Waste or make money in Thailand - 500 Beiträge pro Seite

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Increase in bad loans fuels worry over trend
Market pessimism about restructuring



Two top Thai banks sent a worrying signal to the financial markets yesterday, announcing a rise in bad loans after more than a year of declines.

Some analysts said the whole banking industry could see a further rise in bad loans in coming months as the loan restructuring environment became tougher.

Thailand`s biggest bank, Bangkok Bank, and the fourth-largest, Siam Commercial Bank, both announced a slight increase in non-performing loans-those with no income for at least three months.

Bangkok Bank said its NPLs were up slightly at 21.62% of loans, or 162.5 billion baht, at the end of October, from 21% or 159.9 billion at the end of September.

Siam Commercial Bank said its bad loans rose to 18.9% of total lending from 18.7% in the same period.

The figures from the two major banks confirmed market pessimism over the pace of restructuring bad loans in the financial system and are likely to deepen negative sentiment in the Thai stock market, which is already one of the worst performing in Asia this year.

Thailand`s benchmark Stock Exchange of Thailand composite index is down more than 40% this year.

Analysts said the NPL rise confirmed expectations of a relapse of bad loans that had been restructured a year ago.

They said many borrowers had been granted a one-year grace period to help them repay loans at the end of 1999 but had found it increasingly hard to finance debt after their year expired.

David Loomis, head of research at Nava Vickers Ballas in Bangkok, said Thai banks faced an uphill battle trying to reduce their bad loans in the months ahead.

"I don`t really see there is going to be a whole lot more progress. The restructuring environment is getting more and more difficult. It has been pretty much stalling in the overall process in the past couple of months," he said.

Figures from other major banks were not quite as bad.

Thai Farmers Bank and state-owned Krung Thai Bank said they had trimmed their NPLs marginally to 14.75% and 10.93% of lending at end-October from 14.92% and 11% respectively at end-September.

"We had expected to see higher outstanding NPLs in the fourth quarter due to a relapse of restructured bad loans," said banking analyst Dusadee Srishevachart at Asset Plus Securities. "We estimate an average 20% of restructured NPLs a year ago would likely turn sour again."Mr Loomis said Thai banks were now left with NPL cases which were much tougher to handle after success reviving some of their more financially viable clients in the past year.

"If you look at the numbers, some 70% of the bad loans are headed toward or already in litigation which typically involves a very lengthly process in the civil court. There aren`t too many restructureable loans out there in the system."Thai banks, hit by massive defaults on their loans after the baht and financial sector collapsed in 1997, saw their NPLs peak at 47% of total loans in May 1999. The figure fell to 22.3% in September.

Mr Dusadee of Asset Plus said he expected industry-wide NPLs to rise to 24-25% by the end of 2000 and probably flatten around that level in the first few months of 2001.

Bank loan problems have emerged as a key issue in the general election scheduled for Jan 6 with several political parties campaigning for a national asset management company (AMC) to speed up the restructuring process.

Finance Minister Tarrin Nimmanahaeminda has long resisted calls for a centralised AMC on the grounds it could create moral hazard by encouraging a non-payment culture among Thai companies. But some parties, including Thai Rak Thai, support the idea.

POST The Post Publishing Public Co., Ltd. 2000
Last Modified: Wed, Nov 22, 2000

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Kommentar aus dem SEAMICO-BOARD zum Post Artikel:[Wednesday, November 22, 2000 9:38:52 AM]
Subject : Big cap.s dogs./Brokers only want to trade junk.
Message : Today`s news, yet one more time. "Two big Thai banks send worrying bad loans signal..." Yet for years most local brokers just advocate trading this junk. We for one are upset. When local brokers start advocating values instead of just speculating, we will back with our millions of $. By Vithoon Amorn BANGKOK, Nov 21 (Reuters) - Two top Thai banks sent a worrying signal to the financial markets on Tuesday, announcing a rise in bad loans after more than a year of declines. Some analysts said the whole banking industry could see a further rise in bad loans in coming months as the loan restructuring environment became tougher. Thailand`s biggest bank, Bangkok Bank Plc <BBL.BK>, and its fourth largest, Siam Commercial Bank Plc <SCB.BK>, both announced a slight increase in non-performing loans (NPLs) -- loans with no income for at least three months. Bangkok Bank said its NPLs were up slightly at 21.62 perc

Name/E-mail : Katz & Berger

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Diese Überlegungen gelten nicht nur für Thailand:

MONEY MATTERS

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Make sure of your destination first
Know your goals from the outset and select the best service to match them


ATUDHYA JARDINE FLEMING


Last week I discussed the various financial goals and the ways to achieve them. They depend on your risk/return appetite, time horizon, costs and experience.

If you are a novice investor with minimal experience, it may be better and cheaper to start by following the indirect route. That is, use the services of professionals to manage and monitor your investment. Hopefully, over time, your investment will grow and you will also learn from these professionals how to invest directly in the stock and bond markets.

In Thailand, the two common types of indirect investment are mutual funds and private funds. Last week, I compared them respectively to buses and taxis, both of which can help you reach your destination, or investment goal.

Private funds are investment contracts with asset management companies. The funds basically set the objectives that the investors would like to achieve and let the managers handle the details.

The drawback is that the funds do not receive tax privileges. Investors pay tax on dividends and interest income. Therefore, they should not be used for investing in fixed-income instruments. You gain more by investing in fixed-income mutual funds, which receive tax privileges.

Mutual funds are pools of money belonging to many investors with the same objectives and are managed by asset management firms. Like buses, they are an economical way to travel. With their larger funds and experienced investment managers or drivers, they usually have a better chance of obtaining higher returns than those obtained by retail investors.

The Thai public`s view of mutual funds and investment managers is usually negative. To illustrate how mutual funds became so unpopular in Thailand, I will expand on my analogy of the bus system. In the beginning, there was only one bus company to carry the public. The traffic then was not bad and the road system was not too complex, so most people found that they could walk or drive their own cars to their destinations.

Then in 1992, the market was deregulated to create competition by giving seven concessions to new bus firms. It was hoped that by having more buses, people would not use their own cars, which could reduce the traffic jams. As a condition, the new firms had to launch their services within six months or lose their concessions.

The new firms hurriedly introduced their buses. They hired drivers and looked around for ticket issuers. Obviously, given the tight timeframe, they had to pick the ones that knew a lot of potential passengers. The drivers selected were community leaders who also worked for the owners of the bus firms. Why? Who would want to drive an empty bus?The ticket issuers persuaded residents in their areas to board the buses. People were keen and the seats were soon taken. Everyone was happy, and the buses moved off. But there was one thing that nobody noticed: neither the ticket issuers nor the passengers had a clue about where they were going.

For the first half hour, the ride was pleasant; passengers complimented the fast, comfortable services. However, the buses later began encountering bumpier roads caused by heavy storms. After two hours, a number of passengers realised that the buses were not heading to the intended destination. They were angry and demanded reimbursements from the ticket issuers, who were also surprised and could not give a satisfactory answer. The passengers became more disgruntled and eventually admonished the drivers and ticket issuers when the buses kept going further away from their destinations.

The drivers felt the hostility and asked the company owners to approve a change in direction. The owners contacted the government agency that regulated the bus services. The reply was: "You said your bus was originally going to Sanam Luang. We do not approve your request to change the course to Bang Na even though the majority of the passengers want to go there. You have to keep driving to Sanam Luang."In the end, the buses arrived at Sanam Luang, with all the passengers threatening that they would sue the bus firms and the ticket issuers. The firms contended that there were signs on the buses stating the destination. However, the signs were small and most passengers did not have time to read them since they were in a hurry to board the buses.

The moral of this story is that no one party was at fault in the unsuccessful journey of the buses, or mutual funds, in the past. The bus companies, or the asset management firms, should have given a clearer message to the passengers about where they were heading and what they could expect from the journey. They should also have designed the buses to allow passengers to get off, for example by offering open-ended funds.

The ticket issuers, or bank branches, should have known more about the journey, or products, and have helped the passengers to board the right buses. The passengers were at fault for ignoring the fine print. The state was at fault in disallowing the drivers to change routes in times of adversity. Rigid guidelines forced the drivers to take a specific route despite the dangers.

Many people are scared to travel by bus again. But my advice is to learn from your experience and be more cautious. Today, there are more types of funds from which to choose: fixed-income, flexible and equity funds. There are also licensed financial planners to help select the right products. But seek as much information as possible on the various indirect products and discuss them with many financial planners before deciding which is best.

- Reungvit Nandhabiwat is managing director of Ayudhya Jardine Fleming Asset Management. The firm can be reached by e-mail at [e-mail] or through the web at www.ajffunds.com.




© Copyright The Post Publishing Public Co., Ltd. 2000
Last Modified: Wed, Nov 22, 2000

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Na ja wenigstens der Tourismus boomt schon mal:Love affair with tourists continues


TOURISTS continue to arrive in ever-increasing numbers despite the absence of major events during this year`s high season.

The number of arrivals for the whole year is expected to reach 9.6 million - an increase of 10 per cent compared with last year.

The number of visitors to the popular resort of Phuket is expected to reach 3.4 million, an increase of 10 per cent compared with last year.

Chiang Mai is expected to see a rise of 8 per cent to 3.5 million, Pattaya 7 per cent to 3.7 million, and Samui 2 per cent to 792,388.

Bangkok, the gateway for major destinations in Thailand, is expected to tally up nine million tourists his year - an increase of 12.5 per cent compared with the previous year.

"We had previously expected just 8-per-cent growth over last year, but a year-on-year increase of over 10 per cent since January encourages us to increase our projections," said Tourism Authority of Thailand (TAT) governor Pradech Phayakvichien.

On this basis, he forecast that the number of tourists would reach 9.6 million. The previous projection was 9.12 million.

Last year, 8.5 million tourists visited Thailand, generating revenues of more than Bt253 billion. During the first eight months of this year, more than 6.4 million tourists arrived, a rise of more than 10 per cent compared with the same period last year.

But the economic benefits of the boom in tourism over the past few years have been unevenly spread.

Chanin Donavanik, president of the Thai Hotels Association, said most tourists were drawn to six major destinations - Phuket, Samui, Pattaya, Bangkok, Chiang Mai and, probably, Hua-Hin. The number going elsewhere was far less.

Some relief for the less-popular areas could come in the 10-year master plan recently approved by the government. One of its main objectives is to increase the number of major tourist destination from 10 to 15 over the next decade.


Bangkok

CHANCHAI Rohitasiri, director of the Bangkok Tourist Bureau, said the number of tourists arriving in Bangkok would rise by 12.5 per cent, compared with last year, to nine million.

However, their length of stay would average only two to three days.

Bangkok`s room rates remained low, equivalent to half the average room rates in Singapore and one-third of the average in Hong Kong, said Chanin of the Thai Hotel Association.

Currently, the room rates of some luxury hotels in Bangkok were less than US$100 per night.

Bangkok hotels were facing new competitors with an increase in the number of serviced apartments and guesthouses offering daily, weekly and monthly rates.

Chanin said the opening of a new hotel, the Hotel Plaza Athenee on Wireless Road, might intensify Bangkok`s oversupply problem. The city has more than 474 hotels with 69,000 rooms.


Chiang Mai

GOVERNMENT expenditure on promoting seminars and conventions in the north are helping to revitalise Chiang Mai`s tourism industry.

The city welcomed more than 3.3 million tourists last year. The number of arrival was expected to grow by 8 per cent this year, said Nuan Sarnsorn, assistant director of TAT`s Chiang Mai office.

But Chiang Mai had a shorter high season than other parts of the country and as a consequence the hotel industry was facing a huge oversupply problem during the low season, he added.

"Hotel rooms are all booked during the winter, but there are few guests at other times of the year," he said.

There are more than 14,300 hotel rooms in Chiang Mai alone.


Pattaya

INCREASED promotion of Pattaya`s entertainment and sports facilities, as well as better environmental management, is helping the seaside resort to restore its reputation.

"We expect a 7-per-cent increase in tourist arrivals this year to 3.7 million," said Manit Boonchim, director of TAT`s eastern region.

At present, Pattaya not only has 27,000 hotel rooms but an international convention centre that has lifted the image of the resort. Also a better road system from Bangkok to Pattaya has attracted local tourists to the city.

Manit said US tourist arrivals in Pattaya during the first six months of the year rose by more than 30 per cent. The number of Japanese arrivals increased by more than 20 per cent.

Pattaya`s improved image had also prompted new hotel projects, he added. For example, Central Hotels and Resorts were preparing to demolish the old Central Wongamart hotel to build a new low-rise hotel that would target long-term holidaymakers.


Phuket

ANUPARP Thirarath, director of TAT`s Phuket office, is expecting a 10-per-cent growth in the number of tourists this year, from 3.08 million last year.

Phuket played host to 2.1 million foreign tourists last year and 900,000 Thai visitors.

The hotel room rate in Phuket was higher than elsewhere in Thailand. The cheapest rooms in Phuket, mainly in guesthouses, started from Bt800, said Anuparp. And the highest-priced rooms could go up to Bt30,000 a night in some of the luxury hotels.

Unlike Bangkok, the growth prospects for the local tourist industry are reflected in the increase in hotel rooms - expected to reach 30,000 by the end of the year. This compares with 23,000 rooms last year.

The average hotel-occupancy rate for Phuket is about 60 per cent. During the peak season (November to January), the hotels would be full, said Anuparp.

The number of rooms would continue to rise next year as the Marriott group and Royal Garden Resorts were expected to open new establishments, he added.


Samui

ONLY a slight increase in the number of visitors was expected this year, said Panu Woramit, chief of TAT`s tourism development office on the island.

Last year, 776,851 foreign tourists visited the island.

Panu predicted that the number would increase by 2 per cent this year. He attributed the low growth to competition from major sporting events such as the Sydney Olympic games.

"The Olympic games made the length of stay of foreign tourists in Samui shorter than before," he said. "Whereas in previous years, they spent one to two weeks here, this year they are only staying four to five days."

Some small hotels had closed temporarily during the low season this year, he said.

These would resume operations when the high season started in December.

About 70 per cent of the 8,000 hotel rooms available in December had already been booked, Panu added.

BY CHOOSAK JIRASAKUNTHAI

The Nation

LAST MODIFIED: Tuesday, 21-Nov-00 11:16:15 EST

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Da muß ja wohl noch einiges passieren!


Priorities set for next govt


THE next government must confront the challenges of managing the huge public debt of Bt3 trillion, harnessing a flexible and weaker exchange rate and adjusting interest rates upwards to stem capital outflow, said Pridiyathorn Devakula, president of the Export-Import Bank.

Pridiyathorn was earlier tipped to become a key member of the Thai Rak Thai Party`s economic team but declined an offer, which was understood to be the post of finance minister.

He told The Nation that the public-sector debt of more than Bt3 trillion, which was equal to 60 per cent of the country`s gross domestic product (GDP), had to be managed effectively otherwise it would derail economic recovery.

As of August, Thailand`s public-sector debt stood at Bt2.76 trillion, or 56 per cent of GDP, according to the Finance Ministry. But this amount does not include US$12 billion (Bt528.01 billion) owed to the International Monetary Fund and donor countries, which bailed out Thailand during the economic crisis.

Among the public-sector debts are direct borrowings by the government, the debt of non-financial state enterprises and the liabilities of the Financial Institutions Development Fund (FIDF).

The FIDF is likely to incur losses of Bt700 billion from its bailout of the financial system over the past three years.

Pridiyathorn, a deputy commerce minister in Anand Punyarachun`s administration in the early 1990s, said the next government would have to ensure that the country maintained a current account surplus adequate to service the public debt over the next five to six years.

He added that to achieve that objective there would have to be measures to slow imports and save foreign exchange while maintaining the export-growth momentum. Pridiyathorn admitted that it would not be an easy task, given the fact that imported raw materials make up as much as 75 to 80 per cent of some exported Thai goods.

The former minister believed the measures could succeed if the government utilised expertise and experience. He noted that the current account surplus, which Thailand had been enjoying over the past three years, was starting to shrink because imports were outgrowing exports.

In the second half of this year, the current account surplus has shrunk to $500 million to $600 million per month from a peak of more than $1 billion per month.

To address this issue, the government had to pay more serious attention to saving foreign exchange by curbing the import of luxury and unnecessary items while preserving the earnings from tourist arrivals, Pridiyathorn said.

"We have to ensure that we have a current account surplus [in the balance of payments] for up to five to six years from now. We may have a net capital inflow [from foreign direct investment] in the next two to three years but that`s still not certain," he said.

As a banker and former cabinet minister who suffered the oil crisis in the 1970s and the last round of baht devaluation in the 1980s, he said a good government had to take the pessimistic outlook but be prudent in tackling economic problems.

"You`ve got to think and plan for the worst-case scenario. When you`re in government you simply cannot gamble that the economy will be good next year or that foreign investment will return. In short, you`ve to be conservative and if things turn out better than planned then there`s a windfall," Pridiyathorn said.

He added that he was opposed to the idea of the government buying non-performing loans from privately-owned banks but encouraged the widening of the role of the state-owned Asset Management Corp (AMC), of which he is the chairman.

"We already have the national AMC, called for by some parties to speed up debt restructuring, but it has not been fully utilised," he complained, noting that the state-owned entity recently proposed to buy Siam City Bank but failed to win approval.

The corporation has a capital base of Bt10 billion, which means it can invest in assets up to 12 times that.

While Pridiyathorn is obviously concerned about the effect of the huge public debt on economic recovery, he is less worried about the corporate debt-restructuring process.

"Big corporations like Siam Cement Group and Charoen Pokphand Group have already restructured their debts. Thai Petrochemical Industry (TPI) is more like an isolated case," said the banker, adding that even the company`s ownership issue was manageable if the parties concerned did not confront each other.

Pridiyathorn added that Advanced Agro Plc, a core unit of the huge Soon Hau Seng Group, was also about to sign a debt-restructuring agreement, paving the way for restructuring group-wide debts.

"Basically, we should let the private sector restructure its own debts. The government should only intervene by easing certain rules and regulations. According to my previous experience, the private sector knows what`s best," he said.

By NOPHAKHUN LIMSAMARNPHUN,

JIWAMOL KANOKSILP and

JIRAPREEYA KEAWKUMNURDPONG

The Nation

LAST MODIFIED: Tuesday, 21-Nov-00

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Z.B. Land and Houses im Aufwind, aktuell heute + 4%, -F+1,5%

Land and Houses in strong comeback


DESPITE the continued slump in the Thai property market, Land and Houses Plc (LH) is making an impressive comeback and has posted a big improvement in earnings.

Merrill Lynch Phatra Securities Co Ltd (MLP) said in a recent report that it had upgraded the stock to buy.

However, the securities house said that LH was still trading below its fundamentals.

"We reiterate our buy rating on LH for both the intermediate and longer terms," MLP stated.

One of the country`s leading property developers, LH has shown a significant improvement in earnings, with results for the first nine months of the year totalling Bt145 million, or 78 per cent of MLP`s full-year projection.

The securities house estimated that the company would record a net profit of about Bt186.9 million for full-year operations, against a net loss of Bt636 million in 1999.

For the third quarter, LH`s earnings of Bt104 million showed a strong recovery against earnings of only Bt55 million in the previous quarter and a loss of Bt286 million in the corresponding quarter of 1999.

"Earnings beat our expectations owing to higher than expected gross margins," according to the report.

In the third quarter, LH set aside a Bt126-million allowance for the late-payment of accounts, that covered 60 per cent of the combined foreign exchange gain and accrued interest on US dollar loans of $27 million the company provided to its related companies in Indonesia.

MLP said that the company recorded a 16-per-cent increase in sales revenue year-on-year for the first nine months.

"Sales figures for the first nine months represented 78 per cent of our 2000 sales forecast, which implied an 8 per cent increase from 1999 for the whole year," the securities house added.

The company`s gross margins were also higher than MLP forecast. It noted that the third quarter was the fifth consecutive quarter to show an improvement.

"We are pleased to see a third quarter gross margin of 30.6 per cent, versus only 22.7 per cent in the third quarter of 1999 and 28.5 per cent in the second quarter of this year," MLP said. It added that the improvement pointed to a recovery in the market for detached housing.

Land and Houses` total debts, as of the third quarter, stood at Bt13.7 billion, almost flat from the previous quarter.

The Nation

LAST MODIFIED: Tuesday, 21-Nov-00 09:39:14 EST

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Zur Situation der Banken:


Thai banks` status `still not firm`


DESPITE the firmer capital-to-risk asset ratio among nine private banks and higher reserves, their status has not confirmed a stronger financial position for most banks, Thai Farmers Research Centre (TFRC) said in its latest study.

At the end of this year, all banks must set aside full provisions against possible loan loss. But TFRC said the provisions were based primarily on debt classification at a certain period of time and they were seen as expenses to be deducted from the operating profits or losses, which would eventually affect the capital status of banks.

"Basically, most banks will try to attain the minimum-provisioning requirement, so effects on capital will be limited by sizes of the provisions. Therefore, the current capital and provisioning status does not reflect the forward-looking approach to realise possible losses according to the market price movement, such as to realise 70 per cent losses from NPL sales," the research house noted.

In September, the average capital-to-risk asset ratio of nine private banks in Thailand - excluding Krung Thai Bank, Bangkok Metropolitan Bank, Siam City Bank and Bank Thai - stood at 11.5 per cent in September.

TFRC also noted that this was likely rise to 11.8 percent at year-end, if all banks could achieve full provisioned status under the BOT criteria, and if Bank of Asia and Thai Military Bank register successful recapitalisation of a combined amount of Bt11 billion.

Hefty NPLs have been incurred since the financial crisis, due to an imprudent extension of credit with insufficient collateral. Coupled with the economic slump this caused most commercial banks to realise huge losses from provisioning burdens and loan write-offs.

Most banks have since managed to maintain their capital status above the minimum requirement of the Bank of Thailand, although periodic fluctuations took place last year.

Nine private banks, excluding those the government took over, have so far achieved total provisions of Bt150 billion, or about 25 per cent of total NPLs, now estimated at Bt600 billion, after loan write-offs and debt restructuring.

The research house said actual losses of NPLs may go up to 70 per cent for sales of the former Thai Danu Bank, or even 75 per cent for sales of the suspended finance firms, which are much higher than the Thai private banks "acceptable" losses of 25 per cent.

"The above 70 per cent losses do not imply the end of the Thai banking system. On the contrary, most banks will have to hold those NPLs longer, keep on the restructuring process, and gradually realise losses, in order to avoid adverse effects on their capital status," the report said.

The Nation

LAST MODIFIED: Tuesday, 21-Nov-00 09:39:51 EST

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COMAPNY REPORTS:


SIAM CITY CEMENT (SCCC) has received proposals from Lanna Lignite`s shareholders to sell 1.39 million shares, or 3.98 per cent of the lignite company`s total shares, as of November 17.

Siam City Cement`s stake in Lanna Lignite now stands at 10.14 million shares or 28.97 per cent of the latter`s outstanding shares.

Siam Cement said in a filing to the Securities and Exchange Commission that shareholders of Lanna Lignite have a few days to reach a decision as the deadline of the tender offer expires this Friday.

Earlier, Capital Nomura Securities Plc (CNS), an independent advisor to the tender offer, recommended shareholders of Lanna Lignite not to sell shares to SCCC to avoid a conflict of interest in the future which might diminish the shareholders` interests.

CNS noted that SCCC tends to focus more on the cement business and that might lead to sales of Lanna Lignite`s stakes in other unrelated companies.


AYUDHYA INVESTMENT AND TRUST (Aitco) is investing Bt100 million in its wholly-owned securities arm, to subscribe to the latter`s capital increase shares.

In a filing to the Stock Exchange of Thailand, the finance company said that the company`s shareholders recently approved capital increase of Bt200 million.

Ten million shares would be paid up first and the payment for the shares would be made in December.

Aitco noted in the filing that the purchase would be executed only upon approval from the Bank of Thailand.


PREMIER ENTERPRISE Plc informed the stock exchange that the rehabilitation planner, Premier Planner Co Ltd, has completed the plan and submitted the plan to creditors on November 17.

The company, involved in distribution business, is undergoing rehabilitation under the Bankruptcy Court`s supervision.

The court appointed Premier Planner on June 12, 2000.


JASMINE INTERNATIONAL has set December 15, 2000 as the date for the exercise of its 284.3 million warrants.

Each warrant can be exercised for one share, at Bt5 apiece.

Jasmine is traded above the price.

The Nation

LAST MODIFIED: Tuesday, 21-Nov-00 09:39:35 EST

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TPI Denies Engineered Delays Contributed to Baht Woes

STAFF WRITER
Thai Petrochemical Industry (TPI) has rejected claims by bankers and analysts that delays to the debt restructuring process caused the baht to sink to 44.34 on Monday, the lowest in 32 months.

In a statement released yesterday, TPI pointed out that since it was ordered by the central bankruptcy court to enter debt rehabilitation on March 15, the baht has continued to depreciate from 37 to the dollar to its current level. The statement concluded that general economic conditions were to blame for the level of the baht.

The statement also noted that prior to the court order, a number of analysts made predictions that the Stock Exchange of Thailand (SET) would reach 500 after the rehabilitation order. However, said the statement, the opposite has occurred. The SET has continued to decline from the 400 level to 250 in October.

Chavalit Thanachanand, former Bank of Thailand (BOT) governor and now a senior banker at the Bank of Asia (BOA), warned that delays to TPI`s debt plan could impact "national security" and play a key role in further baht depreciation. He urged the government to act as mediator between the firm and its creditors before the next meeting on November 27.

The problem, Chavalit said, arose because TPI management failed to clarify the plan with its workers. He added that further delays will hurt the firm and sway investor confidence.

"Effective Planner`s debt plan does not include worker lay-offs, but should help revive TPI`s business. Khun Prachai should explain the facts to his employees. If the case ends as a forced bankruptcy, the victims will be TPI`s employees," he said.

Worker protests have forced TPI`s creditors to accommodate further delays. The creditors are trying to complete a debt-workout plan to end more than three years of negotiations over Thailand`s biggest corporate default.

Anthony Norman, Effective Planner`s managing director, warned that further delays to the approval and implementation of the plan would hamper TPI`s access to new working capital from creditors, forcing the company to cut production and lower operating cash flow.

"So Prachai buys two more weeks," said Norman, "and I have working capital problems that are two weeks more acute."



Aus Business Day Co.,Ltd. 22.11.00

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Wenn bei tpi alles nach Plan läuft, wird BBL profitieren und der Kurs wird überproportional steigen


BOT offers to mediate in TPI case


BANK of Thailand (BOT) governor MR Chatu Mongkol Sonakul said yesterday that the central bank is ready to act as a mediator in the dispute between Thai Petrochemical Industry Plc (TPI) and its creditors.

He said that the central bank decided to put forward its offer in order to settle the case as quickly as possible.

However, the company has yet to make any comment on the matter.

TPI and Effective Planners, appointed by the creditors to administrate the debt restructuring plan, yesterday jointly sought approval from the court`s official receiver to postpone the creditors` vote on the plan from November 27 to December 7.

Last week`s scheduled vote was postponed until November 27 amid rowdy protests by about 6,000 TPI workers in Bangkok. In a statement, Effective Planners said the adjournment was in the best interests of all parties concerned, namely TPI shareholders, creditors and employees.

"We acknowledge the seriousness of the security and related issues concerning diverse employee matters and are determined to work overtime with TPI`s senior management to find a solution that is in everyone`s best interests,`` said Anthony J Norman, managing director of Effective Planners.

TPI`s CEO and major shareholder, Prachai Leophairatana, said: "We believe that this two-week adjournment is a practical step to provide us with a fair and responsible opportunity to jointly address all employee concerns. I am determined to work closely with Norman and other relevant parties to ensure that calm is restored among TPI employees."

Meanwhile, creditors of Thai ABS, a subsidiary of TPI, representing 84 per cent of the total Bt9.6 billion debt, yesterday voted in favour of the company`s debt restructuring plan, said Norman.

The Nation

LAST MODIFIED: Wednesday, 22-Nov-00 09:58:03 EST

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und nochwas,für die, die nicht alle Quellen absurfen:Thai companies returning to SET
Nov 22
Bruce Cheesman in Bangkok, FINANCIEL REVIEW AUSTRALIA


After a three-year drought in new listings on the Stock Exchange of Thailand (SET), the bourse is expecting its third new stock in two months.

Regulators are particularly buoyed at the prospects of a listing for Cal-Comp Electronics (Thailand), following announcements by several electronics stocks of plans to delist. Cal-Comp received approval from the SEC to issue an IPO this month and is expected to begin trading by the end of the year.

Regulators are trying to encourage more companies, especially "new economy" stocks, to list in a bid to reverse a 40 per cent slump in the SET index since the beginning of the year.

The listing of power generator Ratchaburi this month led to a buying spree by investors, with the IPO being sold out in 17 minutes. Stocks on the first day of trading soared by more than 10 per cent.

Genco, a handler of hazardous waste and the first company to list in October since the economic crisis in 1997, did not fare quite so well, slumping on the first day of trading.

There is expected to be considerable interest in Cal-comp as electronics stocks have been a rarity on the SET, the only companies along with telco shares to buck the downward trend.

Electronics stocks such as Delta, Hana Microelectronics, KCE Electronics and KR Precision have been the favourites of foreign investors, posting third quarter growth in sales of more than 20 per cent.

Cal-Comp, a subsidiary of Taiwan`s Kinpo Electronics, produces electronics equipment and parts for foreign multi-nationals such as Hewlett Packard, Olivetti, Texas Instruments, Panasonic, Casio, and Citizen.

"There are very few Thai listed companies that can give such good exposure to blue-chip international customers, plus provide double-digit prospective growth, US dollar export earnings, and Board of Investment exemptions," said Seamico Securities in a report.

Cal-Comp is expected to issue 30 million shares at a price of around 30 baht per share, with the IPO slated for December 7 to 12. Last year, the company reported net profits of about Bt3.56 billion ($155 million) compared with net profits of Bt1.22 billion bath in 1998. The company has registered capital of Bt6.411 billion.

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Hi W: O ASIEN-Besucher, vor allem die ca. 350, die heute meinen thread angeklickt haben, erstmal Danke für die Resonanz, entschuldigen möchte ich mich dafür, daß ich nur engl. Beiträge hier poste -- das liegt aber in der Natur der Sache, leider sind die wichtigsten Börsennews in engl. Sprache. Übrigens meine ich das "waste and...." wörtlich, sodaß auch Beiträge abseits von Börsennotierungen :-) erscheinen werden -- sofern die Resonanz dies zuläßt!
Sollte der Zugriff gegen Null tendieren -- werde ich sowieso nicht krampfhaft versuchen,etwas aufrecht zu erhalten was möglicherweise von anderen als überflüssig eingestuft wird

your sincerly
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Auch dieser Typ hätte eine Mitwirkungsberechtigung in der zukünftigen Regierung, aber ich will T. S. nicht vorgreifen bei seiner Kabinettsbildung....
BBL`s Nimit hangs hat with NAP


NIMIT Nonthapantawart, the former chief economist of the country`s largest commercial bank, is taking advantage of a clause in Thailand`s new Constitution that allows unelected representatives to become Cabinet ministers.

The 57-year-old Nimit, who served Bangkok Bank (BBL) for 23 years, most recently as executive vice president, has been selected as a party-list candidate for the New Aspiration Party (NAP) in the general election.

Nimit said he had been happy with his role as the bank`s economic guru. But when an opportunity to enter politics came up, the challenge was too hard to resist.

It was a double bonus, since BBL had also launched its latest early-retirement programme the same week Nimit was officially selected as the number six party list candidate and chief economic advisor to the NAP.

Aside from the good timing of his departure from BBL, Nimit`s choice of where to hang his partisan hat appears to have been a wise one.

Had he chosen to join the Democrat Party, which already boasts several economic experts, he would never have secured such a high list ranking as sixth. With NAP Nimit will be recognised as the chief economist, replacing Surasak Nananukul, who is awaiting judgement from a United States court on his alleged connection to an oil scandal involving illegal trade with the Iraqis.

While Nimit`s move may have taken some market watchers by surprise, those who have been in politics for some time could see it coming.

Nimit has long been familiar with the top brass at the NAP, having quietly served on the economic advisory team at "Baan Phitsanulok" for Chavalit Yongchaiyudh`s administration.

"A lot of my friends had supported the NAP, including my old boss Amnuay Virawan," Nimit said. "I spoke with Gen Chavalit more than 20 times on economic issues. Our ideas are in line with each other."

Amnuay, another BBL veteran, was appointed finance minister in the Chavalit administration. Nimit also worked for the Productive Management Co, an advisory firm connected to the NAP.

Besides Nimit, Surasak Nananukul, Virabongsa Ramangkura, Vichai Punpocha and Kongkiat Opaswongkarn also contributed to the Chavalit administration`s advisory team.

Unlike the Chuan Leekpai administration, whose economic policy came mostly from the Finance Ministry, the Chavalit administration depended much more on advice from the "Baan Phitsanulok" team.

But one source said the advisory team did not play a very dominant role because economic figures from the Bank of Thailand were not released transparently, as they are now.

Nimit said he would be willing to work in the Opposition if the NAP did not emerge to form the next government. There has been speculation that the new coalition government will be a combination of the Thai Rak Thai Party, NAP and Chat Thai Party.

Nimit said he accepts that the Thai Rak Thai Party and NAP share common ideas on economic policy. "We look at the economic machine," he said. "We need to strengthen the economic base by feeding the tree at its bottom. Only then can we reap the flowers and leaves at the top," he said.

Nimit has proposed a personal tax exemption for those whose net income is ranked at the bottom and would normally be charged 5 per cent.

This group of taxpayers, he said, mostly earn only about Bt10,000 in monthly salary. Such a tax exemption is aimed at boosting the spending power of low-income earners who have no money left for saving.

Aside from boosting spending power, Nimit also supports the idea of creating labour-intensive work to increase employment.

As the chief economist of the NAP, Nimit said the party was in the "open economy" camp - not for extreme globalisation, or nationalism, he said, but something in the middle, and realistic.

As party-list candidate No 6, Nimit could potentially become a Cabinet member if the NAP is part of the next coalition administration.

BY JIWAMOL KANOKSILP

The Nation

LAST MODIFIED: Wednesday, 22-Nov-00 10:00:18 EST

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CURRENCY


DBS: Baht will recover to 40 per $
But will weaken to 50 in January


Darana Chudasri


Regardless of which parties form the next government, the baht will appreciate to 40 to the US dollar next year, according to DBS Thai Danu`s executives.

Economic reforms undertaken by the outgoing government would take effect in the latter half of 2001, supporting the currency, said Satian Tantanasarit, the bank`s senior vice-president.

"The perfect timing of economic recovery will be 2001, given that the government`s efforts to tackle risks in the system would take two years to bear fruit," he said of the reforms launched in 1998-99.

However, the currency would probably weaken in the short-term, he said, forecasting 48 to 50 baht to the dollar in January. Even so, this would be in line with other currencies in the region such as the South Korean won and Taiwanese dollar, given market worries over the countries concerned resolving problems in their financial systems, Mr Satian said.

In Thailand, economic recovery would improve the ability to repay private foreign debt, despite concern over heavy capital outflows for that purpose. Domestic interest rates were likely to remain unchanged over the next three to six months as low interest rates were a key tool in reducing non-performing loans, he said.

Pornsanong Tuchinda, the bank`s president, said that corporate restructuring would be an important issue for the next government, after ensuring continuing stability of the financial system. Although the outgoing government had crafted policies to help the productive sector, the economic recovery had not been broadly based, there were risks that restructured problem loans could turn non-performing again.


© Copyright The Post Publishing Public Co., Ltd. 2000
Last Modified: Thu, Nov 23, 2000

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Noch ein Artikel aus Businessday von heute:Fitch Affirms Thailand`s Rating, Long-Term Outlook Seen to Be Stable

Staff Writer
Fitch IBCA, the international rating agency, yesterday affirmed Thailand`s long-term foreign currency rating at "BBB -", saying Thailand`s rating outlook appeared stable.

"The investment grade rating is supported by ongoing large-scale reductions in Thailand`s external indebtedness, improvements in external liquidity and progress with institutional reform, which will ultimately strengthen the economy," Fitch said in a statement.

While political uncertainty and delays to the Thai Petrochemical Industry (TPI) debt restructuring vote has unnerved financial markets, which saw the baht plunge to a 32 month low, Fitch said: "Thailand has been going through a testing period this year as political uncertainty, regional financial market pressures and rising oil prices have dented a fragile economyÉ Steady progress has been made in corporate restructuring."

The agency added that Thai authorities have set in train important reforms - including financial sector liberalization, changes to bankruptcy laws, banking and accounting standards and to the financial supervisory and regulatory framework - which should strengthen the economy in the long term.

Fitch also said that while economic growth has been relatively slow and narrowly based, it has been accompanied by an impressive and sustained period of internal adjustments. A sustained current account surplus - estimated at 6 percent of GDP this year - has facilitated large scale external debt repayment by the private sector, resulting in sharply improving external solvency and liquidity.

While the credit rating agency remained positive, it also noted some problems. The country`s fiscal position has deteriorated sharply as a result of costs associated with the clean up of the banking sector, lower tax revenues and a counter-cyclical fiscal policy.

Fitch said while government debt remains relatively low at 20 percent of GDP, wider measures of public debt including liabilities of the Financial Institution Development Fund (FIDF) and the largely guaranteed debt of non-financial state enterprises are much higher, at around 55 percent of GDP.

"Nevertheless it is hard to see any serious threat to fiscal sustainability at this stage," Fitch said.

Concerning political uncertainty, Fitch said: "Any major reversal in the broad thrust of structural reforms after the election could have a bearing on the rating outlook. But important political reforms during the past three years should pave the way for greater democratic legitimacy and accountability in government in the long term.

[Sugar1]

Also, ich finde deinen Service hier ganz nett, damit erspare ich mir morgens
die Suche nach den wichtigen Tagesberichten in den Tageszeitungen Thailands. Weiter So.

[suade]

Das ist mal echter content. Danke und weiter so! Wenn sich einer beschwert weil er kein Englisch kann, dann muss er sich fragen lassen warum er sich überhaupt für ausländische Märkte interessiert!
Danke für die Mühe die Du Dir machst mit dem posten der Beiträge.

SUADE

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Aus der Nation von Freitag:

Thailand escaping creditor ranks


THAILAND is on track to eventually change its status in the international financial arena from a debtor nation to that of a creditor due to the gradually improving position of its net external assets, a recent study has shown.

If it can move into a surplus position with regard to these assets the country will enjoy a pay off in the form of greater baht stability and international security, the report by SCB Research Institute says.

According to SCB, Thailand`s net external assets are likely to show a smaller deficit each year, as the country`s foreign-currency position has been improving gradually since the 1997 crisis. As a result, the country`s financial status is potentially that of creditor in the world market.

Over the past several years, Thailand has been a debtor, as its net external assets have been in a constant deficit. Its net external assets sank to the lowest point in 1997, when the deficit stood at US$73.4 billion (Bt3.2 trillion).

A country`s net total external assets, which indicate whether it is a debtor or creditor, are its gross external assets, or official reserves plus banks` foreign assets, minus gross foreign debts.

"Generally, the status of a creditor country indicates the wealth of that country. A country with a net creditor status is one which releases more loans than it secures for itself, and whose net total foreign assets are on the plus side. In Asia, the countries which have such status include Japan and Taiwan," the research firm said.

Creditor countries primarily are those whose earnings from exporting goods and services exceed payments for imports of products and services, and whose net earnings are thus on the plus side. This money surplus is added to the official reserves.

SCB Research Institute forecasts that Thailand`s net external assets are likely to show a deficit of no more than $19.2 billion in 2002, down from $23.8 billion next year and $32.4 billion this year. The diminishing negative net external assets indicate that if Thailand maintains its current account surplus, it would acquire sufficient foreign currency from trade to make external debt repayments. The country would even gain a surplus to cushion official reserves for one year. The research company estimates Thailand`s gross external assets for this year, 2001 and 2002 at $49.6 billion, $48.8 billion and $46.4 billion, respectively, on the assumptions that the country`s current account surplus would be maintained; that private capital flows would grow steadily for both investment in securities and direct investment; and that the commercial banking system`s assets would remain relatively constant.

To be sure, if Thailand continues to depend heavily on foreign capital goods, its current account surplus will likely shrink and revert to a deficit in 2003. The country would in that case continue to depend on foreign capital and remain a debtor.

As foreign debt repayments proceed duly at an annual average of more than $10 billion for the next three years, Thailand`s total external debt in 2002 is likely to drop to about $65.6 billion.

The Nation

LAST MODIFIED: Thursday, 23-Nov-00 10:15:58 EST

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Das leidige Thema NPLs:




Several banks see a rise in NPLs


ALTHOUGH the overall level of non-performnig loans (NPLs) in the Thai financial system declined in October, problem loans at five banks rose due to their inability to handle the debt restructuring procedure.

Bangkok Bank (BBL), Bank of Ayudhya (BAY), Siam Commercial Bank (SCB), Thai Military Bank (TMB) and Standard Chartered Nakornthon Bank (SCNB) all recorded an increase in October from the previous month in both volume and proportion of NPLs to total loans.

BAY, TMB and SCNB, in particular, have had a gradual rise in NPLs for months.

Bank of Ayudhya`s NPLs in October were reported at Bt82.14 billion, or 25.27 per cent of total loans, up from the Bt80.23 billion, or 24.53 per cent, recorded for July.

Thai Military Banks` NPLs rose from Bt68.24 billion or 25.75 per cent of total loans in July to Bt72.07 billion or 26.92 per cent in October.

Standard Chartered Nakornthon Bank`s NPLs totalled Bt743.56 billion in October, up from Bt705.03 billion.

The rise in NPLs for some banks, despite a decline for the industry, showed up the ineffective debt restructuring at these institutions.

A higher proportion of problem loans at these three banks is a negative indicator of their performance as well as a sign that the burden of extra provisioning will ultimately require an injection of additional capital funds.

Bandid Nijthavorn, the Bank of Thailand (BOT)`s spokesman, said banks should analyse what factors contributed to the rise of their NPLs. The crucial issue that needed to be considered was the `macro view` of economic conditions versus the `micro view` of the individual firm`s NPLs slippage. Bandid did not identify which factors were causing the increase in NPLs.

"The larger amount of NPLs for some banks may not imply a rise for the whole system over the next several months," Bandid said.

However, higher NPLs had so far brought about a contraction of these banks` capital.

Bank of Ayudhya`s capital in October dropped to Bt37.79 billion, from Bt37.84 billion in July, while Thai Military Bank recorded less capital in October at Bt35.63 billion, a down from Bt35.71 billion. Standard Chartered Nakornthon Bank`s capital stood unchanged at Bt5.5 billion.

So far, BAY and TMB have avoided asking the government for financial aid from its August 14 financial restructuring programme. These banks have instead raised capital by issuing hybrid securities, so-called Stapled Limited Interest Preferred Shares (SLIPS) or Capital Augmented Preferred Shares (CAPs), which can be considered the bank`s first tier capital.

BAY and TMB have launched Bt12.99 billion and Bt9.96 billion in hybrid securities, respectively. TMB was unable to avoid entering the programme by matching its hybrid loans with government funding.

The rise in bad loans at SCNB, where a majority stake was acquired by Standard Chartered Bank, could at some point result in a high burden for the Thai government should it compensate the losses of what is essentially a foreign-owned bank.

Despite a rise in NPLs, these banks have not ceased new lending. BAY`s outstanding loans in October stood at Bt320.20 billion, a rise from Bt317.92 billion in July. TMB`s outstanding loans in October totalled Bt255.68 billion, up from Bt253.43 billion in July. And SCNB also posted higher loans in October, at Bt52.76 billion, up from Bt49.21 billion in July.

However, the lower accrued interest the three banks have attracted during recent months should provide some comfort, because the lower the accrued interest, the higher the banks` income.

BAY`s accrued interest in October slipped to Bt5.07 billion, down from Bt5.18 billion July. TMB also recorded a lower accrued interest of Bt5.96 billion in October, from Bt6.03 billion in July. SCNB, however, showed a slight increase of accrued interest in October of Bt1.96 billion from Bt1.95 billion in July.

BY ANOMA SRISUKKASEM

The Nation

LAST MODIFIED: Thursday, 23-Nov

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Also Freitag sind auch weitere Artikel in der Nation wirklich lesenswert, wer die Zeit hat -- bitte lesen. Vorab mit den beiden vorigen erst mal das Wichtigere:

COMPANY REPORTS:


GOODYEAR (THAILAND)`s board of directors has approved an interim dividend payment of Bt20 per share, totalling Bt148 million.

The company said the share-register book to reserve the right for dividends will be closed on December 6 this year and dividends will be payable on December 8.

Meanwhile, the board has also accepted the resignation of secretary to the audit committee Mike J Martens, effective immediately. Byung Koo Han has been appointed to replace Martens.


THAI BRITISH SECURITY PRINTING`s board of directors has appointed Kuasak Laorsuwan as director and audit committee member, effective from Wednesday.


UNION PLASTIC has named Noparut Panyapas as director. The company did not say when his tenure would commence.


FURUKAWA METAL (THAILAND) is to invest Bt800 million to increase its production capacity by an additional 6,000 tonnes per year. After the expansion project is completed, the company`s production capacity will rise from 16,000 to 22,000 tonnes a year.

To facilitate the expansion project, the company has appointed factory manager Takao Tanabe as the expansion project manager. Soichi Fujimura will succeed Tanabe. Junichi Uyama, a technical adviser, has been assigned as general manager of the engineering department, succeeding Fujimura.


TELECOMASIA CORP (TA) has quashed a rumour that it had planned to raise fresh capital to accommodate a share swap deal between TA and Wireless Communication Services Co Ltd (WCS). TA said it has no plans to boost its capital.

In fact, Charoen Pokphand Group will sell a 40-per-cent stake in Bangkok Inter Teletech Co, the parent of WCS, to buy back shares held by TA`s creditors under the debt-swap programme. TA said the company`s independent directors would appoint financial advisers to consider the proposal of the CP Group as soon as possible.

If the proposal is approved by its board, TA it will inform the Stock Exchange of Thailand (SET) and sign a memorandum with CP Group outlining the manner in which negotiations over the share swap should be conducted.


CENTRAL PATTANA has reported additional information regarding the sale of Food Novelties Co, which deals in soft pretzel bakery and beverage goods under the "Auntie Anne`s" brand.

The company operates 11 branches at Central Plaza Ladproa, Maboonkrong, Central Plaza Ratchada-Rama3, Central Chidlom, Central City Bangna, Central Plaza Pinkloa, Robinson Ratchada, Lotus Ratchada, Future Park Rangsit, Central Festival Pattaya and Central Airport Plaza Chiang Mai. Food Novelties, once a subsidiary of CNP, was sold to Central Plaza Hotel, one of CNP`s associate firms.

LAST MODIFIED: Thursday, 23-Nov-00 10:14:43 EST

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Wird in Thailand etwa so die Wahl gewonnen?? TIT!!


Thai Rak Thai `caught buying voter support`


AN Australian Broadcasting Corporation (ABC) report alleges it filmed instances of blatant vote-buying by Thai Rak Thai canvassers in a northern village last month.

An ABC news crew said they had witnessed villagers having their "allegiance" bought for Bt100 cash. They had also been shown plastic bags containing a Thai Rak Thai T-shirt and a Bt100 note that had allegedly been distributed to villagers.

The ABC crew said they had visited villages in Thoung Yai, Pitsanulok province, on October 22 after a tip-off that votes were openly being bought there.

The allegations were made in a special report titled "Thailand - The Price of Democracy" on the ABC`s weekly "Foreign Correspondent" television programme broadcast in Australia on Tuesday night.

The report, presented by the ABC`s Bangkok-based correspondent Geoff Thompson, was scheduled to be repeated on Australian television today.

The report began with an on-air interview with a young villager who was asked: "How much money did they promise you?" He replies: "Bt100 . . . whoever attends [the rally] gets paid, they [the canvassers] said."

The report said the conversation with the young villager was filmed after the ABC crew arrived at a Thai Rak Thai rally attended by several hundred villagers.

"In exchange for their ID cards, villagers were offered the money to sign up for a new political party, Thai Rak Thai, run by Thailand`s richest man, Thaksin Shinawatra," the presenter said. "It illustrates just how deeply ingrained direct vote buying has become in Thailand - turn up for a political rally and get a free T-shirt, there`s a hundred baht note thrown in as a sweetener."

The presenter continues: "The system seems so pervasive that even the current prime minister accepts that the election result will be bought."

The crew interviewed Prime Minister Chuan Leekpai, who said: "I know how hard it is to fight against money. I tell my people that it would take a miracle for us to win."

The presenter said the news director at iTV had been removed after the Thai Rak Thai leader had acquired the majority shareholding in the channel following a series exposing corruption.

Mirroring the Western perception of Thai politics, the programme claimed the system in Thailand was so tainted that few believed the political process would throw up a clean enough government to steer the country through its economic crisis.

Thompson told The Nation yesterday that Thaksin seemed taken aback when asked later to comment on the vote-buying claims.

"He said `Oh! No, I don`t think this can be so`," Thompson said. "Thaksin said he would investigate the allegation because, if it was true, the party candidates involved would be dropped."

Thompson said when he visited Thoung Yai on October 22 with a camera crew and interpreter, he had seen people wearing Thai Rak Thai party shirts collecting ID cards from villagers. A large portrait of Thaksin was on display in the village.

"I was told [by villagers] that their ID cards would be taken away by the canvassers after they had signed up with the party. The villagers could get them back later from the village chief, together with Bt100," Thompson said.

"But when they saw us filming, the cards were not taken away and the villagers seemed confused about what was going on.

"We attempted to interview villagers who we had seen handing in their ID cards but they said they had been told to say nothing.

"Then this young guy came up and said he didn`t care as `this sort of thing always goes on`," Thompson said. "We had him on film saying the villagers were handed a card with a number on it when they handed in their identification cards. The cards could be retrieved later from the village head, with the Bt100."

Thompson said the number on the young villager`s card was 302, indicating that the "party allegiance" of at least 300 villagers had been bought.

The Australian journalist said he understood that undercover police had attended rallies of various parties in the province and that they had reported cases of vote-buying to the Election Commission.

Thompson said that on the same day the ABC crew was shown three plastic bags, each containing a white, blue and red Thai Rak Thai T-shirt and a Bt100 note. In two bags, the notes were clearly visible from the outside. In the third bag, the Bt100 note was folded and sealed in an envelope, hidden inside the T-shirt.

The newsman had been told the bags were being distributed to villagers in other areas.

"When we arrived at the village, there seemed to be no attempt at subtlety by the canvassers . . . they were quite open about what they were doing and seemed totally unconcerned," he said. "But they quickly changed their attitude when they noticed us. "We gathered from what we were told by the villagers that most of them knew they were being paid off to sign up with the party and show their allegiance in the upcoming election. A lot of the villagers said they just didn`t care because `it always goes on, everybody does it`."

Thompson said he had not contacted the Election Commission to check whether they had received complaints about the vote-buying and if any action had been taken.

Thai Rak Thai spokesman Suranan Vejjajiva said the EC will take action if the ABC`s story is confirmed.

The Nation

LAST MODIFIED: Thursday, 23-Nov-00 12:53:37 EST

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Meinungen aus dem SEAMICO-Board zur Entwicklung des SET:

[Thursday, November 23, 2000 3:22:12 PM]
Subject : How low is the SET going?
Message : What is the consensus for the next week or so. How low will the SET go? Any ideas most welcome. My own guess is it will not go below 280.

Name/E-mail : salamander Reply





[Thursday, November 23, 2000 4:23:30 PM]
Message : I think the SET will be stablizing in 280-285 for a few days. Then, it could upraise strongly to 320-330 by the fourth week of December 2000

Name / E-mail : [e-mail]





[Friday, November 24, 2000 12:38:27 AM]
Message : I do hope your predictions come true, Puwadol, mostly you are rigth, about 75% for my rating. I want to open the account with you now, Coul you take care of me???? give me a call - 01-8330059, call me mr. A I have my limited for stock trading around 3 million bht in overall, and now so sick of my broker`s analyst, both in terms of fundamental, and technical.

Name / E-mail : [e-mail]

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Meines Erachtens hat sich das Kursniveau des SET gestern und heute gut behauptet.

Finance - News Asian Markets





Thursday, November 23 7:45 PM SGT

Foreigners Sold Net THB45.1 Mln In Thai Stocks Thursday
BANGKOK (Dow Jones)--Foreign investors were net sellers of 45.1 million baht ($1=THB43.872) worth of Thai stocks Thursday out of a total of THB2.08 billion traded, the Stock Exchange of Thailand, or SET, said.
Figures are in baht; some are rounded; percentages are calculated from unrounded numbers:


Bought % Total Sold % Total
Foreign 331.8 mln 15.96 376.9 mln 18.13
Local Retail 1,696.4 mln 81.61 1,579.5 mln 75.98
Institutions 50.6 mln 2.43 122.4 mln 5.89



Note: Foreign activity represents transactions by both institutions and individuals, local retail activity is by Thai nationals only, and institutional activity is by domestic institutions, SET member-brokers and sub-brokers.

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asia pacific
--------------------------------------------------------------------------------

Thai central bank governor lays out reform agenda
By Amy Kazmin in Bangkok
Published: November 23 2000 18:13GMT | Last Updated: November 24 2000 07:51GMT



Thailand`s central bank governor, Chatumongkol Sonakul, on Thursday called for increased government spending and corporate tax cuts as he laid out a broad-ranging reform agenda which he said would enable Thailand to enjoy steady, stable growth.

"Increased expenditure and tax reduction of moderate amounts will not destabilise the economy," said Mr Chatumongkol, who is rumoured to be a possible candidate for finance minister if the opposition Thai Rak Thai party comes to power in January`s parliamentary elections. "The important thing is how to make the expenditure useful without much leakage."

Thailand`s economy is projected to grow by about 5 per cent this year, driven in large part by booming exports. Yet growth is expected to slow next year, as the US economy slows down and Thai exports lose steam. Thai domestic demand remains weak and, in an economy still plagued by overcapacity, there is little incentive for new investment.

Companies are still using their resources to pay off their high levels of debt, leading to a contraction in credit.

Thailand`s Democrat-led ruling coalition has pursued a policy of fiscal expansion, which has helped propel growth. But with the public debt to gross domestic product level at more than 52 per cent, it has planned to contain government spending to prevent further increases in public debt levels.

However, with interest rates low and liquidity abundant, Mr Chatumongkol said mild expansionary policies would not significantly increase the debt-to-GDP ratio but would rather boost GDP growth.

The central bank governor also said that a new government would have to "bite the bullet" and provide financial assistance or guarantees to small and medium-sized enterprises, which account for a high proportion of Thailand`s defaulting borrowers.

Such enterprises - normally family-owned and with accounting standards far short of those now demanded by risk-averse banks - are finding it tough to reach restructuring deals or obtain new working capital to carry on their operations. "This is the area where there has been the least progress," he said. "The problem is too big for commercial banks to handle alone. Government assistance is needed."

However, Mr Chatumongkol said he was still weighing the pros and cons of a national asset management company, which the Thai Rak Thai party has proposed establishing to buy up outstanding bad loans from commercial banks.

He also called for a new parliament to adopt swiftly laws to strengthen the autonomy of the central bank, which now answers to the Finance Ministry, and also to facilitate the creation of a credit bureau. Thai law currently protects borrowers` privacy, making it tough for banks to share information about a borrower`s credit history. Thai companies have also lobbied hard in the past to prevent reforms that make it easier to share credit data.

Mr Chatumongkol called for "limited term contracts for civil servants" to ensure better performance of government officials. "One should plan on an easy change of personnel to get results," he said.

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Company reports

- Siam Pulp and Paper reported consolidated profits of 685.5m bt for Q3, vs losses of 448.2m bt for Q3 last year. 9M consolidated profits were 2.2bn bt, vs profits of 240.5m bt for 9M last year.

- Siam Agro Industry Pineapple and Others reported profits of 25.3m bt for Q3, vs profits of 25.6m bt for Q3 last year. 9M profits were 65.7m bt, vs profits of 169.8m bt for 9M last year.

- Siam United Services reported consolidated losses of 37.8m bt for Q3, vs losses of 27.8m bt for Q3 last year. 9M losses were 180.6m bt, vs losses of 82.3m bt for 9M last year.

- S. Khonkaen Food Industry reported consolidated losses of 3.4m bt for Q3, vs losses of 12m bt for Q3 last year. 9M consolidated losses were 14.9m bt, vs losses of 9.7m bt for 9M last year.

- Southern Concrete Pile reported losses of 7.5m bt for Q3, vs losses of 17.2m bt for Q3 last year. 9M losses were 51.2m bt, vs losses of 79m bt for 9M last year.

- S.P. Suzuki reported consolidated profits of 24m bt for Q3, vs profits of 27.2m bt for Q3 last year. 9M consolidated profits were 89.5m bt, vs profits of 49.1m bt for 9M last year.

- Srithai Food and Beverage reported consolidated losses of 106m bt for Q3, vs profits of 4.3m bt for Q3 last year. 9M losses were 289.2m bt, vs profits of 8m bt for 9M last year.

- Thai Factory Development reported profits of 8m bt for Q3, vs losses of 49.1m bt for Q3 last year. 9M losses were 35.5m bt, vs losses of 72m bt for 9M last year.

- Thai Film Industries reported consolidated losses of 189.5m bt for Q3, vs losses of 409.5m bt for Q3 last year. 9M losses were 380.7m bt, vs losses of 835.3m bt for 9M last year.

- Thai-German Products reported consolidated losses of 112.1m bt for Q3, vs losses of 461m bt for Q3 last year. 9M consolidated profits were 1.1bn bt, vs losses of 1.7bn bt for 9M last year.

- Thai Insurance reported losses of 2.8m bt for Q3, vs profits of 5.4m bt for Q3 last year. 9M losses were 193,000 bt, compared with profits of 26.6m bt for 9M last year.

- Thailand Carpet Manufacturing reported losses of 24,000 bt for Q3, vs losses of 29.4m bt for Q3 last year. 9M profits were 8.1m bt, vs profits of 2.4m bt for 9M last year.

- Thai Metal Drum Manufacturing reported consolidated profits of 6.7m bt for Q3, vs losses of 22.8m bt for Q3 last year. 9M consolidated profits were 32.1m bt, vs losses of 69.8m bt for 9M last year.

- Thai Modern Plastic Industry reported losses of 11.6m bt for Q3, vs losses of 40.7m bt for Q3 last year. 9M losses were 306m bt, vs losses of 125m bt for 9M last year.

- Thai Nam Plastic reported profits of 8.7m bt for Q3, vs losses of 20.2m bt for Q3 last year. 9M profits were 29.6m bt, compared with losses of 48.5m bt for 9M last year.

- Thai Pineapple reported consolidated profits of 17.6m bt for Q3, vs losses of 80m bt for Q3 last year. 9M profits were 126.1m bt, vs 120.7m bt for 9M last year.

- Thaipoly Acrylic reported profits of 18m bt for Q3, vs profits of 30.4m bt for Q3 last year. 9M profits were 33.2m bt, vs profits of 35.9m bt for 9M last year.

- Thai Storage Battery reported profits of 20.1m bt for Q3, vs profits of 24.4m bt for Q3 last year. 9M profits were 66.6m bt, vs profits of 77.3m bt for 9M last year.

- Thai Theparos Food Products reported profits of 58.6m bt for Q3, vs profits of 48.2m bt for Q3 last year. 9M profits were 68.7m bt, vs profits of 183m bt for 9M last year.

- Thai Wacoal reported consolidated profits of 94m bt for Q3, vs profits of 66.5m bt for Q3 last year. 9M profits were 273.6m bt, vs profits of 184.6m bt for 9M last year.

- ThaiWire Products reported losses of 25.4m bt for Q3, vs profits of 44.7m bt for Q3 last year. 9M losses were 83.5m bt, vs profits of 121.1m bt for 9M last year.

- Thantawan Industry reported profits of 12m bt for Q3, vs profits of 11.6m bt for Q3 last year. 9M profits were 30m bt, vs profits of 37.6m bt for 9M last year.

- Tongkah Harbour reported consolidated losses of 3.5m bt for Q3, vs losses of 5m bt for Q3 last year. 9M losses were 4.4m bt, vs losses of 28.6m bt for 9M last year.

- Trang Seafood Products reported losses of 20.4m bt for Q3, vs losses of 59.7m bt for Q3 last year. 9M profits were 36.9m bt, vs losses of 69.7m bt for 9M last year.

- Unique Gas and Petrochemicals reported consolidated profits of 62.5m bt for Q3, vs profits of 54.4m bt in Q3 last year. 9M profits were 146m bt, compared with profits of 117.7m bt for 9M last year.

- Union Footwear reported consolidated losses of 4.5m bt for Q3, vs profits of 20.6m bt for Q3 last year. 9M consolidated profits were 11m bt, vs profits of 67.4m bt for 9M last year.

© Copyright The Post Publishing Public Co., Ltd. 2000
Last Modified: Fri, Nov 24, 2000

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Global
Equity

24 November 2000
www.ubswarburg.com/researchweb
In addition to the
UBS Warburg web site

Semiconductor update: The flow of negative news continues

The flow of negative news continues

The latest semiconductor data showed that October total semiconductor equipment
book to bill ratio of 1.17x remained unchanged from September. Total orders grew
5% sequentially. However backend bookings declined 7% below September’s
number as shipments grew 2%, reducing test/assembly (chip packaging and
testing: Hana’s business) book to bill ratio to 0.81x.This marks the second
sequential month test/assembly book to bill has dropped below 1x. Front end (chip
manufacturer) orders grew 8% as shipment grew 6%, increasing front-end book to
bill to 1.29x.
There are some concerns about the state of the test/assembly sector. There have
been only 2 out of 6 instances in the 1991-2000 period where sub 1x test/assembly
book to bill ratio did not indicate a general downturn.
Our US semiconductor analyst notes that the back end, with its shorter delivery
time, tends to lead the front end. Back end equipment vendors have indicated that
they may experience difficulties over the next two quarters. If history repeats
itself, the front end may come down. Already we are beginning to see indications
of potential weakness in the wafer fabrication business.
What do these figures tell us? IC packagers such as Hana Microelectronics
(HANA.BK, Reduce, Bt117) who assembles chips and test them (we call them
back-end sector) are not investing in new machinery, i.e. they are slashing their
capex due to the uncertainty of future demand.
Indeed this is in line with what Hana told an analyst meeting last week that its IC
packaging unit is facing price pressure. We reiterate our Reduce recommendation
on Hana as we believe profit growth will slow considerably in 2001 to 9%
compared with 69% in 2000.
Youssef Abboud

[e-mail]



UBSW Strong Buy recommendations

Company Reuters code Price (Bt)
Banks and Finance
Bangkok Bank BBLf.BK 39.8
Building
Siam City Cement SCCC.BK 110.0
Consumer
BEC World BEC.BK 224.0
Thai Union Frozen Products TUF.BK 49.0
Property
Land & Houses LHf.BK 16.8
Source: UBSW


UBSW Sell recommendations

Company Reuters code Price (Bt)
Banks and Finance
Bank of Asia BOA.BK 6.9
Bank of Ayudhya BAYf.BK 5.5
Ind Fin Corp of Thailand IFCT.BK 5.9
Krung Thai Bank KTBf.BK 11.5
Thai Military Bk TMBf.BK 5.8
Consumer
Big C Supercenter BIGC.BK 15.3
Global Cyclicals
Thai Petrochem Ind TPI.BK 3.8
Telecoms
Thai T & T TTNT.BK 4.5
Source: UBSW

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COMPANY REPORTS:


THAI MODERN PLASTIC INDUSTRY reported a lower net loss for its third-quarter operations of Bt11.60 million, or a 71.48 per cent improvement over the same period last year.

The improvement was a result of no interest expenses in the quarter and a Bt28.18-million decline in operating and administration costs.


MURAMOTO ELECTRON (THAILAND) posted a net profit of Bt346.46 million in full-year results to September 30, up significantly from a profit of Bt296.40 million during the same period last year.

In addition, the company`s board of directors approved a pay-out dividend of Bt6 per share.

The dividend will be paid out on February 23, and shareholders will have to register for the right to receive their bonus on February 5.


THAI ENGINE MANUFACTURING recorded a consolidated net loss of Bt362.79 million in the third quarter of this year, compared to a Bt297.22-million loss over the same period last year.

For the first nine months of this year, TEM said in a filing to the Stock Exchange of Thailand, its net loss rose to Bt3.56 billion, compared to Bt988.26 million the year before.

However, despite the release of the company`s financial results, the SET posted an "SP" (suspension) over its securities until the company offered more details of its results.

The company is in the process of further examining its figures and waiting for the Central Bankruptcy Court to consider and approve its rehabilitation plan.


THAI AIRWAYS INTERNATIONAL has announced that its board of directors has approved the appointment of Srisook Chandrangsu as the board`s new chairman. Srisook took up the position on Thursday. He replaces Mahidol Chantrangkurn, who recently resigned from the post to be a party-list candidate for the Democrat Party in the upcoming election.


SAHA PATHANA INTER-HOLDING`s board of directors has decided to sell its entire 21-per-cent stake in NTT Communications (Thailand) Co Ltd to NTT Communications Corporation Ltd for Bt7.02 million.

SAHA PATHANAPIBUL`s board of directors has agreed to buy three plots of land from Intanin Development Co Ltd costing Bt44 million, the company said in a filing to the Stock Exchange of Thailand.

One land plot is in Chiang Mai and other two in Chon Buri.


CENTRAL PAPER INDUSTRY has announced that it has completed its negotiations on its debt-restructuring plan with Siam City Bank. Both parties will formally enter into a debt-restructuring agreement soon, the company said.

SIAM COMMERCIAL BANK has bought 52.93 million new shares in iTV Plc at Bt8.77 apiece, costing Bt464.19 million, as part of its debt-restructuring plan via a debt-to-equity conversion.

The bank reported that after the share offering the registered capital of the financially ailing TV station had been raised from Bt387.50 million to Bt1.39 billion. The bank`s move keeps its stake in iTV at 43.09 per cent.

NATURAL PARK`s majority creditors, who are owed 68.71 per cent of the company`s total debt, have approved a rehabilitation plan.

The creditors met on Thursday, and the Central Bankruptcy Court is expected to give a final ruling on the plan on December 8.


NATION MULTIMEDIA GROUP`s management committee yesterday agreed to purchase 7,113.92 square metres of office space from Nation Properties Co Ltd, in a deal worth Bt244.25 million based on market prices.

Part of the office space will be reserved for future business expansion while the rest will be rented or sold.


EKACHART FINANCE has taken a 41-per-cent stake in Plan Estate Co Ltd and a 23.34-per-cent stake in Siam Media and Communication Telecommunication Co Ltd through the conversion to equity of partial loans it had made to the companies.

The conversion was completed on Wednesday. Ekachart did not give a figure for the amount of loans converted.


THAI WIRE PRODUCT`s shareholders have approved a planned capital reduction followed by an increase, drawn up to accommodate the debt-restructuring agreement the company earlier signed with unsecured creditors.

A shareholders` meeting on Thursday approved a capital reduction from Bt280 million to Bt220 million through the cancellation of six million unallocated shares.

Then the capital will be increased by Bt230 million through the issuance of 23 million new shares to lift the company`s registered capital to Bt450 million.

The new shares will be reserved for the unsecured creditors who can exercise their right to acquire the shares. The new shares will be allocated according to the size of the loan. The capital raised will be used to reduce the company`s debt to a particular creditor.

LAST MODIFIED: Friday, 24-Nov-00 09:39:19 EST

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GENERAL ELECTION


Economic teams to discuss policy at SET
Thai Rak Thai and Democrats to speak


Nuntawan Polkwamdee


The full economic teams of the Democrat and Thai Rak Thai parties will present their economic policies on the same day and same stage for the first time on Wednesday.

However, their presentations will be at different times. Organised by the Association of Securities Companies, the event will be held at the Stock Exchange of Thailand`s conference room.

Thai Rak Thai will explain its policies in the morning session. Its team will be led by Thaksin Shinawatra and comprise Jaturon Chaisaeng, Somkid Jatusipitak, Vichai Punpocha, Adisai Bhodaramik, Suchart Jaovisith and Suvarn Valaisathien.

In the afternoon, the Democrats` presentation will be launched by Prime Minister Chuan Leekpai backed by Supachai Panitchpakdi, Tarrin Nimmanahaeminda, Ekamol Khiriwat, Abhisit Vejjajiva and Pisit Leeahtam.

The Association of Securities Companies has submitted a comprehensive list of questions for both parties to answer, including:- What are your party`s top three priority economic targets?- If your party forms the government, will you review the present government`s trade liberalisation policy?- In your view, what is the proper exchange rate for the baht ?- What measures are you going to implement to revitalise production?- How can you manage the public debts to lessen the burdens on the public?- How can your party restore investors` confidence in the stock market?- Will your party review the liberalisation policy in the financial sector?

Quelle: Post 25.11.00

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Vichai quits Dresdner Bank post to assist Thai Rak Thai

Vichai Punpocha, has resigned from Dresdner Bank in order to play a prominent role in Thai Rak Thai`s economic team.

Mr Vichai tendered his resignation last week and flew to Thailand from Germany.

As country manager of the bank`s operations in Thailand, he commented frequently on the government`s economic policies, annoying top executives at Dresdner`s German headquarters. The bank`s policy is to stay out of domestic politics. Last year Mr Vichai was moved from his position and restationed at the bank`s headquarters.

A Thai Rak Thai source said party leader Thaksin Shinawatra was impressed by Mr Vichai`s comments and had invited him to join the party.

Although Mr Vichai is not included in the party`s list of candidates, Mr Thaksin has said that his economic team would include outsiders.

The party source said that although Mr Vichai was recognised for his bnking experience, there were two reasons why he was unlikely to take any post in the government if Thai Rak Thai won the election: First, he was a latecomer and second, he held German rather than Thai nationality.

Mr Thaksin and his executive team of Somkid Jatusipitak, Surakiart Sathirathai, Pitk Indaravidhayanand and Sudarat Keyuraphan yesterday paid a courtesy call on Thai Farmers Bank president Banthoon Lamsam to explain the party`s policies.

Mr Thaksin said he planned to call on Bangkok Bank president Chartsiri Sophonpanich next week.

Quelle: Post 25.11.00

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ECONOMY


Growth forecast to be 4.5%
High oil prices pose threat to expansion



Thailand`s economy is likely to expand by 4.5% next year, about the same rate as this year, despite the anticipated slowdown in global trade, according to the Asian Development Bank`s latest report.

Rising interest rates in the United States and uncertainties over the timing and outcome of the Thai general election were main reasons for the depreciation of baht and substantial losses on the stock market this year, it said.

Investors were still confident about the underlying economy, which had seen remakable improvements with the decline and lengthening maturity of foreign-currency debts. The current account was in surplus and the reserves provided a high coverage ratio against foreign-currency debt, it said.

Asian countries, though expected to have as much as US$22 billion in capital outflows this year, would be cushioned against new problems, it said.

High oil prices, which were expected to persist into the first quarter of next year, would be an important risk to Thailand economic growth.

The slow progress of debt restructuring and financial reform would be a drag on the country`s economic growth, but the government was likely to achieve its target, the report said. Low inflation and interest rates contributed to good economic fundamentals.

"Recovery is expected to consolidate this year among Asian countries, excepted South Korea which will see a higher growth rate in the next year," the report said.

Quelle: Post 25.11.00

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Job losses for 31 staff as commissions fall

Merrill Lynch Phatra Securities said yesterday that 31 of its employees or 10% of its staff would lose their jobs.

Most of the job cuts were in the private client department, said Michael Unsworth, co-chief executive.

"The retail business has had a sharp drop in commissions by nearly 50%, and the company wants to bring its capacity down to justify volume of business," he said.

While volume had dropped, the firm`s market share had risen, particularly in the institutional sector, he said.

The focus now would be more on institutional clients and high net-worth private clients. "The Merrill Lynch type of products are not suited for speculative day trading but more of a long-term investment."Departing staff would be compensated above the legal minimum, he said.

Quelle: Post 25.11.00

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THAI PETROCHEMICAL INDUSTRY


Monday creditors` meeting must go on
Delay possible only if all parties agree


Kochakorn Boonlai and Busrin Treerapongpichit


A creditors` meeting on Monday to vote on the rehabilitation plan of Thai Petrochemical Industry Plc must go ahead, though it could be adjourned if all parties agree, legal officials said yesterday.

The Legal Execution Department rejected a request by Effective Planners Co, which is overseeing the TPI plan, to adjourn the meeting until Dec 6.

The reasons cited by Effective Planners did not comply with the Bankruptcy Law, said Bandid Ratchatanand, a deputy permanent secretary at the Justice Ministry and caretaker director-general of the department.

The planner had requested the adjournment for security reasons, and it wanted to settle differences with TPI chief executive officer Prachai Leophairatana.

TPI owes more than $3.2 billion to dozens of local and foreign creditors, and successful resolution of its debts is seen as critical to restoring investor confidence in Thailand.

Creditors of TPI, the largest private debtor in Thailand, had been scheduled to vote on the rehabilitation plan on Nov 16.

However, about 3,000 employees of TPI staged violent protests against the plan in front of the Queen Sirikit National Convention Centre, the venue of the meeting.

Employees fear job losses would result if elements of the plan, including the sale of some assets, were carried out.

The protests resulted in a postponement of the meeting to Nov 20, and a further postponement until Nov 27 was later granted.

As employees had vowed to rally again on Monday to protest against the plan, the planner had tried to reach an agreement with Mr Prachai about how matters could proceed without risking safety and security of participants.

The two parties had agreed on Wednesday of this week to postpone the meeting by 14 days but due to different interpretations, confusion arose over the new meeting date.

Mr Bandid said that even if the creditors, the planner and the debtor all agreed to adjourn Monday`s meeting, the Legal Execution Department still preferred that the plan be voted on by the end of this year.

Meanwhile, the Metropolitan Police Bureau has held a meeting of top officers to prepare a contingency plan to cope with the threatened rally by up to 5,000 TPI employees on Monday.

Pol Maj-Gen Pasna Jaksurak, the deputy commissioner, said that about 500 anti-riot police would be deployed to control the situation on Monday.

"I would like to ask the TPI employees not to be violent or destroy public assets; otherwise they will definitely face legal action," he said.

In a related development, Rayong Tank Terminal Co, a TPI subsidiary, won a reprieve as its rehabilitation plan, drafted by Effective Planners, was rejected by its creditors yesterday.

The reason was that Samsung Construction, which controls more than 70% of the company`s 1.26 billion baht in debt, opposed the plan.

Samsung is a business ally of TPI.

However, at the creditors` meeting of Thai Aromatic Co, another subsidiary of TPI, creditors accounting for 98.97% of its 4.227-billion-baht debt, voted to approve the plan.

Welcoming the outcome of the Rayong Tank Terminal vote, Mr Prachai said it would have significant implications for the parent company.

"There might subsequently be some changes in the TPI plan," he said.

Mr Prachai`s victory in the Rayong Tank Terminal case could make the TPI debt restructuring case more complex.

The complexity is likely to increase when employee representatives take the case to the Labour Court, after failing to settle on an agreement at a meeting with Effective Planners yesterday.

The employees submitted a 13-point list of demands to Effective Planners, which is currently running TPI. The demands range from claims for bonuses, pay increases and monthly allowances, to severance pay for early retirement.

Pattana Torsirisook, a representative of the employees, said the meeting had failed because Effective Planners had assigned only low-ranking executives to attend.

Ist meiner Meinung nach auch wichtig für die Kursentwicklung von BBL

Quelle: Post 25.11.00

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GOVT DEBT


B35bn due in bond interest

The government is likely to pay 35 billion baht interest on its bonds in the current fiscal year. The decline from 38.3 billion baht in the previous fiscal year reflects lower interest rates in the financial market.

The bonds were issued to refinance as long-term debt the short-term borrowings of the Financial Institutions Development Fund and the Finance Ministry`s support for financial institutions.

Last month, the development fund paid total interest of 6.8 billion baht. Some 498.9 billion baht borrowed by the fund was refinanced through bond issues, while debt totalling 69.4 billion baht was incurred by the ministry to support capital increases by financial institutions.

Sommai Phasee, deputy permanent secretary of finance, said that the ministry would ensure that short-term loans-those over five years-matched the goals under the social and economic development plan.

Quelle: Post 25.11.00

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second crisis is not likely, says institute


THE possibility of Thailand facing another economic crisis is remote, considering the country`s improved economic fundamentals and economic stability, an SCB Research Institute report says.

However, the institute said this forecast was based on the assumption the US economic bubble would not burst, which would sharply contract US gross national product.

The United States remains the chief export market for countries in Asia. An economic contraction there would hamper the recovery of Asian economies and affect Thai exports to the US, plus countries in Asia.

Concerns about a second economic crisis have grown since June last year, when the US Federal Reserve started to hike its short-term interest rates.

For Thailand, the effects of the US rate hikes are reflected in the declining stock price index, the weakened baht, and financial institutions` non-performing loans (NPLs), which have remained at a high level. In addition, there are concerns about the Thai government`s mounting public debt.

However, on the basis of economic fundamentals of the real sector, the research institute`s report said the Thai economy had the potential to recover continuously this year. Exports had improved considerably and were forecast to expand by 19.4 per cent this year, up steeply from 7.6 per cent last year, thanks to the recovery of the economies in the Asian region.

Thailand`s share of Asian exports, including Japan, was as high as 46 per cent last year. Economic recovery in Asian countries has helped to steadily boost Thai exports.

Meanwhile, private investment has also gradually improved gradually. During the crisis, private investment fell sharply after earlier "over-investment". The fall came partly because demand for goods and services was sluggish after the crisis.

Private investment contracted most sharply in the third quarter of 1998. It began to expand from the second quarter of last year, having passed the lowest point and started to rise again in line with the economic recovery. However, the current level of private investment remains much lower than before the crisis, and it is expected to take several years to attain the former level, as the economic system still has a lot of excess capacity.

In the first nine months of this year, the average production capacity-utilisation rate was only 55.7 per cent. Nonetheless, it was unlikely private investment would decrease again, the report said.

One of the major factors that contributed to Thailand`s economic recovery last year was the government`s implementation of expansionary monetary and fiscal policies which resulted in an improvement in liquidity and helped stimulate gross domestic spending and private consumption. The government has continued the policy this year.

Despite six US interest-rate hikes, Thailand`s domestic interest rates have declined. This reflects abundant baht liquidity. Higher foreign interest rates should, thus, not greatly affect domestic interest rates.

Meanwhile, Thailand`s economy is stable, the report said. Inflation is low, though increasing. The average inflation rate in the first 10 months of this year was 1.5 per cent.

At the same time, Thailand`s external debt has continued to drop. From US$112.4 billion (Bt4.89 trillion) at the end of June 1997, it had been reduced to $85.6 billion by the end of August this year.

The ratio of short-term debt to long-term debt, which was 42:58, changed to 19:81 over the same period, and the ratio of private debt to public debt, which was 85:15, became 59:41. It was evident, the report said, Thailand`s external debt structure had undergone fundamental changes. "Nevertheless, though the risk of Thailand facing another round of economic and financial crisis is less, Thailand should not be complacent," the research firm said. "The country must speed up … its economic and financial structuring and reforms, because under the economic system, which is fast changing, adjustments to modern technology are essential.

The Nation

LAST MODIFIED: Friday, 24-Nov-00 09:39:53 EST

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No one at the station


BANKTHAI received no bids for 12 million Bangkok Mass Transit System Plc (BTSC) shares put up for auction yesterday, prompting the bank to put the sale on hold.

The auction was stopped within 30 minutes of its 1pm start at the bank`s headquarters because no bidders presented themselves, Pracha Jaidee, director of auctioneer Prachatham Co Ltd, said afterwards.

The shares placed under the hammer were offered in two batches, one consisting of two million shares and the other of 10 million shares.

"A new round will be held but it will depend on opportunity and venue availability," Pracha said.

The Skytrain shares had been pledged as collateral for loans with the now defunct Union Asia Finance (UAF), which was later absorbed into Krungthai Thanakit Plc before being incorporated into BankThai.

BTSC chief executive officer Keeree Kanjanapas, also a major shareholder, at that time secured Bt100 million in principal from UAF and Thai Summit Finance Co Ltd, another obsolete finance house. The debt has increased to Bt180 million including unpaid interest.

Unlike BTSC`s previous share auctions, BankThai`s sale failed to attract bidders because the shares put on sale represented less than 1 per cent of the Skytrain operator`s registered Bt14 billion in capital, an analyst said.

Earlier, two auction rounds for other BTSC shares pledged as loan collateral at local and foreign banks led to a dispute between Keeree and CS First Boston, as the winning bid scooped up 41 per cent of BTSC.

However, the two parties later settled their differences.

Meanwhile, BTSC is investing more money on a 9-kilometre extension from On Nut to Samrong and another 2km extension from Saphan Taksin to Charoen Nakhon Road.

The 9km extension will be built first at an expected cost of Bt20 billion. The construction should be completed in 18 months, the company said.

BTSC is queuing up to list on the main bourse, where its initial public offering is expected to be launched early next year after a long delay.

BY SIRIPORN CHANJINDAMANEE

The Nation

LAST MODIFIED: Friday, 24-Nov-00 09:40:02 EST

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Internet tuk tuk in Bangkok

A Western tourist surfs the Web on one of the two notebook computers mounted on `The World`s Internet Tuk-Tuk` while it is parked at Samanluang. The special tuk-tuk is also equipped with a digital camera, photos from which can be sent by e-mail anywhere in the world.

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South Korea`s quick fix now stalling


KOREA`S quick-fix financial reform has been rewarded by foreign investors, while Thailand`s market-based approach has been shunned, new research by Standard Chartered Bank says.

Korea implemented a quick-fix solution, throwing money at the problem, bailing out the financial and corporate sectors and pushing through the restructuring of the chaebols.

Thailand had a more market-based approach with some banks setting up their own private asset-management companies (AMCs). Corporations were forced to restructure their debt profile on a case-by-case basis while the government focused on creating a legislative structure consistent with a more appropriate relationship between the corporate and financial sectors.

"Korea was, until recently, rewarded by foreign investors for its efforts, as the economy outperformed people`s expectations in a dramatic fashion. Meanwhile Thailand, against the backdrop of a slower pace of recovery and reform, was shunned by investors," the bank said.

An evaluation of the Korean solution`s optimality is clearly under way, however. The government is struggling to pass a bank bail-out package through parliament. Meanwhile the nature of the Korean economy, previously seen as a great asset in the regional competition for US dollars, is now becoming the country`s greatest liability.

In the midst of the crisis, the concentrated nature of the corporate sector structure, together with Kim Dae-jung`s landslide election victory, allowed the authorities to accelerate the reform process by focusing their efforts on just a few companies.

Now that the restructuring issue has resurfaced, it is clear that the chaebols have significant power in fighting reforms, especially as the president loses support for such measures in the face of economic strength.

Both Daewoo and Hyundai have been in the headlines recently. Daewoo Motors was forced to file for receivership after General Motors pulled out of an attempt to acquire the subsidiary.

The final straw was the management`s failure to persuade the unions of the need for drastic restructuring involving job loses. However, even now the unions may succeed in stopping the company going into court receivership. This suggests another bail-out in the making.

The same is true with the Hyundai Group, which released restructuring plans this week. While well received by creditors, Hyundai executives and unions are watching Daewoo developments.

Meanwhile Korea`s investment credentials` are being undermined by the international troubles of technology stocks. In the US, long-time sector stalwarts such as IBM, Microsoft, Nortel, Intel and Dell are all trading well below their highs. However, exposure to technology stocks may be a long-term positive for Korea.

Korea`s reliance on oil has also caused damage. However, this is expected to prove a temporary problem for Korea. In response to a global economic slow-down, oil prices are likely to fall significantly later in 2001.

All this leaves Korea`s government in a difficult position. It realises that the mind set of the chaebols needs to change to avoid similar problems in future, but it also has a weak bargaining position in the negotiations with both the companies and the unions.

Despite Thailnd`s strategy having foregone a large amount of potential foreign investment in the past three years, it may prove better in the long run.

However, Thailand is has its own difficulties. The Thai Petrochemical Industry restructuring agreement was put back again this week in response to union and management protests. It is now scheduled to take place on December 6.

This suggests that more work needs to be done in Thailand before it reaps the rewards of its reform programme.

The Nation

LAST MODIFIED: Friday, 24-Nov-00 09:39:38 EST

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Also in den thailändischen Boards wird auch rumgefetzt:

Subject : Rumour....again!!!!!
Message : I heard somebody on the street said that TA will increase capital via XR 1:1 at 13 Baht per share . I think it`s possible since they need huge fund to buy WCS and establish net work . Does anybody hear anything???

Name/E-mail : Archie Reply





[Wednesday, November 22, 2000 9:51:47 PM]
Message : It is being reported in many thai stock website, Archie. The most seller of TA-F today is AST, Anyway, I do not have this stock at the moment. Any view from Seamico?????

Name / E-mail : [e-mail]





[Wednesday, November 22, 2000 11:35:50 PM]
Message : Expect the stock to drop to around 17-18bt in the near term. The rumors are 1:2 and 1:1 at 12-13bt

Name / E-mail : boonchai





[Thursday, November 23, 2000 10:46:17 AM]
Message : TA made an announcement on Reuters that it has no plans to increase its capital. Given there strong US connections etc I gotta believe them. Sounds like there is a lot of mis-information being spread to drive price down. Think we are going to see a lot more of this as irresponsible marketing officers do anything to pump volumes and business.

Name / E-mail : telcofreak





[Thursday, November 23, 2000 2:45:23 PM]
Message : Dont blame everything on the MO`s. In this instance, it came from big wigs in corporate TH. Anyway, TA is looking very attractive at current prices. I expect a rebound on this counter by next week. Buy now whilst the going is good and cheap.

Name / E-mail : Salamander





[Thursday, November 23, 2000 4:55:23 PM]
Message : if you read their statement carefully, you will notice that they write "it has CURRENTLY no plans". that means they won`t increase capital today, but later isn`t now, so a statement like this doesn`t really mean anything.remember BAY. after a similar rumour they issued a similar statement and about a month later they had their capital increase approved. if a company issues a staement like ta did today, it means that there will be a capital increase for sure in the near future, otherwise they will say something like " we rule out a capital increase for at least untill ...". the sense of such a statement is to give a chance for theirs cronies, drivers, maids etc to make a quick baht, nothing more read between the lines, guys

Name / E-mail : bert





[Thursday, November 23, 2000 7:52:19 PM]
Message : We should all watch TA for the next while, as there`s going to be plenty of upside to this counter FY 2001. Khun Puwadol, at what price would you buy in given XR @ 1:1 , 13 bt.??

Name / E-mail : [e-mail]





[Thursday, November 23, 2000 11:21:03 PM]
Message : I don`t believe TA is another BAY. For a start it has Verizon (ex- Ball Atlantic) as a major shareholder and, from what I hear, it appears very informative and transparant to analysts.

Name / E-mail : telcofreak





[Friday, November 24, 2000 12:45:48 AM]
Message : I totally agree with BERT, Today i just speculat Ta-f at 22 Bht/ 30,000 shares, i will sell tomorrow when TA-f stepping up higher because of better sentiment of retail investors. will buy back below 20 bht.

Name / E-mail : [e-mail]





[Friday, November 24, 2000 10:42:32 AM]
Message : i havn`t said that ta is another bay, i just only wanted to give an example for the "flexibility" of public announcement made on the set.

Name / E-mail : bert





[Friday, November 24, 2000 10:51:58 AM]
Message : I for one will buy low p/e stocks with earnings. Not trade that junk, TA. Day traders are junk traders here. Go to the garbage bin. Plenty of junk there.

Name / E-mail : Manu





[Friday, November 24, 2000 11:04:55 AM]
Message :

Name / E-mail : Man on the moon





[Friday, November 24, 2000 11:10:26 AM]
Message : That is the stupid rumour, who believes is so stupid, no need to call cash

Name / E-mail : [e-mail]





[Friday, November 24, 2000 11:24:16 AM]
Message : But Manu, if we go to the garbage bin,,,all we will find are thaistocks and its very closeted group of pseudonyms

Name / E-mail : Boonchai





[Friday, November 24, 2000 1:15:00 PM]
Message : there are many different ways to make or lose money at any stock market. there are no reasons for anybody to be arrogant or look down at people who are trying to day the same thing: making money at the stock market. PR upset a lot of people because he`s been preeching for many years the same old sermon: MY WAY IS THE ONLY LEGATIMATE way. if we would realize here that we`re all sitting in the same boat, then we wouldn`t have to scold each- other and PR could lead a qieter and less public life, too. therefore my appeal is: INVEST AND LET INVEST and TRADE AND LET TRADE and share your ideas on an equal basis, without being arrogant or abusive. have a nice weekend

Name / E-mail : bert





[Friday, November 24, 2000 4:18:33 PM]
Message : bert for PM !!! where do I vote

Name / E-mail : chuan





[Friday, November 24, 2000 5:31:20 PM]
Message : Totally agree Bert. We shoudl all be allowed to make and lose money our own way. You hit the nail on the head. No one likes to have an "I am right and every one else is stupid" appoched drummed in to them. Every one, I think, appreciates PR`s views on this site but it would be useful and better for him if he also listened to others, Bert, the Diplomat, you have my vote too. Best summary of the PR biters situation yet.

Name / E-mail : Anon





[Saturday, November 25, 2000 7:54:23 AM]
Message : You are all a bunch of trading junkies...and when a comment is posted against this, you just bring up this PR guy again. Who cares. What is the matter with you all here. Did you ever hear about investing for long term gain? You blast anybody who makes non-trading comments or critical comments regarding the hiddend risks of trading on the SET. A bunch of jack asses are reigning this pit. and so will loose most seasoned investment people.

Name / E-mail : Manu





[Saturday, November 25, 2000 7:56:42 AM]
Message : I remember the traders last time the SET went to 230, in Oct of `98. Most traders took profits and looked good for a while. But you lost your positions. Then the SET went to 500. Long investors made the most. Are you junkies going to make the same mistake now?

Name / E-mail : Manu





[Saturday, November 25, 2000 12:04:50 PM]
Message : that means everybody who doesn`t do exactly the same you do and doesn`t think the same as you do is JUNK? i never knew that longterm investors use such abusive language, have such narrow minded views and such little respect for people not agreeing with them.

Name / E-mail : bert





[Saturday, November 25, 2000 12:47:52 PM]
Message : The ber seems to be democratic father by saying invest and let invest, where the fu ck this come from? don`t try to ratinalise yourself unless you are one of the dog in xxxxxxx`s family, i will ask K, samak to kill such unwanted dogs hanging around silom lately, just shut up your ass ok?

Name / E-mail : Al





[Saturday, November 25, 2000 12:51:58 PM]
Message : Al, Manu others....well out of order here! Frequent traders , trading junkies we maybe. It`s just because all this market warrants is short term trading plays. When the wind changes,holding forlonger periods....like 10-20 weeks is what many of us do. Don`t underestimate the retail punters` ability to make a tidy profit on the SET.

Name / E-mail : hoonthai

Quelle:Seamico

[BodyG]

Finance - News Asian Markets


Friday, November 24 11:57 PM SGT

EXCLUSIVE: Thai Deputy PM Sees Baht Weakness As Temporary
By Phisanu Phromchanya
Of Dow Jones Newswires


BANGKOK (Dow Jones)--Thai Deputy Prime Minister Supachai Panitchpakdi, on Friday, described the recent weakness in the baht, which hit a 32-month low of 44.44 baht to the U.S. dollar early this week, as only temporary.

Supachai told Dow Jones Newswires the Thai currency`s fundamentals aren`t bad because the country`s current account and trade balance will remain in surplus at least through next year.

The dollar finished in Asian trade Friday well off the week`s high at THB43.78 due to offshore demand for the Thai currency to cover short positions. Also, Bank of Thailand controls on baht flows from onshore led to a liquidity squeeze in offshore foreign exchange swap markets.

Part of the reason for the dollar`s rise since July from around THB39 to THB40 has been private sector debt repayment, Supachai said.

Corporations paid down foreign debt in expectation of baht depreciation, and their activity contributed to the currency`s weakness, he said.

Thai private sector foreign debt dropped by $451 million in August to $50.2 billion, according to Bank of Thailand data released Friday.

Some research houses are forecasting a fall in the baht to THB47 or THB48 to the dollar, but others believe foreign investment will pick up following formation of a new government after general elections Jan. 6. Meanwhile, the pace of foreign debt repayment continues to fall due to a decline in the both the total stock of private-sector debt and the short-term component of about $15 billion.

Supachai sides with the latter view.

"Some people think the baht will fall to THB45 (to the dollar) or further, but I think the baht shouldn`t go that far," he said.

The baht will eventually begin to strengthen again, he said, but he provided no time frame.

Asked about comments he made earlier in the month indicating the baht`s fundamental value is in a range of THB39 to THB41 to the dollar, Supachai said such estimations could change in line with the values of other currencies.

The dollar has risen against all regional currencies in the last few weeks.



Slower Thai, Global Growth Ahead



Supachai said Thai gross domestic product growth has slowed in the second half from the 5.9% year-on-year pace set in the first half, mostly because the three-fold rise in oil prices over the last two years is hurting consumer spending.

He said he expects GDP growth in 2000 of about 5%, but added that growth will continue to slow if oil prices remain high.

Global growth is also expected to decline next year, reducing demand for Thai exports.

Thailand should expedite the process of linking itself with the regional economy, in order to limit the impact of slower growth in other regions, Supachai said.

Members of the Association of Southeast Asian Nations decided in meetings in Singapore this week to turn all of their annual meetings into formal events, to give decisions made more weight, he said. Previously, formal summits were held every three years, and annual meetings in the interim were treated as informal gatherings.

[BodyG]

Sorry mal in eigener Sache:
1.mal Danke an Sugar1 und duade für die statements.

-Ich hatte mir gedacht beim Lesen der Threads von winny und max roland, daß im Grunde schon ein besseres Niveau als normalerweise bei w: o erreicht wurde.
-Mein Anliegen ist einzig darin begründet( wie von watcher, long, mroland, dentist und natürlich winny cash nicht zu vergessen) Background zu bieten.
-Sollte der Zugriff unter -- einhundert pro Tag -- abfallen werde ich den Thread nicht mehr weiter aufrechterhalten.

Ich will mit meinen Postings niemand beeinflussen, jeder sollte sich seine eigene Meinung bilden. Wer hier gern andere thaispezifische(außer SET)Quellen aufgeführt haben möchte -- meldet Euch, ich werd sie natürlich publizieren.

PS: Außer über ca. 200 Zugriffen täglich, wäre ich auch über ein wenig mehr Resonanz(Anregungen) dankbar.

Aber letztendlich zählen die Zugriffe :-)

[BodyG]

Thaksin and Chuan in SEC policy duel


PRIME Minister Chuan Leekpai and his challenger Thai Rak Thai Party leader Thaksin Shinawatra will give back-to-back presentations of their policies for capital-market development at the Stock Exchange next Wednesday.

The event has been sponsored by the Stock Exchange of Thailand, the Association of Securities Companies, the Listed Companies Association, the Association of Investment Management Companies, the Thai Investors Association and the Thai Bond Dealing Centre.

Thaksin and his top economic lieutenants will make their presentation in the morning session. Backing the Thai Rak Thai leader will be Chaturon Chaisang, Dr Somkid Jatusripitak, Vichai Punpocha, Adisai Photaramik, Suchart Chaovisit and Dr Suvarn Valaisathien.

Chuan will speak in the afternoon. Backing the Democrat leader will be Dr Supachai Panitchpakdi, Tarrin Nimmanahaeminda, Pisit Lee-ahtam, Ekamol Khiriwat and Abhisit Vejjajiva.

Yesterday, Thaksin met Banthoon Lamsam, president of Thai Farmers Bank, at the bank`s headquarters as part of his attempt to garner support from the financial community in the run-up to the election. On Monday, he is scheduled to meet senior management at Bangkok Bank.

Senior party members Sudarat Keyuraphand, Dr Surakiart Sathirathai, Suraphand Vejjajiva, Dr Suvarn Valaisathien, Pitak Indravithayanond and Suchart Chaovisit accompanied Thaksin on his visit to Thai Farmers Bank.

Thaksin said he and his team had a useful discussion with Banthoon, who had broad experience in banking and economic matters. "We got some suggestions for tackling economic problems from Banthoon," he added. "As a top executive of a major bank, he is in a position to see those issues clearly.

"These meetings will help us tackle the problems of the country more effectively. We`ll assess the situation one month after taking over the administration."

Banthoon told the Thai Rak Thai team that tackling the problems of the financial sector was only part of the solution, adding that the most critical issue for the country was the sluggishness of the manufacturing sector and the wider economy.

Manufacturing had not yet recovered, which also hurt the banking sector, Banthoon told the senior party officials.

"At present, the Thai banks have enough capital to support their lending. But they`re still reluctant to lend their money because they are afraid of the risks associated with economic weakness. If the government can address the problems in the manufacturing sector, the banks can function normally," he said.

Banthoon also urged any new administration to strengthen all facets of Thai life, from the political and economic side to society in general. He added that it was the government`s duty to "strengthen" society and facilitate genuine economic recovery.

"We really want the new government to create discipline in society and play by the rules of the game. There must be no favours. If someone commits a crime they must be punished," Banthoon said.

"Some may think that discipline is an abstract thing but it is not. If the government can foster discipline then society will prosper."

Banthoon reportedly asked Thaksin whether he was able to control all his party members, given their diverse backgrounds. Thaksin assured the TFB president that he brought unity to the party, citing Thai Rak Thai`s success in fielding 400 MP candidates and 100 party-list contenders.

It is still not certain whether Bangkok Bank president Chartsiri Sophonpanich will be able to attend the meeting of senior bank officials and Thaksin and his team on Monday.

BY ANOMA SRISUKKASEM

The Nation

LAST MODIFIED: Friday, 24-Nov-00

[Frakt@l]

Hallo BodyG,

ich finde deine Idee prima, hier jede Menge Hintergrundinfos zu Thailand
zu posten. Das erspart vielen eine zeitaufwendige Suche.

Gruß Frakt@l

[BodyG]

GENERAL ELECTION


Clampdown on poll fraud leaves parties cautious
Countless queries over what is illegal


Post Reporters


The Election Law Amendment Bill which gives the Election Commission wider powers to deal with poll fraud, is making political parties and candidates tread very carefully.

The commission is being swamped with enquiries about what constitutes illegal campaigning.

Many parties are not sure whether providing transportation costs to people attending rallies, distributing meals and attending weddings and funeral rites in their constituencies is against the election law.

But no detailed clarifications have been forthcoming.

Commissioner Yuwarat Kamolvej would only give a broad interpretation of the election law regarding poll cheats.

A group of 300 candidates earlier sought answers from Mr Yuwarat, who simply warned that handing out food and gifts like cassettes and videotapes of campaign speeches to voters could result in their disqualification.

Candidates have also been warned against throwing parties or distributing New Year presents.

Expressing his disagreement, Saravut Silpa-archa, the son of Chart Thai leader Banharn Silpa-archa, said throwing parties and giving gifts was the natural thing to do at New Year and should not be construed as vote buying.

But Mr Yuwarat laughed and said: "This is the law [on election violations] you all have drafted."Under Article 85/1 of the Election Law Amendment Bill, the commission has the right to disqualify cheats, who would not be allowed to contest any election for one year, while article 101/1 is aimed at preventing candidates from being wrongly accused by their rivals.

Those found making false accusations could have their election rights revoked from five to 20 years.

Little wonder parties are jittery.

Many have set up consultant centres to provide legal advice on the election law.

Thawil Paison, a member of the Democrats` election co-ordinating centre, said:"The commission should clarify its rules on poll fraud. Without a clear explanation, political parties may try to find fault with one another.

"Some parties are sending their men to videotape functions of rival candidates."He said many candidates were confused with the commission`s strict rules as the five commissioners gave different views.

He cited the case of a candidate being told by Mr Yuwarat that distribution of calendars during campaigning was against the election law.

However, the same candidate was told the opposite by other commissioners.

"We believe election panels in each province may have different interpretations regarding election violations. We have told our candidates to report to our centre if they are not treated fairly by the provincial election commissions.

"The centre will gather evidence and information which will be forwarded to the central election authority," Mr Thawil said.

Sudarat Keyuraphan, director of Thai Rak Thai` election co-ordinating committee in Bangkok, said the party was strictly abiding by the election law, and the party`s 37 constituencies in Bangkok were being manned by lawyers to provide legal advice to candidates.

The party has also hired accountants to monitor candidates` campaign spending.

The party has also made a list of its canvassers in Bangkok to prevent them from being framed by rivals, Mrs Sudarat said, adding the list would be submitted to the Election Commission.

Thai Rak Thai adviser Sanoh Thienthong said he was confused about the commission`s strict rules and different interpretations.

"Before the rules were enforced, I regularly held kathin ceremonies for more than 100 temples a year. I have held such religious activities for over 10 years. Now I am not sure whether I can do it or not.

"The rules bar candidates from attending funeral rites and wedding parties. Election commissioners have given different views on election violations. I am confused," Mr Sanoh said.

Pinit Sitthiho, deputy spokesman of Seritham, said the party has asked its candidates to submit lists of their canvassers to the Election Commission, provincial election panels and police to prevent possible political attacks by rivals.

"I will call a meeting of my 2,000 canvassers in my constituency.

"I will ask them to sign their names to the list together with copies of their identity cards which will be submitted to the Election Commission and the provincial panel," Mr Pinit said.

Provincial election committees are also having a headache.

Niran Khamsemanan, chairman of the Chiang Mai election panel, said he was spending all his time answering questions from candidates regarding election violations.

Complaints about vote buying began pouring into his office even before the royal decree setting the election date was announced.

He said several parties had taken part in the Loy Krathong festival, and were now wondering if they had violated election laws.

"Many fraud cases are expected. Each party is monitoring the activities of its rivals.

"Local people are also providing information on election violations to the authorities.

"Goods distributed among locals by candidates have been collected for use as evidence," Mr Niran said.


© Copyright The Post Publishing Public Co., Ltd. 2000
Last Modified: Sun, Nov 26, 2000

[BodyG]

Thaksin Shinawatra identifies Bangkok`s ballot-paper thieves


THAI Rak Thai leader Thaksin Shinawatra says he knows how to deal with the politicians who are said to have stolen ballot papers.

Reports said yesterday that unidentified politicians had acquired ballots from an Election Commission printing house and intended to use them to cheat in the January 6 polls.

Election commissioners said they planned secret markings on the ballot papers as security against cheating at polling stations.

Thaksin claimed he knew the identities of the politicians responsible. He said he would not make their identities public, but would reveal them if asked to by the election commissioners.

Commenting on the upcoming election, the first in Thailand under the new Constitution, he said the outcome might not live up to the political reform intended by the charter.

Thaksin added that it might take a few elections before reforms could succeed.

He also said it was too early to conclude that the next ruling coalition would be between the Thai Rak Thai, Chat Thai and New Aspiration (NAP)parties.

Poll results have shown his Thai Rak Thai Party more popular with Bangkok residents than the Democrats. Thaksin attributed this to his policies being more in line with the aspirations of the city`s inhabitants.

Meanwhile NAP leader Chavalit Yongchaiyudh said yesterday that the proposed Thai Rak Thai, Chat Thai and NAP ruling coalition would be an acceptable idea after the election.

Election Commissioner Kothom Ariya said yesterday that advance balloting would be held on December 29 and 30 and that voter registration should be complete by December 8.

Venues for registering in Bangkok include convenience-store chain 7-eleven.

The Nation

LAST MODIFIED: Saturday, 25-Nov-00 12:01:34 EST

[BodyG]

Die Sonntagsstory oder waste auf thai:

Highway Robbery

Editor;

On a recent visit from my home in Pattaya to Foodland on the evening of November 18 I was forced off Sukhumvit shoulder on the highway while riding my motorbike by a very aggressive Highway Police vehicle (new 4-door sedan). The officer rolled down his power window as I was recovering from the roadside hazards and he asked me for my driving license (by the way there were two Thai girls in front of me with no lights or helmets). I showed the good officer my license and asked him what traffic law I had broken (being an officer myself for 30 years). He said no problem, nothing wrong but you must pay me 1,000 baht or go to jail. I objected and said, “I have done nothing wrong and don’t have 1,000 baht.”

The young officer then replied, “Ok, Ok, just give me 500 and you can go.” Very confused and wanting to get the situation over with I agreed and the officer and I looked through my wallet for the money. Unfortunately, I only had 300 baht. So the good officer said, “Ok, Ok, 300 and you go away ‘pie’!”

I paid him the money which he put in his pocket and solved the immediate problem. The officer wrote nothing down and offered no receipt. As he drove off in a cloud of dust I wrote down the license plate number of the teenage professional officer’s car.

I then went to the tourist police office and reported my robbery. These officers were extremely professional, helpful and summoned the highway police inspector from a very distant headquarters. The tourist police officer in charge was as professional as any that I also worked with in America for the last 30 years.

I explained the incident in detail on the their report and was assisted and comforted while in their custody.

Eventually, I was accompanied by two police officers to the local highway police unit on Sukhumvit where a very ‘sorry’ police commander in pajamas refunded my money in a very obscure manner; again with no receipt, dismissing the incident as a ‘misunderstanding’.

The ‘offender’ (me) was then returned to tourist police headquarters and released on his own recognizance. Before leaving the police office, I donated the returned 300 baht to the police charity box inside and left presumably to further my criminal pursuits.

This “lawbreaker” plans to issue an advisory to the American Embassy for those new victims (visitors) to Thailand and plans to return to the regular robbers, ‘baht bus drivers’, as they are cheaper.

I am a longtime senior citizen visitor and part-time resident to Thailand living on an extremely small military disability pension, and am a member of the Pattaya Sports Club.

G.E. Schlotter (USA citizen)

Quelle: PattayaMail No47

[BodyG]

Academic predicts Thaksin win


THE next general election will spell an end to the much-derided Chuan Leekpai era and usher in the Thai Rak Thai Party (TRT), led by Thaksin Shinawatra, academic Thirayuth Boonmee predicted yesterday.

However, he added that the change in administration would not offer a real alternative, noting that the TRT had been formed by "businesslike" arrangements with factions from other parties.

Prime Minister Chuan and his Democrat Party will be "punished" by voters in the January 6 polls, Thirayuth told a press conference at Thammasat University, where he is a sociology lecturer.

He added that the prime minister had created many enemies amongst academics and the media and said that he had also alienated the public with his failure to solve national problems and his refusal to accept criticism. Thirayuth said that these failures would lead to a dramatic reduction in the Democats` popularity at the polls and see the Thai Rak Thai Party, under the leadership of tycoon-turned-politician Thaksin Shinawatra, forming the next government.

Thirayuth added that TRT was "three times" as likely to lead the next coalition government as Chuan`s Democrats.

He cautioned, however, that Thaksin`s party did not offer a real alternative as it had been formed out of mergers with factions from the New Aspiration, Social Action and Solidarity parties. The "merger" strategy could give the TRT an advantage over its rivals in the short term, but its extension will prevent efforts towards effective political reform, Thirayuth said.

The commentator warned that the next administration was likely to face volatile economic problems that could lead to another "financial meltdown". Regardless of which party wins the election, the next government will be hard pressed to solve the country`s economic crisis in the short term, Thirayuth said.

He said that in the general election TRT was likely to win between 130 and 140 House seats from the constituencies and about 30 seats from the party-list system.

The Democrats, meanwhile, are likely to win between 115 and 125 seats in all, between 90 and 100 seats from constituencies and some 25 from the party-list system, he added.

Thaksin`s party will get its biggest support from voters in the North and Northeast, where a large number of incumbent MPs are running under the TRT banner, whilst the Democrats will suffer reduced support in all regions except the South, which is the party`s traditional stronghold, Thirayuth said.

Medium-sized parties such as Chat Thai, Chat Pattana and New Aspiration are likely to win between 50 and 55 seats each, Thirayuth predicted.

Of the smaller parties, Seritham will win between 20 and 25 seats, Rassadorn no more than 10 and Prachakorn Thai about five, he added.

The predictions are based on information gathered after the House dissolution earlier this month from media publications and public-opinion polls, as well as interviews with political canvassers and observers.

Meanwhile Chaturon Chaisaeng, a TRT party-list candidate, reacted to Thirayuth`s predictions yesterday by disputing his view that the party would prosper "only in the short term". Chaturon said he believed leader Thaksin Shinawatra had great ambitions that would benefit the country in the long term. But he added: "Only time will tell."

Seritham chief adviser Pinit Charusombat also rejected the academic`s figures. He said that the party would win at least 70 seats in the January 6 election, not the 25 predicted by Thirayuth. Pinit added that the figures were not reliable as the sociologist did not visit constituencies regularly.

The Nation

LAST MODIFIED: Sunday, 26-Nov-00 11:59:09 EST

[BodyG]

Recovery prospects dim - TFB


THAI Farmers Bank president Banthoon Lamsam has painted a somewhat gloomy scenario for Thai commercial banks, saying they will not be able to return to full health next year.

He said the income bases of lenders would widen only slightly because the manufacturing sector would still be reeling from the stagnant economy and because of the intense competition in the banking industry.

Earlier, bankers said they didn`t dare extend loans because entrepreneurs` financial positions were not solid enough and may have created new non-performing loans.

Banthoon`s comment appears to dash investors` hopes that banks would return to profitability next year following the completion of loan-loss reserve provisioning as required by the Bank of Thailand by this year-end.

"Banks will still be in a tough fight for customers, particularly those who are home buyers, because the loans have worthy collateral," he told reporters.

For his bank, TFB would focus strictly on debt restructuring in 2001, he said.

"The business trend suggests no to return to the bullish [sentiment]. Industries, encumbered with overcapacity in the past, are still recovering.

"Those operators who have lost competitiveness will continue to decline. NPL levels will depend on how much the next government`s policy can stimulate the economy," he said.

Thai Farmers Research Centre Co echoed Banthoon`s view, saying it would take some time for local banks to achieve real operating profits - and only after they have cleared the worst of their collateral assets.

TFRC predicted the Thai banking sector this year would earn about Bt7.8 billion in pre-tax profits.

"But the profits may not say much about the bank`s financial health. Closer attention should be paid to the deterioration of collateral assets and recovery passage of the entire economy," the report said.

"They (the big five banks) will achieve pre-tax profits in the second half this year of Bt10.7 billion, up from the contraction of Bt50.7 billion in the earlier period. This year`s net operating income before tax is therefore likely to be at Bt40 billion, up 78.4 per cent from last year," the report said.

Those banks are TFB, Siam Commercial Bank (SCB), Bangkok Bank (BBL), Bank of Ayudhya (BAY) and Thai Military Bank (TMB).

However, the research house estimated that the four Thai-turned-foreign banks` pre-tax income will remain in negative territory in the second half of this year at Bt13.1 billion, down from Bt5.2 billion in the earlier period.

The research house pointed to the likelihood that they would face higher provisioning burdens.

The four banks are Bank of Asia (BOA), DBS Thai Danu Bank (DTDB), UOB Radanasin Bank (UOBR), and Standard Chartered Nakornthon Bank (SCNB).

As for the nationalised banks, comprising Krung Thai Bank (KTB), Bangkok Metropolitan Bank (BMB), Siam City Bank (SCIB) and Bank Thai (BT), TFRC believes they will be able to attain pre-tax profits of Bt85.1 billion in the latter half, higher than the former two groups.

The higher profits can be attributed to the huge reversal of provisions to income for KTB of more than Bt108 billion (pre-tax) in the third quarter. Full year pre-tax profit will be Bt66.1 billion, or an increase of 153 per cent from last year.

"These imply that the Thai banking sector will attain positive pre-tax profits of about Bt7.8 billion in 2000, a significant improvement of 102.2 per cent from the previous year," the report stated.

BY ANOMA SRISUKKASEM

The Nation

LAST MODIFIED: Sunday, 26-Nov-00 09:06:53 EST

[BodyG]

STOCKS / TRADING BREACHES


Worawee broke law
Ex-bank chief and Kilen Printing fined


Nuntawan Polkwamdee


The Finance Ministry has fined Worawee Wanglee, the former chief executive of Nakornthon Bank, 3.55 million baht for using insider information to sell the bank`s shares.

As well, the ministry has fined Kilen Printing Co and its director a total of 1.59 million baht for manipulating Siam Sports Syndicate Plc`s shares.

The ministry said Mr Worawee was chief executive of the bank before it was renamed Standard Chartered Nakornthon Bank.

He realised from the bank`s management indicator report for July and August, 1998, as well as an inspection by the central bank on July 31, 1998, that Nakornthon was required to set aside 2.06 billion baht, 11.57 billion baht and 7.04 billion baht for pending respective quarters. However, he also knew the provisions would depress the bank`s shares, the ministry said, adding that the reports were inside information.

Mr Worawee sold 2.6 million Nakornthon shares for his own benefits and 2.2 million for his associates. The sales breached the Securities and Exchange Act.

The ministry said that Petch Wanglee, a former director of Nakornthon`s debt restructuring department, knowing that the bank was required to set aside provisions, sold 220,000 shares in his portfolio. He was fined 500,000 baht.

The ministry found that Kilen Printing had continuously bought shares of Siam Sports Syndicate from Jan 14 to 27, 1998, with intent to manipulate the price, which increased to 56 baht from 40 baht without supporting fundamentals. Kilen Printing was fined 1.09 million baht. The practice was authorised by Molee Wanarattananond, who was fined 500,000 baht
Quelle: Post 27.11.00

[BodyG]

POLITICS / ASSET OWNERSHIP


Tarrin-linked firm seems to be inactive
Minister says ties ended in 1993


Krissana Parnsunthorn and Wichit Sirithaveeporn


Coral Reef Cabana Co, a Phuket firm in which Finance Minister Tarrin Nimmanahaeminda denies concealing his holding and directorship, is a mystery to people in the province.

