News from Thailand – June 28, 2012

Orient Thai Airlines has been using the old Don Mueang airport for its domestic flights since Tuesday evening, but that is not the case.

Only recently has the company learned that it will not be eligible for the discounted landing, take-off and hangar rental rates that 14 other low-cost airlines receive when they move from Suvarnabhumi to Don Mueang. Nok Air, which returned to Don Mueang in March, Nok Mini/Siam General Aviation, Solar Air and M Jet are also missing out.

Aborting the move is not an option for Orient Thai Airlines because passengers have already been informed and equipment is ready for operation. The service to Hong Kong will continue to use Suvarnabhumi.

On behalf of the five duped companies, the director of Nok Air will soon talk to the Minister of Transport about what they call 'unfair competition'. Thai AirAsia with a hundred flights a day moves on October 1.

– Street vendors are severely affected by the price measure for prepared foods, such as fried rice, noodles and khao kaeng, which the government has in store for 38 provinces. Their incomes are already low, they are not benefiting from the increase in the minimum wage and they are under pressure from economic monopolies. This says Narongchai Akrasanee, former minister of commerce.

10 million people earn their living by selling meals on the street. “These sellers think their income should also increase, along with the minimum daily wage. They have no alternative and are in danger of being harmed by the price measures. This is one of the government's most terrible policies.”

– No Thai government has so far succeeded in significantly increasing productivity in the agricultural sector, says Phanit Laosiritat, director of the Thailand Productivity Institute. And yet that is the key to increasing people's long-term prosperity. Because the food sector has a greater effect on the Thai economy than other sectors because the raw materials do not have to be imported.

The food sector accounts for 3,13 percent of gross domestic product and employs 11 percent of the workforce. Productivity is the lowest of all sectors, followed by textiles and furniture, also labour-intensive industries. Increasing productivity can be achieved by adding value to the product, not by reducing costs, says Phanit. This is absolutely necessary to remain competitive in the region.

Phanit calls for the formation of a national productivity commission and tax incentives for companies that add value to their product, produce less waste and provide work for large numbers of people.

– Under the previous government they had to cost 15 million baht each, now they cost 3 million baht each. The government will make another attempt to renew the Bangkok Mass Transit Authority (BMA) fleet with 3.000 buses running on NGV (natural gas for vehicles). The new price was announced last month by the Land Transport Department.

The BMTA's fleet is severely outdated; the buses run on diesel. The intention is that the new buses will be housed in a separate company, so that the costs do not weigh on the already heavily indebted BMTA. The BMTA employs 15.187 workers and suffered a loss of 78,4 billion baht last year.

www.dickvanderlugt.nl – Source: Bangkok Post

[The Thai news section will be interrupted for 2 days due to circumstances and will appear again on Sunday.]