear to me] Only 4,4 percent are satisfied with the aid provided by the government; 66,67 percent are not, according to Tanit.

– In the third quarter of 2013, a new Toyota factory will come into operation at Gateway 2 industrial estate in Chachoengsao. The factory will have a capacity of 300.000 vehicles per year. It is an extension of the existing factory at Gateway. The investment costs amount to 12 billion baht. The first model is an eco-car.

Toyota's first factory on Samrong in Samut Prakan has started assembling the Hiace Commuter High-Roof van to replace the import. By the middle of the year, production will be expanded to 18.000 cars per year. The staff will work in two shifts.

Furthermore, this year the number of showrooms and service centers will be expanded from 357 to 400 and the number of Toyota Sure showrooms from 85 to 100.

Toyota has three factories in Thailand. The Hilux Vigo pickup truck is made in Samrong (240.000 per year). All models of passenger cars roll off the assembly line at Gateway (230.000 per year). The third factory in Ban Pho (Chachoengsao) produces the Vigo and Fortuner passenger pickup (230.000 per year).

– The National Broadcasting and Telecommunications Commission is unrelenting: deadline is deadline and it remains January 18. Since that date, the telephone companies must comply with the requirement that prepaid SIM cards be registered and the expiration date must be removed.

The NBTC charges a fine of 80.000 baht for each day that those requirements are not met. The expiration date requirement will incur an additional fine of 100.000 baht per day for AIS, Dtac and True Move. In addition, overdue fines still have to be paid. The providers are on their hind legs. They say they need more time.

– The banks in Thailand recorded a net profit growth of 30,06 percent on average last year or 163,13 billion baht. The biggest grower was the Bank of Ayudhya with a profit growth of 57,87 percent. Siam Commercial Bank published its figures on Monday; profit went up by 28,86 percent to 40,22 billion baht.

Only TMB Bank published a lower net profit: 1,6 billion baht against 4 billion a year earlier, but the decrease is due to one-off provisions of 5,29 billion baht. Excluding those, the profit would have amounted to 10,4 billion baht. Krung Thai Bank also reported lower-than-expected profit due to provisioning.

www.dickvanderlugt.nl – Source: Bangkok Post