Mr Tarrin is adamant that he relinquished connections with the firm, which appears to exist only on paper, before he joined the government. Therefore, he said, he had complied with the law requiring politicians to disclose their assets.

The company was registered 11 years ago to operate hotel and tour businesses in Phuket, with Mr Tarrin listed as one of its founders. But none of the residents in the area where the company claims to have its head office said they had ever seen or heard of it. The company registered its address as 44/1 Moo 5, Viset Road, Rawai district, Phuket.

Residents and officials of the Tourism Authority of Thailand in Phuket said they had never heard of any hotel called Coral Reef Cabana. Inquiries made to hoteliers and tour operators in Phuket drew similar blanks.

The company is not listed in the telephone directory. As well, Business Online, an Internet service for all companies registered in Thailand, has no record of the firm.

Checks with the Commercial Registration Department revealed that the company had submitted financial statements for the past decade. An official said information held by the department stated that Coral Reef Cabana ran a hotel, bungalows and restaurants in Phuket and that Mr Tarrin was the chairman. However, the official refused to give details of the financial statements.

The dispute over Mr Tarrin`s alleged commercial interests flared when Adisorn Piengket of the Thai Rak Thai Party filed a complaint with the National Counter Corruption Commission. He claimed that Mr Tarrin had concealed his ownership of 60,000 shares in the company and his role as a board director. However, Mr Tarrin claimed that he had resigned from the company and had relinquished all his shares in 1993.

The company had been registered with initial capital of 15 million baht. Mr Tarrin held 60,000 shares of 10 baht par value.

Also registered as a founder shareholder was Anant Prajantabutra, the owner of 1,000 shares, who is also a kamnan , or tambon leader, and owner of the Kan-Eng restaurant in Phuket.

However, when asked, Mr Anant said he did not know much more about Coral Reef Cabana than was already known.

"It`s not necessary for me to tell you about my private involvement. If I told you, you would spread it as you can sell negative news," Mr Anant said. "My name was listed as a founder shareholder and director in an honorary capacity. My only interest is my Kan-Eng restaurant here."

He added that Coral Reef Cabana had never operated a hotel or tour business because a feasibility study had shown that the investment cost would be too high.

Mr Anant said that he and his associates including Mr Tarrin had been so busy with other commitments that they had no time to process the documents to close the firm.

When asked for details of the company`s actual business, Mr Tarrin said: "If you want to report it, you will have to report all the facts."

He promised to give more details to the Bangkok Post about a week ago but nothing was forthcoming by last night. However, he previously said that he could not explain why the company had not told the Phuket commercial registration office of his resignation. "I am confident I have done nothing wrong."

He said it often happened that shareholding information held at the commercial registration office was left unaltered when shares changed hands.

Quelle: Post 27.11.00

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Aus dem Seamico Board: Thema TPI


Monday, November 27, 2000 10:46:04 AM]
Subject : TPI
Message : seems like the voting is delayed again, perhaps until end of December....not good news for us.......

Name/E-mail : boonchai Reply





[Monday, November 27, 2000 11:03:08 AM]
Message : Latest news siad that the vote will not delay, at 10.59 a.m.

Name / E-mail : [e-mail]





[Monday, November 27, 2000 11:08:30 AM]
Message : If they do delay, expect a less than positive reaction with banks & fincos. I for one have had enough of all this nationalist TPI crap, and hope that their CEO gets what he deserves. He should be put in jail for his and other TPI exec. mistakes over the years, and whats more, should be ostracised by Thai society for being such a bad looser and destroyer of much of the remaining goodwill Thailand still has with overseas based powers! All this mob rubbish stinks. If they are to loose jobs, so be it! An end to this fiasco without serious changes to TPI`s busines model is not possible. Take the bitter pill, and give us all a break.

Name / E-mail : [e-mail]





[Monday, November 27, 2000 11:30:49 AM]
Message : my broker just called and said the plan was approved by 96%? am trying to check this information out

Name / E-mail : boonchai





[Monday, November 27, 2000 11:40:02 AM]
Message : Please confirm seamico

Name / E-mail : dikki





[Monday, November 27, 2000 11:44:38 AM]
Message : As reported on this site some time ago, the Planner is saying 90% approval is expected. I agree that any delay is bad for the country. The foriegn banks are hammering the Baht as a lesson to the Thai`s to sort this one out. Watch for further attacks on the Bhat if it is not sorted out soon.

Name / E-mail : Anon





[Monday, November 27, 2000 11:55:26 AM]
Message : good to hear that the thais here in the snakepit don`t fall into the national trap set up by prachai. what i don`t understand is that this guy had been given another chance to mess around in the company he had messed up already. i hope that this time they give give him the chance to enjoy his much needed retirement.

Name / E-mail : bert





[Monday, November 27, 2000 11:57:54 AM]
Message : Plan has been approved by TPI creditors according to news wires. Should help banking sector....particularly BBL.

Name / E-mail : [e-mail]





[Monday, November 27, 2000 1:38:59 PM]
Message : I agree that Prachai is scary. He is still the Planner on TPIPL until May next year so that company may suffer the same delays as TPI.

Name / E-mail : [e-mail]





[Monday, November 27, 2000 2:46:01 PM]
Message : A banker friend of mine has this quaint tale of K. Pichai & friends......once, several years ago, a Cholburi big wig who owns more than his fair share of theprovince`s petrol stations bought fell behind on payments to the nice ppl at TPI, and were swiftly reminded of what happens to those WHO DON`T PAY........you know, with the AK47 brigade et al! Now the boot`s on the other foot....and HE doesn`t like it. And then there`s the one about good old BBL, and how they `helped` all their dear friends pick up a piece of TPI all those years ago....only to go on and loose their collective shirts.

Name / E-mail : [e-mail]

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NCCC told Thaksin probe witness dead


THE National Counter Corruption Commission was told yesterday one of the witnesses summoned for investigation into Thaksin Shinawatra`s shady share transfers had died, an informed source said yesterday.

The news came as some of the tycoon`s elusive servants and employees who received enormous amounts of shares in the Shinawatra empire over the past several years showed up for the first time to give their testimonies.

According to the source, a lawyer representing Thaksin told the NCCC that Wanchai Chiangpruek had died. No other details were available.

Wanchai and his wife Pornthip were among at least nine crucial witnesses summoned by the NCCC to testify before the end of this month. Wanchai was apparently related to another witness, Shinawatra security guard Chairat Chiangpruek. However, Wanchai`s connections with the telecoms tycoon remain unclear.

The same lawyer, Somporn Pongsuwan, yesterday brought three household staff involved in stock transactions with Thaksin`s family to appear before an NCCC subcommittee investigating deals done by the businessman, now the leading candidate to be the next prime minister.

After weeks of hide-and-seek, SC Asset Co employee Danee Burakasikorn, driver Wichai Changlek and security guard Chairat Chiangpruek emerged from their hideout shielded by heavy security.

Anti-graft officials and defence lawyer Somporn remained tight-lipped on what had transpired during the statement-taking sessions.

Responding to the NCCC summons and ultimatum, Danee was the first nominee to arrive at the morning hearing to give her statement on Thaksin`s share transactions.

Danee, who held 30 million shares in a Shin Corps affiliate company on behalf of her employer, was originally scheduled to testify tomorrow but moved up the meeting to yesterday.

Preeya Kasemsant na Ayutthaya, chairwoman of the subcommittee examining Thaksin`s assets, cross-examined Danee.

Wirat Wattanasiritham, a subcommittee member, chaired the afternoon hearing and cross-examined Wichai and Chairat.

Wichai and Chairat reportedly held more than Bt1 billion worth of assets on behalf of Thaksin.

Wirat spent nine hours trying to verify the assets under Wichai`s name and those in Chairat`s name.

The NCCC originally scheduled maid Boonchu Rienpradab, Chairat, driver Manas Chaiya, maid Duangta Mangmeesap Wongpakdi, Wichai, and Thaksin`s brother-in-law Bannapot Damapong to give their statements yesterday. And three other nominees, Danee, security guard Wanchai Chiengpreuk and his wife Porntip Chiengpruek, were to testify tomorrow.

Boonchu sought and received permission to delay her appearance till tomorrow, citing illness. Manas, Duangta, and Banpoj failed to show up and did not give any reason.

NCCC secretary general Klanarong Chantik said the commission agreed to drop its summons for Sukanya Sae Heng, another household employee, after Thaksin informed the commission he had terminated her employment.

According to an NCCC source, the three employees who showed up yesterday gave testimonies "along the same line".

"They admitted to knowing that their names were being used as stock owners, but they had no idea whatsoever how the transactions were done," the source said.

The NCCC considered two servants who are yet to testify as the most crucial witnesses, the source said. Maids Boonchu Rianpradab and Duangta Mangmeesap (Wongpakdee) received the most shares from Thaksin`s family.


n Meanwhile, Thaksin is scheduled to give an exclusive interview on his political future to the Kom Chad Luek political programme on Nation Channel (UBC 8) at 9pm today.

PIYANART SRIVALO

The Nation 28.11.00

LAST MODIFIED: Monday, 27-Nov-00 11:25:52 EST

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Bangkok shares close slightly lower on profit-taking/TPI discounted

--------------------------------------------------------------------------------

BANGKOK (AFX-ASIA) - Share prices closed slightly lower as profit-taking eroded earlier gains led by Bangkok Bank, with most investors having already factored in the approval by creditors of Thai Petrochemical Industry`s debt restructuring plan, dealers said.
The SET index closed down 0.69 points or 0.24 pct at 284.73, off a high of 287.97 and a low of 284.72.

The SET 50 index was down 0.06 points at 19.81.

Decliners led advancers 75 to 54, with 108 stocks unchanged.

Volume was 2.62 mln lots, worth 2.69 bln baht.

The baht was at 43.51/56 to the dollar, against 43.47/53 in earlier trade.

The overnight rate was at 3.00 pct from 3.25 pct earlier.

The banking sector was down 1.43 points at 147.79 while finances fell 2.83 points to 683.99 and communications gained 0.17 points to 53.78.

Yuanta Securities analyst Boontiam Larppoonpholdee said the market moved sideways in quiet trade mainly due to the lack of strong fresh leads.

"Banks, particularly Bangkok Bank, failed to sustain earlier gains, as most investors had already factored in news that TPI`s restructuring plan had been approved by major creditors," he said.

He said many investors were unwilling to buy amid continued uncertainty over the market`s direction in short-term and NASDAQ`s development.

Bangkok Bank closed unchanged at 27.25 baht, off a high of 28.00, on volume of 21,982 lots and Bank of Ayudhya was steady at 5.50 on 14,918 lots, while Thai Military Bank fell 0.10 to 5.80 on 15,995 lots.

TPI closed up 0.20 at 4.00 on 175,744 lots.

Hana was down 2.00 at 116.00 on 11,199 lots.

PTTEP was steady at 118.00 on 11,031 lots.

National Finance was unchanged at 5.80 on 81,749 lots.

Tisco Finance rose 0.25 to 17.25 on 12,326 lots.

Loxley was up 0.25 at 18.50 on 28,789 lots.

bur/jw

28.11.00

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Creditors Get 75% of TPI
Asiagateway November 27, 2000

Thai Petrochemical Industry (TPI) PCL creditors approved Monday a proposal to restructure about $3.7 bln of debt that gives lenders a 75-pct stake in the company.

Thai Petrochemical Industry PCL had trouble paying loans and bonds after a 1997 currency devaluation and subsequent recession increased debt in local currency terms and reduced customer demand.

Creditors rejected requests by representatives of company founder Prachai Leophairatana to hold a private share sale rather than a debt-for-equity swap. The stake of Prachai`s family will fall by three-quarters to about 15-pct under the plan.

After approving the plan, creditors set up a committee to help with the change of control. It comprises officials from Bangkok Bank, Citigroup Inc, Industrial Finance Corp., the Export-Import Bank of the US, Bank Ayudhya Pcl, Krung Thai Bank Pcl and KFW International Finance.

The plan was prepared by Effective Planners Ltd., a subsidiary of Australian accounting firm. Ferrier Hodgson.

The plan calls for a return to the Bankruptcy Court for a final, largely procedural hearing scheduled for Thursday. Once the court approves, creditors will swap $756 mln of unpaid interest for 75-pct of TPI`s expanded equity under a four-year plan.

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BBL chief supports Thaksin


BANGKOK Bank chairman Chatri Sophonpanich has strongly endorsed Thaksin Shinawatra in his bid to be the next prime minister, saying the telecom tycoon had the ability and understanding to lead the country to economic recovery.

Chatri is the second business leader after Dhanin Chearvanont, head of the Charoen Pokphand Group, to openly back the Thai Rak Thai leader for the January 6 poll.

"Unlike leaders in the past who relied on others to chart the economic course, Khun Thaksin will be taking the leadership role in tackling the economic problems," Chatri said.

"He can do it because as a businessman, he understands business."

Chatri played host yesterday to Thaksin, who led key members of the Thai Rak Thai Party to visit Bangkok Bank chiefs to discuss the country`s problems. Accompanying Thaksin were Sudarat Keyuraphan, Pitak Inrawityanunt, Dr Somkid Jatusripitak, Pansak Winyarat, and Dr Suvarn Valaisathien.

Chatri had all the senior executives of Bangkok Bank welcome Thaksin`s team, which included his son and bank president Chartsiri Sophonpanich, executive chairman Kosit Pampiemraj, and senior executive vice president Theera Abhaiwong. On the campaign trail, Thaksin has been aiming to win support from the business and financial community, a traditional Democrat stronghold. Last week he and his team met with Banthoon Lamsam, president of Thai Farmers Bank.

Chatri said a weakness of Thai leadership in the past was most leaders did not have business and economic backgrounds. When the country faced an the economic crisis, they did not have the experience to tackle the pressing problems, he said.

"After listening to Khun Thaksin`s platform, I think it should be promoted because it is easy to understand and workable. The new government should focus on economic issues," Chatri said.

Chatri defended Thaksin`s financial handout policy, in which each village nationwide would be given Bt1 million to develop its businesses. Moreover, indebted farmers would be given a three-year suspension on debt repayments.

Chatri said the new government would not have to pay cash to the villages and could instead issue bonds. The most important thing was that the government should get its money back somehow, he said.

Executive chairman Kosit said he favoured Thaksin`s policies because they did not just rely on export earnings for the country but also sought to build up the domestic market to support the entire economy.

"The important fact is that the new government should speak frankly with the people. Next year we are heading to a difficult time, both in terms of economic growth and stability," Kosit said.

By JIWAMOL KANOKSILP

The Nation

LAST MODIFIED: Monday, 27-Nov-00 08:59:05 EST

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Thaksin makes inroads on Democrat turf


Telecom tycoon Thaksin Shinawatra is seeking to win over the business and financial community, formerly the political stronghold of the Democrats, Thanong Khanthong reports.


Fresh from his successful meeting last week with Banthoon Lamsam, president of Thai Farmers Bank, Thai Rak Thai leader Thaksin Shinawatra yesterday continued to seek support from the local business and financial community.

He realises that if he is to take on the premiership, he needs broad political support from the Bang-kok-based businessmen and financiers who have faithfully backed the Democrats in the past.

Thaksin met Chatri Sophonpanich and other top executives of Bangkok Bank and got their endorsement. Chatri treated Thaksin to a red-carpet welcome and said he should be able to lead Thailand to an economic recovery. In saying so, Chatri implicitly made his disapproval of the Democrats known.

Earlier, Dhanin Chearavanont, the chieftain of the Charoen Pokphand Group, also issued his endorsement for Thaksin to be Thailand`s next leader.

During the meeting with the Thaksin team last week, Banthoon also hinted at a broad feeling of political fatigue in a country looking for a wind of change to sweep away the chronic problems dragging it down. Although he did not endorse Thaksin openly, Banthoon, like Chatri, did not have any nice words for the Democrats.

Recently, Prapat Phothisuthon, the vice chairman of the Federation of Thai Industries, attacked the Democrat-led government over its failure to tackle the non-performing loans in the banking system or to prop up cash-strapped Thai industries.

In spite of his image as a big-time spender who has built up his party through political "mergers and acquisitions", as pointed out by social critic Thirayuth Boonmee, Thaksin is increasingly finding businessmen closing ranks behind him. Patience for the Democrats is running out.

Thirayuth has already predicted a big victory for Thaksin, who if he wins would bury Democrat leader Chuan Leekpai`s dream of making a "hat trick" comeback as prime minister.

The political duel between Thaksin and Chuan looks almost like a zero-sum game. Any political gain by Thaksin is Chuan`s loss. Mem-bers of the business and financial community which have backed him and Finance Minister Tarrin Nimmanahaeminda are having growing doubts about the Democrat leadership, which they believe, based on their own vested interests, cannot tackle the pressing economic problems. Tarrin has created a host of enemies with what is perceived as his inept handling of the banking system. It appears that the bankers at Bangkok Bank, Thai Farmers Bank and Bank of Ayudhya - the three remaining privately controlled banks - would like to get rid of the finance minister.

Although Thaksin may have a tough time winning the trust and confidence of foreign investors, he will be trying to build up domestic support first before working outward for broader support from the international community. "Foreign investors` confidence in Thaksin is zero [because of his populist programme to buy votes from the poor]," said a political analyst. "Look at the CNN interview; they just gave him a very tough time."

Tomorrow, Thaksin and Chuan will lead their economic teams to the Stock Exchange of Thailand to debate ways to salvage the Thai capital market. The Chuan government`s record in tackling market problems is very poor. This duel will be interesting to watch, as it will prove whether Thaksin can further widen his support among the business and financial community.

THE NATION LAST MODIFIED: Monday, 27-Nov-00 09:03:45 EST

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BANK SALE


Tisco heads buyer list for Siam City
Thursday meeting on progress in talks



Tisco Finance has emerged as the leading bidder for Siam City Bank, according to sources at the Financial Institutions Development Fund.

Tisco is leading a consortium that includes several international investment funds, said sources familiar with the case.

Fund directors are expected to meet on Thursday to decide whether to continue talks or to open new talks with other prospective bidders.

Executives at Tisco Finance declined to comment directly on the bid for Siam City Bank, saying that it was up to the Bank of Thailand to make a formal announcement on the privatisation.

Several other leading finance companies, including National Finance, have also reportedly submitted bids to take over Siam City Bank.

Chakthip Nithibon, the development fund`s manager and an assistant central bank governor, said the final candidate for Siam City Bank was expected to finish its audit of assets and liabilities today.

A screening committee overseeing the sale will report progress to the development fund`s board on Thursday, when a final decision on whether to continue talks will be made.

Mr Chakthip said the final bidder had been short-listed from among five candidates, selected based on financial capacity to buy the bank, short- and long-term operating plans, including management strategies for the bank`s staff.

Efforts to sell Siam City Bank to US investment fund Newbridge Capital collapsed earlier this year on pricing disagreements. Another plan to merge Siam City Bank with BankThai, another state-owned institution, was derailed following fierce staff protests, leading the central bank to announce it would open a new auction round with a final resolution expected by year-end.

Post 28.11.00

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Baht speculators hit by new trade tool
Hefty discount spells losses


Parista Yuthamanop and Cholada Ingsrisawang


The Bank of Thailand yesterday opened a special window for offshore parties to purchase baht to square their currency trades.

But help comes at a price. The central bank will sell baht for dollars at 1.2 baht below the spot exchange rate, effectively throwing speculators a loss.

Bandid Nijathaworn, central bank spokesman, said the window would be available until tomorrow.

The central bank also ordered banks to cease same-day transactions with offshore parties unless backed by underlying trade or investment.

Demand for baht in the offshore market soared last week after the central bank clamped down on transactions between local and offshore banks.

The baht opened trade yesterday at 43.9 to the US dollar and strengthened to as much as 43.4 in inter-day trade before closing at 43.48/55. On Friday, the baht traded at 43.79/86 to the dollar.

Overnight swap premiums offshore were yesterday quoted at 43/48 satang, equivalent to an annual rate of 9%. Interbank rates yesterday eased slightly to 2.75% overnight, compared to around 4% last week.

Dr Bandid said profit-taking and a rush by financial institutions to square short-baht positions had pushed tomorrow/next day rates offshore to as high as 60%.

The tighter curbs have led to several foreign banks defaulting on their same-day position settlements.

Current rules now restrict local banks to 50 million baht in loans to offshore parties unless backed by trade or investment activities. Dr Bandid said four or five banks which had violated the ceiling had been fined already.

The central bank warned in a circular yesterday that it would strictly penalise any local banks found violating reporting and transaction restrictions. All banks must comply with reporting requirements naming the counterparty and the objective of each trade.

Dr Bandid declined to comment on whether the abrupt tightening in offshore baht liquidity came from new measures, saying only it was a result of baht "overtrade" in the market.

One local banker said the new window was aimed at further splitting the onshore and offshore markets to curb speculation. But closing off the overseas market entirely would hurt sentiment. "Reports of a clampdown on trades had circulated in the market since Thursday. What is strange is why foreign banks knew ahead of local banks," he said.

The clampdown on transfers through non-resident baht accounts has added to volatility. Several banks have been fined for failing to control clients who had transferred baht offshore overnight, thus falling under the control limits.

Post 28.11.00

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Traditional Pre-Election Rally on SET Slow To Make Appearance

Tavivoot Chulavachana
Editor
With little indication that the traditional pre-election surge on the Stock Exchange of Thailand (SET) will occur this time around, securities analysts said yesterday that all hopes for an SET rally in the near term depend on the economic stimulus packages political parties are promising.

"The stimulus package of the Thai Rak Thai party, which focuses on boosting the purchasing power of farmers, will work better than the personal income tax break promised by the Democrats," said Sanpong Limthamrongkul, head of research at SICCO securities. According to Sanpong, the agricultural sector is traditionally responsible for much of Thailand`s purchasing power.

The Democrats` package of personal income tax reductions will benefit the middle classes, according to Sanpong, who called the package "too little, too late."

"The Democrat package works out to an average reduction of about 250 baht per person. I can`t see demand being stimulated much, while the cost to fiscal discipline will be great," he said, adding that the middle class has been hurt the most from the economic crisis.

Yesterday, several brokerages predicted pre- and post-election rallies on the SET.

In a research piece by KGI Securities One, a broker said a combination of election-related spending, and efforts by political parties to make known their economic policies in far greater detail than previous elections, will likely prompt a pre-election surge.

"Of the past five elections, four have been accompanied by a rally on the SET of 10 to 20 percent," said the broker.

Yesterday, Ayudhya Jardine Fleming Asset Management also voiced similar opinions.

"Foreign investors have traditionally returned to the SET after a general election, while local investors tended to push it up a few weeks before the election," said Ruengvit Nandabhivat, managing director of the firm.

Unlike previous elections where the public has tended to invest on popular perceptions of whether the government being formed was "good" or "bad", this election has seen analysts abuzz with talk of economic packages.

The cost of the various stimulus packages is being assessed against potential gains and the expected cost to fiscal discipline.

One analyst at Seamico Securities, declining to be named, said: "With Thailand`s public debt hovering in the range of 35 to 55 percent of GDP, depending on what is being counted, and exports continuing to grow at some 20 percent this year, the question securities analysts are asking is which party`s stimulus package will keep the economy going."

He said with a slowdown in global growth and Thai exports in 2001 a major question mark, domestic demand will play an increasingly important role in how the SET performs next year. He added that most political parties, including the Democrats, are focusing their platform on reviving the real sector, which is expected to reduce the pressure on banks` non-performing loans and asset quality

Quelle: Bday 29.11.00

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Wednesday, November 29 12:32 PM SGT

Thai Ctrl Bk Meets Bankers; Press Conference 0800 GMT
BANGKOK (Dow Jones)--Thailand`s central bank has called bankers to meet with top officials Wednesday, and will hold a press conference at 0800 GMT (3:00 a.m. EST) on a subject which hasn`t been revealed.
The press conference is presumed to be related to rules relating to nonresident accounts.

A temporary facility set up to allow the sale of baht by onshore banks to nonresident accounts in cases where there is no underlying trade or investment will expire Wednesday, and Bank of Thailand has said it is considering new penalties to enforce an existing ban on such sales.

The central bank limits the flow of baht to offshore markets in order to increase the costs of funding and covering short-baht positions, which add speculative pressure to the Thai currency at a time when it is already weakening on its own merits.

Overdrafts on nonresident accounts are currently allowed up to a limit of 50 million baht, in cases without an underlying trade or investment. But in practice, onshore banks don`t allow overdrafts, because it is too difficult to keep track of whether combined overdrafts of all accounts of different global branches of a single offshore entity are under the limit, dealers said.

The dollar is trading Wednesday morning around 43.80 baht, up slightly from THB43.70 at the Asian close Tuesday.

Quelle Yahoo Fin. 29.11.00

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Thaksin `can`t use wife as shield`


THAKSIN Shinawatra, leader of the Thai Rak Thai Party, cannot pass responsibility to his wife for the appointment of nominee shareholders, National Counter Corruption Commission chairman Opas Arunin said yesterday.

Opas was commenting on a reported legal possibility by which Thaksin, hoping to become the next prime minister, might try to distance himself from decisions to appoint nominees including his driver, maids and security guard to hold shares in his multi-billion baht business empire.

An NCCC subcommittee continued questioning more nominees yesterday, including Duangta Wongpakdee and Porntip Chiangpruek.

With the interrogation of nominees making significant progress, a new self-defence scenario emerged from news reports quoting sources close to Thaksin. It was said Thaksin may try to argue to the NCCC that his wife, Pochamarn, and her brother Bannapot Damapong, have been responsible for his assets. His wife in particular was tasked with the authority to make financial and shareholding decisions even before Thaksin became involved in politics.

Opas said the Constitution was clear on how assets needed to be declared by a political appointee. Article 291 stipulated that a political appointee must declare his or her assets and liabilities alongside those of his wife or her husband and children under adult age. Assets of the wife must also be truthful.

If the assets of the wife were found to be "intentionally hidden", then the politician in question was liable to face a five-year ban from all political activities, he said.

Thaksin yesterday again denied that he had broken any law.

With four other nominee shareholders for Thaksin yet to testify before the NCCC subcommittee, the end-of-November deadline on the investigation has been extended. Representatives from SC Assets Co, a non-listed property firm of Thaksin`s, have requested a deadline of December 8 to compile documents and present their case. The company not only has nominee shareholders, but also sold assets to two companies registered in the British Virgin Islands, a well-known tax haven.

One of the key nominee shareholders, Boonchu Lianpradab, regarded as the most crucial witness, reported sick yesterday, leaving only Duangta and Porntip to testify. Opas said the NCCC would not need long to rule on the case, but the entire process depended on the subcommittee`s work.

Duangta appeared extremely tense at the hearing yesterday, shielding herself behind Thaksin`s lawyer Somporn Pongsuwan.

Duangta holds five million shares worth Bt30 million in Pager Sale Co and the same amount in SC Assets Co, as well as Bt984 million worth of shares in Shin Corps. Porntip holds two million shares in Pager Sale and Bt640,000 of shares in Udomwan Co.

The investigation deadline is crucial as Thaksin is standing in the January 6 election and his party has been ahead in all polls. Thaksin will also have an opportunity to appeal to the Constitution Court if he is found guilty by the NCCC.

Charges that the NCCC is under political pressure to finish its inquiry before - or not before - the election date continue unabated.

NCCC secretary Klanarong Chantik said the subcommittee would meet next week to review all documents handed over by Thaksin and decide what to do next, including whether to call Pochamarn to the hearing.

BY OPAS BOONLOM and

PIYANART SRIVALO

The Nation

LAST MODIFIED: Wednesday, 29-Nov-00 11:53:50 EST

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JA ja, so entwickelt sich alles: Die viel gepriesene TFB holt Farangs in die Führungsebene! Wer hätte das gedacht??

TFB chief to bring in foreign experts


THAI Farmers Bank, the country`s second biggest bank, will shortly break new ground by appointing two foreigners as full-time executive vice-presidents.

It will mark the first time that a Thai-owned bank has appointed foreigners to executive positions.

Bank president Banthoon Lamsam described the move as a defensive strategy that would better enable TFB to compete with foreign-owned banks with their strong contingents of financial experts.

Foreigners currently employed by Thai-owned banks tend to act in advisory positions and are not directly involved in the executive-decision process. The two executives to be hired by Thai Farmers Bank will be responsible for the marketing of its retail business and for its human-resources strategy. These two positions are currently vacant. The move is seen by some as a reflection of the drastic changes that have taken place in the banking industry elsewhere in the region. A case in point is the Singaporean government`s decision to appoint John Olds, a non-Singaporean, as the vice-chairman and chief executive of the Development Bank of Singapore, of which the government is the major shareholder. The move was seen as preparing the ground for DBS to play a greater role in the region.

Thai Farmers Bank currently has eight core business groups, each supervised by an executive vice-president. According to the bank`s structure, these executive vice-presidents should report to a senior executive vice-president who is in turn responsible to the president. The position of senior executive vice-president is vacant at present.

"The foreign experts will report directly to me," said Banthoon. "Our intention is to boost competitiveness. There was a time when we thought we were good and capable enough to handle these matters [marketing and human resources]. But, in fact, we are not."

Further details of the new arrivals are not available. So far, no firm contracts have been signed. A source at the bank did reveal, however, that the prospective executives are Americans with extensive experience of the banking industry. The two had already unofficially accepted the bank`s offer.

Banthoon said the payment packages for foreign experts were high compared with those for locally-hired executives, but added: "So far, the foreigners that we have recruited have done a good job."

"They have knowledge which we need," he added. "If we don`t hire such people we might not be able to find the solutions we need. We pay them and they give us a full contribution. Our foreign adviser are also able to hold the bank`s corner against foreign competitors."

The two newcomers would be hired for a few years to establish a firm foundation in their respective fields, Banthoon added.

Thai Farmers Bank recently recruited 61-year-old Ronald Spride after he retired as Asia region chief for international financial advisers Booz Allen and Hamilton.

Spride is acting as an adviser to the bank in a number of areas, including the reorganisation of the central office, fee-based business development, customer relations, IT infrastructure and e-business.

Two foreigners represent overseas investors - who hold about 49 per cent of the bank - on the board of directors.

Banthoon describes efforts to improve the bank and its position in the market as "re-engineering".

Part of his strategy has been to clearly define the bank`s objectives by rearranging its structure into separate groups - wholesale business, retail business, credit management, systems, finance and control, and human resources.

The bank has also made efforts to reduce its staff through an early retirement programme. Since the financial crisis started in 1977, the number of employees has been reduced from more than 16,000 to 11,400.

BY JIWAMOL KANOKSILP

The Nation

LAST MODIFIED: Wednesday, 29-Nov-00 09:38:58 EST

[BodyG]

TIT (that is Thailand) no that is NIT (normal in Thailand)


Top officer named in bribery charges


A SENIOR immigration officer faces a top-level investigation by the Royal Thai Police following a bombshell allegation yesterday that he took a Bt25-million bribe to allow an Indian mafia boss to escape from a Bangkok hospital last week.

The allegation, made by a former lawyer of mobster Chhota Rajan, rocked the Immigration Bureau, which immediately told the accused officer, Pol Maj Gen Kierkphong Phugprayoon, to submit a report on the matter.

Lawyer Sirichai Piyapichetkul said that he has a witness to testify in support of his claim that Rajan managed to slip away from Samitivej Hospital because he paid bribes to Kierkphong.

"I have a witness who would sacrifice his career to testify in support of my claim that a bribe of Bt25 million was paid in exchange for Chhota to escape," he said.

Sirichai was speaking after surrendering to Thungmahamek district police in response to a defamation suit filed against him by eight police generals from the Immigration Bureau after he earlier alleged that one of them had received the bribe.

The eight police generals in the bureau are Kierkphong, Sanith Meephan, Dej Kanchanawat, Yongyudh Theawthrakul, Khanchai Anandsomboon, Sothorn Wanitsathean, Theparat Rattanawanitch and Charnvudh Wanacharapuk.

Sirichai, who was released on bail, told reporters that the witness would participate in a press conference he had called for Sunday. After that he would go overseas to see Rajan, partly to get money to pay for his hospital bills.

Sirichai said he was aware of the possible consequences of his allegation.

News of the allegation reached Kierkphong as he and other recently promoted officers were attending a royal endowment ceremony at Chitrlada Palace. After the ceremony, he refused to comment, asking reporters to direct questions to his superiors.

Immigration Police Commissioner Hemmarat Tharithai asked Sirichai to quickly provide evidence to support his charges.

Hemmarat said Sirichai would be summoned to provide evidence to back up his allegations. He added that it would be up to Kierkphong whether to file another libel complaint against the lawyer.

"The next step will be up to the Royal Thai Police, which I have learned is looking into the matter," Hemmarat said.

"Whether Kierkphong will be suspended from duty will depend on the Royal Thai Police because he is a senior officer."

iTV reported last night that Kierkphong was once investigated in connection with a mysterious burning of police records on foreign criminals.

Hemmarat said it would be up to the seven other police generals at the bureau whether to drop the defamation case against Sirichai.

In a separate interview, Pol Maj Gen Jongrak Jutanont, deputy Metropolitan police commissioner, said the Thungmahamek police would carry out the defamation investigation in a neutral manner even though the plaintiffs are police officers.

Jongrak said Sirichai presented some evidence yesterday to back up his claim.

Meanwhile, a source said that the police are trying to talk to Sirichai`s witness, but could not reveal the venue out of concern for the witness`s safety.

The police are already investigating the disappearance of Rajan, who is wanted in India in relation to more than a dozen murder charges. Nine non-commissioned police officers who were guarding Rajan were temporarily dismissed pending the investigation.

Rajan is believed to control a crime empire that includes extortion rackets and drug trafficking.

He was taken to Samitivej Hospital with gunshot wounds after members of rival gang stormed his Bangkok apartment on September 15, shooting Rajan and killing one of his associates.

Prime Minister Chuan Leekpai said Rajan`s case was different from others in which payers of bribes escaped, in that they usually do not cooperate with police afterward. In this case, the truth could be revealed as Sirichai has come out and vowed to tell the whole truth.

Interior Minister Banyat Bantadtan said that the police investigate fully so that the policeman who was bribed is punished. Otherwise, the force`s image will be tarnished, he said.

BY CHAIYAKORN BAI-NGERN

The Nation

LAST MODIFIED: Wednesday, 29-Nov-00 11:53:32 EST

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Krieg statt Liebe?

Thai Rak Thai lambasts ABC


THE Thai Rak Thai Party has declared war on the Australian Broadcasting Corporation (ABC) for its recent news report that suggested the party bought votes in Phitsanulok.

The party will send the network a written complaint about "unfair reporting" and demand an explanation, spokesman Suranan Vejjajiva said.

Party leader Thaksin Shinawatra yesterday castigated the "falsehood" of the news report. He acknowledged that an ABC reporter had briefly interviewed him but said the televised report contained inaccuracies.

"I find this unacceptable," Thaksin said.

He said a party investigation of its Phitsanulok candidates had found no evidence of vote buying.

Suranan confirmed Thaksin`s denial, saying he had seen the ABC report and found certain scenes suspicious.

Although the report contained footage of a function held by a Thai Rak Thai candidate, it did not show the vote buying that allegedly took place there, Suranan said. If you look at the different backgrounds, the interviews with the people who said they had traded their ID cards for cash were obviously shot somewhere else, he said, adding that a man appeared to be manipulating those individuals` statements.

The spokesman said the footage had been shot before the House dissolution early last month but the ABC news crew had never approached Thai Rak Thai for comment. They instead asked Thaksin in a group interview with Thai reporters about vote buying in general, which led to general answers from Thaksin about vote buying not being part of the party`s strategy to win support, he added.

Suranan said some scenes in the report could be misleading, such as the one that showed a reporter holding a bag containing T-shirts and banknotes allegedly given away by Thai Rak Thai. The reporter is standing next to a campaign poster for Thai Rak Thai Bangkok candidate Dr Nahathai Thiewpai-ngam. "Some people might think Dr Nahathai had something to do with it," he said.

The spokesman said the report also mentioned corruption in the police force and noted that Thaksin was a former police officer, which he interpreted as an attempt to discredit Thai Rak Thai.

"I don`t think this sort of reporting is acceptable. It is aimed at persuading viewers to believe what is in the report, without sufficient supporting facts," Suranan said.

However, he acknowledged that some party candidates might have given gifts to constituents before the House dissolution, though he said none had distributed cash.

Election commissioner Sawat Chotepanit yesterday said he would ask for a copy of the ABC report to deter-mine whether an investigation was in order. The Election Commission (EC)`s local office in Phitsanulok has information about all candidates in the province, he added.

Sawat said commissioners would begin looking into complaints of vote fraud against candidates after December 12, when he would have completed his visits to the EC`s local offices nationwide. From today local commission officials will be sum

moned to testify and produce any evidence they have, he said.

He reiterated that the EC had the power to disqualify suspected vote-buyers before the election.

Thai Rak Thai executive member Chaturon Chaisaeng yesterday criticised unnamed provincial EC officials for suggesting that the party`s promise to set up a Bt1-million fund for every village violated electoral law. He said the commission had already concluded that the promise could not be construed as vote buying.

Thaksin yesterday spoke of certain local EC officials` "unfairness" in publicly accusing several Thai Rak Thai candidates of vote-buying.

"They talk too much. They are supposed to act as good referees, but they actually seem to be speaking for our competitors," Thaksin said.

BY SUKANYA LIM

The Nation 4.11.00

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Thai Rak Thai `more activist`


THE Democrat Party of Chuan Leekpai and the Thai Rak Thai Party of Thaksin Shinawatra are divided by far more than just personality differences.

They also have divergent approaches to managing the country. Indeed, the two parties are facing off at opposite ends of the political spectrum.

At no time in Thai political history have economic ideologies come into play so conspicuously as in this general election campaign, in which the two dominant parties are fighting head-on for control of the next government.

Chuan is portraying the Democrats as a party of teamwork.

As he has done for the past three years, he will continue in this campaign to downplay his leadership role for the sake of solidarity.

This strategy has served well to protect his political image, as most of the blame for the country`s economic woes has landed instead on the lap of Tarrin Nimmanahaeminda, the finance minister.

Thaksin sells himself as the CEO, seeking to run the country as Thailand Inc. Since he is the one who bankrolls the party, he has the ultimate say.

A close reading of the policies of the Democrats and the Thai Rak Thai shows that they differ entirely on almost every important issue. Let`s begin with the banking sector.

Tarrin aims to build a world-class system for Thai banks, which he hopes to beef up by introducing international rules, standards and best practices.

He believes that a strong economy entails a need for a strong banking system, which is also the best pre-emptive buffer against another crisis.

But Tarrin has been sharply criticised from some quarters for his insistence on requiring Thai banks to conform to big-league standards when they are too weak to do so.

Moreover, the bearish market is also going against the Thai banks, depriving them of an opportunity to raise new capital.

Pansak Winyarat, the chief advisor to Thaksin, thinks of the banking system this way.

"Look at the Japanese banking system. Even though it`s a mess, Japanese companies are churning out money.

"The Taiwanese banking system is equally poor, yet the Taiwanese companies are prospering," he said.

His argument implied that Thailand should focus on strengthening competitiveness in the real sector rather than wasting the country`s resources on the banks.

Banthoon Lamsam, president of Thai Farmers Bank, appears to lean toward the Thai Rak Thai on this front.

Banthoon said he has run out of ideas because he has done everything to improve his bank, both in raising new capital and in meeting the tough provisioning requirements.

"Yet we cannot lend the money out," he said. "Fixing the banking system alone is not enough. The government must also take care of the real sector."

One by one, bankers, financiers and businessmen who used to be strong supporters of the Democrats, are closing ranks behind Thaksin and the Thai Rak Thai. This is not too complicated to explain.

Thaksin has vowed to set up a national asset management company (AMC) to buy the bad debts from the banking system in one fell swoop.

The bad debts then will be divided into different categories to make it more convenient to manage.

Then the government will decide the level of debt forgiveness to the corporate debtors, ensuring that all are equally treated.

Weak companies will be allowed to go bust, while the stronger ones will get new capital and move forward.

This measure is tempting to the bankers and corporate debtors, who are anxious for another chunk of public money to bail them out.

In pure economic terms, this policy has found support among some economists, who would like to see a quick fix.

Chatichai Parasuk of National Securities told Channel 3 that another Bt1 trillion might be needed to fix the banking system by buying out the bad debts outright. Otherwise, he said, the banks will never be able to stand on their own feet.

Moreover, since the corporates are saddled with massive debts, which are twice or three times their annual turnover, they need to get an appropriate level of debt forgiveness so that they have enough cash flow to continue their businesses.

"The market mechanism has broken down and somebody will have to fix it. And that somebody is the government," Chatichai said.

Tarrin and Pisit Lee-ahtam, the deputy finance minister, have voiced strong opposition to using further

public money to buy up the banks` bad debts.

After all, the government has almost exhausted its resources by pumping Bt1.2 to Bt1.3 trillion into the system to keep the banks afloat. They believe that privately owned AMCs are be an adequate means to tackle bad debts according to market forces.

The Democrats have warned that the Thai Rak Thai`s spend-first-pay-later plan will destroy the fiscal discipline of government and might lead to a second crisis.

For all their differences, Supachai Panitchpakdi, the deputy prime minister, and Tarrin share the same conviction that the government should not pick the winners or losers among the industries. Market forces, they believe, should determine which companies should survive or which should go.

Telecom tycoon Thaksin has made it clear that he will be the one who picks the winners and losers by separating the sunrise industries from the sunset industries. Presumably, telecom companies will top the list of winners.

Ironically, in spite of his high business profile, Thaksin prefers government activism to a considerably greater degree than do the rival Democrats.

While the Democrats set out to reform the financial and economic system, hoping to reap benefits through a return of foreign investment and capital, the Thai Rak Thai aims to revamp the national economic and social development plan laid down by Thai bureaucrats over the past few decades.

The Thai Rak Thai has set its sights on tackling the long-term problems of the country, paying less attention to the immediate or short-term problems.

Its policy is to strengthen the rural sector by allocating Bt1 million in working capital for each of the nation`s 77,000 villages. Each village will produce one product, linked to the modern sector in an integrated chain of production processes.

At the heart of the modern sector lies the small- and medium-sized enterprises, which will not rely, or will rely very little, on import content .

The farm sector and the modern sector will form the backbone of the economy. This policy of the Thai Rak Thai will shift the country away from an export-led economy into a domestic-oriented one.

For by relying on exports, Thailand would have to import massive quantities of raw materials or machinery equipment to support export production, possibly risking another account deficit, another devaluation to boost exports, and another financial disaster, the party believes.

"What the Thai Rak Thai suggests is a fundamental shift in philosophy of managing the country," Viroj Nualkhair, a capital market expert, said.

"We don`t know whether it will work because it depends on implementation. But it sounds interesting. Unfortunately for the country, Thais have to face a change of government in the middle of the economic crisis," Viroj added.

"The public has lost patience with the model of the Democrats and want to try something new. I am not saying that the Democrat`s method is wrong but it cannot be measured because it has not been allowed to run its full course."

Anusorn Tamjai of Citibank also believes that the Thai Rak Thai`s idea looks appealing, yet he doubts that the party has the right kind of people to implement its ambitious reform programme.

At the same time the Democrats have good people who really know the job but appear to have run out of new ideas, he suggested.

BY THANONG KHANTHONG

The Nation 4.11.00

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Minor impact seen from Nasdaq dive


THE Nasdaq`s recent free-fall has had only a minor impact on local hi-tech stocks, analysts say.

Adisak Kammool, an analyst from Philip Securities (Thailand) Ltd, said hi-tech stocks on the Nasdaq have mostly gained ground over the past five years, and were due for a correction.

The Nasdaq index rose by 85 per cent in 1997, from 990 points; 102 per cent in 1999; and surged to a peak of 4,816 early this year, when it started its long slide.

At 2,506, it stood at its lowest close in 15 months earlier this week before gaining slightly on Friday to close at 2,645.

Analysts believe Friday`s rally was due to short-term buying rather than new money coming in, Adisak said.

Adisak believes the correction, which followed concerns about under-performing hi-tech stocks, surprised some analysts because it has exposed stocks` real fundamentals.

Comparing Thailand with the US hi-tech environment, Adisak said that "five years ago hi-tech stocks in Thailand were very popular as could be seen by their P/E [price-to-earnings] ratios, which were as much as 120:1 to 140:1. Shortly after, when performance results came in, the ratio dropped to 80:1 to 90:1, and today the stocks trade at only 20:1 to 30:1".

Losses on the Nasdaq have only had a minor psychological impact on Thai communications and electronics stocks, he said. Adisak said the sectors continue to show good prospects for growth, as sales and profit margins remain stable, and prices are acceptable given the fundamentals.

Sasitorn Withayarunksun, head of institutional sales at DBS Thai Danu Securities, agreed that the Nasdaq`s decline has had only a minor effect on local hi-tech stocks. Sasitorn said local hi-tech shares have demonstrated their real value, while US hi-tech stocks have experienced a sharp correction due to inflated value.

She agreed that the current outlooks for the communications and electronics sectors are positive, particularly because the stocks are not as expensive as similar stocks in the region, especially in Singapore.

However, foreign investors have shunned Thai stocks due to other negative domestic factors.

Adisak said the IT sector should remain a leading sector despite the Nasdaq`s correction.

However, Isariya Ananrak, vice president of Seamico Securities Plc, suggested that investors avoid investing in hi-tech sectors until the situation stabilises.

He said there is still concern over the US economy slowing next year, which would have a negative effect on performance due to lower demand.

The sentiment in the Thai stock market remains depressed, although there may be some good fundamental stocks to invest in, said one analyst from DBS Thai Danu Securities.

Adisak said foreign investment would be more selective than in the past.

Foreign trading on the Stock Exchange of Thailand (SET) will experience a temporary pause over the next several weeks due to holidays in the West. As a result, turnover by foreign investors will drop from the current 20 to 30 per cent to less than 10 per cent of total volume.

Adisak forecast that the SET index would close the year at 296 to 310 points.

The main buying drive would mostly come from local investors.

He said that SET forecasting was based on statistics for previous years.

Last year, the SET index stood at 482 points before dropping by 42 per cent to the present level, which is close to the index level in 1997.

BY SIRIPORN CHANJINDAMANEE

The Nation 4.11.00

[BodyG]

Das Wort zum Sonntag

Geschichten, die Pattaya schreibt

Zwei echte Märchen zum Thema Wohnrecht für Ausländer
Es war einmal ein Mann
aus Europa. Der wollte in
Pattaya ein Haus haben,
weil es ihm da so gut gefiel, und
weil er eine Thai-Freundin hat-
te, die auch ein Haus wollte,
aber kein Geld hatte.
Da kaufte der Mann seiner
Freundin ein Haus. Um seine
Unterbringung und seine Kapi-
talanlage auch künftig zu si-
chern, riet ihm seine Freundin,
er solle sich ein Wohnrecht ein-
tragen lassen. Der Mann freute
sich über so viel Fürsorge und
stimmte zu.
Ei, wie war die Freundin da
glücklich. Sie fiel ihm um den
Hals und sagte: —Jetzt erkenne
ich erst so richtig, dass du zeitle-
bens bei mir bleiben und mit
mir zusammen sein willst. Und
für den Fall, dass mir etwas zu-
stösst, wirst du auch in Zu-
kunft, bis zu deinem Tod, eine
Bleibe haben, und meine Erben
können dich nicht fortschicken.
So kannst du dann - über mei-
nen Tod hinaus - in unserem ge-
meinsamen Haus mein An-
denken pflegen. Oh, welche
Wonne!ih
Da eilten beide zusammen
zum Land Office und liessen
flugs und einträchtig das Wohn-
recht eintragen. Und da waren
beide fortan recht glücklich.
Und wenn sie nicht gestorben
sind, dann leben sie heute noch
einträchtig in ihrem schönen
Haus.
Es war da aber auch ein ande-
res Pärchen, das ebenfalls ein
Haus kaufen wollte. Aber als
der Mann vom Wohnrecht
sprach, weinte seine Thai gar
bitterlich und raufte sich die
Haare. Sie sagte: —Du liebst
mich nicht, du vertraust mir
nicht. Glaubst du denn, ich
würde dich jemals aus dem
Haus jagen? Siehst du nicht, wie
Von Khun Krut auch meine Familie dich innig
liebt, und weisst du nicht, dass
sie dich auf jeden Fall im Haus
behalten würde, selbst wenn ich
stürbe? Glaubst du denn nicht
an unsere ewig währende Dank-
barkeit?ih (Mit erstickter Stimme
deutete sie sogar die Möglich-
keit ihres Freitodes aus Enttäu-
schung an!)
Beglückt von den
Liebesschwüren
Da war der Mann sehr schuld-
bewusst und gleichzeitig be-
glückt von ihren Liebesschwü-
ren und verzichtete selbst-
verständlich auf das Wohn-
recht. Ganz schemenhaft erin-
nerte er sich noch daran, dass er
in Europa kein Geschäft ab-
schliesst, ohne Bank, Steuerbe-
rater, Rechtsanwalt und Notar
einzuschalten. Aber dann sah er
die Palmen, die sich im Winde
wiegten, spürte den Sand zwi-
schen seinen Zehen, blickte in
die Sonne, trocknete die Tränen
seiner Liebsten mit zerknirsch-
ten Küssen und wischte alle Be-
denken weg.
Und wenn sie nicht gestorben
sind, wohnen sie immer noch
allein im gemeinsamen Haus,
ungestört, ohne Brauteltern,
Geschwister und andere Ver-
wandte oder Bekannte der Frau
und sind glücklich bis an ihr
Lebensende.
Doch so märchenhaft wie in
unseren beiden Geschichten
laufen in Pattaya für die meisten
Ausländer zwischenmensch-
liche Beziehungen und Haus-
kauf eben nicht ab. Ihr —Mär-
chenih endet eher so: Und wenn
sie nicht gestorben sind, woh-
nen sie nicht mehr allein im ge-
meinsamen Haus, Brauteltern,
Geschwister und andere Ver-
wandte oder Bekannte der Frau
stören ständig, und der Farang
ist unglücklich bis an sein Le-
bensende. ng[/b]Farang 22

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Monday, December 4 11:03 AM SGT

Analyst Poll: Stock Calls To Start The Week In Thailand
BANGKOK (Dow Jones)--Here`s the advice of stock professionals surveyed in Thailand Friday on stocks to buy and sell for the current week.
Merrill Lynch Phatra Securities, analyst

BUY: Bangkok Bank PCL (H.BBK) - price THB26.00 ($1=THB43.685). Loan interest income of this bank, which is the major creditor of Thai Petrochemical Industry PCL (H.TPE), should improve after creditors of Thai Petrochemical approved a $3.7-billion debt restructuring plan last week. Despite protests by the company`s owner to reverse the approval decision of the restructuring plan, there is little chance this will actual happen. The increasing loan income from Thai Petrochemical should boost the bank`s operating profit by 1 billion -1.2 billion baht a year.

SELL: None

BNP Prime Peregrine Securities, analyst

BUY: Siam Cement PCL (H.SCM) - price THB280. Thailand`s largest conglomerate has announced a plan to divest 40% of its holding in auto part affiliate Siam Aisin Co. to Japan`s Aisin Seiki Co. (J.AIS) for 272 million baht ($1=THB43.924). This divestment illustrates its commitment to corporate restructuring, aimed at disposal of its non-core businesses. Its plan to tie up with its major rival Siam City Cement PCL (H.STY) by investing $8 million each in Hyundai Cement, Bangladesh, is seen as positive as the move is expected to lead to larger cement exports to Bangladesh.

SELL: None

Seamico Securities, analyst

Buy: Siam City Cement PCL (H.STY) - price THB110. The plan of Thailand`s second largest cement producer to invest around $8 million in a 19% stake in Hyundai Cement, Bangladesh, expected to be completed by first quarter next year, will enable the company to expand its export market. Larger export markets will reduce its production unit costs and maintain its plant utilization around 70%-80%. Its low level of debt will encourage it to seek new investment in cement-related businesses in countries such as Bangladesh, India, Pakistan, Vietnam and China.

SELL: None

Dann gabs noch ein strong buy von UBSWARBURG für BBL-F!!!! Kursziel 2001 71 Baht!!!

[BodyG]

Monday, December 4 12:25 PM SGT

Thai Shrs Down Early In Light Trading;Commun Leads losses
BANGKOK (Dow Jones)--Thai stocks were slightly down in sluggish trading early Monday led by losses in the communication sector, dealers said.
Most investors were sidelined on a lack of fresh leads ahead of Thailand`s public holiday Tuesday, they said.

At 0410 GMT (11:10 p.m. EST Sunday), the Stock Exchange of Thailand, or SET, index was down 1.33 points, or 0.5%, at 272.53. The blue-chip SET 50 Index was down 0.11 points, or 0.6%, at 18.83.

Decliners outnumbered advancers 52 to 24, excluding shares traded on the foreign board.

"It is going to be a very slow day today as most investors are already in the holiday mood," said a dealer at Thai Sakura Securities.

She believes the market will remain locked in a tight range between 269 and 275.

Most key sectors were lower in early trading. The Communication and electronics subindexes were down 1.6% and 1.1% respectively.

TelecomAsia was down 3.8% at 19.25 baht ($1=THB43.772) on fears of a possible recapitalization, despite the company`s denial last week that it no immediate plans to increase its share capital.

Analysts said the company has to issue new shares eventually if it decides to enter a share swap deal with a Charoen Pokphand unit to take control of Wireless Communication Service, a mobile phone operator. Charoen Pokphand is TelecomAsia`s parent company.

Hana Microelectronics was down 1.8% at THB108. PTT Exploration and Production was down 0.9% at THB108.

Thai Petrochemical was down 2.9% at THB3.40. The company has halted operations in its refinery since Friday night due to insufficient crude supplies. -0- 04/12/00 04-25G

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ADVANCE AGRO


BBL seeks further delay in debt talks
Cholada Ingsrisawang


Bangkok Bank has requested an additional two-week delay in finalising debt restructuring for listed paper firm Advance Agro.

The Corporate Debt Restructuring Advisory Committee, which is helping to arbitrate the talks, had set Nov 30 as the deadline for contracts to be signed.

Creditors had earlier agreed to split treatment of Advance Agro`s debt from overall restructuring talks for the entire Soon Hua Seng group, one of the country`s largest conglomerates with interests in a wide range of industries.

Last Tuesday, Bangkok Bank requested a delay in the final deadline from the committee, citing several details which remained to be cleared with Advance Agro.

Other banks say the hold-up reflects the tensions between Bangkok Bank, the largest creditor, and Advance Agro.

Among the points in dispute was a request by Advance Agro to delay payments until after the formal signing date, a request Bangkok Bank declined to accept.

Advance Agro had also requested that Bangkok Bank, Krung Thai Bank and Thai Farmers Bank submit a list of appointees to Advance Agro`s board.

"It`s a pride issue between the creditor and borrower," one source said, noting that Chatri Sophonpanich, Bangkok Bank`s chairman, was directly overseeing restructuring talks involving two of its biggest debtors, Soon Hua Seng and Thai Petrochemical Industry.

For other banks, the delays have proved frustrating. Costs rise the longer the loans remain non-performing. At Thai Farmers Bank, executives say the Soon Hua Seng loans represent the last major non-performing loan remaining to be worked out, with the remaining bad loans mostly out to smaller firms and retail customers.

But executives at Bangkok Bank insist that they are committed to resolving the case as quickly as possible, but that it is up to the borrower as well to demonstrate good faith and provide assurances that restructuring conditions will be met.

Quelle: Post 4.11.00

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Thailand aiming to become the "Detroit of Southeast Asia" (12/3/2000)
With an eye on the rebound from 1997`s economic crisis, Thailand is fostering ambitions to become the strategic centre for car manufacturing in a future Southeast Asian common market.

"Thailand is the hub in this region for the automotive industry," said Staporn Kavitanon, general secretary of the Thai Board of Investment.

"We are stressing openness, free trade and competitiveness," he told a delegation of French industrialists recently.

Thailand, which aspires to become "the Detroit of Southeast Asia", has attracted a number of American and European manufacturers.

This year has seen the world number one vehicle maker General Motors, as well as its perennial competitor Ford, begin production here.

Since June, GM has been turning out its Zafira model in a 24 billion baht (643 million dollar) factory at Rayong, southeast of Bangkok. Of the 40,000 units produced annually, 85 percent are destined for export, mainly for Europe and Australia.

At the launch of the Zafira, GM stressed the Rayong plant was "historic" for the Thai car industry, in that European exports were being built entirely on Thai soil for the first time.

As for Ford, it has invested hundreds of millions of dollars in a new assembly line for a saloon car model, a pick-up truck and a mid-range model for its partner, Mazda.

Additionally, Germany`s BMW has recently been assembling two models in its new 3-series range in Thailand.

On the French side, Renault, which owns 36.8 percent of Nissan, has been studying in recent months the possibility of returning to the country by using existing facilities belonging to its Japanese partner.

The Renault marque quit the kingdom and its R19 model assembly plant in 1994.

According to industrial sources in Bangkok, Renault is considering manufacturing the Scenic model in Thailand from 2001.

Following the pioneering involvement of Nissan and Toyota in the 1960s, the Japanese have made the domestic Thailand market their own. Japanese brands represent 92 percent of sales here.

But the 1997 economic crisis and the collapse the next year of consumer demand within Thailand forced the firms to realign their production towards export.

Toyota`s two Thai factories still produce less than half their potential capacity.

In spite of signs of recovery in Thailand, only 245,000 vehicles are likely to be sold in 2000, against initial predictions of 280,000. Sales had reached 218,000 units the previous year, as against 144,000 in 1998.

And in 2001, according to forecasts, sales could fall again to 1999 levels.

Thailand, with its under-utilised industrial capabilities, would seem to be ideally positioned as an export base for a future common market of the Association of Southeast Asian Nations (ASEAN) members, analysts say.

The ASEAN free trade area - AFTA - comes into effect on New Year`s Day 2003. It envisages a reduction in duties to between zero and 5.0 percent for 85 percent of goods traded between Thailand, the Philippines, Indonesia, Brunei, Malaysia and Singapore.

But Malaysia, anxious to protect its own national vehicle, the Proton, has obtained an additional delay, until 2005.

As well as car manufacturers searching out opportunities here, Thailand could also attract European equipment manufacturers seeking economies of scale in their Asian business.

Nicolas Raphael of the French Federation of Vehicle Component Industries said on a recent visit to Bangkok that the AFTA agreement was critical in opening up opportunities for his members.

"The most important thing is the implementation of the AFTA Agreement which would enable us to sell in three or four ASEAN countries from a single base," he said.

"Our industry can only sell large amounts of the highest quality equipment at cheap prices."

(Agencies)Quelle:China Daily Information

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Fall in NPLs slows as new problems arise


THE Thai financial system`s outstanding non-performing loans (NPLs) in October showed a meagre decline of only Bt7.11 billion month on month, as some institutions shouldered rising delinquent loans following the submission of loan-restructuring cases to court.

Samart Buranawatanachoke, director of the central bank`s special-analysis department, attributed the slight drop in the month to rising NPLs in some financial institutions.

"We are monitoring the situation. Preliminary evidence shows these rising NPLs were partly because the institutions submitted some loan-restructuring cases to court, which led to a repayment standstill," he said.

Under the restructuring guidelines, if a case is under court jurisdiction, debtors are required to resume loan repayments only when the court approves the restructuring plan.

As a result, private commercial banks reported a Bt3.5-billion rise in October NPLs from the previous month. Though they succeeded in restructuring Bt14.92 billion in NPLs and reducing NPLs by another Bt5.02 billion through other means, they also encountered Bt9.91 billion in new NPLs while some Bt13.53 billion of restructured loans relapsed as non-performing.

The financial system`s outstanding non-performing loans as of October stood at Bt1.11 trillion, or 22.46 per cent of total loans.

According to the Bank of Thailand`s data, the October NPLs represented a 0.64-per-cent decline from the previous month`s level. Private commercial banks in the month registered Bt531.82 billion in NPLs, or 20.17 per cent of total lending.

State-owned banks` NPLs stood at Bt481.57 billion, or 32.37 per cent of lending, while finance companies` delinquent loans were at Bt56.91 billion, or 34.65 per cent of lending. Foreign banks` branches recorded Bt40.05 billion in NPLs at the end of October, or 6.11 per cent of total lending.

The central bank also reported that in October outstanding restructured loans stood at Bt1.81 trillion. Loans under the restructuring process were worth Bt475.43 billion and involved 77,068 debtors.

Despite the small decline, Samart believed total NPLs would eventually fall further now that commercial banks were writing off some bad loans following their full provisions.

By ANOMA SRISUKKASEM

The Nation 5.11.00

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Lesenswert mit Acrobat Reader: UBS Warburg Analysen

http://www.bday.net/dec04/UBSW-Asia_Research/th041200.pdf

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Lesenswert mit Acrobad Reader UBS Warburg Analyse Halbleiter:

http://www.bday.net/dec06/UBSW-Asia_Research/th061200.pdf

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Wednesday, December 6 9:17 AM SGT

S&P Retains Thailand`s BBB- Rating; Adds Cautionary Note
(This item originally ran at 0857 GMT Tuesday.)
SINGAPORE (Dow Jones)--Standard & Poor`s Corp. Tuesday affirmed Thailand`s BBB- sovereign credit rating, but cautioned the rating "could weaken" if the pace of private-sector reforms slows significantly.

The announcement, which noted various structural improvements in the Thai economy, wasn`t expected to have an effect on local markets when they reopen Wednesday after being closed Tuesday for a public holiday.

"There was nothing disclosed that wasn`t already known, so it will probably be neutral for the baht and Thai stocks," said Syetarn Hansakul, economist at WestLB Bank in Singapore.

In addition to affirming Thailand`s foreign currency rating for long-term bonds and notes, S&P also maintained its "stable outlook" for the country.

S&P has never rated Thailand`s sovereign debt lower than BBB-, which is the minimum credit rating necessary to be considered investment grade, said Takahira Ogawa, S&P`s director of sovereign ratings.

Among the "many constraints" on Thailand`s credit standing is the country`s vulnerability to political changes, S&P said. Thailand`s fragile economic recovery has become a major campaign issue as the Jan. 6 general election approaches.

"A possible change in the government to an untested political party could further delay or jeopardize necessary reforms in the near future," S&P said in a release.

For now, it appears that economic policy and reform efforts in the "medium term" will hold steady no matter who wins the election, according to the release.

"However, the ratings on the sovereign debt could weaken if the pace of private-sector reforms slows significantly, or if alternative non-market proposals by the next government gain widespread public support and undermine the confidence of international markets," S&P continued.

Thailand is at a "critical juncture" in this respect, said Eddie Lee, regional economist at Vickers Ballas in Singapore.

Foreign investors have shown a reluctance to return to Thailand until there is more certainty about the country`s economic and political future, he said.

"There is a worry now that Thailand may begin to fall back. There is a lack of confidence in the management of the economy to some extent, and investors are waiting to see if things pick up," Lee said.

Among the encouraging signs in the Thai economy, according to S&P, are an improvement in its balance of payment outlook, a rebuilding of international reserves and a reduction of short-term external debt.

Thailand also is benefiting from lower barriers to foreign investment, improved bank supervision and lower-than-expected inflation, the agency added.

Constraints to Thailand`s credit standing include political uncertainty, the banking sector`s high level of nonperforming loans, a weakening fiscal position and vulnerability to external shocks from the economy`s reliance on exports, S&P said. -0- 06/12/00 01-17G


Quelle: Yahoo Finance 6.12.00

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NEW ECONOMY

Kings of Content Find It Pays to Wait

While others were chasing Internet plays, Thai entertainment firm BEC World chose a more measured pace in its approach to the digital revolution. Now it`s poised to take a lead


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By Shawn W. Crispin/BANGKOK

Issue cover-dated December 14, 2000


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WHILE ASIA SWOONED with Internet fever earlier this year, the Maleenont family kept their cool. As majority shareholders of entertainment company BEC World Group, which operates Thailand`s leading television station, it wasn`t easy to stay level-headed. But when the digital age finally dawns, BEC`s example may serve as hard proof that it takes a lot of old-fashioned, Old Economy thinking to achieve New Economy success.

At the height of the fever, legions of financial analysts were urging the traditional broadcaster to present a clear road map of how it would incorporate the Internet into its business. In May, a Goldman Sachs report warned that delay could mean "missed opportunities." Merrill Lynch lamented that BEC had "never articulated a clear strategy for the Internet." The investment community`s message was loud and clear: Take the Internet plunge or risk forever languishing in the Old Economy.

The Maleenonts didn`t buy the hype. Sitting on a $100 million nest egg from its 1997 flotation and strong revenues at Channel 3, the nation`s leading TV station, BEC isn`t short of cash. But rather than take the cyber plunge, management instead ploughed nearly 500 million baht ($11.4 million) into what the company knows and does best: Thai-language programming. Now, that investment in the firm`s traditional core business is paying off. Revenue was 2.4 billion baht in the first half of 2000--a 44% increase from a year earlier. As regional Internet shares went into meltdown, BEC rose to the top of the Thai broadcasting market, surpassing its rival, Channel 7, as the most popular television station in Thailand.

`MANAGEMENT WAS RIGHT`
Taking note of the rubble heap of Asia`s failed Internet start-ups, analysts have since changed their tune, singing homilies to the company`s conservative New Economy vision. "The market expected BEC to be one of the prime movers into the Internet," says Peggy Creveling, director of research at Salomon Smith Barney in Bangkok. "Now everyone sees management was quite right not to go into the Internet in a big way."

Even so, BEC has some of the best New Economy prospects in Thailand, if not the region. And that potential is supported by a corporate strategy that many Internet-related ventures dropped with the starting gun--conservative financial management and a commitment to proven revenue-generating activities. That is: Old Economy modus operandi, New Economy outlook, wait-and-see posture.

"I don`t believe we are moving too slow considering the present situation in the domestic market," says Chatchai Thiamtong, vice-president at BEC. "Everybody comes and talks to us about the Internet, setting up Web sites, and so on. But no Internet-related company in Thailand has been successful yet. Why take the risk too early?" There are still only 1 million Thais on-line, most only for e-mail; there are few potential cash-paying customers.

BEC`s example is one that many Southeast Asian companies in underdeveloped Internet markets would be wise to heed. Shallow cyber-markets, poor infrastructure and the general lack of on-line law and security makes taking the Internet plunge a high-risk proposition, regardless of the fear-inducing sales pitches for "e-strategies" from consulting firms. Because the merging of television, mobile phones and the Internet will be achieved in the West first, in Asia a wait-and-see attitude makes better sense than trying to seize the supposed advantages of being the first to act.

Moderate thinking is nothing new to the low-profile Maleenont family, which is known for its conservative nature. And it has served BEC well. Before Thailand`s economic crash in June 1997, the family had resisted the rash investments in real estate that brought most of the country`s elite business families to their financial knees. Instead, the Maleenonts emerged from the economic meltdown as one of the few remaining cash-rich families in the country.

But even given their comparative wealth, they`re charting the way forward for BEC with the utmost circumspection, according to analysts. "BEC has always spent conservatively," says Andy Chan, a telecoms and media analyst at ING Barings in Bangkok. "They think about every baht they spend."

Vice-President Chatchai explains how that conservative streak applies to the Internet: "If you are a content provider, you don`t have to be a pioneer because being a pioneer doesn`t give you much of a reward," he says. "The `first-mover advantage` doesn`t really exist among content-providers. It might exist in terms of infrastructure providers, but we are a different animal."

It`s no surprise, then, that BEC`s New Economy bet, too, is simple and safe: Regardless of how information technology converges, whichever infrastructure provider prevails will need content to feed through its lines, and lots of it.

LOFTY AMBITIONS
The company is already moving into selling content: It has deals with some Thai stations in a joint venture with Hong Kong`s TVB. And it has lofty ambitions for a digital future. "The Internet, broadband, cellular 3G, digital TV--the technology is coming and we don`t want to miss any opportunity," says Pravit Maleenont, senior executive vice-president. "When we adopt broadband, there will be many distribution channels. Then it will become more evident than ever that content is king."

If BEC`s share of the advertising market is a gauge of leadership, then its content reigns supreme. More than other TV stations that still run programmes with a predominantly provincial flavour, BEC has hit on a delicate blend of mass-market appeal spiced with enough sophistication to lure in the higher-spending urban set.

"Advertisers are now pressing for audiences that are better-off and have more spending power," says Chokchai Chintawongvanich, a media and telecoms analyst at Merrill Lynch in Bangkok. He says that bias will be "even stronger" for New Economy applications.

That`s why BEC is fast cultivating a more modish brand name while maintaining its deep pool of loyal customers--critical assets any way you slice the hopes of the digital future. BEC will produce over 1,600 hours of local programming this year, ranging from drama serials to sports programmes and game shows. That makes BEC the largest local-content producer in Thailand.

There are plans to launch upon an even more aggressive production schedule. In 1998, BEC established a new subsidiary, BEC Tero, to develop more Thai-language programmes and films. BEC Tero has hired the country`s leading film producer, Nonzee Nimibutr, to make seven films over three years (see box).

"With its lead in local content, BEC World is sitting on a gold mine once the digital age arrives," says Chan of ING Barings. So far, the Thai stockmarket`s volatility has prevented independent Internet outfits from issuing equity and presenting a challenge to BEC`s local-content leadership. (There are still no dotcoms listed on the Thai bourse.) And those that have taken the venture-capital route are having a rough time making ends meet. Shin Corp., Thailand`s leading mobile-telecom operator, pulled the plug on its Internet incubator, AD Venture, earlier this year after losing nearly 26 million baht in the first quarter. "There is really no risk of being left behind . . . many Thai portals are already quietly drifting away or executing their own deaths," says Chan.

The one firm bet that BEC has placed is that content will be fed digitally. In October, it announced a 4-billion-baht plan to migrate most of its content from analog to a dual analog and digital format. That will facilitate access via satellite, cable and the Internet. The move makes sense as BEC has an eye on pay-per-view television if moves to liberalize Thai media next year allow for advertising. If that happens, BEC`s management hopes to expand its regional reach with a package of multiple pay-TV channels in coming years, building on the current, single station, Channel 3.

All the same, analysts in Bangkok still fail to recognize BEC`s Internet potential in their share-price analysis. Perhaps that`s why BEC recently established a new holding company, BEC I Corp., to act as its Internet subsidiary. So far, the new company has been charged only with "tracking the Internet market`s medium- and long-term prospects." BEC is still "waiting for the market to be ready," according to Kathleen Maleenont, who oversees the start-up.

Slow, calculated, deliberate steps. Judging from BEC`s example, it just might be the right way to approach the New Economy.

Quelle: Far Eastern Economic REVIEW 14.12.00

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Thaksin concedes he may be indicted


ON the eve of his crucial testimony to the National Counter Corruption Commission (NCCC), Thai Rak Thai leader Thaksin Shinawatra admitted for the first time yesterday that he might be indicted by the anti-graft body.

"I don`t think an NCCC ruling will have much political impact [on the election]," Thaksin said. "I believe that the people will pass a judgement immediately. The process has a long way to go. The case would have to go to the Constitution Court and this phase will take many months."

Thaksin had never commented on the possibility of facing a Constitution Court trial before and had always expressed confidence he would be cleared by the NCCC.

Thaksin and his wife will be questioned separately by the NCCC`s investigating committee today in connection with shares they held in 17 Shinawatra empire companies which he failed to declare in his mandatory asset reports to the NCCC in 1997 and 1998.

His political arch-rival, Prime Minister Chuan Leekpai, was also questioned by the NCCC yesterday in connection with Bt100,000 worth of Surat Thani Cooperative shares offered to him for free a few years ago. Chuan did not list the shares in his asset reports, which is required under the Constitution to promote transparency among political office holders.

A smiling Chuan arrived at the NCCC headquarters in the morning accompanied by lawyer Bundit Siriphan, deputy PM secretary-general Niphon Bunyapattaro and two municipal officials from Surat Thani. He was questioned by the NCCC`s investigating panel for about an hour.

Chuan emerged from the meeting still smiling. He said he told the investigating committee he was not aware that "people who had good intentions" transferred the shares to him to mark the opening of the cooperative.

"I told the committee I never applied to become the cooperative`s member, nor have I formally received the shares. I knew nothing about it and I had no intention to conceal my assets," the Democrat leader said.

When asked why the NCCC questioning was relatively quick, the prime minister said: "Maybe it is a small amount of money."

Thaksin and his wife face a tougher grilling today, as they will have to explain two main points: Why didn`t he declare shares worth billions of baht held by his servants whom he admits were his nominees? And, what was the business purpose of making the servants his nominees?

An NCCC source said if the commission could establish the "purpose" of naming the nominees, it would be easier to conclude whether Thaksin "intended" to hide parts of his wealth. Being found guilty by the Constitution Court of such a violation would mean a five-year ban from politics.

The tycoon vowed to give a press conference after his meeting with the NCCC investigators.

"The public needs to know that this is not about corruption, so my supporters have nothing to worry about," he said.

The NCCC source said the investigating committee had looked into the possibility of the nominees being used in order to evade some key stock exchange rules.

For example, on April 9, 1997, Thaksin and his wife were holding a combined 48.75 per cent of Shin Corps shares. But if stocks held by Thaksin`s maids, Duangta Wongpakdee and Boonchu Rianpradab, were taken into account, the amount belonging to the Shinawatra couple would be 53.79 per cent.

This raises the question whether the stock market`s rules on tender offers were violated. For with the couple`s holding of 48.75 per cent, any further acquisition of stocks ought to have been conducted openly through a tender offer to allow other investors an opportunity to sell their shares at a higher premium.

On October 8 of the same year, the couple still held the 48.75 per cent of Shin Corps, but taking shares held by Boonchu, Duangta and another employee, Chairat Chiangpruek, the Shinawatra couple`s stake would jump to 55.59 per cent on that date. Under the stock market`s disclosure law, an individual or company is required to notify authorities about every stock transaction that exceeds 5 per cent, 10 per cent, 15 per cent, 20 per cent and so on.

The Nation
7.12.00

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Bangkok Bank to `own` TPI


UNDER the debt-restructuring plan pending court approval, Bangkok Bank would become the single largest shareholder in Thai Petrochemical Industry (TPI) through a new entity known as Bank Co, Anthony Norman, managing director of Effective Planners, said yesterday.

Bangkok Bank`s US$1-billion (Bt43.6-billion) loan to TPI would be converted to a 28.57-per-cent stake in Bank Co, to be established overseas as a holding company. Creditors would convert $3.8 billion in loans into TPI equity.

"Under the restructuring plan, Bank Co would then hold 75 per cent of TPI`s Bt7.8 billion in capital, which means that [Bangkok Bank`s] indirect investment in TPI is equivalent to 21.42 per cent," Norman said.

Thai banks would hold a 56-per-cent stake in Bank Co, while the rest will be held by foreign creditors, he said.

The Central Bankruptcy Court will continue reviewing the plan on Tuesday.

Following the debt-to-equity conversion, the Leophairatana family, led by TPI chief executive Prachai Leophairatana, would see its stake diluted from 60 per cent to 15 per cent.

The plan, if approved, would bring about changes to the company`s management team. Norman said some executives would definitely be replaced if Bank Co gained control of the management team, but he insisted that no TPI employees would be laid off under the plan.

TPI workers at its Rayong refineries effectively delayed the creditors` vote on the plan through their demonstrations. Although creditors approved the plan on November 27, the workers threatened further protests if creditors could not guarantee their employment and welfare.

Norman said any employee who threatens creditors with a work stoppage could be laid off without compensation.

"Strikes in the petrochemical industry are illegal under Thai law," he said.

Two weeks ago the workers threatened to shut down refineries in protest.

Last week the refineries suspended operations. However, TPI`s executive vice president and chief financial officer, Wachirapunthu Promprasert, said this was due to delayed deliveries of crude oil.

Norman said he was confident the refineries would resume operations on Monday, as the week-long suspension has already cost about Bt55 million, based on the daily output of 75,000 barrels.

Meanwhile, Prachai vowed to file civil and criminal suits against Effective Planners if the court approves the restructuring plan.

"They have caused damage to the company, since being appointed the planner," he claimed.

By law, appeals are possible only with approval from the bankruptcy court.

BY SOMLUCK SRIMALEE

The Nation 7.12.00

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Thai Banks Gear Up to Compete With Foreign-Owned Rivals

Staff Writer
Several leading bankers said yesterday that Thai banks are set to compete well with foreign-owned banks, despite being almost crippled by non-performing loans (NPLs) and a weak capital base.

Chada Vattanasititham, president of Siam Commercial Bank (SCB), said yesterday that efficiency was on a par with that of foreign banks.

"SCB has a close relationship with its customer base. Our customers still choose to bank with SCB, but we will need to address their needs more thoroughly. With new, advanced technology, our costs and operating efficiency is on a par with foreign banks," said Chada.

Despite the cost of carrying non-performing loans, the deterioration of collateral to back loans, excess liquidity, and a weak capital base all adding to the operating expenses of most banks to the point that interest rate spreads are around 1 to 2 percent, most Thai banks are beginning to return to profitability.

Pongsathorn Siriyothin, vice president of Krung Thai Bank (KTB), said while KTB is focusing on reducing overheads, it is being careful not to lose sight of new business opportunities.

"We are focusing on new loans and helping to ensure quality loans do not become NPLs. We are concerned about loan quality and see the potential for a second banking crisis if large amounts of restructured loans turn sour again," said Pongsathorn.

KTB is in the midst of a drive to revamp its standards of customer service.

But some analysts, including rating agency Fitch IBCA, said with dividend payments from Thai banks on the horizon, a return to pre-economic strength may never materialize as foreign-owned banks carve out increasingly large market shares with superior products and services.

Chulakorn Sinhakovin, president of the majority foreign-owned Bank of Asia, said competition among banks is expected to intensify next year as banks have resolved much of their capital requirement and NPL problems.

"I expect banks will have to spend more restructuring the remaining 20 percent of NPLs in the industry, to bring them down to the 10 percent level targeted by most banks, but the benefits of speedy restructuring remain," said Chulakorn. "The question is: will more, healthier banks chasing fewer opportunities result in weaker profit margins?"

According to SCB`s Chada, Thai banks have little time to restructure their operations to keep up with banks such as Bank of Asia which are benefiting from an infusion of foreign banking know-how and global networks.

"These foreign-controlled banks are adjusting themselves at a rapid pace, carving profitable niches for themselves and are ready to compete," said Chada.
Quelle: Bus.day 7.12.00

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Thai Stocks Face Pain if MSCI Chooses `Free-Float`

The embattled stock market is likely to feel further pain if Morgan Stanley Capital International (MSCI) adopts a full free-float system, fund managers and analysts say.

But the impact may be softened because the market has already seen so much foreign selling this year.

Thailand`s weighting is expected to be reduced to between 1.4 and 1.7 percent from 2.2 percent in the MSCI Far East ex-Japan index if the change to MSCI`s methodology goes ahead.

Foreign funds already have minimal to little exposure to Thai stocks.

So far this year the stock market has seen net selling from foreigners of 33.96 billion baht against net sales of 3.13 billion baht for the whole of 1999.

The stock market is one of the worst performers among regional peers with the main composite index down 44 percent so far this year.

"Thailand is likely to be a relative loser because its foreign board is limited," said Justin Simler, head of research team at Merrill Lynch Phatra Securities.

Foreign investors have to buy so-called foreign-board shares in Thailand, usually at a premium to the local price, because of laws limiting foreign ownership of Thai firms to 49 percent.

MSCI will announce its decision on free float adjustment to the constituents of its widely tracked investment indices on December 10 at 1115 GMT.

If MSCI adopts a full free-float system - in which stocks are weighted using the number of shares available for open trade instead of on the basis of market capitalization - it would reduce the weightings of those companies whose shares are not wholly in public hands.

"That would reduce Thailand`s weighting in the benchmark portfolio. If the full free-float methodology is implemented immediately, Thailand`s weighting will fall to between 1.6 to 1.7 percent," Simler said.

SG Asia Securities says Thailand`s MSCI market capitalization will be cut by 50.83 percent to $7.48 billion if MSCI adopts the free-float system with changes to country and individual stock weightings.

But analysts said some blue chips are likely to gain from the change, as their weightings in the MSCI Thailand index may get a boost.

They expect foreign board shares of the country`s largest telecoms conglomerate, Shin, and Ratchaburi Electricity Generating Holding, to be included in the index after a free-float change.

In addition, the overall banking sector could benefit from a change to free float, Merrill`s Simler said.

The banking sector has the heaviest weighting in the main index, comprising about 25-30 percent of total market.

Bangkok Bank is expected to gain while Siam Commercial Bank, which has a smaller free float than Bangkok Bank, is a potential loser.

Potential losers are television operator BEC World, energy firm PTT Exploration & Production and mobile phone firm Advanced Info Service.

"Some brokerage firms expect the weighting of Advanced foreign board shares will be reduced to eight percent from 15 percent. BEC World will be hardest hit, followed by PTTEP," said Maris Tarub, managing director at fund manager ING Mutual Funds Management (Thailand).

The weighting of TelecomAsia foreign board shares is also expected to be cut to 6.71 percent from 7.12 percent.

Analysts said the change should put more pressure on the stock market but its impact should be limited as most fund managers have already adjusted their portfolios.

"Basically, foreigners have been unloading Thai stocks for all this year. It should not cause any panic," said Supakanya Visetbhakdi, senior investment manager at Ayudhya Jardine Fleming Asset Management.

Supakanya said the MSCI Thailand index has fallen by 50 percent so far this year and further downside risk should be limited.

"We will not make a major change after the MSCI change," she said. - Reuters 8.11.00

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TPI Claims Debt Plan Endorsement May Force Interest Payment Default

STAFF WRITER
THAI Petrochemical Industry (TPI) has claimed it may be forced to default on a 600 million baht interest payment due in January if its creditors endorse the debt plan.

The Central Bankruptcy Court has set December 12 as the date on which it will rule on TPI`s appeal against the debt retructuring plan.

Vachirapan Plomprasert, TPI`s vice president, said the plan, drwn up by Effective Planner, called for a two-thirds cut back on crude, a move that will reduce refining capacity from 215,000 barrels a day to 75,000 barrels.

Vachirapan said if Effective Planner`s debt plan is endorsed, the company stands to lose 350 million baht a day as a result of lost production, which will force the firm to default on the 600 million baht interest payment.

If Effective Planner does not revise its plan, the company will be forced to default on the interest payment, and forced bankruptcy and asset liquidation may ensue, Vachirapan concluded.

To make matters worse, he said, TPI has been forced to halt refinery production since December 1 because of a shortage in crude stock, and expects delivery only on December 11.

The company said the delivery will be enough for another 10-14 days, after which it will have to halt operations again.

"Intermittent operation reduces efficiency because we can run the factory at only 70 percent of total capacity," Vachirapan said.

In response to TPI`s comments, Effective Planner`s managing director, Anthony Norman, insisted that TPI will be able to service the interest payment because revenue from downstream products such as plastic and polymer will compensate for losses from the refinery.

In addition, TPI is still loaded with overstock products from its non-core businesses that may be sold for supplemental revenue, Norman said.

Norman told reporters that if the debt plan continues to meet with resistance from TPI management, it may become necessary to remove them to clear the way for debt-restructuring.

Creditors of TPI, the country`s largest corporate debtor, voted on November 26 in favor of the plan to restructure the company`s $3.7-billion debt. But founder Prachai Leophairatana appealed in court that the debt plan favored the creditors. Consequently, the court scheduled a hearing for December 12.

TPI was ruled insolvent by the Central Bankruptcy Court in March but its management was allowed to remain in control until creditors agreed on a rehabilitation plan.

The creditors rejected attempts by Prachai to continue to oversee TPI`s recovery and voted to appoint a professional rehabilitation planner to sort through the petrochemical firm`s debt.

Prachai has been vehemently opposed to the restructuring plan, which will see his stake in TPI reduced to about 14 percent as creditors swap interest owed for equity.

The case, seen as a test of Thailand`s amended bankruptcy laws, has dragged on for three years.

TPI suffered massive financial losses when the government`s failed defense of the baht left the company struggling to cope with ballooning foreign currency-denominated debts.

Back to headline | Comments to Editor

FIDF To Issue mof-Backed Bonds in Mid-Jan 2001

Staff writer
IN A BID to improve cash flow at the Financial Institutions Development Fund (FIDF), the Ministry of Finance (MOF) has said that the FIDF will issue a new batch of MOF-guaranteed bonds by the middle of January next year.

Sommai Phasee, deputy permanent-secretary of the MOF and chairman of the FIDF`s Debt Supervisory Board, said he could not confirm the total value of the bonds, but said that the FIDF`s cash flow situation would be greatly improved if it can generate the targeted 50-100 billion baht from the issuance.

As of September 30 this year, total accumulated FIDF losses stood at 207 billion baht.

Sommai also said that so far the FIDF had failed to come up with a clear-cut strategy to generate capital.

"We will have to take into account several factors, such as market sentiment, concentration of public debt and overall economic performance," he said.

Sommai disclosed that the idea of issuing short-term bonds as a means to improve cash flow has been discussed but has not yet been finalized because more thorough consideration was needed on a number of levels.

"Right now, I think the market can absorb only about five to six billion baht worth of bonds per week. Also, we have to look at the status of the budget deficit, not to mention state enterprise capitalization," he said.

Sommai was positive, however, that the new batch of MOF-guaranteed bonds will be warmly received by the public.

Quelle: Bus.Day 8.12.00

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Corruption tops list of voter concerns


CORRUPTION, drugs and high oil prices were identified as the most pressing problems in a nationwide public survey conducted by Thammasat University and the Nation Group.

The poll also indicated that the Thai Rak Thai Party could win as many as 31 seats in Bangkok, while the Democrat Party would only grab six.

The poll surveyed 96,025 respondents in 268 of the country`s 400 electoral constituencies. It was conducted from November 25 through December 2.

The survey indicated that Thai Rak Thai leads in both constituency and party-list voting, but the figures could not be confirmed because residents of several provinces, particularly in the South, could not be surveyed.

However, it was clear that people everywhere regarded corruption and vote-buying as the biggest problems in the political arena, while drugs, crime and lack of education were cited as the biggest social problems. High oil prices, unemployment and poverty ranked as the top three economic concerns.

The poll indicated that 59.7 per cent of voters would vote for people based on their knowledge and education, while only 15.4 per cent would vote for former MPs, and just 10.2 per cent for those with patronage.

In the party-list voting, 39.2 per cent of the voters would vote for the same parties as those of their favourite constituency candidates. However, 46.1 per cent indicated that they would vote for different parties in the constituency and party-list votes.

Of those surveyed, 52.8 per cent said they understood the new constituency electoral system well, while 36.2 per cent said they understood it reasonably well.

Forty-eight per cent said they understood the party-list system well, while 37.6 per cent said they understood it reasonably well.

The survey indicated that among the constituencies surveyed, the Thai Rak Thai Party would win the most seats, or 190. A recent nationwide poll conducted by the Interior Ministry indicated that Thai Rak Thai would win 160 seats.

The Nation

LAST MODIFIED: Friday, 08-Dec-00 THE NATION

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Thaksin blames secretary


THAI Rak Thai leader Thaksin Shinawatra admitted yesterday that he failed to declare some of his assets before taking a Cabinet seat in 1997, but denied any intentional wrongdoing and blamed his secretary for the omission.

Thaksin, in his long-awaited testimony before the National Counter Corruption Commission (NCCC), sought to make "intent" the core of his defence, saying that the undisclosed shares, which were held by nominees, had a value of Bt600 million, merely 2.5 per cent of the his total wealth.

He argued that the holdings, if they had been disclosed, would not have had an impact on his political appointment or his business dealings. Hence there was no reason for him to deliberately conceal them.

Thaksin, who faces a five-year ban from politics if he loses the case, further insisted that any errors in the asset statements were the fault of the family secretary, who prepared the paperwork. Thaksin said the secretary was not aware of changes made to the anti-graft law in the period when he took up the government position and when he left office.

As for the purchase of the Alpine Golf Course, which Thaksin also failed to report, the decision to appoint nominees was in conformity with accepted business practices in order to avoid complicating the debt-restructuring negotiations, he said.

Thaksin`s wife, Pojamarn, and SC Asset president and family secretary Surathien Jakranon also gave statements to the NCCC.

NCCC chairman Opas Arunin said the team investigating the Thaksin case would meet twice next week to review the evidence before making a ruling on the charge that Thaksin had submitted false asset statements.

Thaksin arrived for his morning appointment at NCCC headquarters accompanied by 15 ranking party members and legal experts.

Those in Thaksin`s entourage included former judge Pongthep Thepkanchana, former Constitution Drafting Assembly chairman Uthai Pimchaichon, former finance minister Surakiart Sathirathai and lawyer Somporn Pongsuwan.

Only Pongthep was allowed to accompany Thaksin during the hearing. Pojamarn and the rest of Thaksin`s team waited in the reception room.

NCCC member Khunying Preeya Kasemsant na Ayutthaya, also chairwoman of the subcommittee investigating the case, chaired the hearing during Thaksin`s testimony.

After two-hours of testifying, Thaksin emerged smiling and immediately left for his office at Shinawatra Tower.

Pojamarn and Surathien gave their statements in the afternoon.

Thai Rak Thai executives turned out in full force to greet Thaksin as he returned to his office. Party deputy leader Sudarat Keyuraphan presented him with a heart-shaped picture frame, symbolising the full support of the party.

After a working lunch with party executives, Thaksin opened the press conference by reading a prepared statement reiterating his intention to serve the country.

He then turned over the microphone to Pongthep and other legal experts to explain the legal technicalities surrounding his share transactions.

The party leader admitted he failed to declare his shares and those of his wife and children that were held by nominees.

As a deputy prime minister in the Chavalit Yongchaiyudh government, Thaksin was required to file three asset statements - one at the time of his appointment in November 1997, another at his departure from the government in December, and the last one year after leaving office in December 1998.

Speaking in Thaksin`s defence, Surakiart said the Shinawatra family secretary had prepared the first two statements in accordance with the anti-graft law.

The third statement was filed after an amended law had been in force less than five months. The family secretary had not been aware of a change in the rules that nominee holdings must also be declared, Surakiart said.

Surakiart claimed that the majority of the nominee holdings, worth about Bt600 million, belonged to Pojamarn.

He did not specify whether the assets were part of Thaksin`s conjugal properties.

Thaksin transferred most of his business interests to his wife because he wanted to enter politics, Surakiart said.

Pongthep said there was no reason for Thaksin to try to conceal his wealth.

"Thaksin has demonstrated that his shares held by nominees were honestly earned," Pongthep said. "He also declared in his asset statements filed with the NCCC that all the funds relating to share transactions came from Pojamarn`s banking accounts."

Uthai said he was confident that Thaksin had explained himself successfully to the NCCC.

"The spirit of the Constitution is to condemn corruption and punish corrupt politicians. And I am confident that Thaksin is not corrupt," Uthai said.

Before concluding the press conference, Thaksin said he would push ahead with his party campaign. He refused to name a successor should he be indicted.

Speaking after his testimony with the NCCC, Surathien said he was responsible for recommending that Thaksin and his wife appoint nominees.

"I admit it`s my mistake that has brought about so much trouble for Thaksin," he said.

Surathien said the nominee holdings that he arranged for the Shinawatra family conformed with the law and business practice.

"I regret to this day that I didn`t quite understand the law and the mandate of the NCCC. I think in terms of business and regret that my recommendation has caused problems for the country and Thaksin," he said.

He also said he was ready to take responsibility for the errors in Thaksin`s asset statements.

Democrat leader Prime Minister Chuan Leekpai declined to speculate if his rival would be indicted.

"Regardless of what might or might not happen, the Democrat Party will not change its campaign strategy, which is aimed at explaining the real situation to the people," he said.

Academic Prayad Hongthongkham said he doubted Thaksin would be able to escape indictment.

The NCCC had indicted former senator Prayuth Mahakitsiri for his failure to declare Bt400 million, Prayad said. With the Prayuth case as precedent, Thaksin faces the same verdict, he said.

BY PIYANART SRIVALO and

SUKANYA LIM

The Nation

LAST MODIFIED: Friday, 08-Dec-00

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Greenspan`s hints save bond market


THE Thai bond market has been unexpectedly pulled back from the verge of collapse following an altered stance in US monetary policy.

Federal Reserve Board Chairman Alan Greenspan turned himself into "Santa Claus" last week, prepared to give the American public a Christmas present.

Not only American but Thai financial authorities, bankers, and institutional holders of Thai government bonds have been given breathing space as a possible rate cut in the US next year would save them from anticipated massive losses.

Greenspan`s speech last Tuesday made it clear that the Fed was adopting a "neutral" stance from a "biased" one, his first hint of a possible rate cut after seven consecutive hikes in US discount and Fed fund rates since mid-1999.

The present discount rate, applied for long-term loans to banks, is 6.5 per cent while the Fed fund rate, applied to short-term borrowing, is 7 per cent.

Rate hikes in the US widened the discrepancy with Thai rates. It was anticipated earlier that, without a reduction in the US rate, Thailand would need to jack up domestic interest rates around mid-2001 to stem capital outflows.

An expert in the Thai capital market, who asked not to be named, said that if domestic rates were to be increased by a percentage point to narrow the discrepancy, bond yields would fall accordingly.

"The falling prices would lead to massive losses on the part of financial institutions, including commercial banks, insurance companies and fixed-income funds," he said.

All along the authorities borrowed time to prevent disaster by lending low-rate funds to financial institutions in a bid to maintain low domestic rates. The bank rate, which the Bank of Thailand charges borrowers, is 4 per cent at present.

The financial authorities are very concerned about the US monetary policies, for if they remain tight, rate hikes will be unavoidable for Thailand. That would affect the bond market and result in capital losses to commercial banks, which hold a large amount of government bonds. It is estimated that in a two-year period over Bt500 billion worth of government bonds have been issued. The losses would further pressure the banks, struggling with large non-performing loans, to raise capital.

Greenspan`s speech about falling consumption in the US, however, brightened the horizon. American analysts and dealers expect that the Federal Open Market Committee (FOMC) will at its December 19 meeting offer a clearer sign of a "neutral" monetary policy. They are also convinced, based on the sharp decline in the economy in the third quarter, that US rates will be cut in March to prevent a hard landing.

The International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development anticipate that the US economy will grow only 3.5 per cent next year, down from 5 per cent this year. Consequently the two international organisations believe that Fed fund rate could be jacked up by 50 basis points to reduce pressure on growth and inflation.

The US central bank itself projected earlier that tight monetary policy would bring the 2000 economic growth down to 4 or 4.5 per cent and the 2001 level to 3.25 or 3.75 per cent, based on forecast inflation levels of 2.5 or 2.75 per cent this year and 2 or 2.5 per cent next year.

Yet that could not avert negative effects from skyrocketing share prices, especially when the Nasdaq within six months dropped from a peak of 5,300 points to about 2,500 at present. That was why US investors hailed Greenspan`s notion that US rates could be cut. The Dow Jones Industrial Average rose 338 points or 3.21 per cent on December 5, while the Nasdaq gained 274 points or 10.48 per cent.

BY VATCHARA CHAROONSANTIKUL

The Nation 11.12.00

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STREETWISE: Masters of the universe in a divided world


EVEN on Wall Street there is a widening gap between the haves and have-nots, and it`s that revered institution the annual bonus that is causing the problem.

As the festive season gets into full swing, securities firms are preparing to boost the bonuses of their top investment bankers and traders by 20 to 25 per cent, according to executive recruiters.

But executives in less-profitable lines of business, such as junk-bond operations, are likely to see a smaller annual windfall than in previous years.

"This is a year where everyone will be much more discriminating in how they compensate than in the past," said Gary Goldstein, president of Whitney Group, a Wall Street executive-search firm. "We`re heading into murky waters."

The problem for big Wall Street firms: lines of business that produced huge profits earlier this year, such as telecommunications, banking and Internet initial public-stock offerings, have all but dried up.

Meanwhile most of these firms are projecting a continued profit decline for their bond operations, the Wall Street Journal reports.

Bonuses are big news on Wall Street this time of year.

Unlike in corporate America, securities-industry bonuses typically represent as much as 90 per cent or more of an executive`s total pay package.

Next week three major investment firms, Goldman Sachs Group Inc, Morgan Stanley Dean Witter and Co and Lehman Brothers Holdings Inc, will announce bonuses to employees. Merrill Lynch and Co will announce bonuses internally in mid-January.

Despite the likelihood of an overall rise in bonuses, the possibility of lower pay-outs is a big topic of conversation on Wall Street these days.

Executive recruiters say that investment bankers, particularly those in the now stagnant telecom and technology areas, are concerned that their bonus cheques will be slashed quite drastically, particularly as the markets continue to tumble.

"More firms will be sending messages to their employees in the form of no bonuses whatsoever," said Joan Zimmerman, executive vice president of G Z Stephens, an executive-recruitment firm. "For the first time since the beginning of the bull market there will be lay-offs" of executives who don`t meet management`s expectations.


* * *
Hanoi trail

VIETNAM continues to make steady progress in modernising its financial industry with yesterday`s passage by its National Assembly of the country`s first law on insurance, including a framework covering the operation and licensing of insurance firms and brokerages with foreign investment.

The law will empower the government to regulate the required capital levels for these firms with effect from April 1, 2001, Reuters quoted the Vietnam News Agency as reporting.

The new law covers life insurance, assets and civil liabilities. A senior National Assembly official said last month that while the law was aimed at stimulating the insurance market, foreign insurance firms would have to follow a "road map". Under a bilateral trade agreement Vietnam signed with the United States in July that is expected to be ratified next year, Hanoi agreed to gradually open its insurance market to joint ventures and wholly owned US firms in three to six years.

In October Vice Finance Minister Tran Van Ta was quoted by official media as saying that Vietnam would not approve any new wholly foreign-owned insurance firms in coming years.

Vietnam has five insurance joint ventures with foreign firms and four wholly owned foreign companies, three of them in life insurance. Local media have forecast revenues in the sector of US$212 million (Bt9.22 billion) this year, a growth of 44 per cent compared with 1999.


* * *
A bite of the Big Apple

THE rule of law continues to safeguard business and financial communities in developed countries. There is little doubt that corporate governance in these countries is rigorously enforced, reducing investors` risks. Perhaps the Thai business community and Thai authorities can learn from another insider case in New York.

Yesterday the jury in a federal court in Manhattan found four defendants liable but exonerated three others in a civil insider-trading case in connection with the $3.5-billion takeover of Lotus Development Corp by International Business Machines Corp in 1995.

In mid-1999 the Securities and Exchange Commission alleged 25 people had reaped more than $1.3 million in illegal profits based on confidential information that had come from a former secretary at IBM`s Somers, New York, office.

The SEC argued that investors who traded on inside information violated securities laws, even if they received the information from someone several times removed from the original source of the tip.

In this case, the SEC said, the IBM takeover information was conveyed at six or seven removes, including friends, relatives and co-workers.

The Nation 11.12.00

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Aus dem SEAMICO Forum:

Monday, December 11, 2000 11:34:21 AM]
Subject : MSCI.......Close SET
Message : Finally, the revised weightings have come out and now our media is taking a hypocratic role that these won`t count anymore as there has been lots of unloading in recent days. If this is the case why not close down our SET. I can give all of you a job in sub saharan country as a daily worker? Agreed.... This market sucks by the way, lets shut down the business, or follow Dr. Mahatir who shown the world that MSCI does not matter, market can grow on its fundamentals. WHY WE ARE LIVING AT THE MERCY OF FARANG CAPITAL.......DO WE SEE THE WHITE COLOR OVER THERE TOO? SHAME ON US...........

Name/E-mail : A... farmer....





[Monday, December 11, 2000 3:11:29 PM]
Message : Totally agreed with you , A... farmer. And in addition, MSCI latest weight will be taken in to effect by almost the end of 2001. who cares. see the NIKKEI today?????? as the example/ For SET, i am following strictly what is LG CAPITAL INVESTMENT FUND are accumulating. LOOK at TA ,and CPF as the latest samples. CHEERS

Name / E-mail : [e-mail]

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TPI Claims Debt Plan Endorsement May Force Interest Payment Default

STAFF WRITER
THAI Petrochemical Industry (TPI) has claimed it may be forced to default on a 600 million baht interest payment due in January if its creditors endorse the debt plan.

The Central Bankruptcy Court has set December 12 as the date on which it will rule on TPI`s appeal against the debt retructuring plan.

Vachirapan Plomprasert, TPI`s vice president, said the plan, drwn up by Effective Planner, called for a two-thirds cut back on crude, a move that will reduce refining capacity from 215,000 barrels a day to 75,000 barrels.

Vachirapan said if Effective Planner`s debt plan is endorsed, the company stands to lose 350 million baht a day as a result of lost production, which will force the firm to default on the 600 million baht interest payment.

If Effective Planner does not revise its plan, the company will be forced to default on the interest payment, and forced bankruptcy and asset liquidation may ensue, Vachirapan concluded.

To make matters worse, he said, TPI has been forced to halt refinery production since December 1 because of a shortage in crude stock, and expects delivery only on December 11.

The company said the delivery will be enough for another 10-14 days, after which it will have to halt operations again.

"Intermittent operation reduces efficiency because we can run the factory at only 70 percent of total capacity," Vachirapan said.

In response to TPI`s comments, Effective Planner`s managing director, Anthony Norman, insisted that TPI will be able to service the interest payment because revenue from downstream products such as plastic and polymer will compensate for losses from the refinery.

In addition, TPI is still loaded with overstock products from its non-core businesses that may be sold for supplemental revenue, Norman said.

Norman told reporters that if the debt plan continues to meet with resistance from TPI management, it may become necessary to remove them to clear the way for debt-restructuring.

Creditors of TPI, the country`s largest corporate debtor, voted on November 26 in favor of the plan to restructure the company`s $3.7-billion debt. But founder Prachai Leophairatana appealed in court that the debt plan favored the creditors. Consequently, the court scheduled a hearing for December 12.

TPI was ruled insolvent by the Central Bankruptcy Court in March but its management was allowed to remain in control until creditors agreed on a rehabilitation plan.

The creditors rejected attempts by Prachai to continue to oversee TPI`s recovery and voted to appoint a professional rehabilitation planner to sort through the petrochemical firm`s debt.

Prachai has been vehemently opposed to the restructuring plan, which will see his stake in TPI reduced to about 14 percent as creditors swap interest owed for equity.

The case, seen as a test of Thailand`s amended bankruptcy laws, has dragged on for three years.

TPI suffered massive financial losses when the government`s failed defense of the baht left the company struggling to cope with ballooning foreign currency-denominated debts.

Quelle: Bus.day 11.12.00

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Thai Stocks Face Pain if MSCI Chooses `Free-Float`

The embattled stock market is likely to feel further pain if Morgan Stanley Capital International (MSCI) adopts a full free-float system, fund managers and analysts say.

But the impact may be softened because the market has already seen so much foreign selling this year.

Thailand`s weighting is expected to be reduced to between 1.4 and 1.7 percent from 2.2 percent in the MSCI Far East ex-Japan index if the change to MSCI`s methodology goes ahead.

Foreign funds already have minimal to little exposure to Thai stocks.

So far this year the stock market has seen net selling from foreigners of 33.96 billion baht against net sales of 3.13 billion baht for the whole of 1999.

The stock market is one of the worst performers among regional peers with the main composite index down 44 percent so far this year.

"Thailand is likely to be a relative loser because its foreign board is limited," said Justin Simler, head of research team at Merrill Lynch Phatra Securities.

Foreign investors have to buy so-called foreign-board shares in Thailand, usually at a premium to the local price, because of laws limiting foreign ownership of Thai firms to 49 percent.

MSCI will announce its decision on free float adjustment to the constituents of its widely tracked investment indices on December 10 at 1115 GMT.

If MSCI adopts a full free-float system - in which stocks are weighted using the number of shares available for open trade instead of on the basis of market capitalization - it would reduce the weightings of those companies whose shares are not wholly in public hands.

"That would reduce Thailand`s weighting in the benchmark portfolio. If the full free-float methodology is implemented immediately, Thailand`s weighting will fall to between 1.6 to 1.7 percent," Simler said.

SG Asia Securities says Thailand`s MSCI market capitalization will be cut by 50.83 percent to $7.48 billion if MSCI adopts the free-float system with changes to country and individual stock weightings.

But analysts said some blue chips are likely to gain from the change, as their weightings in the MSCI Thailand index may get a boost.

They expect foreign board shares of the country`s largest telecoms conglomerate, Shin, and Ratchaburi Electricity Generating Holding, to be included in the index after a free-float change.

In addition, the overall banking sector could benefit from a change to free float, Merrill`s Simler said.

The banking sector has the heaviest weighting in the main index, comprising about 25-30 percent of total market.

Bangkok Bank is expected to gain while Siam Commercial Bank, which has a smaller free float than Bangkok Bank, is a potential loser.

Potential losers are television operator BEC World, energy firm PTT Exploration & Production and mobile phone firm Advanced Info Service.

"Some brokerage firms expect the weighting of Advanced foreign board shares will be reduced to eight percent from 15 percent. BEC World will be hardest hit, followed by PTTEP," said Maris Tarub, managing director at fund manager ING Mutual Funds Management (Thailand).

The weighting of TelecomAsia foreign board shares is also expected to be cut to 6.71 percent from 7.12 percent.

Analysts said the change should put more pressure on the stock market but its impact should be limited as most fund managers have already adjusted their portfolios.

"Basically, foreigners have been unloading Thai stocks for all this year. It should not cause any panic," said Supakanya Visetbhakdi, senior investment manager at Ayudhya Jardine Fleming Asset Management.

Supakanya said the MSCI Thailand index has fallen by 50 percent so far this year and further downside risk should be limited.

"We will not make a major change after the MSCI change," she said. - Reuters 11.12.00

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Thai Stocks Face Pain if MSCI Chooses `Free-Float`

The embattled stock market is likely to feel further pain if Morgan Stanley Capital International (MSCI) adopts a full free-float system, fund managers and analysts say.

But the impact may be softened because the market has already seen so much foreign selling this year.

Thailand`s weighting is expected to be reduced to between 1.4 and 1.7 percent from 2.2 percent in the MSCI Far East ex-Japan index if the change to MSCI`s methodology goes ahead.

Foreign funds already have minimal to little exposure to Thai stocks.

So far this year the stock market has seen net selling from foreigners of 33.96 billion baht against net sales of 3.13 billion baht for the whole of 1999.

The stock market is one of the worst performers among regional peers with the main composite index down 44 percent so far this year.

"Thailand is likely to be a relative loser because its foreign board is limited," said Justin Simler, head of research team at Merrill Lynch Phatra Securities.

Foreign investors have to buy so-called foreign-board shares in Thailand, usually at a premium to the local price, because of laws limiting foreign ownership of Thai firms to 49 percent.

MSCI will announce its decision on free float adjustment to the constituents of its widely tracked investment indices on December 10 at 1115 GMT.

If MSCI adopts a full free-float system - in which stocks are weighted using the number of shares available for open trade instead of on the basis of market capitalization - it would reduce the weightings of those companies whose shares are not wholly in public hands.

"That would reduce Thailand`s weighting in the benchmark portfolio. If the full free-float methodology is implemented immediately, Thailand`s weighting will fall to between 1.6 to 1.7 percent," Simler said.

SG Asia Securities says Thailand`s MSCI market capitalization will be cut by 50.83 percent to $7.48 billion if MSCI adopts the free-float system with changes to country and individual stock weightings.

But analysts said some blue chips are likely to gain from the change, as their weightings in the MSCI Thailand index may get a boost.

They expect foreign board shares of the country`s largest telecoms conglomerate, Shin, and Ratchaburi Electricity Generating Holding, to be included in the index after a free-float change.

In addition, the overall banking sector could benefit from a change to free float, Merrill`s Simler said.

The banking sector has the heaviest weighting in the main index, comprising about 25-30 percent of total market.

Bangkok Bank is expected to gain while Siam Commercial Bank, which has a smaller free float than Bangkok Bank, is a potential loser.

Potential losers are television operator BEC World, energy firm PTT Exploration & Production and mobile phone firm Advanced Info Service.

"Some brokerage firms expect the weighting of Advanced foreign board shares will be reduced to eight percent from 15 percent. BEC World will be hardest hit, followed by PTTEP," said Maris Tarub, managing director at fund manager ING Mutual Funds Management (Thailand).

The weighting of TelecomAsia foreign board shares is also expected to be cut to 6.71 percent from 7.12 percent.

Analysts said the change should put more pressure on the stock market but its impact should be limited as most fund managers have already adjusted their portfolios.

"Basically, foreigners have been unloading Thai stocks for all this year. It should not cause any panic," said Supakanya Visetbhakdi, senior investment manager at Ayudhya Jardine Fleming Asset Management.

Supakanya said the MSCI Thailand index has fallen by 50 percent so far this year and further downside risk should be limited.

"We will not make a major change after the MSCI change," she said. - Reuters 11.12.00

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Money-laundering laws cause some sleepless nights


In the second of a three-part series, K I Woo explains why some financial institutions are concerned about their obligations under the new money-laundering laws.

The money-laundering laws and regulations enacted at the end of October are a topic of major concern for the country`s financial institutions.

Under the new legislation, the nation`s financial institutions are specifically required to report transactions exceeding certain financial and subjective suspicion-thresholds, to the Money-Laundering Suppression Office. These include:

-- Cash transactions over Bt2 million;

-- Swift or Bahtnet money transfers over B2 million;

-- Purchases of securities over Bt2 million;

-- Property transactions over Bt5 million;

-- Insurance-policy purchases over Bt2 million;

-- Suspicious transactions - no amount specified.

Any financial institution failing to report these transactions will be subject to a fine of Bt300,000 per omission. Persons convicted of filing a false report are subject to a Bt500,000 fine, or two years in prison.

Timothy Wales, an American lawyer and consultant with the Tilleke & Gibbins Group, said that although most of the monetary-threshold reporting requirements were straightforward, many Thai financial institutions were scared of the laws requiring employees to report suspicious transactions.

"Nobody knows how the requirements are going to be enforced," he said.

Many bank officials have told The Nation the money-laundering reporting requirements have become a public relations nightmare. To be certain, many banks are telling their staff to err on the safe side.

At a recent Thai-Canadian Chamber of Commerce luncheon, one member said he had been required by his bank to file a money-laundering report, even though the transaction only involved a cash withdrawal of Bt1,900,000.

Although the customer may have met the under-Bt2-million non-reporting threshold, the bank official may have chosen to report the transaction to ensure no Money-Laundering Suppression Committee official could claim he should have considered if the transaction was suspicious.

In today`s business environment, where the customer should always be right, banking leaders are concerned about the negative impact with customers.

Wales, who has had extensive experience in the US dealing with that country`s money-laundering laws, suggests banking officials should ensure that staff evaluate transactions using the following criteria:

lBank officials should review any overly-complicated transaction which deviates from normal practice. "Transactions which are overly complex, and have many layers of seemingly unnecessary participants, should raise a red flag," he said.

lAny transactions which fail to make economic sense should also be questioned. Although requiring what may be a fairly subjective analysis, Wales said management would not do any harm by ensuring that their staff were aware of the problem.

lAn even more subjective requirement - and potential public relations nightmare - is the legal obligation on financial institutions and their staff to report transactions in which the money is suspected of coming from one of seven targeted illegal activities. "This is where it gets scary for banks, and particularly the people who are required by the law to report the transaction," Wales said.

For instance, in the US, financial institutions are required to report any cash transactions of US$10,000 (Bt435,000) or more. Wales said that drug dealers in the late 1980s began using "smurfs" - faceless messengers - who deposited $9,000 into thousands of bank accounts. The regulations were subsequently amended to require banks to report transactions which they had reason to believe had been enacted to circumvent the $10,000 reporting requirement.

Under the new Thai legislation, banking officials will probably be obligated to require anyone depositing a series of Bt1.9-million transactions to file a Money-Laundering Suppression Office report, even though the transaction did not violate the Bt2-million reporting threshold.

If a bank employee fails to report the transaction, he or she may face the wrath of the new law, which specifically imposes a fine of up to Bt200,000, or a jail term of up to 10 years, on anyone convicted of aiding a money launderer. In addition, a false report can bring a Bt500,000 fine or two-year jail term. Moreover, the institution itself may be subject to a Bt300,000 fine for failing to file a reportable transaction.

The new tough penalties for financial institutions and employees who fail to file reportable transactions are worrying senior managers.

Despite the dilemma, Wales said banks were now routinely reporting a mountain of daily transactions to the Money-Laundering Suppression Committee. "A bank executive recently said there were about 300,000 deposits and withdrawals every day in excess of the Bt2-million level," he said.

BY KI WOO

The Nation

LAST MODIFIED: Monday, 11-Dec-00 10:14:02 EST

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Caution urged over Cal-Comp


CAL-COMP Electronics (Thailand), the third company to be listed this year, is expected to be well received by both local and international investors, but analysts warn that everything might not come up trumps.

Despite its average annual sale`s growth of 40-50 per cent, on top of its anticipated Bt1.24 billion profit this year, analysts were concerned that the Taiwanese-controlled print circuit board manufacturer still showed heavy debts on its balance sheet.

In addition, Cal-Comp also leaves itself open to financial risk by offering advanced credit, where there is the risk of clients failing to meet their debt obligations, they said.

However, Kritsana Ownsuwan, an investment banker from ABN Amro Asia Securities, the lead underwriter for Cal-Comp`s initial public offering, is bullish over its future prospects.

He said global electronics business still has room for significant growth, expected to be between 30-35 per cent next year, though such growth would be lower than in past boom times when it reached 50 to 60 per cent.

He said Cal-Comps has shown impressive sales growth figures and was expected to post revenue of Bt33 billion this year, up sharply from Bt19 billion in 1999.

Due to the higher revenue, the company needs to give advanced credit to its clients. Currently, Cal-Comps` short-term debt is about Bt4-Bt5 billion.

Last Thursday, Cal-Comps sold all 30 million of its new shares on the first day of its initial public offering. Priced at Bt30, the shares were perceived as relatively cheap compared to those in the same sector in the region. The first day of trading is expected to be early next year.

However, some analysts recommended short-term investment for the stocks.

Chanpen Sirithanarattanakul, an electronic analyst of Nava Vickers Ballas Securities, is one of them, raising concern that Cal-Comps still runs a negative cash flow. Although she did admit that electronics sector looks relatively favourable and there was a high potential that the company could catch up with the global upturn.

"If Cal-Comps fails to get its money back on schedule from its clients it will certainly face higher financing costs as it will have to borrow to ensure adequate cash reserves," she said.

The company`s debt-to-equity ratio after the recapitalisation has dropped to around 2:1 from about 3:1 prior the capital hike. But Chanpen expected that ratio to rise as the company plans to borrow approximately US$100-$200 million (Bt4.33 billion-Bt4.66 billion).

Sasikorn Charoensuwan, head of Philippe Securities (Thailand) Plc`s research department, said that investors should think before buying Cal-Comps` shares as a long-term investment even though its IPO price is low when compared with other stocks in the regional markets.

She said Cal-Comps` price to earning ratio is relatively high at 6.6.

BY SIRIPORN CHANJINDAMANEE

The Nation

LAST MODIFIED: Monday, 11-Dec-00 10:13:56 EST

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Aus dem SEAMICO Forum:

Thursday, December 07, 2000 1:25:29 PM]
Subject : LG INVESTMENT CAPITAL TO START BUYING TA-F, CPF AGAIN TODAY
Message : got the news from this website, and also at pantip.com Seamico, how do you percieve this????? Answer quickly, By the way, there is a report in The Manager Daily yesterday about the current investment of this Korean Giant funds on Thai stocks. www.manager.co.th -- 6 December, 2000

Name/E-mail : efinancethai.com Reply





[Thursday, December 07, 2000 4:31:46 PM]
Message : who do these LG guys trade through...anyone know?

Name / E-mail : anon





[Friday, December 08, 2000 5:19:58 AM]
Message : who cares, just see today what will be the battes going on between them. Go up? or Falling down ? by the way, it is not that fun cause i did not have any TA

Name / E-mail : [e-mail]





[Monday, December 11, 2000 11:35:51 PM]
Message : I am one among thousands of Thai nominees who were assigned to accumurate Thai Individual Stocks for this Huge Korean Funds - LGCIS, the wholly owned Business Unit group of LG Group of Korea. I just want to reconfirmed that every certain individual stocks bought and announced publicly by LG CAPITAL INVESTMENT INC. were being done to make the most transparency to the Thai Publics. There is by no means of any intensions to persuade any other investors to follow at atll. LGCIS recently made huge profit from selling and reducing the stakes holding in Nasdag, and the Dow. Approximately around 100 million US dollar were their full profits. And they recently will partly utilize this huge profits to invest in the SET, for at least 2 years investment. Current status as of December 8, 2000 ( total porfolios owned by thousands of its thais, and foreigners` nominess ) 1. TA-F -- 20 MILLION SHARES 2. CPF -- 3 MILLION SHARES 3. NPC - 2 MIILION SHARES 4. BANPU - 4 MILLION SHARES 5. PL - 1 MILLION SHARES 6. TA - 5 MILLION SHARES 7. PTTEP - 1 MIILION SHARES 8. HANA - 1 MIILION SHARES Recently unloading DELTA Since early November, 2000 to 0 numbers of shares as reported in The manager Daily, dated 6/12, 2000. Reason were also given. For any interested persons who would like to learn more about LG GROUP , please go to www.lgusa.com This is not the indications for anyone to buy or sell any certain stocks. Lastly, MSCI latest reduction of SET would by no means effecting the contiunuity of LG group to accumurate certain Thai stocks at all.!!!!!!!!!

Name / E-mail : LG emplyees in Thailand

[Watcher100]

@ body G

Kannst Du auch mal Deine in english gefaßten Publikationen
analysieren und kommentieren?

So long

WATCHER

[BodyG]

Tuesday, December 12 3:13 AM SGT

Thai Banking Grp Chmn Sees Momentum For Sector Reforms
NEW YORK (Dow Jones)--Proposals for reforming the banking sector in Thailand have been gaining new momentum, Chulakorn Singhakowin, chairman of the Thai Bankers Association, said Monday.
The government could either create a national asset management company, which would buy bad loans from banks and work out their difficulties, or it could open up the banking sector to foreign owners, said Singhakowin at a "Financing For Development" forum being hosted by the United Nations.

As the world bellyaches about how global markets will perform next year, Thailand has been feeling more pressure to create a national asset management company or AMC, said Singhakowin.

A number of political parties have been campaigning ahead of Jan. 6 elections to create a central AMC instead of the current government`s approach to let banks set up their own private AMCs.

Thai central bank Governor Chatu Mongol Sonakul said last month, though, that he wasn`t convinced such a plan would be more efficient than the current system.

But Singhakowin said the Thai banking sector`s vulnerability will be reduced if a government body takes responsibility for bad loans.

The country`s banking sector has languished since 1997, when the Asian financial crisis hammered markets and sent many Thai companies deeper into debt.

Since then, no foreign banks have set up shop in the country. Current laws also prevent market-driven mergers and acquisitions.

Singhakowin said that making the Thai banking system friendlier to foreigners would demand not only technological and regulatory changes, but also "cultural transfer."

Thailand once permitted foreign banks full ownership, but now only about 10% of the banking sector is foreign-owned.

"I think the issue (of foreign ownership) will be debated over the course of the next few months," Singhakowin said.

If the existing foreign banks in Thailand make their presence felt, then the debate will heat up, he added.

"The entrance of foreign banking into Thailand is sensitive," he said.

Nonperforming loans in Thai private sector banks stood at 20.17% of total lending in October and at 32.37% in state-owned banks.

By Sonja Ryst; Dow Jones Newswires; 201-938-2245; [e-mail]

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Norway`s Telenor Refutes Report It Paid Bribe In Thailand
OSLO (Dow Jones)--Norwegian telecommunications company Telenor ASA (TELN) denied Monday that the company had paid a bribe to gain entry to Thailand`s mobile market.
Earlier Monday, members of the Norwegian parliament called for an investigation after local business daily Dagens Naeringsliv reported over the weekend an unexplained NOK1.8 billion ($1=9.2025) payment by Telenor, allegedly to gain entry into Thailand`s mobile market. The payment - believed to be tied to Telenor`s acquisition of a stake in Thailand`s Total Access Communication PCL (H.TOA) - was made to a company listed at a post office box address, the paper reported.

Telenor said the payment was made to acquire shares in TAC and in United Communications Industry, or UCOM, which holds 40% of TAC. The shares were acquired from Credit Suisse First Boston.

Telenor said confidentiality agreements had prevented this information from being released earlier.

Telenor holds 24.9% of UCOM and a direct holding in TAC of 30%. .

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THE WEEK IN REVIEW

SET Seen Stagnant, Awaits Results of TPI Debt Plan Ruling

The Thai stock market is expected to slip this week, with much of the focus on a bitter battle over the restructuring of Thailand`s biggest corporate debtor, Thai Petrochemical Industry (TPI).

Uncertainty over the US$3.8 billion debt deal for TPI will keep investors cautious, and trading is likely to remain thin, especially as yesterday was a market holiday.

The composite SET index ended up 0.98 points or 0.36 percent on Friday at 273.69 on turnover of 2.14 billion baht. The index fell 0.06 percent on the week.

"The outlook is still bearish," said Namchai Techaratanaviroj, strategist at Philip Securities.

But analysts said they expected little immediate impact on the SET from an announcement by Morgan Stanley Capital International (MSCI) on Sunday that it would adjust its influential benchmark stock indices next year.

MSCI said it would change the composition of its stock indices to reflect the amount of stock freely available for all investors in two phases from November 30, 2001 and May 31, 2002.

MSCI provides one of the most widely used stock index series.

Its switch to a free float system - weighting stocks on the basis on shares available for open trade instead of using market capitalization - is likely to hit Thailand.

Thai weightings will be reduced because many Thai firms have two types of shares: foreign shares that can be bought by anyone, and local ones, reserved only for Thais and Thai institutions.

But the change has been widely anticipated and is already well discounted in the market.

Padermpob Songkroh, senior analyst at Jardine Fleming Thanakom Securities in Bangkok, said the MSCI change was unlikely to have much impact soon on the Thai market.

"There is nothing exciting here because the implementation is from the end of next year and most foreign investors have already reduced their exposure to the Thai market," Padermpob said.

Sukit Udomsirikul, analyst at Capital Nomura, agreed:

"I don`t think the MSCI will do much to the market as it won`t happen for a while. The market also needs more detail on the weightings for the country and the region," he said.

MSCI said it would publish the constituents of its indices by June 30, 2001.

Thailand`s weighting in MSCI`s Far East ex-Japan index is widely expected to be reduced to between 1.4 and 1.7 percent from 2.2 percent after the MSCI change, analysts said.

"After MSCI adopts the free-float system, the impact should be portfolio adjustment by tracker funds, which are likely to further reduce investment in Thai stocks," said Namchai.

Analysts expect foreign board shares of the country`s largest telecoms conglomerate, Shin Corp, and Ratchaburi Electricity Generating Holding, to be included in the index after the change. One of the losers could be local television operator BEC World.

Analysts said the market would be watching closely this week to see what happens to plans to restructure TPI`s debt, seen as a test case for Thailand`s commitment to tackle its bad loans.

Thailand`s central bankruptcy court is due to rule on TPI`s debt deal today after a delay due to an appeal against the plan by TPI founder and chief executive Prachai Leophairatana.

"TPI case is a test for the efficiency of the Thai bankruptcy court," said KGI Securities One strategist Pichai Lertsupongkit.

Analysts said political uncertainty ahead of the January 6 general election would also weigh on the Thai market.

"The market is likely to remain in the doldrums until we get a new government next year," said Samarn Trongwaranon, head of equities at fund manager BOA Asset Management.

Telecoms tycoon Thaksin Shinawatra is well ahead of Prime Minister Chuan Leekpai in Thai opinion polls despite a probe into his assets by the country`s anti-graft agency.

Thaksin denies any wrongdoing, but if he is found guilty of concealing assets he faces a five-year ban from politics.

Achara Ob-ai, technical analyst at BNP Paribas Peregrine Securities, said the Thai benchmark index was likely to have a downside bias with support at 262 points after it closed below the 10-day simple moving average of 278 points.

However, some analysts expect a short term rebound with resistance at 275 and 280 points. - Reuters 12.12.00

[BodyG]

Hallo Watcher100,
ich sehe es als eine Art finanzpolitische Presseschau,
Analysen überlasse ich besser den Profis:
http://bday.net/dec12/UBSW-Asia_Research/th121200.pdf" target="_blank" rel="nofollow ugc noopener">http://bday.net/dec12/UBSW-Asia_Research/th121200.pdf
zu BLCP
http://bday.net/dec12/Seamico_Research/PPPC121200-E.pdf zu PPPC
http://bday.net/dec12/Thailand_Daily/scb1200.pdf zu SCB
Zum Lesen ist der AcrobatReader erforderlich

deutsche Postings findest Du doch reichlich bei WinnyCashs Thailandnews und Max Rolands Forum.
Um alle Texte nochmal auf Deutsch einzutippen bin einfach zu faul.
Ich habs früher schon mal erwähnt: Solange es ca. 100 Zugriffe täglich gibt, werde ich es weiterführen, andernfalls hör ich wegen fehlendem Interesse wieder auf.

MfG

[BodyG]

Neues zu TPI aus dem SEAMICO Board:

Tuesday, December 12, 2000 2:50:46 PM]
Subject : TPI - Coout delays vote......AGAIN
Message : As if we needed any further stalling on this important issue....the Thai Bankruptcy Court has delayed the ruling on TPI`s approved debt restructuring deal with creditors. No time frame has been given for when a ruling will take place. Apparently, TPI management object to the Judge presiding over the case. Obviously, TPI has taken the US election fiasco as an example and is determined to find any number of reasons to stop the agreement being implemented.......a more short-sighted stance is difficult to imagine. This may mean the approved plan is ineffective when, and if, it finally gets approved....thus more delays as the plan is amended again. Unbelievable.,.....and a sure killjoy for a hoped-for pre New Year market rally. Start the holidays now.

Name/E-mail : [e-mail] Reply





[Tuesday, December 12, 2000 4:32:34 PM]
Message : ununderstanable, indeed. how can they let a single lunatic let the whole thai businessworld and economy hold as a hostage. and how often do we hear the word "unfair" from his mouth. they should do with him just as he would do with anybody owing him money: PAY OR SHOOT!!!!!

Name / E-mail : bert





[Tuesday, December 12, 2000 5:13:56 PM]
Message : Given the fees that Effective Planner is pulling out of the process they should be the ones who should be shot for not finding a way to gag "the lunatic" in the first place. Perhaps now is the time to really put the company into bankruptcy and liquidate all assets. Then the thousands out of work and on the streets can really wonder who they should thank for all this. Gotta admit, the MSCI boys, the rating agenicies and all ex-Thailand investors from the fund management side have got it right this time.

Name / E-mail : tprice





[Tuesday, December 12, 2000 7:37:01 PM]
Message : would be another solution worth while to think about. at least

Name / E-mail : bert





[Tuesday, December 12, 2000 10:03:51 PM]
Message : CNBC says that the judge will make his decision on the petition at 1pm Wednesday, and if he goes against the petition the court should make their ruling on the Effective Planner "Plan" immediately.........(immediately has many meanings here in SE Asia)

Name / E-mail : boonchai

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Traders want say in policies


MARKETING executives have called for a dialogue with the next government on the planning and implementation of economic policies, arguing that broad-based representatives of the private sector should have more say in the future of the country.

They said the economic management of the country has been dominated by a handful of private-sector organisations which do not represent all the members of the local business and economic community.

Kanok Abhiradee, president of the Thai Merchant Association, said that although the new constitution has encouraged broader public participation in the management of the country, traders, businessmen and marketing executives have not yet had a proper say in the future of the country.

He said the private sector should have more say in formulating the national economic and social development plan, presently being drafted by the National Economic and Social Development Board, a government think-thank.

"We should play a greater role in pointing out problems and solutions," Kanok said.

So far the Thai Bankers` Association, the Federation of Thai Industries and the Board of Trade of Thailand are the most powerful private-sector organisations, with great lobbying power regarding the country`s economic planning. Their representatives sit on the Joint Public-Private Consultative Committee chaired by the prime minister, which determines the key economic policies.

"Executives, traders, marketers and other businessmen should play a greater role - through their central bodies - in the decision-making to tackle the country`s economic problems," Kanok said. The central bodies include associations and other economic clubs.

The Thai Merchant Association will hold its first-ever corporate hearing on retail business policy this month to discuss problems in the sector.

Apirak Kosayodhin, president and chief executive of Grammy Entertainment, added: "The government should encourage a market mechanism that promotes free competition. This will help foster business growth and create confidence among local and foreign investors."

He said the next government should also address problems clearly, both fiscal and monetary, and give the business sector priority in the revival of the economy.

"Local business should be encouraged to produce value-added products and make full use of the abundant resources. Other regulations, such as on e-commerce, will also have to be streamlined to keep pace with the new business environment, otherwise we`ll be left behind in this region," Apirak said.

Piyawat Titasattavorakul, managing director CP Seven Eleven, said the economic and political situations, both external and internal, would affect the retail business sector significantly next year.

External factors like the global and US economic slowdown and the high oil price which will affect Thailand`s economic recovery need cautious handling by the next government. But on the domestic front, Piyawat said, the government should aim to tackle high retail oil prices, exports, bad debts in the banking sector, public sector debts, the slump in farm prices and political stability.

BY KWANCHAI RUNGFAPAISARN

The Nation 13.12.00

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Promises cold comfort for public


CONSUMER confidence in the economic outlook for the next six months is moderate and showing few signs of improving, said Sauwanee Thairungroj, dean of the economics faculty at the Thai Chamber of Commerce University.

"The new economic packages promised by rival parties have contributed to a slight improvement in consumer confidence," she said.

According to the consumer-confidence index compiled by the university`s faculty last month, 52 per cent of consumers believed that economic conditions would hold steady over the next six months, while 35 per cent said they would worsen, and 13 per cent said they would improve.

The index for the next six months rose to 89.2 in November from 87.3 the previous month. However, it has been below 100 for 11 consecutive months, indicating that consumers are still worried about the recovery being sustained.

Consumer confidence in the country`s current economic health was still relatively low, but up slightly to 70.6 per cent in November from 69.1 in October.

"We could say that the low has been passed, but it is too early to say that confidence has returned because the index is still below 100," Sauwanee said.

Consumers were also worried about job opportunities. Fifty-nine per cent said the situation was at its worst, while 35 per cent said they believed things would get worse still over the next six months.

Regarding the prospects for future income, 61 per cent of consumers said that their income would not change, while 19.6 per cent foresaw lower income and 19.2 per cent thought their income would grow.

Given these attitudes, consumers will be cautious about spending, Sauwanee said.

Sauwanee said she expected that consumers would have more confidence in the economy after the general election on January 6. "However, it will also depend on whether the new government announces good policies," she said.

Meanwhile, Thanavath Phonvichai, director of the Centre for Economic and Business Forecasting, predicted that economic growth next year would slow down to 4.3 per cent from an estimated 4.6 per cent this year.

The slower growth would reflect a slowdown in export expansion, which is expected to be 7.5 per cent next year after reaching nearly 20 per cent this year. A slowdown in the US economy would be a key factor, he said.

Thanavath said he also believed that domestic consumption and investment remained stagnant, so the next government will need to run a fiscal deficit to maintain the recovery`s momentum.

The centre forecast that import-growth would be 11 per cent next year, compared to 33.3 per cent this year. The trade and current-account surpluses next year would fall to 2.2 and 4.4 per cent of GDP, respectively, from 3.8 and 6.1 per cent.

Meanwhile, inflation was expected to rise to 2.6 per cent from the estimated 1.7 per cent this year. The projection was based on an assumption of crude price oil of US$25 (Bt1,087) per barrel and an exchange rate of Bt42 against the dollar, he said.

BY WITCHIT CHAITRONG

The Nation 13.12.00

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Thumbs up for Shin debentures


THAI Rating and Information Services Co yesterday affirmed its rating for Shin Satellite Plc`s Bt3 billion senior debentures at BBB-plus.

The rating incorporates an improvement in the company`s transponder utilisation and its strong market position for satellite communication in Indochina. The rating also takes into consideration expected benefits from the iPSTAR Project, which will be commercially launched in early 2003, though that will cause its leverage to rise.

Stiff competition in the satellite industry, together with regulatory uncertainty in connection with the liberalisation of the telecommunications industry, partially counterbalances the company`s strengths, the ratings report said. Shin Satellite reported a fair financial status for the third quarter reflecting its improved cash-flow position and a comfortable earnings before interest tax dividend and amortisation interest coverage at 5.1 times compared with 3.48 times in 1999. Funds-from-operations-to-total debt increased from 25.08 per cent for 1999 to 26.74 per cent for the first nine months of 2000. Despite its operating margin dipping to 60.66 per cent in the third quarter this year, its pretax return on permanent capital improved to 11.64 per cent for the first nine months of 2000.

The Nation 13.12.00

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Despite sale, SCIB still aims to cut NPLs


EVEN though the Bank of Thailand has decided to delay the privatisation plan of Siam City Bank (SCIB), the ailing bank will continue its attempt to recover assets by targeting non-performing loans (NPLs).

Kulthon Nakaporm, senior executive vice president, said yesterday that the top priority for the bank next year would be to reduce the level of NPLs by 25 per cent, or Bt50 billion, through debt restructuring with its borrowers.

He added that as of October the nationalised bank`s level of NPLs stood at 52 per cent of total lending.

"Last month SCIB lost about Bt200 million, thanks to debt restructuring with large-scale borrowers", Kulthon said. Earlier the bank had been losing "about Bt300 million per month", he said.

Thai authorities have failed in attempts to sell stakes in the bank, nationalised in 1998. The latest bidding for the bank was cancelled because the offers of the two bidders were not acceptable to the government.

Thirty to 40 branches could be merged next year as part of the bank`s effort to reduce operational costs by 20 per cent, Kulthon said. SCIB has 210 branches nationwide.

"We`re considering that wherever SCIB`s branches do not make a profit we will merge them together", he said.

For example, SCIB`s branch at Thaniya cut its rental area by half, resulting in a cost reduction from Bt1 million a month to Bt500,000.

However, the bank has no plans to lay off staff, Kulthon said.

It does plan to spend less on water, electricity and petrol.

Kulthon said that next year the bank aimed to increase its revenues by offering more loans to small and medium-sized businesses.

He said the bank expected to offer about 50 per cent of its total lending to small businesses. Total lending was expected reach about Bt7 billion to Bt10 billion next year, he said.

SCIB, Kulthon said, will consider increasing its banking fees, which account for about 10 per cent of total revenue. In recent years non-interest income represented Bt100 million to Bt200 million before dropping to between Bt40 million and Bt50 million last year.

BY NARANART PHUANGKANOK

The Nation 13.12.00

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COMPANY REPORTS:


SINOTHAI ENGINEERING AND CONSTRUCTION says it will not pay dividends for a period of five years to further ensure creditors that it can meet debt-restructuring obligations.

As part of the obligations, it will finance new construction work on a project-finance basis, not by using working capital.

Under the deal with 75 creditors to restructure Bt5.07-billion-worth of loans, its subsidiary SinoThai Construction Service Co will cease operations in order to save costs and pool resources.

The entity itself needs to be retained as it still has some pending contracts with the Bangkok Metropolitan Authority, under which it will receive payments, the company said.

The debt-restructuring plan was approved in August for full implementation in April next year. It requires the company to raise new capital through the issue of 55 million new shares. Five million shares will be offered for sale to majority shareholders at Bt20 each.

Creditor will be offered 50 million shares.

They can convert Bt3.5-billion-worth of loans into shares for Bt70 a share.

The restructuring includes an extension of the debt-repayment period to December 30, 2006, cash repayment and outstanding interest forgiveness.


* * *
RATANA REAL ESTATE recorded a net loss of Bt1.85 billion last year, compared with a net loss of Bt427.4 million in the previous year.

The audited annual loss represents Bt22.45 per share, compared with Bt5.28 per share in the previous year.

The shares were last traded on August 21, 1998, at Bt0.70. The company has been suspended from share trading since then.


* * *
SIAM COMMERCIAL NEW YORK LIFE INSURANCE has appointed executive vice president Andrew Soh Yong Kok as head of its individual life-policies division. Executive vice president Tareepan Teepasiri will take charge of information technology.


* * *
VIBHAVADI MEDICAL CENTER has named Maj-General Suriya Phalakornkul as its acting managing director due to the prolonged sickness of Lt-General Kovit Putthkayon.

The appointment has been effective since December 8 and will last until Kovit is able to resume his duties.


* * *
KR PRECISION says it has sold the 236.41 million ordinary shares offered to existing shareholders for Bt945.64 million.


* * *
CAPETRONIC INTERNATIONAL (THAILAND) has received an injection of Bt387.91 million from the sale of 87.44 million shares to existing shareholders.


* * *
SANSIRI has received Bt25 million from the sale of five million ordinary shares to BankThai. Those shares have been sold at Bt5 apiece.

Sansiri said that the remaining 1.04 billion units will also be offered further via private placement.


* * *
THE STOCK EXCHANGE OF THAILAND will suspend trading in the RUANG KHAO HIGH INCOME FUND from December 19 to December 22, as the fund is about to reach its maturity.

Thai Farmers Asset Management Ltd said it requested the trading suspension after setting a closing date of December 22 for holders to decide whether to hold or redeem their unit trusts.

The Nation 13.12.00

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Court puts TPI plan on hold


PRACHAI Leophairatana, chief of the debt-ridden Thai Petrochemical Industry (TPI), won another legal manoeuvre yesterday when the Central Bankruptcy Court postponed a decision on a restructuring plan approved by creditors.

Prachai petitioned the Supreme Court, the Judicial Commission and the Chief Justice of the Bankruptcy Court, seeking the removal of all judges presiding over the bankruptcy proceedings of TPI and its subsidiaries and having the case considered by a new panel of judges.

In his submission, Prachai criticised the judges for allegedly failing to treat him fairly in their deliberation of the bankruptcy proceedings. He also accused the judges of having vested interests with the creditor banks, removing their legitimacy to adjudicate on the bankruptcy cases.

Prachai`s latest tactic to delay the TPI rehabilitation plan is unprecedented in the Central Bankruptcy Court, founded last year to speed up corporate debt restructuring.

His petition against the presiding judges is based on Articles 11, 12 and 13 of the Civil Codes. The Chief Justice of the Bankruptcy Court has agreed to consider the petition, setting a hearing for 1pm today.

There was no indication how long the hearing would take. The judges deliberating the TPI case are Kaisorn Bari-uaychai, Chote Chongsa-nguan, Was Laksanalertkul and Sunthorn Sithivejvijit.

TPI, which operates Southeast Asia`s largest petrochemical complex, owes its creditors US$3.8 billion. Prachai, battling to keep control of the company, has fiercely objected to the rehabilitation plan, arguing that it benefits the creditor banks and does not treat him and the employees fairly.

The Central Bankruptcy Court was scheduled yesterday to hold a hearing into the TPI rehabilitation plan, which had been drafted by Effective Planners and approved almost unanimously by the creditor banks. But Prachai`s petition has caused the hearing to be delayed further.

Prachai submitted his petition to the Supreme Court and the Judicial Commission on December 8. Article 11 of the Civil Codes permits a defendant to request a change of judge if it emerges that the judge might cause damage to the case or the judge might have shared benefits with another party. Article 12 and 13 are related provisions that permit a change of judges.

"This marks the first time in the bankruptcy and civil code proceedings that there has been a request for a change in judges through Articles 11, 12 and 13," said Kitipong Urapeepatanapong, a partner at Baker & McKenzie, which advises Effective Planners.

Prachai is apparently hoping to delay the TPI bankruptcy proceedings until a new government is formed or the bankruptcy and foreclosure laws are amended to give more favour to debtors. Some members of the newly-elected Senate have already expressed their intention to amend the bankruptcy and foreclosure laws to protect the interests of Thai debtors.

Prachai`s petition said the judges in question presided over the bankruptcy proceedings of TPI and six subsidiaries - Thai ABS Co Ltd, TPI Oil Co, TPI Aromatic Co, Thai Polyurethane Co, TPI Power Co and TPI Polyol Co Ltd.

In his petition, Prachai said Effective Planners` rehabilitation plan demands that TPI reduce its oil refinery capacity from 125,000 barrels a day to 75,000 barrels a day, a move that would cause damage to the company. He also claimed that the rehabilitation plan calls for a change of insurance company, which would see TPI`s insurance premium rising from Bt50 million to Bt80 million.

BY SOMLUCK SRIMALEE

The Nation 13.12.00

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NCCC allows Thaksin two more witnesses


THAI Rak Thai leader Thaksin Shinawatra has received permission to have two witnesses testify on his behalf before the National Counter Corruption Commission (NCCC), extending the investigation into his share transactions beyond this week`s deadline.

The move is being seen by many as a tactic by Thaksin to stall the NCCC`s ruling on his share transactions until after the January 6 elections.

Preeya Kasemsant na Ayutthaya, chairwoman of the NCCC subcommittee investigating the Thaksin case, said that she would summon two private secretaries employed by Thaksin`s wife, Pojamarn.

An NCCC official identified the two secretaries as Kanchanapa Honghern and another woman known only by her nickname, Poo.

In his testimony last Friday, Thaksin claimed that the two secretaries had not understood the new provisions in the anti-corruption law relating to nominees when they prepared the paperwork for his three asset statements and those of his wife.

Subcommittee member Wirat Wattanasiritham said that while giving his statement, Thaksin asked for the two secretaries to be allowed to testify as well. To ensure fairness, the subcommittee agreed to hear the two witnesses, Wirat said.

Preeya and Wirat said they would aim for a speedy conclusion of the investigation but declined to set a date.

NCCC chairman Opas Arunin earlier suggested that the subcommittee should wrap up the investigation by this week. Opas said the full NCCC would need no more than two meetings to issue a ruling after it received Preeya`s report.

Opas said the rulings on investigations into asset statements filed by Prime Minister Chuan Leekpai and Deputy Prime Minister Banyat Bantadtan should not be linked together.

The NCCC rulings will be made on a case-by-case basis as each case is completed, he said.

Democrat Tavorn Senniam yesterday accused Thaksin of trying to distract attention from his case by pointing out that all of his assets have been earned lawfully. The true issue was whether Thaksin had filed a false asset statement, and not how he had earned his assets, Taworn said.

Thaksin yesterday denied speculation that he might endorse New Aspiration Party secretary-general Wan Muhammad Noor Matha as the next prime minister if he is indicted by the NCCC.

The Nation 13.12.00

[BodyG]

Pin resuming extradition battle in UK


LONDON - Pin Chakkapak, former president of Finance One Plc, will return to a British court on Friday to fight an extradition charge filed by the Thai government, which handed additional documents to the defendant yesterday.

The British court has already reduced charges against him related to the alleged embezzlement of more than Bt2.1 billion from the now-defunct Finance One at a hearing last June and July.

The Thai government, represented by Helen Malcolm, presented more documents to the court at yesterday`s hearing.

The judge ruled that the hearing would not determine whether Pin had violated any Thai laws but whether charges could be considered under the extradition treaty between Thailand and Britain.

Pin also argued in court that the translation of the latest document might be "unreliable" while the Thai government`s lawyer said that both translated versions were correct.

The hearing will resume on Friday with the Thai government represented by Michael Lawson.

"I am confident that we will win," said Pin, who attended court yesterday.

Pin was arrested by British authorities last December at the request of the Thai government after he left Bangkok to move to New York.

Pin, a naturalised US citizen, has denied that he fled Thailand to avoid charges related to his financial dealings when he was president of Finance One.

He earlier won a reduction in charges since the British court found that the charges fell outside the extradition treaty.

Pin appeared to be well prepared yesterday, showing up in court with a public-relations team.

Pin, once known as the "takeover king" during Thailand`s boom years, maintains the Thai authorities are making a scapegoat of his for the economic crisis.

BY NATTAWUT PRATUANGSILPA

The Nation 13.12.00

[BodyG]

YOUR EDITORS` VIEW: Keep the cheque, Khun Banharn


WHEN the story emerged over the weekend that Kaopinyo Co, a logging firm, had contributed Bt25 million to the Chat Thai Party`s coffers, the initial reaction from party leaders, all the way from Banharn Silapa-archa down, was one of detached nonchalance.

Was there a legal problem? Did the company have a foreign ownership exceeding 25 per cent (which would have broken the law on donations to political parties)? The party chiefs shrugged their shoulders, saying: "How should we know? Do you expect us to check every incoming contribution? It`s not our duty to do so. Let others do it . . . "

The following day, the tone changed dramatically. The party`s chief administrator, Nikorn Chamnong, held a press conference to say what amounted to: "Yes, we do check every contribution that comes our way. We double-checked the cheque from Kaopinyo Co Ltd and found that the day the contribution was made, the foreign shareholder in the company, Rochelle Finance Co, registered in the famed tax haven of the British Virgin Islands, held only 22 per cent of the equity in the company." Banharn said later the same day that everything was above board but he had sent the cheque back to the contributor anyway. Why? He says he wanted to put an end to the issue so that it wouldn`t be "politicised" to tarnish his party`s reputation.

Chat Thai has returned the contribution for the wrong reason. If the party is convinced that there was nothing illegal about the donation, it should not have been returned, as doing so can only suggest lingering doubts and raise questions.

Why politicians complain about an issue being "politicised" is always a puzzle. But to "depoliticise" this particular controversy, Banharn should have kept the money, insisting that this was part of the much-heralded political reform.

Now, at least, we know who is financing whom in the upcoming election. The whole behind-the-scenes story won`t come out just yet, of course. But for those business associates fed up with being the subject of unjustified gossip and determined to claim credit they think they deserve, making political donations public should be a perfect opportunity to make known their patronage of a particular political party.

For the sake of political reform, keep the cheque, Khun Banharn. Now, we know which business concerns are backing which political parties. Public scrutiny of possible conflict of interest between politics and business will be much more vigorous. Keep all the donations, Khun Banharn. Perhaps you are as interested as we are in trying to find out whether those companies expect any political favours in return for their generous gesture. Khun Pongpol Adireksarn, your former secretary-general, has cast doubts on their motives, indicating that some of the donors had in fact been doing business with the Agriculture Ministry which has been under Chat Thai`s influence over the past few years.

Say it ain`t so. Prove him wrong, Khun Banharn. Returning the money could send the wrong message. We need your confirmation to retain faith in this historic political reform.

BY SUTHICHAI YOON

GROUP EDITOR-IN-CHIEF

The Nation 13.12.00

[offLimitsLtd.]

Endlich mal kein dummes Gesülze.
Diese Art von Informationen würde ich mir viel öfter wünschen, auch aus anderen Regionen Asiens.
Weiter so, kann ich nur sagen und: Hoffentlich bleibt BodyG uns erhalten.

[BodyG]

Hallo Ihr zahlreichen Leser meiner Postings,
ein besonderes Danke an die sich namentlich = Sugar1, suade, Frakt@l und OffLimitsLtd positiv geäußert haben.
Ich bin aber nicht der geistige Vater dieser Art der Gestaltungsweise von Informationen. Mir war das bei den Thailand News von Winny vom Dentist( abgesehen von seinen gelegentlichen Entgleisungen)(was macht der eigentlich?) aufgefallen, dass er ab und zu redaktionelle Beiträge aus Quellen reingestellt hatte, die ich nicht kannte oder ich einfach zu faul war, das alles jeden Tag abzuklappern.
Natürlich ist die Bewertung subjektiv - was ist für alle interessant - was nicht.
Aber den SET selbst lass ich wohl besser raus, weil da ja wohl jeder zuerst nachschaut.
Na dann auch noch mal zum besseren Verständnis auch für Dich Watcher100: Ich will nur Infos zur Beurteilung von Tendenzen oder möglichen Entwicklungen bereit stellen, beeinflussen will ich niemand. Die Beiträge ansich beinhalten ja schon eine redaktionelle Einschätzung der Ereignisse und die kommen in der Regel auch ohne meine Kommentare aus. Obwohl ich sicherlich meinen Senf nicht immer nur auf der Wurst plazieren werde :-)

MfG

[BodyG]

ACHTUNG: alter Beitrag


Betreff: Thai Wahlen
Geschrieben von: BodyG am Mittwoch, 1 November 2000, um 4:59 p.m.


aus Far Eastern Economic Review 2.11.00

THAILAND

Open Door for Election Chaos

Instead of strengthening democracy, the coming Thai elections may produce a constitutional crisis, and a chance for conservatives to block reform


--------------------------------------------------------------------------------

By Shawn W. Crispin/BANGKOK

Issue cover-dated November 2, 2000


--------------------------------------------------------------------------------

THAILAND`S CAMPAIGN of political reform is heading into dangerous territory. The general election that must be held this year increasingly looks set to spark a crisis, which some conservatives believe will be their chance to suspend the 1997 constitution and its bold democratic reforms.

The crisis is looming because the constitution says parliament must be convened within 30 days of a general election. But the chances of that look poor. Because of repeated allegations of vote-buying, Thailand`s first Senate elections earlier this year took four rounds and nearly five months to complete. In the general election, the financial stakes will be higher and 500 seats, instead of the Senate`s 200, will be up for grabs. A post-election political logjam therefore appears almost certain--especially as recent amendments aimed at streamlining the electoral process appear likely to prove ineffective.

The constitution doesn`t clearly state what happens when its provisions are broken. And it is that vagueness that conservative former senator Bhoonsak Wanabongse, who was one of the few parliamentarians to vote against the 1997 constitution, hopes to exploit.

"More and more people are asking if the new constitution is taking us in the right direction," says Bhoonsak, who teaches constitutional law at Ramkamhaeng University in Bangkok. "When you have high expectations and they are not met, you want to throw away the constitution, burn it. People expect a lot from this constitution and they are not getting what they expected."

Those deflated expectations, he says, put him at the vanguard of "a silent majority" of formerly appointed senators, bureaucrats and other conservatives who want to temper the pace, and in some areas reverse the course, of political reform. He says that in the event of an electoral crisis, the growing group plans a "technocratic coup d`état" against the constitution, using constitutional provision 317, which vaguely outlines criteria for the creation of a transitional authority before a newly elected parliament can be convened.

Bhoonsak hopes this would lead to a "transitional government of national unity" with the prime minister appointed by King Bhumibol Adulyadej. Usually above the fray of day-to-day politics, Bhumibol last intervened in a political crisis in 1992 when he twice appointed Anand Panyarachun as a transitional prime minister before new elections.

It`s unclear how much support there is for Bhoonsak`s plan. But the general idea of slowing the pace of reform is winning broader support, particularly in the more staid corners of the conservative establishment.

"We have created mechanisms that promote social participation at a time we actually require promptness of decision-making," says Mechai Ruchupan, a former Senate speaker. "We need to soften some of the processes to get back on the right track. But if there is an electoral crisis before that, what will happen I can`t imagine. I`m scared to think about it. If all procedures take longer than prescribed, it will be too much for the country to bear."

Dusit Siriwan, another conservative former senator and the host of a popular Bangkok radio programme, says he thinks a political vacuum after the election will only cause even greater economic deterioration that will "lead to change by the people."

The new constitution has hit hardest at the interests of Thailand`s old guard in the bureaucracy by removing many of their positions and privileges. So far their defence has been mostly neutralized, but lately they have gained ground.

For instance, reformers` hopes that a constitutionally mandated new National Broadcasting Commission would wrest the airwaves from the grip of military interests have dimmed. Similarly, the new National Telecommunications Commission, which will wield enormous powers in deregulating national telecoms, seems destined to fall under the sway of traditional bureaucrats. And the recent vetting of legislation to determine the shape of a new human-rights commission was recently watered down by conservatives in the Senate.

The conservatives` rallying call of "too much change, too fast" could gather broader support across the political spectrum as more mainstream politicians are ensnared by the strict implementation of the charter`s anti-corruption measures. In the past month, many leading politicians have been hit by investigations into whether they fully disclosed their personal assets, including Prime Minister Chuan Leekpai, nine other cabinet ministers and telecoms tycoon Thaksin Shinawatra, considered the top contender to be the next prime minister.

Champions of the constitution say the threat from conservatives is overstated. "They have been rocking the boat since the constitution was promulgated," says Constitutional Court Judge Suchit Bunbongkarn. "They won`t admit they no longer have a platform from which to push their agenda."

Bowornsak Uwanno, a chief architect of the constitution and secretary-general of the King Prajadhipok Institute, a pro-democracy think-tank in Bangkok, says a conservative counter-attack would require military support and so far there is "no evidence" of it.

But other pro-reformers think the threat is real. Pro-reform Sen. Kaewsun Atibodhi fears that the confluence of "an economic recession, social unrest and a political vacuum could set the stage for a conservative takeover." Adds Kaewsun: "They will want to suspend the constitution for one to two years so they can draft new election laws. It will be very difficult to set the reform process back in motion."

Such fears are gaining currency in the business community. "The risk is that we will not have a government in place quick enough to make policies to sustain economic recovery," says Supavud Saicheua, executive vice-president at Merrill Lynch in Bangkok. "If that causes a worse-than-expected economic deterioration, the illusion that political reform is not delivering what we hoped for could grow."

It may already be growing. The pro-reform zeal of Thailand`s middle class has faded since 1997, as many have diverted much of their energies toward economic survival and away from activism. "Many people who call themselves reformers have given up working for political reform," says Sen. Kaewsun. "Many expect the laws to work by themselves without a political movement to support them."

But if perceptions grow that the constitution is actually hurting rather than improving the middle class`s economic lot, conservative calls for political stability at a time of crisis may win broader popular support. And that may be particularly true if those calls are couched in the language of national unity and mobilized using the traditional symbols of the state and monarchy.

Conservative voices invoke the recent election of right-winger Samak Sundaravej as Bangkok governor as evidence of a popular mood shift in favour of traditional, conservative leadership. Others note that the biggest vote-winner in the Senate election was Pramote Maiklad, a long-time aide to King Bhumibol whose electoral result they see as a vote for the forces of conservatism.

In the background, King Bhumibol seems to have given tacit support to the constitution, perhaps with an eye to fostering the growth of institutions needed to mediate between the competing interests that his presence for now keeps on the sidelines. But if events unfold as it appears they might, the forces of change and the status quo look headed for a collision. When it arrives, the king may have another national political crisis to solve--as he did in 1992, when the military fired on pro-democracy demonstrators.

History shows that political reform in Thailand usually takes one step back before a leap forward. Increasingly, however, as the general election draws nearer it seems that the question should be: How far backward is the country headed?


Fortsetzung folgt

[BodyG]

WIRE:12/12/2000 00:35:00 ET
Coup possibility haunts Thailand ahead of election



BANGKOK, Dec 12 (Reuters) - A tough crackdown on electoral fraud by Thai authorities has led some politicians to warn of the possibility of a coup almost a decade after the country"s last military takeover. Deputy Prime Minister Korn Dabbaransi used an interview in the Bangkok Post on Tuesday to warn that banning too many politicians from the election on January 6 for attempted vote buying could lead to "a temporary retreat from democracy." "If things went beyond control, there might be no election at all," Korn, leader of Thailand"s Chart Pattana party which is a member of the ruling six-party coalition, was quoted as saying. He said threats to Thailand"s democracy were no joke. The newspaper described Korn"s words as "a euphemism for a coup." Many Thai political analysts argue a coup is now very unlikely because military influence waned after the last coup. They say the military high command has learned from the backlash against the military in the early 1990s and cite public opposition by the head of the army, General Surayudh Chulanont, to a political role for the military. OPPOSES COUP Surayudh said earlier this year he had been approached by officers seeking support for a coup and opposed the idea. The 1991 coup, Thailand"s 16th successful military takeover since the end of absolute monarchy in 1932, overthrew the elected civilian government of Prime Minister Chatichai Choonhavan, Korn"s uncle, on the pretext it was corrupt. A significant element within the military now might still favour a coup, particularly if a power vacuum emerged after the polls or if prominent army candidates or their supporters were banned from standing at the polls, some political analysts say. Thailand"s anti-graft body, the National Counter Corruption Commission, and the national Election Commission are scrutinising election campaigning and are likely to crack down on anyone guilty of cheating. The most prominent potential victim of this process is Thaksin Shinawatra, a billionaire telecoms tycoon and ex foreign minister who has formed his own populist nationalist party, Thai Rak Thai, or Thais Love Thais. Thaksin is accused of failing to declare some of his financial dealings and attempting to hide assets. He says he is innocent and has done nothing wrong. If found guilty, he would be banned from politics for five years and his party, which contains several military figures including some involved in the 1991 coup, would be leaderless and might collapse. POSSIBILITIES Political analysts say a coup might also be more likely if Thailand experienced a long period of uncertainty after the election. This could occur if many constituencies were forced to vote again after winning candidates were banned for vote-buying. Disqualification of poll cheats could theoretically delay the formation of a government for as long as three months, they say. "Yes, some lecturers and businessmen want (a coup) -- these people prefer efficiency to democracy," said political scientist Sukhum Nualsakul of Bangkok"s Ramkhamhaeng University. "But, I don"t think the military want to do it and the majority of people don"t want it to happen," he said. The last Thai junta lost power in May 1992 after hundreds of thousands of pro-democracy protesters rallied along Bangkok streets and their protests were brutally suppressed by the army. Thailand"s King Bhumibol Adulyadej intervened at the height of the confrontation between the army and its opponents in 1992 and has been credited with speeding the return to democracy. Korn said Thai democracy needed time to become established and all political parties must learn to live within the inconvenience of the new election rules. "We should not feel unhappy and give up easily," Korn told the Bangkok Post.

[BodyG]

WIRE:12/12/2000 01:34:00 ET
UPDATE 1-Coup possibility haunts Thailand ahead of poll



BANGKOK, Dec 12 (Reuters) - A crackdown on electoral fraud by Thai authorities has led some politicians to warn of the possibility of a coup almost a decade after the country"s last military takeover. Deputy Prime Minister Korn Dabbaransi used an interview in the Bangkok Post on Tuesday to warn that banning too many politicians from the election on January 6 for attempted vote buying could lead to "a temporary retreat from democracy." "If things went beyond control, there might be no election at all," Korn, leader of Thailand"s Chart Pattana party which is a member of the ruling six-party coalition, was quoted as saying. He said threats to Thailand"s democracy were no joke. The newspaper described Korn"s words as "a euphemism for a coup." Many Thai political analysts argue a coup is now very unlikely because military influence waned after the last coup. They say the military high command has learned from the backlash against the military in the early 1990s and cite public opposition by the head of the army, General Surayudh Chulanont, to a political role for the military. OPPOSES COUP Surayudh said earlier this year he had been approached by officers seeking support for a coup and opposed the idea. The 1991 coup, Thailand"s 16th successful military takeover since the end of absolute monarchy in 1932, overthrew the elected civilian government of Prime Minister Chatichai Choonhavan, Korn"s uncle, on the pretext it was corrupt. A significant element within the military now might still favour a coup, particularly if a power vacuum emerged after the polls or if prominent army candidates or their supporters were banned from standing at the polls, some political analysts say. Thailand"s anti-graft body, the National Counter Corruption Commission, and the National Election Commission are scrutinising election campaigning and are likely to crack down on anyone guilty of cheating. The most prominent potential victim of this process is Thaksin Shinawatra, a billionaire telecoms tycoon and ex foreign minister who has formed his own populist nationalist party, Thai Rak Thai, or Thais Love Thais. Thaksin is accused of failing to declare some of his financial dealings and attempting to hide assets. He says he is innocent and has done nothing wrong. If found guilty, he would be banned from politics for five years and his party, which contains several military figures including some involved in the 1991 coup, would be leaderless and might collapse. POSSIBILITIES Political analysts say a coup might also be more likely if Thailand experienced a long period of uncertainty after the election. This could occur if many constituencies were forced to vote again after winning candidates were banned for vote-buying. Disqualification of poll cheats could theoretically delay the formation of a government for as long as three months, they say. "Yes, some lecturers and businessmen want (a coup) -- these people prefer efficiency to democracy," said political scientist Sukhum Nualsakul of Bangkok"s Ramkhamhaeng University. "But I don"t think the military want to do it and the majority of people don"t want it to happen," he said. Thai Ministry of Defence spokesman Banchorn Chavalsilp told Reuters Thai coups in the past had been partly caused by a fear of communism. These days there was no justification for coups and political crises should be tackled politically. "Since the Cold War era is over, there is no reason for the military to stage a coup nowadays," Banchorn said. The last Thai junta lost power in May 1992 after hundreds of thousands of pro-democracy protesters rallied along Bangkok streets and their protests were brutally suppressed by the army. Thailand"s King Bhumibol Adulyadej intervened at the height of the confrontation between the army and its opponents in 1992 and has been credited with speeding the return to democracy. Korn said Thai democracy needed time to become established and all political parties must learn to live within the inconvenience of the new election rules. "We should not feel unhappy and give up easily," Korn told the Bangkok Post.

[BodyG]

ACHTUNG alter Beitrag:

Geschrieben von: BodyG am Donnerstag, 2 November 2000, um 11:46 p.m.

> ... so die Wahlen sollen am 6.Januar sein und möglicherweise soll ein General, Big "Mongkhul" Präsident werden, weil trotz THAI RAK THAI Sieg Thaksin ja wohl kaum dieses Amt bekleiden kann, da sonst die Glaubwürdigkeit der Untersuchungskommission flöten gehen würde. So diesmal echt ohne Link und Quellenangabe, steht alles in der Tagespresse.
IM ARCHIEV VON POST UND NATION

Mein Senf heute:

ja dann bin ich ja mal gespannt, wie sich das entwickeln wird. Militärischen Eingriff halte ich persönlich für ausgeschlossen - Bhumipol läßt grüßen - die Thais finden garantiert wieder eine Lösung, bei der keiner sein Gesicht verliert. Die Frage ist nur - auf wessen Kosten?

Kommentare sind nicht unerwünscht!

MfG

[Watcher100]

@ Body G

Wie sehen denn die Wahlprognosen im Moment konkret aus ?
Das Thaksin einen Deal mit den Militärs eingehen könnte, kann ich mir schon vorstellen. Sicherlich hat er gute Verbindungen dahin. Nur - das soll noch nichts heißen.
Er wird mit Sicherheit die Strippen ziehen, auch wenn er
ein befeundeten Militär den Vortritt läßt.
Also, wie sieht es um die Wahlaussichten aus in Thailand?
Was ist Deine Einschätzung ?

Für mich sind ausschlaggend wirkliche Mehrheitsentscheidungen, und dann schauen, welche Entscheidungen treffen sie.

Schaut mal wieder nach Deutschland.
Schröder ist mehr unternehmerfreundlich als der machtbewußte
arrogante CDU-Politiker Helmut.Der mit Sicherheit auch nicht schlechter gewurschtelt als die Politiker in Thailand.


So long

WATCHER

[BodyG]

Wednesday, December 13 11:59 AM SGT

Thai Shrs Dn Early On Delayed TPI Case, Foreign Selling
BANGKOK (Dow Jones)--Thai stocks are slightly down early Wednesday, due to the delayed court ruling on Thai Petrochemical Industry`s debt-restructuring plan, and continued foreign and institutional selling of Thai stocks.
At 0343 GMT (10:43 p.m. EST Tuesday), the Stock Exchange of Thailand, or SET, index was down 0.50 point, or 0.2%, at 269.12.

The blue-chip SET 50 Index was down 0.05 point, or 0.3% at 18.55.

Decliners outpaced advancers 33 to 31, excluding shares traded on the foreign board.

Continued foreign and institutional selling contributed to an index decline, dealers said, noting no positive factors in the Thai bourse. The expiration of two mutual funds in December also caused selling of some blue chips in the funds` portfolio, said a dealer.

Hana Microelectronics, one of the most actively traded stocks, fell 2.50 baht ($1=THB43.505), or 2.5%, to THB99.50, while PTT Exploration was down THB0.50, or 0.5%, to THB96. Both are favored by institutional and foreign players.

United Broadcasting Corp. fell 12.2% to THB10.75 on its capital increase plan, released during the early session.

The court ruling on Thai Petrochemical Industry should be a major factor in setting the market tone in the day, dealers said.

The bankruptcy court postponed its decision on TPI`s debt plan Tuesday after the company`s old management submitted a motion for a change of the court`s judges.

The ruling on the motion is due at 0630 GMT (1.30 a.m. EST). A court dismissal of the motion will lead to a much-awaited ruling of the $3.7 billion debt plan, and a boost to investors` sentiment, dealers noted.

They see the benchmark`s support at 265 points. Resistance is expected at 275.

@Watcher100

T. Shinawatra wird sich die Butter nicht mehr vom Brot nehmen lassen, der ist viel zu klever. Meiner Meinung nach auch nicht die schlechteste Lösung. Endlich könnte mal ganz von oben der - Antikorruptionshebel - erfolgreich angesetzt werden.
MfG

[BodyG]

Thursday, December 14 2:18 PM SGT

Thai Shrs Mixed Midday; Hopes Of Bush Rally Fade
BANGKOK (Dow Jones)--Thai stocks are mixed at midday Friday, amid light selling by retailers whose hopes for a rally on confirmation of George W. Bush as U.S. president-elect were dashed by the overnight plunge on the Nasdaq, dealers said.
But the index is slightly in positive territory at midday on light buying in select banks and communications shares, they said.

At the end of the morning session, the Stock Exchange of Thailand`s SET Index was up 1.07 points, or 0.4%, at 272.99. The blue-chip SET 50 Index was up 0.11 point, or 0.6%, at 18.90.

Decliners and advancers are evenly matched at 47 each, excluding shares traded on the foreign board.

Volume is light - but not too bad, considering the season and directionless trade, dealers said - at 70.5 million shares worth 1.13 billion baht ($1=THB43.619).

The Nasdaq plunged 109 points, or 3.7%, to 2822.77 Wednesday. The Dow Jones Industrial Average ended up 26.17 points, or 0.2%, at 10794.44.

Sentiment has improved due to a lack of foreign selling interest, after several weeks of net foreign selling, a local dealer said.

But further delays in court hearings on Thai Petrochemical Industry`s debt-restructuring case could badly damage sentiment, if it appears that the company`s founder could be successful in eventually disrupting implementation of a creditor-approved restructuring plan.

The country`s Bankruptcy Court is expected to rule Friday on the validity of two petitions opposing the plan.

Among those stocks which retail investors ran up Wednesday in anticipation of a Bush rally, Hana Microelectronics is down THB2.00 baht, or 1.9%, at THB101, PTT Exploration & Production is off THB1.00, or 1%, at THB99, and TelecomAsia lost THB0.25, or 1.3%, to THB18.75.

But the big banking and communications sectors rose 1.5% and 0.5%, respectively, on selective buying in companies with sound finances.

Foreign-owned local banks Bank of Asia and DBS Thai Danu Bank are up THB0.20, or 3%, to THB6.90, and THB0.10, or 1.2%, to THB8.40, respectively, while Bangkok Bank PCL is up THB0.25, or 1%, on THB26.00.

Most communications companies were down following the Nasdaq, but the sector index stayed in positive territory due to a flight to quality in Advanced Info Services, which is up THB8.00, or 2.3%, at THB360.

Dealers expect support for the SET Index at 266, while resistance is seen at 276 Thursday.

[BodyG]

Thursday, December 14 1:25 PM SGT

Thai PM Chuan: Bush Presidency No Effect On Thai Economy
BANGKOK (Dow Jones)--Thai Prime Minister Chuan Leekpai told reporters Thursday the change in the U.S. government after Republican candidate George W. Bush`s ascension to presidency shouldn`t affect Thailand`s economy.
Chuan told reporters he expects Thailand`s next coalition government, to be formed after the Jan. 6 general elections, to continue with existing economic policies which have led the country to economic recovery.

"We will proceed with our free trade policy," Chuan said.

The government has previously cited the U.S. economic slowdown as one of the risks to Thailand`s export-driven economic recovery, regardless of Bush`s contested election victory.

Thailand`s Democrat-led coalition government has emphasized privatization, low interest rates, fiscal measures to boost economic recovery and a market-based approach to the resolution of nonperforming loan problems.

The Thai Rak Thai Party, which appears to have the best chance of forming the next coalition government, has promised more populist-style fiscal stimulus and greater government involvement in dealing with nonperforming loans.

Thaksin, leader of Thai Rak Thai party, is reportedly on friendly terms with former U.S. president George Bush, the father of the president-elect.

Chuan said in response to a question from reporters he didn`t believe the Bush presidency will be seen as benefitting Thaksin, because "leaders of each nation should see their nation`s interests as priorities."

[BodyG]

Prachai says court unfit, wins new delay


BELEAGUERED Thai Petrochemical Industry (TPI) chief Prachai Leophairatana has accused all 18 judges of the Central Bankruptcy Court of being unfit to preside over the judicial process, winning a further delay to the restructuring of his debt-ridden company. He claimed the judges are occupants of an office building owned by Bangkok Insurance, a subsidiary of one of TPI`s main creditors, Bangkok Bank, and therefore there was a conflict of interest. With the entire bench of the Central Bankruptcy Court cited, the case has now been handed over to the Supreme Court for a full hearing, scheduled for 10am tomorrow.

The Nation 14.12.00

[BodyG]

SET Chief Urges Quicker Listing of State Firms to Buoy MSCI Weighting

Supanee Jenrojamphai
Staff Writer
STOCK EXCHANGE of Thailand (SET) President Vicharat Vichitvadakan, said yesterday that Thailand must hasten the pace of listing of state enterprises and large private firms to avoid a lower weighting of the SET by Morgan Stanley in its MSCI index expected late next year.

Vicharat was also discussing with Morgan Stanley the possibility of including Non-Voting Depository Receipts (NVDR) in the way it calculates its weighting for the SET.

"There are two ways to address the MSCI`s calculation of the SET`s weighting. One is by way of attracting more state enterprises and large private firms to list, and the second, is to urge current listed firms and state enterprises to float more shares," said Vicharat.

He said the SET will coordinate with relevant agencies to push for faster privatization of state enterprises.

There are still a handful of state enterprises awaiting listing, including a new share issue by Thai Airways International (THAI) and the privatization of state-owned telecommunications and energy firms.

"We are in talks with Morgan Stanley to have them include NVDRs in the way they calculate the free float available to investors because NVDRs will allow foreign investors indirect access and holdings in the SET and should therefore be included," Vicharat pointed out.

NVDRs help foreign investors invest in listed firms above the foreign ownership limit of 49% many Thai firms and commerce regulations impose on foreign companies.

Thailand`s weighting is expected to be reduced to between 1.4 and 1.7 percent from 2.2 percent in the MSCI Far East ex-Japan index late next year when Morgan Stanley implements changes in the way it calculates weightings from market capitalization to a free float system. The MSCI weightings guide institutional investors in their allocation of funds across markets.

While the new system is expected to cost the SET some weighting if measures to boost free float fail, some individually listed firms with lots of free float are expected to benefit, according to analysts. These include Bangkok Bank, Shin Corp and Ratchaburi Electricity Generating Holding, among others.

According to an analyst at KGI Securities One, closely held listed firms don`t mind a loss in the share value of their firms following a change in the MSCI index methodology. However, they would be wary of potential losses to their shareholding value following an increase in the number of shares traded given their general trend of return to profitability.
Quelle: Bus.day 14.12.00

[BodyG]

- 1 -
The enclosed information was obtained from sources believed to be reliable, but its completeness and accuracy are not guaranteed.
The opinions and views expressed herein are solely those of Seamico Securities Plc. and are subject to change without notice.

SEAMICO BANGKOK DAILY LINE
SECURITIES
Thursday 14 December 2000

Index
Close Chg. %
SET 271.92 +2.30 +0.85
SET50 18.79 +0.19 +1.02
SET Turnover (Bt m) 2,884.40
($m.) 66.23
SET Mkt. Cap. (Bt bn) 1,284.70
($m.) 29.50
Market Turnover (Btm)
Buy Sell Net
Institution 125 152 (27)
Foreign 724 924 (200)
Local 2,036 1,809 227
Money & FX Market
12/12/00 13/12/00
Bt/US$ 43.48 43.55
EU/US$ 0.8788 0.8768
Yen/US$ 111.41 112.30
O/N Rate 2.25 2.00
US Bond Yield 5.533 5.471
Market Calendar
29/12/00 PL XD @1.00
31/01/01 METCO XD 6.00
05/02/01 TIG XD 0.55
New Listing
15/12/00 SIRI 5,000,000 shares
MARKET OUTLOOK
NEWS
BOT: Wants to see more bank loans in 2001
The Bank of Thailand (BOT) said Thai banks could play a role in stimulating
economic growth next year by lending more to the business sector. Thai
deposit and lending rates are currently at the lowest levels in decades due to
a weak economy that has left banks with huge surplus funds.
SCB: Sells shares of Siam Sindhorn
Siam Commercial Bank (SCB) sold 24.9m shares of Siam Sindhorn Co Ltd
to Mai-Plat-Bai Co Ltd at Bt0.01 per share, totalling Bt249,900. The objective
of the share disposal was to reduce its investment proportion in the company.
NATION: Unsecured bond issue approved
Nation Multimedia Group (NATION)’s shareholders approved an unsecured
bond issue not exceeding Bt1.2bn for public offering. The bond issue is in
baht terms and will have a maturity of five years, to be offered to either the
public or institutional investors. The coupon rate will depend mainly on
market conditions. Proceeds will be used to redeem debentures expiring in
October 2001 and to repay partial loans.
UFM: Sells shares of United Silo & Services
United Flour Mill (UFM) sold 480,000 shares of its investment in United
Silo & Services Co Ltd to Metrophos Co Ltd. After the sale, the company’s
shareholding in United Silo & Services reduced to 25.945% from 49.945%.
RGR: To co-invest with Mariott
Royal Garden Resorts (RGI) has approved a plan by RNS Holdings Ltd, in
which RGI has a 72.4% stake, to co-invest with US based Marriott to develop
a multi-phase prepaid vacation resort in Phuket. The resort, Maikao Vacation
As expected, the TPI case was delayed yet again yesterday, and the market
continued to rumble on as it seems the Thai bourse has become accustomed
to this kind of disappointment. Foreign investors maintained their net sell
position on the Thai market in the order of Baht 200 million. With US
markets still unsteady as it seems we could be nearing the end of the US
presidential election, regional markets together with Thailand will tread
carefully today, moving further sideways over the course of the day. The
market is still largely dominated by retail speculators, while more long-term
retail investors remain sidelined as foreigners are on the retreat.

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Meinungen aus dem SEAMICO Forum:

[Wednesday, December 13, 2000 8:06:29 PM]
Subject : let`s cheer up THAILAND as K. Puwadol mentioned
Message : I am thai, and I also have faith im my own country, although i could go away working legally in the states. But , i am PROFOUNDLY that one day very soon Thailand will be bounced back and the SET will lead up as the indicator. K. Puwadol, hope this time your forecast really come true. Please strongly comment your 5 most prefered stocks to invest for at least 3 months. A, 01-6253141

Name/E-mail : [e-mail] Reply





[Thursday, December 14, 2000 9:06:09 AM]
Message : My five favorites are: BANK, FINCOs, ELECTRONICS, ENERGY and COMMUNICATION

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 1:50:58 PM]
Message : Are those 5 sectors in order of preference? How may percent of each sector would you weigh in? Thanks

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 2:14:51 PM]
Message : Those BANK, FINCOs and COMMUNICATION will be the leaders driven the SET at first. Then the rest should come later. In my opinion, FINCOs tend to make a strongest hike, in term of percentage change. Then it would be COMMUNICATION and BANK. Some interesting stocks are as follow ( including their derivative products and foreigh board): KK, TISCO, NFS, SPL, PL, TFB, SCB, BBL, DTDB, BOA, UCOM, TA, SATTEL,( ADVANC and SHIN should buy at 5-7% discount of today prices), HANA, DELTA, KCE, PTTEP, RATCH, COCO, BANPU. SCC, NPC..........others will be updated later.

Name / E-mail : [e-mail]

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Thursday, December 14 6:53 PM SGT

Foreigners Bought Net THB175.5M Thai Stocks Thursday
BANGKOK (Dow Jones)--Foreign investors were net buyers of 175.5 million baht ($1=THB43.619) worth of Thai stocks Thursday out of a total of THB2.54 billion traded, the Stock Exchange of Thailand said.
Figures are in baht; some are rounded; percentages are calculated from unrounded numbers:


Bought % Total Sold % Total
Foreign 744.2 mln 29.27 568.7 mln 22.37
Local Retail 1.71 bln 67.26 1.85 bln 72.80
Institutions 88.3 mln 3.47 123.0 mln 4.84



Note: Foreign activity represents transactions by both institutions and individuals, local retail activity is by Thai nationals only, and institutional activity is by domestic institutions, SET member-brokers and sub-brokers.

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2000.12.14 THU

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Thailand-Indonesia-Malaysia Join Forces to Boost World Rubber Prices
2000.12.14 15:53:33



BANGKOK, December 14 (Xinhuanet) -- Indonesia, Malaysia, and Thailand, which are three largest rubber producers and exporters of the world, have concluded an agreement to set central prices of rubber, aimed at boosting prices of the key community in the world market, the Thai News Agency (TNA) reported Tuesday.
Acting Deputy Agriculture and Cooperatives Minister Arkom Engchuan was quoted as saying that the three countries reached the agreement at a recent senior officials` meeting (SOM), held between December 7 and 8.
The three countries were scheduled to officially sign the agreement in January, 2001, he said.
Under the agreement, Jakarta, Kuala Lumpur, and Bangkok would jointly set central prices of rubber to be sold in the world market, based on the U.S. currency, he stated.
The move, considered a successful collaboration of world largest rubber producers and exporters, was aimed to boost and stabilize world rubber prices, which will increase incomes of rubber growers and improve their living conditions, Arkom noted.
The agreement was also considered a new dimension of rubber trade in the world market, he said.
Rubber producers and exporters have suffered from low prices of rubber in the world market for years. Enditem

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Thai 2001 GDP growth could fall to as low as 3 pct in 2001: Merrill Lynch

--------------------------------------------------------------------------------

BANGKOK (AFX-ASIA) - Projected GDP growth of 4.2 pct in 2001 is subject to downside pressure, and could fall as low as 3.0 pct, depending on the state of the global economy and the policies of the incoming government, Merrill Lynch Phatra Securities said in a report.
"Economic growth in 2001 could be as low as 3.0 pct," it said, with debt restructuring running into further difficulties, the successful conclusion of which is seen as key to sustaining growth.

"Of the remaining non-performing loans and potential re-entry NPLs, totaling around 2 trln baht or 35 pct of outstanding loans, we believe that half are ultimately restructurable and half are likely to be liquidated," it said.

If the Thai Rak Thai party wins the upcoming election and forms the next government, it will try to establish a national asset management corporation, it said.

"But effective implementation is likely to prove difficult. Changes to the process for liquidation and foreclosure will be vital, we believe," it said.

The report said it will become more difficult to find a workable trade-off between supportive monetary policy and the need to keep inflation below the Bank of Thailand`s 3.5 pct target limit as high oil prices feed into core inflation.

"A more accommodative monetary policy might be needed, if the new government decides to introduce a fiscal stimulus package should a significant economic slowdown occur," the report said.

The adoption by Morgan Stanley Capital International of free-float methodology is likely to put continuing pressure on Thailand to open up the local board and strengthen corporate governance, it said.

"Effective privatization to deepen and broaden the stock market and attract fresh capital will be essential," it said.

The report said Merrill Lynch favors defensive stocks with secular growth stories such as energy, modern retailing, telecoms, and media.

"We would avoid cyclicals, chemicals and building materials," it said.

Electronics stocks such as Delta Electronics offer an outsourcing theme at a time when the sector is likely to be under cost pressure, the report said.

However, the report said, the house anticipates a rally once uncertainty lifts over who will make up the next government.

The report said Advanced Info Service is the house`s key stock for 2001 given its attractive valuation.

Prospects for new competition should spur cellular industry growth but there should be a time lag before new competition arrives, the report said. ck/tr/rf

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7-Eleven in talks about printing service


BERLI Jucker Plc, the local distributor of Agfa film and imaging products, is negotiating a deal with CP Seven Eleven that would allow customers to print digital photos through its 7-Eleven stores.

The move follows Berli Jucker`s recent launch of an online digital-photo printing service through its website, www.thaifoto.com.

The website allows people with digital cameras to download photos for processing at participating Agfa labs.

Customers can also send digital photo files recorded on a disc or smart card to the labs for printing.

The deal with CP Seven Eleven would allow consumers to take digital photo files on disc to the convenience stores, which would then send the files to participating Agfa dealers. Customers would be able to pick up the prints at the 7-Eleven store several days later, Varinda Kruavanichkit, Berli Jucker assistant product manager, said.

Noting that the negotiations were not yet finalised, Varinda was enthusiastic about the arrangement.

"We approached 7-Eleven because of their strong physical network of convenience stores," Varinda said.

CP Seven Eleven now operates more than 1,500 7-Eleven stores nationwide.

The company has said it intends to open another 500 stores by 2003 and an additional 1,000 by 2008.

Berli Jucker has Agfa 300 dealers nationwide, 10 of which will provide online photo printing during the testing phase.

"We estimate that more than 100 dealers will work for the `thaifoto.com` project by 2005," said Peter Emil Romhild, executive director of the Berli Jucker Group`s imaging and technical businesses.

Romhild said the market for digital cameras is growing dramatically, with the number of users expected to rise from 15,000 to 90,000 by 2005.

That figure would represent about 30 per cent of the total camera market. The annual growth rate for digital camera sales is more than 10 per cent.

"We are the first player in Thailand to market a comprehensive online printing solution to cope with the rising demand for digital cameras here," Romhild said.

The company also estimates the number of customers for its online printing service to total more than 4,000 by 2005.

Varinda said that since the `thaifoto.com` site was launched two weeks ago more than 30 people are logging onto the site daily, with quite a few ordering prints.

Berli Jucker`s imaging division recorded turnover of Bt1 billion this year, contributing 8 per cent of the group`s revenues.

Berli Jucker`s other core businesses are packaging, household and personal care products, and technical goods.

Romhild said the group has begun to reorganise its imaging division, which comprises three major business groups - consumer imaging, graphic art imaging, medical and technical products.

In a separate development, CP Seven Eleven is preparing to launch a catalogue sales package for non-grocery products early next year.

The catalogue, which will allow customers to order products such as tape cassettes and CDs from 7-Eleven stores and pick them up in two or three days, is the last step before the convenience store chain launches its online shopping service in the near future.

BY KWANCHAI RUNGFAPAISARN

The Nation 14.12.00

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STREETWISE: Prachai launches own website, continues verbal assault


JUST when you thought Prachai Leophairatana, chief executive officer of Thai Petrochemical Industry (TPI), had had been cut off from his various avenues of expressing his dislike for Executive Planners, the executor of TPI`s restructuring plan, back he bounces with his own website, www.prachai.com.

The arrival of Prachai`s site comes after Effective Planners blocked his complaints about the restructuring plan on TPI`s two websites - www.tpigroups.com and www.thaipetrochemicalindustry.com.

It is understandable that Effective Planners did so, because earlier this year the executor expressed its dissatisfaction with TPI`s decision to post all the company`s gripes on the websites.

As part of TPI`s corporate assets, which one day could be controlled by its creditors, the present management were barred from using the sites for their personal benefits, Effective Planners said.

But Prachai decided to get around this latest hurdle by setting up his own website.

Prachai`s own site does not offer just in-depth information on the ongoing legal battle but also has links to nine sites owned by companies in the TPI empire, such as TPI Polene and TPI Oil.

As both sides of the argument are still fully available, it wouldn`t be wrong to say public are the true beneficiaries when following the continuing saga. - The Nation. 14.12.00

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Property stocks still too risky


INVESTORS should shun property stocks for the foreseeable future as the industry is still saddled with as much as Bt180 billion in debt, a market analyst has said.

Moreover, it will take at least five to eight years for housing stock - which is currently oversupplied by 340,000 units - to be absorbed by the market.

Therdsak Thaveeteeratham, an analyst at Thai Thanakit Securities, said that despite a big fall in property-share prices, the sector overall was still not attractive enough for investment. As of the third quarter, the industry had total debts of Bt179.87 billion, of which Bt59.66 billion belonged to Tanayong. Property assets totalling Bt90 billion had also been pledged as collateral with commercial banks.

Seven developers have negative net worth of shareholder equity. They are: Preecha Group, Srivara, Tanayong, B Grimm Engineering System, Ch Karnchang, Nawarat Pattanakarn, and Sino-Thai Engineering and Construction.

Therdsak added that although the property sector had reported income growth of 10.4 per cent in the third quarter, its profitability was lower than the figure suggests, not least because of foreign-exchange losses.

However, there were some bright spots in the industry such as detached houses and rental properties, he said.

Therdsak cited MBK Property and Development as an interesting stock for long-term investment, as it has steady revenue growth. He added that the company was expected to pay a dividend of Bt2 per share next year, representing an annual return of about 13.33 per cent.

BY SIRIPORN CHANJINDAMANEE

The Nation 14.12.00

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COMPANY REPORTS:


PRASIT PATANA, operator of a hospital chain, attributed its third-quarter loss to a provision against possible investment losses.

The company said in a filing with the Stock Exchange of Thailand that it reserved provisions for investment losses in subsidiaries, affiliated and related companies totalling Bt3.757 billion.

It also recorded an additional Bt1.2-billion loss from the debt restructuring of subsidiaries Phuket Paradise Co and Dulwich International.

"In the same quarter, we provided for diminution in value of buildings under construction and work in progress in the amount of Bt2.55 billion," Prasit Patana said.

The company posted a net loss of Bt7.3 billion between July and September, compared to a net loss of Bt620 million in the same period a year earlier.


RATTANA REAL ESTATE must prepare a business rehabilitation plan due to its poor performance last year, which resulted in negative shareholder equity, the Stock Exchange of Thailand (SET) said yesterday.

The SET asked Rattana to submit a proposal by January 12: either a rehabilitation plan; a plan to seek voluntary de-listing; a plan to rehabilitate its business under the new Bankruptcy Act, or another option that would benefit shareholders.

Rattana showed a net loss of more than Bt3 billion last year, much higher than the amount of shareholder equity.

The SET has suspended trading in Rattana. The company may request the SET to allow securities trading in the rehab sector if it has completed restructuring of more than 50 per cent of its total debt, and its rehabilitation plan has been approved either by shareholders or the Central Bankruptcy Court.

"The SET would like to ask shareholders and general investors to study the complete set of financial statements and closely follow up on the rehabilitation plan prepared by the company and its financial advisers, which will be presented to their shareholders meeting," the SET said.


DUSIT THANI`S board of directors has approved the disposal of all investment in Supsinthanee Co by its subsidiary, Royal Princess.

The shares will be bought by Dusit Thani International Co for Bt0.01 each, or Bt21,300 in total.

Royal Princess is 79.65-per-cent owned by DTC, which also operates Dusit Thani International.

The transaction is part of the company`s business restructuring, it said in a filing with the Stock Exchange of Thailand.

"The first disposal will be on December 20, 2000 and the remainder will be finished by the end of year 2001," it said.

After completing, Dusit Thani International will hold 99.99 per cent of Supsinthanee.


RAJADAMRI HOTEL (RHC) shareholders have approved a plan to borrow US$4 million (Bt174 million) from Four Seasons Hotels and Resorts Asia Pacific for hotel renovation.

RHC, the operator of Rajadamri Hotel, also received shareholder approval for a seven-year extension of the hotel management contract to Four Seasons Hotels and Resorts Asia Pacific.


EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT`S subsidiary, Universal Utilities Co, has achieved its quest to become the sole shareholder of another water concessionaire.

EASTW said that Universal Utilities has acquired 25 million shares in Tattara Co, which owns 84 per cent of tap water concessions in Bangpakong, Nakhon Sawan and Chachoengsao.

The acquisition on Wednesday followed the EASTW board of directors` resolution on November 13 to allow Universal Utilities to increase registered capital from Bt50 million to Bt510 million in order to purchase all shares of Tattara.


KRUNG THAI BANK said its Krung Thai Holding Co has bought 22.5 million shares in Krung Thai-Axa Life Insurance Co for Bt141.07 million.

The bank reported to the SET that the price per share based on the book value as of November 30 was Bt6.27.


ABN AMRO ASIA SECURITIES` board of directors has accepted the resignation of director Timothy James Boyce and approved the appointment of David Frederick Cross to replace him, effective Wednesday.

The appointment is subject to approval by the Securities Exchange Commission.


SANSIRI securities are now eligible for trading, effective today, after the firm completed its capital-raising process, the Stock Exchange of Thailand said.

THE NATION 14.12.00

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Money-laundering law has teeth


In the final article of a three-part series, K I Woo looks at several reasons why ordinary citizens should be wary of the new Money Laundering Prevention and Suppression Law.

Everyone agrees that the new money-laundering laws are a powerful tool for law enforcement officials to combat criminal activity in Thailand.

Under the Money Laundering Prevention and Suppression Act BE 2542, law enforcement officials have the right to seize property which they have reason to believe has been purchased from the proceeds from seven specifically targeted crimes.

The seven targeted crimes are narcotics trafficking, prostitution and other sexual offences, fraud against the public, fraud involving financial institutions, abuse of position by government officials, extortion and trade in contraband.

Many people have praised the new laws, saying they give authorities tough provisions to punish criminals who have previously exploited huge legal loopholes, and are blatantly and shamelessly living off the spoils of criminal activities.

However, because the laws give enforcement agencies almost unfettered power to seize personal assets, if they have reason to believe proceeds from targeted crimes are involved, some human rights advocates query whether politically-biased `renegade` officials may use these same laws to unduly harass opponents.

Under the new laws, a crime is committed when someone transfers or converts funds or property derived from any of the seven targeted crimes with the intent of concealing the source of the funds.

Property seizures can be ordered by the Transactions Office or the Money Laundering Committee`s secretary general if there is reason to believe the property stems from funds laundered from a targeted offence. The transaction committee is a subcommittee of the Money Laundering Office`s main committee, which is overseen by the Prime Minister`s Office.

These strong new laws, if judiciously applied, should in principle help deter criminal behaviour, by taking away the spoils of criminal activity.

For instance, the financial crisis spotlighted the inability of our current laws to punish criminals who looted our financial institutions. You can count with the fingers on one hand the number of financial criminals convicted for such offences in this country.

The money laundering laws offer our authorities powerful options to hunt down these criminals and deprive them of their ill-gotten gains.

Financial institutions and their employees are obligated under the new laws - which threaten heavy fines and jail terms if not obeyed - to report all transactions exceeding Bt2 million or smaller transactions deemed to be suspicious.

Most commercial banks are now connected online to the money-laundering committee`s offices, which are now manned by 200 civil servants who ostensibly monitor and analyse all reported transactions.

Prior to the crisis, our country`s financial institution regulators could have used the new laws to target frauds against financial institutions as the new laws in theory force bank officials and employees to report any suspicious transactions.

Bank employees now probably cannot claim that they were only doing what their bosses `told them to do`.

The new law specifically requires them to report any transaction that they believe to be a fraud against a financial institution. Failure to report the transaction or reporting it falsely is a crime against the new Money Laundering Act. The new laws` real teeth lie in the authority it gives officials to seize property that they have reason to believe is connected with one of the seven targeted crimes.

The authorities could have punished suspected financial looters by seizing their property because they believed they were connected to ill-gotten gains from one of the seven targeted crimes.

But the powerful and seemingly arbitrary seizure provisions could easily be abused by politically motivated officials to harass opponents. For instance, who is to say that a renegade official might not use the Money Laundering statute to seize a rival`s entertainment complex under the guise of reasonable suspicion that narcotics were sold or prostitution conducted on the premises.

Looking down the list of seven targeted crimes, it wouldn`t be difficult to conjure how renegade politicians may be able to use the new law to their advantage.While all of us should laud the new money-laundering bill and its ability to help reduce crime, everyone should be vigilant about the possible misuse of such strong laws by unethical officials.

The Nation 14.12.00

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Words of economic wisdom for government-in-waiting


THE new government should put the country`s economic problems under a microscope rather than taking the broad view, an economist said yesterday.

Chalongphob Sussangkarn, president of Thailand Development Research Institute, said the current government`s macroeconomic approach is preventing Thailand from fully recovering from the 1997 financial crisis.

At a seminar focusing on the direction the economy should take after the election, Chalongphob offered several issues that a microeconomic view should consider.

He said problems include the Bank of Thailand`s troubled rescue fund, the deposit guarantee programme, the value-added tax and the government`s overall debt.

Chalongphob said the new government must form a five- to seven-year plan that would bail out the central bank`s Financial Institutions Development Fund, its rescue arm.

"The FIDF`s debt will finally become the problem of the next government to solve. So, the new government should set a long-term plan to tackle it," he said.

He said the FIDF has had to refinance its huge debts with short-term borrowing. Such a practice would ultimately harm the country`s financial system. Once commercial banks extend credit to prop up the economy, liquidity in the money market dries up and forces interest rates to rise, Chalongphob said.

Another problem is the government`s deposit-guarantee agency, which provides 100-per-cent coverage for deposits in all financial institutions. Full coverage should be eliminated, he said, and replaced by a guarantee only up to a certain level.

Under the full guarantee, depositors take no risks and continue to park all of their savings at financial institutions rather than spreading their funds to other investment sources and the economy in general.

In addition, the government would need to raise the value-added tax from 7 to 10 per cent. Otherwise, the government revenue would not cover spending.

The government`s fiscal position is weak, Chalongphob said, with the public debt as high as 60 per cent of GDP.

He added that the new government should set a clear monetary policy and figure out how to solve the central bank`s account consolidation quandary.

The uneven distribution of funding and human resources also needs to be examined, Chalongphob said. In addition, there needs to be a long-term plan to evenly distribute the country`s human resources and funding into the provinces, he said.

Thailand is well into recovery but it has not recovered, he said.

"The Thai economy is currently in the grey area. Though we have passed its bottom, several sectors still have not fully recovered," he said.

"The export-oriented businesses had a good performance," he added.

Kosit Panpiemras, Bangkok Bank`s executive chairman, supported Chalongphob`s ideas.

He said businesses should allocate their profits to service their bank debts.

A number of manufacturers are faced with over-capacity, Kosit said, and therefore do not need to spend money to expand production. After focusing on reducing debt, the business sector can pour liquidity into the capital markets. Next year, the economists say external risks include an economic slowdown in the United States, a change in Japan`s deposit guarantee system and South Korea`s capital account convertibility.

Positive factors include better prices for agricultural products, lower oil prices and low core inflation.

Prime Minister Chuan Leekpai said at the seminar that the new government, despite the varied economic policies touted during the campaign, would likely maintain the core economic policies.

Top economic officials added that the new government would have to further liberalise financial regulation, improve efficiency of tax collection, and place tighter controls on agricultural production.

Commerce permanent secretary-general Krekrai Jiraphrate said many political parties are promoting the idea of liberalisation in order to attract foreign investment. And privatisation of national enterprises through the establishment of asset management companies has become a major concern as well. Somjainuk Engtrakul, permanent secretary-general of the Finance Ministry, said boosting the efficiency of tax collection and expanding the base of taxpayers are vital for securing the economy.

Revenue contributed from tax collection is only 16 per cent of the GDP, while the figures for some developed countries are as high as 35 per cent.

"Once we achieve 21 to 26 per cent of GDP, we would be satisfied," Somjainuk said.Pitipong Pungbun Na Ayudhaya, permanent secretary-general at the Ministry of Agriculture, said the new government would have to get a handle on the oversupply of crops. Also, the promotion of research and development, especially a biotechnology, is needed to revitalise the farming sector, Pitipong said.

The Nation 14.12.99

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Thursday, December 14 7:21 PM SGT

Thai Election Commission Vows To Have Result On Schedule
BANGKOK (Dow Jones)--Thailand`s powerful Election Commission vowed Thursday to have all 500 parliamentary seats filled within 30 days of the Jan. 6 election, as required by the law.
Members of the Election Commission Yuvarut Gamolvej and Gothom Arya told a press conference that if the commission doesn`t complete the election of all parliamentarians by early February, it may have to announce the result "with reservation."

"We shall produce as much as we can within the 30-day period," Gothom said. "If not, we may be forced to announce the result with reservation but we`ll continue the investigation."

Yuvarut said that if there is widespread fraud involving a large number of candidates, the election commission may be forced to hold by-elections beyond that date.

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Want the good life? It`s in Chiang Mai


CHIANG Mai has again topped Bangkok as one of the best cities in Asia to live in.

The ranking by Asiaweek, done on the basis of quality of life in various Asian cities, puts Chiang Mai in 13th place and Bangkok in 17th. Last, year Chiang Mai came 11th and Bangkok 13th. Fukuoka in Japan was rated as one of the best places to live. It won first place last year as well.

Asiaweek used a total of 27 different indicators to determine this year`s ranking which included 40 cities.

The criteria used for measuring the quality of life included the number of hospital beds per 100 people; per-capita spending on education; pollution levels; average monthly rentals; the efficiency of transit systems; the number of crimes committed per every 10,000 people; and the availability of mobile telephones and the Internet.

Japanese cities generally did well in the survey. Tokyo came from fourth last year to share the top spot with Fukuoka. Osaka came fourth - sharing the honours with Taipei. Sharing the 17th spot with Bangkok were Davao City in the Philippines, Vietnam`s Hanoi and Ho Chi Minh and Kuching in Malaysia.

The Nation 15.12.00

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Swift court hearing beats Prachai`s ploy


Debtor Prachai Leophairatana was firing his last desperate shot when he decided to take on the judges of the Central Bankruptcy Court. Somluck Srimalee reports.

Prachai Leophairatana committed the worst kind of gamble by deciding last Friday and again on Wednesday to take on the entire judiciary of the Central Bankruptcy Court.

Not only did he try to remove the four presiding judges, who were deliberating in the case of Thai Petrochemical Industry vs Creditors. Prachai also tried to disqualify all 18 judges of the Central Bankruptcy Court.

His argument, it turns out, had very little legal merit.

The judges, according to his suit, should have been disqualified according to Articles 11, 12 and13 of the Civil Code because they could have had conflicts of interest for renting an office building belonging to Bangkok Insurance, a subsidiary of Bangkok Bank.

Bangkok Bank is one of the creditors and main parties seeking loan repayments from TPI.

Apparently, Prachai was hoping this legal tactic would delay the court`s deliberation of the TPI case for another three to four months. By that time a new government would be in place and political lobbying could be launched in order to enact parliamentary amendments of the bankruptcy and foreclosure laws, which could provide greater protection to debtors such as himself.

Prachai`s legal strategy as all-too apparent. Seeing this, the Central Bankruptcy Court moved quickly to deter him from buying more time. Since Prachai had already questioned the legitimacy of the entire judiciary of the Central Bankruptcy Court, the judges simply passed his suit on to the Supreme Court for deliberation.

The Supreme Court, in turn, agreed to hold an emergency hearing on the case. Yesterday it deliberated on the matter and today it will pass its resolution on Prachai`s claim back to the Central Bankruptcy Court.

Such a speedy move by the Supreme Court stunned Prachai and his wife, Orapin, who allegedly thought it would take the court at least three to four months to review the case.

After the Supreme Court hands down its decision today, it is likely to bury any further chance of Prachai delaying the Central Bankruptcy Court`s deliberation of the TPI dispute.

Because the creditor banks have already approved the rehabilitation plan for the debt-ridden TPI, and almost unanimously, the matter now rests in the hands of the Central Bankruptcy Court - which can act on the case quickly.

However, if the Central Bankruptcy Court decides on the case today, Prachai can appeal to the Supreme Court, if the Central Bankruptcy Court`s director general approves such a move.

"Prachai wants to keep his management position in the company as long as he can. If the Central Bankruptcy Court approves the debt-rehabilitation plan today after the Supreme Court hands down its decision, Prachai will lose management control to Effective Planners," one of TPI`s creditor`s lawyers said, explaining the reason for Prachai`s fight. "It is Prachai`s intention to fight with the creditors and the Bankruptcy Court until the bitter end."

But it is not reasonable for Prachai to fight every point of this case, because he cannot change the Central Bankruptcy Court process.

Even if the Supreme Court were to agree with Prachai`s proposal to remove every judge from the Central Bankruptcy Court, the Supreme Court would only appoint judges from another court to rule on the case immediately.

If Prachai really wanted to mount a strong challenge against the creditors, he would dispense with his obvious stalling tactics and let the Central Bankruptcy Court do its work.

Because such tactics do nothing to improve the situation either for TPI or for Prachai`s family.

The Nation 15.12.00

[BodyG]

Thaksin still the man despite probe-survey


AN opinion survey has found that most people were happy to see the National Counter Corruption Commission investigate Thai Rak Thai Party leader Thaksin Shinawatra, but many still want him to serve as the next prime minister.

Assumption University surveyed 15,248 voters nationwide from December 1 through Wednesday.

It found that 82.4 per cent of respondents were happy to see Thaksin investigated.

When asked their top choice for the next prime minister, 28.2 per cent of the respondents named Thaksin.

Democrat Party leader Chuan Leekpai ranked second with 22.4 per cent.

However, 43.2 per cent of the respondents declined to comment. The rest named several other party leaders.

The Thai Rak Thai`s party-list candidates proved more popular than the Democrats` in all regions except in the South.

Nationwide, 27.9 per cent of respondents said they favoured Thai Rak Thai`s candidates.

The Democrats came second with 18.4 per cent.

The Chat Pattana, New Aspiration, and Chat Thai parties received 6.2, 6.1 and 5.7 per cent, respectively.

About 30 per cent of respondents declined to comment, while the rest chose smaller parties.

In the South, 48.2 per cent of respondents said they favoured the Democrats` party-list candidates, while New Aspiration ranked second with 12.8 per cent and Thai Rak Thai third with 9.4 per cent.

The Nation 15.12.00

[BodyG]

Thaksin asset case may be wound up by month-end


THE National Counter Corruption Commission said it would try to conclude its investigations into three major political figures by the end of the month.

NCCC member Preeya Kasemsant na Ayutthaya, chairwoman of the three investigations, said she should be able to report the findings on the three cases to the full NCCC by the end of the month.

This would give voters at least a week to digest the findings before voting.

The NCCC is conducting investigations into the holdings of Thai Rak Thai leader Thaksin Shinawatra, Prime Minister Chuan Leekpai and Deputy Prime Minister Banyat Bantadtan.

Preeya is scheduled to take statements today from at least two of three final witnesses in the Thaksin case.

Kanchanapa Honghern, the private secretary of Thaksin`s wife Pojamarn, and Kamolwan Chotikapukkana, Thaksin`s private secretary, have confirmed that they will testify about how they prepared the paperwork for Thaksin`s three asset statements in question.

Another secretary, Bannapot Damapong, who is also Pojamarn`s brother, has not confirmed whether he would answer the NCCC`s summons.

Two officials from the Stock Exchange Commission met with Preeya yesterday to explain stock market rules related to Thaksin`s share transactions.

Thaksin is accused of failing to report shares, including those of listed companies, held by his household staff on his behalf. The two other investigations - one into Chuan`s shares in a Surat Thani cooperative and the other into Banyat`s shares in Srisuban Trading Co - are expected to be completed at the same time as the Thaksin case, Preeya said.

Thaksin yesterday called on the NCCC to announce its rulings on the three cases simultaneously.

"The NCCC should speedily rule on every case and not just my case," he said.

Thaksin also alleged that the investigation of his share transactions was triggered by a smear campaign.

"My rivals can not take legal action against me so they are trying to tarnish my social standing," he said.

The Nation 15.12.00

[BodyG]

Bush untested on Asian affairs, experts say


US president-elect George W Bush must prove his mettle on foreign affairs, especially on US policies toward the Asia-Pacific region and China, analysts said yesterday.

The analysts voiced scepticism about Bush`s ability to handle foreign policy, even though he will be surrounded by foreign affairs experts.

While Thailand is too small to play a major role in US foreign policy, Bush`s policy toward China might affect Thailand, and the close Sino-Thai economic and security relations, analysts said.

"Bush appeared to adopt a harder line against China on defence policy than one adopted by the Democrat administration," Supavud Saicheua, executive vice president of Merrill Lynch Phatra Securities Co, said.

During his campaign, Bush called for a US policy that deals with China as "a competitor, not a strategic partner".

Kobsak Chutikul, a former senior foreign ministry official who is now campaigning under the Chat Thai Party, said "the key person to watch is, therefore, the US trade representative, who will play an influential role in China`s entry into the World Trade Organisation".

Bush was criticised early in the election campaign for appearing less than sharp on foreign affairs. But he has recently scored more points by demonstrating his knowledge on the issues, thanks largely to his team of advisers, said Panitan Wattanayagorn, a national security expert at Chulalongkorn University.

Bush`s key foreign policy advisers are veterans on security issues. They include Vice President-elect Dick Cheney, Colin Powell and Condoleezza Rice. Cheney was defense secretary under Bush`s father, former president George Bush. Also in the elder Bush`s administration, Powell was the chief military commander during the Persian Gulf War. Rice is a Russian expert who speaks Russian fluently.

Analysts said that while the previous Bush administration`s main adversaries were the former Soviet Union and Iraq, the new Bush administration would likely spend more time facing North Korea and China. A prime issue will be the US military presence in East Asia and how it would relate to the possibility of a unified Korea.

Kobsak said Bush`s conservative policy with regard to missile development might lead the US into conflicts with China.

During the campaign, Bush said he intended to push forward with the development of a missile defence system against "rogue" states.

Bush did not name any countries but Kobsak said, "I am worried that this policy might strain relations with Russia and China".

Bush has also said he supported plans to develop a national missile defence system that would also cover Japan and Taiwan, while Gore said the system should cover only America.

Panitan said that while China might be concerned about this, the project is unlikely to seriously affect relations during the next four years because development of the system is at least five years away.

Analysts also said the Bush administration might be more cautious when sending the US military overseas. Bush has criticised President Bill Clinton for what he says was overextending US military forces by intervening in places not linked to US strategic interests.

The US Democratic Party`s foreign policy has dealt with countries on an issue-by-issue basis, Kobsak said. For instance, the Clinton administration attempted to push human rights and environmental policies as part of a new WTO agreement. Bush, however, is likely to deal with countries on a country-by-country basis.

"This may be better for Thailand," he said. Thailand, sometimes, was in a difficult situation when she was pressured by developed nations to condemn her neighbours over the issues of, for example, human rights.

BY JEERAWAT NA THALANG

The Nation 15.12.00

[BodyG]

YOUR EDITOR`S VIEW: Nationalism: Yes Xenophobia: No


A wave of nationalist sentiment is becoming increasingly evident as the general election nears. This can be traced to a state of confusion and fear among the once open-minded Thai people. Many are expressing concern over job security and the difficulty of making a living. The residue from the economic crisis has not yet been cleaned up three years after the 1997 collapse of the baht.

These tough times have sparked the emergence of a combination of xenophobia and nationalism in various symbolic forms. The Thai psyche is embedded with a running fear of foreign domination, fear of the country losing its independence, fear of owners losing their businesses to foreigners, and fear of selling off local banking institutions. The political atmosphere has as a result become inward-looking.

Thaksin Shinawatra went for the name Thai Rak Thai (Thai Loves Thai) when he formed his party two years ago, billing it as a new force in politics to reclaim Thai dignity. Bhichit Rattakul, the former governor of Bangkok, has set up the Thai Motherland Party as a green party which cares for the local environment. Banharn Silapa-archa, meanwhile, has taken his Chat Thai Party - formed by the ruling elite of Soi Rachakrue - back to its roots in rural areas. Moreover, some senators have promised to amend the bankruptcy and foreclosure laws to provide more protection to Thai debtors, and to prevent foreign creditors from taking over the country.

Along the highway which links Bangkok with the heartland of the Northeast, several huge billboards proudly present Prachuab Chaiyasarn, the leader of the Seritham Party, as the next Isaan prime minister. His message is unambiguous: If Isaan hopes to achieve lasting prosperity, it can only pin its hopes on Prachuab, "the genuine son of Isaan".

Korn Dabaransi, the leader of the Chat Pattana, has always been a darling of big business. This time around he cannot afford to miss the nationalist bandwagon. In a big campaign poster on the Rama III Road, his expensively-suited figure towers over motorists on the expressway. His message: "The government must help out Thai business."

This leaves the Democrats in defensive mode, for the party has been accused of selling off Thailand to foreign interests - first to the IMF, and then to foreign banks and big multinational corporations.

Most politicians are shamelessly capitalising on nationalism, asking to what extent Thailand should liberalise its economy and protect its industries, without losing its integrity - and how the country can strike a balance between globalisation, IT revolution and financial-market turbulence.

Here we may look to His Majesty the King for guidance. In a 1997 speech, the King indicated that if only Thailand could practise the economics of self-sufficiency with a balance of trade, goods, consumption, production and sale, it can survive. On self-sufficiency, Thailand "does not have to be a hundred per cent, or even fifty per cent, but perhaps only twenty-five per cent - it will be bearable", His Majesty said.

With this guidance, nationalist sentiment in the present political atmosphere only has to come down to earth in a more rational and practical way.

BY Thanong khanthong

The Nation 15.12.00


[e-mail]

[BodyG]

Aus dem SEAMICO Board: Über Prachai Leophairatana - TPI-

[Tuesday, December 12, 2000 2:50:46 PM]
Subject : TPI - Coout delays vote......AGAIN
Message : As if we needed any further stalling on this important issue....the Thai Bankruptcy Court has delayed the ruling on TPI`s approved debt restructuring deal with creditors. No time frame has been given for when a ruling will take place. Apparently, TPI management object to the Judge presiding over the case. Obviously, TPI has taken the US election fiasco as an example and is determined to find any number of reasons to stop the agreement being implemented.......a more short-sighted stance is difficult to imagine. This may mean the approved plan is ineffective when, and if, it finally gets approved....thus more delays as the plan is amended again. Unbelievable.,.....and a sure killjoy for a hoped-for pre New Year market rally. Start the holidays now.

Name/E-mail : [e-mail] Reply





[Tuesday, December 12, 2000 4:32:34 PM]
Message : ununderstanable, indeed. how can they let a single lunatic let the whole thai businessworld and economy hold as a hostage. and how often do we hear the word "unfair" from his mouth. they should do with him just as he would do with anybody owing him money: PAY OR SHOOT!!!!!

Name / E-mail : bert





[Tuesday, December 12, 2000 5:13:56 PM]
Message : Given the fees that Effective Planner is pulling out of the process they should be the ones who should be shot for not finding a way to gag "the lunatic" in the first place. Perhaps now is the time to really put the company into bankruptcy and liquidate all assets. Then the thousands out of work and on the streets can really wonder who they should thank for all this. Gotta admit, the MSCI boys, the rating agenicies and all ex-Thailand investors from the fund management side have got it right this time.

Name / E-mail : tprice





[Tuesday, December 12, 2000 7:37:01 PM]
Message : would be another solution worth while to think about. at least

Name / E-mail : bert





[Tuesday, December 12, 2000 10:03:51 PM]
Message : CNBC says that the judge will make his decision on the petition at 1pm Wednesday, and if he goes against the petition the court should make their ruling on the Effective Planner "Plan" immediately.........(immediately has many meanings here in SE Asia)

Name / E-mail : boonchai





[Thursday, December 14, 2000 12:31:58 PM]
Message : How much do you think it would take to `buy` a favourable decision for Khun P ??? 25, 50 , 75 mil? This is what I worry about. He might do a RAJAN on us!

Name / E-mail : Deiter Kroll





[Thursday, December 14, 2000 3:26:36 PM]
Message : u r right Deiter. I am sure he pay to get change of judges. he is a cheater from the bone

Name / E-mail : [e-mail]

[BodyG]

Also irgendwie scheint mir diese gegenseitige Anmache international vergleichbar zu sein. Es folgt jetzt nichts aus dem hiesigen Board, sondern aus dem SEAMICO Snake-Pit:

Wednesday, December 13, 2000 6:04:57 PM]
Subject : Don`t waist your time...thaistocks is your answer
Message : Front Page Advertising on Thaistocks.com! Thaistocks.com is the primary source for qualified & independant views on stock investmenting in Thailand. At the moment we count just below 45,000 pageviews pr. month. But we are not focused on giving our advertisers a high number. You can get this anywhere. What is important is that we have a very targeted and high quality readership audience which took over 3 1/2 years to build. Thaistocks.com has the dominant market share in the subject it covers. Our many readers and subscribers come from all over the world. Our established track record and long "on location" presence assures top quality and repeat viewers. We urge you to consider our superior product, and forget about all these cowboy investment sites. It`s time for Thaistocks!

Name/E-mail : [e-mail] Reply





[Wednesday, December 13, 2000 6:23:50 PM]
Message : Seamico, why don`t you erase this kind of fool out of your site.

Name / E-mail : Sick of Thaistock.com





[Wednesday, December 13, 2000 10:39:20 PM]
Message : I agree with "Sick of Thaistock.com" Seamico, you should ammend your snakepit rules......adding a clause that any advertisements for any other locations will be liable for a fee of your choice. I am sure that if you put a "disclaimer" for snakepit and listed this policy, the idiots that keep advertising here would not read the printed details....and then, even though they are "stupid" they would be required legally to pay Seamico a fee................please, consider this so we can be rid of this "Blatant Advertising" once and for all.....

Name / E-mail : boonchai





[Wednesday, December 13, 2000 11:03:50 PM]
Message : why don`t you inbread-mentality creatures from thaistocks.com get the message? no body wants or appreciates you here.

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 12:29:38 AM]
Message : This message clearly violates rule no. 5 of the chatroom agreement (advertising). I recommend to Seamico to delete this message. Thank you!

Name / E-mail : zorro





[Thursday, December 14, 2000 7:42:08 AM]
Message : We did not post this first nor any others message!! (Even while the contents in it are true). In fact, we have not posted *any* message in this "pit" for many weeks and will not post any. We only came here because we got a typicial aggressive e-mail, saying we should not post such messages. But we did not and never have! Sorry for any misunderstanding to the *few* good folks in here. We note the many insulting and outright lying posting in this pit and so we want nothing to do with any regulars in here! *Consider this then an un-advertising, posted by the real people at thaistocks.com * I personally guarantee: this message nor any other in the recent past, does comes from us!

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 7:45:44 AM]
Message : The last sentence should read "Does not come from us". Also, we do not answer "hate" mail nor send any out. We focus on value stocks, not slamming others.

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 8:19:23 AM]
Message : fu ck u thai stoocks.com, son of a b i t ch

Name / E-mail : your balls in my hand





[Thursday, December 14, 2000 9:57:30 AM]
Message : I tend to belive PR on this occassion! Even he isn`t stupid enough to post his advertising info on another site.....I hope. It`s probvably just someone trying to stir up a fight. Poor taste, and boring in the extreme.

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 10:57:00 AM]
Message : Thank you Hoonthai. Looking through the pit, I see many messages which others then claim to be coming from us, but they did not. We want to promote SET investing/understanding, not flare up nor make personal attacks. Unlike some ill postings stated here, we have not send out any "hate mail"...and found many lies among otherwise a few good thoughts. We have long learned that on message board you stick to the issues or it quickly becomes nasty. We may be rightous at times...but we feel we are correct to only advocated owning solid values, in this still bearish SET market.

Name / E-mail : [e-mail]

[BodyG]

Thailand Hot Stock: Bangkok Bank Up On TPI Decision
BANGKOK (Dow Jones)--Shares of Bangkok Bank PCL (H.BBK) traded on the foreign board are up 4.6% on news that the Bankruptcy Court has thrown out objections to a creditor-approved debt-restructuring plan for Thai Petrochemical Industry PCL (H.TPE).
Court hearings are to resume Friday afternoon. If implementation of the plan is approved by the court, it would help reduce nonperforming loans at Bangkok Bank, which is one of TPI`s major creditors.

At 0455 GMT (11:55 p.m. EST Thursday), foreign board shares of Bangkok Bank were up 1.75 baht ($1=THB43.519), or 4.6%, at THB40.25 on volume of 1.88 million shares.

Shares traded on the main board are up THB0.50, or 1.9%, at THB26.25 on volume of 1.09 million shares.

Thai Petrochemical shares are unchanged at THB3.70.

The banking sector index was up 1.5%, the chemicals sector was up 1.2%, and the Stock Exchange of Thailand`s SET Index was up 2.33 points, or 0.9%, at 273.62.

[BodyG]

FINANCE ONE


Report clears three banks of complicity
Prosecutors likely to file few charges


Kochakorn Boonlai


Police investigators have cleared executives of three banks of complicity regarding a 2.12-billion-baht fraud case at the defunct Finance One.

The Economic Crime Investigation Division has forwarded its report on the transactions to prosecutors.

Police sources said relatively few suits would be filed related to the case, with no charges made against three banks that had been accused of complicity in processing financial transactions between Finance One and two of its subsidiaries.

Several Finance One executives, including former president Pin Chakkapak and former managing directors Termchai Pinyawat and Samran Kanokwattanawan, have already been charged in the case, which involves bills traded between Finance One and its subsidiaries, Joint Business Management and Ekapak Co.

Prosecutors say the deals, which involved the issue and repurchase of the bills on the same day, led to damages of 2.12 billion baht.

Named in the case were senior executives of Siam City Bank, Nakornthon Bank and Credit Agricole Indosuez, which had served as intermediaries in the transactions.

Police sources said they declined to recommend pressing charges against the three banks and senior executives based on testimony given by the central bank that the transactions were not illegal and were considered standard practice in the banking sector.

"Since the central bank is the main regulator of local banks, if they insist that the transactions were not illegal, we have to listen," one senior investigator said. "In any case, it would be highly difficult to prove that the banks had colluded in fraud."Police investigators said they were concerned that the insistence by the central bank that the transactions were legal would set a precedent and affect the prosecution of other cases.

The Finance One case has led to tensions between prosecutors and the Bank of Thailand, which had three senior executives-deputy governor Kitti Patpong-pibul, assistant governor Chakthip Nithibon and Kietchai Sophastienphong-implicated in the case.

Mr Kitti, former managing director of Nakornthon Bank, was suspended from duty several months ago, while Mr Kietchai, a former executive vice-president at Siam City Bank, has since resigned from the central bank.

Mr Chakthip, former country manager of Credit Agricole Indosuez, remains as an assistant central bank governor and manager of the Financial Institutions Development Fund.

Hearings on the fraud case against the former Finance One executives will resume in the Criminal Court on Jan 29. Mr Pin is still in England where he is fighting extradition. He is due to appear in court in London today.

Kittisa Chirapan, a special prosecutor in the case, said he had received the investigation report from police. He confirmed that police had recommended that some charges be dropped, but declined to provide details.

Rathakorn Nimwatana, head of the central bank`s legal division, said he was unaware that the police had finalised their report. The central bank would not take any further disciplinary action against the executives until prosecutors made a final report, he said.
Quelle: Post 15.12.00

[BodyG]

Suchon expelled for vote-buying
Host of witnesses fail to halt historic ban
Mongkol Bangprapa
The Election Commission yesterday issued its first red card for vote-buying, expelling Suchon Chartsuntharawut, a Chart Pattana candidate in Chaiyaphum province.


Border patrol police came upon Mr Suchon distributing money and telling villagers at a rally in Phakdi Chomphon district that they would each get 100 baht.


Mr Suchon defended himself before the commission, bringing 33 witnesses to declare his innocence, but was still found guilty of violating article 44 (1) of the election law.


Sawat Chotipanich, the commissioner in charge of investigations, said the decision would be forwarded to a panel comprising the chairmen of the 11 legislative committees of the Council of State for scrutiny in five days.


Regardless of the panel`s opinion, the commission would meet again to make a final decision.


If it confirms the disqualification, a final announcement expelling Mr Suchon from the race would be issued, Mr Sawat said.


Mr Suchon said he accepted the ruling but insisted he was innocent.


Suwat Liptapanlop, the Chart Pattana secretary-general, said Mr Suchon was not a strong candidate and the party accepted the ruling. Mr Suchon would also be expelled from the party.


- A Democrat candidate in Ratchaburi was summoned before the commission to answer allegations of poll fraud yesterday.


Bunmak Sirinavakul has been accused of setting out to buy votes by distributing goods to voters.


Banyat Bantadtan, a Democrat deputy leader, said the commission reserved the right to hear Mr Bunmak`s explanation.


He defended Mr Bunmak, who ran a conventional door-knocking campaign, and said the party would co-operate fully.


The commission should be wary of attempts by rival parties to present false evidence, he said.


He supported the issuing of red cards where there was outright evidence of fraud by any candidate.


Mr Bunmak said the allegation was made by villagers under the influence of a rival candidate.


"I will have no problem proving my innocence," he said.


A Chart Pattana candidate in Samut Prakan was due to appear before the commission today to answer campaign charges, a source said.

Quelle: Post 15.12.00

[BodyG]

Friday, December 15 6:58 PM SGT

Thai Baht Ends Higher On Regional Currency Gains
BANGKOK (Dow Jones)--The Thai baht ended slightly higher Friday chiefly on regional currency strength, and amid high offshore swap premiums, dealers said.
They noted, however, that volume was thin and gains were exaggerated.

The U.S. dollar finished at 43.425 baht, down from THB43.465 at the Asian close Thursday, after trading in a tight band of THB43.40 to THB43.47.

The Singapore dollar has led gains against the dollar among Southeast Asian currencies, after gains by the Euro.

Higher swap premiums since Wednesday, particularly short-term ones, make investors reluctant to let go of the Thai currency for fears of another serious baht liquidity squeeze. A liquidity squeeze in November prompted the Thai central bank to buy dollars from local banks at a discount.

Dealers said investors didn`t react strongly to the Thai bankruptcy court`s long-awaited endorsement of a $3.7 billion debt plan for Thai Petrochemical Industry.

"Still it`s a positive sign for investors. If the court hadn`t endorsed the plan, we expected the baht would decline," said a local dealer.

Prachai Leophairatana, founder and chief executive of TPI, Friday said he would appeal against the court-approved debt plan next week, which keeps the TPI court drama going on.

The TPI case is considered a test of Thailand`s new bankruptcy law and should set the tone for foreign investment in Thailand, where high nonperforming loans rank among top investment concerns.

Dealers expect quiet trading to continue in the last two weeks of the year. They said the baht should find resistance at THB43.30 next week, with support at THB43.65.

(MORE) Dow Jones Newswires 15-12-00

1058GMT

Govt Bond Prices Up On Fund Buying

Government bond prices ended higher as provident funds shifted funds from low-yield deposit accounts to bonds, mainly in the liquid seven- and eight-year terms, dealers said.

As bank dealers sold to clients, they bought elsewhere along the curve to maintain bank portfolios, they said.

The government bond maturing July 2007 closed in a bid/offer range of 4.72%/4.70%, compared with a last deal Thursday of 4.7675%. Yields move in the opposite direction to prices.

The December 2008 bond closed at 5.27%/5.26%, strengthening from 5.29%. Yields on other terms were mostly lower by one or two basis points.

Friday volume rose sharply to THB11.58 billion, from THB5.92 billion Thursday, in secondary market trading of public and private-sector debt instruments, according to the Thai Bond Dealing Center.

The overnight interbank interest rate dropped on increasing liquidity, as banks have begun to prepare additional cash reserves for the holiday period. The overnight repurchase market interest rate rose slightly, tending to converge with the interbank rate. Longer terms were flat.



Market Term Friday Thursday
Interbank Overnight/Most Active 1.5000% 1.7500%
Repurchase Overnight/Close 1.2500% 1.0000%
14-Day 1.5000% 1.5000%
3-Month 2.4375% 2.4375%

[BodyG]

Friday, December 15 1:10 PM SGT

Thailand Hot Stock: Bangkok Bank Up On TPI Decision
BANGKOK (Dow Jones)--Shares of Bangkok Bank PCL (H.BBK) traded on the foreign board are up 4.6% on news that the Bankruptcy Court has thrown out objections to a creditor-approved debt-restructuring plan for Thai Petrochemical Industry PCL (H.TPE).
Court hearings are to resume Friday afternoon. If implementation of the plan is approved by the court, it would help reduce nonperforming loans at Bangkok Bank, which is one of TPI`s major creditors.

At 0455 GMT (11:55 p.m. EST Thursday), foreign board shares of Bangkok Bank were up 1.75 baht ($1=THB43.519), or 4.6%, at THB40.25 on volume of 1.88 million shares.

Shares traded on the main board are up THB0.50, or 1.9%, at THB26.25 on volume of 1.09 million shares.

Thai Petrochemical shares are unchanged at THB3.70.

The banking sector index was up 1.5%, the chemicals sector was up 1.2%, and the Stock Exchange of Thailand`s SET Index was up 2.33 points, or 0.9%, at 273.62.

Schlusskurs BBL 26 BBL-F 39,50
F-Board Looser TT&T-F minus 20% Winner TA-F plus 7,8%

[BodyG]

Latest Columns


12/13 19:46
Bond Investors Flinch at New Thai Debt Sales: Rates of Return
By Angela Jones


Bangkok, Dec 14 (Bloomberg) -- Investors in Thai bonds are welcoming government plans to create a bigger market. They`re just not sure they want to be the people buying.

A proposal to increase state debt sales as much as 60 percent next year may lift activity in a market that`s a thousandth the size of the U.S. Treasury market. A government plan to implement a computer trading and payment system in 2001 may also lure investors. Fitch Ratings Thailand Ltd. plans to be the first international rating agency to open an office in the country.

What Thailand needs to lure investors, though, is to overcome its reputation as the place that triggered an Asian recession three years ago. That may be tough as the economy slows, leading to a rising budget deficit, a falling baht and greater risk of default. Thai bonds, once targeted by investors betting on a recovery from the regional crisis, are no longer such obvious bargains.

Thai ``sovereign bonds are stingingly expensive,`` considering the risk, said Kevin Colglazier, one of the portfolio managers for $400 million of debt at CMG First State Investments (Hong Kong) Ltd. He also says the market is so small it can be tough to trade the Thai bank bonds he owns.

The nation`s 2007 dollar bonds sold in the U.S. yielded as much as 1,000 basis points more than same-maturity Treasuries in 1998. The premium is now down to 176 basis points, with the Thai bonds yielding 7.09 percent while seven-year Treasuries yield 5.33 percent, according to Bloomberg.

`Had Enough`

Ali Naqvi, who manages about $3 billion for Citigroup`s SSBC Asset Management Group in New York, sold his Thai bonds at the start of the year and probably won`t buy again soon. ``Once that high risk premium dissipated, we decided we had enough of a good run there,`` he said. Naqvi now favors higher-yielding Latin American debt.

What`s worse, Thai bonds are among the riskiest in Southeast Asia. Standard & Poor`s rates the nation ``BBB-,`` its lowest investment-grade rank. China, Malaysia, South Korea, Taiwan and Hong Kong all have higher ratings. S&P has also warned the rating may be cut to ``junk`` status if efforts to spur the economy slow, a move that would preclude many bond funds from investing.

Yields may even have to rise as the government plans more debt sales to pay for its plans to spend 910 billion baht ($21 billion) in the fiscal year that started Oct. 1. The government projects a deficit of 105 billion baht, which would be the country`s fourth consecutive deficit after a decade of surpluses.

Thailand has sold about 113 billion baht of bonds and bills so far this year and plans to sell as much as 181 billion baht next year to pay for new investment and to fund its deficit.

The market may struggle to absorb so much debt. With about $3.5 billion of government bonds trading, it`s about one thousandth the size of the $3.4 trillion U.S. Treasury market.

Baht

Overseas investors also have to account for the odds Thailand`s currency, the baht, may fall further.

The baht dropped almost 14 percent against the U.S. dollar in 2000, sliding since the central bank was given control of interest rates in April, deciding to keep borrowing costs low to spur the economy. The central bank has held its 14-day lending rate at 1.5 percent, the lowest in Asia except Japan.

The policy hasn`t helped growth much since Thailand economy expanded 5.9 percent in the first half of the year, while Malaysia`s and Singapore`s grew about 10 percent.

The outlook isn`t all gloomy.

A dozen Thai banks, including Siam Commercial Bank Pcl., were upgraded to investment grade by Moody`s Investors Service in June as they paid off debt. At the same time, Moody`s upgraded Thailand`s sovereign debt to investment grade.

``While the progress is slow, Thailand`s banking sector is restructuring itself,`` said CMG`s Colglazier. ``The government`s had a fair amount of involvement.``

Investors are still a long way from piling into the market, though, and corporate bonds may fare even worse than government debt. Declining global demand is set to curb offshore appetite for the nation`s exports, cutting earnings and making it tougher for companies to pay their debts.

For one, Italian-Thai Development Pcl defaulted on 3.5 billion baht of bonds in October. Thailand`s largest construction company, which blamed its cash problem on a slower- than-expected industry recovery, is asking creditors to ease terms on all its debt.

``There are clearly some growth risks to Thailand,`` said David Rolley, who holds Thai bonds as part of the $3 million in emerging market debt he helps manage at Loomis Sayles & Co., in Boston.

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Economies


12/14 20:22
Siam Cement`s Reliance on Exports Mirrors Thai Economy`s Woes
By Anuchit Nguyen


Bangkok, Dec. 15 (Bloomberg) -- Siam City Cement Pcl, Thailand`s No. 2 cement maker, sells half the cement it makes overseas at cut-rate prices just to keep its factories running.

``We`d better export, even though we make a small profit margin,`` said Paul Heinz Hugentobler, president of Siam City, a unit of Holderbank Financiere Glarus AG, the world`s biggest cement maker. ``We need export volume to utilize our capacity and avoid closing the plants.``

Siam City isn`t the only Thai company that needs overseas customers to stay afloat. While exports have helped the economy return to growth after a 1997-1998 recession, consumer and corporate spending is stalling, banks are reluctant to lend and factories are running at less than two-thirds capacity.

Torpid domestic spending probably slowed third-quarter gross domestic product growth to 4.4 percent from a year ago, compared with 6.6 percent the previous quarter, according to the median forecast of eight economists polled by Bloomberg News. The government will release the third-quarter figures Monday at 11 a.m. local time.

Thai factories used only about 56 percent of their capacity on average in the third quarter. The country`s cement makers, for example, have the capacity to produce about three times more than the 18 million tons of cement Thailand consumes a year, Siam City`s Hugentobler said.

Job Worries

Thailand, where Ford Motor Co. and General Motors Corp. have plants, may see a sharper slowdown next year as economic growth in the U.S. and other major markets slows.

The economy will probably expand 4.5 percent next year, compared with 4.9 percent this year, economists forecast. The government said Wednesday export growth may slow to 11 percent in 2001 from this year`s 19 percent.

``Growth has been driven mainly by strong exports,`` said Daryl Goh, an economist at SG Securities Ltd. in Hong Kong. ``The main concern is weak private consumption and a slow growth in individuals` net income as unemployment is still rising.``

Merrill Lynch Phatra Securities Co. Ltd., a brokerage venture between Merrill Lynch & Co. and Thai Farmers Bank Pcl, last month fired 10 percent of its staff because of falling income from trading on the Thai stock index, which has shed 51 percent of its value this year.

Standard Chartered Nakornthon Bank Pcl, a unit of Standard Chartered Plc, earlier this year cut half its workforce through an early retirement program to reduce costs and trim losses.

Lending Freeze

Rising global oil prices are also crimping growth, driving up costs from transportation to electricity. Thailand imports almost all of its crude oil, whose cost has been magnified by a 14 percent decline in the baht`s value this year.

``Domestic demand is seriously affected by high oil prices,`` said William Heinecke, President of Pizza Pcl, the country`s largest operator of fast-food restaurants, including Burger King and Dairy Queen outlets. ``We have seen a slowdown in sales of many brands.``

With about one in four loans still in default, few banks are willing, or able, to lend to companies looking to expand their businesses.

``High non-performing loans have been holding back the recovery,`` said Li Lian Ong, an economist at Macquarie Bank Ltd. in Hong Kong. ``Without bank lending, it is very hard to stimulate domestic demand.``

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Thais Leap at Taiwan Tech Dream
By Joshua Kurlantzick, AsiaWise
15 Dec 2000 15:30 (GMT +08:00)
Electronics manufacturer Cal-Comp (Thailand) made a splash at the Stock Exchange of Thailand last week with an initial public offering that was already fully subscribed on the first day of the offer, raising about Bt900 million (US$20.7 million). The sale went well in part because it involved a high-tech company and is only Thailand`s third IPO since the Asian financial crisis began in 1997.

Cal-Comp`s success illustrates how economic recovery in Thailand is gradually paving the way for companies to begin to be able to raise money again in the country`s battered equity market. And it shows how regional technology heavyweight Taiwan, the world`s No. 3 maker of computer hardware, has quietly spread its influence and wealth around in Asia. Cal-Comp is 76% controlled by Taiwan electronics tycoon Rock Hsu, who controls big Taipei-listed notebook computer maker Compal Electronic Co.

Yet Cal-Comp`s shares -- set to begin trading in January -- carry some risks. The company`s debt ratios are way above its peers in Thailand, and earnings could slow next year amid ebbing global demand for electronics products. "The whole electronics sector is not expected to outperform the market much longer, because of the U.S. potential decline," says Seamico Securities analyst Warapon Wiboonkanarak.

Cal-Comp produces compact disc systems, inkjet printers, and other consumer electronics goods. The company is the third-largest listed electronics manufacturer in Thailand, after Hana Microelectronics, a local firm, and Delta Electronics, an affiliate of Taiwan-based Delta Electronics. Cal-Comp`s revenues will top Bt33 billion this year, up from Bt19 billion in 1999.

Yet Cal-Comp stands to be hurt by a U.S. downturn, perhaps even more than rivals Hana and Delta. That because a huge 40% of its business comes from only one customer -- Hewlett-Packard, which is lowering its own growth forecasts. "It should be a question in investors` minds when a company is so dependent on one client," says Tisco Securities electronics analyst Monchai Mokranuraksa.

What`s more, Cal-Comp is heavily in debt. After the IPO, the company`s debt-to-equity ratio has fallen from three-to-one to roughly two-to-one, but analysts say that ratio is likely to rise again on likely borrowing next year for expansion. Other companies in the electronics sector have debt-equity ratios of about 0.5 to one.

In the short-term, Cal-Comp may rise by 10-15% over its IPO price when it starts trading on pent-up enthusiasm among Thai investors for tech-stock riches. The problem is the tech sizzle that`s already ended in the U.S. may quickly fade from Cal-Comp, too.

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!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

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UBS Warburg Analyse: United Broadcasting UBC.BK buy 15.12.00

http://www.bday.net/dec15/UBSW-Asia_Research/th151200.pdf

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KGI Securities One Einzelheiten zu BAY, BOA und TISCO:

http://www.bday.net/dec15/S-One_Research/Th001215.PDF

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Techn. Analyse Chart SETBank und BBL Beide BUY gestuft von SEAMICO 15.12.00:

http://www.bday.net/dec15/Seamico_Research/20001215-Tech-e.p…

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Im Gegensatz zu UBSWarburg, ein SELL von SEAMICO für UBC

http://www.bday.net/dec15/Seamico_Research/20001215%20-%20Da…

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BNP PARIBAS PEREGRINE Asia Report 15.12.00 BAY und Telecom

http://www.bday.net/dec15/Thailand_Daily/Ad001215.pdf

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Merril Lynch Phatra sehr ausführliche Analyse über
Nation Multimedia Group

http://www.bday.net/dec15/Merrill_Lynch_Phatra/20134906a.pdf

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GENERAL ELECTION / ASSET PROBE


Second call for Thaksin to clarify transfers
Misunderstandings, says party leader


Nuntawan Polkwamdee and Wichit Sirithaveeporn


The Securities and Exchange Commission has sent a second letter to Thaksin Shinawatra asking him to explain the transfer of billions of baht in shares.

Prasarn Trairatvorakul, the SEC`s secretary-general, said regulators were focused on section 246 of the SEC Act.

The section requires a report to the commission of any share transfer worth more than 5% of outstanding shares in one business day.

The only exception, Dr Prasarn pointed out, was if the share disposition did not result in a management or business change.

Mr Thaksin, the Thai Rak Thai Party leader and billionaire founder of telecom giant Shin Corporations, is already under investigation by the National Counter Corruption Commission on whether he violated asset disclosure rules involving the transfer of billions of baht in shares to his domestic staff.

If the NCCC rules that regulations were violated, and the ruling is upheld by the Constitutional Court, Mr Thaksin would be barred from holding office for five years.

Dr Prasarn said the SEC was seeking clarification of why no report had been made on the share transfers.

He said if the issue had been clarified during testimony to the NCCC, the SEC would accept its final ruling.

Violators of section 246 of the SEC Act are punishable by a prison term of up to two years and fines of up to 500,000 baht.

Finance Ministry officials are also conducting a separate inquiry on whether Mr Thaksin evaded any tax liabilities relating to the share transfers.

One Revenue Department official said the investigation centred on tax filings made by 11 people, including Mr Thaksin, his wife Khunying Pojamarn and his domestic staff named as nominees receiving shares.

Sources said a tax return, detailing the shares as required by the law, requires both the nominee and the actual owner to submit a report.

Even though the actual owner bears the tax liability on the share holdings, a nominee still is required to file a tax return. Sources said how much Mr Thaksin, as the actual owner, was required to pay in back taxes and penalties remained uncertain.

"Many companies use nominees in their business operations," an official said. "The Revenue Department considers the liability to fall on the actual owner.

"If the actual owner, in their filing, fails to list shares held through nominees, then it is a form of tax evasion," he added.

But another Revenue Department official said it was unclear whether nominees were required to file on the shares, so long as the actual owner did report their holdings and the source and destination of asset transfers.

Mr Thaksin, for his part, has denied any wrongdoing or intention to hide his assets, and has blamed assistants and legal advisers for misunderstanding the law, leading to his troubles.
Quelle: POST 15.12.00

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Friday, December 15 8:05 PM SGT

Foreigners Sold Net THB33.4M Thai Stocks Friday
BANGKOK (Dow Jones)--Foreign investors were net sellers of 33.4 million baht ($1=THB43.512) worth of Thai stocks Friday out of a total of THB3.64 billion traded, the Stock Exchange of Thailand, or SET, said.
Figures are in baht; some are rounded; percentages are calculated from unrounded numbers:


Bought % Total Sold % Total
Foreign 795.2 mln 21.87 828.6 mln 22.79
Local Retail 2.77 bln 76.23 2.67 bln 73.38
Institutions 69.0 mln 1.90 139.3 mln 3.83



Note: Foreign activity represents transactions by both institutions and individuals, local retail activity is by Thai nationals only, and institutional activity is by domestic institutions, SET member-brokers and sub-brokers.

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Prachai finally shown the door


After more than a year of legal wrangling and bitter court disputes, the bankruptcy case of the Thai Petrochemical Industry (TPI) was brought to an end yesterday when the Central Bankruptcy Court approved its rehabilitation plan, paving the way for the removal of Prachai Leophairatana from the debt-ridden company`s management.

Prachai, the recalcitrant debtor, suffered another blow when the Supreme Court voted down his delaying-tactic motion calling for the removal of the judges who deliberated the TPI case and all other members of the Central Bankruptcy Court bench. With these two rulings, Prachai effectively lost control of TPI and opens the way for Effective Planners to take over TPI management on Monday.

The Nation

LAST MODIFIED: Friday, 15-Dec-00 12:06:26 EST

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YOUR EDITORS` VIEW: Level field vital for NCCC probes


It is in the country`s interests that the National Counter Corruption Commission (NCCC) is applying the same yardstick in its investigations into the shareholdings of prime ministerial candidates Thai Rak Thai leader Thaksin Shinawatra and Democrat leader Chuan Leekpai, as well as secretary-general Banyat Bantadtan.

This means that holders of public office who intentionally misrepresent their declaration of wealth must be held equally liable to conviction under Article 295 of the Constitution and face banishment from political activity for five years.

The NCCC must establish just one thing: whether the politicians intentionally submitted false declarations of their wealth. This is the rule the NCCC investigators have applied in past cases.

Former Democrat secretary-general Sanan Kachornprasart was found guilty of submitting a false declaration, hiding his true wealth by claiming a fake Bt45-million loan. Former Thai Rak Thai party-list candidate Prayut Mahakitsiri was found to have deliberately under-declared his assets by more than Bt400 million.

Guilty verdicts were also given to former deputy public health minister`s aide Jirayus Jaratsathian, former education minister`s aide Kosol Sisang, and former senator Sukhum Chertchuen.

Thaksin claims the incorrect declaration of assets held on his behalf by a number of his domestic helpers was due to an oversight by his private secretary. He, himself, under-declared his assets by slightly over Bt6,000, and his wife Pojamarn by more than Bt100,000.

Chuan claims he did not know he owned more than Bt100,000-worth of shares in Surat Thani Cooperative, and had forgotten his holding of a share worth Bt20 in Thammasat University Student Cooperative, bought when he was studying at the campus. Banyat stated he had forgotten to declare his more-than Bt500,000 stake in Sisuban Trading Co.

In its ruling on similar cases, the NCCC found it groundless for politicians to claim they had forgotten to declare some of their wealth.

It is, therefore, not the amounts - whether Bt400 million or just Bt20 - but rather the intention that establishes guilt over a false declaration of wealth.

In stating publicly what yardstick it is going to apply, the NCCC has given Chuan, Thaksin and Banyat an even playing field. They are equal before the NCCC scrutiny under the Constitution.

If the axe were to fall on both Chuan and Thaksin, there is the hope that a new crop of better politicians will replace them.

The question now rests with the timing of the verdicts. With the last witnesses for Thaksin completing their testimony yesterday, it will take the NCCC subcommittee about two weeks to conclude its findings. The verdicts are expected to be available towards late December.

It is in the best interests of the country if a verdict is given before the January 6 election. Voters should be given every opportunity to know whether those being investigated will remain in the running for election.


[e-mail]

LAST MODIFIED: Friday, 15-Dec-00 12:06:31 EST

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Effective Planners set to take reins at TPI


EFFECTIVE Planners is set to take over the management of Thai Petrochemical Industry (TPI) on Monday and quickly move to curb the role of its recalcitrant boss Prachai Leophairatana, following the Central Bankruptcy Court`s approval yesterday of the long-delayed rehabilitation plan.

"The management will be changed," said Anthony Norman, the managing director of Effective Planners, the court-appointed administrator of TPI`s debt-rehabilitation plan.

This follows a swift ruling by the bankruptcy court, which yesterday backed the rehabilitation plan for TPI proposed by its creditor banks.

TPI`s chief executive officer and major shareholder, Prachai Leophairatana, is expected to be sidelined after yesterday`s court defeats.

Prachai had earlier suffered another blow when the Supreme Court rejected his last-ditch bid - designed as a tactical delay - to remove all the presiding judges at the Central Bankruptcy Court.

There have been rumours that Kamolchai Phatrarodom, a former amnaging director of National Petrochemical, might be a candidate for the top job at TPI.

But Norman declined to speculate on the new management, saying the company would need to consult over the matter first and discuss the role of the Leophairatana family.

The priority for TPI, he said, was to seek fresh financing support of at least US$100 million from local and foreign banks to help it expand its production capacity.

The working capital would be used to purchase crude oil so that TPI could increase its refinery output from 75,000 barrels a day to 125,000 barrels a day, Norman said.

He insisted that there would be no layoffs and that Effective Planners was ready to take legal action against any workers who try to obstruct the creditors` move to run the company.

With a court order in hand, Norman said, there should not be any problems with Effective Planners taking control of TPI`s operations.

In spite of the time-consuming legal wranglings over the historic TPI case, Norman said the process was working out fairly.

"I believe that the Thai legal system is not too slow, because it is moving on process and fair to all parties related to the law," he said.

A court ruling on the TPI case has been repeatedly postponed because Prachai, the company`s CEO, kept petitioning on legal technicalities.

The final debt plan was approved on Nov 27 by creditors that own up to 96 per cent of the company`s US$3.8-billion debt.

Workers also played key role in the delaying tactics by staging angry protests that forced postponement of creditors` meetings and court hearings on the debt plan on several occasions.

Yesterday about 2,500 workers rallied outside the Bangkok Insurance Building, where the Central Bankruptcy Court is located, to provide morale support to Prachai.

BY SOMLUCK SRIMALEE

The Nation

LAST MODIFIED: Friday, 15-Dec-00 09:17:55 EST

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COMPANY REPORTS:


INDUSTRIAL FINANCE CORP OF THAILAND has divested its 25 per cent stake in Thai Sakura Finance Co Ltd to the finance company`s existing shareholders.

The 375,000 shares were sold at Bt1 apiece.

In its filing to the Stock Exchange of Thailand, IFCT said following the share sale it would have no share left in Thai Sakura.


CHAROEN POKPHAND FOODS` shareholders yesterday approved the plan to issue no more than Bt10 unsubordinated and unsecured debentures.

CPF said the bonds would be offered through a private placement. Selling the bond through a private placement requires the company to have the bond rated. CPF said the rating is under way.

The entire debentures would be issued in two tranches: Bt7 billion for short-term loan repayment, and Bt3 billion to be issued when the company needs new funds.

The debentures would carry no more than 10 years of maturity and the coupon rate would be fixed later depending on the market rate at the time of the offering.

CPF would also have call option on the bond issue, retaining the right to redeem the debentures prior to maturity. The issue date and target investors would be determined later on.

Its board of directors also resolved to pay another interim dividend of Bt1.25 for the third quarter performance.

Shareholders eligible for the dividend must be registered by noon, January 4, 2001 and the dividend payment would be made on January 15.


NATIONAL FINANCE`s wholly-owned subsidiary, National Securities Co Ltd, has disposed its stake in Yotaka Co Ltd.

The shares were sold on Thursday through a bidding auction at Bt00.01 per share.

National Securities had held a 99.99 per cent stake or 1,299,994 shares in Yotaka.


PADAENG INDUSTRY (PDI) is reaping Bt104.35 million from the sale of its subsidiary`s assets.

The land and factory of Padaeng Poongsan Metals Co Ltd`s (PPM) was sold on Tuesday to PSMT Corp. PDI holds a 68-per-cent share in PPM.

The gain would be booked in the company`s 2000 accounting year.


THAI PACKAGING AND PRINTING`s shareholders have approved the connected transaction between the company and a subsidiary, Thai Quality Pack (1989) Co Ltd.

Shareholders endorsed the debt repayment of Bt41.5 million from Thai Quality Pack to TPP.

An amount of Bt12.85 million would be paid in cash while other assets would be used to pay the remaining Bt28.65 million.


DELTA ELECTRONICS (THAILAND) has set the next exercise date for its warrants for January 3, 2001.

Each of the warrants, issued in May for directors and employees, can be exercised for one common share at the price of Bt10 apiece. Interested holders should inform the company from December 26 to December 28.

From a total of 4 million units, outstanding warrants stand at 2.943 million units.


BOOK CLUB FINANCE`s shareholders have approved the company`s plan to sell assets worth no more than Bt3.8 billion in principal to Chatuchak Asset Management Co Ltd.

While citing that details, conditions and agreements to execute the transaction between BC and Chatuchak are subject to BC`s board, the company noted that as of Thursday, Chatuchak had not committed to buying the assets.

Following the resolution, the finance company would be able to sell the assets to the asset management company, which is owned by Siam Commercial Bank, by Dec 29 as planned.

The shareholders also endorsed the plan to dispose Bt250,000 investment in Thai Obayashi Corp, a non-listed construction firm, to SCB. The investment`s book value as of Dec 31, 1999 reached Bt76.19 million. BC also wants to sell those assets by Dec 29, but all details are pending.

BC also set December 29 as the next exercise date of its No 1 warrants. Shareholders interested to exercise their warrants for common shares must inform the company from December 22 to December 28.

BC had issued 42,742,737 units of the three-year warrants, offered to existing shareholders in March. The exercise date is fixed on the company`s last working day of each month and the last date is fixed on May 2, 2003.

The warrants carry the strike price of Bt12 per share, with the exercise ratio of one warrant to one share.


THAI STANLEY ELECTRIC reported higher net profit of Bt 66.28 million for the third quarter of this year versus Bt29.76 million for the same period in 1999.

nCOMPASS EAST INDUSTRY (THAILAND) reported higher net profits of Bt27.65 million for the first quarter of this year versus Bt18.99 million in the same period in 1999.


NATIONAL FERTILISER and GRAMMY ENTERTAINMENT are the only two new stocks included into the basket of 50 stocks used in calculating the SET 50 index during the next six months.

The SET said yesterday the stocks were selected according to market capitalisation and liquidity criteria on December 1, 1999 and November 30, 2000.

The full list of securities is available in the Internet at www.set.or.th.

LAST MODIFIED: Friday, 15-Dec-00 09:18:35 EST

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Aus dem SEAMICO Board:

[Friday, December 15, 2000 10:45:06 AM]
Subject : Kuhn Prachai
Message : The court rejected Prachai`s petition today. The decision could be finalized for effective planner....hope so......if it is finalized.....here comes our christmas present!!!!!!!!!!!

Name/E-mail : boonchai Reply





[Friday, December 15, 2000 11:18:46 AM]
Message : We much agree! TPI is dead in the water...next year looks bullish.

Name / E-mail : Manu





[Friday, December 15, 2000 11:18:48 AM]
Message : Did you see prahcia has set up hgis own website www.prachai.com. What a joke.

Name / E-mail : Anon





[Friday, December 15, 2000 11:28:50 AM]
Message : I agree with Anon, Prachai is a joke, today he related the creditors with rapists....trying to take away his daughter.....all most all avenues are closing towards him.....if this was in another part of the world, the government would set up a sting, catch him trying to bribe officials....and the story would close......

Name / E-mail : Anonalso


Prachai is TIT - THAT IS THAILAND - :-)))) :-((((

[Watcher100]

@ Body G

Nur ein Tip.Du postest hier auf einem DEUTSCHEM BOARD.
Und ich stelle fest,Du bist Dein bester Poster.
Wenn Du erfolgreich sein willst,solltest Du mal die deutsche Interpretation wählen.

So long

WATCHER

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Hallo Watcher100(ist der Name Deutsch?)
Ich möchte so gern erfolgreich sein!
Was bedeutet Interpretation? Würdest Du mir bitte etwas Nachhilfe geben? Und was bedeutet board, poster und so long? immer dieses blöde Englisch, Du hast ja irgendwie schon Recht!
MfG

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Na ja, die POST war immer schon langsamer. Aber trotzdem , hier der Artikel über einen der größten Schlawiner:

THAI PETROCHEMICAL INDUSTRY


Court hands control of firm to its creditors
Prachai to appeal against ruling


Post Reporters


Prachai Leophairatana, chairman of Thai Petrochemical Industry, joins employees at a rally before a court ruling in favour of the $3.7-billion debt-restructuring deal giving control of his firm to creditors. _ TAWATCHAI KEMGUMNERD

Thailand`s biggest debt case, Thai Petrochemical Industry, took a giant step forward yesterday after the Central Bankruptcy Court approved a restructuring plan effectively giving control of the company to creditors.

Prachai Leophairatana, TPI chief executive and founder, vowed to immediately appeal the ruling and continue his fight against the restructuring plan.

The bankruptcy court approved the $3.7 billion restructuring plan for TPI and six of its subsidiaries yesterday afternoon, ruling that various protests lodged by Mr Prachai against the plan were invalid.

Before reading its judgment, the court warned all parties against taking any action considered to be an obstruction of justice.

In the morning, the Supreme Court ruled against a petition lodged by Mr Prachai for a change of judges at the bankruptcy court.

Mr Prachai had argued that the bankruptcy court was possibly influenced in favour of creditors, noting that the court was located at a building related to Bangkok Bank, TPI`s largest creditor.

Thousands of TPI staff gathered in front of the bankruptcy court yesterday to show support for Mr Prachai.

He thanked the staff for helping company executives in their fight against creditors and plan administrators, saying "it was a sad day" due to the "unfair treatment".

TPI lawyers say they will appeal the verdict with the chief judge of the Central Bankruptcy Court, which if accepted, would then be heard by the Supreme Court.

The appeals process must be concluded within 30 days, although a Supreme Court hearing could take up to one year. Regardless, the appeals would not affect implementation of the rehabilitation plan.

Mr Prachai reassured employees that he would continue to serve TPI and fight for the interests of employees and the firm, the largest petrochemicals conglomerate in Southeast Asia.

Yet how long that might be remains a question. Effective Planners, the company appointed by creditors eight months ago to handle the restructuring, has dismissed any plans to lay off staff, but says management changes were inevitable.

Restructuring talks between creditors and TPI have dragged on for over three years. Major creditors include Citibank, Bank of America, German bank KfW and the International Finance Corporation.

Many analysts have taken TPI as a test case over Thailand`s efforts towards corporate debt reform.

Vehement protests by staff and numerous legal challenges lodged by Mr Prachai had delayed formal acceptance of the restructuring plan, which was approved by creditors last month. Under the four-year plan, creditors will take a 75% stake in TPI by agreeing to convert $750 million in unpaid interest into new shares. Non-core assets, such as TPI`s tank farms, shipping terminals and holdings in cement manufacturer TPI Polene, will be sold off.

While Mr Prachai will be offered to repurchase shares from creditors at the end of the restructuring, he said if the plan was fully implemented, "there would be nothing left of the firm".

Anthony Norman, managing director of Effective Planners, said the verdict was "a satisfactory result" and that the firm would move ahead with the rehabilitation plan immediately.

He said production at TPI`s Rayong refinery would remain at 75,000 barrels per day. But once new working capital was obtained, daily production would be increased to the optimum 125,000 barrels level.

TPI shares on the Stock Exchange of Thailand yesterday closed unchanged at 3.7 baht. The SET index overall closed up 1.88 points at 273.17, with turnover of 3.63 billion baht.
Quelle: POST 16.12.00

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Shin sells directory holding to SingTel
TOT board alerted to low-profile deal
Suphaphan Plengmaneepun
Kanchana Pleumjit
Shin Corporations has sold part of its unprofitable directory business to Singapore Telecom, the strategic partner in Shin`s mobile-phone affiliate, Advanced Info Service.


The transaction took place with little fanfare, and only came to light yesterday when the Telephone Organisation of Thailand board was asked to acknowledge a change in the shareholding structure of Teleinfo Media, formerly known as Shinawatra Directories.


No details were given beyond the names of the three shareholders: the TOT, Shin and SingTel Yellow Pages Pte.


However, Vichien Naksrinual, director for benefit management at the TOT, said that SingTel would inject about 400 million baht in new funds.


As a result, he said, Shin`s holding would be reduced to 38% and the TOT`s stake to 37%. Previously, Shin had 51% in Teleinfo Media and the TOT 49%.


Arak Chonlatanond, a Shin executive, said only that negotiations with the TOT over the revised shareholding structure had not yet been settled. He declined to give further details, saying the matter was confidential.


The TOT granted Shinawatra Directories a 10-year concession at the start of 1996 to print telephone directories, with Shinawatra paying 70% of its revenues to the TOT.


Initially the Shinawatra Group, as Shin was then known, held 100% of Shinawatra Directories. But operating losses mounted and by mid-1998 it owed 142 million baht to the TOT.


It then approached the TOT about converting the concession to a joint venture. The TOT agreed to convert the debt to 49% equity, and to reduce the proportion of revenue payable to the state agency to 30%. The new arrangement took effect on June 30, 1998 and the company changed its name to Teleinfo Media in September last year.


The TOT union filed a complaint about the conversion with the National Counter Corruption Commission. The union said the deal was not transparent, and that the state agency would be taking on the losses of the directory business.


The result of the NCCC investigation was not known.


TOT board chairman Sombat Uthaisang said yesterday that he knew very little about the changed shareholding structure of Teleinfo Media. He said it had been approved originally last year when Mechai Viravaidya, now a senator, was the board chairman.


"Re-proposing the matter to the board was just a routine case without any documents attached," he said.


While Teleinfo Media loses money on directories, it has moved more services onto the Internet, and executives have said that online ventures were expected to be profitable by 2002.


As well, the company saw potential in an improved version of the "13" directory-assistance service, which it is operating for the TOT.


Normally, calls to the 13 number are free, but the company proposes to charge five baht a call by offering value-added services, including connecting callers to the number requested, and giving additional business information.


"We believe people will be willing to pay for the extra service provided by the new 13," said Olarn Pientham, senior executive vice-president of the TOT.


Pornchai Meemark, a leader of the TOT union, questioned the entry of SingTel into the directory venture. He said Shin`s decision to sell the stake only showed that it no longer wanted to stay in the business.


A telecom analyst said that normally, Shin took on partners only when it needed technology, and would not share participation in a venture such as a directory business, which needed no high technology.


Consequently, he suggested, the share sale could signal Shin`s desire to exit the directory business.

Quelle: POST 16.12.00

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GENERAL ELECTION


More of the same `will end in chaos`
Voter patience has run out, says Meechai


Yuwadee Tunyasiri


The new government would have no honeymoon period if it was headed by Chuan Leekpai, Banharn Silpa-archa or Chavalit Yongchaiyudh, former senate speaker Meechai Ruchuphan said yesterday.

Mr Meechai predicted the nation would be gripped with turmoil after the Jan 6 poll, the kind of disturbance that would turn the US presidential election controversy into a petty issue.

"Sooner or later, I think something weird would certainly happen," he said.

The new administration under any of the three former prime ministers-Mr Chuan, Mr Banharn or Gen Chavalit-would be unwelcome.

The people who felt these government leaders had made their lives a misery would rise in protest even during the first days in office, Mr Meechai said.

The economy began to slow down during the Banharn government in 1995. The situation went from bad to worse after attacks on the baht and the collapse of the financial sector in the Chavalit government in 1997. The Chuan government pledged recovery but after three years the public could not see much improvement.

The government under Korn Dabbaransi of Chart Pattana or Thaksin Shinawatra of Thai Rak Thai would face the same fate although the people would give it some time to work.

"Chaos looks inevitable but when that would happen would be a matter of time," Mr Meechai said. The crisis would be hard to tackle, he said.
Quelle: POST 16.12.00

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über TPI:
http://www.asiagateway.com/c/n/getnews?ID=179879

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Poll backs Thai Rak Thai
Democrats predicted to come in second
Thai Rak Thai looks set to win at least 209 of the 500 lower house seats at stake, according to the latest Abac Poll.


The poll predicted Thai Rak Thai would win 170 constituency seats plus 39 from the party list; Democrats 86 constituency seats plus 27 from the list; New Aspiration 43 plus 9; Chart Thai 40 plus 8; Chart Pattana 36 plus 9; Seritham 14 plus 4; Rassadorn 10 plus 3; Thai Motherland one from the party list; and Prachakorn Thai one constituency seat.


By regions, Thai Rak Thai is expected to capture 19 constituency seats in Bangkok, 45 in the North, 44 in the Central Region, 57 in the Northeast, and 5 in the South.


The Democrats` breakdown is 14 in Bangkok, 14 in the North, 11 in the Central Region, 9 in the Northeast, and 38 in the South.


The expected gain for New Aspiration is 2 in Bangkok, 6 in the North, 5 in the Central Region, 21 in the Northeast, and 9 in the South.


The survey was conducted among 80,000 people nationwide in collaboration with Khon Kaen University, Prince of Songkhla University`s Pattani campus, Chiang Mai University, the Non-Formal Education Office, and Assumption University-affiliated tertiary institutions.
Quelle: Post 16.12.00

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GENERAL ELECTION


Chavalit ready to head economic line-up
Disqualifications offer opportunity


Post Reporters


Believing New Aspiration might gain a windfall from the Election Commission`s likely disqualification of several favourite candidates, Gen Chavalit Yongchaiyudh said he would head an economic team if his party formed a new government.

"I will no longer trust anybody [to supervise economic policies]," he said during an interview with the Bangkok Post.

However, Gen Chavalit said that if his party led the government after the election on Jan 6, he would not become finance minister. The position would be open to qualified persons from all parties joining the coalition government.

Gen Chavalit said he had in mind several people including Somkid Jatusipitak from Thai Rak Thai, Ekamol Kiriwat from the Democrats, and Nimit Nontapunthawat from his own party.

"The next finance minister must be mentally strong and patient. He must be able to withstand strong criticism from the public and opponents," he said.

During his one year as premier to November 1997, Gen Chavalit`s government had three finance ministers in quick succession. The first was Amnuay Viravan, then Thanong Bidaya while Kosit Panpiamrat took his office a few days before Gen Chavalit resigned as prime minister. Dr Amnuay resigned as deputy prime minister and finance minister after Gen Chavalit reversed the minister`s decision to increase tax on two-stroke motorcycles. Dr Thanong resigned for similar reasons when his decision to increase fuel oil tax was reversed by Gen Chavalit. Refusing to call his decisions intervention, Gen Chavalit said his moves were only to benefit the public.

He said that if he became prime minister again, one of his first tasks would be to amend the 11 economic-reform laws, particularly the Corporatisation Act and the Bankruptcy Act.

"I disagreed with both Thai Rak Thai`s and the Democrats` policies in dealing with state enterprises. The Democrats favour selling them to foreign partners while the Thai Rak Thai plans to list them on the stock market. "I would securitise state enterprises` future incomes for sale to the public. I think this would be the best solution and no state enterprise employee would be affected or jobless," he said.

Dismissing other parties` economic policies as "simple paperwork which could be carried out by junior officials", Gen Chavalit said he would not bother to go into the details. "All those policies could be concentrated in one goal-employment-and that is the top policy of my party," he said.

Gen Chavalit said the country`s economic crisis evolved like a "domino theory".

"The first piece of the falling dominos is the financial sector, then the real sector and finally social security. To help the economy recover, we have to ensure that the last domino-social security-remains standing by boosting employment. When more people are employed, purchasing power will increase, boosting demand and reactivating the productive sector. That will then resolve problems in the financial sector," he said.

In boosting employment, he would launch many new projects such as the construction of a 40,000-kilometre-long irrigation canal network nationwide for agriculture.
Quelle: Post 16.12.00

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STOCK MARKET


SET-50 options put back to mid-2001
More time for all parties to adjust


Nuntawan Polkwamdee


The introduction of SET-50 options, the first derivatives to be traded on the Thai stock market, will be delayed by a further six months until mid-2001 to allow brokers, hedgers and speculators time to adjust, officials have said.

And Pornanong Budsatragoon, a lecturer at Chulalongkorn University, said the introduction of index options could be problematic at the outset. Trade was likely to be dominated by speculators, as other parties such as insurance firms, mutual funds or banks, remained restricted from trading in derivatives despite their usefulness as a hedging instrument to manage risk. Even if all parties were ready for index options, unfamiliarity would limit trade initially.

Traders will be allowed to purchase four different types of options.

- A long position in call options gives the investor the right to purchase into the index once contract terms are met. Profits are unlimited, with losses limited to the price paid for the call option.

- A long position on put options involves the purchase of options at a set price point at a set future date.

- A short position in a call option is the selling of options at a price and time set in the future. Profits are gained if no one exercises rights at the fixed date.

- Short positions on put options involve the selling of options at a set date and price. Profits are gained if the option price exceeds the market price, as buyers of the put option will not exercise their rights.

Dr Pornanong said interest in call options was likely to be strong if investors expected share prices to rise.

The SET says call and put options based on the SET-50 index will be available in terms of one, two and three months, with a multiplier set at 10,000 baht.

The strike price interval will be set at two points if the SET-50 index stands below 50 points, and five points if the index is higher. The last trading date for options will be the last Tuesday of each month, with expiry on the last Wednesday. Settlement will be made only in cash.
Quelle: POST 16.12.00

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Credit service gets solid footing
Source : The Nation
Date : 16 December 2000
CENTRAL Credit Information Services will soon be a fully functioning credit bureau, now it has successfully raised its capital, according to its former chairman.

Thirachai Bhuvanartnaranubala, assistant governor of the Bank of Thailand, said the capital increase would help the credit bureau develop to the extent it would be able to cover other financial institutions` loan information.

On December 6, the bureau successfully raised its capital from Bt26 million to Bt156 million, by issuing shares for sale. The number of members rose from 13 Thai commercial banks to 22, including foreign bank branches, specialised institutions and finance companies. The foreign partners are TransUnion International and Business On Line.

The capital increase also resulted in a shareholding restructure with foreign and Thai shareholders hold equal, 50:50 stakes.

With equity participation of two more partners, all shares of Central Credit Information Services are now in private investors` hands. Thirachai then resigned so the company could appoint a representative from its shareholders to oversee operations.

The credit bureau, the first in Thai financial history, was conceived shortly after the financial crisis, which was partly blamed on a shortage of lending information among financial institutions about borrowers. Without such data, other financial institutions had no knowledge of individuals` outstanding debts.

In many cases, it turned out that an individual borrower`s total debt burden well exceeded the value of his or her properties. Once their businesses failed to generate revenue, debtors eventually became "non-performing" customers of several financial institutions.

The credit bureau began operating its first phase early this year under the name "Central Information System". During this period, the only information available focused on the outstanding loans of individuals and corporations.

According to the company, daily queries for its services have reached 700, or between 14,000 to 15,000 queries per month. "The company expects that the full system will be available around the second half of 2001," said Thirachai, adding that credit-rating and risk-forecasting services, as well as credit-management strategies, would be part of the completed system.

Thirachai said the bureau was still seeking ways to improve its services. "More information is needed, aside from plain information about debtors and the amounts of their debts," he said yesterday. In particular, the bureau was planning to introduce a debt repayment behaviour-assessment system, as well as measures to ensure safety for all who access its services, mainly the debtors, he said.
BY ANOMA SRISUKKASEM

[dentist1]

Hi BodyG!
Mach ruhig weiter so. Seinerzeit hatte ich einen ähnlichen Grundgedanken. Wenn ich was lesenswertes fand , ab per paste and copy auch anderen zur Verfügung stellen.Laß Dich von Watcher100 nicht provozieren. Vor allem wenn er Nachts besoffen postet tendieren die Inhalte gegen Null.Wenn ich mir seine Suffergüsse von letzter Nacht hier, bei Max Roland und winnysgeist näher betrachte, kann ich mir diesen Nihilismus wirklich nur durch seinen alkoholisierten Zustand erklären.
Also vielen Dank für Deine Mühen, wenn Du weitermachst wird das mal ein Fundus, auf den man bestimmt auch noch im Nachhinein gern zurückgreifen wird.

Gruss
dentist1

[BodyG]

Aus dem SEAMICO Board:

Wednesday, December 13, 2000 8:06:29 PM]
Subject : let`s cheer up THAILAND as K. Puwadol mentioned
Message : I am thai, and I also have faith im my own country, although i could go away working legally in the states. But , i am PROFOUNDLY that one day very soon Thailand will be bounced back and the SET will lead up as the indicator. K. Puwadol, hope this time your forecast really come true. Please strongly comment your 5 most prefered stocks to invest for at least 3 months. A, 01-6253141

Name/E-mail : [e-mail] Reply





[Thursday, December 14, 2000 9:06:09 AM]
Message : My five favorites are: BANK, FINCOs, ELECTRONICS, ENERGY and COMMUNICATION

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 1:50:58 PM]
Message : Are those 5 sectors in order of preference? How may percent of each sector would you weigh in? Thanks

Name / E-mail : [e-mail]





[Thursday, December 14, 2000 2:14:51 PM]
Message : Those BANK, FINCOs and COMMUNICATION will be the leaders driven the SET at first. Then the rest should come later. In my opinion, FINCOs tend to make a strongest hike, in term of percentage change. Then it would be COMMUNICATION and BANK. Some interesting stocks are as follow ( including their derivative products and foreigh board): KK, TISCO, NFS, SPL, PL, TFB, SCB, BBL, DTDB, BOA, UCOM, TA, SATTEL,( ADVANC and SHIN should buy at 5-7% discount of today prices), HANA, DELTA, KCE, PTTEP, RATCH, COCO, BANPU. SCC, NPC..........others will be updated later.

Name / E-mail : [e-mail]





[Saturday, December 16, 2000 11:48:03 AM]
Message : KK, TISCO, NFS, SPL, PL, TFB, SCB, BBL, DTDB, BOA, UCOM, TA, SATTEL.........all mostly junk with no earnings and no dividends for years. Why advocate us to own such marginal companies??

Name / E-mail : Junk

Hallo Max Roland, Junk vertritt Deine berechtigte Einstellung

MfG

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CHIP MAKING

Intel`s Memory Loss Opens Doors in Asia

A series of miscalculations by the giant U.S. chip-maker has cost it business in Asia. With Intel weakened, the region`s PC-component makers are calling their own shots--and capturing global market share


--------------------------------------------------------------------------------

By Simon Burns/TAIPEI and Charles S. Lee/HONG KONG

Issue cover-dated December 21, 2000

Far Eastern Economic REVIEW
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INTEL IS LOSING a battle for market share in Asia. A series of missteps by the world`s largest computer-chip maker have weakened its ability to set the standards for chips used in personal computers. PC-component makers in Asia--unnerved and financially wounded by the company`s recent production problems--are turning to other chip suppliers as a result.

While Intel remains an industry leader, Asian manufacturers--which are at the centre of the global PC business--now are building large numbers of PCs without Intel chips. Just a few years ago, that would have been unthinkable. More than half of all computers produced globally now are outfitted with chips from Intel`s competitors, up from under 20% three years ago. In consequence, Intel has lost worldwide market share worth over $1 billion over the past 18 months.

A few companies have made fortunes in the turmoil. In just two years, rival chip maker VIA Technologies of Taiwan has grabbed business from the faltering giant, and watched its revenues increase fivefold to almost $1 billion. "Intel wasn`t listening to the needs of its customers," asserts VIA Technologies` marketing manager, Richard Brown. "And we were ready."

Others haven`t been so lucky. Chin Wu, president of another Taiwanese chip maker, Acer Laboratories, has seen competitors like VIA Technologies surge ahead while his own company`s revenues, hitched more closely to Intel`s plans, have lagged behind. "I regret that we followed Intel`s guidelines so closely," he says.

The U.S. company doesn`t deny that its relationship with its Asian suppliers has suffered. "We`ve not had a great year," admits Sean Maloney, Intel`s senior vice-president for worldwide sales and marketing. "We`ve dropped the ball a few times and we`re not comfortable with that."

NEW TYPE OF CHIP
Intel sells two key products to computer makers: processors and chipsets. These generate most of Intel`s yearly revenues of around $30 billion. A processor--for example, Intel`s Pentium 4, is a single chip that interprets the programs that enable a computer to calculate spreadsheets, browse the Internet or play games. A chipset is a pair of chips that move and organize data flowing between a processor and other PC components such as the memory, disk drives and modem.

Intel`s problems started not with processors or chipsets, but with a chip that it doesn`t even make. In 1997, the company began telling its Asian partners about a new type of computer-memory chip, invented by U.S.-based Rambus. The new memory, RDRAM (Rambus Direct Random Access Memory), was radically different from the SDRAM (Synchronous Dynamic Random Access Memory) that`s currently used in all PCs. Rambus designed RDRAM with speed in mind. Programs and other data can be read from this kind of memory more than twice as fast as from SDRAM.

Speed matters to Intel. The company`s processor chips work much faster than memory chips do. This means that processors spend a lot of time waiting for the relatively slow memory chips to send data to them. For Intel, speed is the main selling point of its processors. Every year, the company offers consumers faster versions of its Pentium chips.

Intel saw that the speed of memory chips would become more of an issue as it increased the speed of its processors. If memory speed remained the limiting factor, it eventually would force Intel to spend huge amounts on processor research and development to eke out increasingly tiny improvements in PC performance. Worse, the difference in performance between different processors in the Intel range would be so small that customers would have little incentive to buy the newest, fastest, most-profitable processors.

So Intel threw its considerable weight behind Rambus. During the next two years, Intel`s attempt to shoehorn the powerful but expensive RDRAM chips into an increasingly price-sensitive PC market was to become a nightmare.

Because neither Intel nor Rambus make PCs and memory chips, Intel approached motherboard makers in Taiwan and memory-chip makers in Taiwan, South Korea Japan and the United States. The motherboard makers were an important part of the equation because they make the "guts" of a PC. The motherboard is a printed circuit board that holds the processor and the chipset.

Intel told the motherboard makers they should start designing boards that could use RDRAM, instead of SDRAM. Intel was the dominant supplier of chipsets, so if it was going to support the new chip, motherboard makers knew they needed to be ready.

Meanwhile, Intel told memory-chip makers they should reduce SDRAM production, and shift to RDRAM. It seemed like a profitable idea at the time. A U.S. research firm predicted that, with Intel behind it, RDRAM could take 30% of the global memory market by this year, and about 60% by 2001.

But by early 1998, memory-chip makers and PC-hardware manufacturers were politely telling Intel that they weren`t so keen on the new chip. The old standard, SDRAM, still had at least a couple of years of useful life in it, they reasoned. And in any case, they preferred another fast new memory technology, DDR, or Double Data Rate SDRAM. One reason was cost: Rambus charges up to 5% in royalties for use of its technology.

DDR`s biggest advantage is its similarity to SDRAM. Because it`s almost identical to its predecessor, but twice as fast, it`s relatively easy for chip and PC-hardware makers to switch production. In addition, DDR chips are much cheaper to produce than RDRAMs.

Faced with these objections, Intel had to cajole Taiwanese motherboard makers into supporting Rambus, according to Bert McComas, chief analyst at U.S.-based InQuest Market Research. The gamble didn`t pay off.

In late 1998, memory-chip makers in South Korea, Japan and the U.S. told Intel they were having trouble making the big, complex RDRAM chips. Intel handed out assistance in the form of huge investments. Samsung, for example, received $100 million. Functioning chips were eventually produced, but their prices today remain more than three times those of standard memory chips.

Other problems arose. Before PC makers could adopt RDRAM, Intel also needed to introduce a chipset that supported it. But this project ran into repeated problems--the unusually high speed of RDRAM made chipsets difficult to build. As delays mounted, memory-chip makers like NEC and Samsung complained they had spent tens of millions of dollars ironing out their own production problems, but now had no one to sell their chips to. Without the Intel chipset, PCs using RDRAM couldn`t be built.

Intel`s first RDRAM chipset was introduced months late at the end of 1999, and didn`t work properly. Meanwhile, motherboard makers were also losing tens of millions of dollars because without chipsets from the normally dependable Intel, they were unable to fulfil customers` orders for RDRAM boards. Intel itself eventually had to set aside $250 million to pay for nonfunctioning motherboards built around its first RDRAM chipset.

Quite apart from its RDRAM misery, in August last year, Intel began to suffer repeated shortfalls in production of other chipsets and processors. These were to cost Intel, and its customers, dearly.

JUMPING SHIP
"It was painful," says the public-relations manager at a Taiwanese company that normally makes 300,000 motherboards a month. The company suffered "a considerable drop in sales" in the first quarter of this year, the manager says, adding: "I think our revenue for the year has fallen 30% short of projections." The company, formerly a staunch Intel supporter, now relies on VIA Technologies for many of its chipsets.

Indeed, shortages have pushed most motherboard makers toward other suppliers of chipsets and processors. And for the first time, credible alternatives to Intel are available. New processors from U.S.-based Advanced Micro Devices, and chipsets from VIA Technologies and other companies in Taiwan, offer similar--and sometimes better--performance at lower prices than Intel. By going its own way in memory technology, VIA Technologies has expanded its share of the chipset market to over 40% from under 20% in 1998.

By building motherboards around non-Intel chips, Taiwanese makers can cut costs and offer a lower price to their customers, the computer vendors. And by securing a second source of chipsets or processors, they protect themselves against future shortfalls of Intel`s chips.

Why didn`t they do this before? Because they believed the quality of alternative products wasn`t good enough to be worth the risk of harming relations with Intel. Now, that`s changed.

In Taiwan, the first manufacturers to build motherboards around the new chipsets and processors took great care not to publicize their move. They were concerned Intel might reduce their allocation of hard-to-get chips the next time there was a shortage, or be less generous with technical data that help them plan for future PCs. One of Taiwan`s largest motherboard makers, Asustek, became so concerned that a new board would upset Intel, that it expunged all mention of the product from its Web site, banned staff from discussing it with the media, and initially shipped it to customers in a plain white box.

But there`s safety in numbers. As more motherboard makers adopt rival chips, fears of retribution are receding. McComas of InQuest sees it as a moment of liberation for hardware makers. "The genie`s out of the bottle, big time. You don`t have to do what Intel says any more."

Today, support for RDRAM remains lukewarm in Taiwan. And elsewhere in Asia, many of the companies that actually make memory chips are equally hesitant about the new technology. Hyundai Electronics Industries, the world`s second-largest memory-chip maker, has chosen to opt out of RDRAM for now, along with most of Taiwan`s memory-chip makers. Some analysts say neither cash-strapped Hyundai, nor the relatively small Taiwanese players, have the resources to back the expensive but commercially questionable chip.

But RDRAM shouldn`t be written off. On the contrary, it`s likely to continue to have niche applications. At least one company, South Korea`s Samsung, appears likely to profit by it. With many competitors dropping out because they feel the technology has no future, Samsung has taken more than half the market, and is currently producing up to 4 million RDRAM chips a month.

Despite falling below Samsung`s own forecasts, this output will make the company the world`s largest supplier of RDRAM, with a 53% market share and estimated sales of $900 million this year. The company says most of the chips are for high-end PCs, like those using the Pentium 4.

In Japan, too, Toshiba, NEC and Hitachi have all started RDRAM production; Toshiba is the main supplier of RDRAMs for Sony`s PlayStation 2 game console, which has a voracious appetite for fast memory to generate its rich graphics.

According to Jonathan Dutton of UBS Warburg in Seoul, Samsung already is reaping a premium income from RDRAM production. What`s more, because fewer companies make the chips, their prices won`t be as volatile as those of other memory chips.

Rambus, meanwhile, says time is on its side. "We believe DDR will run out of steam," says Avo Kanadjian, the company`s vice-president for worldwide marketing. While the speed of RDRAM can be smoothly increased to cope with even faster computers, he claims, DDR will reach its speed ceiling sometime in the next few years.

SETTING STANDARDS
Undeterred, the industry is throwing most of its weight behind DDR for now. Plain sailing? Maybe not. A technological Tower of Babel is the worst-case scenario. The PC industry has traditionally been driven by Intel`s technical innovations and its role in establishing uniform standards. That way, the fastest growth for everyone was assured. Now, with Intel struggling to coordinate the efforts of other players, the PC business could get bumpier.

"The bad thing is that we need more effort in R&D now. In the past, we just followed Wintel"--(the combination of Microsoft Windows software and Intel hardware)--says Tim Li, spokesman for Quanta Computer of Taiwan. Quanta is Taiwan`s largest notebook maker, and also makes motherboards and desktop-PC systems. Before, he says, "we didn`t need to put too much effort into design. It was easier to test and ramp up production. With more product diversification, we will need more effort in design. There will be no clear standard to follow."

"The key to growth is standardization," agrees Steve Myers, a semiconductor analyst at Jardine Fleming in Tokyo. "But DRAM companies notoriously can`t cooperate with each other." It was Intel, he says, that typically would help manufacturers agree to common equipment specifications. "One has to realize that Intel`s actions are really about market growth, not power for power`s sake."

By the second half of next year, it will be clear whether the introduction of DDR is a boon or a costly clash of incompatible versions from different DRAM makers.

Samsung now believes the industry is headed for a multi-standard future. For example, the company says, DDR might be better suited for servers (computers that run networks) while RDRAM will be the choice for high-end PCs. As a result, Samsung and others are pursuing a dual-track strategy. "We`re a Rambus manufacturer and a DDR manufacturer, so we`re prepared to move whichever way the market takes the business," says Aston Bridgman, an NEC spokesman in Tokyo.

For now, however, Asian manufacturers are seeing a meeker approach from a chastened Intel. Taiwan`s VIA Technologies and Advanced Micro Devices of the U.S. continue to profit from Intel`s errors, and motherboard makers, too, are enjoying the fruits of the new competition.

"In my opinion, Intel`s attitude is changing dramatically," says a product manager with one of Taiwan`s largest motherboard makers. "They`ve become a promoter rather than a leader. They speak softly. They don`t just say `take it or leave it` any more."

"More competition among suppliers is good for us," says Quanta`s Li. The processor and chipset makers are offering "more functions, better quality and service," he says--and, most important of all, "lower cost."

[BodyG]

Ist es schon das Wort zum Sonntag?

Womit man sich in anderen Boards beschäftigt. Da Thaksin Shinawatra und sein Gärtner eine Rolle spielen, gehört der Beitrag natürlich auch in meine finanzpolitische Presseschau.*lol*

Subject: The Great Toilet War (was: Re: Should Thai toilet style replace modern toilet?)
Date: 12/16/2000
Author: Vagabond <[e-mail]>



There is one more question that needs to be addressed while we are on this toilet topic. I know this is highly divisive, and that raising it might lead to a split of NATO and the end of the Free World as we know it, but it must be said.

It is the question of American vs. European toilets.

In Thailand, a company called "American Standard" seem to dominate the sit-toilet business. Naturally, a company with this name makes
American toilets. However, seen from the perspective of my European butt, there are the following problems with the Yankee design:

1. It is too low.
2. It is too wide.
3. There is too much water in the wrong places.
4. Flushing is too slow.
5. It makes a gurgling sound.
6. It clogs easily.

Why are these toilets used in Thailand? Is it a leftover from the Vietnam war era rest & recreation hotels? And what might be the difference between European and American asses that is the reason for the different design? Are US butts that much wider? Thais have small butts. And so, judging from the Euro toilet standard, have Europeans. I suggest (and this is the divisive part) that the small-butted
peoples of the world unite against this big-butted imperialism!

Here is the strategy. When Thaksin takes over government, we should conspire to have American toilets banned from the kingdom. If we promise Thaksin 20% of the profits from Euro toilet sales, discreetly transferred to his gardener, I am sure we will succeed.

Urgently yours

Vagabond

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Agency mulls law requiring travellers to declare their cash
Moves to stem the tide of illegal funds
Yuwadee Tunyasiri
The Anti-Money Laundering Office may push for the return of a law requiring travellers to declare their cash when leaving and entering the country.


Pol Lt-Gen Wassana Permlarp, the agency`s secretary-general, said the proposal will be raised at a transnational crime prevention committee meeting next week.


The absence of the requirement provided a loophole for criminals to defy state measures against money laundering.


With casinos mushrooming along the nation`s border, violators have found it easier to bring in illegal cash and claim it as gambling profits, Pol Lt-Gen Wassana said.


Any legal requirement imposed must clearly stipulate the amount of cash each traveller can carry in and out of the country. Undeclared money must be seized by the state, he said.


The secretary-general said it was difficult for his agency to verify the source of money held by criminals if they declare it as gambling profits from overseas.


He said the inflow of illegal money has become more evident and speculated the loophole made it possible for Indian mafia boss Chhota Rajan to access cash to buy his freedom.


Officials of the Narcotics Control Board, the police and the National Security Centre will get together next week to discuss how to stem the inflow of illegal money.


Thai nationals with money in overseas bank accounts may also be required to declare their money in those accounts, Pol Lt-Gen Wassana said.


The Anti-Money Laundering Office has limited power to investigate money suspected of coming from illegal activities like the drug trade, swindling, contraband sales and corruption.


His agency may not be able to investigate the controversial 25-million-baht cash donation to the Chart Thai party if the source of the money did not fall under those categories.


The Election Commission ruled the cash donation to Chart Thai by Kaopinyo Co was legal and said it might ask the office to investigate the source of the money.
Quelle: POST 17.12.00

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Monday, December 18 2:26 PM SGT

Thai Shares Slightly Lower Midday On US Market Declines
BANGKOK (Dow Jones)--Thai stocks are slightly lower at midday Monday, tracking losses on Wall Street Friday, traders said.
The Stock Exchange of Thailand index closed the morning session down 1.19 points, or 0.4%, at 271.98 points, after trading in a tight range of 271.68 and 273.97 points.

The blue-chip SET 50 index was down 0.10 point, or 0.5%, at 18.82.

Volume in the first session was thin, at 63.0 million shares worth 1.21 billion baht ($1=THB43.437). Decliners outnumbered advancers 55 to 30, excluding shares traded on the foreign board.

Analysts said foreign investors were selling communications stocks on the decline in the Nasdaq Friday. The communications sector led losses in the first session by falling 1.4%.

TelecomAsia, the most active stock in terms of volume, was down 1.3% at THB19.50. Advanced Info Services lost 3.4% at THB346.

On Friday, the Dow Jones Industrial lost 2.25% to 10434.96 points, while the Nasdaq shed 2.8% to 2653.27 points.

"The market will likely retreat further in the afternoon session, but the 267 support should hold the downside," said Somchai Anaketaweephol, an analyst at Yuanta Securities.

He pegged the index`s resistance at 274 points.

[BodyG]

Monday, December 18 10:38 AM SGT

Analyst Poll: Stock Calls To Start The Week In Thailand
BANGKOK (Dow Jones)--Here`s the advice of stock professionals surveyed in Thailand Friday on stocks to buy and sell for the current week. -
Merrill Lynch Phatra Securities, analyst

BUY: Nation Multimedia Group PCL (H.NMG) - price 13.50 baht ($1=THB43.512). The share price of the country`s leading multimedia firm isn`t expensive, considering its strong market position and synergy from its integrated media. The house expects the company`s earnings per share to rise to THB0.9 in 2001 from THB0.3 this year, supported by an estimated advertising income growth of 26% next year.

SELL: None -

Asset Plus Securities, analyst

BUY: Delta Electronics PCL (H.DLE) - price THB212.00. An expected sales growth next year and the company`s effective long-term strategies make the stock a long-term buy. The company expects its sales next year to reach $800 million to $850 million, or at least a 7% rise from this year. Its plan to triple the size of its research and development team from 100 people will also help increase the opportunity for contracting more higher-margin products in future.

SELL: None -

BNP Paribas Peregrine Securities, analyst

BUY: Siam Commercial Bank PCL (H.SBK) - price THB19.00. The bank has shown a better-than-expected performance so far through improved interest margins and well-contained operating expenses, prompting the house to revise its forecast upward from a net loss of THB4.3 billion to a net profit of THB2.9 billion. Even though, the bank has made slow progress in debt restructuring, it has been largely discounted by the market, giving a chance for the stock to pick up with a 12-month target price at THB27.

SELL: None

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Bankruptcy Court delivers TPI to Creditors
December 18, 2000 AsiaGateway

Thailand`s Central Bankruptcy Court approved on Friday creditors` plans to restructure the $3.8 bln debt of Thai Petrochemical Industry PLC, as the creditors swiftly prepared to impose management control on Thailand`s biggest corporate defaulter.

The Central Bankruptcy Court issued its ruling after the Supreme Court threw out an attempt by TPI`s founder and main shareholder, Prachai Leophairatana, to get the judges hearing the case replaced.

Prachai Leophairatana said he would appeal this week against the ruling.

Following the Central Bankruptcy Court`s decision, Effective Planners Ltd., a subsidiary of Australian Accounting firm Ferrier Hodson, is set to take over the management of TPI on Monday and quickly move to curb its recalcitrant boss, Prachai.

Thai shares were slightly higher in range-bound trade Friday, with banks leading the gains after the decision was announced. The SET Index closed up 1.88 points at 273.17. Shares in TPI surged 0.2 baht, or more than 5pct, to 3.9 baht ($.09) in Friday afternoon trade. They have sunk from 19.75 baht at the start of the year, although the Thai bourse itself has only dropped 43 percent this year.

The restructuring plan involves converting nearly $800 mln in unpaid interest to a 75pct stake for creditors, and selling off non-core TPI assets, including cement producer TPI Polene PLC.

TPI`s debt is in eight currencies, borrowed from 150 creditors in 40 different countries.


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Is Korn`s Bid to Become the Next Premier Premature?

Staff Writer
WHEN Thaksin Shinawatra, Thailand`s richest telecommunications tycoon, formed the Thai Rak Thai Party with a clear intention of becoming the next prime minister of Thailand, the public thought that they finally had a sensible alternative to Chuan Leekpai, whose Democrat-led government has come under heavy fire for its allegedly pathetic performance in tackling the country`s present economic crisis.

For quite some time, poll results seemed to be convincing everyone that Thaksin was the one and only choice as the next prime minister.

But when the National Counter-Corruption Commission ruled that there was an irregularity in his declaration of personal assets, which he had filed earlier to this "corruption watchdog", his popularity began to suffer, although only slightly.

The latest poll result showed that his popularity had dropped from 29.9 percent to to 28.2 percent.

In the wake of this development, the country was once again caught up in a state of uncertainly and pundits began to make wild guesses.

Then, out of the blue, Korn Dabbharansi, a political heir to the late prime minister Chartichai Choonhawan and the current leader of Chart Patana, a medium-sized political party whose supporter base is mainly from the northeast -- particularly from the province of Nakhon Ratchasima -- emerged from the shadows.

He announced that he is now ready to lead the country out of its political mess.

His frankness about his political ambitions, seen by many as uncharacteristic of Thai culture, prompted the public to ponder whether or not this member of the so-called "Soi Ratcha Khru Clique" has sufficient track record and political maturity to lead the country out of its political and economic crises.

Recently, Korn said that he is well-prepared for the position and that his track record, from political novice to deputy prime minister, speaks for itself.

"Readiness for the post of prime minister is gauged by how well one has prepared oneself for the job. I have worked my way up from a secretary to the Minister to a party leader, a minister and then a deputy prime minister," he said.

When Korn made a foray into the contest for premiership, he came with, in the view of many, quite a well-rounded and interesting political and economic package.

He said that the liquidity problem must be addressed immediately and that more efficient measures must be taken to tackle the problem of non-performing loans.

According to Korn, the most efficient measure would be the setting up of a National Assets Management Company to centralize all the country`s bad debts and to help relieve the private sector of this heavy burden.

But this plan has already been adjudged as a very risky way of using public funds to bail out the ailing financial sector.

As his late uncle General Chartichai Choonhavan dreamt of turning Indochina from a battlefield into a trading post, Korn is conjuring up a vision of making Thailand a "food for the world" production house and providing free education for all Thai children up to the 12th grade.

While admitting that his policies are beneficial to the majority of Thais, if implemented, many sceptics are not so certain about how well this plan can be turned into reality. Some say it might be just another political ploy from the leader of Chart Pattana Party.

To maneuver his party and himself into the leadership of the next government, Korn will need to get all the medium-sized parties to work as one and try to leverage their united force to gain political power, including the premiership.

Again, as his admirers persistently proclaim their support, experts see the situation differently.

At a recent political panel discussion, Dr. Sukhum Nualsakul, one of Thailand`s leading political experts and former dean of Ramkhamhaeng University, said Korn`s chances of becoming the prime minister were very slim because the medium-sized parties would have difficulty in winning more than the 250 seats required for the formation of a government.

This view is shared by another academic, Somphob Manarungsan, an economics lecturer from Chulalongkorn University, who said that medium-sized parties still lack members of the caliber necessary for high office, especially the premiership. Korn does not yet have that clear-cut leadership quality. He needs more grooming," said the lecturer

Quelle: BusDay 18.12.00

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COMPANY REPORTS The Nation 19.12.00

RATTANA REAL ESTATE`s board has announced a shareholders` meeting for March 15. The directors of RR, the latest company to face possible delisting, have resolved not to pay dividends for 1999, for which it posted a net loss of more than Bt3 billion. This decision will be reviewed by shareholders at the meeting.



SUPALAI has repaid its debts to fund-management company SCB Asset Management (SCBAM) in the form of Bt18.82 million worth of unsecured debentures and convertible debentures.

The securities were issued to SCBAM`s SCB Prime Open End Fund, to which Supalai owed a total of Bt31.53 million. The transaction will result in a net gain of Bt12.68 million.

The 14,109 unsecured debentures #4 are due 2007. They were sold to the fund at Bt841.265 apiece.

Meanwhile, 6,950 convertible debentures #6 due 2000 were issued at a price of Bt1,000 apiece. They carry a conversion price of Bt10 per share.

Converting the debentures to common shares, the fund now holds 331,700 shares in Supalai.

COMPANY REPORTS:

SIAM COMMERCIAL BANK has bought 174.10 million new ordinary shares of iTV, valued at Bt1.59 billion, as part of the bank`s debt restructuring plan.

The purchase has been split into two tranches.

The first tranche consists of 123 million shares at Bt8.77 apiece, totalling Bt1.79 billion. The second tranche of 51.11 million shares is valued at Bt511.05 million, or Bt10 a share.

After the transaction, iTV`s registered capital will stand at Bt4.25 billion and the bank will maintain its 55.12-per-cent stake in the company.


BERLI JUCKER has exercised its full right in subscribing for all 1.5 million newly issued shares of subsidiary Berli Jucker Foods.

The transaction is worth Bt150 million. The trading conglomerate would maintain its 100-per-cent stake in the subsidiary. BJC Foods, recapitalised from Bt170 million to Bt320 million, manufactures snack foods.


BANKTHAI has announced a share swap with Krungthai Thanakit Finance (KTT) beginning today through December 29.

Each KTT share will convert into 0.241 shares of BT, the bank said.


SIAM GENERAL FACTORING will hold an extraordinary shareholders meeting on January 19.

To be eligible to attend, shareholders must register by January 3.

The firm has restructured Bt452-million-worth of debt by issuing preferred shares to 17 financial institution investors.


ROYAL GARDEN RESORT has set its next warrant exercise date for January 3.

The company said any warrant holders wishing to exercise their rights must submit a request between December 27 and 29.

The exercise ratio is one warrant for one common share at Bt15 each.


AYUDHYA INVESTMENT AND TRUST has announced that warrant holders who wish to exercise their right can submit their intention to do so between December 27 and January 2.

The exercise date has been slated for January 3, according to a filing with the Stock Exchange of Thailand.

Each warrant is eligible for conversion into a new common share at an exercise price of Bt10 each.

AITCO opened trading today at Bt4.10, down 10 satang from its Friday closing price.

The finance house earlier issued 64 million warrants with a 10-year maturity for free to existing shareholders.

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STREET WISE: Concerns over plan to use public funds to boost stock market


THE proposal by Dr Supavud Saicheua, executive vice president of Merrill Lunch Phatra Securities, on how to boost the stock market is worth considering.

Yet, a source who spoke to The Nation provided an alternative point of view to balance the issue of how to best boost the capital market.

The source disagreed with Supavud`s idea on the grounds that it could be waste of taxpayers` money.

For Supavud, taxpayers and the government could help create demand by boosting the stock market, rather than boosting only the supply of listed companies.

His proposal is for taxpayers to invest a portion of their savings, together with part of their annual personal-income tax, in the equity market via a mutual fund of their choice.

Supavud bases his claim that both taxpayers and the government would benefit from the expected return on such investment on the assumption of an annual 9 per cent growth in the stock index.

Yet a source close to the Thai Rak Thai Party (TRT) said Supavud`s idea was not practical, according to members of the party who considered the proposal. The source said that although the proposal was a good idea, it had some constraints.

Firstly, such a proposed investment in the stock market was considered to run counter to the joint public/private investment law.

Secondly, it was not practical politically. "Such investment is quite speculative. How we can guarantee the return of the government`s investment portion? If the stock index again plunges to its deepest level in 1997 of 207 points, how can the government clarify the loss of its investment to the public?" he asked.

Lastly, the source believed that the number of income earners who might pay income tax would be smaller than Supavud estimated. Only about one million taxpayers or less would be able to pay personal income tax of around Bt20,000 a year, the source said.

Thai Rak Thai`s economic team believed that the new government needs a medium-term measure to cope with problems associated with the capital market rather than a short-term money injection, which would be "an artificial demand," the source said.

"My personal idea is that we need to improve the quality of the supply (for listed companies).

"As investors lack confidence in the equity market, injecting money into the market would not help," he said.

Listening to the source`s comments, it seemed disagreement would wither only when this proposal yielded a successful result.

That seems impossible, though. No party has so far gained popularity through promises to throw public money at the market.

----------------------

Thai Farmers Bank goes online

EVERYONE is talking about e-commerce, the most fashionable channel to distribute products and services to date.

Thai Farmers Bank (TFB) has finally launched its Internet banking service via its new website www.gotoTFB.com/tfbbank. The website provides a new account service, statement enquiry, money transfer, credit card application, credit card payment and mortgage loan application facilities.

The bank says that loan applications via the Internet can expect a response within 24 hours. In order to lure customers, a promotion 20 hours of free Internet access has been offered to the first 1,000 applicants. Customers who wish to use the bank`s online service need to enter their names and personal codes before any banking transaction is possible through their website.

The bank expects at least 10,000 customers to apply for TFB Internet banking in the first 12 months.

Meanwhile, another bank has introduced phone banking. Standard Chartered Nakornthon Bank has launched a 24-hour-phone-banking service to customers who dial "1595".

The phone banking service provides customers with information on credit services and other banking services such as interest rates on deposits and loans, and daily foreign exchange rates.

The Nation.19.12.00

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Tuesday, December 19 11:39 AM SGT

Thailand Faces Confusion As It Fights Poll Fraud
BANGKOK (AP)--Next month`s general election could be a triumph for Thailand`s newborn political reforms - or, it could provide a one-way ticket for chaos and constitutional crisis.
The Jan. 6 election will be the sternest test yet of a new electoral system under Thailand`s reformist 1997 constitution, which gives authorities sweeping powers to fight rampant vote-buying, fraud and political corruption.

But observers fear that if these measures don`t work smoothly - the old-school politics of patronage and corruption is still thriving - the resulting political and legal confusion would make the five weeks of wrangling in the U.S. presidential race seem like a stroll in the park.

"No one really knows how this election will play out," said Kevin Hewison, an expert on Thai politics at the University of Hong Kong.

"If there is a smooth transition of power after this election, it will add to the legitimacy of the reforms. If not, it will do a lot of damage to the system," he said.

A successful election would also assert Thailand`s place as a pioneer of democracy in Southeast Asia, a region where most countries have either authoritarian rulers like in Myanmar, Laos, Vietnam and Brunei, or virtual one-party governments carrying some trappings of democracy such as Malaysia, Singapore and Cambodia.

"The constitutional reforms, of which this general election is part, are critical to the direction politics will take in Thailand over the next 5-10 years," Hewison said.

Opinion polls suggest that no party is likely to win a majority, as is the norm in Thailand. A long-drawn bargaining process with smaller parties to form a coalition government will likely result in a virtual freeze on new economic activity.



Standstill As Parties Build Coalitions After Election



"For several months nothing will get done and investors will stay in the sidelines," said Supavud Saicheua, a vice president at Merrill Lynch Phatra Securities.

"There is always a risk that the period of uncertainty will be even longer as we`re dealing with a totally new electoral process that hasn`t been tested before," he said.

The election is the first since the 1997 Asian economic crisis, which forced a slew of liberalization programs that have only been partly successful in rescuing the economy.

Prime Minister Chuan Leekpai`s Democrat Party is expected to suffer from expected voter anger against the sale of national banks and companies. Opposition parties have struck a nationalist chord by accusing Chuan of selling off the country to foreigners.

But the debate over economy has taken a back seat to questions whether the newly empowered Election Commission will be able to pull off the most keenly watched polls in Thai history.

The commission has made it clear it will not tolerate fraud.

"In 68 years of on-and-off Thai democracy, we have had around 20 general elections, but not even once have we been able to punish a candidate," Gothom Arya, one of the five election commissioners, said.

The commission has powers to disqualify candidates found giving money or other gifts to voters - a tradition so deep-seated that many Thais especially in villages see material inducements as their right.

A large number of candidates are expected to receive the "red card," a soccer term that the commission has adopted in its pledge to evict crooked aspirants. But the commission does not have the final word and candidates can appeal their disqualification in court.

If the courts get clogged by too many cases, the commission would be hard pressed to announce the results quickly to meet a constitutional deadline for the lower house of Parliament to convene within 30 days of the election.

Vote-Buying Fairly Common


A foretaste of the future was provided by the elections for the Senate, or the upper house, in March 2000 that dragged on for five months because of repeat polling to weed out cheating candidates.

The Election Commission, however, has promised to wrap up the general elections with one or two extra rounds within one month. It says it is willing to let some suspect victors sit in the new parliament and investigate them later.

There is growing support for the commission.

"The election commissioners should not bow their heads to the dark forces in Thai society," said Srichan Mungmee, 28, an office worker in Bangkok. "They are our hope for a new clean political system."

Three weeks before polling day, the commission issued its first "red card" to a candidate who paid 100 baht ($1=THB43.285) to individuals to attend a rally.

Many more reports of vote-buying are being investigated. Evidence includes t-shirts, cooking utensils and stoves given to voters and confiscated by the commission.

The practice of vote-buying mushroomed during the country`s economic boom in the 1980s. In the last general elections in 1996, an estimated THB20-30 billion was spent on vote-buying.

Korn Dabarangsi, leader of Chart Pattana, the third largest of the 37 parties in the race, has warned that if the commission disqualifies lots of candidates it could trigger mass protests, which could lead to instability and even a coup.

Analysts dismiss that as a grumble from a piqued party boss, and not a serious risk.

But some Western diplomats in Bangkok say popular unrest is unlikely since the grievances would come from rival political parties who probably won`t "sing with the same voice."

After nearly 10 years of unbroken civilian rule, the government is more accountable than ever before. Military commanders who gave tacit approval for all past coups in Thailand have vowed to stay in the barracks.

Opinion polls say the opposition Thai Rak Thai (Thai Love Thai) could win the most seats, 209 in the 500-member House of Representatives.

But Thai Rak Thai leader Thaksin Shinawatra is facing an investigation into his share dealings by the National Counter Corruption Commission, which was also set up under the new Constitution. It is expected to announce its verdict before the polling day.

If found guilty, Thaksin, a telecommunications tycoon, will be banned from political office for five years, forcing his party to choose another member as the prime ministerial candidate.

The fall of such a powerful figure through legal means would be unprecedented in Thai history.

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Tuesday, December 19 11:56 AM SGT

Thai Shares Up 0.7% Early; Bank Stocks Lead Gains
BANGKOK (Dow Jones)--Thai stocks edged up early Tuesday on selective buying in healthy stocks, mainly those in the banking sector, due to a rise on the Dow Jones Industrial Average overnight, traders said.
At 0343 GMT (10:43 p.m. EST Monday), the Stock Exchange of Thailand, or SET, index was up 1.97 points, or 0.7%, at 273.16. The blue-chip SET 50 Index was up 0.16 point, or 0.9%, at 18.94.

Advancers outnumbered decliners 46 to 20, excluding shares traded on the foreign board.

Analysts said investors followed the Wall Street`s trend by buying old economy stocks, led by banking shares, which are expected to benefit from a possible interest rate cut in the Federal Reserve`s Open Market Committee meeting later in the day.

Krung Thai Bank was up 2.3% to 11 baht ($1=THB43.324), and Bangkok Bank gained 1% to THB26.

TV channel operator BEC World rose 3.7% to THB222.

However, some heavyweight communications stocks suffered from selling after a steady decline on Nasdaq overnight.

Monday, the Dow Jones Industrial rose 2% to 10645.42 points, while the Nasdaq Composite Index lost 1.1% to 2624.52.

TelecomAsia was down 1.3% at THB19 on active volume as investors are concerned about unclear conditions in its share-swap deal.

The country`s metropolitan fixed-line operator said Tuesday it has signed an agreement to swap some of its shares with its parent firm to acquire a major stake in a mobile phone operator. However, it didn`t give specific details about the plan.

Analysts said the index is likely to trade sideways, between 268 and 274 points, as investors adopt a wait-and-see stance ahead of the FOMC outcome.

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Tuesday, December 19 12:18 PM SGT

Thailand Newspaper Highlights Dec 19, 2000
BANGKOK, Dec 19 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- The economy is likely to register zero growth in the last quarter this year, the first flat quarter since the beginning of last year, planners said yesterday.

- The state-owned Government Housing Bank hopes to be listed on the Stock Exchange of Thailand in three to five years, according to bank president Bhichar Damrongpiwat.

- Panthongtae Shinawatra, a son of Thai Rak Thai leader Thaksin Shinawatra, is the wealthiest person in Thailand, in terms of share value, after his parents transferred shares worth 11.48 billion baht to him.

- Some Thai banks say they will maintain branches in the Cayman Islands, shrugging off the holiday destination`s reputation as a money-laundering centre.

- Improving economic fundamentals will help keep the baht from falling below 45 to the US dollar in 2001, according to Sommai Phasee, deputy finance permanent secretary.

- ABN Amro Asia Securities said its board had appointed David Cross as a director, succeeding Timothy Boyce, effective Dec 13.

- uAyudhya Investment and Trust set Jan 3 as the exercise date for warrants No 1, with notification from Dec 27 to Jan 2. Holders can exchange one warrant for one share at 10 bt.

- Bangkok Bank hopes to regain 20,000 farm customers lost in the past two years.

- The analogue NMT 470 mobile-phone service operated by the Telephone Organisation of Thailand is dead and will be shut down soon, said senior executive vice-president Olarn Pientham.

- ACT Mobile, a 1900-megahertz mobile phone joint venture of three state enterprises, may choose GSM operators for network roaming instead of the Communications Authority of Thailand (CAT), the CDMA operator.

- Orchid exporters want tight controls on the quality of cut-flower shipments as some traders are supplying substandard orchids that could cost the country major markets.

- The Telephone Organisation of Thailand has been shut out of the Internet business following a ruling by the legal department of the Transport and Communications Ministry.

- It will be the thought of an interest rate easing, not the deed, that counts when Federal Reserve policymakers meet today for the last time this year to discuss the US economy.

- A steel importer yesterday filed a complaint against Industry Minister Suwat Liptapanlop, accusing him of delaying approval of a shipment that has been stuck at the Bangkok Port since July.

- After four years of inactivity, Robinson Department Store Plc will be in a major expansion mode next year following the completion of US$463 million (about 19 billion baht) in debt restructuring.

- The Mass Communications Organisation of Thailand (MCOT) will form new alliances with private firms to revamp Channel 9`s programmes next year.

- The Charoen Pokphand Group, the country`s biggest agribusiness conglomerate, plans early next year to set up an operating firm to boost the distribution and marketing services of Thai manufacturers through a global supply chain.

ASIA PULSE

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SMEs: management not finance to blame


A study by German Technical Cooperation (GTC) into Thai small- and medium-sized enterprises (SMEs) showed that the stagnant growth of the enterprises was related to management not financing.

Speaking at a seminar organised by the Thai Business Consultant Association (TBCA) about the role of consultants in the economic recovery, GTC director Dr Rolf Suelzer said that state and private banks had forged about 41 financing schemes, but that these were still under-utilised.

"The Thai government should therefore take care of these problems through an institutional mechanism," he said.

Thailand has around 132,000 small businesses. According to GTC`s study, state and private financial institutions provide financing to them in many forms. These include short- and long-term loans, revolving and matching funds, grant equity, risk and capital.

Suelzer`s view contrasts with many that believe that SMEs are facing a serious problem of inadequate financial support from both state-owned and commercial banks.

GTC`s 2000 study found that SMEs had problems with poor production development, maintenance of equipment, product development, upgrading of technology, research for new products, by-product and waste-product utilisation, high-efficiency equipment, knowledge and sources of new technologies, market access, management support, quality assurance systems and import regulations in major export markets.

Thailand required new mechanisms and strategies for small-industry development, Suelzer said.

There were about 850,000 SMEs but their contribution to country`s output was only about 50 per cent, which was relatively low compared to the benchmark of developed countries, he said. The problems already encountered by small industries, which will increase in the year to come with World Trade Organisation agreements, import regulations and international standards to be met, could not be overcome without strategic alliances, said Suelzer.

He said that consulting firms could assist SMEs in developing their businesses. He insisted, however, that consulting firms and professional associations were required with well-established databases. Inadequate and unreliable information was one of the weaknesses of the both public and private sectors.

Chutaporn Lampasara, deputy of the Board of Investment (BOI), suggested local of consultant could cooperate with the BOI to help small entrepreneurs who wanted to ask for investment promotion from the BOI.

She said that Thai SMEs usually did not have the skills to lay down a good business plan that would help them win tax breaks and other privileges from the BOI.

Meanwhile, Dr Ponyoot Chiradon, president of the TBCA, saw the potential of local consulting firms working with both local companies and the government to develop both micro and macro economies. The firms could provide consultation on financing, marketing and management among the other things.

However, foreign strategic alliances were needed for big projects, he said. At the macro-level, Thai consulting firms could also work with ministries. Another challenge was to work with the new National Economic Advisory Council, which was currently being established.

The Council, comprising of 99 representatives from all sectors, would play an important role in making recommendations about economic development to the government. When its opinions ran counter to those of the government, the government would have to provide explanations, he said.

BY WICHIT CHAITRONG

The Nation 20.12.00

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Wednesday, December 20 2:03 AM SGT

UN Agency: Slowdown Of U.S. Econ May Affect Asian Regions
BANGKOK (AP)--Asian nations` economic growth and particularly their electronics sector industries could suffer badly if there is a major slowdown in the U.S. economy, said a Bangkok-based United Nations agency Tuesday.
"Even a minor slowdown in the U.S. economy could have a significant psychological impact and a general loss of confidence hampering the process of recovery," according to a briefing note from the U.N. Economic and Social Commission for Asia and the Pacific, ESCAP.

"The U.S. is the globe`s single largest market for exports from around the globe and the health of its financial markets affects capital flows in the remotest of regions," it noted.

The U.S. holds a special importance for Asia, because on average, about one fourth of the exports of the principal economies of the region go there, it said, with about 30% to 40% of those exports coming from the electronics sector.

It suggested that the U.S. economy is now showing signs of a slowdown, especially in manufacturing, but that in actuality, a major slowdown is unlikely.

Negative indicators include lower corporate earnings in the third quarter and stock market weakness and volatility, which are offset by the fact that retail sales volume and other items of consumer expenditures such as housing starts in the U.S. remain fairly strong.

Overall growth in Asian nations` gross domestic product would be substantively affected only by a major and prolonged slowdown of the U.S. economy.

The briefing note warned, however, that demand for electronics goods, particularly for personal computers and generally for semiconductors, has in the past shown itself to be highly cyclical and vulnerable to a slowdown.

"Given the considerable weight of electronics in the region`s exports and manufacturing base, if uncompensated by growth in demand elsewhere, there could be adverse implications for the electronic industry and a new round of corporate and financial sector difficulties," it said, referring to the problems faced during 1997`s regional financial crisis.

Also according to the note, "most regional stock markets (with the exception of China) and movements in interest rates have become strongly correlated with changes in the U.S. financial markets, with individual markets in the region closely mirroring, and sometimes even exaggerating, movements in U.S. markets.

"Therefore, any upsets in U.S. financial markets may constrain the region`s corporate sectors` abilities to raise capital from domestic stock markets," it wrote

[Watcher100]

@ Body G

Dentist hat die Lage fast richtig erkannt.
Ich entschuldige mich für meine unqaulifizierte Provokation.
Ich war vielleicht ein wenig depremiert darüber, alles in englisch lesen zu müssen. Und das ist mein Schulenglisch.
Naja,ich kenne jetzt schon die Antwort von Dentist.
Warum investierst Du in ausländische Titel, wenn Du zu wenig Englisch kannst?
Also nichts für ungut.
Ich finde Deine Postings trotzdem gut, auch wenn sie mir die Chance geben, meine Englischkenntnisse aufzubessern.
Gruß an den Dentisten )

So long

WATCHER

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Hallo watcher100,

ich hab tatsächlich auch von Anderen mails bekommen, die auch Probleme mit dem Übersetzen haben.Ich lass mir mal was einfallen.

MfG



Wednesday, December 20 2:01 PM SGT

Thai Shrs Higher Midday; Banking, Commun Stks Lead Gains
BANGKOK (Dow Jones)--Thai stocks are up 0.8% at midday Wednesday on selective buying in big capitalization stocks, particularly banking and communications stocks, traders said.
The Stock Exchange of Thailand index closed the morning session up 2.10 points at 273.19 points, after reaching an intraday high of 273.79.

The blue-chip SET 50 index was up 0.18 point, or 1%, at 18.98.

Volume in the first session was thin at 73.8 million shares worth 1.34 billion baht ($1=THB43.161). Advancers have outnumbered decliners 60 to 37, excluding shares traded on the foreign board.

Most blue chips were higher as some Thai and foreign investors were collecting them to build up their portfolios ahead of year-end, analysts said.

Heavyweight PTT Exploration & Production was up 3% to THB102.

The banking sector rose 1.3% on gains in the biggest capitalization stock, Krung Thai Bank, which gained 2.3% to THB11.

The communications sector surged 1.9% as local players ignored the Nasdaq`s fall of 4.3% overnight and bought shares in many telecommunications firms.

Jasmine International gained 2.4% to THB8.70 and Advanced Info Services was up 2.9% to THB354.

However, analysts don`t expect the index to breach the 275-point resistance in the second session as the volume is not high enough to create strong gains.

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Ein link zur Post, in dem einige englische, börsenspezifische Begriffe und Zusammenhänge erklärt werden

http://www.bangkokpost.net/today/201200_Business05.html

MfG

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Grundstudium von W.Böhler:

Compendium of Basic English for Economics and Management

http://econweb.uni-paderborn.de/WWW/BWL/BUSENG/BUSENG.nsf/db…

Kann auch mit Wordpad vor Ort gelesen werden

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Wednesday, December 20 3:54 PM SGT

Thai Election Commission Disqualifies 2 More Candidates
BANGKOK (AP)--Battling corruption before a national vote, Thailand`s Election Commission Tuesday disqualified two candidates accused of vote-buying in their attempts to gain seats in Parliament.
Boonmak Sirinavakul, a candidate for the Democrat Party in the western province of Ratchaburi, and Pattaravudh Pookpibul, a candidate of the Chat Pattana Party from Samut Prakarn, just south of Bangkok, have been accused of buying votes.

Last week, the commission ordered its first disqualification, that of another Chat Pattana Party candidate from the northeastern province of Chaiyaphum, who was also accused of vote-buying.

The commission can disqualify candidates at any time if it feels there is evidence linking them to vote-buying.

The commission was studying about 10 more cases of alleged cheating, and will announce rulings soon, said Vijit Yusuparp, one of the election commissioners.

The Jan. 6 poll will be Thailand`s first general election since it adopted a reformist constitution in 1997 that set up the commission to fight vote-buying and other irregularities.

Police Monday stopped a campaign caravan led by the wife of a former prime minister and seized cash allegedly used for vote-buying. The procession for the New Aspiration Party was headed to a village in Nakorn Phanom province, 610 kilometers northeast of Bangkok, when police seized 100,000 baht ($1=THB42.830), the Bangkok Post newspaper said.

Traveling in one of the cars was Pankrua Yongchaiyudh, wife of New Aspiration Party leader Chavalit Yongchaiyudh, who was prime minister in 1996-97.

In an interview with a local radio station on Tuesday, Chavalit denied the vote-buying allegation, saying the money was for campaign expenses.

"We will file a countercharge against the police for attempted robbery. If the court finds them guilty, they will face 10 years in jail." he said.

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Wednesday, December 20 7:13 PM SGT

Foreigners Bought Net THB96.9M Thai Stocks Wednesday
BANGKOK (Dow Jones)--Foreign investors were net buyers of 96.9 million baht ($1=THB43.161) worth of Thai stocks Wednesday, out of a total of THB2.60 billion worth of stocks traded, said the Stock Exchange of Thailand, or SET.
Figures are in baht; some are rounded; percentages are calculated from unrounded numbers:


Bought % Total Sold % Total
Foreign 568.7 mln 21.91 471.8 mln 18.17
Local Retail 1.98 bln 76.31 2.01 bln 77.48
Institutions 46.3 mln 1.78 112.9 mln 4.35



Note: Foreign activity represents transactions by both institutions and individuals, local retail activity is by Thai nationals only, and institutional activity is by domestic institutions, SET member-brokers and sub-brokers.

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Wednesday, December 20 6:31 PM SGT

Thai Baht Ends Sharply Up On Stop Loss,Exporter Dlr Sales
BANGKOK (Dow Jones)--The Thai baht ended sharply higher against the U.S. dollar Wednesday on continued offshore stop-loss selling, coupled with exporters` sales, in the U.S. currency, dealers said.
The U.S. dollar finished at its two-month low of THB42.630, significantly down from THB43.025 at the Asian close Tuesday.

After breaching the THB42.90-support near midday, the U.S. unit slid quickly in the afternoon to an intraday low of THB42.53 before regaining some ground near the close on local corporate buying of dollars, dealers said.

Thin volume also exaggerated the baht gains, they added.

"Exporters` selling pushed the dollar lower in the first session, but its sharp slide in late trade is mainly due to offshore orders," said a dealer at local bank.

A dealer at a foreign bank cited an unconfirmed market talk that a European bank branch sold dollars for a major account and other market participants later joined the selling bandwagon to stop their losses.

Dealers said the dollar`s downward trend is likely to continue Thursday, pegging support at THB42.30 with key resistance at THB43.0.

"There is a slim chance for the dollar to rebound above THB43 in the near term as most firms has completed their yearend obligations," the dealer at a local bank said.

A Thai central bank official said Wednesday the baht`s strength is partly a result of technical factors as program selling occurred once the baht breached resistance of 43.20 against the dollar.

He said another factor is market anticipation of a U.S. rate cut in January and the U.S. economic slowdown to put a brake on investors` dollar preferences.

(MORE) Dow Jones Newswires 20-12-00

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asia pacific equities
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Asia Watch: Thai market braces for election year
By Joe Leahy in Hong Kong
Published: December 19 2000 11:28GMT | Last Updated: December 19 2000 17:22GMT



The Thai market will next year focus on a general election and on the US economic slowdown, which is expected to hit Thailand`s vital electronics exports.

On Tuesday, the benchmark SET 50 index ended up 0.03 points, or 0.16 per cent, at 18.80.

The market was led by speculative trading in telecom stocks such as TelecomAsia, the fixed-line operator, which ended down Bt0.75, or 4 per cent, at Bt18.50.

"The year is winding down and institutions have for the most part been moving to the sidelines," said a sales representative with a major foreign brokerage.

The slow end to the year follows a sharply negative performance for the Thai stock market, which has lost 43.75 per cent over the course of 2000.

Foreign fund managers have pulled out of Asia`s smaller markets, including Thailand, and have concentrated on the region`s more developed markets, such as Hong Kong and Singapore.

"It`s become such a small market," said Peggy Creveling, of Salomon Smith Barney in Bangkok.

On Monday, official estimates for 2000 GDP growth were scaled back to 4.5 per cent from 5 per cent. "Even though they were much lower than the consensus, there wasn`t any impact on the market," Ms Creveling said.

"I`m starting to wonder if our market is punch drunk," she added.

Now investors are awaiting the result of the general election.

Businessman Thaksin Shinawatra, leader of the populist Thai Rak Thai (Thais Love Thais) party, is seen as the favourite to win the election over incumbent prime minister Chuan Leekpai.

However, a victory for Thaksin would not spell an end to political uncertainty.

He is currently under investigation by the National Counter-Corruption Commission for allegedly failing to declare assets when he was in the cabinet in the mid-1990s.

If found guilty, he could be banned from politics for several years.

Mr Thaksin is also pushing populist policies such as debt relief for farmers that, if adopted, would hurt on the banking system.

Perhaps of greatest concern are expectations of a US slowdown. Net exports in the third quarter accounted for 18.5 per cent of Thailand`s GDP, up from 13 per cent in the second quarter.

The country`s meain exports are produced by the electronics and automotives industries, both of which would suffer in a global slowdown.

"If there`s a slowdown in US demand, there`ll be a slowdown in the Thai economy," Ms Creveling said.

But Ms Creveling was more positive on the outlook over the next 18 months.

The restructuring of the financial system is progressing slowly with non-performing loans in the banking sector falling to about 22 per cent in October from 47 per cent a year earlier, Ms Creveling noted.

The electoral system has also been reformed with the aim of increasing the parliament`s control over the government, and bankruptcy and disclosure rules have been tightened.

"It`s `slowly, slowly` but it adds up to an awful amount of change," Ms Creveling said.

But the pace of the reforms may be too slow for foreign institutional investors.

Market watchers warn that until the bad debtors can be cleared out, the economy and the stock market will continue to have difficulty getting back on track.

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Experts Claim Baht Will Not Appreciate Next Year

Staff writer
ONE day after the country`s economic policy planning agency, the National Social and Economic Development Board (NESDB), made an official forecast that the value of the baht will pick up next year, leading stock market experts came out to offer an opposing view by saying that the value of Thai currency will at best hover around its current level, or may drop further.

Kongkiat Opaswongkarn, Chief Executive Officer of Asset Plus Securities, also predicted low foreign investment in the Thai stock market, a stable interest rate and higher inflation.

He said yesterday at a seminar on the Thai economy in 2001 that due to stiff competition among exporting countries, the value of the baht will remain more or less the same as it is now with a possibility of its dropping further.

The NESDB recently released a forecast predicting that the value of the Thai currency will move up from the current level of 43.00-43.50 baht per US$ to around 41.00 per US$ next year.

Citing the unattractive investment atmosphere in the Thai bourse, Kongkiat said that next year will not see much inflow of foreign capital into the stock market.

"Although the value of the Thai baht has weakened, most foreign investors still regard the Thai market as unattractive compared with those in other countries such as China," he said.

In the area of interest rates, Kongkiat said that there would not be any drastic movement either, as long as mechanisms in the banking credit extension system remain non-functioning.

The possibility of a further depreciation of the baht was also predicted by Jessada Loha-oon-jit, managing director of Mutual Fund Securities who cited a weaker US dollar and a need to keep the price of Thai export products competitive as the main factors pulling the baht down.

Commenting on the trend of local banks` interest rate, he said that it will also stay at its current level.

"I don`t think it will go down much because it is already very low compared with that in other countries," he said, adding that the possibility of an upward trend will depend largely on how the banks can adjust their lending mechanisms, and the rate of inflation.

He noted however that most investments in the stock market by mutual funds are now in short-term bonds, an indication that investors believe an upward trend of interest rate is looming.

Meanwhile, Bandit Nilthavorn, Assistant Governor of the Bank of Thailand (BOT), said at present the Thai currency exchange rate is mainly dictated by the country`s overall economic performance.

He said the economic slowdown in the third quarter of this year, announced by the NESDB, is the reason why the value of of the Thai baht is now declining.

He also said that the value of the Thai baht will also be determined by the direction of the US dollar.

As far as foreign investment in the stock market was concerned, he said that it had slowed down since the beginning of the year and the future trend was not so bright.

"We do not expect much influx of foreign investment into Thailand, despite an increasing flow into the overall region. This scenario tells us that foreign investors are still skeptical about our business restructuring process," said Bandit.

According to him, direct foreign investment in the past 9 months of this year stood at US$1.7 billion, compared to $3.2 billion in the same period of 1999.

The September figure was $534 million.

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KTB Aims to Restructure 30bn Baht of Minor NPLs Next Year

STAFF WRITER
KRUNG Thai Bank (KTB) has set a target of restructuring minor non-performing loans of 30 billion baht within year-end.

So far this year it has restructured 20 billion baht of minor NPLs, consisting mainly of individual borrowers in provincial areas, and anticipates no problem in reaching the target.

Currently, the bank has about 70 billion baht of minor NPLs, loans of 5 million baht or less to small borrowers, on its books.

Branches in provincial areas will be given more authority to make decisions regarding restructuring minor NPLs to accelerate the process, said Pairoj Varopas, KTB Vice President. The restructuring procedure will focus on simple cases as difficult cases will be handled by the civil courts.

"Minor borrowers are easy to deal with as long as we bring up the problem early," he said.

NPLs at the bank now total 107 billion baht, following the transfer of 519.38 billion baht in NPLs to an asset-management corporation owned by the state`s rescue fund -- Sukhumvit Asset Management Company.

After the transfer, its bad loan total fell sharply to 10 percent as of October from nearly 60 percent of total loans in September.

Thai banks were now left with NPL cases which were much tougher to handle after their success in reviving some of their more financially viable clients in the past year.

"If one look at the numbers, some 70 percent of the bad loans are headed towards or are already in litigation which typically involves a very lengthy process in the civil court. There aren`t too many restructurable loans out there in the system," said a banking analyst.

Thai banks, hit by massive defaults on their loans after the baht and financial sector collapsed in 1997, saw their NPLs peaking at 47 percent of total loans in May 1999. The figure fell to 21 percent in October.

Quelle von diesem und dem letzten Beitrag: Bday 20.12.00

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Thailand May Drift Back To Recession: ING Barings

STAFF WRITER
WORRIES that Thailand may face a second crisis were magnified yesterday when ING Barings warned that the country could head towards recession unless monetary policy is eased.

ING Barings believes that Thailand actually needs easier monetary conditions and with the evident credit crunch in the banking system, it needs a weaker currency. "The longer the government fights depreciation, the more pressure will build in the form of weaker Gross Domestic Product (GDP) growth and even lower asset markets," it said.

Meanwhile, ING Barings Senior Economist Ray Farris, questioned in a report the Bank of Thailand`s monetary stance which he said did not seem to be compatible with the weakening growth outlook.

"The Bank of Thailand has bewilderingly decided to try to prevent the baht from depreciating beyond 43.50 by tightening monetary conditions," Farris said.

Farris maintains his forecast for the baht to depreciate to 44.50 and the three-month interbank rate to fall to 3 percent from the current 4.75 percent.

Export growth is also expected to slow, emulating the experience seen in Korea and Singapore in November in the final quarter of the year.

Export growth slowed in October to 15.5 percent year-on-year compared to 21.8 percent third quarter. The sharp drop in export growth in Korea and Singapore in November suggests that Thai exports will slow further.

Similarly, the slowing in car sales growth from 11 percent in the third quarter to 6.6 percent in October-November also suggests that domestic demand is continuing to weaken.

"And if exports growth does not meet the forecast of 10.9 percent next year, we think Thailand could dip back into recession," said the report.

In addition, ING Barings yesterday downgraded its full year forecast for Thailand for 2000 to 4.0 percent from 4.8 percent. Gross Domestic Product (GDP) for 2001 is expected to reach only 4.5 percent and even this may be too optimistic.

"Third quarter GDP growth of only 2.6 percent badly disappointed the consensus and our expectations of over 4 percent," said ING Barings` report. "We now expect fourth quarter GDP growth of 2 percent."

Quelle: Bday 20.12.00

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Thailand May Drift Back To Recession: ING Barings

STAFF WRITER
WORRIES that Thailand may face a second crisis were magnified yesterday when ING Barings warned that the country could head towards recession unless monetary policy is eased.

ING Barings believes that Thailand actually needs easier monetary conditions and with the evident credit crunch in the banking system, it needs a weaker currency. "The longer the government fights depreciation, the more pressure will build in the form of weaker Gross Domestic Product (GDP) growth and even lower asset markets," it said.

Meanwhile, ING Barings Senior Economist Ray Farris, questioned in a report the Bank of Thailand`s monetary stance which he said did not seem to be compatible with the weakening growth outlook.

"The Bank of Thailand has bewilderingly decided to try to prevent the baht from depreciating beyond 43.50 by tightening monetary conditions," Farris said.

Farris maintains his forecast for the baht to depreciate to 44.50 and the three-month interbank rate to fall to 3 percent from the current 4.75 percent.

Export growth is also expected to slow, emulating the experience seen in Korea and Singapore in November in the final quarter of the year.

Export growth slowed in October to 15.5 percent year-on-year compared to 21.8 percent third quarter. The sharp drop in export growth in Korea and Singapore in November suggests that Thai exports will slow further.

Similarly, the slowing in car sales growth from 11 percent in the third quarter to 6.6 percent in October-November also suggests that domestic demand is continuing to weaken.

"And if exports growth does not meet the forecast of 10.9 percent next year, we think Thailand could dip back into recession," said the report.

In addition, ING Barings yesterday downgraded its full year forecast for Thailand for 2000 to 4.0 percent from 4.8 percent. Gross Domestic Product (GDP) for 2001 is expected to reach only 4.5 percent and even this may be too optimistic.

"Third quarter GDP growth of only 2.6 percent badly disappointed the consensus and our expectations of over 4 percent," said ING Barings` report. "We now expect fourth quarter GDP growth of 2 percent."

Quelle: Bday 20.12.00

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Bangkok shares close slightly lower on profit-taking in telecom stocks

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BANGKOK (AFX-ASIA 20.12.00) - Share prices closed slightly lower in line with most other regional markets, with profit-taking, mainly in telecommunications stocks, offsetting earlier gains, amid a lack of fresh positive leads, dealers said.
The SET index closed down 1.18 points or 0.43 pct at a low of 269.91, off a high of 273.79.

The SET 50 index closed down 0.10 points at 18.70.

Decliners led advancers 90 to 53, with 93 stocks unchanged.

Volume was 1.39 mln lots worth 2.59 bln baht.

The baht was trading at 42.61/65 to the dollar against 42.85/90 earlier, while the overnight rate was at 1.5 pct.

The banking sector was down 0.26 points at 142.19, the finance sector was down 7.05 points at 603.58 and the telecom sector was down 0.17 points at 51.20.

Thai Sakura Securities analyst Anothai Chiangtawan said the market was dominated by short-term and speculative investors who sold mainly telecommunications stocks in the afternoon due to a lack of strong fresh leads.

"They (short-term and speculative investors) used the news of the stronger baht as an excuse to buy telecommunications in the morning session even though the fundamentals of most telecommunication companies remain unchanged," he said.

TelecomAsia fell 0.50 baht to 18.00 on 24,232 lots, while Shin Corp fell 5.00 to 159.00 on 4,229 lots. Jasmine International closed up 0.10 at 8.60 on 53,269 lots.

Bangkok Bank fell 0.25 to 25.75 on 8,584 lots while Bank of Asia fell 0.10 to 6.80 on 35,392 lots after announcing details of its recent capital increase.

Hana closed down 2.50 at 96.00 on 18,395 lots.

PTTEP closed up 0.50 at 99.50 on 15,348 lots, while Ratchaburi fell 0.25 to 12.75 on 9,951 lots.

BEC World closed down 10.00 at 218.00 on 412 lots after a strong performance yesterday.

bur/sm

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Press award for `Nation` man


THEPCHAI Yong, the Nation Group editor, last night received the "Press Freedom Award" from Amnesty International, Thailand, for his role in promoting freedom of expression and human rights.

The selection committee also named him joint winner of the Human Rights Press Award 2000 for "Yon-roi" (Looking Back), an investigative documentary which he directed and anchored. The award-winning film traces events leading up to the massacre on October 6, 1976. The subject had been a taboo for Thai broadcast media because of its politically sensitive nature. The other winner was Korkhet Chantalertluck for his "Tod-rahat" (Decipher) programme on the 1992 uprising.

Thepchai, 45, who was editor of The Nation during the 1992 military crackdown, won the Press Freedom Award from the New York-based Committee for Protection of Journalists the same year for the paper`s coverage of the event.

He left iTV last month after protesting against Shin Corp`s take-over of the station to rejoin The Nation.

During his four years as news director at iTV, he was a major force in turning the country`s first independent TV station into a respectable news station which was instrumental in exposing a series of scandals and bribery cases, and defending human rights.

To promote media coverage of human rights, Amnesty International in Thailand has been honouring best news stories annually since 1998. The Nation and its sister publication, Krungthep Thurakij, won the 1998 and 1999 awards respectively.

The Nation

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Tycoon wins dull showdown.


IT was anything but a shutdown.

Rivals Chuan Leekpai and Thaksin Shinawatra faced each other in a public debate for the first time yesterday, but despite trading a few swipes their performance was generally dull.

The bore factor, however, only played into the hands of Thaksin, who emerged from the debate a much happier candidate because the event`s format did not allow Chuan any opportunity to regain his widening lost ground.

Chat Thai leader Banharn Silapa-archa and Chat Pattana leader Korn Dabaransi also joined the debate, which focused on the economy, foreign affairs, drugs, privatisation and natural resource management.

Gen Chavalit Yongchaiyudh, leader of the New Aspiration Party, was absent from the debate yesterday, preferring to spend his time campaigning in his stronghold in the Northeast.

Chuan would have preferred the Thammasat University forum to resemble the Gore and Bush one-on-one so that he could unleash his most formidable weapon in a national political face-off.

Unfortunately, the classroom-homework presentation atmosphere kept at bay the eloquence that once propelled Chuan to the political summit and saved him many times in the past.

The embattled prime minister`s situation was clear after the debate, as subsequent opinion polls confirmed Thaksin`s comfortable lead in popularity. Dusit Poll`s survey of more than 1,300 people showed viewers were far more impressed by the tycoon, while Chuan barely edged out Chat Pattana leader Korn Dabaransi to finish second.

A Nation survey of 134 viewers, however, showed that Thaksin only slightly edged out Chuan in terms of credibility and attractiveness of policies.

Thaksin was successful in avoiding a one-on-one debate with Chuan, a showdown in which the Thai Rak Thai leader would have risked a barrage of character attacks.

The tycoon looked relaxed yesterday while the boring atmosphere could never help Chuan, whose main indictment as a politician is that he is "boring" the Thai public to death.

During the two-hour-and-40-minute debate, Korn made a case for why he should be trusted to form a government, while Banharn reminded the voters why it was safer to vote for a veteran such as himself.

The debate, sponsored by Pollwatch Foundation (P-Net), came less than three weeks before the January 6 election. With Thaksin leading in the polls, the three other parties participating in the debate hoped the event might shift public sentiment or swing undecided voters - many of whom are in Bangkok - to their side.

Chuan was the target throughout the debate. His leadership was frequently attacked by Korn and Thaksin. Without naming Chuan, Thaksin criticised him for his failure to take action against corrupt officials. "If I were Prime Minister," he said, "I would sack any officer who was believed to be corrupt, without considering the political connection."

Banharn, currently the Chuan government`s partner, also criticised the administration for not listening to the public on issues related to natural resource management, such as the Thai-Malaysian natural gas pipeline. "A leader should open his mind and listen to the people," he said.

Chuan, meanwhile, was true to his soft-spoken style, repeatedly stressing what he thought to be the government`s achievements. He insisted that the government had used sound judgement in approving some of the more controversial projects.

The message Chuan appeared determined to transmit was that the Democrat-led government may not have been flashy, but it had put priority on sustainability and continuity and would continue to do so if re-elected.

Thaksin highlighted his long and successful business career as the essential element in the new leadership qualities being demanded by voters.

But it was Korn who appeared the most assertive of all. "I am qualified to be the next premier because I have been accumulating experience over many years," he said.

It remains to be seen to what extent the debate will influence the minds of voters. Yesterday`s event was low-key and highly scripted. The leaders received most questions in advance from the Election Commission, and fresh scandals over vote buying involving a number of political parties were not even mentioned.

There was no interaction between the debaters and the audience of about 1,000. Each candidate was given about 10 minutes to present his party`s policy from the podium. Then the candidates sat shoulder-to-shoulder behind a table to answer questions from a moderator.

Initially, the event was supposed to feature Thaksin directly confronting Chuan in a live debate. But when Thaksin opposed that format, P-Net softened its stance by agreeing to include other party leaders and provide the candidates` questions in advance.

The four candidates held a draw to determine the order of presentation. Banharn was first, followed by Korn, Chuan and Thaksin. Each candidate had two minutes to answer each question.

The Election Commission had originally planned to pose 10 questions from the public. But the time allowed the moderator to ask only eight questions.

BY SUKANYA LIM and

JEERAWAT NA THALANG

The Nation 21.12.00

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Office sector leads property revival


THE office sector is leading a rebound in property markets across the region, with office vacancy rates declining and rents rising in most Asian countries in the third quarter, a recent Jones Lang Lasalle report said.

After three years of economic recession, Asian economies appear to be on the path to recovery, with gross domestic products showing growth and capital inflow from direct foreign investment returning.

With a projected average 4-per-cent growth for next year, Asian remains the world`s most attractive region for investment, the report said.

Evidence for this can be found in strong leasing activity on the back of an increase in demand from IT-related companies in most major cities in Asia.

Office rents in central Hong Kong grew significantly in the third quarter, due mainly to the emergence of IT-related start-ups and the growth of telecommunications companies, financial institutions and the dot.com sector.

"Outlook for the office sector remained good with China`s impending entry into the World Trade Organisation and an anticipated surge in demand, particularly from foreign companies such as banks, consultancies and international law firms," the report noted.

In Tokyo and Singapore, strong demand coupled with a limited supply of prime office space has caused a sudden surge in occupancy levels and overall office rents.

Meanwhile, vacancy rates in central Puxi and Shanghai fell 5.2 per cent and 5.4 per cent, respectively, while Bangkok`s grade A office market recorded a2-per-cent decline.

In Auckland, however, due to a number of tenant relocations, vacancy rates have risen 0.98 per cent.

Office rents in most major regional markets increased during the third quarter in line with growth in demand and a continued decline in vacancy levels since the beginning of the year.

"Net rents in central Hong Kong and Singapore`s central business district rose 11.6 per cent and 7.3 per cent, respectively, compared to increases of 8.6 per cent and 3.8 per cent in the second quarter of the year," the report said.

However, in the first nine months of this year, net rents in Bangkok`s central business district fell 2.9 per cent after increasing for four consecutive quarters.

The Nation 21.12.00

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Banks call for AMC to clear bad-loan logjam


THE Thai Bankers Association (TBA) plans to push the next government for a stronger policy on tackling the country`s huge non-performing loans (NPLs) problem.

Tough new measures were needed to improve the banks` lending problem, according to association chairman Chulakorn Singhakovin, who said it was the only way to lift the banks` dim outlook.

The TBA statement comes with the government and banks virtually at loggerheads over lending policy. Banks are currently squeezing lending due to restricted credit analysis and risk control, while the authorities want them to lend more to spur the economy.

The level of problem loans in Thai banks is currently about 22 per cent, down from its peak of 47 per cent a few years ago. But Chulakorn said the local banking system, could not survive at this rate - much higher than the international average of 5 to 10 per cent.

The current market-led approach of the Chuan government was not a practical way to lower the NPL rate, Chulakorn said, because the market had failed to clear NPLs.

Therefore, he said, the government must solve the market mechanism.

"The Thai government is opting to avoid intervening in the NPLs directly, so it intervenes in the banks instead. So if the authorities would like to maintain this approach, the market mechanism needs to be fixed," the TBA chairman said.

According to Chulakorn, prolonged court procedures related to the debt restructuring of various financial institutions have stalled the market mechanism. And businesses that had failed to reform their organisations by introducing more transparent practices had become obstacles to the market.

Another way to tackle the NPL problem was through a national asset management company (AMC).

If implemented, the government would use a national AMC to buy up NPLs from the banking system, and thus bring a quicker recovery for the banking industry. "Solving the (problem with a) market mechanism takes a long time. So in the short term, what can the government do? If they choose to take decisive measures such as a national AMC, what will the cost be for the public? And who will manage [the NPLs], or will they be isolated, like in Mexico? So far, I can`t see any political party willing to clearly address this issue with a detailed policy," he said.

Chulakorn said the TBA would also urge the next government to set a policy on bank lending. He said the current restricted regulations for financial institutions ran counter to the authorities` wish to see the banks lend more credit to the real sector.

Thai Farmer`s Bank (TFB) president Banthoon Lamsam made the same point recently. He said that while Thai authorities want financial institutions to control the credit extension risk to prevent the kind of lending mismanagement that leads to a financial crisis, a number of regulations only serve to inhibit such a policy.

The government also wants the banks to lend more credit to businesses in order to stimulate the economy. But banks are unwilling to extend new credit due to their concern over the rise of NPLs and low demand. They argue that, since the real sector has yet to recover, banks are in no position to lend more credit and NPLs are not being reduced significantly.

Banthoon also urged the country`s political parties to clearly present their action plans for both economic and social problems as soon as possible, so their platforms are clear before the January 6 election.

Bankers also want the new government to support the increased transparency of operations and accounting for all businesses, raising them to the same standard that applies to the banks.

Singh Tantatswas, president of Krung Thai Bank (KTB), said that by applying practical economic policies to current problems, the new government could even maintain the stability of the baht. "The financial sector has so far adjusted itself to a certain level. But they cannot lend much credit since the real sector has still not recovered," he said.

Some political parties` campaigns have used nationalistic language, but Singh warned that Thailand must not isolate itself from foreign economies.

Kosit Panpiemras, executive chairman of the Bangkok Bank (BBL), said recently the most important problem awaiting the next government was public debt, particularly foreign debt. He said the next government would have to be cautious about the country`s foreign debts.

According to Kosit, Thailand`s foreign debt burden is currently US$83 billion (Bt3.57 trillion) or 70 per cent of Gross Domestic Product, while the country`s foreign income from its trade surplus is deteriorating.

BY JIWAMOL KANOKSILP

The Nation 21.12.00

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Bath hits 10-week high


THE Thai baht burst above Bt42.80 to the US dollar yesterday, hitting a 10-week high on stop-loss dollar sales.

The dollar has lost nearly 2 per cent since late Tuesday, which suggests it has been deeply oversold, with a reading of 16.9 on the 14-day relative strength index. Some near-term consolidation seems likely.

The baht was buoyed by the unwinding of stale long dollar positions, with Tuesday`s break above the Bt43 barrier for the first since October 12. It spurred local and offshore dollar sales.

The market was uninspired by the central bank`s explanation for not intervening to drive up the baht, which it said had risen due to thin, pre-holiday trade and perceptions of slowing US growth.

Softer crude-oil prices and year-end squaring of long dollar positions against regional currencies have also helped the baht, which had been loaded with concerns about the January 6 election.

Other Southeast Asian currencies have also held a firmer position, with the Indonesian rupiah off early six-week highs on inter-bank dollar buying for commercial clients, and on speculation it will weaken after a break.

Meanwhile, the Bank of Thailand is closely monitoring the unusual rise of the baht in non-resident baht accounts.

Chetthavee Charoenpitaks, the Bank of Thailand`s assistant governor, said the central bank had detected an unusually high level of baht in non-resident accounts - as high as Bt100 billion.

In a bid to expose speculation on the local currency, Chetthavee said the BOT would examine whether there have been any transactions exceeding Bt50 million that have no underlying business.

Because such transactions violate BOT regulations, he said, the central bank would penalise offending banks by banning them from the repurchase market for 10 days.

Until recently, the baht had been the subject of a lot of speculative buying in offshore markets until the liquidity dried up and offshore interest rates went up.

Baht speculators who need to settle baht trading need to borrow baht liquidity from domestic banks. As a result, banks in the Thai market had a lack of liquidity for a short period. - Anoma Srisukkasem

The Nation, Reuters 21.12.00

[BodyG]

Zum Auffrischen der Englischkenntnisse:

http://www.real-life.english-at-home.com/

In der Nation sind noch einige Links

MfG

[BodyG]

Tagesbericht von UBSWarburg TUF strong buy:

http://bday.net/dec20/UBSW-Asia_Research/th201200.pdf

[BodyG]

COMPANY REPORTS:


BANGKOK METROPOLITAN BANK has announced that its non-performing loans as of November amounted to Bt105.78 billion, or 57.99 per cent of the outstanding credit.

The nationalised bank said that its total assets for November stood at Bt162.35 billion.


EKACHART FINANCE`s non-performing loans as of November dropped to 28.77 per cent of total lending, from 31.93 per cent for the previous month.

Ekachart`s problem loans as of November totalled Bt2.70 billion, compared with Bt2.77 billion in October.


ASIA CREDIT`s non-performing loans as of November stood at Bt10.94 billion or 47.67 per cent of total lending.

The company reported Bt32.61 billion in total assets.


HEMARAJ LAND AND DEVELOPMENT said that no warrant holders exercised their rights during December`s share conversion period.

The industrial estate operator said that its recently issued 141.53 million units of warrants had remain unchanged.


ROYAL GARDEN RESORT has reported that no warrant holders exercised their rights after it raised the exercise price from Bt9.61 to Bt10 each.

A total of 3.74 million units of warrants recently issued to the company`s employees under an employee stock option programme (ESOP) have not been exercised, the company said.

The company had raised the exercise price to comply with a Commerce Ministry`s requirement. Earlier, the ministry had rejected the company`s capital increase registration because the exercise price had been set below the par value of Bt10.

The company had also earlier revoked ESOP`s warrant-conversion applications submitted in November for 30,000 shares to be exercised at Bt9.61 each.


SIAM SANWA INDUSTRIAL CREDIT has reported that no warrants were exercised by its latest maturity date of December 15.

SICCO issued 21.62 million units of warrants under SICCO-W and 28.38 million units of warrants under SICCO-W2.

Warrant holders are entitled to exercise their rights on the 15th of March, June, September and December of each year.

The exercise ratio and price is 1 warrant for 1 ordinary share at Bt12 each.


JASMINE INTERNATIONAL has reported that 16,000 units of its warrants were converted into the same number of common shares this month.

The company has issued 333.6 million units of warrant and each unit is eligible to be converted into a new share at an exercise price of Bt5 a share.


THE STOCK EXCHANGE OF THAILAND has allowed shares of Krisdamahanakorn to be traded under the REHABCO sector category, following the firm`s completion today of its capital increase procedures.


FAR EAST ADVERTISING has reported that DM9 Holding is now the company`s third-largest shareholder after it bought a 10-per-cent interest equity from the bourse.

As a result, the company`s first five largest shareholders structure changed. In addition to DM9 Holding, Saha Pathana Inter-Holding, ICC International, Saha Pathanapibul and Tisco Securities Co are the FE`s major shareholders.


CH KARNCHANG has announced that its joint venture firm, CKOBA Joint Venture Co, has entered into a contract to construct the Wat Nakorn-In Bridge and connecting roads with the Public Works Department.

The contract is valued at Bt1.45 billion with a construction period of 730 days.

CK holds a 44-per-cent stake in the joint venture firm, while Obayashi Corp owns 50 per cent. The reminder belongs to Thai Obayashi Corp.


THAI HEAT EXCHANGE has reported the resignation of its board of directors, Watchara Permphithak and Prangthong Sikhaphan, effective as of yesterday

THE NATION 21.12.00

[BodyG]

Aus dem SEAMICO Forum zu LH:

[Tuesday, December 19, 2000 4:09:45 PM]
Subject : LH - any reason for pick up in volume
Message : I see this stock is trading lots today. Anything up? It`s already very cheap (historiacaly anyway) and I own plenty at more than twice the current price, and am looking to buy more for the longish term...ie when I can get out and not loose my shirt! Any help much appreciated.

Name/E-mail : campbell ross Reply





[Tuesday, December 19, 2000 4:23:46 PM]
Message : Base on technical analysis, LH is to rise strongly over next couple of weeks. I assume the stock has been in a very first stage of recovery. Suite for either speculation or investment. Minor resistance lies at Bt15-17.

Name / E-mail : [e-mail]





[Tuesday, December 19, 2000 5:40:07 PM]
Message : Thanks so much. Sounds like a good time to buy in. I will!

Name / E-mail : Campbell Ross





[Tuesday, December 19, 2000 5:49:49 PM]
Message : Do you trade through Seamico. Why not give them a shot.

Name / E-mail : [e-mail]





[Wednesday, December 20, 2000 5:46:03 AM]
Message : To puwadolw, Don`t mean to be rude, but based on WHAT tech/A do you base your predicitions for LH?

Name / E-mail : Peter Reid





[Wednesday, December 20, 2000 9:22:36 AM]
Message : LH`s price was well maintained above all of its 10, 25, 75 and 200-day moving average lines at an area of Bt11.50-12.00. This had made a strong support to which a price should not breach. Moreover, there is a Golden Cross just emerged during past couple of weeks suggesting which LH is to appreciate where Bt15-17 becomes its minor resistance.

Name / E-mail : [e-mail]





[Wednesday, December 20, 2000 10:24:32 AM]
Message : what school you went in K. Puwadol? Do you know what you are talking about. I will strip myself if LH goes above 15 bt in next 90 days. By the way last week you predicted a strng rebound in SET that was a another shit from you.

Name / E-mail : George Soros





[Wednesday, December 20, 2000 10:38:24 AM]
Message : very constructive comments "George Soros". Keep hiding behind your many nicknames so that you feel safe from good folks here!

Name / E-mail : [e-mail]





[Wednesday, December 20, 2000 11:14:40 AM]
Message : Now, the SET is rebounding. Don`t worry!

Name / E-mail : [e-mail]

[Watcher100]

@BodyG
Muß mich wirklich nochmal für meine Provokation im frustierten Zustand entschuldigen. Ich habe mir heute die Mühe gemacht,Deine letzten Postings zu übersetzen und zu verstehen. Übrigens im nüchternen Zustand ( DENTIST ).
Ich muß Deine Wahnsinnsarbeit wirklich respektieren, auch wenn es in Englisch ist. Also mach weiter so !!!

So long

WATCHER

[BodyG]

Stock Watch

--------------------------------------------------------------------------------

Why the SET is likely to rally
Several reasons for not fearing the worst


PAUL RENAUD


Stock markets and their inevitable changing trends show how wrong most people often are about short-term movements on the SET. Yet, as we have shown, investing for the long term by owning diversified shares of value has been rewarding during the past three calendar years.

Individual private investors have many unappreciated advantages over institutional investors who must be pre-occupied with share liquidity and assume everybody else must be so as well. I now give my own reasons why the SET has a good chance to rally next year.

We remain bullish on Thailand`s many "value" shares and recently have selected a few stocks of large capitalised value for investment as well.

- A lot of "risk" money has been taken out of the US technology sector. Some of this will slowly come back to emerging markets. Short of a crash, any capitulation on Wall Street should be good for Asian markets.

- The prospect of lower US interest rates is a new positive for Southeast Asia in general. This year has seen continued higher US rates and Asia`s stock markets almost always follow the direction of US interest rates.

This is one reason why 2000 was an "equity flop" on the SET. Collect and own the large dividend payers has long been our motto.

- Interest among US institutions in foreign shares is much stronger than generally believed. This year more new American Depositary Receipts or ADRs (foreign shares that are trading in the United States) have been issued in the US than in any year before.

- Savers in Thailand are fed up with low local bank interest rates. Banks are awash in liquidity. Millions of people are seeking new and prudent ways to save. Currently only some 1% of total savings here are channelled into the SET. Will we see new brokers and expanded services?- New favourable laws are slowly grinding through like the one on Treasury stock, that will allow companies to buy back their own shares for investment. The surge in tourism and good double-digit export returns for food, auto parts and basic electronics should propel the local market higher. But the SET benchmark index will, no doubt, much under-represent the progress, because this dated index is very top-heavy in stocks of high capitalised value.

- US President-elect George W. Bush is generally good for Asia. Also, Mr Bush`s planned tax cuts next year are positive. This should keep the US from a hard landing, which is an increasing concern as US economic numbers have been weakening.

- The curtain is being brought down on Prachai Leophairatana`s Thai Petrochemical Industry Plc, Thailand`s biggest debtor, which has pulled every trick in the book over the past two years to delay restructuring. The Thai courts rebuffed the latest delay tactic and the Bankruptcy Court handed TPI to its creditors last week. This surely has sent the right message to the world, as too many had given up on this issue too soon.

- There has been better disclosure and corporate governance. As one example, on the SET`s own web page, see news on topics such as broker fines for violations and insider trading. As well, we welcome the new web site, Settrade.com, which soon will be offering more services for investors.

- The Internet will forever give individual investors more power to obtain independent information on inefficiencies that are so prevalent in emerging markets. This will in time raise the prices of some of the least-valued, smaller SET shares. Despite their overall good performance they remain the best value in Asia.

- Paul Renaud has over two decades of investment experience. Since 1997, he has owned and published www.thaistocks.com, a web site dedicated to local investment. He can be reached at [e-mail].

Quelle: POST 21.12.00

[BodyG]

Tarrin sees need for new `Miyazawa`
Risk of slowdown in export growth seen


Wichit Sirithaveeporn


The next government might have to launch a new stimulus programme to improve domestic demand next year, according to Finance Minister Tarrin Nimmanahaeminda.

He said the programme could be similar to last year`s Miyazawa plan, which had budgeted 53 billion baht for educational, social welfare and public health initiatives with funding from Japan.

Mr Tarrin warned that flagging global growth could lead to exports in 2001 falling below the official growth target of 11%, raising the importance of relying on stimulating domestic demand.

He reiterated that dealing with the remaining non-performing loans in the financial system, currently around 1.1 trillion baht, would also be also critical for strengthening local banks and allowing new credit to flow to companies.

Several political parties have already announced plans to increase fiscal spending sharply, through tax cuts or new investment programmes. But analysts and policy makers caution that election promises might have to be diluted in the face of the country`s deteriorating fiscal position and rising public debt.

Mr Tarrin said key risk factors for next year would be the US and Japanese economies, both key export markets for Thailand, as well as the impact on the region of China`s membership of the World Trade Organisation.

He expressed confidence that fourth-quarter growth would increase from the third quarter, as holiday spending spurred demand, helping push overall growth this year to around 4.5%.

Earlier this week, the National Economic and Social Development Board shocked analysts by reporting that third-quarter gross domestic product grew by only 2.6%, a full percentage point below expectations. The board expects fourth quarter growth of 3.7-3.8%.

Mr Tarrin said third-quarter growth slowed because of five main factors.

These were the expiry of the Miyazawa programme, higher oil prices, the weakening baht, political uncertainties and falling agricultural production due to floods.

Quelle: POST 21.12.00

[BodyG]

Thursday, December 21 9:17 AM SGT

IMF-Thailand -2: First Review After Loan Program
(MORE) Dow Jones Newswires 21-12-00
0114GMT

IMF: Thailand Mkt Sentiment Is Weak, Cites Slow Reforms

(MORE) Dow Jones Newswires 21-12-00

0115GMT*DJ IMF Sees Thailand GDP Near 5% In 2000, 4%-5% Next Yr

(MORE) Dow Jones Newswires 21-12-00

0115GMT*DJ IMF: Thailand Growth Next Yr Hinges On Mkt Confidence

(MORE) Dow Jones Newswires 21-12-00

0115GMT*DJ IMF: Thailand Current-Account, Reserves In Good Shape

(MORE) Dow Jones Newswires 21-12-00

0116GMT First Review After Loan Program

WASHINGTON (Dow Jones)--The International Monetary Fund Wednesday warned that the slow pace of corporate debt restructuring in Thailand is hurting market sentiment, posing a significant risk to economic recovery.

The IMF provided this assessment in a "Post-Program Monitoring Discussion" paper on the Thai economy, its first review of a country shortly after it has completed an IMF loan program.

These post-program reviews are expected to provide the IMF with the opportunity to monitor a country`s performance and warn of potential slippages after a loan agreement has expired.

Thailand led the so-called Asian Tiger economies into a deep financial crisis in July 1997 as its current, the baht, came under speculative attack. The IMF arranged a $17.2-billion international rescue package for Thailand, providing $3.2 billion from its own funds under a program that concluded in June 2000.

IMF directors agreed with a staff appraisal that Thailand has emerged from the Asian financial crisis in a strong position, with a "sizable" current-account surplus and "comfortable" level of foreign exchange reserves,

They forecast that Thailand`s gross domestic product is likely to grow by almost 5% this year and could expand by 4%-5% in 2001, but only if the government can ensure a return of investor confidence.

Emerging markets investors, the IMF said, have sold down Thai stocks and put renewed pressure on the baht, based on predictions of a cooling world economy, rising oil prices and the uncertainty of looming Thai elections.

"Noting the evidence of a weakness of domestic demand, directors observed that the risks to the recovery have increased somewhat," the IMF said.

In addition to external factors and election uncertainty, the IMF said investors are unsettled by "serious concerns" over the pace of corporate debt restructuring in Thailand.

Directors expressed concern "about the slow pace and questionable quality of corporate debt restructuring," that they said stands in contrast to the effective bad debt restructuring seen in the financial sector since the crisis.

"Directors, nevertheless, viewed growth of 4%-5% in 2001 as achievable, provided that there is a return of investor and consumer confidence following the elections, as well as prudent macroeconomic policies and faster progress in structural reforms," the IMF said.

Additionally, while the IMF agreed with the government`s current balance of spending and deficit reduction, directors expressed the hope the new government will move to reduce the level of public debt once the need for fiscal stimulus eases.

By Damian Milverton, [phone]; [e-mail]

[BodyG]

NVDR trading moves ahead

Filed at 12 : 32 pm (THLD time) THE NATION


BANGKOK, Dec 21 (The Nation) -- The Stock Exchange of Thailand`s board of governors approved the establishment of Thai NVDR Co Ltd which would be the first step before the trading of non-voting depository receipts could start.

According to SET President Vicharat Vichit-Vadaikan, the subsidiary would take care of the issuance of NVDRs - the new securities which would pave way for more foreign investment in the Thai stock market.

NVDRs are unit trusts which are a basket of listed securities. This would help foreign investors buy more shares in preferred securities beyond the foreign shareholding limit, as Thai NVDR is a Thai company.

Under the SET board of governors` approval, both Thai and foreign investors can invest in the new securities which would be listed on the stock market. However, each investor`s holding in NVDRs and an underlying security must not exceed 25 per cent. Or he/she would be forced to sell the securities exceeding limit back to Thai NVDR.

Trading in NVDRs might be possible during the first quarter of next year, Vicharat said.

by Siriporn Chanjindamanee

[BodyG]

IMF: Thai economy on track at 5%

Filed at 02 : 11 pm (THLD time) THE NATION


BANGKOK, Dec 21 (The Nation) -- International Monetary Fund (IMF) still believes that Thailand`s economic growth this year would reach 5 per cent.

The statement came only one day after Bank of Thailand`s acknowledgement for the first time that the country`s economic growth this year is unlikey to achieve 4.5-5 per cent as predicted earlier.

"They (IMF`s executive board) were pleased that GDP growth (of Thailand) is likely to approach 5 per cent in 2000, and that inflation remains firmly under control, ..., They also noted that the current account surplus remains sizable and the reserve level is comfortable," according to the IMF`s statement.

The IMF`s executive board has also painted another rosy picture on the Thai economy, saying that they viewed growth of 4 to 5 per cent in 2001 as achievable, given a return of investors and consumer confidence following the elections, purdent macroeconomic policies and faster progress in structural reforms.

The admirable forecast was made despite the fact that they are concerns that the risk of Thailand`s recovery have increased because it is sensitive to a possible deterioration of external economic environment, the political uncertainty, slow pace of debt restructuring and the beleaguered stock market.

To sustain the recovery pace, the IMF urged the next government to speedy implementation of reforms to accelerate corporate debt restructuring and state banks privatisation.

[BodyG]

Baht hit 2-month high

Filed at 12 : 32 pm (THLD time) THE NATION


BANGKOK, Dec 21 (The Nation) -- The Thai baht strengthened sharply to Bt42.26 against the US dollar in the morning trade today, the level unseen for more than 2 months.

Dealers attributed a sharp jump of the Thai currency to the dollar`s overnight plunge triggered by a fall in Wall Street.

In addition, according to them, the baht`s sharp rise was due to stop-loss dollar sales. The next resistance is Bt42.10 per US dollar.

The Thai currency was traded at Bt42.26-Bt42.30 against the greenback, up from Bt42.60-Bt42.70 at the close of trading yesterday.

A dealer of a large bank said that exporters continued to sell dollars, eventually pushing the baht up to Bt43, Bt42.80 and Bt42.50, respectively.

Dealers said that the baht`s sharp rise was also due to the fact that the dollar/baht trading volume was relatively thin.

They suggested currency players to avoid holding dollars for the time being as the greenback is tend to go downward because of a perception of slowing US economic growth.

Players should switch to accumulate the euro instead.

[BodyG]

Wer es noch nicht gelesen hat, hier noch mal der Grund, für den Abbruch der "finanzpolitischen Presseschau":

von BodyG 05.01.01 02:42:15 3812461485 THAI FARM. BK -FGN- BA 10

@Watcher100 und alle die meine finanzpolitische Presseschau gelesen haben!

An meinem Abreisetag vor Weihnachten, war meine Internetverbindung aus unbekannten Gründen plötzlich unterbrochen. Internetzugang und Telefonieren(laut meiner Frau ab nachmittags)war wieder möglich. Deshalb konnte ich auch niemandem vorab ein frohes Fest und nen guten Rutsch wünschen, was ich hiermit nachholen möchte.
Um aber auf den Kern der dubiosen Geschichte zu kommen:
Meine Frau erhielt in meiner Abwesendheit einen Anruf, daß unter dem Nickname BodyG ständig durch Veröffentlichung von Zeitungsartikeln Copyright Verletzungen begangen würden und bei Fortsetzung eine Abmahnung mit erheblichen finanziellen Folgen anstünde.( nicht wörtlich aber so in der Richtung meinte meine Frau, weil sie wohl im Moment des Anrufs auch sehr überrascht war).
Ich bin seit Mittwoch wieder zurück und war mir zunächst auch unsicher, über das Thema jetzt hier öffentlich zu reden.
Zwei Fragén habe ich: Wer kennt sich genau mit Copyright Vorschriften in Sachen von Printmedien und Übernahmen von im Internet zugänglichen Quellen aus?

Wie kann man von einem Pseudonym wie BodyG auf die zugehörige Telefonnummer kommen? Ihr könnt Euch vorstellen, daß meine Frau alles andere als beruhigt war, als ich mit Ihr nach dem Vorfall aus der Ferne telefoniert habe und sie beruhigen mußte.

Nochmals viel Glück für alle Anleger und auch sonst alles Gute von BodyG

PS: An Watcher speziell: Wenn Du Deine Gedanken schweifen läßt und Deine wohlformulierten Texte im Nirwana verschwinden siehst -- keine Bange -- die Ursache liegt einfach darin, daß die Verbindung mit Deinem Provider zwischenzeitlich unterbrochen wurde! Du klickst ganz einfach oben rechts auf _ , somit bleibt Dein Entwurf erhalten, nur noch die Verbindung zu Deinem Provider neu installieren und dann aus der Fußzeile Deinen Entwurf hochziehen, evtl. korrekturlesen und abschicken :-))

So und jetzt zur Gegenwart:

Wednesday, February 7 6:37 PM SGT

Thaksin To Consult Fin Sector Before Finalizing Asset Co
BANGKOK (Dow Jones)--Thai Prime Minister in waiting Thaksin Shinawatra will decide on a strategy for setting up a national asset management company only after consulting key finance sector
interests, a top economic adviser says.

Thaksin, now hammering out the make-up of his cabinet with coalition partners, has not yet decided on the formula or timing for setting up an AMC to buy up banks` nonperforming loans, Somkid Jatusripitak, chairman of the party`s policy committee and a possible finance minister told Dow Jones Newswires.

"We will have a seminar when he`s prime minister, everyone whose involved in this process will be involved in the meeting," Somkid said. "We will get into details then."

Thai Rak Thai included plans to set up a national AMC to help banks clear the burden of nonperforming loans as one of the key pledges in an election manifesto that also promised to deliver farmers a moratorium on interest payments, a THB 1 million fund for micro-credit for every village, health insurance allowing any treatment for payment of THB30, a new bank to support small and medium-sized industries and a bank for the poor.

The platform helped to steer Thai Rak Thai to a runaway

election victory but has raised fears the programs will undermine financial discipline and drive up public debt, already running at close to 60% of GDP.

(MORE) Dow Jones Newswires 02-07-01

0537EST

Natl Asset Mgmt Co Could Cost THB500B

The nonperforming loans of Thai banks at the end of December totaled THB823.3 billion and financial analysts estimate the cost of setting up a national AMC alone could run over THB500 billion.

The next government may decide to set up immediately a national AMC to tackle the bad debts of all banks, Somkid said, but he made clear that is only one option.

An alternative strategy, which he outlined in an interview last month, is to focus initially only on the NPL`s of state banks and banks owned by the government`s bail-out arm, the Financial Institutions Development Fund. Who would be "crazy enough to buy all the bad loans from the private banks?" he queried.

Many of these NPLs are already handled by existing AMCs and the government would concentrate on bringing them under

the management of a single institution, Somkid said.

"As for the private sector side, we don`t want to touch

their AMCs at all," he said "but if they can`t solve their problem and want to join, then we can talk."

Darüberhinaus halte ich es für angebrachter, die Sache mit Watcher in diesem thread weiter zu führen. Bei Winny und MaxRoland will ich damit Unbeteiligte nicht nerven.

Ich bin niemandem zu nahe getreten und erwarte das von anderen ebenso. Watcher100 ist somit für mich, so lange nicht aus der Nummer raus, bis er in der von mir verlangten Weise, eine vernünftige Stellungnahmme abgibt. Mit Punkt,
Aus, Schluß, ist die Angelegenheit nicht beendet. Und Humor dahinter zu sehen und verstehen, scheint mir ein Unding zu sein.

Also Watcher100, nach sieben Tagen sollte Dir doch eine Erklärung möglich sein.

BodyG

[BodyG]

Time for Thailand
Uwe Parpart, Forbes Global, 02.05.01


We predicted nine months ago that Thaksin Shinawatra, the Thai telecom tycoon who heads the Shin Group, had a fighting chance of winning the country`s general election (FORBES GLOBAL, May 15, 2000). Sure enough, he won, by a landslide, on Jan 6. His victory was strongly disapproved of by many foreign newspapers suggesting that Thaksin`s elevation to the premiership was bad for Thailand.


Investors think otherwise. As of Jan. 16, the battered Thai stock market had gained 13%, boosting it to 308, since the election result. Their instincts, rather than those of foreign journalists, could turn out to be correct. And if they are, Thaksin`s election would be a significant buying opportunity in a market that`s trading at 9.5 times cash earnings, compared with 8.1 for emerging Asia as a whole.


When FORBES GLOBAL spoke to Thaksin by telephone on Jan. 16, he was upbeat and keen to remove one big shadow over his impending premiership: his Dec. 26 indictment on charges that he failed to report a portion of his assets in a mandatory disclosure statement after serving as deputy prime minister in 1997.


In the interview he admitted to having done so but said it was an honest mistake. "No one has accused me of having derived any ill-gotten wealth from my government service," he adds. "The issue will come before the proper [constitutional] court, which is not politically charged. I am confident of the outcome and will abide by the judgment."


Investors should, of course, take account of the corruption charge in their assessment of Thai risk. If found guilty, Thaksin could be barred from politics for five years. A verdict isn`t expected for at least a year.


In the meantime, Thaksin plans immediately to pursue policies different from those of the man who lost the election, Chuan Leekpai, the outgoing prime minister. As befits a self-made businessman, Thaksin is a resolute supply-sider. He aims to release the considerable entrepreneurial energy of Thailand by cutting corporate income taxes from 30% to 25% over five years. He also wants to lower the cost of credit to small businesses and provide debt relief to rural entrepreneurs.


Will Thaksin Shinawarta boost the stock market?
Over the past five years these Thai equity funds fared least badly.
1-year
change 3-year
change 5-year
change Fund
size
($mil)
Fund/domicile
Dresdner RCM ASF Thailand/ Dublin -52.7 -38.8 -81.3 26
Dresdner RCM New Tiger Thai/ Bermuda -53.2 -40.8 -79.9 15
Fidelity Funds Thailand/ Luxembourg -55.5 -28.9 -84.9 219
HSBC Thai Equity/ Hong Kong -52.7 -20.5 -79.8 24
JF Thailand/ Cayman Islands -51.4 -32.7 -68.1 111
Templeton Thailand/ Luxembourg -48.0 -10.4 NA 44
Thai Focused Equity Quest Mgt/ British Virgin Islands -21.8 39.6 NA 35
NA: Not applicable.Source: Standard & Poor`s.



To revive near-comatose commercial bank lending, Thaksin aims to transfer the bulk of nonperforming loans still on banks` books—$25.5 billion, 22% of total lending as of November—to a national asset management company. Thaksin hasn`t decided how to pay for it; the issue of zero-coupon bonds is one possibility.


These proposals help explain why many investors are bullish about a Thaksin premiership. Another big reason is his privatization plans. All major state enterprises—including the electricity and telecom utilities—will go on the block. Thaksin claims that his privatization program could transfer $46 billion of state-owned assets into private hands.


His chances of enacting the necessary legislation are good. His Thai Rak Thai (Thais love Thais) party has a majority of seats in parliament. For investors in Thailand, there are risks at every turn. But the upside seems a lot more ample under Thaksin than under his predecessor.



1 of 1



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Wenn also Versand per E-mail angeboten wird, kann ich ja wohl keine Copyrightverletzung begehen :-))

[BodyG]

Charts Show Baht to Shine

SINGAPORE - The baht, which has enjoyed robust gains recently, has more room to rise while the Singapore dollar might soon resume its downward trend, technical analysts said.

The baht is hovering around 42.40 to the US dollar, a strong rebound from its 32-month trough of 44.43 in November. Technical analysts said the currency could reach 42.30 or 42.00 in a week.

"Although it might trade sideways in the immediate term, technical studies point toward more gains. I would say there is more room for the upside than downside," said Winston Tang, technical analyst at Standard & Poor`s MMS in Singapore.

The Singapore dollar, on the other hand, is facing resistance trying to reach 1.7400, with technical analysts predicting it could fall to 1.75 in a week or two.

Analysts said the baht could soon reach 42.00, which represents a 62.8 percent retracement of the dollar`s August 23 - November 21 climb after the 50 percent retracement around 42.45 was broken.

Tang also noted the dollar/baht daily chart showed a symmetrical triangle that had broken to the downside on January 24, indicating the dollar would weaken further against the baht. - Reuters

[BodyG]

ITV fires 24 anti-Shin journalists

Filed at 02 : 30 pm (THLD time)


BANGKOK, Feb 7 (The Nation) -- ITV on Wednesday dismissed 24 journalists who had been involved in the campaign to expose Shin Corporations Plc (SHIN)`s alleged editorial interference following the recent takeover of the television station.

In an abrupt turn of event following a standoff between the iTV management and many members of the editorial staff, Sanchai Teoprasertkul, iTV managing director, fired the journalists, including news announcers Wisarn Dilokvanich and Karuna Buakhamsri, for "spreading lies damaging to the company`s reputation".

Many of those dismissed include journalists and staff members who had been involved in the plan to set up a labour union at iTV.

Wisarn said he and other colleagues who had been dismissed would file a lawsuit with the Civil Court to seek reinstatements on grounds that they had been unfairly treated.

The former news announcer insisted that Shin Corporations owned by prime minister-to-be Thaksin Shinawatra, had interfered with the iTV editorial independence by requiring the television news programmes to give favourable coverage to Thaksin and Thai Rak Thai Party, and minimise or block out negative reports on them.


Thaksin: No role in iTV purge

Filed at 07 : 03 pm (THLD time)


BANGKOK, Feb 7 (The Nation) -- Thai Rak Thai leader Thaksin Shinawatra said on Wednesday he had nothing to do with the firing of journalists at iTV, the television station that his flagship firm, Shin Corporations Plc, holds a majority stake.

Many iTV journalists have been locked in a serious dispute with the Shin Corps after they came out to protest editorial interference in the runup to the Jan 6`s general election.

It was reported that Thaksin had played behind the scene role in ordering the station not to report negative news of his Thai Rak Thai party during the campaign.

ITV has fired 24 members of its editorial staff who had been opposed to Shin`s interference in the station`s news programme.

Das verursacht wohl Stirnrunzeln!

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The maleficent 7: Thailand`s challenges


THE new government of premier-elect Thaksin Shinawatra will face daunting challenges in sustaining Thailand`s recovery. Nophakhun Limsamarnphun looks at some of the suggestions of J Shivakumar, the World Bank`s director for Thailand.

In his new book, entitled Back from the Brink: Thailand`s Response to the 1997 Economic Crisis, Shivakumar and co-author Ijaz Nabi identify seven challenges facing the new government as it tries to address the country`s remaining weaknesses.

"Although Thailand`s recovery is well advanced, a sense of unease remains about its sustainability," they write in the just released book.

"Another round of retrenchments still looms on the horizon. If growth falters in the US, slowing Thailand`s exports, or if supply shocks such as the recent oil price hike are repeated or sustained, the remaining financial and corporate weaknesses could well assume a much larger profile and lead to another confidence lost and growth foregone."

The authors recommend that Thailand provide fiscal stimulus "as and when" needed to sustain growth, adding that the need for fiscal stimulus to fuel aggregate demand and sustain recovery momentum will continue to exist until the private investment climate is fully restored

The debt implications of such stimuli should be monitored regularly.

Secondly, the government must ensure that financial institutions have adequate capitalisation. If the economy continues to grow and interest rates stay low, further recapitalisation and reductions in non-performing loans are likely.

On the other hand, if there is a global slowdown, market-driven fund-raising efforts will falter and the government will have to increase public support for recapitalisation.

Thirdly, NPLs must be further reduced. The authors say a truer picture of NPLs must be given since much of the recently reported reduction is due to the transfer of assets to both private and government asset management companies.

Fourth, the regulatory structure must be balanced with rapid and thorough debt restructuring. On this, the authors suggest that the government should consider an expanded scheme of public support for recapitalisation that provides incentives for financial institutions to take more action.

The incentives would be needed since banks were earlier allowed to delay raising sufficient capital and thus slow their debt-restructuring efforts with corporate clients.

Fifth, the government must encourage voluntary debt restructuring. Debtor-creditor and inter-creditor agreements need to be monitored and enforced scrupulously.

Creditors must be encouraged to pursue court remedies when debtors are uncooperative or when a proposed workout lacks creditor support or otherwise fails to materialise.

The State-owned Enterprises Act should also be amended to facilitate state-owned bank executives to agree to debt-restructuring losses without fear of personal liability. In addition, laws should be amended to facilitate corporate mergers and acquisitions, with tax relief and privileges provided to support this objective.

Sixth, the credit culture, which has been badly damaged by the 1997 crisis, must be strengthened since so-called strategic defaulting has become widespread .

"Thailand`s recent history shows that strategic defaulters have been permitted to plague the financial system free of pressure from legislation, the courts, the press, the public and even the government. This must change."

Seventh, the legal regime for bankruptcy must be reformed due to several major weaknesses. Currently, the system lacks a mechanism for collecting debt or enforcing security interests outside the bankruptcy law.

The absence of foreclosures of mortgages has resulted in creditors seeking the lowest possible threshold for bankruptcy while debtors find no advantage in seeking protection under the bankruptcy law.

Currently, personal bankruptcy, corporate bankruptcy and reorganisation are covered under the same law with a uniform test of insolvency applied to all these cases.

As a result, the courts have adopted a cautious and conservative entry criterion for insolvency that has discouraged debtors to submit voluntarily to reorganisation.

The conservative criterion also constrains debtors from applying for reorganisation because it requires them to admit to insolvency, with all its negative consequences.

Currently, it is also possible that even in a voluntary case, a corporate debtor may lose total control of management as well as the process of preparing a reorganisation plan. Shareholdings of family-owned corporations could become heavily diluted, thus adding more deterrents to voluntary reorganisation.

To ensure that the current, market-led debt restructuring would continue to work, the authors recommend that personal insolvency be separate from corporate insolvency and reorganisation. Furthermore, the test of insolvency should be redefined as the inability to pay debts as they fall due, rather than the current asset-and-liability test.

Laws should also be revised to allow a debtor to maintain some powers of corporate management regardless of whether the debtor`s management is the planner or the plan administrator.

Debtors should also be allowed to remain involved in planning the reorganisation even if their nominee is not the planner.

BY NOPHAKHUN LIMSAMARNPHUN

The Nation

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Sacked journalists to take battle to courts


TWO senators criticised iTV management yesterday for violating press freedom while 23 iTV staff members who lost their jobs vowed to wage a legal battle for reinstatement.

The station`s management, dominated by Shin Corporations Plc, which was founded by prime minister-elect Thaksin Shinawatra, abruptly terminated their employment contracts, citing gross misconduct for showing hostility and dissent.

Before their dismissal, the crewmembers were strongly critical of what they called Shin Corps` editorial interference.

Senator Chirmsak Phinthong expressed regret at the dismissal, saying the station`s management might have violated two constitutional provisions, Articles 39 and 41, on press freedom. Shin Corps is trying to manage the independent television station as a profit-seeking business and has ignored journalistic standards, Chirmsak said.

"Journalism-related businesses can not be managed like other businesses," he said. "I don`t think the present management of iTV knows what constitutes editorial interference." The parliamentary ombudsman and the PM`s Office, which supervises iTV, should quickly intervene to resolve the problems of press freedom at the station, he added.

iTV is facing a structural problem caused by the incompatibility of the management`s goals and the station`s charter as an independent news provider, said Senator Sophon Suphapong, who urged Shin to dump its major stake in the station.

The Thai Journalists Association expressed concern that the conflict between the management and news crews represented a state of press intimidation by capitalists trying to further their political and business interests.

The association pledged to launch an investigation to determine whether the station`s management had violated press freedoms by firing the 23 news workers.

Thaksin said he was not in a position to comment on a management decision for staff dismissals. He also denied having links with the station management.

iTV station managing director Sanchai Tiewprasertkul claimed that the staff cutbacks were in line with a station restructuring policy. Sanchai said that seven news crew members had been fired for misconduct, citing internal investigation findings that the dismissed staff had defamed the station and undermined its credibility. The other 16 news staffers were laid off because of the downsizing, Sanchai said, noting that 29 had been made redundant before the editorial interference allegations.

Sanchai said the station restructuring was complete, adding that the 16 staffers represent the last batch of layoffs. But the 23 staff members cited union membership and criticism of management as additional reasons for their dismissal.

Noting that all 15 executive members of the newly formed iTV union were made redundant, they said they would file lawsuits against station management through the Labour Court (unfair job termination and reinstatement), the Constitution Court (violations of press freedom) and the Civil Court (damages).

BY BENJAWAN SOMSIN

The Nation

Das könnte schon ein Problem werden!

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Where`s the fish, ask customers


FEARS about mad cow disease have prompted supermarket operators and restaurants to cut back on their imports of European beef and switch to other international suppliers or local producers.

Tops Supermarket has decided to pull several imported products from its shelves.

The company`s chief operating officer, Randy Guterry, said in a statement yesterday that Tops was in constant communication with Thailand`s Food and Drug Administration regarding the import of certain products into Thailand.

A source at another supermarket operator, Villa Market, said the company had stopped importing milk, cheese and beef from Europe last year.

The beef currently sold in Villa Market`s outlets is imported from Australia and procured locally.

Mad cow disease first appeared in Europe in 1991, and has been attributed to the use of meat and bone meal in cattle feed. Many scientists believe humans may catch an equivalent form of the brain-wasting disease, new variant Creutzfeldt-Jakob disease (vCJD), through eating infected beef. At least 80 people in Britain and two in France have so far died of vCJD.

In Bangkok, several luxury hotels and restaurants in Bangkok said they were importing their beef from Australia and the US amid signs of concern from their customers

"Some of our customers have dropped beef and are choosing fish instead," said the captain of the Hilton Hotel`s Ma Maison restaurant in Bangkok.

He said other customers said they felt more comfortable eating beef from Australia and the US.

The Holiday Inn Crown Plaza hotel said it had stopped importing beef some time before the latest reports about the spread of the disease.

The Sukhothai Hotel on Sathon Road also said its imported beef came from the US and Australia, and not Europe.

Many of Bangkok`s leading hotels have traditionally imported beef from Australia because it is closer to Thailand, a spokesperson for the hotel said.

The Le Meridien`s Italian restaurant, Matteo, is another that imports its beef from Australia.

"It became noticeable about two days ago that customers began asking about the origin of our imported beef. They seemed reassured after knowing that our beef is from Australia," a worker at the Matteo said.

Local steak houses are also insisting their beef comes mainly from the US, Australia, New Zealand and health-certified farms in Thailand.

Chai Bulakul, executive director of Chokchai Ranch Group, said 80 per cent of the company`s beef is domestically produced. The company`s two major suppliers include Kasetsart University`s Kampaengsean campus and a livestock cooperative in Kamphaeng Phet. The hygiene quality of these two production sources has been certified. Moreover, the animal feed used at the farms is also domestically produced.

"The company can check back records of every cow and farmer in case of any problems as part of the health guarantee," he said.

The group operates steak houses under its owned brand name, Chokchai Steak House.

Chai added that only 20 per cent of its beef is imported from the US.

"We have imported beef from the US for more than four decades," he said.

To ensure safety standards, the company holds in-house seminars every 3-4 days in order to update its employees with the latest information.

Chai said that customers were questioning staff about its beef and mad cow disease. The disease, however, has not yet affected the group`s sales.

Suwanna Limtipayasak, marketing manager of 13 Coins Restaurant, said all of its beef is imported from Australia and New Zealand. Total imports are about 200-300 kg per month including New York beef and T-bone steaks.

"We import beef only from hygiene-certified farms to ensure food security," she said, adding that customers had not asked about the source of the company`s beef.

BY BUSINESS REPORTERS

The Nation

Aber, aber liebe Fleischesser in Thailand, ist Euch eigentlich bekannt, wieviel britisches Tiermehl eingeführt wurde??

Zum Thema Fisch kommt später was!

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Govt plan stalls NPL deal


A PLAN to have Sukhumvit Asset Management Co`s assets managed by groups of private professionals may be scrapped if the new government proceeds with a plan to transfer state-owned non-performing loans (NPLs) to a national asset-management company (AMC).

Chaktip Nitibhon, assistant governor of the Bank of Thailand, yesterday said the planned signing of contracts between Sukhumvit Asset Management and three groups who had won bids to manage the firm`s assets had been delayed.

Chaktip said the delay was due to uncertainty over the new government`s proposed national AMC. If NPLs from state-owned lenders, including Sukhumvit Asset Management, are to be bought by the national AMC, the deal with private asset managers will be reviewed, he said.

"Our plan is flexible. We`ll have to wait until details of the AMC are released, as the Financial Institutions Development Fund [FIDF] is subject to the government`s policies. We won`t be signing anything just yet," Chaktip said.

Earlier, Somkid Jatusripitak, a key figure on the ruling Thai Rak Thai Party`s economic team and widely tipped as the next finance minister, said the plan was to transfer NPLs from state-owned institutions prior to those held by private lenders.

However, details of the national AMC have still not been outlined.

Sukhumvit Asset Management, a wholly owned subsidiary of the FIDF, was established last May to purchase and manage a portfolio of NPLs from Krung Thai Bank and the now-defunct First Bangkok City Bank (FBCB).

Under Krung Thai Bank`s restructuring programme, Sukhumvit Asset Management received 8,032 individual NPLs, sub-performing loans and performing loans worth a face value of Bt521 billion.

The original plan was for Sukhumvit Asset Management to select qualified asset managers to resolve its portfolio by this month. It recently selected three groups of managers from among 16 bidders, though the names have yet to be disclosed.

The three groups would manage seven of its eight pools of assets. The eighth pool was excluded from the scheme because it consists mostly of assets that are the subject of court proceedings. According to Sukhumvit Asset Management, at least 89 per cent of total assets in the eighth pool had been received by the courts, compared to an overall average of 20 per cent.

Krung Thai Bank, a Thai commercial bank majority-owned by FIDF, took over the assets and liabilities of First Bangkok City Bank in November 1998 under the terms of the government`s bank rescue package.

BY ANOMA SRISUKKASEM

The Nation

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These loans can`t wait


THE level of non-performing loans in the state-owned Sukhumvit Asset Management Co Ltd is too high to wait for the establishment of a national asset management corporation.

The new government should not allow the resolution of the assets held by Sukhumvit Asset Management Co Ltd (SAM) to be further delayed by transferring them to the yet-to-be established national Asset Management Corporation (AMC).

Yesterday, Chaktip Nitibhon, assistant governor of the Bank of Thailand (BOT), said a plan for SAM to have its own asset managers would have to wait until the new government unveils its national AMC policy.

Somkid Jatusripitak, a key figure on Thai Rak Thai party`s economic team, recently said the coalition government would launch the first stage of its plan for non-performing loans held by state-owned AMCs. The national AMC, one of several key populist policies of the Thai Rak Thai, is not expected to be set up until six months after the new government is sworn in.

Such a long wait will only accelerate the deterioration of SAM`s assets. The NPLs at SAM, which is in the process of finding managers for the assets, should be dealt with once the staff are in place.

Chaktip, who is also the manager of the Financial Institutions Development Fund (FIDF), which owns SAM in full, said three of SAM`s asset managers had been chosen already but declined to name them.

As a state-owned entity the FIDF must listen to the new government. But SAM`s assets can not afford more wasted time. So, the new government should allow SAM to manage its own assets with professionals.

According to SAM documents from November, SAM`s total portfolio of Bt521 billion is divided into eight pools, each with unique characteristics. Four of the pools consist of large loans with an average outstanding principal balance (OPB) of Bt611 million to Bt948 million. The other four pools consist of smaller loans with an average OPB of Bt15-36 million.

At least 88 per cent of the total assets are loans that have not performed for more than 12 months. While that figure is high now, imagine what it will be six months from now. Furthermore, only 58 per cent of SAM`s portfolio was backed by collateral, based on Krung Thai Bank`s (KTB`s) latest appraisal. Using the BOT`s provision rules, that figure is only 34 per cent. Of the collateral, property accounts for as much as 92 per cent.

Only a handful of industries - wholesale and retail, construction and real estate, and the import/export industry - account for 82 per cent of the outstanding balance. SAM was established in May last year to purchase and manage NPLs that were held by KTB and the now-defunct First Bangkok City Bank (FBCB).

SAM was set up as part of the restructuring plan for KTB. It was the first AMC to assume such a massive amount of NPLs from a bank. The aim was to remove the bad loans from the bank, leaving it with a cleaner balance sheet. The NPLs from KTB were transferred to SAM in September last year. According to the current plan, a half trillion of bad loans would be separately managed by three groups of asset managers, which undoubtedly are those with international expertise.

So far, several names of bidders had been reported. Most of them are alliances of local financial institutions with foreign experts. With these professionals and restricted terms of agreement to be signed between SAM and asset managers, SAM`s NPLs are expected to be managed with efficiency. Though the bad loans of SAM seems to be hard to manage as most of them are loans which were not perform for more than 12 months. But the time frame and incentives to be signed between SAM and asset managers will help speed up the process. The contract will take three years of maturity at the initial stage and could be extendable year to year. The jury is still out on whether the national AMC is the ultimate answer to the huge NPL problem - particularly given the possibility of asset deterioration and whether the new entity`s efficiency would be worth its cost. So when it comes to cases such as SAM, why wait?

BY JIWAMOL KANOKSILP

The Nation

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Zusammenfassung des Börsentages gestern, in deutscher Sprache, als Link, da ich mir über das Copyright nicht im Klaren bin:

http://de.biz.yahoo.com/010207/126/1bu6n.html

Entgegen der hier, im Asien- und im Sarge-Board geäußerten Meinungen, scheint sich BBL doch zu behaupten.

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Also nochmal an alle passiven Leser!
jeder, der einen interessanten Beitrag in den Medien gefunden zu haben glaubt, den ich nicht publiziert habe, möge ihn doch bitte hier reinstellen. Man kann als Einzelperson nicht immer alles in den Medien aufspüren. Glaskugel- und Strichezieher-Weisheiten, finden Ihr Echo schon in genügend vorhandenen Threads, das muss also hier auch nicht sein.

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Wegen Feiertag in Thailand heute keine Notierungen des SET

ASIAN BANK`S CONDITIONS
Corruption could affect loans from ADB
It will assess if borrowers have good governance

MANILA - Serious corruption problems in Thailand, Vietnam and other Asian countries could affect their chances of getting concessional loans, an Asian Development Bank official has said.

Starting this year, the Manila-based bank said it would start assessing whether Asian countries practise good governance as an important criterion for granting much-needed low-interest loans.

`Countries that are better performers in governance and other development indicators are going to get more, and countries that are worse performers will get less,` said Mr Clay Wescott, an ADB expert on public administration.

This approach is aimed at encouraging governments to effectively administer programmes to benefit the region`s poor, he said on Tuesday, speaking to other ADB officials at a press conference on the sidelines of a regional conference on poverty.

The ADB has recently completed assessments of Thailand, Vietnam, Cambodia and Laos, and is finishing studies on Bangladesh, Nepal and Pakistan.

Although Thailand, Vietnam, Cambodia and Laos have made inroads in uplifting their economies and improving governance, the bank found that problems such as corruption remain serious.

`The systems are simply not in place to prevent discretion on the part of government officials to promote transparency and openness of information, and to prevent monopolies,` said Mr Wescott.

While all four have made anti-corruption efforts, much more needs to be done, he added.

He pointed out that Cambodia has made a very important turnaround in terms of establishing peace and security for an expanding economy.

`If reforms are put in place, there would be a significant payoff to Cambodia in terms of much stronger economic growth,` he said.

The ADB may undertake an assessment of the Philippines this year, he said, while adding that the country`s serious corruption problem is well known. --AP

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Die URL von The Straits Times, Singapure ist:

http.//straitstimes.asia1.com.sg

unter Browse the headlines S-E ASIA

findet man folgende Artikel:

Infidelity figures shock Thai women

sowie

Casual sex bad for Thai brothels


In den Copyright-Bestimmungen wird sogar eine direkte Verlinkung untersagt. Frage an die Fachleute: Ist das zulässig?

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Aus der Nation von heute:

How the voting will work


THE House of Representatives` historic vote to elect the prime minister today will go through the following process:

lThe House speaker appoints a vote-counting panel.

lMPs nominate candidates for the post. Each nomination must be endorsed by at least 100 MPs.

There are three means of voting:

1. MPs use electronic cards. This method is unlikely to be chosen, as it does not immediately show voters` identities.

2. MPs mark ballots. This method is also unlikely to be used.

3. MPs are called alphabetically to name their choice. This is the method many expect to be used today.

lHouse Speaker Uthai Pimchaichon and Parliament secretary-general Sirilak Panbamrungkit seek an audience with HM the King to present the winning nomination.

lThe royal command appointing the new prime minister is handed down.

The Nation.

LAST MODIFIED: Thursday, 08-Feb-01 12:11:13 EST

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Ensuring stability


THE Constitution has three mechanisms to ensure that the government is stable and the prime minister`s status is maintained.

Firstly, the constitutional requirement that MPs resign their parliamentary posts before taking up a Cabinet position makes them cautious since they risk being jobless should the premier decide to sack them.

Under the previous law, MPs assuming Cabinet post could retain their House seats, and return to them if sacked from the Cabinet.

Secondly, the Constitution stipulates that at least two-fifths of Parliament, or 200 MPs, are required to initiate a no-confidence motion against the premier. Therefore, it is unlikely, for example, that the opposition bloc led by the Democrat Party, with about 160 MPs, will be able to defy Thaksin Shinawatra`s mandate.

The last constitution required only one-fifth of Parliament, or 100 MPs, to launch a no-confidence debate against the prime minister.

Furthermore, the Constitution also requires that a new candidate for prime minister be nominated once a no-confidence motion is submitted against the sitting prime minister.

The Constitution also bans the submission of a no-confidence motion against the entire Cabinet, but allows the opposition to individually initiate a censure debate against a minister. - OPAS BOONLOM, The Nation.

LAST MODIFIED: Thursday, 08-Feb-01 12:11:09 EST

Diese Mehrheitsveältnisse hat er durch Koalitionsaussage bereits am Wahltag eingeleitet.

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S-One`s future looks murky


ALTHOUGH KGI Securities One Plc`s (S-One) internal struggle has been settled, investors should still steer clear due to the firm`s uncertain direction and the industry`s tough competition, analysts said.

The conflict ceased after former chief executive officer Pakhawat Kovithvathanaphong and aides Kampanart Lohacharoenvanich and Kanitha Subpa-asa resigned. But scepticism remains about whether KGI S-One will still be the main force behind the group`s Asian expansion, said analyst Adisak Kammool of Phillip Securities (Thailand).

The conflict between the former Thai management team and Taiwan`s Koos Group, S-One`s majority shareholder, broke out last year after the latter announced its intention to switch the group`s expansion focus from S-One to KGI International Holding. The proposal is not final, as it needs shareholders` approval at a March 8 meeting.

S-One`s share price jumped 131 per cent - outstripping its peers - on the strength of improved market sentiment and the resignations.

"S-One now feels less heat from the deregulation of commission fees than do other local brokerage houses because it has massive income from offshore investment. Without overseas revenue, S-One would be in difficulty situation due to continuing shrinkage of market share here," Adisak said.

The securities house was the number one brokerage house in terms of trading volume in 1997 and 1998, but its ranking slipped to second and then sixth in 1999 and last year, respectively. It ranked seventh last month.

Additionally, the industry was in the process of restructuring, mainly due to the changes in brokerage fees, Adisak said, adding that the process would take at least another 9 to 15 months. The average commission fell by half from 0.5 per cent to 0 to 0.2 per cent of transaction value as a result of the deregulation, which was implemented in October.

"If daily trading volume stands at Bt5 billion, only the top five brokerage firms still enjoy profits. If the volume reaches Bt8 billion, all brokerage houses will survive. So, we estimated that brokerage firms will suffer in the red in the future," he said.

BY ORANAN PAWEEWUN

The Nation

LAST MODIFIED: Thursday, 08-Feb-01 12:27:47 EST

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Bridging the Gap

--------------------------------------------------------------------------------

Lessons from a cow
Think before scolding staff


Kriengsak Niratpattanasai


Among the Thai parables that relate to managing people in business, I think Ko Nantavisal (Nantavisal the cow) is one of the good examples in managing Thais.

Many Thai colleagues have mentioned this several times when frustrated by the boss`s manner, particularly his or her choice of words.

Most of these colleagues said: "I am Ko Nantavisal. If my boss was just nice to me I would work so hard."Once you understand the story, you will see what they are driving at; it`s a story we learned as children. A long time ago, when animals were able to communicate with humans, there was a poor farmer living in a village. He owned one cow, Nantavisal. He took good care of the cow, which he treated like his own son.

One day, Nantavisal wanted to reciprocate the kind treatment and told the farmer: "Boss, do you know my secret? I can pull 100 carts laden with goods. I don`t think many people realise how strong I am. Why don`t you go and bet with the rich man in the village. He loves gambling."The farmer was surprised but he took Nantavisal`s advice and approached the rich man, who agreed to make a bet. On the betting day, there were lots of people in the village to witness the event. Nantavisal started to pull the 100 carts. It took a while and the carts moved slowly.

The farmer was a bit nervous and thought that Nantavisal might not be able to do what he had promised. He angrily shouted at Nantavisal: "You are a lazy cow, lift your effort. I have wasted a lot of food feeding you."Nantavisal was so upset that he shed the ropes that tied him to the carts and ran away.

In the evening, Nantavisal trudged back to farm. He saw the farmer crying over the lost bet. Nantavisal felt guilty and wanted to make amends. He told the farmer to make another bet. "This time double the amount," said Nantavisal. "But one more thing that I beg of you, please do not say any rude words to me; let me handle the work."Listening with hope, the farmer replied shakily: "I will, I will, my son."The rich man was keen to make the new bet. The next day, there was a bigger crowd than for the first event. A minute before the cow was to start pulling the carts, the farmer whispered to him: "Nantavisal, my dear son, please put all your effort into pulling these carts. I pin my hopes on you."Nantavisal had not been expecting the kind words; they gave him additional strength. With all his effort, he pulled the carts, starting slowly, for the required distance. The farmer got his money back and more. Nantavisal and his boss were happy.

When you decide to shout at your subordinates, perhaps remind yourselves about Nantavisal and look for better ways to take corrective action.

Kriengsak Niratpattanasai is vice-president for sales and service management at DBS Thai Danu Bank, and has over 20 years of experience in cross-cultural management issues at various multinational companies. He can be reached at [e-mail].

Quelle: Post 9.2.01

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Emerging Markets Undervalued, SET to Rebound: Templeton

AMONG emerging markets, the Stock Exchange of Thailand (SET) has the highest potential to stage a major rebound, said Mark Mobius, managing director of Templeton Asset Management, one of the largest mutual fund management firms in the world.

In a meeting with reporters in Singapore on Wednesday, Mobius said his funds were heavily exposed in Thailand.

"The Thai market has been beaten down for so long É You have got to pick the ones that are beaten down the most, and that would be Thailand, Indonesia, and the Philippines. Those are the ones that have tremendous upside," said Mobius.

He said his funds in Thailand had returned investors about 9 percent in recent months.

Mobius also said emerging markets` currencies and stocks are undervalued.

"Currencies in emerging markets are still very much undervaluedÉ The valuations of price to earnings, price to book value, whatever you want to use, valuations in emerging markets are at all-time lows in many cases, or, at the very least, at very big discounts to the US market," said Mobius.

On Thailand, Mobius said he was not comfortable with the pace of restructuring of the corporate sector and non-performing loans (NPLs).

"In the case of Thailand, there`s not really as much restructuring going on. But there`s been a lot of pain. And corporate governance is now - they`re being thought about a lot more seriously," said Mobius.

While citing specific problems in emerging markets, such as Thailand`s restructuring efforts, Mobius also said confidence in emerging markets was returning.

"The most important indicator of emerging markets confidence is the yield spread, the spread between emerging markets volume and the US treasury rates. And we`ve seen that yield spread come down dramatically in the last five years É And that is a very good sign that confidence in emerging markets is returning," said Mobius.

Mobius said despite the fact that at some periods the US equity market outperforms emerging markets, over the long term, emerging markets outperform other markets.

"I think that will still hold true going forward," said Mobius, "as a dedicated emerging market investor who`s willing to put money in on a dollar cost value and basis, you should do better in emerging markets than you would otherwise." - Bloomberg

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Abschlussbericht SET Freitag 9.2.01 (in deutscher Sprache)

Seltsamerweise konnte BBL-F gegen den Trend heute plus 4,55 Prozent zulegen

http://de.biz.yahoo.com/010209/126/1c0d1.html


So, dann wünsche ich allen Lesern ein schönes Wochenende.

Montag geht es dann offiziell weiter mit meiner finanzpolitischen Presseschau.

alles was bis dahin erscheint, hat nur mit WATCHER100 und mir zutun.

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Monday, February 12 10:30 AM SGT

Analyst Poll: Stock Calls To Start The Week In Thailand
BANGKOK (Dow Jones)--Here`s the advice of stock professionals surveyed in Thailand Friday on stocks to buy and sell for the current week.
Merrill Lynch Phatra Securities, analysts.

BUY: Bangkok Expressway PCL (H.BEX) - price THB9.60 ($1=THB42.539). Traffic is showing steady growth, up 6.5% on-year in January. Debt refinancing and early loan payment are planned following the debt rescheduling in January 2000 and interest rate reduction in December. With further progress in restructuring, the share price could rise to discounted cash flow value of THB17.

BUY: Siam City Cement PCL (H.STY) - price THB119. The company`s ongoing debt reduction plan should continue to increase value per share in the intermediate term, despite slow demand growth amid an economic slowdown and planned cutbacks in government infrastructure spending.

SELL: None

ABN Amro Asia Securities, analyst.

BUY: None

SELL: Charoen Pokphand Foods PCL (H.CPF) - price THB42.50. The benefits for revenue of a mad-cow windfall in chicken sales have been nullified by a contraction in demand for shrimp. The company`s U.S. unit is expected to report more than $20 million in losses for 2000, and to continue losing money this year. The handling of the acquisition of a stake in a local mobile phone unit, involving the planned transfer of shares in the mobile unit to CP`s fixed-line unit at an excessive price, still weighs on sentiment.

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Monday, February 12 2:30 PM SGT

Thai Shrs Dn Midday; Wall Street`s Losses, Cabinet Lineup
BANGKOK (Dow Jones)--Thai stocks are down 1.8% midday Monday in line with Wall Street`s losses Friday, led by falls in most blue chips, analysts said.
Concerns over the Cabinet lineup, expected to be officially released early this week, is weighing on sentiment, they said.

The Finance Minister post is the major focus, with the frontrunner appearing to be Somkid Jatusripitak, a senior member of Thai Rak Thai Party`s economic team.

The Stock Exchange of Thailand index is down 5.92 points, or 1.8%, at 318.80. The blue-chip SET 50 index has shed 0.48 point, or 2.1%, to 22.75.

Volume is relatively thin at 376.1 million shares worth 2.86 billion baht ($1=THB42.571) compared with 1.19 billion shares at THB8.68 billion Friday.

Decliners outnumber advancers 147 to 30, excluding shares traded on the foreign board.

On Friday, the Dow Jones Industrial Average closed 0.9% down at 10781.45 points, while the Nasdaq Composite Index ended down 3.6% at 2470.97 points.

"It is almost certain that Somkid will become the Finance Minister and the market doesn`t really appreciate that. Investors prefer to see someone with a higher profile taking the post," said an analyst at a foreign brokerage.

Somkid, one of key drafters of Thai Rak Thai`s economic policy, is largely perceived as a respected academic but lacking management and political experience, analysts said.

The SET Index is expected to stay in the red in the latter session, but within a tight range of between 318 and 325, said Achara Ob-ai, an analyst at BNP Prime Peregrine.

Most key sectors are lower. The banking and finance sectoral indexes are losing 2.8% and 5.2% respectively.

A new round of domestic interest rates cut, announced late last week by several banks, is expected to benefit the equity market in the long term but no immediate effect is foreseen, analysts said.

Thai Military Bank is down 3.4% at THB8.60 and National Finance has dropped 4.4% to THB8.80.

Hana Microelectronics lost 2.2% to THB88 and Siam Cement is down 1.3% at THB306.

Cogeneration has retreated 5.9% to THB12 after the company reported a huge net loss of THB1.56 billion for its six months ended Dec. 31, 2000 against a loss of THB190.2 million over the same period the year before.

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Monday, February 12 8:05 PM SGT

Thai PM Thaksin "Uneasy" With Banks` Low Deposit Rates
BANGKOK (Dow Jones)--Thailand`s new Prime Minister Thaksin Shinawatra said late Monday he felt "uneasy" with the unusually low deposit account interest rates offered by Thai commercial banks and that he would seek ways to address the situation.
"Something must be done," he said, but didn`t detail a plan.

Thaksin`s comments came as most Thai banks announced rate cuts of 25 to 50 basis points, bringing rates to new historic lows. Some banks only cut their savings and deposit rates but left loan rates unchanged to improve profitability in the prevailing low loan growth environment.

The cuts came as Thaksin is setting up his Cabinet, a process due to be completed by the end of the week.

Thaksin said that the low rates on the deposits side were penalizing the general public.

Merrill Lynch Phatra Securities and ABN Amro Asia Securities, however, were among research houses expressing the nearly unanimous view that Bank of Thailand`s recent call for lower lending rates represents sound policy. Even if it means lower deposit rates, it`s good news for the banking system, they said separately.

The central bank`s low interest rate policy is designed to keep bank funding costs low, and to support economic growth and restructuring of the country`s huge bad debt burden.

But the policy keeps liquidity very flush at commercial banks. Growth in deposits continues while total credit shrinks as bad debt are written off the banks` books.

Thaksin also said he would meet the Thai Bankers Association Friday to discuss the overall economic situation and his Thai Rak Thai party`s policies.

(MORE) Dow Jones Newswires 12-02-01

1204GMT

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Asia Markets Shares Close Broadly Higher Feb 12, 2001
A round-up of Asian stock markets for Feb 12, 2001 prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, Feb 12 Asia Pulse - Asian share markets closed broadly higher today as investors shrugged off the weak performance of Wall Street on Friday night to focus on domestic issues.

Korean shares rose for the third straight day Monday on heavy buying by foreigners and institutional investors amid sharp falls in money market rates.

The benchmark Korea Composite Stock Price Index (KOSPI) edged up 3.73 points, or 0.6 per cent, to close at 599.20.

Australian shares gained 0.5 per cent on investor interest in News Corp and select blue chips, brokers said.

The All Ordinaries index rose 15.8 points to close at 3,277.1 while the SP/ASX 200 index gained 17.9 points to 3,330.3.

In Kuala Lumpur, shares edged up 0.1 per cent in slow trade in the absence of fresh leads, dealers said.

The KLSE composite index rose 0.77 points to finish at 725.58.

Singapore share prices climbed 0.9 per cent on selected buying of banking stocks, dealers said.

The Straits Times Index added 16.81 points to close at 1,990.18.

In Manila, share prices finished 0.9 per cent firmer on positive investor sentiment following a half percentage point rate cut by the central bank, dealers said.

The Philippine Stock Exchange composite index rose 16.47 points at 1,712.06.

Elsewhere, Hong Kong share prices tumbled 1.1 per cent after losses on Wall Street at the end of last week and concerns over the US economy, dealers said.

The key Hang Seng index lost 180.17 points to close at 15,693.11.

Jakarta shares slipped 0.8 per cent as political concerns continued to dampen sentiment.

The JSX Composite index shed 3.449 points to close at 424.465.

Bangkok plummeted 2.01 per cent as investors locked in profits in banks and finance firms, dealers said.

The Composite SET index lost 6.52 points at 318.20 points.

The market in Tokyo was closed today for a national holiday.

MONDAY INDICES:

* SYDNEY - All Ordinaries 3277.1 (up 15.8 points)

* HONG KONG - Hang Seng 15,693.11 (down 180.17 points)

* SEOUL - Composite 599.20 (up 3.73 points)

* TOKYO - closed

* MANILA - Composite 1,712.06 (up 16.47 points)

* SINGAPORE - STI index 1,990.18 (up 16.81 points)

* JAKARTA - Composite 424.465 (down 3.449 points)

* KUALA LUMPUR - KLSE index 725.58 (up 0.77 points)

* BANGKOK - SET Index 318.20 (down 6.52 points)

(C) Asia Pulse Pte Ltd.

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Schlussbericht Boerse Thailand(Deutsch):

http://de.biz.yahoo.com/010212/126/1c65t.html

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SHROFF: THAILAND

Connectivity Play


--------------------------------------------------------------------------------

By Shawn W. Crispin

Issue cover-dated February 15, 2001 FEER


--------------------------------------------------------------------------------

Since the January 6 election, investors have been snapping up shares in the Shin Corp. group founded by telecoms tycoon Thaksin Shinawatra, Thailand`s newly elected prime minister. As of February 6, Advanced Information Services shares gained nearly 13%, Shin Satellite jumped 8% and Shin Corp. rallied by over 17%.

Combined, Shin and its subsidiaries` market capitalization picked up nearly 13%, or nearly 20 billion baht ($470 million), since the election--easily recouping the 105 million baht Thaksin`s wife, Pojamarn Shinawatra, contributed to Thaksin`s Thai Rak Thai party`s election campaign. (As required by Thai law, Thaksin presently holds no shares or management positions at Shin; his wife, son and brother-in-law maintain a controlling 53% stake in the company.)

Nearly all Bangkok-based stock analysts have Shin stocks at or near the top of their `buy` and `accumulate` lists. Most base their high ratings on management and money: Unlike most Thai firms, Shin had the prescience to hedge nearly 80% of its foreign-currency exposure before the baht was devalued in 1997, making Shin one of the few cash-rich companies in the country.

Since then, it has gone on a technology-acquisition spree, upgrading its digital networks and acquiring local firms with synergy potential, while its chief rival, Total Access Communications, has languished under sharp curbs on new spending as part of its debt-restructuring agreement with creditors.

"Shin`s earnings growth potential is fundamentally strong," says Kenneth Ng, head of research at ING Barings in Bangkok. "It also helps that they are politically connected," he adds. Indeed, the timing of the recent share-price spurt suggests local punters believe Thaksin`s political position will, either directly or indirectly, benefit Shin`s near-term fortunes.

"The market expectation is that the new government will concentrate more energy on reforming the telecommunications industry," says Richard Moe, director of regional telecoms research for S.G. Securities in Bangkok. But reform lies in the eye of the beholder. Thaksin`s government has announced its intention to scrap the outgoing government`s plans to establish a competing 1,900-megahertz mobile-phone network, to make fiscal room for the party`s populist election-campaign promises. That budget cut effectively eliminates one of the two recent newcomers to Thailand`s duopolistic mobile telephone market, further narrowing the already-thin competition in the local mobile-telecoms market.

But what`s given telecoms stocks like Shin the biggest boost is the market`s belief that the new pricing of concessions and revenue-sharing agreements between the government and telecoms companies will finally work in favour of private operators. The outgoing cabinet had decided that concessions should be revenue-neutral.

Operators have been asking for a `haircut` price due to their debt-restructuring woes and the fact that potential new entrants would gain a competitive advantage without the burden of revenue-sharing arrangements with the government. The influential and independent think-tank, Thailand Development Research Institute, released research suggesting concessions should be priced higher than most private operators are willing to pay.

The yet-to-be-established telecoms regulator, the seven-member National Telecommunications Commission, will rule on the pricing of concessions, the allocation of new frequencies and anti-competitive behaviour in the market. The independence of the new body is already in doubt due to a murky selection process that seems destined to favour private interests over public ones.

Yet investors may be overestimating the value of Shin`s political `connectivity.` Following Shin`s purchase of a stake in Thailand`s only independent television station, iTV, a public outcry over allegations of political strong-arming of its editorial policy during the election season eventually forced iTV`s management to put its shares up for sale on the open market last month. Any perception that liberalization favours Shin Corp. over local competitors will probably be met with howls of protest from the press and competitors. "Thaksin will have to appear even-handed," says Moe of S.G. Securities.

But analysts believe Thaksin`s government will enact policies that favour incumbent domestic telecom players--particularly Shin and TAC--at the expense of potential new international competitors. In particular, they think the allocation and pricing of new-frequency licences could be subject to political meddling.

With Shin`s present market lead and comparatively strong cash position, it would stand to gain disproportionately from the erection of new market barriers. Thailand`s mobile market has international appeal--penetration rates in Thailand are still only 6%, lower than in both the Philippines and Indonesia, countries with lower average per- capita GDP. That`s because until recently Shin Corp. had monopoly rights to handset sales, which effectively kept prices high and out of reach for the majority of Thais. Unfortunately, what`s good for telecoms investors may not be what`s best for Thai telecoms consumers.

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Finanznachrichtenuebersicht 13.2.01 Thailand

http://asia.biz.yahoo.com/news/regional/thailand.html

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Investors Hope For Soothing Greenspan Testimony

NEW YORK - Investors are hoping Alan Greenspan`s convoluted "Fedspeak" will translate into love poetry for stocks, as the Federal Reserve chairman`s US Senate testimony tomorrow will set the market`s tone this week.

The Fed chairman`s Capitol Hill appearance -- on Valentine`s Day eve -- tops a busy week of economic news, and don`t expect the recently rocky relationship between investors and equities to heat up, despite the traditionally amorous holiday.

Last week, technology stocks were abandoned after negative outlooks from Cisco Systems and Motorola, among others.

The prior five trading days saw the Nasdaq composite index fall 6.4 percent, its worst weekly decline since mid-December, making the index virtually flat so far this year, down just 3.1 points for 2001. The Dow Jones Industrial average fell about 79 points last week, less than 1 percent. The blue-chip gauge is also virtually unchanged since the beginning of the year, starting the week a mere 9.5 points lower than where it started the year.

Greenspan`s comments will be closely analyzed for clues about America`s economic condition, the Fed`s commitment to heading off a recession through continued interest-rate reductions, and his take on proposed US tax cuts, market watchers say.

The Fed last month lowered interest rates by a full percentage point in two separate moves, and the market now expects the central bank to again cut by a half point when its policy-setting group next meets on March 20, or sooner.

"We had Greenspan endorse tax cuts [in Senate testimony January 25], and the market just sat there, unimpressed. Over the last couple of days, we have been sitting around asking what are we missing," said Donald Berdine, chief investment officer of PNC Advisors, with about $70 billion in managed assets.

"First, it appears this near-zero growth is going to be with us longer than most economist are expecting, and we have to go back and assess what is happening given consumer confidence and the melees in the tech sector - the inventory overhang and slowing consumer demand in desktop computers," Berdine said.

In addition to the Fed chairman`s comments set for tomorrow, the week also will bring influential data on January retail sales and December business inventories.

The week`s data calendar concludes with two major items on Friday: January`s producer price index and last month`s industrial production.

While the flood of quarterly earnings in recent weeks has begun to ebb, a handful of major companies are scheduled to report their numbers this week.

Semiconductor equipment maker Applied Materials will report on Tuesday, Goodyear Tire & Rubber and Campbell Soup on Wednesday and Hewlett Packard and Dell Computer on Thursday.

"The market will remain under pressure, and we are going to begin to see very shortly another slew of pre-announcements for the first quarter and year," said Stanley Nabi, Credit Suisse Asset Management chairman of investment policy committee. The firm has $100 billion under management.

"Look at where we have traveled in the last six or seven weeks, when the idea began in earnest that earnings would not be great," Nabi said. "Instead of 10 to 15 percent growth, it went to 7 to 8). Now it is zero. I think it will be minus 5 to 10 percent, and that will begin to show itself in the next few weeks."

"I would expect sales and industrial production to be poor, and I am hoping inventories are low. So if these three things fall into place, it would indicate we are making progress toward bringing the weakness to a conclusion," said Charles Blood, Brown Brothers Harriman director of financial markets analysis. - Reuters 13.2.01

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Malaysia Checking Thai Beef For Mad Cow Disease

Filed at 11 : 06 am (THLD time)


KUALA LUMPUR (AP)--Malaysian authorities were reported Tuesday to be checking whether beef from neighboring Thailand is tainted with mad cow disease, and one newspaper said that beef imports from Thailand had been banned.

The moves follow news from Thailand last week that two people were infected with a deadly human variant of mad cow disease, although the doctor at the source of the reports has since said that he was misquoted and that the victims suffered from a different brain disease.

In Malaysia, Mohamad Nordin Mohamad Nor, director-general of the Malaysian Veterinary Services Department, was quoted by The Sun newspaper as saying that his officers had faxed their counterparts in Thailand to confirm the situation and would respond with "appropriate measures."

A Health Ministry source, who was not identified, was cited by the New Straits Times newspaper as saying that a temporary freeze had been imposed since Saturday on all beef imports from Thailand, while distribution of beef imported within the past week was stopped.

Officials were not immediately available to confirm the report. Malaysia and other countries in Southeast Asia have already banned beef imports from the European Union, where outbreaks of mad cow disease have erupted in several nations.

Mad cow disease has been linked with a human equivalent called new variant Creutzfeldt-Jakob disease, which has killed 80 Europeans since the mid-1990s, mostly in Britain.

Mohamad Nordin said it would be unusual for any country in Southeast Asia to feed cattle with meat and bone meal, a practice linked to the spread of the disease. Such feed is expensive in Asia, and cattle generally graze.

Most Malaysian beef imports come from India, Australia, New Zealand and the United States. Only about 193,000 ringgit ($1=MYR3.79) worth of Thai beef and beef products were imported last year, out of total imports amounting to more than MYR400 million.

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Border tense despite retreat of Burmese


MAE SAI, Chiang Rai - The Thai-Burma northern border remained tense yesterday despite the retreat of Burmese troops from the Ban Pang Noon hill and the reopening of the border checkpoint here.

Thai army sources said Burma had dispatched reinforcements to the border area near Tachilek even though the regional military commanders of both sides had signed a cease-fire agreement on Sunday evening.

Army chief General Surayudh Chulanont expressed hope yesterday that the cease-fire agreement would be observed.

"The army will try its best to keep matters on a negotiation track unless there is another border incursions. We hope the cease-fire agreement will be observed," Surayudh said.

Although cross-border trade resumed, few local residents from either side were seen crossing here yesterday.

Surayudh said officials from the Joint Border Committee held a separate meeting yesterday to discuss the damage caused by Burmese shelling, as well as the deaths of two civilians and the injuries to nine Thai villagers.

Meanwhile, the Burma military junta yesterday accused Thai troops of aiding ethnic rebels during the clashes, and insisted that it had informed Thailand about its planned attacks on guerrillas in the area.

At a news conference in Rangoon, senior military spokesman Colonel Kyaw Thein said ethnic rebels had fired shells at the Burma border town of Tachilek from inside Thailand, prompting Burmese soldiers to fire back at their positions near Mae Sai.

He said no shells had been fired at Mae Sai itself.

"We had to fire back at them as they fired about 10 shells from heavy weapons into Tachilek town," Kyaw Thein said.

"During that period, 14 soldiers were killed, 51 wounded and two are missing. Three civilians were killed and 15 were wounded."

Kyaw Thein said Thai troops had fired across the border, but did not explicitly accuse the Thai government of aiding the ethnic Shan rebels.

He said the Burmese army had been engaged in clearing operations to dislodge about 150 Shan rebels operating at the border, and insisted Thai authorities had been informed about the operation through Burma`s military attaché in Bangkok.

Prime Minister Thaksin Shinawatra and his coalition counterpart General Chavalit Yongchaiyudh, tipped to be the next defence minister, will visit the area tomorrow. Thaksin also said he would make an official visit to Burma soon after his cabinet was in place to help clear the air.

"Sometimes we need to use more strict or active measures, not just passive measures," Thaksin said.

The district, for decades a vibrant trading post for Burmese and Thai traders, was virtually abandoned on Sunday after fierce fighting broke out between Burmese forces and Thai troops.

Wankeaw Kaeuklom, a vegetable vendor, said she was not taking any chances and would be better prepared for the next round of fighting. Her bag was packed just in case.

"The fight was so intense. Everybody ran for their lives without thinking about anyone else," said Sompong Sae-yung, the 51-year-old owner of a shoe shop. "It is funny that the authorities announced the opening of a check-point despite the presence of tanks," he said

While few people were reluctant to come close to the official crossing point, Kamla, a 62-year-old grandmother, was desperate to get to the Burmese side to see her son, an employee of a casino there.

"Don`t stop me. I want to visit my son," a tearful Kamla pleaded with border officials to speed up their process.

The clashes between Thai and Burmese troops broke out Saturday morning when about 500 Burmese troops seized the Bang Pang Noon hill, taking 19 Thai rangers hostage at the base camp there.

The Burmese troops were pursuing soldiers from the rebel Shan State Army and wanted the hill to set up their artillery but the Thai Rangers refused them access. The following morning Thai troops began to shell the base. Both sides exchanged gunfire and mortar shells in Mae Sai district, as well as in other areas.

BY JEERAPORN CHAISRI

The Nation, Reuters 13.2.01

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Campaign Promises: Thai Chief Faces Cost
Seth Mydans New York Times Service Tuesday, February 13, 2001
Patronage Could Cut Economic Recovery

BANGKOK Even before the new prime minister, Thaksin Shinawatra, took office on Friday, poor people were besieging hospitals to demand the pennies-a visit health care he promised.
.
Farmers, taking him up on his campaign pledge of a three-year moratorium, stopped repaying their loans. And thousands of rural hamlets sought to incorporate themselves as villages in hopes of receiving the promised $23,000 handout to each of Thailand`s 70,000 villages.
.
At the same time, business people hurt by the 1997 economic crash were eagerly awaiting the creation of a promised Assets Management Corp. that would spend public money to soak up $12 billion in bad bank loans and put them back in the black.
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And rich dinosaurs of Thailand`s corrupt politics - a class sometimes derided as the yees, a Thai word meaning yuck - were circling for their paybacks at the trough of a new administration.
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Mr. Thaksin, 51, who has the biggest popular mandate any modern Thai leader has attained, has come face to face with the promises he made to win it. His near-majority victory has produced hopes for a stable government, with a healthy bounce in the stock market and in investor confidence.
.
But critics warn that his promises could drain the national treasury and that the euphoria of the moment could evaporate quickly. Thailand, epicenter of the region`s economic crisis, could begin to slip backward after the painful reforms and incremental gains of the defeated prime minister, Chuan Leekpai.
.
As in the Philippines, where a "people power" putsch last month removed a democratically elected president, Joseph Estrada, there are fears of backsliding in Thailand, Southeast Asia`s other exemplar of open democratic government.
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The feel-good campaign pledges could grind the economy down again, economists say. The promised programs could raise Thailand`s debt from 60 percent of its gross national product to more than 100 percent, according to a recent report by Standard Chartered Bank.
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More fundamentally, there are concerns that Mr. Thaksin, who grew rich as a telecommunications baron under the old system of patronage politics, will begin to undercut the democratic reforms that have taken tentative root under Mr. Chuan`s three-year administration.
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Mr. Thaksin won votes with a campaign of nationalist rhetoric, and he has said he would like to soften measures imposed by the International Monetary Fund that brought pain to many Thais while helping to increase foreign investment.
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There are fears of a return to the past, to what Pana Janviroj, editor of The Nation, a Bangkok daily, called "business politics," when corruption and personal deals undermined Thailand`s economic health and helped set the stage for its economic collapse.
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Even before taking office Mr. Thaksin found himself on the wrong side of two important attempts at introducing clean government: a new anti-corruption commission and the new Electoral Commission. Thirty-two of his party`s winning candidates were disqualified by the Election Commission for vote buying and other irregularities. Last week, without giving details, Mr. Thaksin said he would consider revising the election laws.
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Of more potential consequence, Mr. Thaksin is fighting an indictment by the National Countercorruption Commission after being accused of hiding his assets. If convicted by the Constitutional Court, he could be summarily barred from holding office and removed from his post.
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He has insisted on his innocence and vowed to fight back. If his popularity stays high, the court could find itself ruling against the will of the people.

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!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

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Telecomasia.net 13.2.01

Tuesday, 13 February, 2001

Thai telcos still vying for domestic long-distance business


Thai provincial fixed-line operator Thai Telephone and Telecommunications (TT&T) plans to lease IP network capacity from the state-owned Telephone Organization of Thailand to offer domestic long-distance VoIP calls to consumers.


TT&T has been providing the discount long-distance service to corporate customers across its own IP network, and is now seeking talks with TOT to reduce leasing fees to support a consumer version of the service, which could begin as early as one month from now.


According to the Bangkok Post, the move from TT&T, which operates via a concessionary license from TOT, comes after the state telco threatened to seek arbitration if another concessionary operator, Bangkok telco TelecomAsia Corp, continued to use its own network to offer a similar service instead of renting capacity from the state agency.


TA claims the service, known as Y-Tel, is not a new service but a value-added feature on its existing network, and does not violate any terms of its concession with the TOT.


TOT said a flat rental rate for both TA and TT&T would be proposed, the Post reported.

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Meinungen aus dem SEAMICO-Forum zum Anstieg von Banpu heute:

Tuesday, February 13, 2001 2:24:30 PM]
Subject : ÚBANPU announced to pay Bt3/share for dividiend
Message : BANPU announced to pay interim dividend of Bt3/share (31 Jul 2000-31 Dec 2000) more than our expectation of only Bt2/share, average annual dividend yield of 15%. For the investors who do not expect dividend payment, recommend BUY until Bt21.

Name/E-mail : [e-mail]



[Tuesday, February 13, 2001 4:22:37 PM]
Message : what a b.s. !!!! no profits from operations, but a extremely high dividend. remember bjc? i suspect that some thai companies dish ou these one-time presents in order to unload some of their holdings at a higher price

Name / E-mail : bert

[Jomtien]

Hallo Body.

Sei bitte so nett und übersetze ganz grob die Nachrichten
von TT&T und Ta.

Bin sehr groß in diesen beiden Werten drin, und mein

Englisch ist beschissen.

Danke , deine Nachrichten sind bisher von Thailand
die aktuellsten und besten.

Danke und Gruß

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Hi Jomtien,

hab gerade erst wieder Gelegenheit hier zu posten, vorab der verspaetete Schlussbericht zum SET(Deutsch)

http://de.biz.yahoo.com/010213/126/1c9fy.html

zu TT&T und TA, werd ich mal versuchen, fundamental definitives auszufiltern. Bitte etwas Geduld

bis spaeter

[MonacoT.]

Ich habe leider nur 4 Jahre Englisch in der Realschule gelernt.
Eure Ausführungen in Ehren, aber das ist mir echt zu anstrengend,
obwohl es mich interessieren würde. Geht`s zwischendurch auch
mal wieder in deutsch. Danke !

[BodyG]

Hi Jomtien,
hier nochmal der relevante Artikel aus der Post:

TT&T to rent TOT link for long-distance service
Mongkol Jullayothin


Thai Telephone and Telecommunications Plc, the provincial fixed-line operator(Festnetzbetreiber), plans to rent the Internet protocol (IP) network of the Telephone Organisation of Thailand to provide a low-cost long-distance calls(Ferngespraeche).

The move(Anlass) comes after the TOT threatened(drohte) to seek arbitration(Schlichtung finden) if TelecomAsia Corp Plc, the Bangkok fixed-line operator, continued to use its own IP network instead of renting capacity from the state agency.

TA claims the service, known as Y-Tel, is not a new service but a value-added feature on its existing network, and does not violate any terms of its concession with the TOT.

Witit Sajjapong, executive vice-president of TT&T, said his firm expected to enter talks soon in an attempt to have the IP network rent reduced.

TT&T has been providing the low-cost long-distance service to corporate customers as a pilot project, using its own IP network. Service to the public could begin within a month if talks with the TOT succeed(Erfolg haben), said Mr Witit.

A TOT executive said a flat rental rate for both TA and TT&T would be proposed(vorgesehen), but he declined(lehnte ab) to reveal(preiszugeben) the exact figure(hier=Summe,Preis).

"For example, we could charge(berechnen) the companies one baht per call, whether(egal ob) the rate is three or 12 baht a minute.

Y-Tel uses Internet connections to reduce(senken) the cost of long-distance calls to between three and 12 baht a minute, compared(verglichen) with 3-18 baht using conventional lines.

An analyst with Thai Thanakit Securities said TT&T was forced to launch the service to maintain(aufrechterhalten) its customer base. Its revenue(Einkuenfte) might fall initially(urspruenglich), as long-distance accounts for 60% of its earnings, but higher call volume(groesseres Gespraechsaufkommen) should result eventually(sollte daraus resultieren). "TT&T knows that its challenge(Herausforderung) is not to sell the lines but to stimulate(anregen) users to make more calls."

TT&T has 1.2 million customers and average(durchschnittliches) monthly income of 630 baht a line. It expects(erwartet) to sign up about 20,000 new customers a month.

Ich hoffe mit Hilfestellung kommst Du jetzt klar,
ueber TA kommt noch was nach dem Fruehstueck, bis dann

BodyG

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Thai Rak Thai pays little heed to IMF plea


THE International Monetary Fund has urged the Thai Rak Thai government to inject massive amounts of money - possibly to the tune of Bt100 billion - to jump-start the economy, warning that failure to do so might derail this year`s economic growth expectations.

A Thai Rak Thai official said the IMF`s Thailand representative, Lorenzo Giorgianni, made the suggestion to senior party members about two weeks ago, but the party`s reaction was lukewarm.

The IMF was afraid that with the bumpy economic landing in the US, the recession in Japan, and moderate growth in Europe, Thailand could not rely on exports as the engine of growth, as it has over the past three years. A Bt100-billion fiscal stimulus package would yield growth of at least two percentage points.

The World Bank is sending out a similar signal.

Credit Lyonnais has projected the growth in gross domestic product (GDP) might slide to 2.5 per cent this year. Other research houses give the figure at 3.5 per cent. Supavud Saicheua, of Merrill Lynch Phatra Securities, warned that if economic growth failed to reach 4 or 4.5 per cent, it would be tough for the banks to tackle their bad debts.

Addressing the Thai-German Chamber of Commerce yesterday, Pansak Winyaratn, the chief policy adviser of Prime Minister Thaksin Shinawatra, said a fiscal stimulus in the IMF`s or the Chuan government`s style would not lead to the desired results, as judged by the government`s failure to prop up the economy over the past three years.

"We listened to them but we have our way of doing things," he said. "We would not go to the Japanese institutions to borrow money from them and spend it to stimulate the economy like in the past."

Pansak said the Thai Rak Thai would instead focus its priorities on stimulating the farm sector as well as reinventing the small and medium-scale enterprises.

Together, they would form a new taxable base for the economy at a time when the government could not expect to collect tax from the corporate sector, at least over the next one to two years, he added.

He said the government did not have the luxury of extra money to spend on other modern sectors, which should try to help themselves.

Pansak`s comments reflect a departure in Thailand from the conventional economic thinking. The Thai Rak Thai plans to go the other way to stimulate growth and create jobs through the farm sector and small and medium-scale enterprises. The conventional fiscal stimulus is to plough money into the infrastructure or housing projects to create demand.

BY WICHIT CHAITRONG and

THANONG KHANTHONG

The Nation

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NCCC limits business ban


ONLY the prime minister and Cabinet members will be banned from conducting business with government agencies and holding positions in companies conducting such business after they leave office, the National Counter Corruption Commission said yesterday.

However, the Chuan government will not be affected by the ruling.

NCCC chairman Opas Arunin said the ban is required as part of Article 100 of the Constitution.

The prime minister and Cabinet members already are banned from doing business with government agencies while in office.

The Constitution allows the NCCC to determine what office holders should be banned from such activities after leaving office.

Opas said the NCCC decided to limit the post-tenure ban to the prime minister and Cabinet members only.

Initially, the ban would have covered about 1,000 positions, but some said it would be unfair to honest officials, Opas said. Such a widespread ban would affect spouses of the officials, so could prevent many families from earning honest income, he said.

The NCCC`s directive will be announced in the Royal Gazette today. It will not affect the Chuan Cabinet because it will take effect in 180 days and is not retroactive, he said.

The ban would prevent the prime minister and former Cabinet members from conducting business with government agencies formerly under their supervision for two years, Opas said.

They also will be prohibited from holding any position in any company that conducts business with government agencies formerly under their supervision.

Violators face three years imprisonment or a Bt60,000 or both.

Meanwhile, Opas said, the NCCC might receive MPs` asset declarations at Parliament instead of the NCCC`s office, which might be too small to accommodate all the MPs.

The Nation

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Bad loan buyout put at Bt357 bn


THE cost of buying bad loans from the banking system by a national asset-management company (AMC) would be Bt356.88 billion - assuming the transfer-price is set at the net book value, according to Capital Nomura Securities (CNS).

Bangkok Bank would reap the highest benefit from a national AMC because it would obtain the greatest amount of interest from bonds likely to be issued to cover the buyout.

Merrill Lynch Phatra Securities previously estimated that a national AMC would have to spend Bt150 billion to Bt200 billion to buy the bad loans. The national AMC was one of Thai Rak Thai`s election pledges.

The CNS report said the government would also have to carry Bt14.27 billion per annum incurred from issuing banks five-year-maturity zero-coupon bonds at a similar rate to that given for time deposits by the large-sized banks, plus 1 per cent (around 4 per cent).

Under this scenario, recapitalisation pressure on banks should ease, because the selling price would be set at the net book value (and book value deducted from reserve provisions), or roughly discounted at 50 per cent. The banks would not take any responsibility for losses incurred from debt management for five years, the report said. Also, banks would benefit from interest from the bonds and may enjoy returns under a loss and gain-sharing programme, which would be implemented after the fifth year.

"The Thai Rak Thai`s principle for setting up the national AMC is similar to Krung Thai Bank`s case that Sukhumvit Asset Management buy out the bank`s Bt520 billion in distressed assets, but the different point is the loss and gain-sharing programme," the report said.

Under the Thai Rak Thai plan, banks would also have the option to buy back distressed assets sold to the state AMC, or the zero bonds` maturity would be extended for another 10 years if the national AMC failed to turn them around within five years.

While a national AMC would be a boon to the banking system, the report warned it could create a moral hazard among debtors, who might decide not to honour debts and aim to buy back their loans at a discount. The report said Bangkok Bank, the country`s largest lender, was expected to gain the most benefit from the national AMC because it had already set aside Bt291.56 billion in reserve provisions for as much as 70 per cent of its outstanding bad loans.

"We estimate based on the assumption that the more reserve provisions set up means the less loss from bad loan management by the national AMC," the report said.

On the other hand, Bank of Ayudhya (BAY) is expected to shoulder the highest loss among the banks because its ratio of provisions to bad loans is only 33 per cent. BAY is followed by Thai Military Bank (TMB) and Bank of Asia (BOA) in this situation.

"We [would] tend to upgrade investment rating for commercial banks` stocks in the future if the national AMC proceeds under the above model because their book value would jump," the report stated.

The Nation

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Hi MonacoT,

dazu hab ich schon mal ausfuehrlich Stellung genommen, brauchst nur durch den thread zu scrollen.

Gruss BodyG

Ps: Ich kann leider nichts dran aendern, dass in englischer Sprache publiziert wird. Bei Max Roland und Winnysgeist findest Du reichlich Infos und Kommentare in deutscher Sprache.

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Wednesday, February 14 11:45 AM SGT

Thai Shrs -0.6% Early; Banking Shrs Fall On PM`s Comments
BANGKOK (Dow Jones)--Thai stocks are down 0.6% early Wednesday on losses in banking stocks after Thailand`s Prime Minister`s said the spread between bank lending and deposit rates should be cut from 5% to 3%, and Alan Greenspan`s disappointing speech overnight, traders said.
At 0330 GMT (10:30 p.m. EST Tuesday), the Stock Exchange of Thailand index was down 1.93 points, or 0.6%, at 320.11, but off its early low at 318.06.

The blue-chip SET 50 index was down 0.18 point, or 0.8%, at 22.84.

Early volume is moderate at 128.6 million shares worth 1.20 billion baht, against Tuesday`s total of 718.4 million shares worth THB5.88 billion.

Decliners outnumber advancers 76 to 35, excluding shares traded on the foreign board.

Federal Reserve Chairman Alan Greenspan deflated expectations that the U.S. central bank will implement aggressive rate cuts, and sent U.S. markets lower overnight, analysts said.

They said this is weighing on local sentiment, but given the Thailand`s prospects for political stability, this should be taken as a buying opportunity.

Support for the index is seen at 315, and resistance 325.

Among big-capital sectors, the banking index is down 1.3%, and the finance index is down 1.3%.

Bangkok Bank is down 1.2% at THB39.75 and Thai Farmers Bank is down 2% at THB24.75. -0- 14/02/01 03-45G

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INTERVIEW: Mobius Places Hopes On Thailand`s Thaksin
By Rita Raagas De Ramos
Of DOW JONES NEWSWIRES 14.2.01

HONG KONG (Dow Jones)--Emerging markets investor Mark Mobius believes Prime Minister Thaksin Shinawatra - by virtue of his landslide victory in last month`s national elections - has the popular support that could finally usher a period of economic and political stability in Thailand.

"With Thaksin`s convincing victory, we are cautiously optimistic that we could enter a relatively stable phase in Thai politics, which will be good for the economy," Mobius, principal fund manager at Templeton Asset Management Limited, said in an interview with Dow Jones Newswires.

Just last week, Thaksin`s overwhelming victory was confirmed after getting 340 votes in the 500-seat parliament, higher than his coalition`s parliamentary majority of 325 seats. Thaksin was backed by three smaller parties outside the coalition.

Thaksin`s Thai Rak Thai (Thais Love Thais) party, a newcomer in the political arena, is the first to obtain an absolute majority in Thailand`s House of Representatives.

Thaksin is the 31st prime minister of Thailand since the absolute monarchy was abolished in 1932. During this 68-year period, there have been 20 general elections and 18 military coups or attempted coups.

Thaksin served briefly under former Prime Minister Chavalit Yongchiyudh`s government as deputy prime minister in 1997, a post he also held from July 1995 to February 1996. However, his previous involvement in politics was mostly regarded as a means to promote his business interests and establish Shin Corp. as a telecommunications empire.



Party`s Dominance To Rally Support



Templeton`s Mobius said the Thai Rak Thai`s dominance in the parliament is significant as it has eliminated several small parties, which were prevalent in the past.

"This will hopefully lead to political and economic stability, which in turn will increase consumer and investor confidence," Mobius said.

Mobius added he is closely monitoring details of Thaksin`s policies, with the view of increasing Templeton`s position in Thailand.

Most, or 38%, of the $10 million Templeton Asian Smaller Companies Fund is invested in Thailand, with the portfolio including Thaksin`s Shin Corp. (H.SWC), the country`s largest telecommunications group.

Thaksin`s promises of boosting the economy through lavish spending worked like a charm on the Thai people tired of waiting for their country to recover from the Asian financial crisis.

But once the honeymoon with the electorate ends, Thaksin will have to face the daunting challenge of rebuilding Thailand`s economy. The first step towards that goal is restoring confidence in corporate Thailand, Mobius said.

"Thailand`s biggest problems are corruption, the lack of fair treatment of foreign investors and the lack of a much deeper restructuring in both the financial and corporate sectors," Mobius said.

Perhaps the irony lies in the fact that Thaksin himself has been indicted by a state anti-graft and corruption body on charges of illegally concealing his vast wealth.

If the Constitutional Court upholds that ruling, Thaksin will be banned from politics for five years - a possibility Mobius is willing to ignore for now. The Court is set to open the hearing on Thaksin`s case next month, with the process expected to be completed in a year.



Critical Of Corporate Governance Issues



Meanwhile, Mobius takes particular issue on a planned share-swap by two units of the Charoen Pokphand Group (H.CPH), or CP.

CP plans to swap 600 million shares of its Bangkok Inter Teletech Limited, or Bitco, with another unit, publicly-listed, fixed-line operator TelecomAsia Corp. pcl (H.TCA).

Bitco was set up by CP to manage cellular license holder Wireless Communications Services Limited, or WCS, which CP purchased in February 2000 for three billion baht ($1=THB42.37).

CP`s planned share swap values the 600 million shares in Bitco at THB26.50 each, or THB15.9 billion in total, sharply higher than CP`s initial investment in WCS. The deal is expected to be completed before May 31.

Mobius said the planned transaction places TelecomAsia shareholders at a disadvantage because of the "very significant premium" they will have to pay in relation to the price paid by CP for the shares barely a year ago.

"TelecomAsia should have been the vehicle to buy WCS directly, instead of through CP`s private company," Mobius said.

The CP deal is just one example of why many foreign investors are wary of pouring funds in Thailand, Mobius said.

Mobius hopes the corporate culture in Thailand will change under Thaksin`s rule, as the prime minister`s success in business could give him the edge in solving the country`s long-standing problem of corrupt business practices.

"He should have the necessary skills and foresight to govern Thailand effectively," Mobius said.

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Wednesday, February 14 1:49 PM SGT

Thai Rak Thai Advisers Propose THB414B Bonds For Bk NPLs
BANGKOK (Dow Jones)--Thai Rak Thai Party economic advisers have proposed to the new Thai Rak Thai-led coalition government that 414 billion baht ($1=THB42.48) worth of zero-coupon government bonds be issued to buy THB1.23 trillion in nonperforming loans from local private-sector banks.
Economist and chief economic adviser Kitti Limsakul told a seminar Wednesday that the nonperforming loans should be bought at book value, or nominal value minus THB815.09 billion in loan-loss provisions already set aside by the banks.

No decision has been taken by the new government on the proposal, he said.

Kitti said the establishment of a national asset management corporation is the best way to deal with the problems facing the banking sector.

The entire portfolio of private-sector nonperforming loans should be purchased, to avoid selective sales of only unrecoverable loans, he said.

The state rescue fund, known as the Financial Institutions Development Fund, or FIDF, already holds around THB1 trillion in nonperforming loans through its ownership of state and nationalized banks, and asset management corporations set up to manage those institutions bad debts.

If the government doesn`t move quickly to set up a national asset management corporation and remove the burden of nonperforming loans from private-sector commercial banks, they will lower deposit account interest rates again, Kitti said.

Banks cut lending and deposit rates by 50 basis points Tuesday. Interest rates offered on savings and fixed-term deposit accounts are now mostly in a range of 1.75% to 3%.

Prime Minister Thaksin Shinawatra, head of the party, said Wednesday that low deposit account interest rates were abnormal and could lead to capital outflows from the country. He said would be working with banks to deal with the problem.

Analysts called the reduction of bank rates a positive move which will lower funding costs at a time when banks are flooded with deposits and demand for new loans remains sluggish, due to oversupply of productive capacity in many sectors and weak consumer demand.

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Strong Demand, Lower Rates Boost Telecoms

THAI TELECOMS firms are set to report impressive results for 2000 and the current year will be even better given strong demand, making the sector a top pick for investors, analysts say.

A downtrend in US interest rates will give an extra boost to the capital-intensive sector by reducing funding costs for firms with foreign debt and cutting equipment import bills.

A new telecoms-friendly government led by telecoms tycoon Thaksin Shinawatra is expected to press ahead with industry liberalisation, seen as positive for private companies.

Telecoms firms are negotiating with the government to change the term of their revenue-sharing agreement with the state. They pay 10-43 percent of gross revenues to state agencies for the right to operate. Analysts say the government`s stance is likely to soften with Thaksin at the helm.

Despite the entry of newcomers, which will spark fiercer competition, existing operators are expected to maintain their leading positions. Most have secured partnership deals with global players to give them the clout to compete.

Thailand`s biggest telecoms group Shin Corp and its 41 percent owned affiliate Advanced Info Service (AIS) are among top picks of most analysts and fund managers. Shin Corp was founded by Thaksin, and his wife and son hold large stakes.

AIS, which has a 52 percent market share, posted a 61 percent increase in its subscriber base in 2000, outperforming the industry average of 46 percent and the 42 percent subscriber growth of AIS`s Singapore-listed rival Total Access Communication (TAC).

Given optimism the cellular market will grow by 48 percent in 2001, Merrill Lynch analyst Amarit Sukhavanij revised up his earning per share (EPS) forecast for AIS for 2000 by 16 percent to 25.7 baht, and for 2001 by 17 percent to 26.7 baht, compared with 10.2 baht in 1999.

Amarit has raised 2001 EPS forecast for TAC by 52 percent to 13.7 baht but cut his 2000 EPS estimate to 0.10 baht. TAC posted earnings per share of 3.2 baht in 1999.

Due to a higher valuation of its cellular affiliates, Amarit raised his 12-month target price for Shin to 244 baht for local-board shares and 281 baht for foreign-board shares.

Shin was unchanged at 208 on the local board on Tuesday and at 222 baht on the foreign board. So far this year, the stock has risen 34 percent compared with a 28 percent gain in the telecoms sectoral index and an 18 percent rise in the composite SET index.

ING`s Chan said his favourite stock was Shin`s 51 percent owned unit Shin Satellite, given its cheap valuation compared with local and regional peers.

He said his 12-month target price for Shin Sat was 52 baht, compared with its current price of 32.50 baht. So far this year, the stock has gained 16 percent.

Unlike the cellular business, analysts said fixed line operators - TelecomAsia (TA) and Thai Telephone and Telecommunication (TTNT) - are likely to show further losses in 2000. But the 2001 outlook for TA is more bullish.

Pisut Ngamvijitvong at Yuanta Securities said TA should post an operating profit in 2001. He said TA would post a foreign exchange loss of about three billion baht in 2000.

TA is acquiring cellular license holder Wireless Communication Service (WCS) in a share swap deal with Charoen Pokphand, which owns both TA and WCS.

WCS, 34 percent owned by Orange, a unit of France Telecom, is expected to begin operations in the second half of 2001.

TTNT`s future hinges on its negotiations with the government to change its revenue sharing contract. It pays 43 percent of its revenue to the state, compared with 10-25 percent paid by other firms. - Reuters,bday.net 14.2.01

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Schlussbericht SET(Deutsch)

http://de.biz.yahoo.com/010214/126/1ccfr.html

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Wednesday, February 14 4:15 PM SGT

Thai Central Bk To Explain New Forex Disclosure Rules Fri
SINGAPORE (Dow Jones)--Thailand`s central bank will hold a meeting Friday with commercial bank treasurers to explain new disclosure requirements for some foreign exchange transactions, dealers told Dow Jones Newswires Wednesday.
Bank of Thailand early this week issued a notice to commercial banks, requesting more detailed disclosure on foreign exchange deals, effective March 1. The meeting with the central bank will be held at 0700 GMT (2:00 a.m. EST).

Last November, the central bank asked commercial banks to provide detailed information about counterparty deals in its bid to curb speculative trading in the Thai currency, which was hit by political and economic uncertainties.

The disclosure requirements will now be expanded. Banks in Thailand will have to identify the name of onshore and offshore customers or counterparties, and specify details of the transactions such as the purpose of the deals, said a translated version of the notice, which was originally written in Thai.

Banks will also have to disclose when each position is taken, when it is covered and why, said the notice.

The more stringent requirements have sparked confusion in the foreign exchange market, prompting offshore participants to liquidate their long dollar positions against the baht, amid fears this could be a precursor to tighter foreign exchange curbs. Market participants are waiting for Friday`s meeting for clarification.

Late Wednesday, the dollar was quoted at 42.37 baht, down from THB42.65 late Tuesday.

Mark Boyne, treasury chief for HSBC in Thailand, said his initial understanding, based on translations of the central bank notice and subject to clarification at the meeting Friday, was that the new requirements didn`t restrict the types of transactions which banks could engage in, and didn`t expand the number of transactions for which reporting was required.

"The type of transactions that have to be reported remain the same. There will be a more detailed classification of the reasons for a deal. The requirement to name (counter party institutions and clients) is new. The reporting of those deals, and giving a reason why they were done, is not new. But we will have to be more detailed now in saying who it was, what it was for, et cetera," Boyne told Dow Jones Newswires.

Dealers said they are concerned that the latest rulings could drain liquidity in the offshore market, should onshore banks become discouraged by the cumbersome need to provide more details to the central bank on foreign exchange deals.

(Tom Fox in Bangkok contributed to this article.)

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Wednesday, February 14 7:07 PM SGT

Asia Markets Shares Close Broadly Lower Feb 14, 2001
A round-up of Asian stock markets for Feb 14, 2001 prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, Feb 14 Asia Pulse - Asian share markets closed broadly lower in reaction to US Federal Reserve Chairman Alan Greenspan`s suggestion to a Senate committee that interest rates would fall by a smaller amount than investors had hoped for.

Negative local factors also dampened sentiment in several bourses.

In Taipei, share prices slumped 2.3 per cent on profit-taking despite the government`s decision to restart a scrapped nuclear power plant, brokers said.

The Taiwan Stock Exchange weighted price index lost 139.81 points to close at 5,887.68.

Share prices in Kuala Lumpur weakened 0.6 per cent following the poor reception for Time dotCom`s initial public offering, brokers said.

The KLSE composite index fell 4.60 points to finish at 714.54.

Singapore share prices eased 1.1 per cent after Wall Street stocks closed weaker, dealers said.

The Straits Times Index fell 22.69 points to 1,966.10.

In Jakarta, stocks closed 0.7 per cent lower on Wednesday in thin, slow trade as investors avoided the market amid a lack of fresh incentives and lingering political and security concerns.

The composite index fell 2.96 points to close at 423.21.

Bangkok share prices plummeted 2.1 per cent due to a lack of fresh leads and negative sentiment on overseas markets, analysts said.

The SET composite index shed 6.79 points to finish at 315.25 points.

Share prices in Manila slipped 0.3 per cent as investors locked in profits, dealers said.

The Philippine Stock Exchange composite index fell 4.53 points to close at 1,687.74.

Elsewhere, Tokyo closed 0.1 per cent higher amid reports that parties belonging to Japan`s ruling coalition called for Prime Minister Yoshiro Mori to be sacked, analysts said.

The Nikei-225 index edged 9.36 points higher to finish at 13,284.06.

The market in Hong Kong closed 0.1 per cent higher on selective buying, brokers said.

The Hang Seng index rose 17.70 points at 15,860.42.

Shares on the Korea Stock Exchange rebounded 0.8 per cent on active buying by foreign and institutional investors.

The benchmark Korea Stock Price Index (KOSPI) gained 5.05 points to 603.83, recovering to the 600-point line in eight days.

The Australian sharemarket has defied a weaker session on Wall Street overnight to post a 0.2 per cent gain on the back of a solid performance by News Corp.

The All Ordinaries rose 8.1 points at 3,294.8 while the SP/ASX 200 index gained nine points to 3,350.1.

WEDNESDAY INDICES:

* SYDNEY - All Ordinaries 3294.8 (up 8.1 points)

* HONG KONG - Hang Seng 15,860.42 (up 17.70 points)

* SEOUL - Composite 603.83 (up 5.05 points)

* TAIPEI - Weighted 5,887.68 (down 139.81 points)

* TOKYO - Nikei 13,284.06 (up 9.36 points)

* MANILA - Composite 1,687.74 (down 4.53 points)

* SINGAPORE - STI index 1,966.10 (down 22.69 points)

* JAKARTA - Composite 423.21 (down 2.96 points)

* KUALA LUMPUR - KLSE index 714.54 (down 4.60 points)

* BANGKOK - SET Index 315.25 (down 6.79 points)

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Burma denies responsibility for Mae Sai attack

Filed at 01 : 35 pm (THLD time)


BANGKOK, Feb 14 (The Nation) -- The Burmese government on Wednesday refused to take responsibility for the attack on Chiang Rai`s Mae Sai district that killed two Thai villagers and injured eight others, saying the shelling of the Thai border trading town was carried out by Shan ethnic rebels.

The official statement made in Rangoon, monitored in Bangkok, also accused Thailand of supporting Shan ethnic rebels who it said were involved in drug trafficking along the border. It suggested that by aiding the ethnic rebels, Thailand was jeopardising Thai-Burmese cooperation in the fight against drug trafficking.

"The attack on Thailand`s Mae Sai district was perpetrated by Shan ethnic rebels who wanted to cause misunderstanding and undermine the good relations between Burma and Thailand," a Burmese government spokesman said.

Rangoon said it regretted the loss of lives and injuries caused by the attack, which it insisted had nothing to do with its forces which was battling the Shan ethnic guerrillas in Thachilek area opposite Mae Sai.

Thailand is demanding compensation from Burmese government for the civilian casualities. Thai authorities have since Tuesday sealed off the border with Burma from Mae Sai to Mae Fahluang district as the the border situation remained tense.

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Wednesday, February 14

Thai Rak Thai Adviser: `02-`03 GDP Growth To Exceed 5%
BANGKOK (Dow Jones)--A Thai Rak Thai Party economic adviser Wednesday said gross domestic product growth should exceed 5% in both 2002 and 2003 as the new government`s plan to boost spending should stimulate the economy.
Kitti Limsakul, economist and Thai Rak Thai chief economic adviser, told a seminar the country`s economic growth should be around 4.5% this year, but should rise to 5% in 2002 and to 5.5% to 6% in 2003.

As a result, the public-sector deficit shouldn`t exceed 5% of gross domestic product over the next two fiscal years, despite increased spending, he said.

He predicted the public-sector deficit in each of the fiscal 2002 and 2003 would account for around 2.5% to 5% of GDP. The public-sector deficit was at 4.1% of GDP in fiscal 2000, and is forecast to drop to 3% of GDP in fiscal 2001, ending Sept. 30.

Kitti said the projected deficit already includes the massive burden of financing losses incurred by the state rescue fund, Financial Institution Development Fund, which had been set up to bail out the financial sector.

Thai Rak Thai, which won Jan. 6 elections and leads the new government of Thaksin Shinawatra, has promised to establish a 1 million baht ($1=THB42.48) aid fund for each of Thailand`s 77,000 villages, freeze farmers` debt repayments for three years, and set up an asset management company to handle the banking sector`s bad debts.

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Crack police unit sends Ullrich home


A TEAM of 20 police from a special commando unit was deployed yesterday to ensure German fugitive Wolfgang Ullrich boarded a late-night flight to Frankfurt, where he will face fraud charges.

Ullrich, 56, was to be extradited on a Lufthansa flight, due to depart about midnight, with an escort of three officers from the Bundes Kriminalant, Germany`s criminal investigation bureau.

Commandos from the Arintharat taskforce escorted Ullrich from Bangkok Remand Prison to the headquarters of the 191 Patrol Unit pending his deportation. The taskforce`s main responsibilities include dealing with terrorist situations, including the rescue of hostages.

Taskforce commander Pol Lt Col Paithoon Manee-in said the decision for his unit to escort Ullrich was made after police received a tip-off, the nature of which he could not disclose.

However, a police source said rumours circulated that certain bosses of organised-crime gangs would try to silence Ullrich en route to the airport, or would launch an attempt to snatch him away.

On December 27, Bangkok`s Criminal Court overruled an appeal by Ullrich and ordered the suspected mafia boss be extradited within three months to Germany, where he is wanted for questioning in connection with fraud charges.

The court ruled that Ullrich`s appeal against extradition, on the grounds that German authorities did not have enough evidence to prosecute him for fraud and that his case had become politicised in Thailand, lacked sufficient proof.

It ordered that Ullrich be extradited within three months, or be freed in accordance with Thai law.

Ullrich has been charged by a Munich court with the embezzlement of about 21 million marks (Bt425 million) from 300,000 Germans who believed they were donating money to an animal protection foundation.

Efforts to extradite Ullrich to Germany were initiated immediately after the German was freed from a Thai jail on December 15, 1999, under an amnesty marking the 72nd birthday of King Bhumibol Adulyadej 10 days earlier.

Ullrich had been serving a two-year prison sentence in lieu of a Bt50-million fine for illegally importing a luxury yacht.

A long-time resident of Pattaya, where he owned several restaurants and businesses, Ullrich was originally arrested in September 1998 after being placed on a police blacklist of foreigners suspected of dealings in drugs and prostitution.

Although diplomatic and police sources claim Ullrich was a crime boss, a lengthy investigation into his business activities failed to prove his involvement in illicit activities. The German, thus, ended up being charged with the minor crime of avoiding customs duties on a luxury yacht he had brought into the country.

Ullrich`s case became front-page news in January 1999, when an opposition politician used the case as an example of corruption during a no-confidence motion against the government. The media hoopla eventually prompted an investigation into Ullrich`s background.

On April 26, Bavarian state prosecutors began extradition proceedings against Ullrich on suspicion he had committed large-scale fraud related to an animal welfare organisation.

Along with his accomplices, Ullrich is accused of having misappropriated an estimated 21 million marks in donations from German animal lovers between 1994 and 1997.

The Nation, Deutsche Presse-Agentur 15.2.01

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Bangkok seeks jump-start to talks


THAILAND wants the Asia Pacific Economic Cooperation (Apec) summit meeting in Shanghai later this year to result in a statement in support of quickly opening a new round of World Trade Organisation (WTO) negotiations.

Apinan Pavanarit, deputy permanent secretary to the Foreign Ministry, attended this week`s meeting of Apec senior officials in Beijing. He said yesterday that Thailand had reiterated its support for a new round of talks as soon as possible, perhaps by the end of the year.

An unequivocal statement from the Apec leaders, scheduled to meet on November 20 and 21, could provide a needed catalyst, since the grouping represents of 60 per cent of the world`s population and half of its GDP, he said.

The 4th WTO ministerial meeting is scheduled to be held in December at Qatar.

The last meeting in Seattle in November 1999 collapsed in acrimony, with anti-globalisation activists campaigning against further trade liberalisation, which they said has widened the gap between rich and poor nations.

Apinan said Thailand also stressed that Apec should place greater emphasis on assisting its members in meeting WTO obligations. He said trade and investment facilitation must remain the pillar of regional economic cooperation.

"As for Thailand, we called for a clear-cut measure to lessen the digital divide between developed and developing members," he said.

Small and medium-sized enterprises and the social safety net also need to be vigorously protected to cushion the harmful effects of trade liberalisation, as outlined in the 1996 Bogor Declaration, he said. According to the declaration, developed members are to fully liberalise their economies by 2010, and developing members by 2020.

Apinan said senior Apec members agreed that "there should not be too many new proposals and the group should instead focus on fully implementing the existing initiatives".

Bangkok also urged the WTO to accept China, Taiwan, Russia and Vietnam, which are Apec members, without delay, he added.

The Nation 15.2.01

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We`ll get tough, Thaksin warns


THAILAND would be forced to take unilateral action to stem the flow of illegal drugs from Burma if Rangoon failed to resolve the problem amicably, Prime Minister Thaksin Shinawatra warned yesterday.

"We must discuss the issue as neighbours, but if the talks do not settle the problem, we will have to deal with it in our own way, and this is an assertive policy," Thaksin said.

Thaksin, who had been expected to take a softer line on Burma than the previous administration, bluntly criticised Rangoon`s failure to stamp out massive drugs production within its borders.

"We are not pleased at the way Burma has allowed ethnic minorities to produce drugs along the border area and we have to be decisive on this issue," the new PM told reporters.

Thaksin`s statement followed hot on the heels of the latest tirade between the government and Rangoon over border clashes at the weekend and accusations of support for drug traffickers.

In a statement received in Bangkok, the Burmese government accused Thai soldiers of giving moral and military support to Shan guerrillas, who Rangoon claims are the region`s major drug producers.

Rangoon insisted it was trying to stamp out the drugs trade and said that serious cooperation from Thailand would be an effective approach to ending the problem.

"Without cooperation from Thailand, especially in the field of preventing essential chemicals from falling into the hands of organised crime syndicates and refraining from giving sanctuaries and support to armed criminal organisations ... any endeavour would be in vain," the statement said.

It also repeated a denial by the Burmese Army on Tuesday saying its troops had not fired shells at the border town of Mae Sai on Sunday. It blamed the attack on ethnic Shan rebels looking to damage relations between the two countries.

The Burmese Foreign Ministry, in an aide-memoire handed to Thai Ambassador Oum Maolanon on Monday, demanded that Thailand cease support for armed insurgents and not harm the "existing friendship" between the two countries.

Details of the memoire were published in the state-run New Light of Myanmar yesterday.

Thaksin had planned to visit the border town yesterday, but his trip was postponed. He said later he planned to visit Burma as soon as possible to iron out all related problems amid strong opposition from several quarters, including the outgoing administration and the House foreign relations committee.

Relations with Burma were more problematic than with any other neighbour and required urgent attention, Thaksin said.

"I don`t see going there as kowtowing to Rangoon. We have serious problems, so we need to talk things out," he said.

Meanwhile, chairman of the Senate Military Committee Gen Harn Leelanon yesterday suggested the moribund Internal Security Command should assume control of the country`s efforts to eradicate problems related to narcotics.

The former Fourth Region Commander said the Internal Security Command should be directed solely by the prime minister to ensure a higher level of efficiency. And military officers should be used in dealing with the Burmese junta.

"They don`t like to talk to politicians because they believe the words of military officers to be more credible," he said.

The Nation 15.2.01

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Shan army denies starting border clash


MAE SAI - The Shan State Army (SSA) yesterday denied accusations by Burma`s military government that it had instigated the recent clashes between Thai and Burmese troops, saying Rangoon was looking for a scapegoat.

"This is not true. We did not shell the town of Mae Sai or other Thai positions. [The Burmese] did it and are trying to blame us for it," said Sao Aung Mart, vice chairman of the Restoration Council of Shan State, the SSA`s political wing.

Aung Mart also told The Nation that the junta`s claim that the Thai Army and the SSA have joined hands to attack Burmese positions is groundless.

"They want to divide the moral support that the ethnic Thais have for the [Shan]," he said.

SSA leader Colonel Yawd Serk was expected to make a public statement on the allegation today, he said.

Thai and Burmese troops engaged in heavy fighting on Sunday following the latter`s refusal to depart from a Thai Ranger base camp at Doi Pang Noon, which the Thai Army said Burmese troops had overtaken by force.

The fighting spread to other areas, including Mae Sai district and town, where two people were killed and scores of area residents and soldiers were injured. Local residents soon deserted the area, turning the normally vibrant border outpost into a ghost town.

A breakthrough came yesterday, said Maj General Chamlong Phothong, deputy commander of the 3rd Army Region, who said The Township Border Committee will reconvene today in Tachilek to discuss the clashes. The committee agreed to meet in the afternoon.

Details for the discussions were not disclosed but Chamlong said, "we will listen to what they have to say."

"We`re not the guilty party here. [The Burmese troops] were the ones who started the whole incident," he said.

The Township Border Committee is a joint body of civilians and military from both countries that is designed to resolve border disputes at the local level. The mayor of Mae Sai town will be the co-chairman of the meeting, Chamlong said.

The entire Mae Sai district was tense again yesterday, with Thai military troops and tanks an ominous presence. Only a few tourists ventured to the border market, while a few girls were brave enough to give roses to the soldiers guarding the border.

Meanwhile, more troops from both sides moved into the area. Six more heavy artillery guns were headed towards Mae Sai town and later dispersed to various locations along the border.

The nearby Mekong River Operation Unit, a naval unit in Chiang Rai, also beefed up its patrol in the Golden Triangle area for fear that fighting could spread, an official said.

Officers in a border police unit at Doi Chang Moob, just outside the Royal Project at Doi Tung, were seen digging into their positions along an unmarked border area to prevent nearby Burmese troops from positioning their men there. Just a stone`s throw away, across a paved road that links Doi Tung to Mae Sai, was an outpost manned by nine Burmese soldiers, who, when visited by The Nation, declined to answer questions or comment on the conflict.

"The Thai villagers, who use to sell [the Burmese troops] food and other goods have stopped doing it ever since the clashes," said a Thai border patrol police officer manning an M-60 machine gun and keeping a close eye on the nearby Burmese unit. "It`s a little tense right now but hopefully the situation will improve soon."

Meanwhile, General Bo Mya, leader of the Karen National Union, a rebel group fighting for autonomy, said the Burmese government is seeking to control the border because it wants the area reserved for the United Wa State Army`s narcotics activities. The general said the Burmese attacks on his stronghold caused injuries and damages to his forces and properties.

"However, in the fighting with my forces, the Burmese troops were also injured and killed. In many hospitals, they are packed with wounded Burmese soldiers," Bo Mya said.

Bo Mya`s stronghold is opposite Tak province`s Mae Sot district.

BY JEERAPORN CHAISRI and

DON PATHAN

The Nation 15.2.01

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Somkid promises he`ll do it his way


SOMKID Jatusripitak yesterday promised to run the Finance Ministry as "my own man", countering some press reports implying that he would merely act as a medium for Prime Minister Thaksin Shinawatra.

"I have known and worked with Dr Thaksin for a long time. We know each other`s style. And I think he respects my opinion and what I am," he said in an interview with senior editors of the Nation Multimedia Group.

Over the past two days Somkid, 48, who is widely expected to become the new Finance Minister, has faced a barrage of criticism that his background in marketing might not be suitable for the tough finance portfolio.

But he said he was confident that his qualifications, earned through a decade-long experience in academic, financial, business and political circles, would earn him trust at home and abroad.

"My bachelor`s degree was in economics. I have a master`s in finance. But I happened to earn my PhD in marketing," he said. "In fact, I have never wanted to do marketing. My passion is public policy. I am also interested in exports."

He promised to do his utmost to restructure the economy and prevent the country from sinking into crisis again. He emphasised the importance of teamwork, promising to urgently implement, once the new government was formed, the legislation needed to stimulate growth and put money into the hands of consumers.

Somkid grew up in a large Chinese-Thai family, one of 10 children. His elder brother, Som Jatusripitak, also gained a reputation as a marketing man. Som became Somkid`s role model through his hard work to support himself and his family.

When Som went abroad to further his studies, Somkid promised himself that he would also earn an overseas degree.

Som found success in the corporate sector, rising to head Berli Jucker, the consumer products firm. He moved on to become president of Siam City Bank before leaving to serve briefly as commerce minister in the Chavalit government in 1997.

While he was still at school, Somkid was financially supported by his uncle. He went to Thammasat University for his first degree before getting his masters at the National Institute of Development Administration (NIDA).

There he met Thanong Bidhaya, who earned his PhD at Northwestern University. Later on, Somkid won a government scholarship to study at Northwestern.

The Northwestern connection allowed him to collaborate with Dr Philip Kotler, a world authority on marketing, to write a book, called "The Marketing of Nations". The book outlined how countries could improve their competitiveness through marketing and appropriate policies to support it.

Somkid has enjoyed a varied career. He taught at NIDA but quickly found out that he would need experience in the private sector to become an effective lecturer. He has been an adviser to the Stock Exchange of Thailand and played a role in the establishment of the Phatra Research Institute, which was attached to the now defunct Phatra Thanakit Plc.

In the business world, Somkid came into contact with the Saha Pattanapibul Group, which had more than 200 subsidiaries. There he had access to Thiem Chokewattana, the late founder of the giant consumer-products group, and learnt a great deal about business practices.

The sales patterns and inventory build-up at the group were important indicators of the health of the economy and Somkid said this helped him to understand the economic relationship between the agricultural and manufacturing sectors.

Somkid was a secretary to Thaksin when the latter served as foreign minister in the Banharn government. When Thanong took over as finance minister in the Chavalit government, Somkid was picked as his secretary.

He gradually emerged from the shadow of his mentors to become his own man. When Thaksin founded the Thai Rak Thai Party two years ago, he called on Somkid to work as a top aide. Somkid recruited Pansak Winyaratn, a former chief adviser to the late prime minister Chatichai Choonhavan, to become one of the Thai Rak Thai`s advisers.

Somkid and Pansak, one of the pioneers of the small and medium-scale enterprise sector, would form an inner circle that played an important role in bringing in political marketing to help in the Thai Rak Thai`s landslide election victory.

Somkid`s orientation in marketing and strategy in the running of the government has entrenched a public image that he is a marketing man. Indeed, most of his academic writings, for instance his "Thailand Inc: Concepts and Strategy", stress how Thailand should use marketing to improve its competitiveness.

He has suggested in his articles that the government should be run as a business enterprise. One of his articles described how politicians could adopt marketing to achieve political ends. The Thai Rak Thai`s election victory, in part, is due to Somkid`s strategic thinking.

Somkid acknowledges that he faces a hard task, and that he will come under constant scrutiny which will affect his privacy and family life. Somkid`s wife teaches at Chulalongkorn University. They have two children.

"I love privacy. But now I might not be able to walk at Discovery Centre with my two kids without drawing the attention. But that is the sacrifice," he said.

Somkid looks upon his impending appointment as finance minister as destiny. "My late ti [father] would be proud if he had ever known that two of his children had made it to a ministerial posts," he said.

BY THANONG KHANTHONG

The Nation 15.2.01

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Stay the course, urges Tarrin


OUTGOING Finance Minister Tarrin Nimmanahaeminda has put a fat 251-page document on the Ministry of Finance`s website, outlining his three-year effort to turn the economy around and making recommendations for the new government.

The document, which can be browsed at www.mof.go.th, sought to defend the reform work of the Chuan government, which rescued the country from the brink of total collapse and laid the groundwork for economic recovery.

The momentous reforms encompass fiscal and monetary policy, financial institutions, the real sector, and the social safety net.

The document also covers public debt, current economic conditions and future steps to ensure economic health.

Tarrin advocated a liberal economy linked to globalisation. He said it was necessary for the country to adjust itself to globalisation by reforming the economy to a position of strength.

"Thailand should try to benefit from and minimise the impact of globalisation by protecting the good parts of the country. It should also try to tackle poverty in preparation for the future," he wrote.

He recommended that the next government maintain macroeconomic stability and operate with transparency to allow the financial markets to correct any imbalances.

Tarrin urged the new government to maintain fiscal discipline, improve the efficiency of tax collection, accelerate the privatisation of state enterprises, reduce the creation of foreign debts and invest public money in productive projects.

When the Chuan government took office in November 1997, public debt stood at Bt1.9 trillion. By October last year, public debt had risen to Bt2.79 trillion, equivalent to 56 per cent of the gross domestic product.

The rapid rise came from the need to bail out the financial system and to stimulate the economy through deficit spending.

Tarrin also called for further efforts to strengthen the financial system to prevent the crisis from happening again. The new government would need to seek early passage of numerous bills on the unfinished reform agenda. These include amendments to the Bank of Thailand Act and Currency Act, amendments to the Commercial Banking, the Credit Bureau, the Credit Card Business Act, the Leasing Business Act, the Factoring Business Act and the Corruption Prevention Act, the Deposit Insurance Institution Act and the Pension Reform Act.

To improve the country`s competitiveness, Tarrin said companies should not only try to reduce production costs, but should also improve corporate governance and work environments, provide worker training and attain international accounting best-practice standards.

Tarrin also emphasises public policy to promote equitable growth to tackle social problems, apart from further efforts to reform the bureaucracy and political system.

BY THANONG KHANTHONG

The Nation
15.2.01

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Govt willing to ease bank rules


THE new government is open to easing certain regulations to allow commercial banks to extend more credit and stimulate the economy, Somkid Jatusripitak said in an interview yesterday.

Prime Minister Thaksin Shinawatra is scheduled to meet members of the Thai Bankers Association tomorrow, and will be open to talking about such measures.

In an interview with Nation Group`s senior editors, Somkid said restoring confidence would be his primary objective after taking the helm as the youngest finance minister in modern Thai history. He is 48.

"It is my duty. It is fate. It is the will of my senior, who sees me as suitable [for the finance post]," he said.

"I want ultimately to use fiscal policy to reform the country and make its vital institutions - decayed ministries, education and manpower, small businesses, whatever they may be - stronger. If we don`t do anything we will face an even bigger crisis than the one we have just experienced," said Somkid, one of Thaksin`s most trusted aides.

Somkid said he would work hard to win the confidence of the international community, and said his first overseas trip probably would be either to Japan or China.

A recent meeting with the local representative of the International Monetary Fund (IMF) had gone well, he said, with the Washington-based organisation offering to advise and accommodate the new Thai government.

Somkid has asked the Fiscal Policy Office to work out the goverment`s debt-repayment obligations on an annual basis so he can reassure the foreign community of the country`s ability to service its debts, rather than "simply having wholesale attention focused on non-performing loans and expenditures".

"International creditors should be aware of our debt-expenditure stream so they can be assured of our financial stability," he said.

"The international community should have confidence in Thailand as we have many strong points. We will recover and become stronger. The crisis is an opportunity to strengthen the pillars of our nation," he said.

In the immediate term, Somkid said, the government must take the lead in stimulating the economy under a macroeconomic framework. That platform should maintain the budget deficit below 5 per cent of the gross domestic product (GDP), a surplus in the balance of payments and current account, and low inflation, he said.

Somkid said he anticipated no problems in finding money to finance the spending plans, which some members of the Thai Rak Thai Party have said could top Bt100 billion. Sources of money include the existing budget, available cash from existing spending projects which would either be delayed or aborted, unused World Bank loans for structural adjustments and the Government Savings Bank`s ample liquidity, he said.

The Thai Rak Thai`s campaign promises, including a debt moratorium for farmers, a national asset-management company and a Bt1-million development fund for each village, would be implemented at the same time, he said. Details are expected to be worked out within 30 days, he said.

Somkid said the Thaksin government would form a national holding company to centralise and execute privatisation of state enterprises in a swift and efficient manner. The plan is expected to generate substantial income.

"The beauty of holding 300 or so seats in the House [of Representatives] is that we can enact or amend laws quickly," he said.

To give banks more ability to lend, the government is open to easing banking regulations and practices, including the Bank for International Settlements ratio and the period for writing off doubtful loans and bad debts, he said.

"It is not a reversal of policy, but we can make revisions if need be. For example, with the BIS ratio at 8.5 per cent, Bangkok Bank is cautious about lending. We can also provide incentives for banks to lend more," he said. "Bankers need to have the confidence to lend."

The Market for Alternative Investment, venture capitalists, and the capital markets can all help to stimulate the economy, said Somkid, a former adviser to the Stock Exchange of Thailand.

"We need to be accommodating. The aim is to get available liquidity to the small and medium-sized enterprises, which are the backbone of the economy," he said.

Somkid declined to give a timeframe for when the public could expect to see results from the government`s policies.

"The fact that the prime minister is in charge of [the economic team] should be reassuring," he said.

The Nation 15.2.01

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Court approves TPI recapitalisation

Filed at 02 : 16 pm (THLD time) The Nation 15.2.01


The Central Bankruptcy Court has approved Effective Planners plc`s proposal for the US$756-million recapilisation of Thai Petrochemical Industry plc which will result in a 75 per cent shareholding for creditors.

Prachai Leophairatana, the former major shareholder of TPI, said the firm`s earnings before tax, interest, and depreciation had fallen to Bt400 million from Bt1 billion per month because its full production capacity could not be utilised.

Even though, the firm still has a cash surplus, he said Effective Planners does not use it to increase output. TPI`s refinery, the upstream unit for petrochemical products, is currently operating at only 60,000 barrels per day, less than its full capacity.

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Surakiart vows to normalise ties with Burma

Filed at 03 : 22 pm (THLD time)


BANGKOK, Feb 15 (The Nation) -- Deputy Thai Rak Thai leader Surakiart Sathirathai, tipped to become Thailand`s next foreign minister, said on Thursday the Thaksin Administration would seek to restore close relations with Burma through informal contacts with Rangoon leadership.

Surakiart said on top of the new government`s foreign policy was the effort to normalise relations between Thailand and Burma through mutual respect and non-interference in one another`s internal affairs in order to build trust.

"The normalisation of relations with Burma will be augmented by the nurturing of personal relationships between Thai and Burmese leadership that will make it possible for top officials from both sides to resolve bilateral problems through informal channels," he said.

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Global slowdown hits IT exports


THE impact of the global IT-industry slowdown - which has already resulted in hundreds of thousands of job losses in North America and elsewhere - is now spreading to Thailand`s leading export sectors, the electronics and computer-related industries.

Although no job cuts have been reported so far, at least two leading exporters, Fujitsu (Thailand) Co and Philips Semiconductors, are suspending capacity-expansion projects announced only months ago.

Both firms are among the country`s top-10 export companies.

Philips executives told The Nation yesterday that the leading semiconductor manufacturer had recently decided to shelve its US$700-million (Bt29.7 billion) investment project until the semiconductor industry showed signs of recovery.

Late last year, Netherlands-based Philips said it had been evaluating Thailand, Malaysia and China as potential locations for a new semiconductor factory.

In a telephone interview with The Nation, Fujitsu (Thailand) Co executive vice president Shunji Nakamura said the hard-disk-drive company had decided to suspend a $60-million investment plan for capacity expansion this year.

The freezing of the expansion, plus the effects of the sharp downtrend in hard-disk prices, has caused the Japanese-owned company to project an unprecedented zero growth in export revenues for this year, according to Nakamura.

Hard disks and semiconductor products, including integrated circuits, contribute the bulk of Thai electronics exports, with the sector having been the No1 export contributor to the Kingdom for many years.

The worldwide economic slowdown, which is being especially felt in the United States, has caused Internet and other IT-related investment to cool down. The situation has affected many suppliers in the hard-disk drive, cellular-phone and electronic components businesses.

For hard-disk drives in particular, prices have declined by 15 to 20 per cent as a result of falling demand and severe price competition, Nakamura said.

"We are monitoring the situation, while controlling production and inventory", he said, adding that he hoped economists were right in predicting the US economy would recover by the end of the year.

He explained that the global situation in the hard-disk drive sector would adversely affect the performance of Fujitsu (Thailand) Co, which is totally reliant on exports. One third of the company`s exports go to the US, while the remainder is shipped to Europe and Asia, including Japan.

The company forecasts no change in its total export value for this fiscal year, ending in March next year. Despite a 20-per-cent increase in production volume this year, its exports will be almost similar to last year`s figure of $1.2 billion.

"Fortunately, we have increased capacity, so we can maintain exports. Profitability will be more difficult to achieve," Nakamura said.

About 90 per cent of the firm`s export value is generated from disk drives, with the remainder coming from printers and transmission components.

Fujitsu (Thailand) Co will reconsider next January whether to go ahead with its suspended $60-million expansion project. "We will not make a decision to expand capacity further until signs of recovery are shown," said Nakamura.

As part of its overall $400-million investment plan announced in 1998, the company has to date invested $60 million a year in order to raise output over the past three years. Maximum hard-disk-drive capacity now stands at 1.2 million pieces a month, an increase of 40 per cent since 1998, he said.

Meanwhile, Fujitsu (Thailand) Co has increased its workforce at its Navanakorn Industrial Estate, Pathum Thani, plant by only 20 per cent over the period, to 7,500. The relatively small increase in staff numbers is down to the company bringing in automated machinery for its production lines. The move is aimed at ensuring better quality, while controlling production costs so that Fujitsu can compete with exports from the Philippines, Indonesia and China, Nakamura added.

The company`s original target was to achieve total sales of Bt74 billion and an expanded workforce of 18,000, after the completion of its major expansion programme this year.

BY NAREERAT WIRIYAPONG and

NARANART PHUANGKANOK

The Nation 15.2.01

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Out of bankruptcy, BSI says mergers now on


HAVING emerged from bankruptcy yesterday, Bangkok Steel Industries Plc (BSI) says it`s now ready to proceed with its planned merger with two large-sized steel makers - NTS Steel Group Plc and Siam Cement Group`s cement business.

"From now on, we`re free to proceed with the merger negotiation," said BSI president Prasert Tangtrongsakdi.

The merger plan was announced last year, but NTS and BSI were under court restrictions that prevented them from inking any deals. BSI and the Siam Cement Group are now ready to sign a deal, although NTS`s creditors have yet to agree to a business rehabilitation plan.

The Central Bankruptcy Court yesterday dropped a bankruptcy petition against BSI, the second case after Thai Identity Sugar Co Ltd. The court ruled that BSI was solvent, as its assets were greater than its liabilities.

Under the latest appraisal, BSI`s assets stood at Bt20.78 billion, above outstanding debts of Bt19.8 billion.

Earlier, the two major creditors - Bangkok Bank (BBL) and Siam Commercial Bank (SCB) - that filed the bankruptcy petition against BSI had argued the company was insolvent, with Bt10 million more in liabilities above its assets. The indebted steel maker owes Bt2.99 billion to BBL and Bt1.39 billion to SCB.

However, the court said the creditors` figures were lower than the actual value of the company, particularly in the valuation of BSI`s stakes in BSI Steel Construction Co Ltd.

The creditors valued the stake at Bt1.8 billion. But the court said BSI`s total assets instead totalled Bt20.78 billion, which is Bt1.7 million above its liabilities. (The court based its figure on an investment cost of Bt6 billion, plus Bt3 billion profit, and an unrealised Bt2 billion incurred from a debt settlement.)

Prasert said after the court`s ruling his firm would negotiate to restructure the debts out of court.

"We will seek eight to 10 years in payment delay, plus a grace period. We will also propose the conversion of partial loans to equity and also debt forgiveness," he said.

After completing a debt revamp plan, the company would resume talks on a merger with the two steel companies, he said.

BSI had net sales revenue of Bt7 billion last year.

BY SOMLUCK SRIMALEE

The Nation 15.2.01

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TELECOMMUNICATIONS


Thaksin to review phone contract
ACT Mobile`s deal hangs in the balance


Post Reporters 15.2.01


A proposed low-cost mobile phone service is now hanging in the balance following yesterday`s announcement by Prime Minister Thaksin Shinawatra that he would review the project.

He made the comment just one day after ACT Mobile hastily signed a 2.8-billion-baht contract with its suppliers.

ACT Mobile is a joint venture of the Telephone Organisation of Thailand, the Communications Authority of Thailand and Aeronautical Radio of Thailand. It plans to charge consumers 300 baht a month, compared with 500 baht charged by other operators.

Suppliers said they were adopting a wait-and-see attitude when asked to comment on Mr Thaksin`s decision.

Siemens president and chief executive Dr Ockert Van Zyl said Siemens would continue for now to plan the network for which it had been contracted by ACT Mobile.

"We have the largest and strongest team to work on network planning and we will go ahead with it," he said.

Siemens, Ericsson and Mitsui make up the consortium that signed the deal with ACT Mobile this week. The contract called for ACT Mobile to pay the group 10% or 280 million baht as a deposit, which could be confiscated if the project was later scrapped.

Dr Van Zyl said he was reluctant to comment on what could happen if the project terms were changed, as the issue was delicate and complex. However, he said the signed contract assured suppliers of a "firm commitment".

An Ericsson executive also said his company would not resort to legal action if the project did not get started as planned.

Prime Minister Thaksin said the project had to be reviewed after requests by so many people.

"It is also the policy of the new government to not only review this project, but also all mega-projects involving investment capital of more than one billion baht."The Thai Rak Thai Party leader said that he did not want anyone to interpret the contract signing on Tuesday as the last act of the outgoing government, and that he himself also had no intention of killing the project.

"As a matter of fact, once a project has been going on at some level, it is not easy to scrap it. Anyway, the project must certainly be examined."Earlier, a Thai Rak Thai Party spokesman said that the review might not mean the project would be scrapped, as it could be downsized or otherwise modified.

TOT executives would not comment on Mr Thaksin`s statements.

Pornchai Meemak, secretary-general of the TOT employees` union and a member of ACT Mobile`s board of directors, said the new government had the right to recall the project to review it in detail. "But it could not make changes because contracts have been signed with suppliers," he said.

Besides, all procedures leading to the contract signing were transparent and could be scrutinised, he said.

Tuesday`s contract signing was described by a TOT source as very "hush hush" and closed to the media. However, ACT Mobile chief executive Somkuan Bruminhen said a news conference would be called today to discuss the agreement.

Mr Pornchai, meanwhile, said the investment for the project relied on the national budget only for its first phase, while subsequent investment would come from ACT Mobile`s own funds or from suppliers` credits or bank loans.

The prime minister, he said, should be very familiar with how much money the project needed, given his telecoms background.

"In fact, the prime minister should stay neutral. However, if the government wants it downsized, then it might not invest in the second phase and [ACT Mobile would] just rely on other operators for a roaming service instead," Mr Pornchai said.

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Thursday, 15 February 2001
Which way for Thai youth?
Following my writing about Valentine`s Day yesterday, there has been fresh debate in the Thai-language press about the conduct of Thai youngsters.

By and large, columnists bemoan the fact that more and more young people are obsessed by material wealth. And as morality and decency are no longer considered an essential component of goodness, the young are easily tempted to stray for quick and easy money to keep up with their peers.

Writing in Manager Daily, columnist Samart Mangsang says the consumerist culture, coupled with a breakdown of the family institution, has driven many young Thais to engage in sex for money.

In one of the recent examples of such sexual deviation, a 64-year-old deputy Senate speaker was caught having sex with four underage schoolgirls in a motel on the outskirts of Bangkok. The girls, reportedly from poor families, received huge sums of money for their services.

Child prostitution is not new in Thailand, but the fact that a person of high social and political status had stooped to such an immoral act is beyond comprehension, the columnist says.

``Thai society is morally crippled and it will get worse without concerted efforts to remedy it,`` he adds.

Commenting on the same subject, columnist Kobkul Kaewtip of Matichon says things have changed so rapidly in Thailand during the past two decades of booming economic development. And this has taken a heavy toll on the vital components of Thainess, or the sensibility to which Thais have adhered in their relationships with parents, siblings, friends, teachers and society in general.

``Young people are now competing for material gains. They show off their wealth with designer clothes, handbags, shoes, watches and so on,`` says Kobkul.

Both columnists agree that the government must set proper values to steer young people away from the lure of consumerism. And this must be done in conjunction with the promotion of a self-sufficient way of life and the revitalisation of the Buddhist concept of what it means to be good.

As Khao Sod daily points out in its commentary, Thai parents must spend more time with their children and give them more love and care.

``Many parents now don`t have time for their children and they try to compensate for it by pampering their children with expensive gifts,`` the paper says.

With his ``think anew, act anew`` policy, the paper adds, Prime Minister Thaksin Shinawatra must take the lead in containing the rampant consumerism in Thai society.


* Songpol Kaopatumtip is the Editor of Sunday Perspective Section of the Bangkok Post

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Thursday, February 15 4:30 PM SGT

Thailand,Myanmar Fail To Agree On Troop Pullback
MAE SAI, Thailand (AP)--Thailand and Myanmar failed to agree Thursday on pulling back troops from their tense border where the worst fighting in years occurred last week, officials said.
They said border officials of the two countries met for the first time since Sunday`s fighting, but came away without agree any measure to ease tensions.

Myanmar refused to talk about withdrawing troops until there was a resolution to a border demarcation dispute and compensation for the damage to property and civilian deaths, a senior official who participated in the talks said, on condition of anonymity.

The two rounds of talks were held in the border towns of Mae Sai in Thailand and Tachilek in Myanmar. The Thai side was led by Maj. Gen. Thawat Jaruklas, military commander of the northernmost province of Chiang Rai, and the Myanmar side by Lt. Col. Aye Zaw, chairman of Tachilek township committee.

"Myanmar demanded compensation and immediate resolution of the border dispute, which was beyond my authorization," Thawat told reporters.

"So I have to report their demands to my superiors for consideration," Thawat said in Mae Sai, 720 kilometers from the capital, Bangkok.

Myanmar and Thailand have positioned reinforcements along a stretch of the northern border where fighting between Myanmar troops and the separatist Shan rebels had spilled into Thailand. At least 19 combatants were killed on both sides.

During the fighting, Myanmar shells landed in Mae Sai, killing two civilians. Thailand also fired artillery shells at Myanmar troops, accusing them of intruding into Thai soil. Myanmar says three civilians were killed.

The two countries have traded barbs since the hostilities subsided Monday.

With the impasse continuing, the Mae Sai-Tachilek checkpoint and other nearby border trading points would stay closed until further notice, Thawat said.

Thailand had shut the border crossings Tuesday for safety reasons and to deny supplies to Myanmar forces.

Myanmar`s military government accuses the Thai army of being in cahoots with the separatist Shan rebels, who are based along the Thai-Myanmar border, and giving them artillery support. Thailand denies the accusation.

Prime Minister Thaksin Shinawatra said Thursday he would address the Myanmar issue when his Cabinet starts work next week. He told reporters he still planned to make an early visit to Myanmar.

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Thursday, February 15 6:00 PM SGT

Bangkok Closing Stock Prices
Prices in baht

Close Prior Change % Change
Advance Agro 13.50 13.75 -0.25 -1.82
Advanced Info Service 450.00 456.00 -6.00 -1.32
BEC World 240.00 234.00 +6.00 +2.56
Bangkok Bank 38.25 39.00 -0.75 -1.92
Bangkok Bank (Foreign) 52.50 53.00 -0.50 -0.94
Bangkok Expressway 10.00 10.00 Unch Unch
Bank of Ayudhya 8.00 8.10 -0.10 -1.23
Bank of Ayudhya (Foreign) 8.00 8.20 -0.20 -2.44
Cogeneration 12.25 12.00 +0.25 +2.08
DBS-Thai Danu Bank 8.60 8.70 -0.10 -1.15
Delta Electronics 208.00 193.00 +15.00 +7.77
Electricity Generating 31.50 31.50 Unch Unch
Hana Microelectronics 89.50 87.00 +2.50 +2.87
Industrial Finance Corp 8.40 8.60 -0.20 -2.33
Italian-Thai Development 12.50 12.50 Unch Unch
Krung Thai Bank 13.50 13.50 Unch Unch
National Finance 8.40 8.60 -0.20 -2.33
PTT Exploration 98.00 96.00 +2.00 +2.08
Shin Corp 208.00 208.00 Unch Unch
Shin Corp (Foreign) 220.00 220.00 Unch Unch
Siam Cement 298.00 298.00 Unch Unch
Siam Cement (Foreign) 426.00 428.00 -2.00 -0.47
Siam City Cement 113.00 115.00 -2.00 -1.74
Siam Commercial Bank 27.25 28.25 -1.00 -3.54
Siam Makro 61.00 60.00 +1.00 +1.67
TelecomAsia Corp 24.00 23.75 +0.25 +1.05
Thai Airways Intl 32.25 32.25 Unch Unch
Thai Farmers Bank 24.00 24.50 -0.50 -2.04
Thai Farmers Bank (Foreign) 27.00 27.75 -0.75 -2.70
Thai Union Frozen Products 56.50 57.00 -0.50 -0.88

Source: Reuters Group PLC

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Schlussbericht SET(Deutsch):

http://de.biz.yahoo.com/010215/126/1cfny.html

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Thursday, February 15 7:37 PM SGT

Asia Markets Shares Close Mixed Feb 15, 2001
A round-up of Asian stock markets for Feb 15, 2001 prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, Feb 15 Asia Pulse - Asian share markets closed mixed today in the absence of strong leads from Wall Street where investors pushed the tech-heavy Nasdaq composite higher but sold off old-economy blue chips.

In Taipei, share prices soared 3.7 per cent to the year`s high following an overnight rally on the Nasdaq and the government`s decision to resume work on the country`s fourth nuclear power plant, analysts said.

The Taiwan Stock Exchange weighted price index rose 216.56 points to 6,104.24, pushed by strong gains in semiconductor shares after Nasdaq`s overnight rises.

In Tokyo, share prices inched up 0.3 per cent in directionless trade, led by gains in semiconductor issues following a rally of technology stocks in New York, dealers said.

The Nikei-225 index climbed 43.33 points to close at 13,327.39.

Singapore share prices edged up 0.5 per cent led by technology-related stocks after gains on the Nasdaq, dealers said.

The Straits Times Index added 9.45 points to finish at 1,975.55.

Jakarta shares surged 4 per cent on news that major telecommunications companies Telkom and Indosat agreed to end their cross holdings in major affiliates, analysts said.

The JSX Composite index climbed 17.009 points to close at 440.223.

The market in Manila closed 0.02 per cent higher, with many investors sidelined until a clearer indication of the government`s economic plans, brokers said.

The Philippine Stock Exchange benchmark index rose 0.31 points to 1,688.05.

Elsewhere, Hong Kong slipped 0.7 per cent in the absence of fresh buying incentives, brokers said.

The Hang Seng index lost 104.05 points to end at 15,756.37.

Shares on the Korea Stock Exchange fell 0.03 per cent on a selling spree by institutional and individual investors.

The index opened higher following an overnight rally on the U.S. Nasdaq market. But profit taking and program selling overran earlier gains.

The benchmark Korea Stock Price Index (KOSPI) closed down 0.2 point at 603.63.

Australian share prices closed 0.7 per cent lower after three days of gains today on poor performances by News Corp and Telstra stocks.

The All Ordinaries index fell 22.6 points to 3,272.2, while the SP/ASX 200 index slumped 24.4 points to close at 3,325.7.

Share prices in Kuala Lumpur weakened 0.5 per cent amid poor sentiment in response to the fall of the Dow Jones Industrial Average, brokers said.

The KLSE composite index dropped 3.21 points to close at 711.33.

Bangkok fell 0.03 per cent on profit-taking in banks and finance shares although there was mild speculative buying of electronics and energy firms ahead of the news of the new Thai cabinet expected to be released on Saturday.

The Composite SET index dipped 0.10 points to finish at 315.15

THURSDAY INDICES:

* SYDNEY - All Ordinaries 3272.2 (down 22.6 points)

* HONG KONG - Hang Seng 15,756.37 (down 104.05 points)

* SEOUL - Composite 603.63 (down 0.2 points)

* TAIPEI - Weighted 6,104.24 (up 216.56 points)

* TOKYO - Nikei 13,327.39 (up 43.33 points)

* MANILA - Composite 1,688.05 (up 0.31 points)

* SINGAPORE - STI index 1,975.55 (up 9.45 points)

* JAKARTA - Composite 440.223 (up 17.009 points)

* KUALA LUMPUR - KLSE index 711.33 (down 3.21 points)

* BANGKOK - SET Index 315.15 (down 0.10 points)

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Meinungen aus dem Seamico-Forum ueber die Entwicklung des SET in den naechsten drei Wochen:

Thursday, February 15, 2001 11:45:44 AM]
Subject : from 295-300 to where?
Message : I`ve taken your advice now many times Khun Puwadol, and offloaded my entire port when the market was 330+ I am now waiting to buy in again. How long do you think it will be before we see 295-300, and from there, how long until the market reaches say 370 in your opinion?

Name/E-mail : Deiter Kroll





[Thursday, February 15, 2001 12:00:06 PM]
Message : It should be within three weeks that an index to hit 300-level. The market would then stabilize and could upsurege to its marjor target of 370 by mid of May, I guess.

Name / E-mail : [e-mail]





[Thursday, February 15, 2001 12:21:04 PM]
Message : Many thanks Khun Puwadol.

Name / E-mail : Deitr Kroll





[Thursday, February 15, 2001 12:27:46 PM]
Message : Thank you Khun Puwadol.

Name / E-mail : the ape





[Thursday, February 15, 2001 3:22:53 PM]
Message : I have sold my entire port at 317 on your call Khun Puwadol when you first say sell all banks and fincos.. they are still trading higher that I sold them at.. What should I do?

Name / E-mail : the other monkey





[Thursday, February 15, 2001 3:37:09 PM]
Message : Buy back at 295-300.

Name / E-mail : [e-mail]


Khun Puwadol hat normalerweise immer ein feines Naeschen ! Mal sehen ob er auch diesmal Recht behaelt?

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Wer haette das im Land des Laechelns fuer moeglich gehalten oder wie Stadtraete ihr Meinungsverschiedenheiten mitunter loesen!

Another Thai town councillor shoots colleagues
BANGKOK - In the second such case in two days, a town councillor fatally shot two colleagues after a council meeting yesterday and then turned the gun on himself, police said.

Mr Chucheep Iamyim, 40, walked out of the meeting after an argument with three other councillors over installing electricity poles in the central town of Ban It, said police spokesman Capt Nuthakom Sukkasi.

He added that Mr Chucheep waited outside for the meeting to finish and fired his pistol when the three walked out.

Two of them were hit and died on the spot, while the third councillor escaped unhurt.

Mr Chucheep then used the pistol to commit suicide before police arrived, said Capt Nuthakom.

According to police, Mr Chucheep and his victims had quarrelled about the position of new electricity poles - they were apparently not installed in the neighbourhoods he had recommended.

The three victims were old rivals of Mr Chucheep, having ousted him as council chairman earlier.

On Tuesday, Mr Meelarb Thepchim, 33, a councillor of the Pak Sae town in southern Thailand, fired his .45-calibre automatic rifle at 11 other councillors, killing three of them, during an argument in a council meeting.

Police said the other members had opposed Mr Meelarb`s budget allocation plan, including the purchase of trash bins.

Violent fights between town councillors is not uncommon in Thailand where many of them are rich businessmen or influential leaders and carry guns to protect themselves. --AP 15.2.01 --

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AMC Should Buy Up All Bank NPLs, Say Experts

Staff writer, bday.net 15.2.01

The NATIONAL asset management company (AMC), if established by the new government, should buy all non-performing loans (NPLs) held by commercial banks at a price of 40-60 percent face value, according to experts.

Kitti Limsakul, a member of the Thai Rak Thai party`s economic team, said at a seminar on "A National Assets Management Company" organized by the faculty of economics, Chulalongkorn University, that the AMC should buy NPLs from a bank as a job-lot, so that banks cannot sell only those loans which are beyond rescue.

He also said that the government could partially fund the project by issuing a total of 400 billion baht in 10-year maturity bonds.

Sharing the same view was another panelist, Olarn Chaiprawat, director and advisor to the executive board of Siam Commercial Bank, who said that purchasing bad debts as a job-lot makes for easier management and that most of the NPLs in the banking system now are those from the small and medium-sized enterprise sector.

Kitti also recommended that after absorbing all the NPLs, the AMC should group them according to volume

According to him, the first group should include debtors owing more than 10 million baht, the second those owing five-10 million baht and the last group should be reserved for minor debtors.

Olarn also agreed with the idea of buying bad debts at around 40-60 percent of face value but added that the acquired assets should not be offered for sale because their price would then plummet.

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Teachers shocked by teen nightlife


SOME teachers expressed shock and disbelief at what they discovered during a trip to trendy pubs along Royal City Avenue on Wednesday night.

The General Education Department led about 200 teachers on a tour of the district, where they found pubs filled with drunken minors, some of whom were in various stages of physical affection.

"I feel sad to see children so young risking their future for a momentary pleasure that they are probably unprepared for," one teacher said.

That night, police rounded up 85 youngsters under 18 from pubs located on what is known as "Sin Strip" among revellers. Most of them were released into a parent`s custody after the police notified them of their children`s behaviour.

Maj General Theerasak Nguanprasert, chief of Metropolitan Police Region 1, said he would impose a 10-day closure order for every pub found catering to minors.

Education official Damrong Sukhawan said teachers were shaken after seeing firsthand that their students were preoccupied with drinking, drugs and sex amid the blare of dance music.

"I think family members, teachers and other concerned people must sit down together and work out a solution on how to help young children resist the temptation of nightlife," one teacher said.

He said he was especially concerned about the young generation`s changing moral values. In a culture of instant gratification, they tend to degrade sex from an expression of love into a means of physical pleasure and commercial gain, he said.

"A rising number of young and affluent girls are willing to sell their bodies in order to support their lifestyle."

BY PONGSAK BAI-NGERN

The Nation 16.2.01

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Resistance grows as Cabinet names emerge


THE apparent appointments of Thai Rak Thai Party members Chucheep Harnsawat, Sudarat Keyuraphan and Natee Klipthong to key Cabinet posts have received strong opposition from the party`s ranks, academics and other groups.

Prime Minister Thaksin Shinawatra insisted yesterday that Chucheep, a member of Snoh Thienthong`s Wang Nam Yen party faction, would become agriculture minister. But several Thai Rak Thai MPs said they could not accept his appointment to the post.

Meanwhile, Public Health Ministry officials said Thai Rak Thai deputy leader Sudarat was not qualified to become public health minister.

And a group of Sukhothaithammathirat Open University lecturers said Natee, who is tipped to become deputy agriculture minister, should not receive a Cabinet seat because of his allegedly tainted record while working at the university.

"You can`t expect everything to be 100 per cent perfect," Thaksin said when asked about Chucheep`s image problem.

Phattarasak Osathanukroah, a Thai Rak Thai MP from Bangkok, said he was against the appointment of Chucheep as agriculture minister.

"If Snoh and New Aspiration Party deputy leader Chalerm Yoobamrung could not become Cabinet members, how can Chucheep become one?" Phattarasak asked.

"Chucheep has an image problem … It would be better to appoint Chat Thai MP Newin Chidchob for the post because he is hard working," he said.

A Thai Rak Thai source said Prapat Panyachartrak, who is tipped to be a deputy agriculture minister, was concerned that Chucheep would be an obstacle to the implementation of the party`s agricultural policies.

Nitirat Supsomboon, an adviser to the Assembly of the Poor, a rural grassroots organisation, said Chucheep was not qualified to become agriculture minister and did not understand farmers` problems.

He said one farmer had committed suicide because Chucheep had ignored farmers` problems when he served as agriculture minister during the Chavalit government.

A source from the Public Health Ministry said many officials at the ministry were unhappy over the news that Sudarat would be made public health minister.

"They were disappointed to know that Thaksin would give the post to Sudarat because she does not know anything about public health issues," the source said.

The source said the public health minister should be a doctor.

An assistant rector at Sukhothaithammathirat, Kowin Wiwattanapong, led a group of 10 lecturers from the university to meet Thai Rak Thai adviser Snoh yesterday to express their opposition to Natee`s appointment.

Kowin said Natee had an "unclean" working record while serving as deputy rector at the university. Kowin said the Office of the Auditor General had found irregularities at a building project under Natee`s supervision.

"We were surprised Cabinet secretary-general Vishanu Krua-ngarm failed to find anything when checking Natee`s record," Kowin said.

In a counter move, a group of 30 farmers sought to assure Thaksin that Natee was qualified to become deputy agriculture minister.

Sunthorn Nikhomrat, leader of the group, submitted a letter to the premier, saying they supported Natee for the post.

The Nation 16.2.01

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Lawsuit targets PM`s brother


PRIME Minister Thaksin Shinawatra`s younger brother and his wife have been sued for bankruptcy by a firm that bought their companies` bad assets from the Financial Sector Restructuring Authority.

Payap Shinawatra is one of six defendants named in a lawsuit by Strategic Asset Co, which alleges they failed to pay a total of Bt2.1 billion in debts and interest.

The other defendants are Payap`s wife Porhathai, Shinawatra Development Co, Shinawatra Thai Co, Shinawatra Industry, and Shinawatra Thai Shop Co.

Shinawatra Thai Shop was a pioneering business for the Shinawatra family, dealing in silk and related products. It has suffered major losses over the past few years.

Shinawatra Thai, a textile dealer, is mainly run by Porhathai, who has full control over Shinawatra Development, a real estate company.

Shin Industry sells silk products and appliances.

The Nation 16.2.01

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The Nation 16.2.01

THAI RAK THAI`S ECONOMIC POLICY


FISCAL

-- A budget deficit will be maintained for a while to stimulate the economy.

-- Some large-scale projects that require a high content of imported materials will be cut.

-- Corruption will be targeted.

-- The budget will be restructured in the light of the national development strategy. Steps will also be taken to make sure the best use is made of the money available by strengthening the economies of local communities and developing the overall economy through government projects at the grass-roots level.

-- A non-discriminatory tax policy will be implemented to help the manufacturing sector. Promotion of manufacturing will focus on adding value to products.

-- Public debt will be managed with efficiency and transparency.

MONETARY

-- The aim will be to stimulate the business environment and thereby the overall economy by:

1. Achieving quality growth.

2. Maintaining a foreign-exchange policy sensitive to macro-economic balances.

3. Restoring the health of financial institutions so they can function normally. To this end, a national asset-management corporation will be set up to accelerate corporate-debt restructuring. This will help the financial institutions to recapitalise and reduce their provisions for losses on bad loans.

4. Promoting the capital market as a tool for raising long-term capital for the corporate sector and encouraging quality companies to list.

POVERTY REDUCTION

-- The focus will be on more equal distribution of income, job creation and helping people to develop their potential by:

1. Accelerating the restructure of farmers` debts.

2. Promoting alternative jobs for farmers by promoting rural enterprises and instituting a "one product for one sub-district" campaign. Legislation to support the creation of village funds will be pushed through under which each village will be entitled to Bt1 million in working capital.

3. Setting up a "Peoples` Bank" to provide cheap credit to local entrepreneurs. This enterprise will involve the Government Savings Bank, Bank for Agriculture and Agricultural Cooperatives and other state banks.

4. Creating a new entrepreneurial class by promoting small- and medium-scale enterprises. This will have the added effect of creating a new tax base for the country.

RURAL DEVELOPMENT

--Thai farm products will be promoted on the world market and the concept of self-sufficiency promoted to help the majority of the population which depends on the agricultural sector and which is still locked in poverty.

-- Rural communities will be strengthened through such initiatives as the Bt1-million fund for every village.

-- To help farmer become more self-reliant, the government will restructure rural loan programmes and promote funds for the community which are in line with the production cycle.

-- Mixed and alternative methods of farming will be encouraged to ease the reliance on single crops.

-- Land reforms will be supported with the aim of ensuring a fairer distribution of ownership and better management of water resources.

-- Production systems will be encouraged that take more account of the level of market prices for farm products with the aim of making the agricultural sector more competitive.

-- Efforts will be made to develop an export market for the products produced by a more liberalised agricultural sector. To this end, organic farming will be encouraged; the labelling of food that does not contain genetically modified organisms accelerated; and a fund created to encourage the registration of patents.

-- Deep-sea fishing will be supported through the development of a cold-storage system and by further agreements with neighbouring countries.

NATURAL RESOURCES

-- The aim will be bio-diversity, public participation and sustainable development.

-- Policies relating to the environment will take into account economic factors as well as the quality of peoples` lives.

-- A "polluter pays" policy will be pursued and research and technology that aids the conservation and management of the environment and natural resources will be encouraged.

-- National environmental standards will take account of the country`s scientific, economic and social climate, as well as international standards.

INDUSTRY

-- The industrial restructuring process will be speeded up to be in line with the objectives and strategy of the national development plan. Available resources, industrial skills, market opportunities and long-term competitiveness will be taken into account in a review aimed at setting the priorities for target industries.

-- Efforts will be made to improve the competitiveness of and develop standards for local industries.

-- The aim will be to create a pool of big-time operators in each target industry.

-- Support will be given to the private sector such as low-cost loans for those starting new enterprises.

COMMERCIAL

-- Creating a climate of fair competition at all levels will be the aim.

-- Moves to liberalise any sector will take into account readiness and the level of development. Any laws relating to the economy which are no longer relevant will be revoked.

-- Exports will be developed and upgraded, both in terms of adding value and in processing.

-- Exporters will be supported at all levels, especially small- and medium-sized enterprises.

INTERNATIONAL ECONOMY

-- The aim will be to promote cooperation with other countries and to maximise opportunities on the international market by:

1. Taking an active role in international organisations such as the World Trade Organisation, Asia Pacific Economic Cooperation and the Asia-Europe meeting to promote trade and investment.

2. Promoting the Asean Free Trade Area agreement and closely monitoring any policies that might affect Thai business.

3. Promoting bilateral trade and investment in neighbouring countries.

4. Upgrading the quality of Thai products and their competitiveness.

5. Supporting the private sector`s role in trade and investment negotiations with other countries.


Tomorrow: Social and political policies

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Watchdog to ask EC to look into iTV interference claims


POLLWATCH agreed yesterday to ask the Election Commission (EC) on behalf of 23 former iTV reporters to investigate whether the Thai Rak Thai Party had interfered in the private television station`s news coverage to make it biased in favour of the party.

Thai Rak Thai leader Thaksin Shinawatra and a Thai Rak Thai party-list MP could be removed from the House if there is strong evidence to prove the alleged interference in the TV station, said PollWatch secretary-general Somchai Srisutthiyakorn.

Thaksin`s Shinawatra Corporations Plc holds a major stake in iTV. The 23 reporters were fired after alleging that the firm had asked the TV station`s management to ensure that its coverage showed Thai Rak Thai in a favourable light. Representatives of the sacked reporters submitted a letter to PollWatch yesterday calling on the independent election watchdog to look into the iTV matter. The representatives included Patiwat Waskachat, former news editor and Wisal Dilokwanit, a former news announcer.

The letter alleged that there was strong evidence to indicate that iTV`s management had interfered in news coverage to prevent negative news reports against Thaksin from being aired.

The letter also alleged that Thai Rak Thai had secretly engaged in activities which were tantamount to using the station`s equipment for campaigning.

Somchai said PollWatch would ask the EC to investigate the station. He said if there were evidence to prove the allegations, the party should be considered to have violated the election laws, which guarantee equal and free access to airtime for all parties.

Somchai said PollWatch would consider the evidence from the group of former iTV reporters first. "If the evidence from the reporters and other evidence show that the Thai Rak Thai leader and party-list MPs abused their influence over the station by interfering in news coverage and making coverage unfair and biased in favour of the party, the EC will issue red cards to them," he said.

Somchai said PollWatch would also investigate a case in which Kasemsan Veerakul, anchorman for a political programme on Channel 3, was allegedly asked to favour a party on the programme.

Also yesterday, the Senate committee on administration and justice listened to two reporters representing iTV who defended it against allegations by the 23 former iTV reporters.

Mukdahan Senator Ravi Kingkhamwong, deputy chairman of the Senate committee, said the two sides provided conflicting information and the committee needed to gather more information before seeking comments from media academics on the dispute.

Meanwhile, the Rural Doctor Society called on Prime Minister Thaksin to return iTV`s concession to the National Broadcasting Commission so that its frequency might be redistributed and its work neutral and fair.

The Nation 16.2.01

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Four threats to govt stability


NOPHAKHUN Limsamarnphun looks at four threats to the new government of Prime Minister Thaksin Shinawatra, who is expected to announce his Cabinet line-up today.

Despite his landslide election victory, Prime Minister Thaksin Shinawatra and his government face four serious risks to political and economic stability.

The first is his possible removal from office should the Constitution Court uphold the National Counter Corruption Commission`s (NCCC) indictment of him.

Although the popular mandate means Thaksin will enjoy a considerable honeymoon period, it does not mean that his case will not be tried.

The court could take time in reviewing the NCCC`s evidence against Thaksin, who was charged with concealing his assets to avoid taxes and to circumvent securities laws. The court could also allow a lengthy defence by his legal team to ensure a fair trial. As a result, some analysts predict that the case will last for many months, if not more than a year, before a verdict is reached.

The outcome presents the single biggest risk to the new government. What will happen if the indictment against Thaksin is finally upheld by the court, automatically barring him from political office for five years?

Will Thaksin`s trusted aides, such as the apparent interior minister, Purachai Piamsomboom, or the apparent finance minister, Somkid Jatusripitak, succeed him as premier? Or will someone else?

Would the administration still have the leadership and stability to run the country effectively for the remainder of its term?

These are serious questions, and the implications for the country`s political and economic stability are no less serious. The second major risk facing the new government is whether Thaksin can manage to exclude unpopular and even tainted politicians from his first Cabinet.

Despite widespread speculation, the official list of new Cabinet members will not be known until today or tomorrow. Thaksin has promised that no politicians with controversial records would be included, but he is facing pressure from his coalition partners nonetheless.

Thammasat University`s Rangsun Thanapornpun, a critic of the new government, recently said the incoming administration is likely to include "undesirable" politicians returning as Cabinet members. Rangsun said the Thai Rak Thai Party is old wine in a new bottle, especially the Wang Nam Yen faction led by Snoh Thienthong, former secretary-general of the New Aspiration Party (NAP), a coalition member.

In addition to the NAP, the new government will consist of the Chat Thai and Seritham parties. Both the NAP and Chat Thai have their own share of "undesirable" former Cabinet members. Even though he has kept the final Cabinet list close to his chest, Thaksin might still find it difficult to exclude the undesirables due to pressure from coalition partners. This would hurt the government`s popularity and credibility.

The third uncertainty is the risk of backlash from the populist policies that won the party its landslide victory. The policies could be more difficult to implement and more expensive than expected. Failure to implement them will create voter discontent in a hurry.

Some outsiders, such as Kosit Panpiemras of Bangkok Bank, have even displayed an unwillingness to join the new Cabinet because they were concerned that these policies would indeed backfire.

The last risk facing the new government, but not the least important, is the issue of freedom of the press. This has become more prominent following iTV`s sacking of 23 journalists who had protested editorial interference by Shin Corporations Plc, the station`s major shareholder and the flagship of Thaksin`s telecom empire.

Although Thaksin has transferred his controlling stake in Shin to his son, wife and brother-in-law, he has found it difficult to distance himself from the company in the public`s eyes. As a result, the iTV incident has raised concern over media freedom over the next four years.

BY NOPHAKHUN LIMSAMARNPHUN

The Nation 16.2.01

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Court approves TPI recapitalisation


THE Central Bankruptcy Court yesterday approved Effective Planners` proposal for a US$756-million (Bt31.7 billion) recapitalisation of Thai Petrochemical Industry (TPI), which will result in a 75-per-cent shareholding for creditors.

In acquiring the majority stake, creditors are converting unpaid interest on TPI`s $3.5-billion debt into equity shares at a conversion price of Bt5 each.

As a result, TPI`s capital will be increased from Bt19 billion to Bt80 billion.

The 75-per-cent shareholding will be controlled by Stakeholding Co - a firm set up by Thai creditors - and trustees of foreign creditors.

Stakeholding Co, which is 50-per-cent owned by Bangkok Bank, the single biggest creditor of TPI, will have a 44-per-cent stake in TPI. Bangkok Bank will, therefore, indirectly own 22 per cent of the petrochemicals giant.

Trustees of foreign creditors will own the remaining 31 per cent in TPI.

Effective Planners said it would proceed with the recapitalisation immediately, and expected it to be completed next week.

After the capital increase, Effective Planners will implement the other parts of the TPI debt-restructuring plan, starting with obtaining a $100-million loan as working capital to increase refinery capacity from 60,000 to 125,000 barrels per day.

It will also sell non-core TPI assets, namely a 53-per-cent shareholding in its cement-making subsidiary TPI Polene, as well as its refinery-tank farms, electricity plant, a jetty, and water-treatment facilities.

The sales are expected to be completed in two years and raise $200 million to reduce the company`s debt.

Meanwhile, Apichart Phunkeasorn, a Johnson Stokes & Master lawyer representing TPI`s creditors, said creditors would on February 22 submit a petition to the Supreme Court against former major shareholder Prachai Leopairatana`s objection to the debt-revamp plan.

The Supreme Court is awaiting the petition before it considers the Prachai objection. If the court rules in favour of Effective Planners, Prachai`s legal proceedings will come to an end.

Prachai said the firm`s earnings before tax, interest, dividend and amortisation, had fallen to Bt400 million from Bt1 billion per month, because its full production capacity could not be utilised.

He said that although the firm still had a cash surplus, Effective Planners had not used it to increase output.

TPI`s refinery, the upstream unit for petrochemical products, is currently operating at only 60,000 barrels per day, less than its full capacity.

BY SOMLUCK SRIMALEE

The Nation 16.2.01

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STREETWISE: `How To Fix The Economy`, by an outgoing finance minister


FINANCE ministry officials were scratching their heads earlier this week after logging on to their website to find some parting words of advice from the outgoing Democrat administration.

Flashing on the ministry`s website was a thick set of papers which, when you clicked them, revealed guidelines on how to solve the economic crisis.

Perhaps in a gesture to defend their legacy, defeated prime minister Chuan Leekpai and outgoing finance minister Tarrin Nimmanahaeminda bequeathed this little gem to their successors before officially leaving office.

While some of the guidelines represent pending policies that have yet to be achieved as goals, the rest are of course what Chuan and Tarrin would like to see the Thaksin administration further.

Perhaps would-be finance minister Somkid Jatusripitak should count himself lucky: no other finance minister has ever received such a generous gift from his predecessor. - The Nation.


* * *
SET pres gets rosy

AS most reporters who`ve dealt with him know, Stock Exchange of Thailand president Vicharat Vichit-Vadakan does not exactly ooze with sweetness.

He`s not one for small talk and he rarely smiles in public. That`s why his performance yesterday at a press conference to launch the SET`s upcoming Investor Fair took so many by surprise.

Meeting reporters on Valentine`s Day to announce the June event, Vicharat concluded his speech by presenting a red rose to all of the estimated 30 reporters and photographers in attendance.

One can only hope that this newly-discovered cheerfulness by Vicharat, former president of Capital Nomura Securities and Krung Thai Bank, is permanent. - The Nation.


* * *
Burger woes

DESPITE several reports finding no evidence of its presence in the Kingdom, mad cow disease - officially called bovine spongiform encephalopathy or BSE - is still causing fear among the public.

Yesterday, Burger King Corporation, a major beef hamburger retailing chain, found it necessary to reassure its Thai customers that it uses only `safe` local beef.

"Burger King customers are assured that no meat products or animal feed have been sourced from European countries, in line with the Thai Livestock Department`s recent total importation ban," it said in a press release.

The company said it employed a stringent quality assurance system in Thailand for all parts of its operations. And this stipulates that regular health and food safety audits of suppliers are conducted by highly competent, and suitably qualified, quality assurance managers.

It also said that beef available at local outlets is supplied solely from local cattle. Based on available data and expert advice, there is no link between BSE and muscle meat.

Burger King was at the centre of negative rumours recently after Central Group ceased the franchise business here. The latter wanted to include other kinds of meat on the menu, but Burger King wants to retain the strong reputation it derives mostly from beef.

The fear is likely to continue until the Food and Drug Administration makes a definitive statement totally reassuring the public that all beef contains no BSE. The FDA has not yet done that. In its statement yesterday, the FDA said only that such a disease has not yet been found here.

Until the relevant authorities can finally tell the people what they want to hear, some Burger King customers and beef lovers are likely to refrain from consuming beef for a while longer.

And if that prospect is not enough to convince those in the beef business of the wisdom of diversification, perhaps nothing is. - The Nation 16.2.01

[Jomtien]

Hallo Body.

Danke für die vielen News, aber leider kann sie keiner lesen,der nicht perfekt Englisch kann

Müssen die Leute , die kein perfektes Englisch lesen können

auf Max Roland und Winny ausweichen?? Ein dritter Zuträger

wäre nicht schlecht gewesen,

[BodyG]

Hallo Jomtien,

Watcher100 hatte seinerzeit als erster diese Frage gestellt, MonacoT zuletzt auch noch mal.

Also die Grundidee stammt nicht von mir, das was man taeglich der Presse entnimmt, nicht nur selber zu lesen, sondern per "paste and copy" auch anderen sofort zur Verfuegung stellen. Also ohne diese bereits kommentierten Ereignisse oder Stellungnahmen, zu interpretieren. Leider ist die uebergeordnete Geschaeftssprache in Asien eben Englisch. Will man also am Geschehen teilhaben, ist es mehr als empfehlenswert sich die Sprachkenntnse anzueignen. Wenn Du in den Dezember zurueck scrollst, wirst Du auch entsprechende Hinweise auf URL`s von mir mit Lernangeboten finden.
Wenn Du ernsthaft als Investor in den asiatischen Markt(und nicht nur in den) einsteigen willst, wirst Du nicht vermeiden koennen, Dir diese Sprachkenntnisse anzueignen. Ich verweise in diesem Zusammenhang auf Max Roland und winnycash. Frag doch mal die beiden, in welcher Sprache sie ihre Engagements abwickeln und in eben welcher Sprache sie sich informieren. Sogar Thaikenntnisse koennten fuer erfogreiche Investitionen beim SET von Vorteil sein.
Moeglicherweise gibt ja einer von diesen beiden dazu selber eine Stellungnahme dazu ab.
Als Rheinlaender( Gruesse an Dentist), sagt man jedenfalls:
"Von nix kuett nix"
Darueberhinaus hab ich auch anfangs mal gepostet, wenn die taegliche Leserzahl unter 100 absinkt, werde ich mein Vorhaben als gescheitert ansehen und aufhoeren.
Zur Zeit sind es aber etwas ueber 300(heute) Leser. Also scheint ein Interesse vorhanden zu sein(auch in englischer Publikation)und deswegen werde ich zunaechst mal fortfahren.

Ich bin gern nach allen Seiten offen, was am meisten zu lesen gewuenscht wird, das kann ruhig von meinem(subjektiven) Grundgedanken der - "finanzpolitischen Presseschau" mit kleinen Einblicken in die Thaiwelt - abweichen. Ein lebendiger thread, kann immer nur durch die Leser am Leben gehalten werden.

Gruss BodyG - ein Feedback waere auch nicht schlecht -

[Watcher100]

@ BodyG

Hier meldet sich nochmal Dein besoffener Watcher !

Ich finde Dein Auftreten hier gegenüber Deinen Lesern ganz schön elitär. Um nicht zu sagen eine Frechheit, wie Du die Leute hier abkanzelst. Was glaubst Du denn, wer Du bist ????
Paß mal auf, wir leben hier in Deutschland, und wir haben auch eine deutsche Sprache ( hast Du mal etwas davon gehört ? ). Du versteckst Dich doch nur hinter Deinen
"Englishkenntnissen", die nur Kopien von von Publikationen sind. Hast Dun eigentlich keine eigene Meinung ???????????
Wie sind Deine " Eigenen " Interpretationen zu den Geschehnissen in der Welt, oder auch speziell in Thailand.
Oder besteht Dein Leben nur aus Kopien der offiziellen Presse ??? Du tust mir wirklich bald Leid ! Hast Du auch eine eigene Meinung zu Thailand ?
Bezüglich Deines Hinweises,daß Deine Leserzahl sehr hoch sei,möchte ich nur darauf hinweisen, daß dieses sehr leicht manipulierbar ist, indem ich meine eigene Seite einfach immer wieder anklicke.
Soll ich Dir das mal vormachen ?????
Also Dentist, wenn Du mit mir reden willst, bitte in deutscher Sprache.
Und jetzt mach ich Dir noch vor, wie man einen winnycash-
Thread pushen kann in der Leserzahl.

Für Dich heute mal ( nicht so long ), sondern

mit freundlichen Grüßen

WATCHER

[dentist1]

Moin BodyG,

Dein Freund Watcher100 kehrt mal wieder alle seine Tugenden heraus. Dass er Alkoholiker ist und kein Englisch kann, war ja bereits bekannt. Aber dass er noch nicht mal der deutschen Sprache mächtig ist, beweist er mit seinem Dünnschiss den er hier abgelassen hat. Möglicherweise liest er Deinen Text nochmals nüchtern durch und kapiert dann, worauf es Dir ankommt. Als Thai würde man ihn als "Farang kee nok" bezeichnen. Trotzdem stellt sich noch die Frage, ob er die im Kopf oder in der Hose hat.

Von mir aus mach mal ruhig weiter, mal sehen ob andere auch eine Meinung dazu haben.

Viel Spass noch mit dem Wächter der deutschen Sprache *rofl*

Ps. aber danke für den Tip mit der Manipulation!Werde mich mal bei W: O erkundigen, für wen das gut sein soll.

An den Rest noch nen schönen Tag

[BodyG]

Burma masses troops on border

Filed at 12 : 29 pm (THLD time)


MAE SAI, Feb 16 (The Nation) -- The northern border with Burma remained tense on Friday as the Burmese army continued to reinforce its position in Thachilek opposite this border trading town in Chiang Rai as Thai armed forces stepped up preparedness for possible incursion.

Army sources citing army intelligence said the Burmese forces had been massing three battalions of troops on the other side of the border. Thai army has also sent in reinforcements, supported by artillery batteries, to the border area.

The army officers, speaking on condition of anonymity, said 10 Burmese illegal immigrants, suspected of spying, had been arrested Thursday night in the border area and in Mae Sai district.

Air Force Commander in Chief Pong Maneesilp said this morning that the air force had stepped up preparedness to support the Thai army forces on the border with Burma in case of a border incursion by Burmese forces.

"Our F-16 and F-5 jetfighters can be dispatched to the conflict zone in no time," ACM Pong said.

Meanwhile, Army spokesman Col Somkuan Saengpataranet denied claim made by the Burmese government that Thailand had signed an agreement to allow Burmese troops to use Thai territories as launching pad to attack various ethnic rebel groups.

Watscher100, ein Tip, damit Du auch ja keine Magengeschwuere bekommst: Bleibe dieser Seite fern, muell sie nicht weiterhin voll und alle sind zufrieden,Ok?
MfG BodyG

[BodyG]

Thaksin, bankers meet tonight

Filed at 12 : 28 pm (THLD time)


BANGKOK, Feb 16 (The Nation) -- Prime Minister Thaksin Shinawatra will meet leading bankers to discuss interest rate issue at Bangkok Club at 7:00 pm (Bangkok Time).

Earlier, Thaksin has expressed his disapproval of the interest rate cut of as much as half a percentage point, saying that the lending rate should be reduced more than deposit rates to narrow current spreads between deposit and lending rates.

[BodyG]

Thailand Banking System Needs Restructuring - Moody`s
(MORE) Dow Jones Newswires 15-02-01
2113GMT


PRESS RELEASE: Thai Bank Sys Needs Restructuring-Moody`s

Following is a press release from Moody`s Investors Service:



New York, February 15, 2001 -- In a recently released report on 2000 results, Moody`s Investors Service says that the profits now being reported by Thai banks are not yet a sign that the system`s overall financial health is being restored. However, the rating agency also says that important initiatives are expected from the strong, newly elected, government, and the overall support for creditors remains firm. The rating agency`s outlook for the Thai banking system remains broadly positive for the longer term.

"We believe that long-term restructuring of the Thai banking system is inevitable", says author of the report and Moody`s Senior Vice President, Nicholas Krasno. "Thailand is still smarting from the Asian financial crisis and recovery has been slower than anticipated - as have the planned political, economic, and legal reforms and restructuring" Mr. Krasno says. "Clearly, there will be a consolidation of the existing players in the Thai banking system, as the need to merge to achieve economies of scale becomes more of an imperative" he says. "Moreover, there will be more and more competition from foreign banks who are committed to remain in Thailand and this will put a lot of pressure on the smaller, local banks", he adds.

Mr. Krasno also believes that any consolidation in the banking sector will face major employee protests. "Employee groups in Asia have been surprisingly militant and effective in their opposition to consolidation", Mr. Krasno cautions. "It is a big issue in Korea, Indonesia, Malaysia, and even in China", he says.

However, Mr. Krasno does see some light on the horizon. "A radical restructuring and realignment does appear inevitable in the long term". "Management, and regulators, in Thailand are now increasingly well prepared to handle the opportunities and challenges this would present", he adds. Most of the Thai banks have successfully evolved from the old family-owned entities, to commercial and privately-owned institutions and are, therefore, becoming more market-orientated and strategically focused, according to Mr. Krasno. "There is increasing management discipline, and a much stronger regulatory system, than before the financial crisis", he says.

One important political initiative is likely to be a national asset management company. In Moody`s view this would be the likely vehicle to transfer funds from the public sector to support the banks` liabilities. However, it also raises the possibility of increasing moral hazard in the Thai financial system.

For the moment, the system remains fragile. "Narrow profit margins are a direct result of many anomalies in financial markets and the banking system", Mr. Krasno says. "For example, investment securities yield more than commercial loans, given the very high level of loan defaults. Yet the cost of deposits is also very low." He notes that the largest Thai banks benefit from significant non-interest income, while the small banks still rely on interest margins. "While the major banks may now be profitable, the profit margins afford little protection against any adverse events, nor do they offer a long-term basis for reconstruction and reinvestment in the system", he cautions.

There has been much debate over the amount of new capital the system needs, notes Mr.. Krasno, and this will be inconclusive until it is agreed what purpose the capital will serve. But ultimately, the establishment of confidence will be crucial. "The capital base, and official support structure, of the Thai banking system will need to be restored to levels that instill confidence in its capacity to weather any future economic storms", he says. "Banks will also need new capital to support loan growth and, consequently, growth in the Thai economy", he says.

Moody`s recently analyzed the year 2000 results of the listed Thai banks in a Special Report entitled "Thai Banks - Year End-2000 Results, And Prospects in a New Political Environment."

[BodyG]

Thai Journalists Fear For Freedom Of Media Under Thaksin
BANGKOK (AP)--Thai journalists have expressed fears that media freedom is in jeopardy under the new Prime Minister Thaksin Shinawatra. They say Shinawatra has already interfered in news coverage during the general election.
Following decades of military interference in politics, Thailand is now regarded as one of the most liberal countries in Southeast Asia. Freedom of the press is enshrined in a new Constitution.

"Thaksin will divide and rule. Friendly media will be given access to information, news. Unfriendly media will not be given any access," Kavi Chongkittavorn, president of the Thai Journalists` Union and the editor of the Nation newspaper, told a panel discussion Thursday.

The panel was called to discuss freedom of the press after the sacking earlier this month of 23 staffers of ITV television network who protested what they claimed was pressure to deliver politically biased news reports in favor of Thaksin.

They said that ITV, which is operated and partly owned by Thaksin`s Shin Corp. conglomerate, has become a Thaksin "mouthpiece."

But Thaksin`s spokesman, Suranan Vejjajiva, said the ITV staffers` claims were wrong and the journalist union`s fears unfounded.

"There`s a misunderstanding. There is no evidence that we pressured any (ITV) news crew," Suranan told The Associated Press on Friday.

"We feel that some stations and print media are biased. It is quite frustrating ... but we won`t do anything in terms of interference. We will continue to support a free press. We respect the Constitution," Suranan said.

Thaksin`s Thai Rak Thai (Thai Love Thai) Party handsomely won the Jan. 6 general election and his government is scheduled to be formally installed on Sunday.

[BodyG]

Thailand Newspaper Highlights Feb 16, 2001
BANGKOK, Feb 16 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- Effective Planners and creditor banks may have scored their knockout punch yesterday in their three-year battle over Thai Petrochemical Industry, after the Central Bankruptcy Court gave the go-ahead to raise 61.5 billion baht in new capital through a debt-for-equity swap.

- The business vision of Thaksin Shinawatra should be enough to convince him that a proposed low-cost mobile-phone service will be a success, the chief executive of ACT Mobile said yesterday, "I strongly trust that the Prime Minister certainly won`t scrap the project because he grew from rags to riches in his mobile-phone business. Now his telecom business has become a legend," said Somkuan Bruminhent.

- The final framework of a national asset management company awaits approval by Thaksin Shinawatra, after three separate teams offered different models of how best to clean up bad loans in the financial system.

- Recent cuts in lending and deposit rates by local banks are expected to result in the Monetary Policy Board maintaining current rates at its meeting on March 1.

- Short messages, sent mostly by teenagers on mobile phones on Valentine`s Day, caused the collapse of the GSM network of Advanced Info Service, the country`s largest mobile operator.

- The Finance Ministry agrees that changes are needed in the tax treatment of bond trades in the short-term repurchase market, according to Sommai Phasee, deputy finance permanent secretary.

- After a tumultuous period of structural adjustments, the Thai financial system has entered a new phase of greater stability. Sector consolidation, the recapitalisation of battered banks and increased foreign participation, leading to new management practices and technologies to make banks more competitive, have helped.

- Exchange rates are expected to average 41.6 baht to the US dollar this year, according to Bhasu Bhanichsupaphol, president of the SCB Research Institute.

- Payments made through the Bank of Thailand`s four systems-Bahtnet, electronic cheques, inter-province cheque clearing, and retail payment transfers-totalled 88.8 trillion baht last year, an increase of 20.8 per cent over the previous year, the central bank said.

- Estimates of credit-card fraud in online transactions tend to be understated, due to merchants` reluctance to reveal the true scope for fear of damaging their reputations.

- Advertising spending is expected to grow at half the rate of last year, as advertisers trim spending amid continued economic and political uncertainties, say brokerage analysts who follow the industry.

- An orange drink that used to be popular in Thailand will soon be promoted widely, probably spearheading a new range of beverages made by the brand`s new Japanese owners.

- The expected recovery of the Thai property market is expected to help increase sales of Philips lighting products by 15 per cent this year to 2.2 billion baht.

- The newcomer to Thailand might be surprised by the length of local surnames (mine has six syllables, for example). Usually, ethnic Thais have quite short surnames, such as Boonmee, Srisai, etc. The longer names usually belong to subsequent generations of Chinese immigrants.

- Factories in Map Ta Phut, Rayong, want a review of Genco`s decision to more than double service charges for treating their industrial waste.

- The Board of Investment will adapt its investment promotion role to the new government`s policy of promoting agriculture and rural development.

- The cruise ship business in Thailand is sailing into favourable seas as it has become a high-potential leisure alternative for middle-class holiday makers.

- The Port Authority of Thailand [PAT] and the Port of London Authority have reached an agreement on a twinning project that will start later this year.

ASIA PULSE

[BodyG]

Friday, February 16 6:04 PM SGT

Bangkok Closing Stock Prices
Prices in baht

Close Prior Change % Change
Advance Agro 13.50 13.50 Unch Unch
Advanced Info Service 452.00 450.00 +2.00 +0.44
BEC World 238.00 240.00 -2.00 -0.83
Bangkok Bank 38.50 38.25 +0.25 +0.65
Bangkok Bank (Foreign) 54.00 52.50 +1.50 +2.86
Bangkok Expressway 10.00 10.00 Unch Unch
Bank of Ayudhya 8.10 8.00 +0.10 +1.25
Bank of Ayudhya (Foreign) 8.10 8.00 +0.10 +1.25
Cogeneration 12.25 12.25 Unch Unch
DBS-Thai Danu Bank 8.50 8.60 -0.10 -1.16
Delta Electronics 210.00 208.00 +2.00 +0.96
Electricity Generating 31.50 31.50 Unch Unch
Hana Microelectronics 92.50 89.50 +3.00 +3.35
Industrial Finance Corp 8.50 8.40 +0.10 +1.19
Italian-Thai Development 12.50 12.50 Unch Unch
Krung Thai Bank 13.25 13.50 -0.25 -1.85
National Finance 8.40 8.40 Unch Unch
PTT Exploration 100.00 98.00 +2.00 +2.04
Shin Corp 206.00 208.00 -2.00 -0.96
Shin Corp (Foreign) 216.00 220.00 -4.00 -1.82
Siam Cement 300.00 298.00 +2.00 +0.67
Siam Cement (Foreign) 410.00 426.00 -16.00 -3.76
Siam City Cement 115.00 113.00 +2.00 +1.77
Siam Commercial Bank 27.75 27.25 +0.50 +1.83
Siam Makro 59.00 61.00 -2.00 -3.28
TelecomAsia Corp 24.25 24.00 +0.25 +1.04
Thai Airways Intl 32.00 32.25 -0.25 -0.78
Thai Farmers Bank 24.25 24.00 +0.25 +1.04
Thai Farmers Bank (Foreign) 26.75 27.00 -0.25 -0.93
Thai Union Frozen Products 56.00 56.50 -0.50 -0.88

Source: Reuters Group PLC

Noch eine Frage an Dentist1: Was bedeutet farang ke nok? Ich habe eine Bekannte(Thai) angerufen, aber die wollte oder konnte es nicht sagen!

MfG BodyG

[BodyG]

Friday, February 16 6:07 PM SGT

World Bank Sees Threat Of Stagnant Growth In Thailand
BANGKOK (Dow Jones)--Thailand isn`t expected to experience another financial turmoil similar to that of 1997 but it is at risk of not returning to the high growth rates it enjoyed before the crisis if it doesn`t develop new growth routes, World Bank economists warned Friday.
"There is a real danger that the kind of growth Thailand got used to, of 8%-10%, may be a thing of the past," World Bank country director Jayasankar Shivakumar said during a presentation of a book he co-authored with World Bank country manager Ijaz Nabi.

The book, "Back from the brink: Thailand`s response to the 1997 economic crisis", cites some of the warnings signs that occurred before the crisis erupted and outlines the steps that Thailand took and those needed to consolidate its fragile recovery.

Ejaz Ghani, the institution`s principal economist predicted that economic growth will move between 3.5% to 4.0% in 2001, unless a better-than-expected external environment with falling oil prices and fiscal stimulus measures by the new government pushes growth up to 4.5%.

Ghani noted that it will be critical for the new government to take steps to expand domestic activity to make up for lost income from exports due to slowing global growth.

"There should be new vents of growth. Old-style growth engines, such as electronics, will be no longer be sufficient as a new player enters the region, China," he said, referring to China`s upcoming entry in the World Trade Organization.

Shivakumar said that despite the progress achieved so far, Thailand still has a long and hard way to go to deal with the heavy burden of nonperforming loans in its financial system, still a major stumbling block in the recovery process.

He said the new government`s plans to set up a centralized asset management company which will bail out the banking sector of chronic bad debt, isn`t necessarily the answer to the problem which should be faced at its roots through an improved bankruptcy legal framework.

"There aren`t any magical solutions to the problem Thailand is facing," Shivakumar said. "The challenge will be implementation."



Bankruptcy Laws Need Improvement



New prime minister Thaksin Shinawatra has pledged to set up a state AMC that will buy bad assets from the banks and will manage them under one single entity, similar to the approach taken by South Korea and Malaysia soon after the crisis erupted.

Thailand`s former government pushed the banks to deal with the problem themselves, either by setting up individual asset management companies or by selling off the assets, a "much slower and harder route", as lead economist Nabi noted.

"Unless you take the second step which is to restructure corporations, a national AMC will only take you only part of the way," he said. "Corporate debt restructuring is the real Achilles heel."

Nonperforming loans in Thailand`s financial system have dropped to 17.9% of total lending at the end of 2000 from over 50% at their peak in 1998, but most of the drop has been achieved through asset transfers rather than actual restructuring.

World Bank financial sector specialist Michael Markels said that with 65% of nonperforming loans being in the public sector`s hands, a national AMC would be more effective if it focused on state-controlled assets, rather than pulling assets out of private banks.

"The risk is to pull nonperforming loans out of the banks and put them in a freezer at taxpayer cost, from where they may never get out," he said.

The economists suggested that the new government should seek to improve bankruptcy laws to accelerate the process of resolving contract disputes between creditors and debtors.

Currently, there is a backlog of six to seven years on bankruptcy judgments, mainly because of the court`s reluctance to declare companies bankrupt.

"Because it`s such a loss of faith for an individual to be declared bankrupt, courts carry on these cases without making a decision," Nabi said.

He said if the relations between creditors and debtors do not improve, credit growth would remain sluggish.

"That`s the problem with new lending and not the lack of a national AMC," Nabi said. "Lending won`t pick up until you fix that regime."

[BodyG]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[BodyG]

Technology News

Delta 2000 Profit Rises 46% on Orders, Currency Gain (Update1)
By Anuchit Nguyen


Bangkok, Feb. 16 (Bloomberg) -- Delta Electronics (Thailand) Pcl, the world`s largest maker of computer power supplies, said profit in 2000 rose 46 percent on rising demand and gains from depreciation of the Thai baht.

Income for the company, which is two-thirds owned by Taiwan`s Delta Electronics Inc., rose to 4.04 billion baht ($95.3 million), or 37.67 baht per share, from 2.76 billion baht, or 29.58 baht per share in 1999, the company told the stock exchange. Delta was expected to earn 3.5 billion baht in 2000, according to a survey of 14 analysts by IBES International Inc.

While Delta customers such as International Business Machines Corp., Dell Computer Corp. and Compaq Computer Corp. cut orders for computer displays, sales of computer power supplies boosted overall revenue.

``The switching power supply, adapter and charger businesses were strong last year, and some new clients will still be added this year,`` Pumipat Sinacharoen, an analyst at ING Barings Securities Ltd. said in a recent report. New customers may include Nortel Networks Corp. and Sun Microsystems Inc., he said.

Sales rose 16 percent to 23.3 billion baht. Delta, one of Thailand`s largest exporters, earns about 40 percent of its revenue from monitors and half from power supply systems. The rest comes from cellular phone battery chargers and adapters.

The Bangkok-based electronics maker also booked a foreign exchange gain of 1 billion baht, from a 327 million baht gain in 1999, as the baht`s 13 percent fall against the dollar in 2000 boosted Delta`s revenue in the local currency. Delta usually has foreign exchange gain as it earns almost all of its revenue in U.S. dollars.

Delta shares have risen 6.7 percent this year after falling 51 percent in 2000. Yesterday the stock surged 7.8 percent to 208 baht.

[BodyG]

Schlussbericht: Thailand kann Plus knapp ins Wochenende retten, Gewinnmitnahmen belasten [16.02.2001 - 12:35]

Gute Vorgaben aus Amerika, Hoffnung auf eine Verbesserung der Computerindustrie, hervorragende Zahlen von Delta Electronics (907981) und eine abwartende Stimmung vor der Ausrufung des neuen Kabinetts am morgigen Samstag verhalfen dem taiwanesischen Set Index bis Börsenende zu einem marginalen Plus von 0,3 Prozent oder 0,85 Stellen auf 316,00 Zähler. Gewinnmitnahmen in Bank- und Finanzwerten limitierten anfänglich hohe Gewinne.
Der Umsatz war recht dünn, Einzelinvestoren verharrten an den Seitenlinien und ausländische Anleger verhielten sich sehr sehr ruhig.
Bewegung löste heute lediglich das heute stattfindende Treffen des Premiers Thaksin Shinawatra mit der Thai Bankers Association aus; man will über die weitere Zinspolitik beraten.

Ganz vorne bei den Gewinnern befanden sich die Elektronikwerte, nachdem die Delta Electronics (907981) einen Nettogewinnanstieg letztes Jahr von 46 Prozent vermelden konnte und dadurch ein wenig Sorge über die Zukunftsperspektive dieses Sektors aus dem Markt nahm.
Delta Electronics legte 1% auf 210 Baht zu, nachdem Thailands größter Computermonitorhersteller einen Anstieg des Gewinns auf 4,04 Mrd. verbuchen konnte.
Beflügelt von diesen Zahlen explodierte die Hana Microelectronics 3,4% auf 92,5 Baht und die Circuit Electronic Industries (909259) verteuerte sich 1,5%. Die Zahlen dieser Unternehmen stehen noch aus.

Dasselbe positive Bild aus demselben positiven Grund boten einige ausgewählte Werte, die in Erwartung auf hohe Erträge und hohe Dividenden, hohe Gewinne machten.
Die TelecomAsia, Thailands größter Festnetzanbieter, stieg 1% auf 24,25 Baht und der staatlich kontrollierte Öl- und Gaskonzern PTT Exploration & Production (893245) hüpfte 2% auf 100 Baht nach oben.
Hier wirkte zudem noch der heute 1% gestiegene Rohölpreis kursstützend.

Und dann konnte sich noch die United Broadcasting Corp. über ein Plus von 1,8% auf 14,5 Baht freuen. Thailands größter Pay-TV Sender gab bekannt, eine Übereinkunft mit der amerikanischen Open TV Corp. getroffen zu haben; man will eine Servicetechnologie basierend auf der Entwicklung des oben genannten größten US- Hersteller von interaktiver TV-Software, anbieten. Dadurch hofft UBC seine Einkünfte zu erhöhen bzw. sich attraktiver zu machen. Sollte das Projekt dann richtig ins Rollen gekommen sein, will man daraus 1/5 seiner Einkünfte ableiten.

Die Banpu Pcl avancierte 2,4% auf 21 Baht, nachdem man sich seit Tagen über die angekündigte Dividendenzahlung von 3 Baht freut.
Autor: Katharina Angrüner /Boersenreport

[BodyG]

Friday, February 16 8:02 PM SGT

Thailand`s 36-Member Cabinet Ready For King`s Approval
BANGKOK (AP)--Thai Prime Minister Thaksin Shinawatra has named a 36-member Cabinet, and all his nominees have been cleared in a formal investigation required before the swearing-in ceremony, an official said Friday.
The Cabinet list will be officially announced Saturday after it is approved by King Bhumibol Adulyadej, Cabinet secretary Visanu Kreungam told reporters.

He said Thaksin submitted most of the names last week, and added a few more names in the last few days to complete the list. Thaksin and his 35 ministers will take the oath of office Sunday before the king.

Visanu said he conducted the mandatory scrutiny of the ministers` background and approved all the names.

As part of a constitutional obligation, the Cabinet secretary investigates whether new ministers fulfill the legal requirements of age, educational qualification and a clean police record.

Thaksin`s Thai Rak Thai party won the Jan. 6 general election with a near-majority in the 500-member House of Representatives, the lower house of Parliament. It has formed a coalition with two other parties that are also expected to get ministerial posts.

Thai Rak Thai is, however, assured of a majority after the legal procedures for a merger with a smaller party are completed next month.

[Watcher100]

@ Dentist

Username: dentist1
Registriert seit: 24.03.2000
User ist momentan: Offline
Letztes Login: 16.02.2001 10:20:27
Threads: 4
Postings: 383

@ BodyG

Registriert seit: 24.03.2000
User ist momentan: Offline
Letztes Login: 16.02.2001 14:10:00
Threads: 6
Postings: 453

Ist das ein Zufall, daß sich BodyG und Dentist am selben Tag registriert haben ?
Zumindest besteht dahingehend ein Verdacht, daß sich jemand unter 2 Nicknamen eingetragen haben könnte.
Mit welcher Absicht macht das jemand ?

[dentist1]

Ganz einfach Watscher100,

weil wir vor knapp einem Jahr schon wußten, daß wir hier mal auf jemanden treffen würden, der uns noch toppen könnte!
Übrigens BodyG(endlich hab ich nen Bruder) kee nok bedeutet schlicht und einfach Vogelscheiße.
Watscher, jetzt renn ganz schnell zu einem Deiner "Koalisationspartner" und heul Dich aus, daß so ein böser Poster deinen Hirninhalt mit sowas verglichen hat.


PS: Wenn Du Deine Suffergüsse alle schon vergessen hast, ich stell sie gern nochmal alle hier hintereinander rein!

[BodyG]

Danke fuer die angebotene Unterstuetzung Dentist1,
ich kann mich aber schon selber artikulieren.

Hallo Watcher100, nur zur Erinnerung,

von BodyG 13.12.00 00:39:27 3812347380
Hallo Ihr zahlreichen Leser meiner Postings,
ein besonderes Danke an die sich namentlich = Sugar1, suade, Frakt@l und OffLimitsLtd positiv geäußert haben.
Ich bin aber nicht der geistige Vater dieser Art der Gestaltungsweise von Informationen. Mir war das bei den Thailand News von Winny vom Dentist( abgesehen von seinen gelegentlichen Entgleisungen)(was macht der eigentlich?) aufgefallen, dass er ab und zu redaktionelle Beiträge aus Quellen reingestellt hatte, die ich nicht kannte oder ich einfach zu faul war, das alles jeden Tag abzuklappern.
Natürlich ist die Bewertung subjektiv - was ist für alle interessant - was nicht.
Aber den SET selbst lass ich wohl besser raus, weil da ja wohl jeder zuerst nachschaut.
Na dann auch noch mal zum besseren Verständnis auch für Dich Watcher100: Ich will nur Infos zur Beurteilung von Tendenzen oder möglichen Entwicklungen bereit stellen, beeinflussen will ich niemand. Die Beiträge ansich beinhalten ja schon eine redaktionelle Einschätzung der Ereignisse und die kommen in der Regel auch ohne meine Kommentare aus. Obwohl ich sicherlich meinen Senf nicht immer nur auf der Wurst plazieren werde :-)

von Watcher10016.12.00 04:48:29 3812369217
@ Body G Nur ein Tip.Du postest hier auf einem DEUTSCHEM BOARD. Und ich stelle fest,Du bist Dein bester Poster. Wenn Du erfolgreich sein willst,solltest Du mal die deutsche Interpretation wählen. So long WATCHER


von BodyG 16.12.00 07:08:07 3812369263
Hallo Watcher100(ist der Name Deutsch?) Ich möchte so gern erfolgreich sein! Was bedeutet Interpretation? Würdest Du mir bitte etwas Nachhilfe geben? Und was bedeutet board, poster und so long? immer dieses blöde Englisch, Du hast ja irgendwie schon Recht! MfG

von Watcher100 20.12.00 03:10:37 3812389642
@ Body G

Dentist hat die Lage fast richtig erkannt.
Ich entschuldige mich für meine unqaulifizierte Provokation.
Ich war vielleicht ein wenig depremiert darüber, alles in englisch lesen zu müssen. Und das ist mein Schulenglisch.
Naja,ich kenne jetzt schon die Antwort von Dentist.
Warum investierst Du in ausländische Titel, wenn Du zu wenig Englisch kannst?
Also nichts für ungut.
Ich finde Deine Postings trotzdem gut, auch wenn sie mir die Chance geben, meine Englischkenntnisse aufzubessern.
Gruß an den Dentisten )

So long

WATCHER
von Watcher10021.12.00 03:30:58 381239760
@BodyG
Muß mich wirklich nochmal für meine Provokation im frustierten Zustand entschuldigen. Ich habe mir heute die Mühe gemacht,Deine letzten Postings zu übersetzen und zu verstehen. Übrigens im nüchternen Zustand ( DENTIST ).
Ich muß Deine Wahnsinnsarbeit wirklich respektieren, auch wenn es in Englisch ist. Also mach weiter so !!!

So long

Aber was kommt dann???

von Watcher100
@ BodyG

Hier meldet sich nochmal Dein besoffener Watcher !

Ich finde Dein Auftreten hier gegenüber Deinen Lesern ganz schön elitär. Um nicht zu sagen eine Frechheit, wie Du die Leute hier abkanzelst. Was glaubst Du denn, wer Du bist ????
Paß mal auf, wir leben hier in Deutschland, und wir haben auch eine deutsche Sprache ( hast Du mal etwas davon gehört ? ). Du versteckst Dich doch nur hinter Deinen
"Englishkenntnissen", die nur Kopien von von Publikationen sind. Hast Dun eigentlich keine eigene Meinung ???????????
Wie sind Deine " Eigenen " Interpretationen zu den Geschehnissen in der Welt, oder auch speziell in Thailand.
Oder besteht Dein Leben nur aus Kopien der offiziellen Presse ??? Du tust mir wirklich bald Leid ! Hast Du auch eine eigene Meinung zu Thailand ?
Bezüglich Deines Hinweises,daß Deine Leserzahl sehr hoch sei,möchte ich nur darauf hinweisen, daß dieses sehr leicht manipulierbar ist, indem ich meine eigene Seite einfach immer wieder anklicke.
Soll ich Dir das mal vormachen ?????
Also Dentist, wenn Du mit mir reden willst, bitte in deutscher Sprache.
Und jetzt mach ich Dir noch vor, wie man einen winnycash-
Thread pushen kann in der Leserzahl.

Für Dich heute mal ( nicht so long ), sondern

mit freundlichen Grüßen

WATCHER

Soso Watcher , ich hab nochmal drueber nachgedacht ueber das Anklicken!
Glaubst Du wirklich, bei einer Zugriffszahl von ca.300 pro Tag und 20 postings, sind es mal gerade fuenfzehn Leser, die alle Beitraege gelesen haben. Da ist eine Manipulation wohl ueberfluessig!

Dein letztes Posting ist schon sehr lehrreich! Anstatt mal vernueftig die Zeit zu verwenden, um ordentlich ENGLISCH zu lernen, machst Du Dir Gedanken über
deine Mitboarder. Ganz speziele(x) Zusammenhänge, könnten dann aber bei detailierter(x) Begutachtung der Rechtschreibfehler(x) eventuel(x) zu einer masieven (x) Kriese(x) im Asien-Board fuehren.

Bis spaeter mal

[crashersgeist]

Einen bia chang Gruss an die Düssel-Connection,
sag mal weightwatcher, hast Du irgendwelche Probleme mit Dir selber? Falls ja, setz Dich ins stille Kämmerlein, komm mir Dir selbst ins Klare und lass die Leute hier im thread zufrieden. Ich will hier Thailandnews lesen und nicht Dein und durch Dich verursachtes Rumgesülze, kapiert?

Hi Ihr Börsenratten, sehen wir uns später am selben Ort wie immer? Firstpompom scheint auch im Land zu sein. Ich werd jedenfalls die erste Runde geben. Aber wehe wenn Ihr morgen im Salomo nicht fit seid

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iTV to fire more staff

Filed at 08 : 18 pm (THLD time)


BANGKOK, Feb 16 (The Nation) -- iTV is preparing to fire additional 15 news crews, citing that they are found engaging in protests against Shin Corporations.

Pattiwat Wasikachart, former news editor of the news station, said on Friday that most of them are leading union members.

Recently, iTV`s management team fired upto 20 staff after they protested that Shin Corporations interfered with their reporting related to the Thai Rak Thai party of Prime Minister Thaksin Shinawatra.

Pattiwat said that these staff will fight to death to protect their freedom and democracy.

Thaksin so far has denied an accusation that he had played behind the scene for this incident.

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World Bank says AMC is `no magic solution`


WORLD Bank country director J Shivakumar expressed reservations yesterday about the impending establishment of a national asset-management corporation (AMC), saying it was not a "magic solution" to the economic malaise.

Instead, Shivakumar stressed that the incoming Thai Rak Thai government should focus on the expedition of corporate debt restructuring by strengthening the legal and judicial regime.

Shivakumar`s comments mark the first time the World Bank has publicly stated its views on the Thai Rak Thai Party`s controversial proposal to form a national AMC to further reduce problem loans in the banking system. Details of the national AMC have yet to be worked out, but Thai Rak Thai has claimed that one would help get the banking system back on its feet and encourage lending.

The World Bank, which has been advising the Thai government very closely over the past three years of the economic crisis, believes the national AMC might not be the best answer to the banking distress because most of the bad debts have already been nationalised by the government.

About 65 per cent of the Bt2.7 trillion in bad debts, which peaked in the middle of 1999, are now on the books of banks taken over by the state or state-owned asset management companies.

Michael Markels, a World Bank senior financial sector specialist, suggested it might be better for the government to focus on managing problem loans to maximise returns.

He implied that if all bad debts in both private and government-controlled banks were carved out and placed into one big pool they might be difficult to manage.

The World Bank and the International Monetary Fund appear to share a similar stance with the Chuan government on corporate debt-restructuring. Former Finance Minister Tarrin Nimmanahaeminda preferred to let private banks tackle their own bad debts by forming their own AMCs, while the government tried to provide incentives or assist in the regulatory environment.

But the rate at which corporate debts are being restructured is far from satisfactory due to weak bankruptcy and foreclosure procedures. The infamous Thai Petrochemical Industry case has dragged on for the past three years - and is still not resolved.

Tarrin has said corporate debt restructuring should be one of the top items on the agenda for the next government, which should move further to strengthen the judicial regime.

Ijaz Nabi, lead economist at the World Bank overseeing Thailand, said forming a national AMC was not as important as tackling corporate debt restructuring, as evidenced in the cases of South Korea and Malaysia. He pointed out that shortly after the crisis, both South Korea and Malaysia set up national AMCs to remove the bad debts from the banking system, yet there has been very little progress in either country in corporate debt restructuring.

Corporate debt restructuring is seen as the key to economic recovery. In the case of Thailand, the slow economic recovery can in part be traced to the debt overhang, with Bt1.5 trillion to Bt1.8 trillion in bad debts locked up in the banking system. If these bad debts could be released back to the secondary market, they would stimulate business and economic activities, and help boost investment and demand.

BY THANONG KHANTHONG

The Nation 17.2.01

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Investor confidence seen rising


INVESTOR confidence in Thailand is rising, according to the latest survey of top executives at international companies by consulting group AT Kearney.

The firm`s investor-confidence index - based on a scale of zero to three - puts Thailand at 1.21, compared with 1.07 last year. Despite the rise, the Kingdom retains its 14th place in the overall country rankings.

AT Kearney`s annual survey of the top executives of its "Global 1,000" companies showed that that 85 per cent of top decision-makers planned to maintain or increase their investment overseas despite concerns over the slowdown in the US economy.

"Investors worldwide are afraid the US economy has the flu," Paul A Laudicina, AT Kearney vice president said. "A soft landing for the US economy is the most important factor affecting investors` decisions this year."

The US, however, retained its position as the most preferred investment destination for global executives, according to the survey.

China`s increased attractiveness is evidenced by its ranking in the foreign direct investment index this year - a rise to second from third place last year, replacing the United Kingdom, which slumped to fourth.

Brazil, China, Mexico and India topped the list of likely first-time investment destinations, with all four benefiting the most from the positive change in investor outlook over the past year.

The survey also indicated that investment interest in Asia on the part of global executives had increased. "The Asian Tigers seemed to have regained their roar," Laudicina said, nothing that this year`s index clearly establishes Asia`s return to investors` radar screens.

The survey showed that Asian emerging markets are being considered as destinations for nearly a third of all intended first-time foreign direct investment over the next one to three years.

Singapore`s ranking in the survey soared to 13th from 21st place last year. The ranking of South Korea, which has experienced a similar level of crisis to Thailand, slipped from 15th to 17th.

Although executives considered uncertainty relating to the UK`s entry into the euro zone as of secondary importance behind economic fundamentals, nearly all of them said that uncertainty over joining the euro could affect new investment flows to the UK. "The euro continues to be an independent variable, with investors more concerned over the UK making a decision over currency adoption, than over what specific currency they choose to adopt," Laudicina added.

Some 60 per cent of the global executives surveyed said they preferred mergers and acquisitions to other forms of entry into foreign markets.


The Nation 17.2.01

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Depositors to lose Bt2.3 bn


THE Bank of Thailand (BOT) has estimated that bank depositors could lose as much as Bt2.3 billion in income after commercial banks reduced interest rates on deposits by an average of 0.5 per cent over the past two weeks.

The central bank predicted that the banks themselves, however, would gain Bt700 million, while their borrowers would reap Bt1.6 billion. Several banks lowered their deposit rates without cutting lending rates.

Such estimates hinted that the country is facing a more sluggish economy along with abnormally low interest rates, which have been in place for more than a year to facilitate corporate debt restructuring and bolster the economy.

BOT spokesman Bandid Nijathaworn said commercial banks that slashed only deposit rates but left lending rates unchanged were unduly burdening the general public. This will hurt consumer spending, investment and the economy, he said.

The BOT`s low interest-rate policy has drawn heavy criticism from the public. It has not helped revive the economy, but depositors have been hit hard, particularly those who live on interest income.

The latest rate cuts have widened the gap between lending and deposit rates, which were already high during the fourth quarter of last year at 203 basis points, Bandid said. It was 157 basis points in the previous quarter.

In the fourth quarter alone, Thai commercial banks registered a 4.98-per-cent rise in interest income, compared with 4.74 per cent in the previous quarter. Their interest expenses dropped 2.94 per cent, compared with 3.16 per cent in the previous quarter.

The system`s effective lending rate for the quarter stood at 5.16 per cent, against an effective deposit rate of 2.90 per cent, Bandid said.

Effective lending rates and deposit rates at Thai banks stood at 4.98 and 2.94 per cent, respectively, while those at foreign banks stood at 4.32 and 4.30, respectively.

BY ANOMA SRISUKKASEM

The Nation 17.2.01

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SCI expects profits this year


NAKHON SI THAMMARAT - Siam Cement Industry (SCI), part of the Siam Cement Group, is optimistic it will return to profitability this year for the first time since the onset of the economic crisis in 1997.

Speaking to reporters while inspecting a new Bt7-billion cement plant in Thung Song, Nakhon Si Thammarat province, SCI president Sobson Ketsuwan said an expected increase in cement sales this year, from 13.7 million tonnes to 15 million tonnes, would enable the company to get back into the black.

He said the lower interest burden after completion of the new plant would also contribute significantly to the expected improvement in performance.

The plant is operating at 70 to 75 per cent of capacity, and the company controls 42 to 43 per cent of the domestic market.

Aviruth Wongbigghapitak, Siam Cement Group`s vice president, said the cement business was the only one of the group`s three major businesses that had not yet returned to profitability.

Revenue contribution from the cement business last year accounted for 20 per cent of the group`s total revenue of Bt140 billion.

Expecting a modest growth in the domestic market, Sobson

said SCI`s projected 2001 sales growth would be driven by an expected 15-per-cent jump in exports.

The company forecast its local cement sales to increase only slightly, from 7.5 million tonnes last year to eight million tonnes in 2001.

For this year SCI is aiming to achieve seven million tonnes of exports, targeting high-growth countries in West Africa and South Asia. It also hopes to increase sales in most major markets apart from the United States, where sales are expected to remain flat at two million tonnes.

South Asia will surpass the US as the company`s largest export market, contributing 29 per cent of total exports this year. The US share is projected to drop to 26 per cent from 32 per cent last year.

Asean sales, meanwhile, will grow to 26 per cent of total exports.

Despite the US economic slowdown, Sobsan said SCI hoped it could maintain cement sales volume to the US market this year, as it has long-term supply contracts with major customers.

During the Asian recession, SCI has managed remarkable growth in overall cement exports, which amounted to one million tonnes in 1997. Exports have totalled 2.9 million tonnes, 4.7 million tonnes and 6.2 million tonnes in 1998, 1999 and 2000 respectively.

In the same period the workforce has been reduced from 5,500 to 4,500 through normal- and early-retirement schemes.

Meanwhile Sobsan added that the joint venture between SCI and Switzerland`s Holderbank, which last year acquired the Hyundai Cement (Bangladesh) cement-grinding plant, would consider purchasing more plants in the country.

Bangladesh has more than 20 cement-grinding plants in operation.

BY NAREERAT WIRIYAPONG

The Nation 17.2.01

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Watchdog rejects KRP`s warrant plan


The Securities and Exchange Commission (SEC) has not approved KR Precision Plc`s plan to issue warrants under an employee stock option programme (Esop), citing a condition attached to the issue that would protect the management team from being fired after Concorde PAPE II Ltd`s takeover.

The securities watchdog concluded that the condition might hurt the interests of minor shareholders, said Nataya Niyamanusorn, the SEC`s assistant director for the office of the secretary-general.

Under the plan, KRP intended to issue 17.22 million warrants.

The attached condition stipulated that any party that controls more than 25 per cent of the company and plans to retire current executives without reason must offer them the leftover warrants at no cost as compensation. The company must then buy back all the warrants at the highest share price at that time minus the exercise price.

Concorde PAPE II Ltd, KRP`s majority shareholder, completed a tender offer to raise its shareholding in KRP to 55.7 per cent from 55.4 per cent. Prior to the offer, the management team said it would raise US$20 million (Bt849 million) in capital via a rights offering, which market watchers interpreted as an attempt to block the takeover.

"Should the company (wish to) continue with its decision to issue the warrants under Esop, the company can either appeal the case to the SEC committee within 15 days or get three-fourths vote among the shareholders," she said.

Shareholders with 10 per cent stakes have the right to an explanation of the planned warrant allocation, Nataya said.

KRP has 1,700 employees and is a producer of precision components for hard-disk drives and gimbals for floppy-disk drives. It also supplies suspensions, mainly to US disk-drive giant Seagate.

The company was one of the victims of the financial turbulence that erupted in 1997 and KRP`s current management team led by chief executive Jim Steger, an industry veteran and turn-around expert, has helped increase the company`s sales.

The firm last year recorded Bt1.8 billion in sales compared with Bt624 million in the previous year. However, it posted a higher net loss last year of Bt373.78 million, up from a Bt17.76 million loss the year before.

The Nation 17.2.01

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DIGEST: Delta Electronics reports surge in profit last year


DELTA Electronics (Thailand) announced a net profit for last year of Bt4.04 billion, an increase of 46.3 per cent over the previous year.

In a filing with the Stock Exchange of Thailand, the company attributed the profit rise to a 16.2-per-cent increase in sales, from Bt23.2 billion to Bt27 billion, as well as foreign-exchange gains. There was also a 63.5-per-cent fall in losses of its subsidiaries and associated companies. - The Nation 17.2.01 -

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Country slides into trade deficit


THAILAND suffered a trade deficit of US$400 million (Bt17 billion) last month, ending a 30-month run of trade surpluses and signalling that the economy could be headed for a bumpy landing.

Preliminary trade figures in January showed that exports fell 10 per cent year-on-year to $4.8 billion, compared with a surge of 26 per cent year-on-year for imports to $5.2 billion. In December, the country`s exports totalled $5.92 billion, while imports were $5.2 billion.

A Finance Ministry official told reporters the swing to a trade deficit was mainly due to lower exports, especially in computer components, in line with the slowdown of the US economy.

"This is a negative sign for Thailand. Slower exports emerged as our key problem. However, I believe this is a regional trend," the source said.

Exports of electronic parts and components to the US market account for about 7 per cent of Thailand`s total exports, a Bank of Thailand official said.

The sharp export slowdown sends a negative signal to the new government, which will not be able to rely on exports to be an engine of growth as they have been for the past three years. The Thai Rak Thai government could be forced to stimulate the domestic economy through fiscal deficit spending to prevent it from slipping into recession.

Another implication of the trade deficit in the face of Thailand`s high level of external debts is that the baht will weaken to correct the trade imbalance. The 1997 baht devaluation was a market correction against macroeconomic imbalances. It followed a collapse of electronics exports in 1996.

Ejaz Ghani, a World Bank principal economist, predicted that the economy will grow between 3.5 per cent to 4.0 per cent this year, barring a better-than-expected external environment with falling oil prices and fiscal stimulus measures by the new government that could push growth up to 4.5 per cent. Ghani noted that it will be critical for the new government to take steps to expand domestic activity to make up for lost income from exports due to slowing global growth.

"Old-style growth engines, such as electronics, will be no longer sufficient" as China enters the World Trade Organisation, he said.

Meanwhile, Prime Minister Thaksin Shinawatra yesterday held his first official meeting with Thai Bankers Association (TBA) members to discuss the controversial interest-rate spread, the national asset management corporation (AMC) and the macroeconomic outlook.

Before he was elected premier, Thaksin, head of the Thai Rak Thai Party, had met with some major banks` management teams to survey their opinions on the financial market and the economy.

Thaksin said yesterday his government had no plan to put pressure on commercial banks to stop cutting deposit rates.

DBS Thai Danu Bank president Pornsanong Tuchinda said the TBA had told Thaksin that the spread between lending and deposit rates must be kept at the current level. Thaksin recently commented that he was "unhappy" with the deposit-rate reduction by commercial banks and said the interest-rate spread should be squeezed to 3 per cent from about 5 per cent at present.

The bankers` association told Thaksin that given the huge amount of non-performing loans, banks needed to keep the rate spread at its current level. Large banks` minimum lending rate stands at 7.25 per cent, while their three-month deposit rate is at 2.5 per cent.

Pornsanong said the TBA also shared its views on the pending establishment of the national AMC, a key Thai Rak Thai campaign promise.

Banks also clarified their opinions on the structure of the AMC, including the prices of asset transfers. The meeting also touched on gain- and loss-sharing conditions and the possibility of allowing banks to hold stakes in the AMC, Pornsanong said.


The Nation, Agencies 17.2.01

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Army braces for flood of refugees


MAE SAI - Army Commander in Chief General Surayudh Chulanont has ordered the armed forces to prepare for a mass influx of refugees amid reports that Burmese troops will this weekend mount an all-out attack to crush the Shan rebels positioned near the border.

Surayudh gave the order during the meeting at Supreme Command yesterday to assess the border tension triggered last weekend by the spill-over from the fighting between Burmese troops and ethnic Shan rebels.

Army spokesman Colonel Somkuan Saengpataranet told The Nation that the army had been instructed to treat the refugees in accordance with humanitarian principles. The spokesman added that the army might require help from the United Nations High Commission for Refugees (UNHCR).

Rumours reached Mae Sai District over the past few days that Rangoon had instructed Triangle Region commander Brig-General Tein Sein to wipe out the 500 Shan State Army rebels positioned near Ban Pang Noon, about seven kilometres from Mae Sai. The Thai military could not confirm this report, but the unusual movements of Burmese troops and the reported deployment of seven units from its ally, the United Wa State Army, inside Burma opposite Mae Ai in Chiang Mai province and Mae Fa Luang and Mae Sai of Chiang Rai province suggest an all-out Rangoon offensive against the rebels.

Lt-General Wattanachai Chaimuanwong, commander of the Third Region Army, said he expected the Burmese troops to launch a fresh assault on the rebels.

"I think there will be trouble again," he said.

At the meeting, Surayudh was quoted as instructing troops on the frontline to strictly observe the Sunday ceasefire pending the negotiations and not to be provocative.

A ceasefire was struck on Sunday night following a clash between troops near Ban Pang Noon hill. Burma took the hill from Thai troops to launch a flanking attack on the nearby Shan rebels.

Somkhuan said the army was considering high-level military talks following the failure of Thursday`s meeting of the Township Border Committee to come up with measures to ease the tension.

Somkuan said the army was satisfied with the role of Third Region Army, which acted "decisively, swiftly and efficiently" in protecting Thai sovereignty and vowed to maintain the current level of operations.

He denied reports that troops on the frontline were demoralised by an informal order from prospective Defence Minister General Chavalit Yongchaiyudh, who urged them to refrain from any confrontation with Burmese troops.

"The Third Region Army acted under instructions from the current government and the armed forces and on the basis of protecting national sovereignty and integrity," Somkuan said.

The spokesman said the army would keep the checkpoints closed to cut logistic links to Burmese troops and pressure Burma to continue negotiating.

"The cooperation from local traders and villagers in not sending logistic goods to Burma has also helped weaken their [troops`] capability and works in favour of the Thai military operation," he said.

In Chiang Rai, the Third Region Army yesterday ordered provincial customs authorities to strictly prevent all products, especially such logistic goods as rice, gasoline and medicine, from entering Burma after it learned that a powerful local businessman in Mae Sai had delivered tonnes of rice to Burmese troops on Tuesday.

Moreover, the army sent troops to block an illegal pier used by the businessman to smuggle the same commodities into and out of Burma. The pier is located in Ban Paha`s Mae Sai district which is opposite Ban Pakuk, Tachilek in Burma.

A villager in Ban Pa Ha said the pier often carried cars and trucks across the Mae Sai River, which divides the two countries.

The businessman, who runs various businesses including construction and a rice mill, is a local power broker for a political party. The villager said the businessman had recently sold Burma tonnes of rice and gas.

Soldiers used a tractor to build a soil barricade in the river, which rendered the pier virtually useless. They could not remove the pier because it was too big, said Lieutenant Panumas Thongkumpalaew, the pier`s patrol chief.

The border closing also affected trade with Laos. Customs authorities in Chaeng Saen District - where the borders of Thailand, Laos and Burma meet - have been instructed to block any shipments of food, medicine and gas from entering Laos for fear they would be diverted to Burma.

Local trader Somsak complained about his shipment to Laos of about 4,000 eggs and vegetables being blocked. "I don`t know when the situation will return to normal. I had to ship them back for storage in Chiang Rai. Otherwise they will spoil," he said.

While the checkpoint remained closed yesterday, shops and banks reopened, though the businesses recorded only half the normal number of transactions.

District chief Decha Satthaporn estimated the lost revenue at Bt5 million a day.

Town residents who evacuated the area on Sunday began returning to their homes. Others remained at a temporary shelter provided by the Third Region Army at Huay Krai, about 15km from Mae Sai.


BY DON PATHAN, JEERAPORN CHAISRI

The Nation 17.2.01

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US court lets ex-deputy minister go


FORMER deputy finance minister Surasak Nananukul will return to Thailand just a few weeks after pleading guilty in a US federal court to a scheme to smuggle Iraqi oil, a Foreign Ministry spokesman said.

Pradap Pibulsonggram said he received a report from the Thai Consulate in Los Angeles that the US court had already freed Surasak after an 11-month legal battle.

Surasak, a former adviser to former prime minister Gen Chavalit Yongchaiyudh, leader of the New Aspiration Party, pleaded guilty on Thursday in a San Diego federal court to a felony currency violation in a plea agreement.

A more serious charge of conspiracy was dismissed as part of the agreement.

Simon Tan, an importer from Singapore, and Amnart Vorachard, a sales broker from Thailand, both agreed to plead guilty to one count each of conspiracy.

The plea agreements will allow Surasak and Tan to be released from custody and to leave the United States.

Amnart is expected to be sentenced on February 26 to 15 months in prison and should be freed in April with credit for time spent in custody since his arrest

"It was a reasonable result," said Charles Adair, the attorney for Amnart. "These guys really need to go home. They have families waiting and they need to resume their lives."

The three men were arrested in San Diego last March after a US Customs Service investigation into the smuggling of oil from Iraq in violation of United Nations export controls.

US authorities say the three men came to San Diego to make final arrangements to illegally buy US$20 million (Bt849 million) worth of Iraqi oil from an undercover customs agent posing as an international broker.

Surasak pleaded guilty to bringing more than $10,000 into the United States without reporting it and was sentenced to one year of unsupervised probation. He was freed on a $300,000 bond after serving five months in a federal jail following his arrest in March.

"This permits him to go home right now with no jail time and no fine," said his attorney, Mike Attanasio.

In an interview with Thai News Agency, Surasak said he planned to come back to Thailand by the end of the month. "I will be free from tomorrow," he was quoted as saying.

Surasak said he was fined for $100 for failing to notify authorities that "I carried more than $10,000 into the US". "During the past 11 months, I had to fight on my own with no help from anybody".


Associated Press, The Nation 17.2.01

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Poorest village awash with Bt1m schemes


IF Prime Minister Thaksin Shinawatra can pull off some budgetary magic to get his controversial village fund policy implemented, Baan Thung Phi in Mae Hong Son deserves to be high on the priority list.

How the money will get there, though, will have to be worked out.

The poorest village in Thailand is only accessible through rough terrain, a seven-hour drive from its mother district of Mae La Noi. The nearest bank is a world apart.

Changes, hopefully for the better, are expected to come soon if the planned scheme for allocating Bt1 million per village really can be carried out.

For three centuries Baan Thung Phi - located atop an isolated mountain - as remained a forlorn place, with the country`s lowest living standards.

The 180 residents in the 22-family community have to trek 130 kilometres to get to the nearest town.

During the rainy season, contact with the outside world is virtually cut off.

The community has no public services such as a school, health care, water or electricity supply, or telecommunications.

Its residents subsist mainly on rice. Most of the meals are the same - pure home-milled rice cooked in a lot of water. Occasionally, or rather rarely, there are insects or small jungle animals to go with the meals.

The average income per family amounts to less than Bt10 a day, while some of the families have more than 10 mouths to feed.

The Interior Ministry`s 2000 survey singled out Baan Thung Phi as the country`s most destitute village, branding it the poorest of the poor.

The National Economic and Social Development Board has drawn a poverty line, classifying those earning less than Bt41 a day (about US$1) as poor.

Based on this, the survey found about 28,000 villages were underdeveloped, with their residents below the poverty index.

Among the poor villages, those in Mae La Noi district are on the lowest rung, their residents earning less than Bt16 a day.

Baan Thung Phi is at the bottom of this desperate group. Its residents are descendants of Karen ancestors who chose to settle on a barren ridge that is thought to be cursed. The literal translation of the village name is "land of ghosts".

"No one knows for sure how and why my ancestors chose their homeland," said Nopae Petchthara, 94, the oldest resident in the community. "This mountain ridge is cursed to be barren. Legend has it that my village is being haunted by all types of ghosts," she said.

Nopae said Baan Thung Phi had been mired in poverty and hardship since her ancestors` time. "The weather is cold, and I cannot remember a bountiful year because of the drought," she said. "Villagers are left in the hands of a shaman, to overcome or die from their illnesses."

Aside from the occasional pawata -wedding celebration - villagers live a modest subsistence life, she said.

Over the past decade a Protestant missionary team began to proselytise in the village, and a number of residents have converted from animism.

In the next few months, the community will have its first chapel, 25-year-old missionary Chalee-ngae Ruangkitchob said.

Chalee-ngae said he focused on the villagers` spiritual needs. "I believe the introduction of Christianity has brought a guiding light and faith to the residents," he said.

More and more residents had turned their backs on drug habits after embracing Christianity, he claimed.

Although aspiring to the modern comforts they experience in towns, villagers have learned to be content with a hard life.

"We are poor, but at least none of us has died of starvation," Pukwa Thara-apisuk said.

Nomi Petchthara, 15, said she did not mind walking seven kilometres each morning to her class in another village if she continued to receive her scholarship.

The village`s only full-time student, Nomi said she aspired to become the first in Baan Thung Phi to graduate to high school.

Other children receive occasional tutoring whenever a teacher passes through their village.

However, the majority of villagers now expect their lives to change for the better under the new government.

Deputy village headman Tapino Chotedamrongkul said all eligible voters in Baan Thung Phi had trekked almost 10 kilometres to the nearest polling station to cast votes for the Thai Rak Thai Party.

Villagers had already started discussing how they would spend the Bt1-million village fund to upgrade their living standards, Tapino said.

"In my lifetime I have seen only one villager with Bt10,000 in cash, following the sale of his plot," he said, adding that his villagers had yet to comprehend the magnitude of having so much money at their disposal.

The community is awash with talk of how to dispose of the village fund, including schemes for road construction, job creation, commercial development and a cottage industry for hand-woven cloth.


BY BENJAWAN SOMSIN

The Nation 17.2.01

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Huge shift in outlook needed on waste, Greenpeace says


GREENPEACE launched proposals yesterday for what it says is a cheaper, safer and more efficient method of garbage disposal for Bangkok.

But the international environmental group said the changes needed a paradigm shift in outlook and would have to be backed by the political will of Bangkok Governor Samak Sundaravej.

There had to be a u-turn on waste-management policy, Greenpeace campaigner Thara Buakamsri said.

"Instead of traditional `dump, bury and burn` disposal options, the approach of the new method will be more active prevention of pollution and reduction of disposal," Thara said.

If implemented, the suggestions would rescue the Bangkok Metropolitan Administration (BMA) from its present problem of seeking huge landfill areas and facing local opposition to its garbage-treatment projects, he said.

"Public participation is the key to our suggestion," Thara said.

The proposed new method is based on a preventative approach, and includes minimising waste at source, maximising recycling and reusing of rubbish, the composting of garbage, and no incineration, the campaigner said.

The suggestions are based on a study by the Washington-based Institute for Local Self-Reliance, which was hired by Greenpeace.

Incineration is normally five to 10 times more expensive than landfill, besides releasing the toxic substance, dioxin, into the atmosphere, the report stated. It emphasises greater investment in composting, sorting and recycling facilities, which together should halve the current level of disposable garbage. This approach would automatically lead to huge savings in disposal costs, it said.

The amount of garbage generated in the Bangkok metropolitan area is about 12,100 tonnes a day. Currently, only about 1,000 tonnes a day is recycled.

The group presented the report to Samak`s office yesterday, but the Governor sent his secretary to receive it due to his busy schedule.

"We will not act like an enemy of the BMA, but as a constructive partner," Thara said. "We hope we can finally convince the authority to implement the new option."

Greenpeace last week sent a letter praising Samak for his announcement through the media of a halt to plans for the On Nut incinerator, which had been part of the BMA`s master plan for garbage treatment.

Yesterday, however, Thara said he was still not sure whether the incinerator project really had been scrapped. As far as he could confirm, the project would only be scaled down.

Meanwhile, 600 residents from Chon Buri`s Nong Yai district gathered in front of Thai Rak Thai`s office at Shin III building yesterday to urge the new government to help them stop a provincial garbage-treatment project planned for their district.

The villagers` leader, Parinda Siriworrawat, said they opposed the project because of worries about negative social and environmental impacts. The site of the proposed treatment plant is only 2km from the centre of the district.

Nong Yai was an agricultural community, she said, and should not be a landfill site for garbage - mostly industrial waste - from the whole province.

Local residents were upset at the lack of public participation and transparency about the project, Parinda said. She claimed the facility had been moved into her district due to potential land-sale benefits for local politicians.

Senior Thai Rak Thai officials met the villagers and promised to look into the matter and reply within a week.

The Nong Yai project was initiated by Chon Buri`s provincial administrators and supported by the Science Ministry. It is awaiting a public hearing - due to be held next month - before a request for budgetary approval is submitted.

The Bt800-million treatment facility would treat 1,000 tonnes of waste a day.


BY KAMOL SUKIN

The Nation 17.2.01

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Surin: It`s all Burma`s fault
False claims made just to shift blame


Post Reporters


Border tensions stem from Burma`s internal problems, not covert Thai attempts to help rebel fighters, says Foreign Minister Surin Pitsuwan.




A border patrol policeman removes a dud 120mm mortar shell found at Ban Pha Taek in Chiang Rai`s Mae Sai district. Mortar shells fired by Burmese troops landed in Mae Sai town on Feb 11, killing three villagers and wounding many others. _ JETJARAS NA RANONG

In the wake of last week`s border clashes, Burma has accused Thailand of obstructing its drug suppression drive, and helping Shan State Army rebels. The government rejects the claims.

Burma was trying to "divert the focus of attention in order to cause misunderstanding that Thailand was to blame," the minister said.

Thailand had responded to the violation of its sovereignty, and what was happening now "derives from Burma`s internal problems", he said.

There were "no grounds" for accusing Thailand of obstructing Burma`s drug efforts as the world knew well that Thailand actively supported drug clampdowns, he said.

He also rejected Burma`s bid to attribute the problems to border disputes.

Thailand, he said, had proposed terms of reference for border demarcation to the highest authority, the Joint Boundary Committee, but Burma refused to agree or even talk about the matter.

Township border committee meetings in Tachilek and Mae Sai were neighbourly events that should have taken place in the past, he said.

"Neighbours should get together rather than use violent means to settle problems," he said.

As a follow-up, the minister hoped the regional border committee, which is chaired by regional military commanders, would meet in the next few weeks.

But Thailand could not allow Burma to enter Thai territory at Ban Pang Noon, in Mae Fah Luang district of Chiang Rai, in order to hit Shan rebels from the rear, he said, referring to a Burmese request at border meetings.

"Thai territory is Thai sovereignty," he said. Thailand had never let anyone use its territory.

The Democrat-led government, he said, had sustained unity in its conduct of foreign policy by ensuring co-ordination between all agencies-Foreign Ministry, National Security Council, Interior Ministry and the army.

"What is being done now is right, and reflects a firm Thai position. The effectiveness and unity being demonstrated now is the result of three years of co-ordination," he said.

"This is the way to solve border problems. Independent efforts [by separate agencies] are not the way," he said.

If fighting escalates and there is an influx of refugees, Thailand would receive them. "But we reserve the right to repatriate them or not," he said.

The closure of border checkpoints was for the protection of national sovereignty which could not be exchanged for economic gain, he said.

Meanwhile, exiled Burmese students said the incursion by Burmese troops into Thailand was a threat to the region as a whole and stemmed from the military dictatorship in Rangoon.

"This is not only a security crisis for Thailand, but also a problem for Asean as the region moves towards greater integration," the All Burma Students` Democratic Front said.

"The Thai government and Asean need to see the dictatorship, the absence of democracy and the absence of law and order as the root cause of the conflict," said Sonny Mahinder, the group`s secretary for foreign affairs.

"Burma is a lawless country. The government seriously breaches international as well as domestic law," he said.

"Border meetings and personal relationships between generals may help in the short term but the threat of violence will always exist as long as the SPDC remains in power," he said, referring to Burma`s State Peace and Development Council.

- Thailand should use Burma`s unfavourable human rights record as a bargaining chip in trade talks, says the chairman of the Senate committee on foreign affairs.

Kraisak Choonhavan said human rights were Burma`s weak point and should be exploited in trade talks to give Thailand an upper hand.

He said the country should not be soft on Burma. Prime Minister Thaksin Shinawatra and Gen Chavalit Yongchaiyudh, tipped to be the defence minister, plan a visit to Burma soon.

The pair will work on solving the border dispute which has escalated into a stand-off in Chiang Rai.

Mr Kraisak, however, doubted the visit would be fruitful, saying the government had not followed the issue closely enough.

Narcotics production had grown hugely with Burma making a lot of money from the drug industry.

The Post 17.2.01

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New health scheme to cost B30bn
It can be done, says confident Thaksin
Kosol Satithamajit
Thai Rak Thai`s promise to limit medical fees to 30 baht a visit will cost an extra 30 billion baht, Prime Minister Thaksin Shinawatra was told while touring Ban Phaew hospital yesterday.


Dr Narongsakdi Aungkasuvapala, deputy permanent secretary for health, said the 30 baht-a-visit service would push the cost of the public health scheme from 70 billion to 100 billion baht.


"The increase of the budget is inevitable as it is needed for the upgrading of hospital standards and training officials involved," Dr Narongsakdi said.


Ban Phaew is the first hospital in Thailand to provide health services for all nearby residents for only 40 baht per visit for outpatients and 100 baht for inpatients.


It became a public organisation in October last year, having previously been a state hospital.


Mr Thaksin`s visit was to study management and services at Ban Phaew hospital in the wake of the change.


He was accompanied by Sudarat Keyuraphan, tipped to become the public health minister, and her likely deputy, Dr Surapong Suebwonglee.


Hospital director Dr Vithit Atthavejkul said after leaving the state health system Ban Phaew`s government subsidy increased from 40 million to 64 million baht to support its health care programme for 91,770 people in its service area.


The hospital had made a profit of six million baht and had not suffered a loss as alleged by some people.


"As of now, the hospital is successful both in providing services to all people and balancing the accounts," said Dr Vithit.


Ban Phaew is expected to be the prototype for Thai Rak Thai`s plan to provide affordable health care for the public.


After the one-hour meeting, Mr Thaksin declared he was more confident than ever that his 30 baht-a-visit health care policy, one of the party`s election pledges, would be implemented as planned.


"I know that to bring this policy into action some care and legal amendments are needed.


"I`m here to say that I dare to make changes.


"The plan to provide health security for all will be achieved within my four-year term," he said.


Meetings would be held involving the Public Health Ministry, the Civil Service Commission and the Budget Bureau next month to outline implementation of the scheme.


Mr Thaksin said in the first year it would need additional health budget funding of up to 30 billion baht to ensure hospitals could provide quality services. This would be a one-time investment which would have no bearing on the country`s overall budget.


Dr Surapong expected state hospitals in 15 provinces would be ready to provide the 30-baht medical service, including Chiang Mai, Khon Kaen, Ratchaburi, Phayao, Samut Sakhon, Songkhla and Yala.


Many other state hospitals had expressed interest in joining the scheme after learning they would be eligible for state support of 1,100 baht per registered patient.


Preference would go to those capable of providing a high-quality service.


Dr Surapong said the Hospital Accreditation standard would be used to evaluate the readiness of a hospital.


"We are now working on a plan to help hospitals in remote areas upgrade themselves so that when the time comes all patients will have medical treatment of equal quality," said Dr Surapong.


Under this policy, an independent supervisory institution would be established to monitor the standards of hospitals which wanted to take part.


A system would be established to ensure patients in all areas receive the same high standard of services.


Dr Surapong said passing a law to provide universal health coverage would be one of the Thai Rak Thai-led government`s top priorities.


In financing this health guarantee scheme, three existing health funds-the social security system, civil service and third-party auto insurance schemes-would have to be combined into a single public health fund.


"Money drawn from the three funds will be more than enough to implement the 30-baht-a-visit policy, making an entry fee of 1,200 baht a year unnecessary," Dr Surapong said.

The Post 17.2.01

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THAI MARKETS


Baht strengthens on rumours
Tougher currency controls a possibility


Cholada Ingsrisawang and Darana Chudasri


Market rumours that regulators were considering tougher controls over currency trades, following the example set by Malaysia and Indonesia, has helped strengthen the baht against the US dollar over the past few days.

The baht has also moved upward ahead of the implementation on March 1 of tighter reporting requirements on currency transactions, aimed at clamping down on speculation against the baht.

Yesterday, local currency dealers met the central bank to discuss the new reporting regulations, which require banks to specify the reasons behind deals, the names of counterparties and what positions are taken.

While central bank officials denied that any new controls would be imposed, sources say that tougher measures were being studied if existing rules failed to stem speculation and baht outflow to offshore markets.

This could include an outright requirement forcing banks to seek explicit permission for foreign currency transactions, one source said.

The market uncertainties had led many banks to buy baht to cover short positions and square their portfolios over the past week.

On Monday, the baht closed at 42.55 against the US dollar, compared with 42.48/52 yesterday.

One dealer said the rumours were the main factor making the baht stronger. "Around 70% of the gains are coming because of uncertainties in the market about what the regulators are thinking," he said.

Based on fundamentals, the baht should actually weaken, as Japanese firms repatriated profits ahead of the close of the accounting period, the dealer added.

Another banker said the tough new reporting requirements were "already akin to closing off the markets", and predicted a sharp fall in liquidity as parties would lose any confidentiality in their trades.

The baht continued to move offshore, he said. Even as regulators sought to clamp down on loopholes, traders were able to use options or long-term swaps to access funds.

But another treasury dealer said the new measures would significantly increase the operational workload for currency traders, given the added detail required in disclosure reports.

Local banks are already prohibited from extending loans of more than 50 million baht to non-resident parties, unless used for approved trade or investment purposes, with the regulations tightly enforced.

The Post 17.2.01

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Thailand: Taking a Peek Behind Thaksin`s Fiscal Curtain
Daniel Lian (Singapore)

A major concern among international investors is whether Mr. Thaksin`s economic programs will negatively affect the sustainability of the Thai fiscal sector, potentially pushing the Thai economy toward a domestic public-debt trap. Mr. Thaksin`s populist fiscal agenda and his proposal for a national asset management corporation (NAMC) have been perceived by international investors as a potential threat to the long-term fiscal sustainability of the Thai economy. This is because investors believe that these undertakings could contribute significantly to both a cyclical and structural rise in the indebtedness of the Thai government. We believe the concerns are misplaced and overdone. The concern over fiscal imprudence results from what we believe is a lack of knowledge about the Thai fiscal sector and a biased view of the negative fiscal implications of NAMC. Below, we examine the aggregate fiscal picture and analyze the cyclical and structural implications that the Thaksin programs could have on the fiscal sector, taking into account the interplay of both populist public spending programs and the establishment of NAMC.

The fiscal trend and aggregate fiscal picture before Thaksin`s programs were steady and sustainable. The domestic public sector debt to GDP ratio currently stands at approximately 60% (it was 15% before the 1997 crisis), and the public sector deficit, inclusive of interest payments on the public-sector debt and losses at public enterprises, is likely to be 3.5% in F2000/2001 (October 2000 to September 2001). We subscribe to the IMF`s baseline assumption (Thailand: Selected Issues, IMF Staff Country Report No. 00/21 February 2000) that real GDP growth exceeds the real interest rate on debt in the medium term and thus contributes to a reduction in the public debt to GDP ratio. While the 60% public debt ratio is not a small burden, the country is far from venturing into a public debt trap, in our view.

We believe that few international investors are aware that the two important fiscal drags since the 1997 crisis (the fiscal cost involved in finance company bail-outs and restructuring -- the FIDF program -- and the government`s explicit fiscal liabilities in the banking system), are already being taken into account by the government and included in the 60% public debt ratio. About two-thirds of distressed banking assets are state-owned in a banking system where the state accounts for only 27% of total assets. The Thai government`s fiscal practice is prudent, in our view, as current public spending net of interest payments remains in moderate surplus.

Mr. Thaksin`s twin economic initiatives -- populist social spending and NAMC - need not sacrifice longer-term fiscal sustainability. The two pillars of his economic platform, and their implications for fiscal sustainability and longer-term economic prospects, deserve investigation:

Populist social spending will at most add 0.5% to the existing 3.5% fiscal deficit ratio. Mr. Thaksin is likely to carry out at least some of his populist social spending agenda to fulfil his electoral pledge. His three major programs, i.e., an outright grant to every village, debt forgiveness for farmers by the state-owned agricultural cooperative, and low visitation fees for public doctors, can be partially funded through the shifting of planned public spending. Even in a worst-case scenario, where a watered-down version of these programs could be more costly than originally thought, the additional fiscal burden would unlikely exceed 0.5% of GDP in the current year. Our baseline assessment is that the fiscal deficit will not exceed 4% of GDP in F2000/2001, barring any unexpected deterioration in fiscal revenue collection.

Both macroeconomic projections and the proposed tax reform (a rise in VAT from 7% to 10%, a reduction in the corporate tax rate and an increase in personal income-tax exemptions) to be implemented this October, have an important bearing on near-term fiscal revenue. The GDP growth assumption of roughly 3.5% for F2000/2001 exceeds our forecast of 2.9% and we expect a moderate shortfall in projected revenue collection. However, the fiscal sector has an elaborate mechanism in place to rein in discretionary spending in wide-ranging areas if revenue collection fails to meet expectations. As a result, the negative fiscal consequence of economic growth failing to meet the government`s projection is significantly less severe than what we believe is expected by overseas investors.

The implementation of the rise in VAT this coming October is significant only beyond 2001 because the higher VAT receipts will buoy government coffers for just three months this calendar year. However, we believe that the VAT increase is critical to the future robustness in fiscal revenue. This is because the VAT increase should bring in an extra Bt50-60 billion (US$1.2-1.43 billion) in revenue a year. The extra tax revenue would be more than 5% of current tax revenue, or about 1% of GDP.

NAMC`s implied fiscal burden may be minimal. We believe that the implications of NAMC have been exaggerated in offshore markets given what may be a poor understanding of the program`s fiscal impact. It is important to note the following:

- The current sub-20% NPL ratio is not a meaningful analytical tool to assess the fiscal impact of NAMC because some private banks have their own AMCs and thus actual NPL ratios could be much larger - perhaps 38-39%.

- The above roughly translates into Bt800 billion of privately owned distressed debt. This is about 16% of GDP and represents the maximum liabilities that NAMC will impose on the fiscal sector.

- In reality, NAMC, no matter what form it takes, will not add 16% to the existing 60% public debt ratio. This is because NAMC will only add to the existing fiscal burden if either the market selling price or corporate repayments of its acquired distressed assets are sold for less than the acquired price. In other words, bank shareholders and corporate owners would first take a haircut before NAMC transfers liabilities to the tax-paying public. We believe that it would be possible for NAMC not to impose any fiscal burden on the public.

Both the Ministry of Finance and the Bank of Thailand have formulated their own NAMC proposals after a request by the Thaksin administration. The basic structure of their proposals consist of the following:

- NAMC is likely to first act like a transfer vehicle where distressed banking assets already owned by the state would be "officially" transferred from the state into the AMC vehicle. This should prevent depreciation of assets and promote more deep-rooted corporate restructuring. Such a plan, which initially leaves participation of private banks voluntary, should not, in principle, add a penny to the public debt.

- Private banks will be enticed to sell distressed assets to NAMC if they perceive their ultimate recovered sums from corporate debtors, net of opportunity costs, would be less than the offer price from NAMC. In this case, voluntary participation should result in adverse selection and transfer of fiscal liabilities to the tax-paying public. However, NAMC would likely be better positioned to conduct a more vigorous recovery exercise than private banks and a better recovery rate could potentially mitigate this problem.

We believe that the Thaksin administration will propose a version of NAMC that initially leaves participation by private banks voluntary. This adds no additional burden to the state sector. Subsequent participation by private banks will invariably result in the tax-paying public paying some bills, but it should not exceed, let`s say, half of the Bt800 billion mentioned above. This implies that the public debt ratio will rise to only around 68%. Fiscal sustainability in such a situation is not seriously compromised, in our view.

Bottom line: Mr. Thaksin`s fiscal plan could be positive for the Thai economy. However, longer-term fiscal sustainability is a dynamic issue. The 60-68% public debt-ratio projection merely presents a static picture. Given that there is no evidence that populist programs and NAMC should derail static fiscal sustainability, we believe one should focus more on the macro benefits potentially conferred by Mr. Thaksin`s programs.

The key is whether Mr. Thaksin`s NAMC would facilitate deep-rooted corporate reform, a process that is critically lacking because of a slow and ineffective bankruptcy procedure. If NAMC eventually promotes the disposal of unproductive and non-core corporate assets via a market mechanism, both cleaner bank and corporate balance sheets should promote monetary reflation to accommodate stronger real growth. Mr. Thaksin`s fiscal program could well result in a positive outcome for the Thai economy.

Morgan Stanley Dean Witter 17.2.01

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Bank Of Thailand Imposes UN Sanctions Against Taliban

BANGKOK (AP)--Thailand`s central bank has ordered local licensed foreign exchange institutions to implement United Nations-mandated sanctions against Afghanistan`s Taliban regime.
The sanctions include a prohibition on the transfer of financial assets of the Taliban and alleged terrorist kingpin Osama bin Laden and persons related to him, according to a press release received from the bank Friday.

The announcement, issued Tuesday, followed up a Jan. 19 decision by the Cabinet to join in applying the sanctions. Jan. 19 is when the sanctions took effect.

The U.N. Security Council Dec. 19 last year voted to impose the sanctions on the Taliban unless they closed "terrorist" training camps and surrendered bin Laden for trial abroad.

Bin Laden, a Saudi Arabian millionaire, is accused by the U.S. of orchestrating the 1998 bombings of the U.S. embassies in Kenya and Tanzania.

The sanctions impose an arms embargo against the Taliban, but not against their northern-based opposition, led by ousted president Burhanuddin Rabbani.

The sanctions also impose stricter controls on Afghanistan`s national airlines, urge countries to reduce the size of Afghan diplomatic missions and ban travel by Afghan officials. -17.2.01-

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General alarm as Thai military reforms come under fire
Feb 17 The AFR

Bruce Cheesman in Bangkok


The Thai military, praised for marching to a new beat under reforms introduced by the Administration of Mr Chuan Leekpai, is at risk of returning to its former tempo under the new bandleader, General Chavalit Yongchaiyudh.

The expected call-up to the Defence Ministry of General Chavalit, a former prime minister whose government is credited by foreign investors with triggering the country`s worst economic crisis, has raised fears that reforms within the military will be put on hold.

The Prime Minister, Mr Thaksin Shinawatra, is expected to announce his Cabinet, of which General Chavalit is the most controversial of several appointments. Mr Thaksin, the Thai Rak Thai leader, has had to award favours to his key coalition partners.

General Chavalit, regarded along with Mr Banharn Silpa-archa, another key coalition partner, as one of the last of Thailand`s political dinosaurs, had not even returned to the barracks before offending reformers.

The general, a former defence minister, made it clear that he would return to the old system of promoting by seniority, the military equivalent of crony capitalism. He was disheartened that the former prime minister, Mr Chuan, the first civilian to head the Defence Ministry, had abandoned the patronage system, he said.

"Once I am the defence minister, I will restore the time-honoured military tradition and restructure the armed forces," he said.

General Chavalit becomes the first former prime minister to take a Cabinet seat; others have been content to be power brokers.

Under the Chuan government, the military won praise for eschewing politics to put its own house in order. Possibly the most inspired act of Mr Chuan as defence minister was to appoint General Surayud Chulanont as army commander-in-chief.

The defence budget has been almost halved in US dollar terms and a plan to reduce the military by about 12 per cent over five years has been introduced.

The military procurement system has been changed, along with the command structure. General Surayud also hived off several army-run businesses, planned to reduce its stake in the Thai Military Bank and pensioned off hundreds of generals whose main duty was to play golf. He also tried to weed out criminal elements within the military running entertainment, arms procurement and logging rackets.

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Thaksin`s pals win key posts in new Cabinet


BANGKOK -- New Prime Minister Thaksin Shinawatra on Saturday obtained royal approval for his Cabinet, handing many of the top jobs to close friends including a US-educated marketing guru who was named finance minister.

The ministers` names will be officially announced later, and the Cabinet will be sworn in on Sunday, his spokesman Suranan Vejjajiva said. He confirmed the names of key ministers.

In choosing his ministers, Mr Thaksin rewarded top members of his Thai Rak Thai party -- almost all of them his trusted lieutenants -- for managing an unprecedented landslide victory in the Jan 6 parliamentary election.

Eighteen of the 35 ministers in the Cabinet are first-time ministers. Some of the rest are old-guard politicians with dubious track records, a sign that political patronage is still thriving in Thailand despite efforts at political reform.

But Mr Thaksin, one of Thailand`s richest businessmen, warned that ministers found indulging in graft would be sacked.

`From now on, I guarantee that everybody will work hard, and I will not tolerate any corrupt attitudes,` he told reporters before meeting with King Bhumibol Adulyadej to obtain a formal approval for his 36-member Cabinet.

Thaksin`s closest friends will be entrusted with carrying out his most controversial poll pledges -- virtually-free medicare, debt forgiveness for farmers and grants to villages.

But the biggest burden falls on Finance Minister Somkid Jatusipitak, 48, who also has never been in government before. He will have to pull Thailand out of the economic mess created by the 1997 Asian financial crisis that took away jobs, drove away investment and created massive debts for banks and companies.

Thaksin has pledged to set up a national asset-management company that would take over all the public-sector debts.

But economists including World Bank chief for Thailand, Jayasankar Shivakumar, have warned that there is no magic solution to the debt problem.

Mr Thaksin admitted that many candidates turned down the finance minister`s post before he turned to Mr Somkid, who is a founding member of the Thai Rak Thai party and has a Ph.D in business administration from the J. L. Kellogg Graduate School of Management at the Northwestern University in Illinois.

Before entering politics, he taught business administration at Thailand`s National Institute of Development Administration for nearly 20 years.

He has also held executive posts in several companies including Thai Vegetable Oil, ICC International and Far East Advertising. He was vice-chairman of NCC Management and Development Ltd, a company related to the Shin Corp group that was founded by Mr Thaksin as the core of his telecommunications empire.

The Foreign Ministry post went to Surakiart Sathirathai, who had a dubious record as a Finance Minister from 1995 to 1996 in a previous government, which many blame for creating the conditions for the 1997 financial crisis.

The Defence Ministry was given to Chavalit Yongchaiyudh, a former army general who was prime minister when Thailand`s economy collapsed in 1997. He is the leader of New Aspiration Party, which is part of Thaksin three-party coalition.

Thai Rak Thai won the Jan 6 election handsomely, falling just short of a majority in the 500-member Parliament. After the formation of the coalition, a smaller party merged with Thai Rak Thai, giving it a simple majority, the first time in Thai history. -- AP 17.2.01 --

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Supachai against alien business law amendment

Filed at 05 : 43 pm (THLD time) The Nation 17.2.01


BANGKOK, Outgoing Commerce Minister Supachai Panitchpakdi said that Thailand should not turn back the clock by amending the Alien Business Act as the country must fall in line with international trade standards.

He made the statement in a speech to bid farewell to to officials at the ministry on Friday.

The new commerce minister, likely to be Adisai Bhodaramik, will take office from Feb 19 onwards.

The incoming government, led by the Thai Rak Thai Party of Prime Minister Thaksin Shinawatra, said earlier that it would amend the law in question.

It said the law seemed to favour foreigners at the expense of Thai business operators.

Supachai told the officials that although he would off his hands of domestic politics, he would help boost Thailand`s credibility on the global trade arena when he becomes the next director general of the World Trade Organisation.

Supachai is scheduled to take over the WTO top job in September, 2002

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Thaksin bows to `reality`


THE unveiling of the new Cabinet received a lukewarm response yesterday, as the public sized up Prime Minister Thaksin Shinawatra`s assemblage of inexperienced newcomers, mediocre veterans and a few promising new faces.

The majority of those interviewed by The Nation, however, agreed the new government should be given a honeymoon period in which to prove itself before the public delivers its verdict.

Many saw the line-up as a bold gambit intended to appease all sections of society.

Thaksin yesterday conceded some of his Cabinet members had been selected for the sake of political expediency, saying his hand was forced by the "old-style" politicians who still account for half of Parliament.

"The country is in a period of transition. We do not yet have a government made up entirely of new faces," he said.

"We can dream of sudden political change, but in reality I cannot ignore the opinions of the country`s veteran MPs, who occupy half of all the seats in Parliament."

Thaksin pleaded for time, saying his ministers should be allowed to prove themselves.

Chulalongkorn University lecturer Sompop Manarangsan said the new government`s performance would decide whether Thailand enters an era of improved living standards or one of worsening economic conditions.

The public has high expectations of the new government in a broad range of areas, he said. Bankers and big business are pinning their hopes on the proposed national asset-management corporation to bail them out, while small and medium-sized enterprises (SMEs) are eagerly awaiting the establishment of an SME bank, he said.

Thaksin pledged periodic evaluations of the performances of his ministers and vowed to get rid of those who were incompetent or dishonest.

"If I neglect to fire a dishonest minister, then I will be accountable to Parliament and the people," he said.

Some voiced outright disappointment at the Cabinet.

Pradit Charoenthaithawee, a member of the Human Rights Commission, criticised Thaksin for appointing ministers according to a party quota system rather than awarding portfolios based on individual merit.

"Some of these ministers have tainted records, some are incompetent and some are mediocre," he said.

Thaksin, meanwhile, defended his controversial appointment of Somsak Thepsuthin as PM`s Office minister, saying he could find no evidence to substantiate allegations of wrongdoing against him.

"I appointed Somsak based on his efforts in the election campaign in the northern constituencies and his past performances in several governments," Thaskin said.

Kampee Saisithipanit, an engineer, said he would give the Cabinet a chance, even though he was dissatisfied with the overall line-up.

Still, not everyone was outright pessimistic about the Thaksin Cabinet.

Thammasat University economist Sakol Varanyuwatana said he believed Somkid Jatusripitak, the new finance minister, would meet public expectations. Sakol also praised the appointment of Suchart Jaovisith as deputy finance minister, saying Suchart would help increase government revenue to finance the budget deficit and pay for Thai Rak Thai`s ambitious spending programmes.

Thaksin said his choice of Somkid was based on the compatibility of their financial policies.

"Somkid has worked with me for a long time - we drafted the party`s policies together. He shares my thoughts and I trust him to make decisions in line with my way of thinking," he said.

Board of Investment secretary-general Staporn Kavitanon said Thaksin had assembled a promising team to oversee economic affairs. The finance, industry and commerce portfolios were all in the hands of young and energetic ministers, Staporn said.

Suthichart Chirathivat, chief executive of Central Retail Corp, saw the new Cabinet as a dramatic improvement on the old one.

"I believe the new government will be able to deliver on its election promises - they just need time," he said.

A strength of the Thaksin government is that it has a large majority in the House of Representatives, giving it stability and the power to enact laws to implement its policies speedily, Suthichart said.

Some non-governmental organisation workers and activists questioned Chucheep Harnsawat`s qualifications as agriculture minister.

Prayong Donglamyai, a member of the Northeastern Farmers Federation, claimed Chucheep had no understanding of the community forest concept, or of farmer`s grievances.

Thaksin said he had screened Chucheep`s appointment according to qualifications proscribed in relevant laws.

Prayong gave the new Cabinet a month to deliver on promises to the nation`s villagers, threatening a mass rally if the policies failed to materialise.

Academics warned the new government it is already being scrutinised for possible conflicts of interest, as a number of ministers have connections with big business.

Chulalongkorn University`s Surichai Wankaew said Thailand could suffer a crisis of confidence if the Thaksin government failed to keep its ministers in line, or if the checks-and-balances mechanism enshrined in the new Constitution failed to safeguard against abuses of power by vested interests.

The development of Thailand`s civil society could also suffer a setback if certain ministers were perceived to be servants of big business rather than the public interest, said Chiang Mai University history lecturer Atthachak Sattayanurak.

The number of names with strong corporate ties on the Cabinet list meant the public should be alert to the possibility that some ministers would try to further their vested interests through special legislation, he said.

"Corruption is no longer confined to the giving and receiving of bribes. Of more concern is possible attempts by the government to enact laws that favour certain business," Atthachak said.

Businessmen urged the Cabinet to implement its policies immediately, saying the country and its fragile economy must move forward.

Vorapong Pichpongsa, managing director of rice exporter Capital Rice Co Ltd, said the new government should provide assistance to rice farmers, who have been hit by falling prices. The new government should also work to make farmers more competitive with those in other exporting countries, including Vietnam, that sell rice at a cheaper price, he said. Due to increased competition, Thai rice exporters have had to cut their prices by 5-10 per cent to stay competitive.

Prapat Photivorakhun, vice president of the Federation of Thai Industries, thought 80-90 per cent of the new ministers were acceptable. The private sector is now waiting for a detailed policy outline and to see it bear fruit, he said.

Thaksin said he would appoint Thai Rak Thai official Phrommin Lertsurichai as his secretary-general. Phrommin is expected to act as chief of staff, setting the prime minister`s working agenda.

To assist Phrommin, Thai Rak Thai official Phumtham Wejchai would be appointed deputy secretary-general to the prime minister, Thaksin said. Party-list MP Vichet Kasemthongsri and party spokesman Suranan Vejjajiva might also be appointed as deputies to Phrommin, he said.

The premier`s naming of New Aspiration Party leader Chavalit Yongchaiyudh as first deputy prime minister - effectively the nation`s second in command - showed Thaksin had full confidence in his coalition partner, said PM`s Office Minister Thammarak Isarangkul na Ayutthaya.

Thai Rak Thai adviser Snoh Thienthong urged local press to give the new ministers time to get down to work before criticising their performance.

"As for myself, I will try to ensure the government lives up to public expectations with regard to its campaign pledges," he said.

Snoh urged the opposition to refrain from attacking Thaksin`s character during the upcoming debate on the government`s policies.

"The people are aware of Thaksin`s personal problems," he said, referring to the premier`s pending trial before the Constitution Court on graft charges.

The new Parliament should focus on substantive matters rather than trying to stall legislation by bogging the debate down in petty arguments and delaying tactics, Snoh said.

The Nation 18.2.01

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Life`s a lottery for Loei ticket-sellers


WHEN you buy a lottery ticket on the streets of Bangkok your main concern is probably getting the winning number, rather than the background of the seller.

Should you stop to ask where the vendor is from, though, there is a good chance he or she will say tambon Khao Luang, a subdistrict of Loei`s Wangsapung area - more than 500km away.

Lottery-ticket agents from the communities in Khao Luang number not in the dozens or hundreds, but in the thousands. From 10 pioneers a decade ago, there are now as many as 7,000 lottery-ticket sellers, or 70 per cent of the subdistrict`s total population, hawking tickets in the capital`s streets.

They don`t do it for charity or as a part-time job. This is their main source of income.

For each trip, they can earn about Bt5,000. And they come every two weeks - on every seventh and 22nd of the month. It`s better income than a factory job, one villager said.

What is most interesting about this trend, though, is not the numbers, but the villagers` attempts to link the work to a financial project organised by the Interior Ministry.

The government initiative, which allocates a Bt100,000 revolving fund to each village, is intended to strengthen community-based economies. For the 11 villages in Khao Luang, the money comes to a total of Bt1.1 million. And the subdistrict`s residents now want to use it to support their "far-away-from-home" job. "The villagers want the fund to lend money to street lottery-sellers and the provincial authorities have approved the proposal," said Kiatisak Seesan, an official of Khao Luang`s Tambon Administration Organisation (TAO).

Normally, the money is meant to be used to promote local products such as handicrafts. If the scheme is approved it will be the first time it is used to promote employment far from the recipient communities, Kiatisak said.

A former official in the credit division of the Bank of Agriculture and Agricultural Cooperatives (BAAC), Kiatisak said he had adapted his experience for the new project. He thought the borrowers should be able to get loans at a rate of 5 per cent, although they would need a guarantor. He was currently working on setting up the loan system, he said.

"Even though it sounds weird, the proposal is the best solution for our communities. People like this job and the ministry wants to give them the money," the TAO official said.

"Our real economic activity is lottery selling, so, why waste money on other activities. And we can ensure the money will not be lost but will grow due to the interest payments," he said.

Selling lottery tickets along Bangkok`s streets became a popular job among Khao Luang residents about five years ago when the pioneers in the business starting bringing home good incomes.

Many of the villagers also needed to find a new way of earning extra money, because of heavy debts they`d run up with the BAAC as a result of an Agriculture Ministry initiative encouraging them to go into cassava plantations.

Low and uncertain prices for the product and its high investment costs were major causes of the debts. The heavy use of farm chemicals also resulted in erosion and falling productivity on their farms, causing their debts to grow.

"This job (lottery seller) is probably the only choice of survival they have left," Kiatisak said.

"Yes, some people do fail, but many still succeed. The job has become popular for people of all levels here. It has attracted not only normal farmers but even a senior police officer`s wife, the TAO president and a village head," he said.

Once the trucks and buses carrying the sellers leave for Bangkok, the villages in the area become a "like a graveyard". Only old people stay behind with the children, and a few labourers who must look after the rice farms.

The community comes back to life again with a "temple-fair" atmosphere when the lottery sellers return home with money. The good times continue until they go back to work again.

"It`s like our community has two seasons every month," Kiatisak said.

But the lottery job has its downsides. One is the risks the sellers are exposed to. They tell many tales of being robbed and cheated, and of run-ins with mafia gangs on Bangkok`s streets.

"Some buyers refuse to pay for the lottery tickets. In one case, a hot-blooded seller killed a mafia guy and ran way," one local said.

Another negative is the impact on the families. The sellers have more income, but less time with their families, forcing them to raise their children with only money. The absence of parents has been attributed to a growing problem of premature sex among girls and drug addiction among boys, Kiatisak said.

Lonely and tired after working in Bangkok, many of the lottery sellers become addicted to gambling, especially hi-low. Games are always being played when they arrive home.

"It`s hard to explain this phenomenon and even harder to judge whether it is good or bad. It just exists," said Prayong Atthachak, an activist from the Worldwide Fund for Nature, who works in the area.

"My biggest worry is, where it will lead the communities?

"If I could, I wish they could return to their traditional self-sufficient ways of life, which would allow the communities to develop sustainably."

BY KAMOL SUKIN

The Nation 18.2.01

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Koh Rok not threatened by filming: officials


GOVERNMENT officials yesterday said Koh Rok would not be harmed by the filming of a French version of the television series "Survivor", and an explanation of the decision to allow filming would be given next week.

ML Sithichai Chaiyan, a member of the board that gave permission to the producers, yesterday said the French crew had strictly controlled the production of an environmentally friendly version of the popular American television series. They had also given assurances that they would not destroy the environment, he said.

Moreover, 20 Forestry Department officers and one officer from the Public Relations Department had closely monitored shooting at the site.

ML Sithichai said the filming would help generate foreign exchange for the country.

About 400 applications to shoot films in Thailand are submitted each year, and filming is worth up to Bt2 billion in annual revenue, he said. Usually foreign crews are interested in shooting in the islands or in forests.

Their applications are screened by a film promotion board, made up of 20 academics and government officials and chaired by a PM`s Office Minister. Approval is based on whether the filming would harm the nation`s culture and environment.

The Public Relations Department will hold a press conference on Wednesday to explain the most recent issue, he said, adding: "We are not concerned about money, but what we want is to advertise the beauty of Thai nature to a worldwide audience."

Therefore, he said, the department had cut some complicated procedures from the application process for documentary film producers to make it easier for them to shoot in Thailand.

Plodprasop Suraswadi, director-general of the Forestry Department, said the approval process was transparent. He said the crew had not prohibited tourists from entering the entire island as claimed by some environmental activists- visitors could still visit some areas outside the shooting location.

However, an environmental group in Krabi province has raised doubts about the decision to allow the French crew to shoot the "Survivor" series on Koh Rok. They said authorities had failed to inform local residents.

Prasertpong Sorn-nuwat, a member of the group, said, "We are not anti-foreigners, but we do not trust the Forestry Department and government authorities".

Meanwhile, a tourist official said the filming of the series on Koh Rok, by the firm Adventure Line Production, had spurred business in nearby Trang province.

The production was expected to generate Bt100 million in income for area residents, because the company had to hire workers, rent fishing boats, buy food and rent a helicopter, said Uthai Voramasakul, an officer with the Tourism Authority of Thailand in Trang.

He said the crew surveyed sites in the Philippines, Malaysia, Indonesia and Thailand before deciding to shoot in Thailand.


BY BENJAWAN SOMSIN

The Nation 18.2.01

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IN BRIEF: Thammarak `almost certain`to be new anti-drug tsar


THAI Rak Thai party-list MP Thammarak Israngkoon na Ayutthaya said yesterday that he would be named PM`s Office minister in charge of the narcotics problem.

A group of Thai Rak Thai MPs had earlier backed him for a deputy interior portfolio, which would have put him on a collision course with the party`s powerful Wang Nam Yen faction.

"I have met the prime minister and it`s now almost certain that I will be a PM`s Office minister in charge of the drug problem," Thammarak said yesterday.

Wang Nam Yen leader Snoh Thienthong, who had agreed not to take any Cabinet post, wanted Prime Minister Thaksin Shinawatra to repay his "sacrifice" by appointing Sora-at Klinprathum as deputy interior minister. Sora-is close to Snoh.


* * *
Deputy Senate speaker decided today

THE Senate is scheduled to elect a new deputy Speaker today, with Suchon Chaleekrua and Pichet Patttanachote the leading contenders.

The new deputy speaker will fill the post left vacant by Senator Chalerm Promlert.

Chalerm resigned his post after he was charged with having paid four young teenage girls for sex.

Several senators said Suchon and Pichet had been lobbying for the post and were considered the strongest candidates.


* * *
Sanan to drop most suits

FORMER Democrat Party secretary-general Sanan Kachornprasart, saying that he wanted to retire peacefully, yesterday promised to withdraw all libel charges he had filed against newspapers and some politicians.

However, he refused to withdraw suits against New Aspiration Party MP Adisorn Piengket and political activist Veera Somkwamkid.

Sanan said he would withdraw his suits against NAP leader Chavalit Yongchaiyudh, NAP deputy leader Chalerm Yoobamrung, former NAP MP Chalermpol Sanitwongchai and newspapers, mainly Thai Rath, Daily News, Khao Sod, Matichon and Thai Post. However, he said he would not withdraw the case against Adisorn, who had accused him of using illegal wood to build a house. He also said he would continue pursuing the case against Veera, who had accused him of bribing the Constitution Court to rule in favour of him over the illegal declaration of his assets.


* * *
Cabinet list naysayers identified

THAI Rak Thai sources yesterday identified groups in the party which have become disgruntled over the way Prime Minister Thaksin Shinawatra composed his Cabinet line-up.

The group led by Thammarak Israngkoon na Ayutthaya, which yesterday appeared to have lost its fight with the Wang Nam Yen faction for a deputy interior post, has about 40 MPs.

Somsak Thepsuthin, whose small team joined Thai Rak Thai before the election, is also unhappy that the deputy interior post is going to the Wang Nam Yen nominee, Sora-at Klinprathum.

Wang Nam Yen`s Pitak Intravityanunt is reportedly upset by rumours that Thaksin`s wife Pojamarn influenced the prime minister`s decision to pick Surakiart Sathirathai instead of him for the foreign affairs post. Pongpol Adireksarn was deeply disappointed after Wang Nam Yen hijacked the agriculture portfolio for Chucheep Hansawat, leaving him with a less significant PM`s Office post.

The Nation 18.2.01

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The border conflict between Thailand and Myanmar



SAFE DISTANCE: Armed with telescopes, curious onlookers in Chiang Rai’s Mae Sai district take a peek at the Burmese border yesterday. The border crossing at Mae Sai has been closed for most of the past week after fighting erupted last Sunday between Thai and Burmese troops, resulting in the deaths of three Thais and scores of injuries.

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The border conflict between Thailand and Myanmar



SAFE DISTANCE: Armed with telescopes, curious onlookers in Chiang Rai’s Mae Sai district take a peek at the Burmese border yesterday. The border crossing at Mae Sai has been closed for most of the past week after fighting erupted last Sunday between Thai and Burmese troops, resulting in the deaths of three Thais and scores of injuries.

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THAI RAK THAI`S POLICIES


DRUGS

-- Imports of raw materials that can be used to produce drugs will be strictly controlled.

-- Tough action will be taken against drug dealers and producers.

-- A new law will be introduced to allow for quick and efficient anti-narcotics measures.

-- Current laws will be amended with the aim of imposing harsher penalties on offenders and rewarding and protecting officials and members of the public who contribute to the war on drugs.

-- Emphasis will be put on cooperation with other countries, especially neighbouring ones, in the crackdown on drug traders.

-- Efforts will be made to educate the public about the dangers of drugs through publicity campaigns.

-- Treatment and vocational training will be provided for drug addicts.

-- More drug-treatment centres will be set up, with tax exemptions for hospitals and private clinics offering such treatment.

EDUCATION

-- The overall aim will be to offer equal educational opportunities to all Thais.

-- The government will set policies, monitor quality and support the institutions concerned as part of an overhaul of the administrative system.

-- Community colleges will be established, as well as more libraries and self-learning centres.

-- An educational-technology system will be developed.

-- The country will be promoted as an educational hub in the region.

-- Children will be taught about all religions and to be proud of their heritage.

-- Student-centred teaching will be emphasised.

-- Funds will be established to finance education and vocational training for disabled and disadvantaged children.

-- Special attention will be given to the development of the teaching profession, including the curriculum for training teachers.

-- Vocational training programmes will be established for the unemployed and retirees.

-- A job-placement programme for graduates will be promoted.

-- Vocation institutions will be reformed with the aim of enabling them to offer bachelor`s degrees.

-- School-leavers who do not pursue higher education will be offered training for certain jobs.

The Nation 19.2.01

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Bankruptcy reforms urgently required, World Bank says


The World Bank`s Ijaz Nabi and Jayasankar Shivakumar suggest reforms for Thailand`s bankruptcy and secured lending laws.


THAILAND`S bankruptcy and secured lending laws have several critical weaknesses. The legal system lacks any mechanism for collecting debts or enforcing security interests outside the bankruptcy law.

The absence of such tools as mortgage foreclosure leaves creditors seeking the lowest possible threshold for bankruptcy, while debtors find no advantage in seeking bankruptcy protection.

One law covers personal insolvency, corporate bankruptcy and reorganisation, and the same insolvency test applies to all three cases.

As a result, the courts have adopted a cautious and conservative criterion for insolvency, which has the effect of depriving creditors of any effective means of encouraging debtors to voluntarily reorganise. The conservative criterion also effectively prevents debtors from applying for reorganisation, as it requires them to admit insolvency and all its negative consequences.

It is possible that even in a consensual or voluntary case a corporate debtor could lose control of management and the reorganisation. Stakes in family-owned corporations could be heavily diluted. These considerations are widely seen as deter- rents to voluntary reorganisation.

Finally, considerable dissension appears to exist between creditors and corporate debtors over the role and powers of reorganisation planners. Such dissension always causes delay and often prevents the parties from reaching a resolution. These weaknesses must be addressed if market-led restructuring - Thailand`s chosen route - is to work.

The activities of the government committee preparing proposals for comprehensive reform of bankruptcy and related laws must be expanded, expedited and placed within the framework of an easily monitored schedule.

Based on international experience, the reforms should take about two years. They should cover the following points:

lPersonal insolvency must be separated from corporate insolvency and reorganisation.

lThe insolvency test must be adjusted to fit the best international practice, which defines insolvency as the inability to pay debts as they fall due. Legislation is the best way to make this change.

lProvisions governing corporate control must be revised to enable debtors to maintain some management power even if the debtor`s management is a planner or plan administrator.

lProvisions governing reorganisation plans must be revised to allow a debtor to remain involved in planning even if his nominee is not the planner.

lCriteria for the appointment, position, power, payment and indemnification of planners must be reconsidered.

A detailed plan for comprehensive reform of bankruptcy and related laws is urgently required. It should set the scope and objectives of the issues to be addressed and the resources required, including specialised expertise, a process and a schedule.

An expert advisory committee led by Thai experts (legal and other) and including global experts from major legal traditions should be set up to achieve the vital objective of reforming the country`s insolvency laws and practice.

Insolvency law is a highly technical area that allows for a variety of approaches, even in industrial countries. A clear consensus on key issues is often lacking.

Legal norms and mechanisms are political bargains, however, and the laws governing insolvency, in particular, are continually evolving worldwide. But there is benefit in obtaining advice from a broad range of international experts and in filtering that advice through Thai experts.

New criterion should not be extended to personal insolvency or corporate bankruptcy until the issue of the social and financial stigma arising from insolvency is addressed, because unless and until the latter issues are addressed, courts are likely to apply any new criterion as narrowly as possible.

The change in the definition of corporate insolvency should be considered on an urgent basis as a short-term measure to provide easier and quicker access to reorganisation, and thereby increase the chances of successful rehabilitation.

Equally urgent is the need for stronger procedures for debt collection and security enforcement.

Such far-reaching reforms have the potential to raise Thailand`s investment climate to global standards.

The Nation 19.2.01

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Sorry, irgend was klappt bei mir nicht richtig, ein Beitrag kommt ueberhaupt nicht, ein anderer dreimal. Werde erst mal bei mir alles ueberpruefen.

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Test

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Leute das ist ja lustig, bis eben war da noch ein Soldat auf dem Bild zu sehen.

Hier ist der richtige Text zum jetzigen Bild aus der Nation vom 19.2.01

Prime Minister Thaksin Shinawatra and his deputy Chavalit Yongchaiyudh share a few words as the snew Cabinet poses for a picture before being sworn in at the Klai Kangwon Palace in Hua Hin, Prachuap Khiri Khan province, yesterday.

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Test

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Jetzt scheint es wieder zu funktionieren, eben erschien immer wieder nur der alte Beitrag, wenn der neue haette kommen sollen

Bankruptcy reforms urgently required, World Bank says


The World Bank`s Ijaz Nabi and Jayasankar Shivakumar suggest reforms for Thailand`s bankruptcy and secured lending laws.


THAILAND`S bankruptcy and secured lending laws have several critical weaknesses. The legal system lacks any mechanism for collecting debts or enforcing security interests outside the bankruptcy law.

The absence of such tools as mortgage foreclosure leaves creditors seeking the lowest possible threshold for bankruptcy, while debtors find no advantage in seeking bankruptcy protection.

One law covers personal insolvency, corporate bankruptcy and reorganisation, and the same insolvency test applies to all three cases.

As a result, the courts have adopted a cautious and conservative criterion for insolvency, which has the effect of depriving creditors of any effective means of encouraging debtors to voluntarily reorganise. The conservative criterion also effectively prevents debtors from applying for reorganisation, as it requires them to admit insolvency and all its negative consequences.

It is possible that even in a consensual or voluntary case a corporate debtor could lose control of management and the reorganisation. Stakes in family-owned corporations could be heavily diluted. These considerations are widely seen as deter- rents to voluntary reorganisation.

Finally, considerable dissension appears to exist between creditors and corporate debtors over the role and powers of reorganisation planners. Such dissension always causes delay and often prevents the parties from reaching a resolution. These weaknesses must be addressed if market-led restructuring - Thailand`s chosen route - is to work.

The activities of the government committee preparing proposals for comprehensive reform of bankruptcy and related laws must be expanded, expedited and placed within the framework of an easily monitored schedule.

Based on international experience, the reforms should take about two years. They should cover the following points:

lPersonal insolvency must be separated from corporate insolvency and reorganisation.

lThe insolvency test must be adjusted to fit the best international practice, which defines insolvency as the inability to pay debts as they fall due. Legislation is the best way to make this change.

lProvisions governing corporate control must be revised to enable debtors to maintain some management power even if the debtor`s management is a planner or plan administrator.

lProvisions governing reorganisation plans must be revised to allow a debtor to remain involved in planning even if his nominee is not the planner.

lCriteria for the appointment, position, power, payment and indemnification of planners must be reconsidered.

A detailed plan for comprehensive reform of bankruptcy and related laws is urgently required. It should set the scope and objectives of the issues to be addressed and the resources required, including specialised expertise, a process and a schedule.

An expert advisory committee led by Thai experts (legal and other) and including global experts from major legal traditions should be set up to achieve the vital objective of reforming the country`s insolvency laws and practice.

Insolvency law is a highly technical area that allows for a variety of approaches, even in industrial countries. A clear consensus on key issues is often lacking.

Legal norms and mechanisms are political bargains, however, and the laws governing insolvency, in particular, are continually evolving worldwide. But there is benefit in obtaining advice from a broad range of international experts and in filtering that advice through Thai experts.

New criterion should not be extended to personal insolvency or corporate bankruptcy until the issue of the social and financial stigma arising from insolvency is addressed, because unless and until the latter issues are addressed, courts are likely to apply any new criterion as narrowly as possible.

The change in the definition of corporate insolvency should be considered on an urgent basis as a short-term measure to provide easier and quicker access to reorganisation, and thereby increase the chances of successful rehabilitation.

Equally urgent is the need for stronger procedures for debt collection and security enforcement.

Such far-reaching reforms have the potential to raise Thailand`s investment climate to global standards

The Nation 19.2.01

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Cabinet Member Profile: CHAVALIT YONGCHAIYUDH, 69


Deputy Prime Minister, Defence Minister

New Aspiration Party (NAP) leader General Chavalit Yongchaiyudh resumes his defence portfolio for the fourth time, determined to leave a legacy as an experienced hand in military and security affairs.

Critics have expressed concern, however, that Chavalit may reintroduce the armed forces onto the political scene, reversing recent military reforms designed to bring greater professionalism to the armed forces.

As defence minister, Chavalit will face public scrutiny in handling three immediate challenges: border security, military appointments and arms procurement.

Before being sworn in, Chavalit tried to pull strings with Burmese military leaders to defuse the tension on the northern border.

Known for his reliance on personal contacts with neighbouring countries, he has yet to dispel the lingering doubt that his brokered security deals have often involved lucrative business contracts.

Although he is credited for his vision in military modernisation, he is also known for his inclination to create new desk jobs and promote hordes of generals.

During Chavalit`s three-year stint on the opposition bench, the restructuring of the armed forces has made significant progress in freeing funds by reducing staff.

Chavalit`s tenure comes at an important juncture, as the military will soon start a new shopping spree for arms.

It remains to be seen if Chavalit will revive his ambitious military modernisation projects, including satellites and a fleet of submarines. His relationship with General Surayud Chulanont, the army chief, known for his ambition to introduce professionalism into the force, will be closely watched.


YUTHASAK SASIPRAPA, 64

Deputy Defence Minister

Yuthasak Sasiprapa is expected to work hand in glove with defence minister Chavalit.

NAP leader Chavalit and Thai Rak Thai party-list MP Yuthasak have a working relationship that dates back to their days in the army.

Known for his geniality, Yuthasak has cultivated a wide circle of friends and wield considerable influence through his patronage inside and outside the armed forces. Military superiors, including Chavalit, have often counted on Yuthasak when they needed "special means" to tackle problems that were too sensitive to address through established channels.

Military peers see Yuthasak as a big-hearted and dependable colleague who spares no effort to help a friend in need.

To public eyes, Yuthasak`s name is frequently linked to shady activities, including a debt-collection ring and mediation among underworld figures.

During Chavlalit`s past two tenures as defence minister in the Banharn Silapa-archa government and his own administration, he plotted Yuthasak`s career path before appointing him defence permanent secretary.

Before his retirement, Yuthasak promoted General Thawat Ket-ungkoon in order to groom his younger brother General Akradej Sasiprapa for the post of defence permanent secretary.

Rejecting Yuthasak`s legacy, the Democrat-led government last year installed Thawat as defence permanent secretary and banished Akradej to the post of deputy supreme commander.

Military observers are anxious to see how the saga plays out following Yuthasak`s appointment as deputy defence minister.


DR SUVARN VALAISATHIEN, 56

Deputy Commerce Minister

Suvarn Valaisathien is arguably Thailand`s foremost tax expert. His hourly fee for legal advice is among the highest.

Suvarn, probably the only Catholic in the Thaksin Cabinet, entered politics almost accidentally: he gave legal advice to Thaksin`s telecoms firms. He went on to become one the Thai Rak Thai Party`s founding members.

A Chulalongkorn University law graduate, Suvarn was near the top of his class. He went on to Harvard University to earn a masters degree in law. He finished up with a PhD in law from George Washington University. He worked at the World Bank in Washington, DC, before returning home.

Suvarn worked in the petroleum industry as an oil-tax expert before founding his own firm, Suvarn Law Office. He specialises in tax and capital markets, mergers and acquisitions and private-wealth management. He is a regular contributor to The Nation`s Finance Section.


PICHET SATHIRACHAVARN, 63

Deputy Industry Minister

Pichet Sathirachavarn jumped into the political arena in 1995 after leaving the post of inspector-general at the Transport and Communications Ministry. He began his political life with the Chat Thai Party but later moved to the NAP and won the constituency election in Petchburi province.

Pichet is among those ministers facing public criticism about his qualifications and old-style politics.

He has never faced an inquiry, but was in charge of the big money-losing Bangkok Mass Transit Authority. Pichet has a masters degree from the US.

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Cabinet Member Profile: WAN MUHAMMAD NOOR MATHA, 57


Communications and Transport Minister

Wan Muhammad Noor Matha, a key figure in the New Aspiration Party, has taken the top job at the Transport and Communications Ministry for the second time, following his tenure there during the Banharn Silapa-archa administration in 1995.

There have been many questions over whether he is qualified to take on the task at a critical stage of privatisation and liberalisation of both the transport and communications sectors.

Although he has not been subject to charges of abuse like others, he has no significant achievements to show.

The telecommunications area is expected to be handled by his deputy minister. Wan Noor is expected to directly supervise the Highways Department, Thai Airways International, the State Railway of Thailand, and the controversial Suvarnnabhumi Airport project.

He is expected to be anything but aggressive in his dealings with ministry officials.

He is also unlikely to come into conflict with Thai Rak Thai, given the good political relationship between the leaders of that party and his own.


PONGSAKORN LAOHAVICHIEN, 63

Deputy Transport and Communications Minister.

Pongsakorn Laohavichien is the Chat Thai Party`s choice as deputy transport and communications Minister.

The appointment places him on familiar turf, having served as director-general of the Land Transport Department before retirement.

Pongsakorn, who was ranked No 18 in the Chat Thai party list, has a sound relationship with Sonthaya Khunpluema, a key Chat Thai member, since the latter was deputy transport and communications minister in the Chuan government.

He was in the spotlight when he approved a truck-terminal construction deal worth Bt3 billion for the state-run Express Transportation Organisation of Thailand, which later sub-contracted the work to another company.

Pongsakorn`s action is being investigated by the Finance Ministry, which is checking if it complies with the law regulating joint investments between the state agency and private business.

Pongsakorn is a law graduate from Thammasat University.


PRACHA MALEENONT, 53

Deputy Transport and Communications Minister

Pracha Maleenont was a major shareholder in both BEC World and Bangkok Entertainment before trying his hand at politics. Bangkok Entertainment has the concession to operate television Channel 3. He stepped down as CEO of BEC World on joining Thai Rak Thai, which placed him as No 10 on its party list. The party snatched him just before he was set to join the Chat Thai Party.

Pracha is well-known in the entertainment business, but keeps a low profile and rarely speaks to the press.

Pracha has never revealed to the public the

reason for his interest in politics. He has been subject to many questions over Channel 3`s relationship with Thai Rak Thai, particularly as he is close to the telecoms sector, in which the Shinawatra Group is extensively involved.

However, the prime minister believes that Pracha, who has a business degree, has good experience from managing his companies. He could be instrumental in Thaksin`s ambition to promote digital and IT technologies nationwide.


SURAKIART SATHIRATHAI, 47

Foreign Minister

Harvard Law School graduate Surakiart Sathirathai is the proverbial cat with nine lives in Thai politics, as he takes the foreign affairs portfolio and establishes himself as a leading member of the Thaksin Cabinet.

He has been in and out of the political corridors over the past decade, starting off as an active and influential member of the Ban Phitsanulok group of young advisers to former prime minister Chatichai Choonhavan.

The former dean of Chulalongkorn University`s Faculty of Law then became an adviser to Banharn Silapa-archa, leader of the Chat Thai Party, who surprisingly made him one of the country`s youngest ever finance ministers, rather than putting him at the Foreign Ministry where he might have excelled. In fact, Surakiart probably prefers to forget his experience as finance minister.

It is said that his spectacular rise in the Thai Rak Thai Party - he was No11 on the party list - was due to the affinity of both the party leader and his wife for Surakiart`s sharp mind and charm.

He has surprisingly taken over the Foreign Ministry, narrowly beating front-runner Pitak Intravityanunt from the Snoh faction.

Surakiart comes into foreign affairs as an expert in international trade law. He has also acted as legal adviser to many multinational companies. He is said to have good political and business connections, particularly in Japan and the United States.

He has indicated that more economic and trade issues should be included in the work of the Foreign Ministry. He could, therefore, help bridge the ministry`s working relationship with the Commerce Ministry.

Surakiart has also stressed that diplomacy can be implemented more effectively through the use of personal ties.

He is expected to have a good working relationship with the new Defence Minister General Chavalit Yongchaiyudh.

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Cabinet Member Profile: PURACHAI PIUMSOMBUN, 51


Interior Minister

Purachai Piumsombun, an academic and a key figure in the Thai Rak Thai Party`s election victory, will be seriously tested as Interior Minister, one of the most important posts in the Cabinet.

Purachai is one of Prime Minister Thaksin Shinawatra`s closest associates. He was Thaksin`s senior when the two won police scholarships to study in the US. He earned a masters degree from Michigan State University and a PhD in criminology from Florida State University.

A former rector of the National Institute of Development Administration, Purachai has published many outstanding works of research. He is also president of Shinawatra University.

Responsible for overseeing Thai Rak Thai`s provincial network and supervising the training of the party`s political canvassers, he is seen as one of the bright stars of the new Cabinet and will surely challenge Interior Ministry bureaucrats.

Purachai is known for his dedication to decentralisation and believes politicians should not get involved in the affairs of the police. He is eager to combat narcotics and wants to see the government move aggressively on education reform.

He comes to the Interior Ministry as a political heavyweight in his capacity as Thai Rak Thai secretary-general and number two on its party list.

However, critics have voiced concern that the new interior minister`s deferential style and readiness to compromise may be ill-matched with the shrewd, even obstinate government officials who man the so-called "mafia ministry".


SORA-AT KLINPRATHUM, 45

Deputy Interior Minister

Sora-at Klinprathum, a party-list MP, was awarded the post of deputy interior minister under the quota allotted to Snoh Thientong`s Wang Nam Yen faction of Thai Rak Thai.

Sora-at took a masters degree in engineering in the United States and entered politics on the heels of his father, former Ratchaburi MP Tawich Klinprathum.

Sora-at made his political debut as an MP in 1985, and in 1992 he became the youngest member of the Chatichai cabinet when he was appointed deputy education minister at the age of 34.

He has served in several Cabinet positions without distinction but has no blemishes on his record.

Sora-at has never held a post at the Interior Ministry. He was nominated for the post by his faction after Snoh decided not to take the portfolio.

Sora-at will be advised by Pramual Rujanaseri, former director-general of the Local Administration Department, who has worked at the ministry for many years.


SOMBAT UTHAISANG, 65

Deputy Interior Minister

A former bureaucrat who spent most of his career in the Communications Ministry, Sombat Uthaisang is not expected to encounter any problems as a deputy interior minister in the Thaksin Cabinet, thanks to his wide-ranging ability, amiable personality and good relations with fellow politicians.

His ability notwithstanding, Sombat owes his appointment to the very quota system the prime minister vowed to avoid. Sombat was a last-minute addition to the ministerial line-up after Thai Rak Thai merged with the Seritham party. Sombat, who holds a bachelors degree in law and a masters in business administration, was close to Seritham leader Pinit Charusombat when the latter served as deputy communications minister in the 1993 Chuan cabinet. At that time Sombat was deputy permanent secretary of the Communications Ministry overseeing telecoms affairs.

Sombat`s good relations with his colleagues are not limited to ex-Seritham members. He was also known to be on good terms with late Social Action Party leader Montree Pongpanit when the latter was communications minister over a decade ago. Montree`s support was crucial to Sombat`s appointment as director-general of the Post and Telegraph Department in 1988.

During the Banharn administration, Sombat resigned as deputy permanent secretary of the Communications Ministry to become deputy communications minister overseeing telecoms affairs. The appointment was made under the allotted quota of the New Aspiration Party, which controlled the ministry and oversaw several major telecoms projects at that time.

In the most recent Chuan government, Sombat was named chairman of the Telephone Organisation of Thailand`s board by then communications minister Suthep Thaugsuban, a Democrat.


CHUCHEEP HANSAWAT, 57

Agriculture minister

Chucheep Hansawa, an "old-style" politician who was unimpressive as commerce minister, assumes the top job at the Agriculture and Agricultural Cooperatives Ministry, which oversees the commercial activities of more than half the country`s population.

Chucheep won this job largely on the merits of his long-standing relationships with Thaksin and Snoh.

Chucheep has been a close friend of the prime minister since the 1970s, when Thaksin was still a mid-ranking police officer and Chucheep was working his way up the ladder as a minister`s secretary.

Expectations are not high with regard to what Chucheep will be able to deliver as minister, although his personal style is expected to be useful in dealing with protesting farmers. His less-than-transparent image, earned during his stint as commerce minister, is expected to be a key issue when he takes up his new assignment.

The Agriculture Ministry will oversee a number of popular but controversial projects, including the three-year debt-suspension plan for farmers and a special fund providing Bt1 million to every village in the land.

With the Asian Development Bank threatening to reduce assistance to countries that fail to root out corruption, a major challenge facing Chucheep is how to rid the Agriculture Ministry of corruption and make its operations more efficient, two areas in which his predecessors have made little headway.


NATEE KLIPTHONG, 43

Deputy Agriculture Minister

Natee Klipthong is an outsider among his fellow Cabinet appointees.

The Chat Thai Party nominated him over Newin Chidchob, who is unpopular with the public. But Natee, a former secretary-general of the Agricultural Rehabilitation and Development Fund (ARD), has been close to Newin for many years, the two having been classmates at Suan Kularb School.

When Newin served as deputy agriculture minister in the Chuan government, Natee was promoted to a number of high-ranking positions in the Agriculture Ministry, including director of the Diary Farming Promotion Organisation of Thailand and ARD chief.

In the latter position, Natee oversaw distribution of a Bt1.8-billion loan to farmers nationwide. Newin seemed to have picked the right man for the job, as the loans were in line with Chat Thai Party`s policy of helping to relieve farmers` debts.

However, in June last year Natee drew protests from farmers, particularly in the Northeast, who said he had not answered charges of corruption lingering from his term as deputy dean of Sukothai Thammathirat University.

In the wake of public outrage at the plan to appoint him deputy agriculture minister, Newin proposed Natee, who holds a bachelors degree in agriculture, for the position under the Chat Thai Party`s quota.


PRAPAT PANYACHATRAKSA, 49

Deputy Agriculture Minister

Prapat Panyachatraksa, incoming deputy minister of the Agriculture and Agricultural Cooperatives Ministry, has been assigned to help Chucheep Hansawat, the new minister, draw up and implement reforms in the farm sector.

Prapat, an agricultural academic with experience in reforestation, was one of the architects of Thai Rak Thai`s agriculture policy.

He faces an uphill battle, as he will have to deal with both Chucheep, an old-style politician, and dogmatic bureaucrats as he attempts to implement his restructuring ideas.

The appointment marks Prapat`s debut as a public official. He is well known for his role as an activist in the student democracy movement of 1971.

Prapat`s main task at the ministry will be to draft action plans to implement the party`s one-village-one-product plan and its debt-suspension programme for farmers.

Prapat is a graduate of Kasetsart University.

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Cabinet Member Profile: PONGTHEP THEPKANCHANA, 45


Justice Minister

A long-time servant of the Justice Ministry, Pongthep Thepkanchana brings a wealth of experience and connections to his new job.

Ever before Pongthep started his career as a judge at the ministry, he was known to have one of the best legal minds in Thailand. As a result, senior officials in the ministry often recruited his expertise for committees which dealt with law drafts and revisions.

Pongthep`s principles started to become evident in 1991 during his tenure as deputy secretary-general at the Office of Judicial Affairs, when he participated in a revolt against then justice minister Prapas Oueychai. Prapas was accused by young-Turk judges such as Pongthep of interfering in the assignment of judges.

When things calmed down, Pongthep was made spokesman for the Justice Ministry, bringing him closer to the media spotlight and giving him more prominence. Not long afterwards Pongthep could not resist the call of politics and ran in the 1995 election, losing to old-timer Pramote Sukhum of the Democrat Party.

Pongthep cropped up in the news again when he was selected as a member of the Constitution Drafting Council. In this year`s general elections the Thai Rak Thai party placed him 22nd on its party list.

As minister, Pongthep has his work cut out for him. First he has to establish a special investigations office that will function similarly to the US Federal Bureau of Investigation. The new office`s primary duties will be to investigate important and complex cases, including economic crime.

Secondly Pongthep has to oversee the establishment of a new institute for forensic science. If he succeeds in both, his future in politics is graven in stone.


SURAPONG SUEBWONGLEE, 44

Deputy Public Health Minister

Surapong Seubwonglee, a former lecturer at Ramathibodi Hospital, has been given the responsibility of fulfilling the promise of a Bt30 fee for all hospital visits. It is going to be a tough job for this junior doctor, but under Sudarat`s supervision, Surapong seems to be eager to search for the proper measures.

He does not need to be concerned about how to seek out financial and political support for this policy, since this will be a job for his boss. While he does not have strong medical management skills, Surapong will gain much technical and professional support from his colleagues in the public-health field.

He received a warm welcome from senior staff at the ministry. It will be no problem for him to handle the policy if he follows their lead.

However, in terms of political expectations, he may face much pressure from the public to execute the policy as soon as possible even though the ministry may need more time for deliberation.


SOMSAK THEPSUTHIN, 46

PM`s Office Minister

Somsak was the right-hand man of late Social Action Party leader Montri Pongpanich.

He is well known to major construction firms, as he worked as Montri`s secretary when the latter was Transport and Communications Minister.

He later become deputy transport and communications minister responsible for the Airports Authority of Thailand, Aeronautical Radio of Thailand, Aviation Department and Communications Authority of Thailand.

His appointment will likely be subject to opposition attack over his previous handling of the new international airport at Nong Ngu Hao.

The Transport and Communications Ministry last year submitted an investigative report of the government-appointed committee on a bid for the landfill project of Suvarnnabhumi Airport to the National Counter Corruption Commission (NCCC).

The NCCC will investigate whether Somsak was directly or indirectly involved in the bidding, which was ordered negated by the Council of State. But there is no answer as to when the NCCC will finalise its enquiry.

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Cabinet Member Profile: KASEM WATTANACHAI, 60


Education Minister

Kasem Wattanachai seems to be the right man for the job at the Education Ministry to follow plans for educational reform. But he may face difficulties in achieving the reform movement`s goals due to his eagerness to compromise.

A keen educator, he is a former permanent secretary at the Ministry of University Affairs and a former rector of Hua Chiew University.

He has joined hands with many reformers to push for educational changes, so he will not need much time to learn about his new post.

However, it is unclear whether he will be able to keep the reforms on track, because he tends to listen to everyone while trying not to upset anyone. He prefers to consolidate relevant opinions before making a decision rather than taking sides.

During the political campaign, it was clear that Kasem tried to avoid sharing his ideas on the controversial issues involved in educational reform, particularly educational decentralisation and the new structure of the ministry. He chose to focus instead on new education policies.

His evasive tendencies are not useful for his new post, because he will have to make the final decision on decentralisation, a point of contention between the Office of Education Reform and the Education Ministry. The former strongly embraces the decentralisation concept while the latter wants to keep things centralised.

Without changing his habits, it could be too difficult for Kasem to make the right decisions to serve the principles behind the push for national educational reform.


CHAMLONG KRUTKHUNTOD, 54

Deputy Education Minister

Chamlong Krutkhuntod is a politician, not an educator. While he was a deputy education minister in the past, he did nothing to improve Thai education. Since he is familiar with the old style of politics in which people mainly play roles to gain popular support, he may spell trouble for the reform efforts, particularly on the decentralisation issue.

Teachers nationwide are calling for the ministry to keep their schools under the central government instead of transferring them to local governments. Chamlong seems to have taken this side, rather than adhering to the decentralisation policy, in order to secure his constituency`s favour. That will increase the pressure on Education Minister Kasem Wattanachai.

However, Chamlong can use his bachelors degree in law from Thammasat University to help Kasem if he is willing to work for educational reform. The reform process needs several laws to support it, but Kasem lacks legal and political skills. Chamlong may thus effectively take on this mission. He is also an expert on political games in Parliament and could smoothly put through the laws to back up the reform effort. But it is his decision whether he will want to go through with it.


SUTHAM SAENGPRATHUM, 48

University Affairs Minister

Prime Minister Thaksin Shinawatra should not have given Sutham Saengprathum this job, because the Ministry of University Affairs has only one year to carry out its policies before it is dissolved and merged into the new Education Ministry. There is no time for an unskilled person like Sutham to learn about his new job.

He must immediately make effective decisions on how to efficiently bring public universities nationwide out of the bureaucracy as part of the autonomous-university policy. At the same time, he needs professional skills to provide new standards and regulations for the assessment of universities. How can he do so given his limited time and knowledge?

Thus there is little doubt that Sutham will rely entirely on the ministry`s bureaucrats and university executives. That will trigger chaos over public universities, since there are many conflicts among government agencies, university executives and university staff on various policies. It is clear that Thaksin has picked the wrong man for the job.

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Cabinet Member Profile: SURIYA CHUNGRUNGRUENGKIT, 45


Industry Minister

Suriya Chungrungruengkit is not a totally new face at the Industry Ministry.

Though it is his first time as minister, the young businessman turned politician has been familiar with the ministry since the early days of his political career, starting from adviser to the minister and working his way up to deputy minister under the previous government. He was also a financier of the now defunct Social Action Party.

Before entering politics, Suriya worked with his family`s business, Summit Group, which operates one of the country`s largest automotive concerns.

Suriya has a bachelors degree in manufacturing engineering from the University of California at Berkeley.

Rarely does a genuine industrialist wind up in charge of the ministry, so that Suriya would seem a suitable choice, except that people who have dealt with him question whether he has what it takes for the task.


ADISAI BODHARAMIK, 61

Commerce Minister

The first thing Adisai Bodharamik has to do is prove that he is the right man to be commerce minister.

Adisai has no direct background in commerce. He studied electrical engineering in the United States and is known as a one-man-show CEO.

His long-standing expertise is in telecommunications, and the last post he held was minister at the PM`s Office in charge of tourism in the outgoing cabinet.

Adisai is best known as founder of Jasmine International Plc and co-founder of Thai Telephone and Telecommunications Plc.

Still, some say he could fall back on his experience as a salesman for a chemicals firm. It may come in useful promoting Thai products abroad.

Adisai was a successful salesman before leaving to found his own telecoms business and has become one of the richest telecoms tycoons, second only to Thaksin himself.

Adisai is worth Bt2.7 billion, according to his asset declaration last year before he took on the PM`s Office job under the Chat Pattana Party quota. He started his political career at the Communications Ministry.


SONTHAYA KHUNPLEUM, 38

Science Minister

Sonthaya Khunpleum is a son of the godfather of the eastern province of Chon Buri, Somchai, better known as Kamnan Poh.

Sonthaya is attached to the Chat Thai Party and was deputy interior minister in the last government.

In public office his has always been a low profile, and his appointment to the Science Ministry does not bode well for Thailand`s need to upgrade its scientific skills and environmental protection.

Science and technology are a driving force in the development of many nations today. From the human genome through biotechnology to IT, special skills and understanding are required that seem far removed from those of a politician who has a law degree and little management experience.

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Cabinet Member Profile: DEJ BOONLONG, 71


Deputy Prime Minister, Labour Minister

Dej Boonlong, a textile tycoon and long-time financier of the Chat Thai Party, he is probably well passed his prime to be an active minister.

As such, his appointment to the positions of deputy prime minister and labour minister can be mostly interpreted as the final reward for his unstinting support for the Chat Thai Party over the past three decades.

Dej can also be seen as a stand-in for Chat Thai leader Banharn Silapa-archa, a former prime minister who pledged not to take a Cabinet post.

As usual, the Labour Ministry is being dished out as a political prize to someone few people expect to perform with distinction.

Labour leaders say the 71-year-old Dej, who was president of Thai Teijin Textile Co Ltd and Thai Textile Co Ltd, which recently laid off many workers, has little experience in labour management.

His previous government stints were as prime minister`s legal counsel in 1975-6, prime ministerial legal-affairs aide in 1986-88, secretary-general to the Cabinet, senator in 1988, deputy communications minister in 1994, and former MP for Nakhon Nayok, in 1992, and 1996.


LADAWAN WONGSRIWONG, 44

Deputy Labour Minister

Observers expect Ladawan Wongsriwong to fare well as deputy labour minister if she is assigned social welfare work, something she is very familiar with.

The 44-year-old former Democrat ranked 29th on Thai Rak Thai`s party list. She was included in the Thaksin Cabinet thanks to a reported agreement made when she decided to defect from former prime minister Chuan Leekpai`s party during its last days in power. The defection sparked rumours that she was among those expensively recruited by the tycoon.

A former journalist involved in social, women`s and environmental affairs, she joined the Democrats in the early 1990s and made history by becoming the first female government spokesman. She won three elections under the Democrat banner.

Ladawan served as spokesperson for the House environment committee, secretary to the industry minister, and as a member of the House agriculture committee, in addition to being spokeswoman for the Democrat Party. She also oversaw a programme for child and women`s development as well as the underprivileged at the PM`s Office, before being appointed deputy secretary-general to the prime minister. She was also involved in anti-HIV programmes in the North, among other social welfare works of the government.

She defected to Thai Rak Thai reportedly because her political and social activities were not sufficiently supported by the Democrats.

Observers believe if Ladawan is assigned social work and does not become overly obsessed with "image-making" activities, she will be one of the better ministers in the new government.


SUVIT KHUNKITTI, 44

Deputy Prime Minister

Suvit Khunkitti is a party heavyweight who is also known for his ability to manage and execute plans.

He was No. 7 on the Thai Rak Thai Party list and is one of the core leaders in the party. Suvit had held several ministerial posts before, when he was a senior executive of the now defunct Social Action Party.

Suvit was born in Khon Kaen and earned a master`s degree in science from the US.

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Check my record, says Chucheep


DESPITE farmers` opposition to his appointment, Agriculture Minister Chucheep Hansawat yesterday insisted he was qualified for the post.

"I have never done any harm to anybody," Chucheep said. "They can check my record because I`ve been a minister several times."

The Assembly of the Poor has criticised Chucheep for ignoring the plight of farmers when he served as agriculture minister several years ago. Several Thai Rak Thai Party MPs said Chucheep should not have been given a post because he has image problems, much like Wang Nam Yen group leader Snoh Thienthong.

Chucheep said the media overlooked his past performances.

"I will not have to prove myself because I`ve proved myself several times already," Chucheep said.

He said he would convene a meeting today with his two deputies on how to divide ministerial responsibilities.

Meanwhile, deputy finance minister Warathep Rattanakorn said he was qualified to carry out the ministry`s works.

He said he was not given the post because the party wanted him to counter the opposition during censure talks.

"I am qualified for the post because I`ve been working in financial affairs since I started my political career," Warathep said.


Alle Ministerportraits von The Nation 19.2.01

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Bankruptcy reforms urgently required, World Bank says


The World Bank`s Ijaz Nabi and Jayasankar Shivakumar suggest reforms for Thailand`s bankruptcy and secured lending laws.


THAILAND`S bankruptcy and secured lending laws have several critical weaknesses. The legal system lacks any mechanism for collecting debts or enforcing security interests outside the bankruptcy law.

The absence of such tools as mortgage foreclosure leaves creditors seeking the lowest possible threshold for bankruptcy, while debtors find no advantage in seeking bankruptcy protection.

One law covers personal insolvency, corporate bankruptcy and reorganisation, and the same insolvency test applies to all three cases.

As a result, the courts have adopted a cautious and conservative criterion for insolvency, which has the effect of depriving creditors of any effective means of encouraging debtors to voluntarily reorganise. The conservative criterion also effectively prevents debtors from applying for reorganisation, as it requires them to admit insolvency and all its negative consequences.

It is possible that even in a consensual or voluntary case a corporate debtor could lose control of management and the reorganisation. Stakes in family-owned corporations could be heavily diluted. These considerations are widely seen as deter- rents to voluntary reorganisation.

Finally, considerable dissension appears to exist between creditors and corporate debtors over the role and powers of reorganisation planners. Such dissension always causes delay and often prevents the parties from reaching a resolution. These weaknesses must be addressed if market-led restructuring - Thailand`s chosen route - is to work.

The activities of the government committee preparing proposals for comprehensive reform of bankruptcy and related laws must be expanded, expedited and placed within the framework of an easily monitored schedule.

Based on international experience, the reforms should take about two years. They should cover the following points:

lPersonal insolvency must be separated from corporate insolvency and reorganisation.

lThe insolvency test must be adjusted to fit the best international practice, which defines insolvency as the inability to pay debts as they fall due. Legislation is the best way to make this change.

lProvisions governing corporate control must be revised to enable debtors to maintain some management power even if the debtor`s management is a planner or plan administrator.

lProvisions governing reorganisation plans must be revised to allow a debtor to remain involved in planning even if his nominee is not the planner.

lCriteria for the appointment, position, power, payment and indemnification of planners must be reconsidered.

A detailed plan for comprehensive reform of bankruptcy and related laws is urgently required. It should set the scope and objectives of the issues to be addressed and the resources required, including specialised expertise, a process and a schedule.

An expert advisory committee led by Thai experts (legal and other) and including global experts from major legal traditions should be set up to achieve the vital objective of reforming the country`s insolvency laws and practice.

Insolvency law is a highly technical area that allows for a variety of approaches, even in industrial countries. A clear consensus on key issues is often lacking.

Legal norms and mechanisms are political bargains, however, and the laws governing insolvency, in particular, are continually evolving worldwide. But there is benefit in obtaining advice from a broad range of international experts and in filtering that advice through Thai experts.

New criterion should not be extended to personal insolvency or corporate bankruptcy until the issue of the social and financial stigma arising from insolvency is addressed, because unless and until the latter issues are addressed, courts are likely to apply any new criterion as narrowly as possible.

The change in the definition of corporate insolvency should be considered on an urgent basis as a short-term measure to provide easier and quicker access to reorganisation, and thereby increase the chances of successful rehabilitation.

Equally urgent is the need for stronger procedures for debt collection and security enforcement.

Such far-reaching reforms have the potential to raise Thailand`s investment climate to global standards

The Nation 19.2.01

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Monday, February 19 1:37 PM SGT

Thailand Newspaper Highlights Feb 19, 2001
BANGKOK, Feb 19 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- The new government will announce measures to stimulate the economy, helped by a review of the current inflation-targeting policy.

- People may be sceptical about why a group of former senior managers gave up their lucrative posts at global financial institutions, and why Post Publishing Plc poured up to 80 million baht into an Internet business, now that the dot.com romance seems to have cooled.

- Bangchak Petroleum Plc`s 3.3-billion-baht loss over the past two years was largely beyond the state-run company`s control, according to Sirichai Sakornratanakul, the president.

- In an effort to reduce public opposition to the construction of a coal-fired power plant in Bor Nok, Prachuap Khiri Khan, Gulf Power Generation Co plans to establish a fund to reassure the residents nearby that they will be paid if the power plant causes any damage.

- French drugmaker Rhodia includes Thailand in its plans for business acquisitions and expansion into businesses other than pharmaceuticals.

- In many parts of Asia a new generation of employees-and consumers-is rapidly emerging. Raised during the economic boom of the 1980s and 1990s, exposed through their formative years to the impact of technology, globalisation and mass consumption, often cosmopolitan and well educated, young Asians are a new generation of knowledge workers.

- Bangkok Bank expects to attract 80,000 new credit-card customers this year and raise its overall base to 400,000 by focusing on small and medium-sized enterprises [SMEs].

- Toyota has lost its crown as top-selling automaker in Thailand, according to sales figures for last month.

- Investment backed by state promotional incentives has expanded rapidly in the northern region, with Lamphun province leading the way.

- Bank of Ayudhya will invest 2.5 billion baht over the next three years in information technology to support business expansion. More high-tech financial products will be introduced this year, and branches will be upgraded.

- AIG Finance (Thailand) said its board on Feb 15 approved the resignation of Orapin Archeapsamuth as a director, and of Prok Amranand as an independent director and audit committee chairman. It appointed Kenneth Lee White as audit committee chairman, and changed the position of vice-chairman and authorised director Sornthep Gomutputra to vice-chairman and director with no signing authority.

- An inquiry has begun into whether manufacturers are siphoning money out of the two-billion-baht programme to support the price of tapioca chips.

- Thailand`s economic growth could mushroom more quickly if farmers and the government focused on fungus.

- With industrial standards being tightened, consultants Robere & Associates (Thailand) Co plans to team up with Quality System Service Co of Australia to expand advisory services on international standards in an attempt to sign up 100 new clients this year.

- After some initial hesitation and, indeed, suspicion, the Thai travel and tourism industry is warming to the setting up of a convention and exhibition bureau solely to market the country`s growing range of opportunities in this lucrative sector of the travel business.

- Buttered crispy bread, croutons and whole grain products are among what`s cookin` down on the farm at President Bakery Co.

- The Communications Authority of Thailand is almost ready for corporatisation, planners say, but they wonder if their work has been in vain as the new government may put the programme on hold.

- The new cabinet, particularly ministers in the economic portfolios, has disappointed observers who had been counting on Prime Minister Thaksin Shinawatra`s ability to create a "dream team".

- Pfaff GmbH of Germany, a manufacturer of sewing machines, has named Fenatex International Co as its new distributor in Thailand in a bid to regain market leadership in three years.

- Jakfree.com, an online game site, remains upbeat about breaking even this year while other dot.com operators fall by the wayside.

- The Mineral Resources Department has urged the government to do more to help Thai companies mining gemstones in Madagascar.

ASIA PULSE 19.2.01

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Schlussbericht: Set Index auf Monatstief (-2%) [19.02.2001 - 11:56]



Der Aktienmarkt in Thailand konnte sich dem Abwärtssog der Nasdaq nicht entziehen und begann diese Woche auf einem Monatstief und so verlor der Set Index 2 Prozent oder 6,36 Punkte auf 309,64 Zähler. Das ist der tiefste Stand seit dem 16. Januar. Die Elektronikwerte kämpfen schon geraume Zeit mit sinkenden Nachfragen, Gewinnwarnungen und der Einbruch der Nasdaq (- 5%) lösten dann noch größere Sorge aus. Viele Investoren zogen sich aus ihren Bankwerten zurück und warten auf neue Nachricht von der Regierung, wie man denn nun das Kreditwesen reformieren, bzw. mit den faulen Krediten umzugehen gedenkt.

Auch über das am Samstag von Premier Thaksin Shinawatra neu gebildete Kabinett konnte man streiten. Sofort wurden wieder Rufe nach Vetternwirtschaft laut, da viele der 35 Minister Freunde von Thaksin sind. 18 davon sind zum ersten Mal Minister, manche Posten sind an alteingesessene Politiker gegangen, von denen Thaksin eigentlich Abstand nehmen wollte. Der Premier verteidigte sein neues Kabinett und kündigte an, mit ihm hart und vor allen Dingen ohne Korruption regieren zu wollen.
Telekomtycoon Adisai Potharamik wurde Handelsminister, Pracha Maleenond, ein Medienmagnat, gehört der Posten des Nachrichten- und Kommunikationswesens und Suriya Juengrungraungking untersteht der Industriebereich.

Nachdem Nortel Networks (862017) und Dell (875403) bekannt gaben, dass ihre Zahlen weniger gut als erwartet ausfallen, wurde die Sorge um eine nachlassendes Industriewachstum wieder größer. Infolgedessen verloren die Elektronikwerte heute.
Hana Microelectronics fiel 1,6% auf 91Baht ein, Delta Electronics (907981) brach 4,8% auf 200 Baht ein, ebenso wie die K.R. Precision, die 4,8% auf 5,9 Baht taumelte. KCE Electronics (883693) gab 3,7% auf 65,5 Baht nach.

Auch die Banken und andere Werte fielen, da viele Investoren auf erste Schritte bezüglich der Stimulierung der Wirtschaft des neuen Kabinetts warten.
Die Thai Farmers Bank (878347) stürzte 4,1% auf 23,25 Baht, die Thai Military Bk. (878373) 4,8% auf 7,9 Baht und die Bangkok Bank (883565) 0,7% auf 38,25 Baht.

Die Gewinner der letzten Tage konnten sich dem heutigen Umfeld auch nicht entziehen.
Die TelecomAsia ging 6,2% auf 22,75 Baht nach unten, nachdem sie die letzten zwei Tage 2,1% zulegen konnte. Der staatlich kontrollierte Öl- und Gaskonzern PTT Exploration & Production (893245) gab 2 % auf 98 Baht ab, nach einem 4,2 prozentigen Gewinn am Freitag und Donnerstag und die Banpu Pcl konnte ihren 3,7% Zuwachs der letzten beiden Handelstage ebenfalls nicht halten und verlor 1,2% auf 20,75 Baht.

Zu guter Letzt fiel noch die United Broadcasting ganze 6,9% auf 13,5 Baht. Ausschlaggebend waren die schlechten Zahlen. Obwohl die Einkünfte aufgrund vieler Neukunden 19 Prozent stieg, betrug der Nettoverlust 2,08 Mio. Baht.


Autor: Katharina Angrüner
Boersenreport.de 19.2.01

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Monday, February 19 7:37 PM SGT

Asia Markets Shares Close Lower Feb 19, 2001
A round-up of Asian stock markets for February 19, 2001, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, Feb 19 Asia Pulse - Asian share markets closed lower today as falls in the tech-heavy Nasdaq over the weekend dampened investor sentiment and took its toll on technology stocks throughout Asia.

Concern over domestic factors also contributed to the state of the markets.

The biggest losses were recorded on the Thai stockmarket, which closed 2 per cent lower on selling of banking, finance and electronic sectors, which brokers said was a result of losses on Wall Street.

The composite SET index fell 6.36 points to 309.64.

Share prices in Taiwan fell 1.8 per cent, drawn lower as the Nasdaq`s fall over the weekend raised concerns about the prospects of Taiwan`s technology sector and triggered strong selling of electronics issues, dealers said.

The Taiwan Stock Exchange weighted price index fell 108.37 points to close at 5,937.3.

South Korean shares fell 1.4 per cent on institutional and foreign selling, as sentiment was undermined by a sharp fall in the US markets, brokers said.

The KOSPI index closed down 8.25 points at 596.67.

Singapore shares closed 1.2 per cent lower, which brokers attributed to losses in US stocks.

The Straits Times Index closed 23.55 points lower at 1,948.01.

Hong Kong share prices closed 0.9 per cent lower, with investors fearing a possible rise in oil prices due to tensions in the Middle East, dealers said. The one-month low was also attributed to growing concerns over technology stocks.

The key Hang Seng index lost 139.35 points to close at 15,490.96.

Share prices in the Philippines dropped 0.9 per cent in thin trade as investors took to profit-taking after a series of disappointing calendar 2000 results for key listed companies, analysts said.

The Philippine Stock Exchange composite index lost 15.96 points to close at 1,673.95.

Australian shares dropped 0.7 per cent following a rout of local blue-chip stocks after losses on Wall Street, brokers said.

The All Ordinaries index lost 22.9 points to close at 3240.

Shares in Malaysia closed 0.5 per cent lower with losses in local technology stocks following Wall Street`s drop, dealers said.

The Kuala Lumpur Stock Exchange composite index lost 3.33 points to finish at 711.33.

Share prices in Tokyo fell 0.4 per cent to a 28-month low as a steep fall in the US Nasdaq, as well as gloom over the Japanese economy, dampened investors spirits, dealers said.

The Tokyo Stock Exchange`s Nikei-225 index dropped 55.9 points to close 13,119.59.

Elsewhere, Jakarta share prices bucked the trend and closed 0.7 per cent higher.

The Jakarta Stock Exchange composite index rose 3.06 points to close at 435.139.

MONDAY INDICES:

* SYDNEY - All Ordinaries 3240 (down 22.9 points)

* HONG KONG - Hang Seng 15,490.96 (down 139.35 points)

* TAIPEI - Weighted 5,937.3 (down 108.37 points)

* SEOUL - Composite 596.67 (down 8.25 points)

* TOKYO - Nikei 13,119.59 (down 55.9 points)

* MANILA - Composite 1,673.95 (down 15.96 points)

* SINGAPORE - STI index 1,948.01 (down 23.55 points)

* JAKARTA - Composite 435.14 (up 3.06 points)

* KUALA LUMPUR - KLSE index 711.33 (down 3.33 points)

* BANGKOK - SET Index 309.64 (down 6.36 points)

(C) Asia Pulse Pte Ltd.

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Somkid: Ready, SET, go

Exclusive interview
Apinya Sonhom, bday 19.2.01
staff writer
The new finance minister, Somkid Jatusripitak, has unveiled a comprehensive stimulus package for the Stock Exchange of Thailand (SET), which includes speeding up the listing of state enterprises, aggressive promotion of the Market for Alternative Investments by listing promising small and medium-sized companies, offering a greater range of products for foreign investors, and restructuring the SET`s management.

In an exclusive interview with Business Day, Somkid also said the government would strengthen the role of state-run Krung Thai Bank (KTB) as its tool for economic management and stimulation.

He also hinted that EXIM Bank president Pridiyadhorn Dhevakul may be chosen to head the proposed National Asset Management Company.

The development of the stock market will be one of this government`s top priorities, Somkid said. It would be the most effective instrument in reviving economic and investment dynamism.

More quality companies will be listed, offering foreign investors "wider choices" and expanding market capitalization, Somkid said.

"At the moment, there are no more than ten blue-chip companies on the SET. It`s just impossible for foreign funds to come in," Somkid said, adding that a booming stock market would help jump-start the economy.

Quality stocks, Somkid said, will come from soon-to-be-privatized state enterprises.

The new government plans to establish a special holding company for these enterprises, Somkid said.

The holding company will be wholly owned by the Ministry of Finance and under the direct supervision of the prime minister, Somkid said.

"This holding company will be 100 percent owned by the Ministry of Finance, which will hold shares in all the state enterprises that will be corporatized and whose shares will be offered to the Thai public and eventually foreign investors, once their valuation has improved," Somkid said.

"Therefore, the prime minister, because of his control of these billions [of US dollars] of government assets, must be extremely transparent and incorruptible," he said.

The privatized state enterprises will be listed on the SET.

"This will be a lucrative source of revenue for the government which, in turn, can use the generated income to fund or invest in economic stimulus and social projects," he said.

Citing the success of the Singaporean government`s establishment of Tamasek Holdings as the holding company of state-owned government-linked companies leading to privatization and disbursement of shares to the general public, Somkid said, the Thai government could even opt for offshore investment if it raises enough funds.

As more quality products are available to investors, the overall performance of the SET will gradually pick up and the market`s capitalization will rise, he said.

"Foreign investors still want to invest in the Thai stock market because they see the potential. If the government has the right stuff, they will come back," Somkid said, adding that the small size of Thai market has been one of the factors holding back foreign investors.

Somkid, who had served as an advisor to the SET and a director of its listing committee, said that its supervisory team must have a clear understanding of the government`s policies. "The management of the stock market must adjust their frame of mind to be in line with the government`s policies. They must also know the business and be keen on marketing strategies and on how to expand the customer base," he said.

The Bank of Thailand must serve as a good coordinator in the process of revamping the market, he added.

The new finance minister, who earned a PhD in Business Administration from Kellogg School of Management, said that the Thai stock market should also revise its listing regulations to better enable small and medium-sized companies to raise funds.

If the SET is revitalized, the private sector will have an efficient source of raising capital and will not have to depend as much on banks, he said.

"Once investments return to the market, the listed companies will have incentive to remain in the ball game as new comers enter the market. When capital can be easily raised, overall business investment will subsequently grow," Somkid said.

Somkid plans to invite two stock market experts, Viroj Nualkhair, president of the Securities Companies Association, and Sangwian Intharachai, former chairman of the SET`s Board, to be his advisors, he said.

When asked about the policies of former finance minister, Tarrin Nimmannahaemindra, he said that he would keep Tarrin`s policies intact.

"Khun Tarrin and I have mutual respect, there is no need to undo policies of his that work," Somkid said.

One of the policies initiated by Tarrin that would be maintained by this government is strengthening Krungthai Bank`s role as the government`s tool for managing the economy, Somkid said, citing the ongoing problems of excess liquidity in the banking system and falling deposit rates.

The government has already prepared a plan to absorb the influx of savings into KTB by issuing bonds and using the income raised for its projects, he said.

When asked about the progress of the national AMC, Somkid said that its establishment must be discussed in detail again by the Thai Rak Thai party and relevant agencies.

A process to seek the appropriate person to manage the AMC has already begun, he said, hinting that one candidate is EXIM Bank`s Pridiyadhorn Dhevakul.

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Don`t turn armed forces into politicians` tool, Chuan warns

Exclusive interview
RON CORBEN, bday 19.2.01
FORMER prime minister Chuan Leekpai emphasized recently that reforms within the Ministry of Defense during the last government were directed at eradicating corruption within the military and preventing the armed forces from being a "tool of the government" or "vested interests."

In comments directed at the incoming administration of Thaksin Shinawatra, Chuan expressed his hope that most reforms will remain in place, despite the likelihood of personnel changes under the incoming defense minister, Chavalit Yongchaiyudh .

In a wide-ranging interview with Business Day, Chuan acknowledged the defense minister`s portfolio had been "a very difficult and heavy duty."

But, he said, the aim had been to end corruption and promote the Thai military as a "legitimate and professional force doing its legal duty."

Incoming Defense Minister Chavalit has called for a return to the recognition of seniority as a means of promotion within the military, a move critics say would undermine reforms put in place over the past three years.

Chuan said his government had wanted to avoid the risk of the armed forces being "used as a tool of politicians."

"We do not want to see the armed forces [become] a force which is not professional, nor [one that fails to] live up to its full potential," he said. "We do not want to see the armed forces used as a tool of corruption, used to help in election fraud by certain groups, or by influential groups."

Chuan expressed his belief that he had successfully improved the public image of the armed forces. "In the past, military conscripts had been involved in election fraud É they were tools of election fraud."

"The positive changes, I believe, took place because I did not make the military a tool of my personal interests. I did not use them as a tool in the elections. I did not use them as a tool of government," he said.

Chuan said the operations of the armed forces had been improved with the restructuring, "and I believe there should be continuity in such an approach."

But he accepted that while "most of the principles will remain," there may be changes in personnel.

Chuan`s comments were made during his last week as Thailand`s 22nd prime minister, prior to the weekend unveiling of Thaksin Shinawatra`s new cabinet, and six weeks after the January elections which swept into power Thaksin`s Thai Rak Thai party.

But Chuan accepted the Democrat party`s defeat, given the high expectations people had in the government to revive the economy quickly.

"I think we have to accept the fact that some people had greater expectations that we would address the problems that affected their everyday lives more than had happened," Chuan said.

But while admitting there had been some calls for him to step aside as Democrat party leader, Chuan said he intends to stay on to head the party for at least another two years.

"Given the election results, I still believe the Democrat party is supported by the people, and we, in fact, received increased votes compared to the previous elections, particularly in votes from the south [of Thailand] and the central region," he said.

But the most valuable contribution of his government during its term through the crisis period of 1997/1998, he said, was preventing a social crisis due to sharply higher unemployment.

"Although the country and the people had been made poorer by the crisis, there was no social crisis. There was still enough food for the people to consume and they were still able to lead more or less a normal life despite being poorer," Chuan said.

The Kingdom, he said, was now stronger given all the reforms undertaken by the government to improve the rules and regulations in light of globalization.

"I think this all helped to strengthen our economy and to make sure that it can take into account É the various challenges brought about by the changing world environment," he said.

Ron Corben is a Bangkok-based business correspondent and a regular contributor to Business Day.

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Markets
Thai Stocks - Factors to Watch - February 19
Reuters
19 Feb 2001 10:45 (GMT +08:00)

BANGKOK, Feb 19 (Reuters) - Following are some of the main
factors likely to affect Thai stocks on Monday:
- Stock Exchange of Thailand (SET) index expected to move
lower, pressured by losses in U.S. markets on Friday;
announcement of country`s new cabinet contained no surprises but
newspapers say line-up is a disappointment
- Somkid Jatusripitak was named finance minister, as expected
- Somkid`s appointment was factored in and is not expected to
have a major impact on stocks on Monday
- "At the moment external factors are more negative so our
market will face some pressure. While we already knew the cabinet
line-up, we will just have to wait to see how they carry out
their duties," said Anothai Chiengtawun, marketing manager at
Thai Sakura and Finance Securities
- Market to focus on corporate earnings results
- Foreign investors were net sellers for the seventh
consecutive day on Friday, selling a net 159.86 million baht of
Thai stocks; so far this year they have bought 5.10 billion baht
net compared with about 33.07 billion baht net sold in 2000
** For a breakdown of trading on the Thai stock market please
click on [nBKK278808]

THAI MARKET CLOSE ON FRIDAY
- Composite SET index <.SETI> up 0.85 pts (0.27 pct) at
316.00

------------------SETI IN PERSPECTIVE-------------------
Move on day +0.27 percent
Year high 347.19
Year low 268.85
Change on yr +17.39 percent
All time high 1789.16 05 JAN 1994
All time low 76.44 17 MAR 1976

- Next resistance seen at 320 and 325 points; support at 310
and 305 points

GLOBAL MARKET CLOSING ON FRIDAY
- Dow Jones <.DJI> down 91.20 pts (0.84 pct) at 10,799.82
- Nasdaq <.IXIC> down 127.53 pts (5.0 pct) at 2,425.38

ASIAN STOCK MARKETS ON MONDAY AT 0240 GMT
- Tokyo`s Nikkei <.N225> down 1.24 pct, Singapore <.STI> down
0.9 pct and Hong Kong <.HSI> down 0.56 pct

STOCKS TO WATCH
- Electronics <.SETEC> and telecoms <.SETCM> -- after sharp
drop on the Nasdaq <.IXIC>
- Siam Cement -- sees modest gain in 2001 cement
demand
** For details, double click on [nBKK201078]
- United Broadcasting Corp -- 2000 net loss narrows
** For details, double click on [nBKK287991]

Some key sectoral performances year-to-date.
Sector RIC Performance
SET Index <.SETI> +17.09 percent
SET 50 Index <.SET50> +20.61 percent
Banking Sector <.SETB> +29.61 percent
Building & Furnishing <.SETBF> +4.40 percent
Communications <.SETCM> +26.70 percent
Energy <.SETEN> +1.17 percent
Electrical Components <.SETEC> +6.93 percent
Entertainment <.SETER> +14.93 percent
Finance <.SETF> +49.75 percent
Property Development <.SETPR> +23.77 percent


Thailand Indices
<.SETI> SET index
<.AV.BK> Top 10 by volume
<.SET50> SET-50 index
<.NG.BK> Net gain leaders
<.NL.BK> Net loss leaders
<.PG.BK> Percentage gain leaders
<.PL.BK> Percentage loss leaders

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asia pacific
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Thai government takes reins amid export fears
By Amy Kazmin in Bangkok
Published: February 18 2001 17:46GMT | Last Updated: February 19 2001 00:21GMT



Thaksin Shinawatra, the new Thai prime minister, and a cabinet packed with loyal allies, businessmen and old-guard politicians took power on Sunday amid worrying signs that Thailand`s exports are already being hit by the slowdown in the US economy.

Thailand logged a $400m trade deficit in January, as exports fell 10 per cent compared with January last year, according to trade data released on Friday.

The unexpected deficit ends a 30-month run of consistent trade surpluses, and has raised concern about just how much export growth, a key driver of Thailand`s economic recovery, will falter this year.

The inevitable export slowdown adds new urgency to the need for fiscal stimulus measures to keep Thailand`s economy moving. But analysts are still unsure how Somkid Jatusripitak, the new finance minister, will handle the challenge.

Mr Somkid, a US-educated marketing expert, has been a professor, advised big Thai companies and the Thai stock exchange, and co-wrote a book on the competitiveness of nations. But he has little experience in macroeconomic policymaking.

"Mr Somkid has been involved in the micro-sector, marketing, restructuring, but people don`t believe he has the experience of macroeconomic management," said Somphob Manarangsan, an economics lecturer at Chulalongkorn University.

Shane Gunther, head of research at UBS Warburg, said foreign investors were still sizing up the relatively unknown Mr Somkid, who was an important behind-the-scenes driver of the Thai Rak Thai campaign, but is just now stepping into the public spotlight himself. "He will be under enormous scrutiny from the very start," said Mr Gunther.

During the election campaign, Mr Thaksin promised Thai voters a three-year debt moratorium for farmers, a million baht ($23,500) per village to set up a revolving microcredit scheme, and a national asset management company to buy up banks` bad loans.

Hammering out the exact details of these broad policies is likely to be one of the cabinet`s first tasks.

With loyal aides to Mr Thaksin in key positions - such as the interior and foreign ministries - Mr Somphob predicted that they would be able to reach an easy consensus on implementing campaign promises.

But he added that the installation of prominent businessmen to key cabinet positions could cause conflicts of interest and discourage some reforms or liberalisation.

Adisai Potharamik, the commerce minister, founded two large telecommunications companies, Jasmine and TT&T.

Suriya Juengrungruangkit, the new industry minister, is the former chief executive of Thailand`s largest auto parts manufacturer.

Pracha Maleenond, the deputy transport and communications minister, comes from a family that owns a main television channel.

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Thailand`s Thaksin Reneges on His Promise
February 19, 2001


The new Thai Prime Minister Thaksin Shinawatra defended his cabinet from criticism saying he had backtracked his promise to appoint qualified ministers with clean records.


Thaksin`s cabinet line-up was unveiled on Saturday in which many top jobs went to Thaksin`s close friends and the rest to old-style politicians.

`Cabinet line-up a let-down,` the Bangkok Post lead headline screamed.

One of Thaksin`s close allies who has a daunting task to restore Thailand`s economy is the new finance chief, Somkid Jaturispitak. The minister has a finance and marketing education and finished his post-graduate studies in the United States.

Controversial Project

Somkid is one of the creators of a controversial proposal for a national asset management company (AMC) that would take over bad debts from banks. Observers say Somkid lacks experience in banking circles and that he is not capable to handle the complexities of running the Thai economy.

However, Prime Minister Thaksin who had indicated that a political insider would be the new finance minister, defended his choice saying that Somkid has what it takes to take the job.

Promises

Prime Minister Thaksin has many promises to keep, including his campaign pledge to slash both personal and corporate taxes.

Through this policy, Thaksin promised to try to generate as high an economic growth rate as possible, boost domestic demand, and use the growth and tax generated to pay off the public debt.

Many fear this will create a bubble economy.

And bubbles burst.

(ffs/sml)

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Thaksin gets down to the harsh realities

By PETER ALFORD THE AUSTRALIAN
19feb01

BANGKOK: Thailand`s new Government this morning finally gets to grips with an in-tray already piled high with daunting problems.

The new cabinet was sworn-in yesterday by King Bhumibol Adulyadej, 44 days after voters gave Thaksin Shinawatra the most comprehensive mandate in Thailand`s history.

But Mr Thaksin`s honeymoon has been brutally short and his ministers confront not only the challenges of implementing his radically populist economic promises but crises that were hardly on the radar a month ago.

Finance Minister Somkid Chatusripitak, whose modest credentials for the job are under fire, has just been handed a startlingly bad set of trade figures. They show Thailand`s first balance of trade deficit in 30 months.

Exports, the engine of an otherwise stolid recovery, slumped 10 per cent, with the US slowdown the main culprit.

Foreign Minister Surakiat Sathirithai and Defence Minister Chavalit Yonchaiyudh must immediately tackle a Thailand-Burma border crisis that erupted 10 days ago in violence between the two armies. It is a perennial but worsening mess of drug production, trafficking, ethnic insurgencies and refugee flows.

But General Chavalit, whose cosiness with the Burmese regime and capacity for muddle are much scorned in Bangkok, says poor border demarcation caused the strife.

The Bangkok Post reported yesterday senior officers were "stunned" that General Chavalit had contradicted the army commander and armed forces chief, who blamed Burmese violations, and openly questioned his fitness for the ministry

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Thaksin defends Cabinet
To criticism that he has caved in to old-style patronage politics, he says he has made the best of the choices he had and, anyway, change takes time

BANGKOK - Prime Minister Thaksin Shinawatra said his Cabinet is filled with the best candidates available, dismissing criticism that he had backtracked on a promise to appoint only well-qualified ministers with clean records.

Newspaper commentaries and analysts yesterday criticised the Cabinet line-up unveiled on Saturday in which many top jobs went to Mr Thaksin`s close friends and the rest to old-style politicians whom he had promised to purge.

`Cabinet line-up a let-down,` the Bangkok Post lead headline screamed. The article said that Mr Thaksin had included `undesirable politicians and businessmen with vested interests`.

The defence, communications, transport and agriculture ministers represent `the old-style patronage politics that most of Thailand wants to do away with`, The Nation said in a commentary.

Mr Thaksin, a tycoon-turned politician, conceded that some of the Cabinet ministers were selected for political expediency and that his hand was forced by the old guard who account for half of his parliamentary strength.

`We can dream of sudden political change, but in reality I cannot ignore the opinions of the country`s veteran` lawmakers, Mr Thaksin told reporters after a 20-minute audience on Saturday with Thai King Bhumibol Adulyadej who gave his formal approval to the 35-member Cabinet.

The Cabinet was sworn in yesterday and King Bhumibol urged the Cabinet members to `do your best and devote yourself to the Thai people`.

`If you succeed you will be the pride of the Thai people and they will salute you...,` he said during the ceremony at his palace in Hua Hin, near Bangkok.

Some analysts said Mr Thaksin may get away with the Cabinet because of the lingering euphoria surrounding his landslide victory in the Jan 6 general election.

`Thaksin fever is still high, so people may believe he can reform the ministers with not-so-clean records,` said political analyst Suchart Thadadamrongvej.

Mr Thaksin, however, `would have to be very decisive with them in order to maintain his popularity`, Mr Suchart said.

Mr Thaksin said it took time to end patronage, power-games and money politics.

`We need a chance to work. I am a team leader who will make sure that all ministers perform to the best of their ability,` he said.

Mr Thaksin has also raised eyebrows by giving key ministries to ministers with vested interests or to unsuited and inexperienced people, including Finance Minister Somkid Jatusripitak who has never held a ministerial post before.

Still, the Cabinet is better than those led by former prime ministers, The Nation said.

And even though it may not match the quality of the economic team of the previous Chuan Leekpai government, it is likely to work together more smoothly, it added. --AP
The ST 19.2.01

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Finance site believes it has staying power
ENTREPRENEURS: From a family of `over-achievers`, founder of Thaifin.com takes a career gamble on a new idea

Nikhil: "I want people to know me as a professional." _ SOMCHAI POOMLARD

Charoen Kittikanya

People may be sceptical about why a group of former senior managers gave up their lucrative posts at global financial institutions, and why Post Publishing Plc poured up to 80 million baht into an Internet business, now that the dot.com romance seems to have cooled.

Nikhil Bhati Srinivasan is out to prove the sceptics wrong, saying that Thaifin.com is worth the risk as long as the site is focused and remains professional.

"Our big advantage is focus. We are all about customers` money and finance. That`s it. One of the basic things we learned in business school is to focus on what we know how to do," said Mr Nikhil, chief executive officer of Thaifin.com.

Mr Nikhil, formerly of Bank of Asia Asset Management, has brought on board a group of financial professionals from Morgan Stanley, Jardine Fleming, GE Capital, ABN Amro and ING to form a 50:50 joint venture with Post Publishing.

Launched last week, Thaifin.com has positioned itself as Thailand`s first comprehensive personal finance web site. It was built on the successful model of Charlesschwab.com in the United States, a site providing neutral information, a platform for other banks and financial institutions` products, and online broking and trading.

Its vision is to inform individuals of all backgrounds about issues relating to their personal finances. The site is designed to make the handling of finances as stress-free as possible-no more moving from bank to bank in search of the product that fits customers` needs.

The timing for such a venture in Thailand might not seem that auspicious, but Mr Nikhil believes that the uniqueness of Thaifin.com gives it an edge.

"Yes, right now the dot.com business is falling, because in the United States everybody has rushed into the same space," he said.

"There are over 100 pet store sites, 100 finance sites, but I think the market is not here in Thailand yet. But if you wait for the market to come, you`re not going to do anything.

"What we want to do is to create an atmosphere in which ordinary working people can come and learn as well as look for information and transactions that personalise their finance. Above all, we want to create brands for quality, reliability, neutrality, education and information.

"We want visitors to come to our site every single day, not to seek car loans, apply for credit cards or look for any other personal products. We want them to visit us every day to check for daily news stories, stock prices, mutual fund portfolios, sports, tips for beauty, health and smart shoppers."

Mr Nikhil believes the revenue potential for the site is solid. The business model for Thaifin.com has two revenue streams-advertising and referral fees from financial institutions based on application forms filled in by site visitors.

In the long term, referral fees are seen as the source of 70% of revenue, but in the first few months, advertising will provide most of the earnings.

Over the next couple of months, Thaifin.com plans to seal partnership deals with insurance firms and later with securities and brokerage firms. Its partners now include Thai Farmers Bank, Bank of Asia, Siam Commercial Bank and Standard Chartered Bank.

A polished executive educated at Cambridge and Harvard universities, Mr Nikhil acknowledges that he appeared to be putting his future on the line when he left his position as chief executive at BoA Asset Management. During his tenure there, the assets under management rose to nine billion baht from four billion.

"Many people may think I`m crazy to give up safe employment and move into an arena with hefty risks and uncertainty. I accept that, but I think the world is changing and Thailand needs to get up to speed on technology, the Internet, information and business, and it`s nice to do something.

"The game is being professional, and if you keep your focus, honour, ethics and good ideas, why not?"

The desire to achieve runs in the family, he admits.

He was born the great-grandson of a rajah in India, into a family of rulers, ministers and businessmen for several generations, and the 15th family member to study at Cambridge in England. He is married to Pawana, a daughter of Sonthorn Pokachaiyapat, a well-known lawyer.

Other successful relatives abroad include a first cousin who runs the .NET strategy and all software relationships for Microsoft, and another who is president of Pepsi Cola Worldwide.

"I am surrounded by an over-achieving family. It`s likely that pressure drives me to take risks and work harder to be professional," Mr Nikhil muses. "I don`t know if people know me from my background, but I want them to know me as a professional and my reputation is derived from that."
The Post 19.2.01

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ECONOMY / NEW POLICY DIRECTION


Inflation cap no longer guideline
Stimulus measures are prime tools


Post Reporters


The new government will announce measures to stimulate the economy, helped by a review of the current inflation-targeting policy.

In its statement to Parliament, probably next Monday, the government is expected to make clear that monetary policy is subservient to fiscal measures in reviving the economy.

Surakiart Sathirathai, the newly appointed foreign minister, discussed the thrust of the new direction of economic policy, which he has had a major role in drafting.

The Monetary Policy Board of the central bank had signalled to the markets that the targeted annual ceiling for inflation for the next two years would be 3.5%, he said.

"In fact, inflation is lower than that, so it`s not necessary to set such a target. The target signals only that the central bank prefers to see low economic growth," Dr Surakiart said.

Although he did not say the government would directly intervene in the central bank`s monetary policy, he said the finance minister would send a signal to the markets that the government would stimulate the economy to achieve strong economic growth.

"The signals by the finance minister should be enough to boost market sentiment and stimulate the economy."

Dr Surakiart said Somkid Chatusipitak had been Prime Minister Thaksin Shinawatra`s choice for the finance portfolio from the start.

Dr Somkid had been a key architect of the new government`s economic policies, Dr Surakiart said, adding the negative market reaction to the appointment had been unfair and Dr Somkid should be given a chance.

Dr Somkid`s deputies are Suchart Chaovisit, a former director-general of the Revenue Department; and Varathep Rattanakorn.

Other economic ministers are: Chucheep Harnsawat, agriculture; Adisai Potharamik, commerce; Suriya Juengrungruangkij, industry; Wan Muhamad Nor Matha, transport and communications; and Chaturon Chaisaeng, a PM`s Office minister overseeing the Board of Investment.

The government`s key slogan would be "forward engagement", which would replace the "flexible engagement" of the Democrat-led administration, Dr Surakiart said.

This meant the Foreign Ministry would co-operate with Thailand`s neighbours to establish a "common production base" to boost the region`s competitiveness in world markets. Thailand would move toward a common position with neighbouring countries in international trade forums, such as the World Trade Organisation.

"Thailand will persuade other Asian countries which have suffered from the currency crisis to publicly explain to the rest of the world our problems, our experiences and our solutions. We will not allow G7 (major industrialised nations) to continue dominating us with policies which could cause another crisis for us in the future," he said.

The Post 19.2.01

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Sex-in-the-shadows nothing new in city


AS night falls not every area in Bangkok is as peaceful as it seems.

In the secrecy of shadows many couples engage in sexual activity at Bang Kapi district`s Klongchan Botanic Park and along the darkened Henri Dunant Road.

Condoms used and thrown carelessly way in the Klongchan Park are more than enough evidence of their secret.

"Joggers come to my shop in the morning and tell me about the condoms they`ve seen," Pramual, a 45-year-old who sells food opposite the park, said.

She explains that couples have long been using the public park for their nocturnal activities. "The couples start coming in at night. Prostitutes often gather to look for customers. It`s very dark here - no electricity or guards," Pramual said.

Noi, a 42-year-old gardener at the park, said: "The park is accessible to everyone all night. The homosexuals and the prostitutes come here first. Then about 1am the teenagers start coming in. I don`t like to stop them, because I`m here alone, and besides there have been no reports of serious crime anyway."

Reporters have not seen any evidence of this sexual activity.

Nevertheless, nothing escapes the observant eyes of Pramual. "I`ve seen it all. It used to be bus conductors. Later, children addicted to glue started moving in. But most of the time, its just teenagers who make out near the fence and go home at 4 or 5am," she said.

Num, a 28-year-old motorcycle-taxi driver, said he sometimes watched couples making love "just for fun".

"Most of the time it`s teenage students who live in the housing project nearby. They have to look for a suitable spot during the afternoon that they can use at night. Most couples go there at dusk and come out late at night. If they don`t come to the park to do that, then why do they need to hide in the dark?" he asked.

Another food vendor, Den, 36, recounted the stories he had heard from his teenage customers. "Sometimes people need to change the location. Others probably don`t know where else to go," he said. He said that if the park continued being safe and as long as there were no rapes, the couples should be allowed to continue with their rendez-vous.

Yet Bang Kapi district authorities see things in a different light. They are already taking measures to stop them. "From next month all dark areas will be lit up, and guards will patrol the area," Krisada Suksanguan, director of the Bang Kapi district, said. As an added measure, he said, the park will no longer be open all night. "It will only be opened from 5am to 7pm," he said.

Even though the Klongchan Botanic Park case is solved, the problem on Henri Dunant continues.

"Sometimes I have to knock on the windows or they wouldn`t even know that I was there," says a policeman assigned to patrol the road.

He said many drivers parked their cars, engines running, every night.

"Some of them just make out, but a few go all the way, completely naked," he recounted.

The most popular spots for lovers are near the Triam Udom Suksa school compound, the Royal Bangkok Sports Club and Chulalongkorn University.

At about midnight, reporters confirmed that several expensive Japanese and European cars were parked with their engines on. However, the windows of most of these cars were tinted, which prevented them seeing in.

"Sometimes I have to use my torch," the policeman explained.

Although this behaviour might be thought private and personal, it could be more risky than it seems. There have been cases in the past when gangs have attacked couples, beating the man and raping the woman.

Perhaps these cases will serve as a lesson for these indiscreet couples.

BY PONGSAK BAI-NGERN

The Nation 20.2.01

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Super panel to steer govt work


A "STRATEGIC committee" to tackle immediate issues. Hundreds of advisers to provide a massive amount of information to the government. A bigger role for technology. And "bang, bang, bang" Cabinet meetings.

On his first official working day, Prime Minister Thaksin Shinawatra began imposing initiatives on how his government should operate.

On the strategic committee, Thaksin was apparently drawing from the working style of former prime minister Anand Panyarachun, whose charisma was known to impress the tycoon-turned-premier.

"The committee will seize any demanding social or economic issue, be it trade, borders or investment, summon agencies involved and make a decision within days, before seeking the Cabinet`s acknowledgement or further reviews," Cabinet secretary-general Vishnu Khrua-ngarm said.

To decentralise power, Thaksin will assign deputy prime ministers to oversee the economic-scrutinising committee and social-scrutinising committee.

PM`s Office Minister Chaturon Chaisaeng and PM`s secretary-general Dr Prommin Lertsuradet will discuss and find final formulas for the three committees.

Thaksin is also planning to increase the role and number of government advisers at various levels, according to a high-ranking Thai Rak Thai source. Leading the advisory echelons are the Baan Phitsanulok team headed by Phansak Vinyarat and the Manangkhasila team, to be supervised by Thaksin himself. The first panel will handle strategic planning while the latter, which will bring together some 160 advisers, will do research and information gathering.

Cabinet yesterday appointed Dr Prommin Lertsuradet as PM`s secretary-general, plus Gen Panlop Pinmanee and Pol Gen Prasan Wongyai as advisors to the prime minister.

At the first Cabinet meeting, Thaksin told his ministers he envisioned quicker and more efficient working methods that maximised the use of technology. The meeting took place after Cabinet was sworn in on Sunday at Klai Kangwon Palace in Prachuab Khiri Khan.

Vishnu said the new Cabinet would apply computer and telecommunications technology in its meetings for greater efficiency and cost reduction.

He quoted Thaksin as saying that modern technology did not always have to be more expensive, and that the old work patterns consumed 250 reams of paper and cost Bt180,000 per meeting. With the use of computer technology, Cabinet would cut down paper use to only 40 reams and costs to Bt50,000. Information would be kept on CD-Roms instead of paper. Training would be provided for ministers on how to use laptop computers and video-conferencing tools.

The new working style would cut the work-hours of copiers and monitoring officials from 20 to six, Vishnu said.

Besides being computer literate, members of the Thaksin Cabinet must be early-birds, as meetings will now start at 8.30am, an hour earlier than the Chuan administration. But they will have to utilise the time more efficiently as the length of Cabinet meetings will be cut by half. During the previous administration meetings normally finished at about 2 or 3pm, but Thaksin wants to close the meetings at noon so ministers can go back to work at their ministries.

The new Cabinet has also been asked to observe four working principles preached by the late revered Buddhathat Bhikkhu: suthi (sincerity), panya (knowledge), metta (universal goodwill), and khanti (patience), Vishnu said. "The prime minister has also asked ministers to work in unity and not to be attached to groups, parties or the region they are from," he said.

Thaksin also said he wanted his Cabinet to observe His Majesty`s four working principles issued during the swearing-in ceremony, by working quickly, discreetly, prudently, and in the public interest.

The Thaksin Cabinet will allow ministers to decide whether to continue or dissolve 516 boards and committees appointed by Cabinet rulings or PM`s orders. Normally the terms of panel members end when there is a change in government. Thaksin decided that the panels would continue working until the end of March and if ministers who have jurisdiction over them do not request approval for the continuation of boards` work, new boards would be appointed to replace the current ones.

Hundreds of Government House officials lined up to greet the new Cabinet. About 200 local and foreign reporters also flocked to the new Cabinet meeting room. Vishnu floated the idea that reporters may need donations to build an office close to the new Cabinet room, as the reporters` office is now about 300 metres away.

Although all ministers were in high spirits on their first working day, after a few hours they complained that the air-conditioning was freezing. Some also said they were worried about getting to work on time.


The Nation 20.2.01

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Thaksin steps back, delays Rangoon visit


PRIME Minister Thaksin Shinawatra yesterday took a step backward in his erratic approach on Burma by agreeing that the present border conflict with Burma could be tackled with existing policies in solving border conflicts.

Speaking to reporters after chairing his first national security meeting, Thaksin said the present Thai-Burmese border tension could be resolved at the local and regional committee levels.

The meeting instructed the Third Region Army to supervise the matter, Thaksin said.

The outbreak of border fighting with Burma last weekend was given priority over economic matters by the new government, which officially assumed office yesterday. The conflict, which saw casualties on both sides, has generated much debate on how Thailand should deal with the matter.

Thaksin chaired the one-hour meeting, which was attended by the relevant Cabinet members, including Defence Minister Gen Chavalit Yongchaiyudh and Foreign Minister Surakiart Sathirathai, as well as representatives from the armed forces and security agencies.

Thaksin earlier backtracked on his announced plans for an early trip to Burma to discuss the eruption of fighting between the two armies, following strong opposition from several security agencies and his predecessor.

Chavalit and Surakiart said there was no urgent need for the premier to meet with the Burmese military regime at this stage.

"We could talk, but the local authorities will handle it. There is no need to go to Burma or do anything," the PM told reporters.

Thaksin said the meeting agreed that overall bilateral ties needed to be improved but that this would come at a later stage. He said the country needed a long-term strategy and a proactive policy to deal with its neighbours. "We get bogged down on day-to-day operations," he added.

Thaksin said the persisting problems with Burma - be they boundary disputes or Rangoon`s suspicion over Thai policy toward armed ethnic minorities in Burma - could be resolved in not too distant future.

"We will come to the stage where we can talk these things through later," Thaksin said.

He stressed that the key was to restore mutual trust. "It is a matter of who blinks first, or that it takes two to tango in ceasing behaviour that creates suspicion," he said.

While the two armies have observed the ceasefire they struck after clashes over a week ago, the situation on the northern border remains tense.

A meeting of a Township Border Committee on Wednesday failed to find measures to reduce tension as both sides demanded compensation for damages caused by the shellfire.

Rangoon denies being responsible for the artillery attack on Mae Sai and has accused the rebel Shan State Army (SSA) of shelling the town and the Thai army of assisting Shan rebels in attacking Burmese troops.

The official media in Rangoon has lashed out at the Thai army`s role in the affair, accusing it of trying to annex part of Laos and Burma.

Surakiart, however, said he believed that current border conflicts would not flare up if conflict-resolving mechanisms functioned well.

Surakiart said the Foreign Ministry would also use its diplomatic channels to try to reach an understanding between the two governments. "We will take a broad policy framework that stresses fair play for both sides, while talks continue at the local levels under the supervision of Defence Ministry to restore peace along the border," he said.

Meanwhile, the reinforcement of Burmese troops and its United Wa State Army (UWSA) ally continued unabated opposite Mae Sai in Chiang Mai province yesterday. In response the army`s 2nd Calvary Regiment mobilised forces to areas on opposite sides of the border to guard against possible encroachment.

Three Wa villagers were arrested by patrol police on the Thai side yesterday for suspected espionage.

Burmese troops and the UWSA have deployed forces to guard the 150km Tachilek-Keng Tung road. The road is currently being upgraded but it continues to be used for the transport of troops and weapons to Keng Tung.

About ten Thai labourers who worked for a Thai construction company, Lampun Dam, based along the Keng Tung-Tachilek route, fled into Mae Sai yesterday because of fears they would be forcibly recruited as porters. They said some of their friends had already been forced to work as porters and that over 100 others had escaped and were still in hiding.

The Nation 20.2.01

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Line-up is unorthodox, but disappointing nonetheless


THE Political Desk takes a look at the interests represented in the new Cabinet.

Amidst high anticipation, the cats are finally out of the proverbial bag. But given Prime Minister Thaksin Shinawatra`s public mandate to form a government free of traditionally divisive political quotas, yesterday`s announcement of the new Cabinet line-up is a sheer disappointment.

Still, there are some encouraging signs, along with a mixed bag of personalities with diverse backgrounds, from unorthodox to traditional.

The list clearly reflects a political quota, both within different factions of Thai Rak Thai, which dominates the Cabinet with 27 of the 36 seats, and coalition partners.

Despite an earlier promise from Thaksin, no outstanding outsiders were appointed to the new Cabinet under the Thai Rak Thai quota. In fact, the first 16 members on the Thai Rak Thai party-list all got Cabinet posts, with the exception of Uthai Pimchaichon, who is House speaker.

Moreover, people have been placed in slots that they seem unsuited for, rather than appointed according to their backgrounds and capabilities. Some clearly represent group interests, particularly big business.

Yet overall, this new Cabinet is better than those led by former prime ministers Banharn Silapa-archa and Gen Chavalit Yongchaiyudh. On person-to-person basis, the new Cabinet might not match the quality of the Chuan economic team, but as a whole it is certain to work together more smoothly.

It is in the realm of social and home administration that the new Cabinet line-up is more impressive. The education and public health teams are expected to excel, something that the country has long been waiting for.

The new interior, foreign and justice ministers will bring freshness, eagerness and an unorthodox approach to areas of the country facing the challenges of decentralisation, globalisation and modernisation.

In contrast, the defence, communications and transport, agriculture and labour ministers represent the old-style patronage politics that most of Thailand wants to do away with.

As for the economic team, Thaksin faces the immense challenges, not only in exercising serious leadership but also proving his credibility. The new finance, commerce and industry ministers have little experience in government administration.

Several economic appointees are also on turf they are not entirely familiar with.

For example, finance minister-designate Somkid Jatusripitak is a largely untested finance man, as is tax lawyer Suvarn Valaistien as deputy commerce minister. Telecom tycoon Adisai Potharamik seems unsuited as the commerce minister.

Several appointees appear to represent special-interest groups: Adisai (telecoms), Pracha Malinond (media), Sombat Uthaisang (telecoms), and Suriya Chungrunggurengkit (automotive). This will only serve to heighten concerns of conflict of interest already hurting Thaksin`s credibility.

Meanwhile, the new agriculture minister seems to be more of a handler of mobs and protests than someone who will do anything systematic to improve the rural sector`s living standards. However, there are hopes that he will be tamed by his deputy, Prapat Panyachartrak, an agricultural planner.

The economic team is going to need every bit of help from the more experienced hands of the two new deputy prime ministers, Suvit Khoonkiti and Pitak Intravitayanan. Both have more experience in handling the bureaucracy and are known for "getting things done".

The economic ministers are also going to have to be heavily guided by the mission-oriented team of advisers to the new prime minister, led by Pansak Viyaratn.

Neither the New Aspiration, Chat Thai nor Seritham parties sent any people with credentials to this Cabinet, where they have taken up nine positions. The appointees at the Communications and Transport Ministry indeed look worrying.

The new Cabinet is in line with the composition of the coalition partners that mustered a clear majority in the House, which protects the prime minister from being personally censured by the opposition.

BY POLITICAL DESK

The Nation 20.2.01

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Old guard refuses to bow out


EVEN with a landslide election mandate, Prime Minister Thaksin Shinawatra must have realised by now that forming a Cabinet that meets public expectations is next to impossible.

Competing factions in the Thai Rak Thai Party have been a big enough headache, but Thaksin is no doubt more concerned about the public reaction when the Cabinet line-up is officially announced, most likely tomorrow.

According to information leaked to the media, Thaksin`s list of Cabinet nominees is likely to leave much to be desired for the average voter.

The roster of possible cabinet members from the Thai Rak Thai smacks of an Old Boys` Club sponsored by or representing financiers. The New Aspiration Party`s quota of Cabinet members also appears stacked with financiers, while Chat Thai`s quota looks like more of the Yee factor - a group of politicians bound to arouse public animosity for their corrupt records.

Thai Rak Thai`s list comprises some figures whose nominations are rumoured to have been the consequence either of pillow talk between Thaksin and his wife Pojamarn or party favours for financiers.

Sora-at Klinprathum, tipped to become deputy interior minister, is allegedly under the quota reserved for Thai Rak Thai`s Wang Nam Yen faction led by Snoh Thienthong.

Sora-at oversaw the party`s Central region campaign during the election and received much credit for the 47 seats won in the region. That number, plus the 69 seats won by Wang Nam Yen in the Northeast, made the faction`s support for Sora-at hard to ignore, particularly after Thaksin had taken pains to talk Snoh out of pushing for his own Cabinet seat.

Sora-at, ranked 13th on Thai Rak Thai`s party list, was nominated at the request of Snoh, who is reportedly grooming him as a political heir.

Likewise, the nomination of Chucheep Hansawat, No 95 on the party`s list, has drawn a lot of frowns. Despite having disappeared from the political scene for a while, he is strongly supported by Snoh because of his loyal tour of duty as Wang Nam Yen`s financier.

Chucheep is tipped to become agriculture minister despite the fact that Thai Rak Thai national campaign director, Pongpol Adireksarn, covets the portfolio. Chucheep and Snoh are said to be under a "blood oath" that they will never abandon each other no matter what happens.

Surakiart Sathirathai, No 11 on Thai Rak Thai`s list, is alleged to have been chosen for the foreign affairs portfolio because of Pojamarn`s influence. Pitak Intrawityanunt, a new member of Wang Nam Yen, also set his mind on the post but could not get enough support at the top levels.

Channel 3 television tycoon Pracha Maleenon, having made his political debut on Thaksin`s party list, will likely become deputy industry minister. He is known as one of the party`s top financial contributors.

Some New Aspiration nominees are also well known financiers of the party.

Pichet Sathirachawan is tipped to get a deputy communications portfolio because of his financial support for the party and his close links with Thai Rak Thai.

Pichet was initially planning to leave the NAP for Thai Rak Thai after he was ranked too low on the NAP list. But Thaksin intervened and asked Chavalit Yongchaiyudh to give Pichet a better ranking on the list, which Chavalit did.

Chat Thai`s list of nominees, like Chavalit`s, was anything but pleasing to Thaksin.

Chat Thai leader Banharn Silapa-archa had to pacify Sonthaya Khunpluem, son of Chon Buri influential figure Somchai Khunpluem, or "Kamnan Poh". Because Sonthaya`s group managed to win six seats, he will be rewarded with the science portfolio.

Pongsakorn Laohawichian, former director general of the Land Transport Department, is tipped to become deputy communications minister, thanks to his close ties with Jongchai Thiangtham, a powerful party figure who unexpectedly failed as a party list candidate.

In the midst of all this, a virtual unknown on the political scene has been thrust into the limelight.

Natee Klipthong is a close friend of Newin Chidchob, who was blocked from the Cabinet line-up because of his tainted image.

Natee, a school buddy of Newin`s who helped advise the veteran politician while the latter was serving as deputy agriculture minister in the Chuan government, is poised to take his friend`s former portfolio.

Forced by Thaksin to drop Newin, Banharn appears to have too little spine left to resist Newin`s demand that "if it`s not me, it has to be Natee".

Three cheers for political reform.

BY POLITICAL DESK

The Nation 20.2.01

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A tale of two AMC asset-pricing plans


THE profitability of six private commercial banks this year will depend chiefly on asset pricing by the planned national asset-management corporation (AMC), according to Thai Farmers Research Centre Co Ltd (TFRC).

If the national debt-rehabilitation agency is not established, the banks will see further pressure on their revenues this year.

Thai commercial banks` operating losses declined Bt43.2 billion to Bt3.48 billion in 2000 from Bt46 billion in 1999.

Nevertheless the non-performing loan (NPL) problem remains an urgent one for the remaining banks, including the six private commercial banks highlighted in TFRC`s analysis: Bangkok Bank (BBL), Thai Farmers Bank (TFB), Bank of Ayudhya (BAY), Siam Commercial Bank (SCB), Thai Military Bank (TMB) and Bank of Asia (BOA).

The six banks have NPLs of Bt953 billion, or 19 per cent of total lending as of the end of 2000.

TFRC said in a report the banks would record average annual operating income of Bt40 billion to Bt50 billion over a five-year period if the national AMC offered them good prices and favourable gain/loss-sharing agreements.

In its analysis of how these banks could better tackle their NPLs, TFRC envisaged a scenario in which the national AMC purchased their NPLs at book value less provisions, coupled with five-year gain/loss sharing contracts. The research centre said such an arrangement would enable the banks to post a combined operating income of around Bt49.2 billion.

However, the banks` operating profits would be revised down to Bt41.7 billion, and net revenue after the provision would shrink to Bt9.5 billion should the banks be compelled to slash their interest margins in view of the reduced provisioning burden.

BBL Chairman Chatri Sophonpanich agreed lending rates should decline following the establishment of the AMC, which would strengthen commercial banks` financial status.

According to TFRC, assuming a 30 per cent recovery rate, losses on the NPLs would amount to Bt667 billion.

"After discounting the Bt413-billion provisioning, the banks would shoulder losses of Bt216 billion over the five-year period, or Bt43 billion annually at a loss-sharing ratio of 85 per cent," the research company said.

"It is anticipated the banks would earn operating income of Bt40 billion to Bt50 billion on average in the period. The amount is enough to compensate for losses incurred through the loss-sharing contract, with no impact on tier-1 capital," the research centre noted.

As the authorities would need to issue bonds to purchase the assets from the banks, TFRC estimated that from 2002 onwards the banks would earn Bt54 billion in interest income from the bonds, or an average of Bt11 billion a year for five years.

Commercial banks that have not yet tackled all of their NPLs are expected to welcome the creation of the national AMC if the aforementioned scenario is adopted, as it would not require them to raise capital in the short term.

In the analysis released today, TFRC also offered projections in the event that the banks chose not to sell their assets to the national AMC or that the asset sales were conducted without the gain/loss sharing agreements, as they are in the above plan.

Under a second scenario meanwhile, if the national AMC purchased debts at book value, less existing provisions - for example, at a 57-per-cent discount, worth Bt540 billion - commercial banks would not shoulder losses from NPL sales as losses would have been realised earlier during a provisioning period.

Under this scenario the NPL problem would be successfully solved, while banks would earn interest income from the five-year bonds totalling Bt54 billion, equivalent to an average of Bt11 billion annually. The banks would obtain interest income from 2002 onwards, so there would be no impact on revenues this year.

"Under this scenario, the banks not only tackle NPL problems with neither future provisioning risk nor impact on capital status, but also earn some profits, perhaps enabling them to wipe out accumulated losses. This is the best scenario for the banks but the costliest in terms of social burdens if there is any deterioration of bad debts bought by the national AMC," TFRC said.

See the table for the results of a scenario under which the banks do not sell debts to the national AMC. In this case, it is projected that the six major banks would earn operating income this year totalling around Bt49.2 billion, compared with Bt27 billion in 2000. The interest spread is projected to soar from an average of 1.6 per cent in 2000 to 2.26 per cent this year.

The Nation 20.2.01

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FOOD SECTOR WRONGLY IGNORED ON THE SET. 19.Feb.01 Thai Stocks
Vegetables, Chicken and Sea food is the new vogue, beef is not.
Little beef is consumer in Thailand. Thai foods is most only about vegetables and sea food and prawns and chicken! No single style of food choice will benefit more globally then Thai food. Already a new fast growing and healthy diet change is taking hold around the world -due to the "Mad Cow" disease fear.


Last week on a single day, the most active security was a finance company`s warrant, called KK-W. More volume traded in this warrant, then the all other volume combined in the non finance non- bank sector for the whole week! Can you imagine!

While this is a negative to macro observers, it should not be so to rational individual investors. It shows how neglected the whole added value food sector here on the SET really is. Evenwhile many of these Agri/food stocks are for the most part profitable (besides grossly undervalued) growing firms, which pay on average 5 times more annual dividends out then the active SET hounds. And yes you guessed it, there are few if any Agri or food analyst to be seen on the SET.

But you would never know about this talking to local and global institutions as they have these pervasive high minimum investment requirements and so cannot satisfy their investment appetite. Evenwhile they admire the Thai food. Hence, they must pass by the very best in Thailand, the very sector which has worked soo well here. Same old story, true. Thailand is one of the worlds largest food producers.

But here comes the twist. In the past several months the "mad cow" disease has scared people around the world from eating Beef. It is clear this trend is only going to get worse! Vegetables and/or Sea food & Chicken eating is ever more coming more in vogue. This new eating life style helps prevent heart disease (still the number one killer) besides now assures people from fearing getting this new horror disease.



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President Rice (PR) a long core favorite of ts.com, on Feb 15 reported record calender year 2000 net earnings of 17.03 Baht, per share. Exceeding our own estimate. This stock has finally woken-up and so we are delighted for our subscribers! Assuming an even most modest trailing year 2000 p/e of 4, this stock should now be moving into the mid 60`s.
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Indeed, it is becoming as big as a subject as AIDS! And if AIDS changed people`s sexual habits, surely "Mad Cow disease" is going to change diets, globally. Everybody eats -but not everybody has varied indulgences. So the number of people affected is far bigger. We mean, even the Priests now worry about his beef eating, but they tell me not about the other indulgences.
Let`s face it, Thailand for the most part has no great reputation for tasty steaks. In fact less beef is consumer here. Thai foods is most only about vegetables and sea food, giant prawns and chicken! No single style of food will benefit more on this new scare then Thai food. Already a very fast growing and healthy diet change, taking hold around the world.

The other big change happening is that informed individual investors from developed countries, can now buy shares directly in their home country, from around the world. This can be done through new web-sites like for example intltrade.com or globleshare.com. Previously this was always the problem before -and so this facility is indeed a new investment revolution which in time will "beef-up" individuals on owning the real values in emerging countries.



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If you go to a buffet dinner and you dont` like one of their main dishes, do you blast the whole dinner? Fact is, on the SET there are many profitable companies, trading at very compelling valuations! Sadly so, few brokers will tell you about these.

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Banpu Public Co Ltd stated on February 13th that it will pay a semi-annual final dividend of 3 baht per share on March 12 to holders of record March 1, with the stock trading ex-dividend starting Feb. 26, `01. We are delighted as Banpu is a prominant Ts.com selection...besides, it shows the SET is far more then just about the Thai Banks!


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Trotzdem waren heute nur zwei Foreigns im plus, eine davon BBL-F mit 1,85 Prozent

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80 cattle killed by rinderpest disease


KALASIN - More than 80 oxen in the Khao Wong district have died from a viral foot and mouth disease known as rinderpest.

The communicable disease, which does not strike humans, preyed mainly on young oxen, livestock official Udom Sutthijaroen said.

The disease was probably transmitted through drinking water and tended to strike goats, pigs and oxen, he said.

Residents had been warned to isolate cattle infected by the disease and get the rest of their herds immunised.

The rinderpest attack has led livestock authorities to declare Khao Wong`s Song Pluai subdistrict the main area for the disease.

Cattle breeder Juan Banphet said the breakout began early this year. Dead oxen had salivated profusely before dying, but were found with no trace of external wounds.

Livestock official Ong-at Promsorn said flesh from the diseased cattle was sent to Nakhon Ratchasima`s Pak Chong district centre for rinderpest research.

Most residents of Khao Wong district make a living by trading cattle, an occupation known locally as nai hoy.

Authorities estimate the cattle death toll in Khao Wong may rise to 400.

An outbreak of bacterial anthrax affecting cattle and goats brought across the border from Burma last year was equally deadly.

Veterinarians at Bangkok`s Mahidol University said the foot-and-mouth disease in cattle, caused by the picorna virus, was common.

They said uncooked beef should not be eaten to prevent the picorna virus from spreading.

BY BENJAWAN SOMSIN

The Nation 20.2.01

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Tuesday, February 20 3:17 PM SGT

Thailand Newspaper Highlights Feb 20, 2001
BANGKOK, Feb 20 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- Thailand`s "money politics" may deepen under the new Thai Rak Thai-led government, the managing editor of the Far Eastern Economic Review warned yesterday.

- The government will initiate new stimulus measures shortly to help offset declining export performance and spur growth, Finance Minister Somkid Jatusipitak said yesterday.

- No one can envy Somkid Jatusipitak, the government`s new finance minister. For if the job reviving the country`s economic recovery and finding enough money to finance Thai Rak Thai`s ambitious new stimulus programmes wasn`t enough, Dr Somkid must also wrestle with a number of outstanding legal cases, all aftershocks of the country`s economic crisis.

- Equity and currency markets dipped yesterday, led primarily by last week`s sharp sell-off on Wall Street and investor disappointment over the government`s new economic team.

- The introduction of Non-Voting Depositary Receipts or NVDRs has long been debated as a means to attract foreign investment in a bearish market.

- Local banks say activity in the syndicated loan market should improve this year after new regulations by the Securities and Exchange Commission come into effect, forcing all bond issuers to secure credit ratings.

- The minimum interest rates on new loans taken out against insurance policies have been trimmed by one percentage point, the Insurance Department has announced.

- The Koos Group, one of the five largest business groups in Taiwan, is exploring new business opportunities to further invest in Thailand through acquisitions and partnerships this year.

- The Central Bankruptcy Court yesterday ordered Property Perfect, a listed real estate company, into business rehabilitation in line with a petition filed by three creditors: Finansa Co, Davonsign Capital Co and Saengchan Karnyota Co. It appointed Asian International Planner as the planner.

- United Broadcasting Corp Plc [UBC] announced yesterday that it had narrowed its losses last year to 2.1 billion baht, from 2.7 billion baht a year earlier.

- Thaksin Shinawatra`s decision to appoint the New Aspiration Party to head the ministry in charge of telecommunications is a clear move to distance himself from any conflict of interests.

- The country`s demand for commercial energy is projected to grow 2.8 per cent this year, signalling continued economic growth.

- The Telephone Organisation of Thailand [TOT] has allocated 500,000 telephone numbers to Advanced Info Service Plc [AIS], citing an urgent need by the country`s largest cellular operator.

ASIA PULSE 20.2.01

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Tax Corner The Post 20.2.01
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Tax bill on NVDRs creates distortions
Amend laws to boost investment in stocks


LINKLATERS & ALLIANCE


The introduction of Non-Voting Depositary Receipts or NVDRs has long been debated as a means to attract foreign investment in a bearish market.

The intention of the Finance Ministry was to offer foreign investors more opportunities to invest in the blue-chip shares listed on the Stock Exchange of Thailand, with the hope that this would help the stock market`s performance.

In many circumstances, despite the fact that foreign investors have no interest in voting rights or management control, they are unable to purchase blue-chip shares as a result of the so-called foreign limit, meaning that foreigners are not allowed to hold shares that breach certain thresholds under the Foreign Business Act.

Basically, an NVDR is a piece of paper representing the shares of the listed company, which are commonly known as the underlying shares.

The NVDR has no voting rights but is entitled to substitute payment for dividends payable under the underlying shares. The NVDR certificate will be issued by a subsidiary of the SET, known as the Thai NVDR Co, in which the SET will hold at least 99% of the total shares.

Thai NVDR Co will also hold the underlying shares matched with the NVDR.

However, before the implementation of any new instruments, investors need a clear answer on the tax aspects of their investment.

If they wish to invest in NVDRs and enjoy the returns, as if they were investing in the listed shares, the tax should be neutral.

Under the current Revenue Code, an individual investor will be exempt from income tax on capital gains derived from the transfer of listed shares in the SET, and dividends will be subject to a 10% withholding tax.

However, the substituted payment for dividends and capital gains on NVDRs are not entitled to the reduced rate of 10% for dividends or exempted from tax for sales on the SET in the hands of individual investors.

Instead, the Revenue Department treats the NVDR as a debt instrument for which the substituted payment is subject to a 15% withholding tax. Thus, there is a need for the department to create a tax-equality mechanism between Thai NVDR Co and foreign investors.

The tax implications of NVDRs have been under consideration by the department for a very long time. Recently, the Chuan government approved a bill governing the reduction and exemption of taxes on NVDRs. A summary of the tax implications is as follows:

- A Thai company (i.e. NVDR Co) that is set up with at least 99% of its total shares held by the SET, to serve the operation of NVDRs, will be exempt from corporate income tax on dividends, gains and other income received from the underlying shares, according to the notification of the director general of the Revenue Department.

- Substituted payment for dividends paid under the underlying shares to individual investors who are not Thai tax residents will be entitled to the reduced rate of withholding tax, from 15% to 10%.

- Substituted payment for dividends paid under the underlying shares to individual investors who are Thai tax residents and pay 10% withholding tax will be entitled to tax exemption on income tax at year-end-provided that investors do not claim a refund on the tax so paid, wholly or partly.

It is still unclear whether resident individuals are able to claim a dividend tax credit if they choose to include income in the tax base at year-end.

- Substitute payments for dividends paid under the underlying shares to foreign companies not doing business in Thailand will be entitled to a reduced rate of withholding tax, from 15% to 10%.

It is apparent that the NVDR will be classified as a debt instrument. A substitute payment for dividends will be treated as "income similar to interest", subject to the normal withholding tax rate of 15%, if the recipient is an individual foreign investor or a company.

In terms of tax neutrality, this is the reason why the government has to offer special tax treatment for the NVDR. It remains to be seen if such neutrality measures can make the substituted payment become really neutral.

We raise concerns about the ability to claim a foreign tax credit, for residents, while there is a need for further clarification from the government.

It is important to note that if you are a Thai company, you will not be entitled to a tax exemption on the substituted payment for dividends, unlike that for dividends received directly from a Thai company.

We also feel that Thai individual investors will be unable to enjoy a dividend tax credit. Sadly, this is wrong. The SET has expressed little concern about the impact on Thai investors because Thai investors can directly hold the listed shares if they wish.

The Revenue Department might have forgotten that, in many circumstances, with the time difference between Thailand and other countries, foreign investors normally trade securities through a Thai broker and hold them for re-investment in the name of the Thai broker before the book closing date.

In such circumstances, the Thai broker will be subject to 15% withholding tax, instead of 10%, and the investor will have to absorb the extra 5% tax burden.

In reality, NVDRs simply represent the underlying shares and the Thai NVDR Co is a mere conduit.

Just having another piece of paper should not change your tax liabilities, if that piece of paper truly represents its principal document.

Instead of issuing new laws and regulations, which do not solve all tax distortions, the department should apply a "substance over form" concept, whereby the pass-through concept is used to treat the substituted payment as if it were direct dividend income.

- Piphob Veraphong is a partner with the Bangkok office of Linklaters and Alliance. Thanasak Chanyapoon is an associate with the firm. They can be reached at [e-mail] or through the web at www.linklaters.com.

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Trade deficit sparks worries

staff writer
THAILAND should speed up its search for new markets for agricultural products, Commerce Minister Adisai Bhotharamik said, commenting on January`s US$392 million trade deficit, the first in 40 months.

January imports totaled $5.2 billion, while exports stood at $4.8 billion. The deficit was due mainly to Boeing aircraft imported by THAI at a cost of $160 million.

Last week, Somchainuk Engtrakun, permanent secretary to the Finance Ministry, said the deficit was indicative of the stagnant economy in the US, Thailand`s main export market.

Meanwhile, Supavud Saicheua, executive vice president of Merrill Lynch Phatra Securities, said the expectation that US funds would flow into emerging Asian markets might not be met because the shrinking US economy and falling interest rates would drive investment funds into US bonds, which offer more attractive yields.

He said that investors should adopt a wait-and-see approach to economic measures under the new government, adding that they should closely monitor its performance as well as the external situation, especially the US slowdown.

The trade deficit was a significant setback for Thailand`s economic recovery, he said, adding that current conditions made it difficult to forecast long-term investment trends on the Stock Exchange of Thailand.

Meanwhile, Finance Minister Somkid Jatusripitak said that the prime minister was concerned about shrinking exports and urged relevant agencies to find solutions aimed at stimulating domestic spending.

The National Economic and Social Development Board was assigned to formulate plans to encourage spending, Somkid said, adding that the state budget might be used.

A source at the Finance Ministry said deputy Finance Minister Varathep Rattanakorn is likely to be put in charge of the farmer debt moratorium program and overseeing operations at the Bank for Agriculture and Agricultural Cooperatives.

In related news, Minister of Industry Suriya Jungrungruankit said he will hold discussions with representatives of domestic industries about the low plant utilization capacity.

"The Ministry of Industry plans to help the industrial sector to boost plant utilization since most of the sector is operating at only 50 percent of capacity," he said.

"As a result they cannot afford to pay their debts, which is why banks are having problems with non-performing loans."




Govt insists it will avoid `excessive spending` concerns

THE new government will not allow the budget deficit to grow next year to allay investors` concerns about rising public debt, an official said.

The government plans to keep the budget deficit at about 105 billion baht, the same as this year`s projection, Budget Director Poonsap Piya-anant said after meeting with Prime Minister Thaksin Shinawatra.

"The prime minister insisted that his government will avoid excessive spending to boost investors` confidence in its policies,`` said Poonsap.

Thaksin`s Thai Rak Thai party won a landslide victory in the January 6 election after pledging to spend billions of baht to buy bad loans from banks and boost farmers` income to spur growth. His plans have sparked concern among some investors about rising public debt.

The party`s campaign pledges included a three-year moratorium on farmers` debt, one million baht grants to each of Thailand`s 77,000 villages, and the establishment of a national asset management company to buy part of the roughly US$20 billion in bad loans that are crippling lending at the country`s banks.

Thailand is set to post its sixth straight budget deficit in the fiscal year to start on Oct. 1, 2001, as the government relies on public spending to boost investment and economic growth.

The budget for the current fiscal year provides for 910 billion baht in spending. About one-tenth is earmarked for interest payments on government debt used to bail out the financial industry.

In the past three years, the central bank has borrowed 500 billion baht through bond sales to finance losses resulting from the closure of 56 non-banking finance companies in 1997. - Bloomberg





Give them a chance, says CP group chief

staff writer
WHILE most local executives have given the thumbs-down to the new cabinet lineup, Dhanin Chiavaranont, chairman of Charoen Pokphand Group (CP), said the public should give the new government at least six months before making any judgements, adding that Prime Minister Thaksin Shinawatra and new Finance Minister Somkid Jatusripitak are capable of steering the country through this difficult time.

"The new government can fix our economic woes. Thaksin`s business empire survived the economic crisis unscratched É he should be able to use some of his magic to cure the country`s problems," said the boss of Thailand`s largest and most diversified food products conglomerate.

Dhanin also said that the minister of finance, Somkid Jatusripitak, is a well-educated man and was the main force behind the formation of Thai Rak Thai party`s overwhelmingly successful campaign policies.

"I think he is capable of turning those projects into reality," he said.

When asked for his views on the farmers` debt moratorium project, he said that it was a positive measure and would help revitalize the sluggish economy.

Dhanin pointed out that the government should focus on the rubber and rice producing sectors, whose export markets have been shrinking at an alarming rate.

The authority in Thai agro-business recommended that the government work with Indonesia to improve the situation of the rubber exporting sector and with China, Vietnam and India to improve conditions for rice exporters.

Meanwhile, as members of the new cabinet were sworn in by His Majesty the King on Sunday, many experts and analysts in the private sector reacted negatively to Thaksin`s choices, saying that most of them lack the skills needed to pull the country out of its financial doldrums.

"Most of the appointments were based on loyalty and affection to Thaksin rather than experience, " said Aruna Mahendran, a regional economist at SG Securities Singapore. "Somkid is a case in point."

Critics also said that the cabinet line-up proved that Thaksin could not deliver on his promise to form a "new thinking, new action" cabinet team, as some members have questionable track records.

Somsak Tehpsuthin, a minister to the prime minister`s office, was investigated by the previous government on suspicions of accepting kickbacks from contractors working on the construction of a new airport.

Chavalit Yongchaiyudh, Thaksin`s choice for the first deputy premier and minister of defence, headed a government that failed to defend the baht value and led Thailand into its worst-ever economic recession.

One day after the swearing-in ceremony, the Stock Exchange of Thailand (SET) Index plummeted 6.36 points to 309.64.

Thaksin`s repeated attempts to lure foreign investors back to the Thai bourse by pledging that his government will implement all of its economic stimulus plans, including buying bad debts from commercial banks, have so far largely failed.
bday.net 20.2.01

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Poll: Thaksin govt has 62 % approval rating

Filed at 12 : 32 pm (THLD time)


BANGKOK, Feb 20 (The Nation) -- The newly-appointed Thaksin Administration has received 62.7 per cent approval rating from Bangkok residents, according to a recent opinion survey conducted by ABAC Poll.

ABAC Poll said on Tuesday only 15.9 per cent of 1,294 people surveyed disapproved of the Thai Rak Thai-led coalition government headed by Prime Minister Thaksin Shinawatra, while 21.4 per cent offered no opinion.

Among Cabinet members, Thaksin was the most popular with Bangkok public who gave him 72.6 per cent approval rating, followed by Transport and Communication Minister Wan Muhammad Noor Mata at 71.9 per cent, Public Health Minister Sudarat Keyuraphan 61.8 per cent.

Finance Minister Somkid Jatusripitak, who received approval rating of only 34.3 per cent, was among Cabinet members who had inspired low public confidence.

About half of the respondents, who were surveyed between Feb 18 and Feb 19, expressed disapproval of Defence Minister Chavalit Yongchaiyudh.

About one in three of those surveyed said the new government should be given 1-2 years to prove itself capable of solving the country`s problems, of which the economic problem topped the priority list, followed by illicit drug problem, rising unemployment and traffic congestion.

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SEC continues probe into PM`s share transactions

Filed at 12 : 29 pm (THLD time)


BANGKOK, Feb 20 (The Nation) -- Securities and Exchange Commission (SEC) chief Prasarn Trairatvorakul said on Tuesday the investigation into Prime Minister Thaksin Shinawatra`s shareholding in connection with the anti-corruption`s verdict that Thaksin had concealed assets would continue.

Prasarn said the investigation would proceed in a straightforward manner in accordance with the SEC rules and regulation.

"The investigation will proceed even after Khun Thaksin has become the prime minister," the SEC secretary general said. "There is no political interference in the investigation."

But Prasarn could not say when the investigation would be concluded.

The National Counter Corruption Commission has found that Thaksin had concealed his shareholding worth billions of baht by transferring the shares in Shin Corporations Plc and his other companies to nominees, including household servants and chauffeur, while serving as a deputy prime minister more than three years ago. He was also found to have filed false asset statements with the anti-graft agency.

SEC investigation focuses on whether Thaksin, as majority shareholder of the companies in question, had reported his share transactions to relevant authorities as required by the law.

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Fears of triple deficit loom


THE US$400 million (Bt 16.95 billion) trade deficit in January has sent a dangerous signal that Thailand might be lurching toward a triple deficit - in its current account, balance of payments and budget, officials warned.

The triple deficit, if it really happens - or if it is not tackled appropriately - would undermine confidence in the Thai economy and subject the baht into another round of speculative attacks.

One of the main factors contributing to the January trade deficit was a slowdown in US demand for electronics products from Thailand and other emerging countries.

Somkid Jatusripitak, the new finance minister, has said his ministry would do its best to bring the economy back to full health, including monitoring and boosting the export sector, in which electronics products are one of the main items.

Supachai Panitchpakdi, the former deputy prime minister and commerce minister, has previously warned that imports would need to be managed carefully to prevent them overtaking export earnings, which have been the engine of the Thai economy.

For the 30 months to January, Thailand enjoyed a trade and current-account surplus as a result of economic adjustments to correct the macroeconomic imbalance triggered by the financial crisis.

The baht was devalued to prop up exports and to discourage imports, thus bringing Thailand`s finances into order.

But the surplus is slipping away quicker than most officials had expected.

The Bank of Thailand held a meeting yesterday with the aim of discussing the country`s trade situation, after which Achana Waikhuamdee, the BOT`s chief economist, said it was too early to draw any solid conclusions, since the Commerce Ministry`s trade figures were preliminary.

Last week the Finance Ministry disclosed preliminary figures showing that imports had surged to $5.2 billion against a fall in exports to $4.8 billion, producing a trade deficit of $400 million.

A central bank official tried to be optimistic by saying that the trade deficit might only be temporary, affected by a one-time payment for aircraft delivered to Thai Airways International. But Praphad Bhotiworakhun, vice chairman of the Federation of Thai Industries, said FTI was worried the emerging trade deficit could negatively affect the path to economic recovery.

The FTI held a meeting yesterday to finalise economic proposals it will submit to the Prime Minister early next month.

Praphad said the FTI would propose measures that would help the government stimulate exports and domestic consumption.

"The slowdown in exports and the trade deficit could jeopardise the baht currency, which would result in growing indebtedness for the country," he said.

The government had to solve the problem by stimulating exports, maintaining currency stability and improving export competitiveness, he said.

In order to boost domestic consumption the government must find ways to improve consumer confidence, which remains low after three years of economic crisis, by showing that it had a united team managing the economy, Praphad said.

According to the Commerce Ministry, 21.3 per cent of last year`s total exports worth $14.87 billion went to the US market, compared with 19.3 per cent worth $13.5 billion to the Asean market, and 14.8 per cent worth $10.34 billion to the Japanese market.

Of exports to the US market, electronics parts and components topped the list at $2.01 billion, followed by garments at $1.71 billion and integrated circuits at $1.19 billion. The World Bank has projected Thailand`s exports will not grow more than 10 per cent this year, compared with 20 per cent last year.

The implication from a current account and trade deficit is the baht would have to become weaker to correct the unsustainable pace of imports. If this is not managed carefully, it will lead to another round of baht speculation by export and import traders, as well as currency traders.

BY ANOMA SRISUKKASEM and

WATCHARAPONG THONGRUNG

The Nation 20.2.01

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Voranai Vanijaka and Woranuj Maneerungsee

Thailand`s "money politics" may deepen under the new Thai Rak Thai-led government, the managing editor of the Far Eastern Economic Review warned yesterday.

The marriage between money and politics may be cemented further under Thaksin Shinawatra, Michael Vatikiotis said.

The suggestion by foreign media reflected the make-up of Thai Rak Thai, its coalition partners and the cabinet appointments, he said. "We are only the reflection of what people say."

Mr Thaksin has claimed that foreign press criticism of him was engineered by the opposition parties. He said the foreign media lacked an understanding of "the way things are" in Thailand, and had ignored grassroots Thai society.

However, Mr Vatikiotis said the foreign press had been equally critical of the Democrat government, which he said had not been free of money politics but had the problem to a lesser degree.

Thai Rak Thai owed its success to public relations concocted by spin masters crafting "a relevant, if dreamy populist platform", Mr Vatikiotis said. "The combined cost of TRT`s ambitious health-care plan, village funds, rural-debt moratorium and national asset management will add a billion dollars or so to the annual budget."

The public debt, now around 57% of gross domestic product, could soar as high as 100% with the go ahead for the National Asset Management Corporation.

The regional business magazine had said the new government was a "full blown merger between politics and big business", and that a "new oligarchy" may be created.

Reform laws would not be passed as long as elite politicians risked prosecution under the changes, Mr Vatikiotis said. Many elite, conservative politicians were in the coalition.

The magazine cautioned that the National Asset Management Corporation might be "a warehouse of non-performing loans", because the plan was vulnerable to big-money interests including banks and indebted firms.

Thai Rak Thai could restore the "partying days" of the Banharn and Chavalit administrations, which left costly hangovers. Both are partners in the new government.

Mr Vatikiotis likened foreign investors` perception of Southeast Asia`s money market to that of a "bad neighbourhood", whereas Northeast Asia was the place to be. Southeast Asia had lost ground strategically and multilateral activity had cooled. It was crucial for the government to build confidence and fundamentals through reforms, rather than by exploiting populist and reactionary sentiment.

"It takes time for things to get rolling," said Mr Vatikiotis, adding he did not see full economic recovery for a decade. However, he would give the new government three months or 100 days to show its stuff.

Mr Vatikiotis was the magazine`s correspondent and bureau chief in Bangkok from 1994 to 1999.

In contrast, Dhanin Chearavanont, chairman and chief executive of the Charoen Pokphand Group, said Mr Thaksin could lead the government as successfully as he had led his telecommunications business.

The quicker the debt moratorium for farmers could be introduced, the more confidence the government could engender among Thais, he said. He gave Mr Thaksin`s ministers six months to prove their capabilities, and urged him to be decisive in moving unsuitable appointments.

The premier needed to keep his word on many promises including the debt-suspension plan and one-million-baht revolving fund for each of the 70,000 villages nationwide. He urged the government to boost farm product prices.

Mr Dhanin said he was confident that Mr Thaksin could solve conflicts of interest in his cabinet as he was the first party leader who did not need to rely on anyone else`s money and could therefore bargain with other parties.
The Post 20.2.01

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Geringe Umsaetze bei den Locals, BBL-F groesster Verlierer mit 2.7 %, Banpu-F einer der groessten Gewinner mit 7.5 % bei den Foreigns

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Tuesday, February 20 3:48 PM SGT

Bangkok Metro Bk`s Nonperforming Loans At 53.7% End-Jan
BANGKOK (Dow Jones)--Bangkok Metropolitan Bank PCL (H.BMB) of Thailand said Tuesday its nonperforming loans at end-January stood at 53.68% of total lending, down from 57.16% at end-December.
In a filing to the Stock Exchange of Thailand, the bank said its problem loans amounted to 99.30 billion baht ($1=THB42.596), down from THB103.37 billion the previous month.

The bank`s total assets stood at THB163.23 billion versus THB164.87 billion as of end-December, while its total liabilities were at THB172.71 billion, compared with THB174.16 a month earlier.

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Tuesday, February 20 5:42 PM SGT

Myanmar Not `Aggressive` Towards Thailand Says Army Genl
YANGON (AP)--Myanmar`s military regime is not "aggressive" in its foreign relations and wants to resolve its current border dispute with Thailand peacefully, a top Myanmar general was quoted as saying Tuesday.
"The current Myanmar-Thai border problem should be solved with (an) optimistic approach based on mutual understanding, respect and magnanimity as true good neighbors," Lt. Gen. Khin Nyunt, fourth highest official in the state hierarchy, was quoted as saying by all three official newspapers Tuesday.

Earlier this month, Myanmar and Thai troops clashed when fighting between Myanmar and ethnic Shan rebels spilled into Thailand. At least five civilians were killed either side of the border, driving bilateral relations to their lowest in several years. Border checkpoints in the region have since been closed.

Thailand launched a heavy artillery attack to drive out Myanmar forces which it said had intruded into Thailand to attack the rebels. Myanmar accused Thailand of helping the rebels.

Khin Nyunt said the rebels and "a misunderstanding by some Thai authorities who had relied on false information from the lower level Thai officials" was to blame for the border dispute.

"Although our government is a military government, we have no aggressive attitude. We promote friendly relations with every country and abide by international rules and regulations," Khin Nyunt said at a ceremony to mark the end of teachers` training course on Monday at Phaunggyi, 60 kilometers north of Yangon.

But in an apparent aside at Thailand for allegedly supporting the Shan rebels, Khin Nyunt said Myanmar had never allowed another group to endanger other countries from its territory or used such groups for its own ends.

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Tuesday, February 20 7:17 PM SGT

Asia Markets Shares Close Broadly Higher Feb 20, 2001
A round-up of Asian stock markets for February 20, 2001, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, Feb 20 Asia Pulse - Asian share markets closed broadly higher today as regional investors rallied against negative sentiment caused by US markets plunge yesterday.

Share markets were in the main domestic-driven, with bargain hunters and local concerns affecting the state of the market.

South Korean shares led the race, closing 2 per cent higher, led by financial and blue chip stocks. Sentiment was bolstered by foreign buying and expectations that Fitch IBCA may upgrade the country`s sovereign rating, dealers said.

The Korea Stock Exchange composite index closed 12.07 points higher at 608.74.

Singapore shares closed 1.4 per cent higher on a technical rebound following recent declines, brokers said.

The Straits Times index rose 28.12 points to finish at 1,976.13.

Share prices in Tokyo rose 1 per cent, bouncing back from a 28-month low yesterday. Brokers said gains were dampened due to uncertainty over the political fate of Prime Minister Yoshiro Mori.

The Tokyo Stock Exchange`s Nikei-225 index closed 128.77 points higher at 13,248.36.

Thai stocks closed 0.8 per cent higher in thin trade as banking and finance sectors recovered from recent losses and investors awaited more details of the government`s economic and financial policies, analysts said.

The composite SET index closed 2.68 points higher at 312.32.

Taiwan shares finished 0.6 per cent higher on strong buying of China-related shares after Chinese regulators announced they would open the B-share market to domestic investors, analysts said.

The Taiwan Stock Exchange weighted price index climbed 33.99 points higher to close at 5,971.29.

Australian shares closed 0.3 per cent higher today, led by gains in banking and resources, analysts said.

The All Ordinaries finished 10.8 points higher at 3,250.8.

Share prices in Malaysia closed 0.3 per cent higher in a mild technical rebound. Dealers said this was mainly due to late support buying of blue chips by institutional funds.

The Kuala Lumpur Stock Exchange composite index climbed 1.99 points higher to close at 713.32.

Hong Kong share prices closed up 0.2 per cent on selective bargain hunting of China-backed shares ahead of further market reforms in China, dealers said.

The key Hang Seng index 36.4 points to close at 15,527.36.

Elsewhere, the markets closed lower.

Philippine share prices fell 0.9 per cent, as a result of continuing anticipation of disappointing corporate profits, brokers said.

The Philippine Stock Exchange composite index closed 14.87 points lower at 1,659.08.

Jakarta share prices closed 0.34 per cent lower in lacklustre trading with many players staying on the sidelines in the absence of fresh leads.

The Jakarta Stock Exchange composite index fell 1.458 points to close at 433.681.

TUESDAY INDICES:

* SYDNEY - All Ordinaries 3,250.8 (up 10.8 points)

* HONG KONG - Hang Seng 15,527.36 (up 36.4 points)

* TAIPEI - Weighted 5,971.29 (up 33.99 points)

* SEOUL - Composite 608.74 (up 12.07 points)

* TOKYO - Nikei 13,248.36 (up 128.77 points)

* MANILA - Composite 1,659.08 (down 14.87 points)

* SINGAPORE - STI index 1,976.13 (up 28.12 points)

* JAKARTA - Composite 433.681 (down 1.458 points)

* KUALA LUMPUR - KLSE index 713.32 (up 1.99 points)

* BANGKOK - SET Index 312.32 (up 2.68 points)

(C) Asia Pulse Pte Ltd.

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Tuesday, February 20 7:01 PM SGT

Interpol Head: Internet Crime Becoming A Threat In Asia
BANGKOK (AP)--The head of Interpol predicted Tuesday that cyber crime and electric vandalism would emerge as the biggest criminal threats to Asia, and existing problems will get worse.
Interpol Secretary General Ronald Noble sounded the alarm at the opening of the group`s 16th Asian regional conference in Bangkok.

"The range of serious crime problems that are the unintended consequences of economic globalization and new technologies, like the Internet, are of grave concern to police all around the world. Asia isn`t immune to this," Noble said in a speech opening the three-day meeting.

With reports of trafficking in human beings, drug smuggling, terrorism, money-laundering, fraud and corruption found almost every day in Asian newspapers, nations here need to cooperate more "often and intimately" to be able to cope with both old and new crimes, he said.

Crime in cyberspace presents "new and severe problems that are international in focus and very complex for law enforcement to tackle," said Noble.

While "organized crime gangs have wasted no time in adapting new technologies to their ends, the efforts of the international community have remained fragmented and many of the weapons of law enforcement increasingly obsolete," he said.

Economic crimes - including credit card fraud and money-laundering - are the second most worrying problem for Interpol, particularly as they are carried out in Asia, he said.

Factors influencing money-laundering methods in Asia include the existence of major drug production centers and highly structured organized crime groups, the high use of cash, and especially, "an entrenched and international underground banking system," he said.

Trafficking in human beings, especially women and children for sexual and labor exploitation, is another major regional headache, he said, citing a survey that found that in Thailand, it is the third largest source of profits for organized crime, behind drugs and guns.

Drug trafficking, another major threat, has become a two-way street, with Europe becoming a source for an Asian drug problem, said Noble.

"Interpol has identified Asian criminal groups that are exporting heroin to Europe which is then exchanged for Ecstasy tablets that are taken back to Asia by the same couriers," he said.

Acknowledging rampant corruption in Asia, Noble admitted crime fighting was "very difficult" if police are corrupt themselves, and called for increased cooperation.

More than 100 senior police officers from 33 Asian nations and 22 observer countries are attending the conference.

Interpol was founded 78 years ago to bolster links among national police forces. The France-based agency has 178 countries and territories as members.

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Suvarn: alien business law must be reviewed

Filed at 01 : 46 pm (THLD time)


BANGKOK, Feb 20 (The Nation) -- Deputyh Commerce Minister Suvarn Valaisathien insisted on Tuesday that the alien business law must be reviewed to protect Thai small and medium enterprises (SMEs).

The proposed review is in line with the country`s fast changing economic environment, he said.

"The entry of foreign players has caused huge impacts on SMEs, so we need to help them out," he added.

The Thai Rak Thai party has made it clear that it intends to review the alien business law in order to protect Thai companies from cash-rich foreign investors.

However, many have warned that such a move could deal a severe blow to the economy as the result of loss of investors` confidence.

By Achara Pongwuthitham

Naranart Phuangkanok

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Govt to lower 2001 exports target

Filed at 05 : 20 pm (THLD time)


BANGKOK, Feb 20 (The Nation) -- The newly-appointed Commerce Minister Adisai Bodharamik said today that the ministry may lower this year`s export target of 11.3 per cent to around 10 per cent.

He told reporters that the downward adjustment was consistent with January`s preliminary figure which showed that the country`s trade balance went into a deficit of US$400 million for the first time in almost three years and the anticipated US economic slowdown.

However, Adisai said the target revision would not be made this month because it had to wait for more data.

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Sudarat: low-cost medical service begins in April

Filed at 05 : 22 pm (THLD time)


BANGKOK, Feb 20 (The Nation) -- Newly-appointed Public Health Minister Sudarat Keyuraphan assured the public that the government`s low-cost universal medical service, for which patients pay Bt30 per visit, would be introduced in April this year.

"High-ranking officials of the Public Health Ministry will meet to discuss the programme, starting tomorrow," she said on her first day at work.

According Sudarat, the ministry would set out launch a pilot project in a province with 5-10 hospitals ready to participate in the programme.

She insisted that it was possible to implement the programme in the current fiscal year and a full-scale implementation is slated for the next fiscal year when the ministry would receive a special budget for the purpose.

Between now and October, those without any form of health insurance will targeted and eventually the programme will cover all citizens, she said.

The programme allows insured persons to pay only Bt30 per visit to health establishments for treatment of all illnesses. It is one of the key campaign promises of the Thai Rak Thai Party, which heads the coalition government

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( BW)(NOKIA/TOTAL-ACCESS)(NOK) Nokia To Supply GPRS Core Network and GSM Expansion To Total Access Communications, TAC, in Thailand Valued at USD 150 Million


Business and Technology Editors

HELSINKI, Finland--(BUSINESS WIRE)--Feb. 20, 2001--Nokia and Total Access Communications (TAC) in Thailand have signed a contract for the expansion of the TAC GSM network. The deal, valued at over USD 150 million includes the supply of Nokia`s GPRS core network solution and Intelligent Network platforms, as part of a frame agreement.
Nokia has been supporting TAC at every stage of its network evolution since its GSM 1800 service launch in 1992. The agreement includes the supply of high capacity mobile switching equipment, unique high capacity base station controllers and Nokia`s GPRS core network solution, as well as an option to order Nokia`s UltraSite base station solution, which answers the increasing demand for higher voice and data traffic in today`s mobile networks to move towards the Mobile Internet era. An industry leading product, Nokia UltraSite can support GSM, High Speed Data, GPRS, EDGE and WCDMA for 3G technologies.
"TAC is firmly committed to providing our growing subscriber base with the best service offerings," said Mr Boonchai Bencharongkul, Chairman and Managing Director of TAC. "The expansion of our existing network with the inclusion of this GPRS solution, places TAC to the forefront in providing mobile Internet services in the country. TAC is certainly planning to soon bring GPRS into commercial operation service to subscribers."
"With this contract, TAC will be well-positioned to offer new services to its customers and prepare implementation of mobile Internet services in Thailand," said Pekka Uusimaa, Managing Director, Nokia Thailand. "With this contract, Nokia continues to be recognized as the long-term partner in TAC`s modernization process and as the leading supplier of mobile Internet systems and services."
Total Access Communication Plc, or TAC was founded on August 31,1989. It has been a leading cellular operator providing mobile communications services in Thailand. TAC has offered both analog (WorldPhone 800) and digital cellular services (WorldPhone 1800) using the 800 MHz frequency band and 1800 MHz frequency band respectively. Internet is also provide with increased efficiency. WorldPhone 800 and WorldPhone 1800 systems have nationwide coverage of 98% and 70% of area. TAC is expanding digital coverage continuously. By the end of 2001, more than one thousand new cell sites will be added to the system.
Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is one of the most broadly held companies in the world with listings on six major exchanges.

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Tuesday, 20 February, 2001 telecomasia.net

New numbers draws attention to Thai PM


The first incidence of controversy involving new Thai prime minister, Thaksin Shinawatra and his extended business interest emerged last week as the country’s leading cellular operator, Advanced Info Services, one of the assets under the Shin Corp., controlled by Thaksin, received a new lot of telephone numbers.


According to the Bangkok Post, AIS received 500,000 new telephone numbers from the Telephone Organization of Thailand under an urgent need basis because the cellular operator was running out of numbers for new subscribers.


AIS’s request for new numbers was reported granted by the TOT board, chaired by Sombat Uthaisang, who a couple of days later, was appointed to the position of deputy interior minister by Thaksin’s cabinet, the Post report notes.


AIS is reportedly putting on an average of 100,000 new subscribers a month. AIS vice president Kuladist Smithkochorn says that 170,000 new sign-ups were recorded in January 2001.


While the report does not explicitly point the finger at Thaksin and his possible influence over government decisions regarding his business interest, there is no doubt the media is paying attention to the situation. Any move by Thaksin and his business interest will likely come under close scrutiny.

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No news is uninspiring news as investors wait and see


THE Thai stock market returned to its former dormant condition yesterday with thin turnover of Bt3.5 billion, due largely to the absence of fresh news from the new government.

The Stock Exchange of Thailand index yesterday edged up 2.68 points to close at 312.32.

Foreign investors were net sellers for a ninth consecutive day, with a net position of Bt218.26 million yesterday. So far this year, foreigners have bought Bt4.97 billion in Thai stocks. Analysts said they are waiting to see details of the new government`s policies, analysts said.

Preliminary data showed Thailand plung-ed into a US$400-million (Bt17.2-billion) trade deficit in January, the first in almost three years, further dampening market sentiment.

"There has been some effort to keep the index up at this level, but eventually it will give out. We`re looking at a drop to 300 points unless there is some positive news from the government," Amarej Singnarong, head of research at Adkinson Securities Plc, told Reuters.

The Nation 21.2.01

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Debt suspension starts April 1


EFFECTIVE April 1, the new government will suspend Bt75 billion worth of debts held by 2.1 million small farmers for three years, fulfilling a key campaign promise from the coalition-leading Thai Rak Thai Party.

On its second day in office, the Thaksin administration moved fast to assure the public that its key controversial campaign promises won`t be put on a back-burner.

Public Health Minister Sudarat Keyuraphan announced that by April, people in 10 provinces will pay just Bt10 per visit to government hospitals. Meanwhile, Interior Minister Purachai Piamsomboon also confirmed that legislation for the Bt1-million development fund for each village was being drafted.

Deputy Finance Minister Warathep Rattanakorn said the cost of this year`s portion of the debt moratorium would be about Bt11.6 billion.

The moratorium covers loans up to Bt100,000 extended to small farmers by the Bank for Agriculture and Agricultural Cooperatives (BAAC). Eligible farmers who choose to continue to make payments will receive a 1-per-cent discount.

Of the country`s small-farm debtors, 1.2 million are regarded as "good grade". They hold combined loans of Bt43 billion. The remaining 900,000 small farmers, with combined loans of Bt13 billion, are regarded as "ordinary" debtors.

A total of 477,000 farmers have failed to pay interest or make their loan repayments to the BAAC in time. They have combined debts of Bt18 billion.

Loans eligible under the moratorium account for about one-third of BAAC`s total loan portfolio. Should all eligible farmers suspend their payments, the programme would require a state subsidy to the bank of Bt7.7 billion. According to the latest estimate, however, the actual amount needed will be closer to Bt5.4 billion.

It will cost BAAC about Bt3.9 billion to administer the programme. Citing the Thai Rak Thai`s campaign pledge, some farmers have already ceased paying their debts, fuelling criticism that the policy would create a "culture of non-payment".

The Budget Bureau will hold discussions today aimed at fixing the budget for the programme, Warathep said.

No bills relating to the programme will be submitted to Parliament, because it can be implemented under existing laws, according to a Thai Rak Thai source.

Meanwhile, the government will submit 26 draft bills needed to implement other policies when it delivers its platform to Parliament on Monday.

Cabinet secretary-general Vishanu Krua-ngarm said the government would submit the draft bills along with its draft policy to a joint assembly of the Senate and House of Representatives.

A Thai Rak Thai source said most of the bills contained proposed amendments to current laws.

Article 173 of the Constitution allows the government to submit draft legislation while delivering its platform to Parliament.

The source said the bills included proposed amendments to the 2001 Budget Act to allow for the establishment of a national asset-management company, a people`s bank, a development fund for villages and a national health insurance fund.


BY WICHIT CHAITRONG and

PIYANART SRIVALO

The Nation 21.2.01

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Thaksin hunts for cash to stimulate economy


JANUARY`S trade deficit and weak domestic demand have prompted Prime Minister Thaksin Shinawatra to come up with urgent stimulus measures before the economy runs out of steam.

On his second day in office, Thaksin scrambled to get his hands on the money to finance the stimulus programme while the Bank of Thailand warned about the weakness shown in all the major economic indicators.

Central bank governor MR Chatu Mongol Sonakul urged the government to implement the stimulus spending quickly to prevent the economy from losing any more momentum.

Thaksin held talks with officials from the Budget Bureau and the National Economic and Social Development Board before announcing that the government would have Bt9 billion available from the current budget to fund stimulus programmes.

Thaksin said another Bt30 billion would be available soon to finance the village development fund.

"This is enough to start working on our projects," he said.

The Bt9 billion would come from the reallocation of spending, but Thaksin did not elaborate on where the Bt30 billion would come from.

However, Sommai Phasi, director-general of the Fiscal Policy Office, had said earlier that the Finance Ministry planned to float Bt30 billion to Bt40 billion in retail bonds to raise money and to offer Thais an alternative to low-yield saving at commercial banks.

Thaksin said his government`s new public-spending projects would benefit the economy because they would generate public income and consumption.

The Thai Rak Thai Party has taken office at a bad time, given the sharp slowdown in the US economy, the recession in Japan and moderate growth in Europe. The weakness in external demand means Thailand will have to depend mainly on domestic consumption for economic growth.

The preliminary figures for January showed that the country suffered a trade deficit of US$400 million (Bt16.9 billion). Exports fell to $4.8 billion against imports totalling $5.2 billion. It was the first deficit in 30 months.

Chatu Mongol said fiscal stimulus was of utmost importance at this juncture. Even the prolonged ease in monetary policy had failed to spur consumption due to the "liquidity trap", he said.

"The government should spend more, as far as it is able to, to bring long-term public sector-debt under control," he said.

Earlier, Thaksin`s advisers had said the government would have Bt40 billion to Bt50 billion available to stimulate the domestic economy through "grassroots" spending between now and October, when the new fiscal year begins.

They said this spending package still kept the government within the boundary of fiscal discipline.

The government would focus on spending the money on the village funds and on the debt-suspension programme for farmers and other rural enterprises, they said.

Poonsup Piya-Anant, director-general of the Budget Bureau, said that a little more than Bt4 billion from the current budget could be re-assigned by reducing allocations to various construction projects by 10 per cent.

He said he would look into further possibilities and report back to Thaksin with details next week.

The Nation, Agencies 21.2.01

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Burma not aggressive, Nyunt says


RANGOON - Burma`s military regime was not "aggressive" in its foreign relations and wanted to resolve its border dispute with Thailand peacefully, a top Burmese general was quoted as saying yesterday.

"The current [Burmese]-Thai border problem should be solved with [an] optimistic approach based on mutual understanding, respect and magnanimity as true good neighbours," Lt-General Khin Nyunt, fourth highest official in the state hierarchy, was quoted as saying by all three official Burmese newspapers yesterday.

Earlier this month Burmese and Thai troops clashed when fighting between Burmese and rebel Shan State Army (SSA) forces spilt over into Thailand`s Chiang Rai province. At least five civilians were killed on both sides of the border, driving relations to their lowest point in several years. Border checkpoints in the region have been closed for more than a week.

Thailand launched a heavy artillery attack to drive out Burmese forces that the army said intruded onto Chiang Rai`s Ban Pang Noon hill to attack the SSA. Burma, meanwhile, accused Thailand of aiding the Shan rebels.

Khin Nyunt said the SSA and "a misunderstanding by some Thai authorities who had relied on false information from lower-level Thai officials" had been to blame for the dispute.

"Although our government is a military government, we have no aggressive attitude. We promote friendly relations with every country and abide by international rules and regulations," Khin Nyunt said at a ceremony to mark the end of a teacher-training course on Monday at Phaunggyi, 60 kilometres north of Rangoon.

But in an apparent jab at Thailand for allegedly supporting the Shan rebels, Khin Nyunt said Burma had never allowed another group to endanger other countries from its territory or used such groups for its own ends.

That claim would be contested by Thailand, which has expressed growing frustration at the activities of another Burmese ethnic army, the United Wa State Army, that produces illegal drugs in the border area adjoining Thailand.

The drug trade is regarded as socially divisive and a major cause of violent crime in Thailand. But the Wa army has reached a cease-fire agreement with Burma and enjoys virtual autonomy in areas of Shan State in eastern Burma.

Thai Third Army commander Lt-General Wattanachai Chaimuanwong said yesterday tension on the northern border would be reduced if Thai and Burmese officials could hold a high-level meeting, but Burma would have to initiate this.

"We would lose face if we went up to them and asked for one. We didn`t do anything wrong. Besides, it`s their turn to call a meeting," the commander said.

There was no indication, Wattanachai said, that the Burmese government would reconvene the Regional Border Committee (RBC) set up to settle border disputes between the two countries. But Thailand believed Burma should be the one to call the meeting as it was Burma which "violated our sovereignty and territorial integrity".

The RBC has not met for two years.

Wattanachai said Thai troops would stand firm on the border, at least until there was an indication that the Burmese would pull back.

According to the Shan Herald Agency for News (Shan) yesterday, ethnic Shan living in Thailand have been supplying the SSA.

"Thanks to the media`s kind coverage of our Army`s struggle against drugs and the Burmese military, Shan exiles in Thailand have been visiting us every day with food, clothing, medicine and even cash donations," Lt-Colonel Kawnzuen, 39, commander of the SSA`s Keng Tung front, was quoted by the agency as saying.

The Keng Tung front is facing 11 battalions, two of which are from the United Wa State Army, a pro-Burma rebel army, according to the agency.


The Nation, Associated Press 21.2.01

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Mining companies stop exploration
JAKARTA - Indonesia said yesterday that a number of mining companies have suspended exploration due to uncertainty over new regional autonomy laws and warned that this could hit the economy.

`We have letters from some mining companies, both local and foreign, including Newmont, saying that they are suspending their activities for between one and two years, awaiting developments over the legal aspects,` Mines and Energy Minister Purnomo Yusgiantoro told reporters.

Newmont Mining Corp runs two major mines in Indonesia.

`The companies that are already producing continue to operate,` he said.

Firms in the exploration stage were shutting down operations.

`This not only threatens future mining activities but also has an economic multiplier effect on the regions with mining sectors,` he said.

Under new autonomy laws, the legal system for the mining sector falls under the control of regional governments.

There is considerable confusion over how the new system will work and the central government has said it wants to keep hold of the crucial mining sector for up to five years.

--Reuters 21.2.01--

Waere schade, wenn sich das negativ auf BANPU auswirken wuerde

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NCCC to compare PM`s assets with past statements

Filed at 12 : 02 pm (THLD time)


BANGKOK, Feb 21 (The Nation) -- The National Counter Corruption Commission said on Wednesday Prime Minister Thaksin Shinawatra`s asset statement to be submitted within 30 days of taking office would be compared with his previous false statements filed more than three years ago.

NCCC Chairman Opas Arunin said the anti-graft agency would compare Thaksin`s new statement, which must be submitted by March 19, with previous ones filed while he was deputy prime minister, which was inaccurate after he was found to have concealed billions of baht`s worth of shares in his Shin Corporations Plc and other companies.

"Any discrepancies in the new and old asset statements would be examined and investigated," Opas said.

The Constitution Court is reviewing the NCCC`s verdict that found Thaksin had concealed his assets by transferring huge amount of shares to nominees, including household servants and chauffeur. If the Constitution Court upheld the NCCC`s verdict, Thaksin would be forced to step down as prime minister and be barred from taking public offices for five years.

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Global warming will create havoc in region, say scientists
They warn Asean to start preparing for the effects of climate change now, as extreme weather conditions will cause calamities of biblical proportions

By James East
STRAITS TIMES THAILAND BUREAU 21.2.01

BANGKOK - Scientists are predicting biblical-style calamities for South-east Asia as rising global temperatures bring violent cyclones and more flooding and droughts to the region.

Increasing atmospheric levels of carbon dioxide are expected to have a massive impact on the region as sea and rainfall levels rise, flooding tens of thousands of hectares of farmland and impacting on tens of millions of people.

And as the extreme weather conditions wreak their havoc, the region`s economies will be left to clean up the mess, to pay for the environmental damage, to cope with the destruction of crops and to cover insurance claims measuring billions of dollars.

With global surface air temperatures projected to rise by up to 5.8 deg C by 2100, scientists are now issuing increasingly region-specific and doom-laden predictions about the likely impact.

Although it is considered an inexact science, 700 scientists have banged their heads together to come up with a United Nations report outlining the resulting weather and environmental changes.

Bangladeshi Monirul Qadar Mirza, a water- resources expert based at Toronto University, helped draw up the report.

He said South-east Asia was expected to suffer from higher than average temperature rises and increasingly moody weather swings.

Water-born infectious diseases would also increase, the report said.

Dr Mirza said storm surges would flood inland farms with salty sea water ruining the soil, while rising sea levels would flood delta areas permanently.

Sea levels are predicted to rise by between 9 cm and 88 cm by 2100.

`The migration of millions of people to the urban areas of Thailand, the Philippines and Vietnam is expected in future due to the permanent inundation of coastal areas,` he warned.

This, combined with increased intensity of rainfall, would lead to bigger floods in the Mekong delta.

More health problems could be expected, with the elderly affected by increasing heat, while food shortages would lead to nutrition-related problems.

Dr Mirza said Asean should start preparing for the effects of climate change, building it into development plans and even breeding new salt- and heat-resistant crops.

Harvard University`s Professor of Oceanography James McCarthy said: `We are moving into uncharted territory. There is no time in the last half a million years that we have had so much carbon dioxide in the air.`



--------------------------------------------------------------------------------


Disasters: They have started already


Thailand: Rainfall is already down. Mangroves and coral reefs are threatened by sea warming and rising sea levels.



Vietnam: Drought disasters are now more frequent. In North Vietnam, average sea-level rises of 1.9 mm a year have been recorded.



Laos: Drought disasters are rising.



Philippines: Drought disasters are rising. Food-grain self-sufficiency has dropped.



Malaysia: Food-grain self-sufficiency has dropped.



Indonesia: Food-grain self-sufficiency has dropped. Potential land-loss due to flooding is 34,000 sq km.

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Local banks still long way from paperless


BANKS need a comprehensive electronic payment system to replace the paper-based method that costs billions of baht a year to administer, says Thai Bankers Association chairman Chulakorn Singhakowin.

The TBA chairman, also president of Bank of Asia, said commercial banks spent Bt2.19 billion on payment by cheque last year while the cost for ATM service was Bt64 million.

Speaking at a seminar on trends in the payment system of financial institutions, Chulakorn said business still preferred a system based on paper, particularly cash and cheques. Last year cash payments were Bt5.9 trillion while payment by cheque reached Bt27 quadrillion.

This creates unneeded costs, he said.

The cost to the government of issuing banknotes is Bt0.90 to Bt2 per note, not including maintenance, insurance, transportation and staff.

Commercial banks also bear transportation costs of Bt600 per trip from branch to head office, while the cost of checking and counting banknotes is Bt50 per Bt1 million.

The cost of issuing a cheque is Bt40, of which Bt10 is charged to the customer.

"Inasmuch as commercial banks are still unable to develop a complete electronic payment system that customers trust, banks should cover this part of the cost," he said.

Government, he said, should support electronic payment by introducing an electronic-transaction law, an electronic-signature law, an electronic-transaction law and an electronic-commerce code.

BY ANOMA SRISUKKASEM

The Nation 21.2.01

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Thaksin assured of ample funding
Push to realise campaign pledges
Pradit Ruangdit
Aphaluck Bhatiasevi
The Budget Bureau told Prime Minister Thaksin Shinawatra yesterday there is enough money to launch the government`s policies this year.


The assurance came as the Public Health Ministry said it would launch the medical welfare policy of 30-baht hospital visits in April.


Sudarat Keyuraphan, the public health minister, said the scheme would start in 5-10 provinces first.


Mr Thaksin said he wanted to trim spending in fiscal 2001 so government`s campaign promises could be realised.


He and PM`s Office Minister Chaturon Chaisaeng yesterday met Poonsap Piya-anan, the bureau chief, and Sansern Wongcha-um, secretary-general of the National Economic and Social Development Board.


Mr Thaksin said there was still nine billion baht not yet spent in the investment section. With this money and other investment funds outside the budget, the government could start putting its policies in place right away.


The one-million-baht revolving fund for each village, which needs about 70 billion baht, may be kickstarted with about 30-40 billion baht, with the rest coming from the 2002 budget in October, he said. The figures were subject to change.


Mr Chaturon said departments will be asked to adjust their allocations and projects to suit the government`s policies. If this can`t be done, the government could introduce legislation to change the 2001 Budget Act.


Ways of preparing the 2002 budget were also discussed.


All ministries must now base their proposals on government policies, rather than follow the tradition of putting up their own proposals for the Budget Bureau to consider.


Mr Poonsap said the 2002 budget would still be in deficit, in the range of this year`s 105 billion baht.


From 2001 onwards, four billion baht would be pulled back by a 10% annual spending cut. Board officials said a project similar to the village fund had already been tried. Under the project, 100,000 baht went into about 1,200 villages, with money coming from the Social Investment Fund.


Mrs Sudarat said provinces where the medical scheme will start first could be named after a meeting today with health officials. She said the provinces would be chosen on the basis of how hard up they were, adding that between April and Oct 1, the ministry would begin the first phase by "filling in" medical benefits for the underprivileged who did not have any health security. By the third year of the government`s term, when the second phase begins, everyone should be getting equal medical welfare, said Mrs Sudarat. She was confident that the 30-baht scheme would be carried out under the targeted time frame.


She did not think the system would require the 30,000 million baht that some had forecast, as the emphasis would be on efficient management and quality services.


"All the unnecessary luxurious expenses would have to be reduced," said Mrs Sudarat, adding that quality of services should not suffer just because people were paying only 30 baht to go to hospital.


Dr Mongkhol na Songkhla, the public health permanent secretary, said existing medical benefits would be provided at the same time as the changes came in. Patients would be the centre of administration. "It would turn out to be very expensive if health had to be run under the old system which mainly concentrated on regulations and documents," said Dr Mongkhol. The 30 baht co-payment policy could be carried out in the 17 provinces chosen for the initial phase of health decentralisation.


By October this year, Nonthaburi, Ayutthaya, Saraburi, Chon Buri, Prachuap Khiri Khan, Maha Sarakham, Khon Kaen, Amnat Charoen, Yasothon, Nakhon Sawan, Pichit, Phrae, Chiang Mai, Phayao, Phuket, Songkhla and Pattani should have "area health boards" to handle budgets and co-ordinate health services.
The Post 21.2.01

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Ministers look to stars on first day
Post Reporters 21.2.01
Cabinet ministers caused quite a stir yesterday as they brought a splash of colour to their first day at work.


Finance Minister Somkid Jatusripitak and his deputies, Suchart Chaovisit and Varathep Rattanakorn, made floral tributes to King Chulalongkorn and the ministry`s holy shrines.


Deputy Labour Minister Laddawan Wongsriwong tried to increase work flow on her first day by moving her desk at a 45-degree angle to the wall, as recommended by a Feng Shui master.


Agriculture Minister Chucheep Harnsawat paid his respects to Phra Piroon Songnak and the shrine of a holy guardian, before ordering new partitions for his office. His predecessor, Pongpol Adireksarn, had them removed to offer his guests unobscured views.


Former deputy labour minister Jongchai Thiengtham made a triumphant return as chief adviser to Dej Boonlong. He will not start work until today despite praying to the holy guardian shrine to put him in charge. Wednesdays are more auspicious, he said.


Defence Minister Chavalit Yongchaiyudh ordered his office refurbished and paid homage to Phra Pinklao, King Chulalongkorn, Phraya Surasak Montri, Chao Por Hor Klong and Chao Por Lak Muang.


Ms Laddawan used the occasion to urge tambons to hook up to the Internet, sources said.


Somjainuek Engtrakul, permanent secretary, seemed relieved when Mr Somkid told him his star sign was a small snake and unlikely to give offence to the large elephant carving believed to have the power to unseat ministers.

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The spirit of government
Who says politics and technology don`t mix? Prime Minister Thaksin Shinawatra has shown what his ``think anew, act anew`` policy really means by announcing that all his cabinet ministers will now be computer literate.

Prior to assuming office early this month, Thaksin said he would run his government as a chief executive officer. And on his first official working day on Monday, he proved that a government needs to use strategic planning just as companies do.

Thaksin`s new style of cabinet meeting, which emphasises a bigger role of information technology, is hailed by the Thai-language press and its columnists as a big step forward. As meeting agendas will be recorded and shown on computer discs, paper use will be reduced to 40 reams from 240 reams a day, saving the government 130,000 baht (about $3,100).

Apart from being computer literate, the prime minister`s men must also be ``early birds``, says Thai Post. Cabinet meetings now start at 8.30 a.m. -- an hour earlier than in the previous administration. But the ministers will have to utilise the time more efficiently as meetings will close at noon instead of 3 p.m. as was previously the case.

Work efficiency aside, Prime Minister Thaksin is still a firm believer in astrology, according to Matichon. His arrival at Government House on Monday was set at exactly 8.29 a.m. -- the most auspicious time determined by an astrologer. He then climbed a flight of stairs to pay respects to a Brahmin shrine before chairing the first cabinet meeting.

And while we`re on the subjects of things supernatural, gossip columnists say they have heard that the room assigned to Deputy Interior Minister Sora-at Klinpratum is haunted. Readers were alerted to the story yesterday morning by Thai Rath columnist Prachathai Tananarong, who said the young deputy minister promptly asked to be relocated elsewhere after hearing about spooky tales from Government House reporters.

Sora-at was evasive when asked to comment on the ghost story, saying he had to request a new room because the old office ``is infested with termites``.

Meanwhile on the other side of town, a group of northern farmers rallied in front of the Agriculture Ministry condemning the appointment of Minister Chucheep Harnsawat and his deputy Natee Klibthong, whose spotty records make them unpopular among farmers, according to Thai Post. After shanting a protest, the farmers burned chillies and salt -- a voodoo-like ritual to make something harmful happen to the two ministers.

Tidbits like this keep me reading this morning`s papers, and I can tell you that Thai people are quite a superstitious lot. When Thaksin`s predecessor, Chuan Leekpai, moved into the prime minister`s official residence a few years ago, his aides told the press about spirits that haunted the European-style mansion.

Chuan never confided whether he had seen any ghosts there. But I doubt he will tell Thaksin about things that go bump in the night. The real threat to Thaksin`s cabinet meetings is not the ``ghosts`` lurking in ministerial offices but computer viruses that may disrupt their early morning routine.

Eye on the Thai Press 21.2.01

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Unocal Thailand to Spend US$ 380 Million in 2001
February 21, 2001


The Thai unit of U.S. oil company, Unocal Corp., said it plans to spend US$380 million in 2001 and US$310 million in 2002, to develop the North Pailin gas fields and crude operation in the Gulf of Thailand, Unocal Thailand Deputy Director for Corporate Communications Konthi Kulachol said Tuesday.


Kulachol added that Unocal Corp. (UCL) will invest US$1.48 billion in Thai oil and gas development over the next five years.

Tara Tiradnakorn, UNOCAL vice president in charge of operations, said the 2000 revenue was higher than 1999 because Thailand had turned to using more natural gas.

The firm`s 2000 revenue was due to increased gas sales of around $700 million on its four concession contracts and because bunker-oil demand shrank.

Tara predicted revenue for this year would slide by 15 percent since the Petroleum Authority of Thailand (PAT) will increase gas imports from Myanmar in 2001.

Revenues Up

However, revenues in 2002 are projected at 7%-8% over 2000 levels, Kulachol added.

Unocal Thailand produces an average of 1.05 million cubic feet per day of natural gas, generating about 30 percent of the country`s electricity.

This year will mark Unocal Thailand`s first crude production from the Gulf of Thailand.

So far, Thailand is "cooking with gas."

(ffs/sml)

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Thai Ctrl Bk: No Comment On Rates Until Mar 1 Meeting
(MORE) Dow Jones Newswires 21-02-01


Economy Growing At Slow Pace

BANGKOK (Dow Jones)--Thailand`s central bank said Wednesday after a preliminary meeting of its monetary policy board that it would make no comment on any trend in interest rates until after a policy meeting on March 1.

Thirachai Phuvanatnaranubala, assistant governor for monetary policy, told a news conference, however, that the economy was still growing at a very slow pace.

Governor Chatu Mongol Sonakul said Tuesday that low repurchase market interest rates reflected sluggishness in the economy.

His comments contributed to talk that the board might reduce its policy-signal 14-day repurchase market interest rate. Chatu Mongol said in January that a reduction had been considered at last month`s meeting.

(MORE) Dow Jones Newswires 21-02-01

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Schlussbericht: Der SET-Index dreht im Handelsverlauf ins Minus [21.02.2001 - 12:34] boersenreport.de

Der thailändische Börsenindex SET konnte seine im Handelsverlauf erhandelten Gewinne nicht halten und schloss letztendlich mit einem Abschlag von 2,09 Zählern oder 0,7 Prozent bei 310,23 Punkten. Die Meldung, dass Cogeneration Pcl und PTT Exploration & Production Pcl eine Steigerung der Gewinne erwarte und eine Dividende für das Jahr 2000 auszahlen werde, überraschte den Markt und beflügelte den Energiesektor. Doch die ausschlaggebenden Kursverluste gab es auch in anderen Sektorenkamen wieder einmal aus dem Bankensektor. Nach der Regierungsmeldung, dass sich der Exportwachstum verringern wird und der Gesamthandel ein Defizit vorweisen wird, rutschten Finanztitel, wie eine Bangkok Bank (883565) ins Minus.andere rutschten staerker ins Minus

Die Papiere der Cogeneration PCL konnten zu Börsenschluss ein 14,5iges Kursplus vorweisen. An 74 Prozent der Gesellschaft ist die Belgium Tractebel S.A. beteiligt, um die restliche 26 Prozent streiten sich viele Investoren. Um eine faire Vergabe der restlichen Papiere zu gewähren, wird ein Bietverfahren eingeleitet. Händler der thailändischen Börse nehmen einen weiteren Anstieg der Aktie an. Diese Nachricht konnte den Energiesektor um 2,9 Prozent beflügeln.

In den ersten Handelsstunden gaben einige Banken den prozentualen Anteil maroder Kredite am Gesamtkreditportfolio bekannt. Die Thai Farmers Bank (878347) teilte eine Rate von 23,37 Prozent mit. Im Vergleich zum Vorjahr ist dies eine Verbesserrung von mehreren Prozent, doch im Vergleich zum Vormonat erhöht sich der Prozentsatz um 0,15 %.
Der prozentuale Anteil maroder Kredite der Thai Military Bk. (878373) belief sich zum letzten Tag im Januar als Stichtag auf 13,76%. Die zum Teil leichten Erhöhungen der Raten sind in dieser Form von den meisten Marktteilnehmern erwartet worden und waren somit groesstenteils in den Kursen der Banken bereits antizipiert. Die Papiere der Thai Farmers Bank Pcl verloren 0,5 Baht oder 1,3 Prozent auf 38,25 Baht.was soll dieser Schwachsinn??Totaler Quatsch!
Weitere Gründe für Abschläge im Bankensektor sind die Erhöhung der Unternehmensverluste und die Verringerung von erwartetem Wirtschaftwachstum. Thailand wird die Prognosen von einem 11%igem Exportwachstum nicht erreichen. Gründe hierfür ist die sinkende US-Nachfrage nach thailändischen Gütern, teilte der Witschaftminister mit. Der Handelsumsatz der thailändische Wirtschaft verringerte sich letzten Monat um etwa 300 Millionen US-$. Darunter leiden musste die Bangkok Bank (883565), die 0,5 Baht auf 38,25 Baht abgibt.die WKN 883565 bezieht sich auf BBL-F, und die war im SET unchanged Siam Commercial Bank (879259) rutschte 0,75 Baht oder 2,7 Prozent auf 27 Baht.

Die Cogeneration Pcl und andere Gesellschaften erwarten höhere Gewinne und dadurch auch eine höhere Dividendenauszahlung. Cogeneration Pcl stieg 1,5 Baht oder 12 Prozent auf 14,5 Baht. Electricity Generating Pcl stiegen um 0,5 Baht oder 1,6 Prozent auf 32,25 Baht. PTT Exploration & Production Pcl, der staatlich kontrollierte Öl -und Gasproduzent konnte 1,5 Baht oder 1,5 Prozent auf 100 Baht zulegen.

Das Papier der Bangkok Expressway Pcl, die größte private Autobahngesellschaft, konnte heute 0,25 Baht auf 10,25 Baht zulegen. Das Unternehmen wird von der erfolgten Senkung der Leitzinsen profitieren, denn es ist mehr als 400 Millionen Baht verschuldet.

Der Anteilschein der Phoenix Pulp & Paper Pcl stieg um 0,25 Baht oder 0,6 Prozent auf 43,75 Baht. Die Anlegerschaft erwartet, dass die Siam Cement Pcl Anteilsscheine des Papierherstellers zu einem höherem Kurs an der Börse kauft.
Das Unternehmen ist an einer Übernahme der Phoenix Pulp&Paper Pcl interessiert. Siam Cement PCl. kann sich eine komplette Uebernahme der Phoenix Pulp & Paper Pcl nicht leisten, da die augenblickliche Marktkapitalisierung bei ca. 10 Mrd Baht liegt. Laut dem Vizepräsident von Siam Cement (878444) wird die Gesellschaft letztendlich an Teilen von Phoenix interessiert sein.

Das Papier der Siam City Cement Pcl kletterte um 2 Baht oder 1,7 Prozent auf 120 Baht. Das Unternehmen hat im Jahr 2000 einen Gewinn erwirtschaftet. Die Gesellschaft verbesserte ihr Vorjahresergebnis, welches wegen Zinsausgaben und Kurswährungsverluste hoch ausgefallen war. Das Unternehmen konnte im August letzten Jahres die gesamten US-Dollar Kredite zurückbezahlen.

fett erscheinende Anmerkungen sind von mir, da ich der Meinung bin, wenn schon ein Boersenbericht, dann bitte vorher Korrektur lesen bzw. wichtige Ereignisse z.B.(Banpu) nicht unterschlagen.
Moeglicherweise lag es heute am Autor, sonst, wenn es eine "sie" macht, gefaellt mir der Bericht wesentlich besser.

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Asia Markets Shares Close Broadly Lower Feb 21, 2001
A round-up of Asian stock markets for February 21, 2001, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, Feb 21 Asia Pulse - Asian share markets closed broadly lower today after a 4.4 per cent fall in the tech-heavy Nasdaq saw investors shying away from technology stocks in local markets.

Jakarta and Australia bucked the trend, shrugging off falls on Wall Street.

Jakarta share prices closed 1.43 per cent higher.

The Jakarta Stock Exchange composite index climbed 6.22 points to finish at 439.903.

Australian shares closed 0.3 per cent higher. Dealers said solid gains in banking and biotechnology stocks were enough to shunt falls in the US, saying that the market is not as heavy with technology stocks making it less vulnerable.

The All Ordinaries index rose 10.3 points to close at 3,261.1.

Elsewhere, markets fell.

Shares in South Korea closed 2.3 per cent lower as foreign investors dumped telecommunications stocks, brokers said.

The composite index closed 14.21 points down at 594.53.

Hong Kong shares closed 1.1 per cent lower, led down by telecom stocks following the Nasdaq`s fall, dealers said.

The key Hang Seng index fell 175.85 points to close at 15,351.51.

Tokyo shares laso closed 1.1 per cent lower, reaching a 28-month low for the second time this week. Dealers said the drop was pressurised by falls in US technology shares.

The Tokyo Stock Exchange`s Nikei-225 index closed 148.28 points lower at 13,100.08, its lowest level since October 15, when it fell to 12,995.37.

Singapore share prices closed 0.8 per cent lower after US stocks tumbled, brokers said.

The Straits Times index lost 14.91 points to close at 1,961.22.

Share prices in Thailand closed 0.67 per cent lower on selling of bank and finance firms, which was triggered by a slight increase in January non-performing loans and a gloomy outlook for regional markets, analysts said.

The Composite SET index fell 2.09 points to finish at 310.23.

Share prices in Taiwan closed 0.4 per cent lower following losses on Wall Street. The Nasdaq`s fall set off massive selling of technology issues in early trade, but late bargain-hunting offset some of the losses, analysts said.

The Taiwan Stock Exchange weighted price index closed down 21.33 points at 5,949.96.

Philippine share prices dropped 0.3 per cent, as the abscence of fresh leads led to profit-taking, dealers said.

The Philippine Stock Exchange composite index lost 4.22 points to close at 1,654.86.

Kuala Lumpur share prices closed 0.3 per cent lower after the fall on Wall Street and a lack of fresh leads, brokers said.

Kuala Lumpur Stock Exchange composite index closed 1.8 points lower at 711.52.

WEDNESDAY INDICES:

* SYDNEY - All Ordinaries 3,261.1 (up 10.3 points)

* HONG KONG - Hang Seng 15,351.51 (down 175.85 points)

* TAIPEI - Weighted 5,949.96 (down 21.33 points)

* SEOUL - Composite 594.53 (down 14.21 points)

* TOKYO - Nikei 13,100.08 (down 148.28 points)

* MANILA - Composite 1654.86 (down 4.22 points)

* SINGAPORE - STI index 1,961.22 (down 14.91 points)

* JAKARTA - Composite 439.903 (up 6.22 points)

* KUALA LUMPUR - KLSE index 711.52 (down 1.8 points)

* BANGKOK - SET Index 310.23 (down 2.09 points)

(C) Asia Pulse Pte Ltd.

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PRESS RELEASE: Fitch Ratings Thailand Launched
Following is a press release from Fitch:
BANGKOK, Wednesday Feb. 21--Fitch, the international rating agency, is pleased to announce that the Securities and Exchange Commission of Thailand has given final approval to the establishment of Fitch Ratings (Thailand) Limited as the country`s second credit rating agency. Fitch holds a 39.9% stake in the company and oversees the day-to-day operation and credit rating assessments of the agency. In accordance with local law, Thai shareholders hold a majority stake, each holding 10%, amounting to 50.1%. These are the Government Pension Fund, Thai Farmers Asset Management, TISCO Asset Management, Thai Life Insurance and Muang Thai Life Assurance, along with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, also holding 10%.

Ms Nawaaporn Ryansakul, Secretary General of the Government Pension Fund, has been named as Chairman and Mr. Vincent Milton as Managing Director. Mr. Milton has been Fitch`s senior analyst for Thailand`s banks since 1997 and will be responsible for all corporate and financial institutions ratings work related to Thai issuers.

Ms Nawaaporn Ryansakul, Secretary General of Government Pension Fund and Chairman of Fitch Ratings (Thailand) Limited commented: "It is our pleasure to be a founder of the new credit rating agency. The growing Thai capital market needs the second rating company. Institutional investors, to fulfill their fiduciary duties to prudently manage assets, seek more ratings assigned to debt instruments. Rational and transparent ratings shall provide investors independent opinions and help issuers identify areas of improvement."

Mr Robin Monro-Davies, Fitch`s Chief Executive Officer commented: "I am delighted to announce the launch of Fitch Ratings (Thailand) Limited with the cooperation of our Thai shareholders and IFC. Thailand is one of the largest markets in Asia with a fast developing bond market and after the difficult times of the past four years its economy is now recovering. Accurate bond ratings will improve efficiency in the local bond markets and we believe the establishment of the second credit rating agency will benefit both issuers and investors. We look forward to providing all the support necessary to ensure the Thai agency makes a valuable contribution to the development of the financial markets in Thailand."

Mr Timothy R. Ryan, IFC`s Country Manager commented: "IFC realizes the importance of the development of the local bond market as a source of stable, long-term financing in Thailand for the private sector. As such, we are pleased to take part in establishing the new credit rating agency along with Fitch Ratings Limited and five prominent Thai financial institutions. We expect that Fitch Ratings (Thailand) Limited will make an important contribution to the further development of the Thai capital markets."

At the same time, the new agency has announced the appointment of four Thai analysts. Ms Orawan Karoonkornsakul, CFA, joins as Director, Corporates; she previously worked at Merrill Lynch for six years. Ms Pimolpa Simaroj, Associate Director, Corporates, joins from Chase Jardine Fleming and had been with Bangkok Bank for four years. Mr Wasant Polcharoen, Analyst, Corporates, was previously at Thai Farmers Bank and Mr Dusadee Srishevachart, Associate Director, Financial Institutions, joins from Asset Plus.

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MPB: external risks could disrupt recovery

Filed at 02 : 50 pm (THLD time)


BANGKOK, Feb 21 (The Nation) -- External risks, particularly the US economic slowdown, are escalating to a level that could disrupt the country`s ongoing economic recovery, the Monetary Policy Board (MPB) said.

Thirachai Phuvanat-Naranubala, an MPB member, said after an informal meeting with fellow board members on Wednesday that a consensus was reached that there was no indicator to suggest that the US economy would start growing again in the second half of 2001 as expected.

Thailand would certainly feel the pinch of the US economic slowdown, according to Thirachai, as the country relies heavily on exports. The US is one of Thailand`s major trading partners.

Moreover, the MPB members have also raised concern that local private consumption and private investment remain sluggish.

"We are besieged by both external and internal risks," Thirachai said.

The Bank of Thailand recently revised its 2001 economic growth forecast down by one full percentage point to 3-4.5 per cent from 4-5.5 per cent.

However, Thirachai did not spell out clearly whether the MPB would further cut interest rates in its next meeting, scheduled for March 1, in order to bolster the ailing economy.

But the new government`s planned massive spending policies would play a large role in sustaining the economic recovery.

By Anoma Srisukkasem

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Govt agencies, public urged to buy Thai products

Filed at 04 : 46 pm (THLD time)


BANGKOK, Feb 21 (The Nation) -- The Finance Ministry has asked the Budget Bureau to review government agencies` procurement of imported products or raw materials as part of the effort to curb the country`s looming trade deficit.

Finance Minister Somkid Jatusripitak also called on the public to buy local products and cut back on purchase of imported products, particularly luxury goods, at a time when Thailand`s exports were expected to contract in the face of the economic slowdown in the US and other trading partners.

"I have asked the Budge Bureau chief to review all unsigned government procurement contracts for imported products and materials, and cancel projects deemed unnecessary," Somkid said.

In January, Thailand registered a trade deficit of US$399 million, the first time in almost three years.

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Somkid: corporate tax cut remains on card

Filed at 04 : 48 pm (THLD time)


BANGKOK, Feb 21 (The Nation) -- Finance Minister Somkid Jatusripitak insisted on Wednesday that the proposed corporate tax cut remained on the government`s agenda, rejecting criticism that the plan would be shelved in view of falling state revenue.

"The proposed corporate tax cut remains one of Thai Rak Thai Party`s main policies designed to revive the local stock market," he said.

In the runup to the Jan 6 general election, the party promised that it would slash the corporate taxes from 30 per cent to 25 per cent for listed companies as a means to attract more companies to get listed on the local bourse.

Academics say the government would likely put the tax cut plan on backburner as the budget deficit would continue into the next fiscal year.

In the 2001 fiscal year, ending this September, Thailand runs a budget deficit of Bt105 billion and some expected the deficit to stay in the same level in the next fiscal year.

Yesterday, Thailand Development Research Institute (TDRI) came up with a study, indicating that the tax cut would not persuade more qualified companies to get listed on the stock market, but would instead create distortion in the tax collection as companies would be categorised into two tiers. It also noted that the government would then need to raise taxes from other areas to compensate for the lower tax collected from these companies.

Somkid said he would discuss the tax cut policy with the Association of Securities Companies and the Stock Exchange of Thailand on Friday.

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Bad loans rise at six commercial banks in January


NON-performing loans (NPLs) at six commercial banks increased at the end of January, up from levels in the previous month. Thai Farmers Bank was the only one of seven banks releasing problem-loan figures that showed a decline in NPLs. Its bad loans fell to 13.76 per cent of its outstanding loans from 13.79 per cent at the end of 2000.

The country`s third largest lender said its delinquent loans amounted to Bt67.533 billion at the end of January, down from Bt67.534 billion in the previous month.

Krung Thai Bank recorded the highest increase in NPLs. Its bad loans accounted for 9.56 per cent of total loans, up from 8.39 per cent at the end of December. The bank said it had Bt75.62 billion in bad loans, up from Bt66.58 billion at the end of 2000.

Bangkok Bank`s NPLs stood at 18.77 per cent of its total loans, or Bt146.72 billion, as of the end of January, compared with 18.52 per cent at the end of 2000, or Bt146.56 billion. Thai Military Bank reported NPLs at 23.37 per cent of outstanding loans at the end of January, compared to 23.22 per cent a month before. The bank said its bad loans amounted to Bt63.6 billion, compared with Bt62.7 billion the month before.

Bank of Asia, a Thai unit of The Netherlands` ABN Amro, said its problem loans rose to 23.03 per cent of its total loan portfolio as of the end of January, from 22.61 per cent in December. Its problem loans were worth Bt25.82 billion compared to Bt25.46 billion the previous month.

Nationalised Siam City Bank reported its NPLs at 58.65 per cent of total lending as of the end of January, up from 58.59 per cent at the end of December. But the total value of the bank`s problem loans was down to Bt131.66 from Bt131.69 billion a month earlier.

Tisco Finance reported that bad loans stood at 10.74 per cent of its total loans as of the end of January, up from 10.42 per cent a month earlier. The firm said the value of its bad debts remained at Bt2.77 billion, the same amount reported for December.

National Finance`s delinquent loans accounted for 23.57 per cent of total lending at the end of January, down from 24.10 per cent in December. The finance company`s problem loans amounted to Bt9.18 billion, compared to Bt9.33 billion a month earlier.

Central Bank spokesman Bandid Nijathavorn said that the Bank of Thailand was considering whether new NPLs or recurring NPLs caused the slight hikes this month.

Banks should realise debt restructuring was still crucial, he said, even though a national Asset-Management Corporation would be set up.

Meanwhile, the central bank yesterday announced Thai commercial banks` capital-adequacy ratio was 11.4 per cent as of December 2000, well above the central bank`s minimum requirement of 8.5 per cent.

The higher capital adequacy ratio was the result of banks boosting their capital bases for credit expansion, Bandid said. However, so far, as banks had failed to extend new loans to the business sector, thus their capital adequacy ratio remain high. "So, banks should expand their business according to their capital base," he said.

There was a significant decline in NPLs at the end of December, said Kawee Chukijkasem, banking analyst with Capital Nomura Securities. At that time, banks were doing year-end write-offs of bad loans, transferring distressed assets to asset-management companies and restructuring debt, he said. In January, the banks relied on only debt restructuring, he said.

The Nation 22.2.01

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Bourse `needs tax incentives`


THE stock market needs tax incentives to bolster its development, regardless of whether the corporate income-tax rate is cut, according to market experts.

The comments were made in reaction to a recent report by the Thailand Development Research Institute, which opposed a government plan to slash the corporate tax rate from 30 per cent to 25 per cent for companies listed on the bourse.

The institute said a corporate-tax cut would not be able to counter a slump in the stock market as it would be of no help to listed firms, most of which are losing money, and would not create incentives for companies to list on the Stock Exchange of Thailand (SET).

A tax cut would also create inequity in the tax structure. If the government runs a budget deficit and is forced to raise taxes as a result, the burden would fall on other parts of the economy that directly affect the people, the institute said.

SET president Vicharat Vichit-vadakan said there were several other types of tax incentive that would help support the country`s equity market. He did not, however, specify what measures he had in mind.

He said if corporations could benefit from tax incentives, they would be more willing to list on the stock exchange. As it stands now, corporations normally end up having to pay more taxes after seeking a listing due to stiffer accounting standards, as well as stricter transparency requirements. He added that developed countries commonly used tax incentives to spur their stock markets.

Somjet Moosirilert, managing director of National Finance and Securities, said the Association of Securities Companies had recommended to the government a set of incentives for stimulating the local bourse. He agreed that tax incentives would definitely encourage more companies to list, and would also help the government to generate more tax revenue.

However, he said the tax-incentives solution was not the only way to prop up the country`s capital markets, as there were other factors - not least economic conditions - affecting the market.

Finance Minister Somkid Jatusripitak yesterday said the ministry had not yet considered the corporate tax-cut proposal in detail, although it is stated government policy.

He said the ministry needed to consider the entire picture of the government`s revenue streams and collection channels. He added that he would meet with the Association of Securities Companies tomorrow.

SET chairman Amaret Sila-on, meanwhile, commented that the stock market was still a minor blip on the world horizon, as it is still too small in relation to the country`s total investment. He suggested that more companies should be encouraged to list.

Amaret pointed to the much lower cost of raising funds via the stock market - at between 3 and 5 per cent - compared to the commercial-bank lending rate, currently quoted at 7 to 9 per cent, or more.

For savers, the stock market would become an alternative haven, as more than 90 per cent of the country`s savings are currently sitting in bank deposits, he said.

The SET chairman added that the development of the stock market was a vital issue for the economy, as it would help make for a better-balanced financial system. He said he believed the financial crisis had been mainly caused by an imbalance in the system.

He said the economy had depended too much on fund-raising from the money market, while funds mobilised from the stock market were equivalent to only one fourth of the money market.

Such a proportion is small compared to the United States, where fund-raising via the stock market is as high as 54 per cent of the size of the money market. He added that the Thai stock market accounted for only 11 per cent of the country`s total investment value.

BY SIRIPORN CHANJINDAMANEE

The Nation 22.2.01

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COMPANY REPORTS:


KR PRECISION`S net loss in 2000 widened to Bt373.8 million from Bt17.8 million in 1999.

The company attributed the higher loss to a Bt76.7-million write-off of tooling and jigs and a Bt114.2 million impairment loss.

Its sales in 2000 jumped 87 per cent to Bt1.18 billion from Bt624 million in 1999.

The rise was due to higher average selling prices and an increase in suspension assembly sales volume, as a result of successful qualification and introduction of new products.

KGI SECURITIES ONE informed the Stock Exchange of Thailand that holders of warrant number III who would like to exercise their rights for conversion of warrants into common shares, would have to submit their intentions to the company on February 23, 26 and 27.

The subscription period is set for February 28. Each warrant entitles the holder to 1.22 common shares at the exercise price of Bt4.09 per share.

THAI LUXE ENTERPRISES` board of directors has agreed to allocate the 374,000 remaining shares from the latest capital increase to its committee board and management team.

The shares will be sold at Bt0.14 apiece, or Bt5.24 million in total.

The payment date is April 30.

However, the planned share allocation still requires a final approval from shareholders, scheduled to meet on April 5.


The Nation 22.2.01

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STREETWISE: National AMC to be drafted in grand, glittering style


ANOTHER Thai Rak Thai Party policy is about to come under the microscope, as the new government is throwing a big party and seminar over the weekend to mark the launch of its national asset-management company (AMC).

Prime Minister Thaksin Shinawatra will host this glittering event, which will unite the country`s bankers at the Dusit Polo Resort in the tony resort town of Cha-Am.

Thaksin conveniently owns a Mediterranean-style luxury resort home right next door.

All the top bureaucrats, policy planners and academics will be on hand to draw up a grand strategy to bail out the banks through the national AMC.

Tourists should be aware that Cha-Am, and the nearby Hua Hin, will be crowded as thousands of participants, their followers and a huge troop of media will be making their presence known.

Asked whether the Cha-Am event is worth the money, Finance Minister Somkid Jatusripitak quipped that compared to the cost of carrying the banks` massive bad debts, it is quite worthwhile.

The two-day seminar should result in a blueprint to pursue the national AMC, he said.

Thaksin has already assigned specific homework for the bankers to tackle, based on the assumption that if the government sets up the national AMC, they will start lending in return.

Somkid said the government would abort its national AMC plan if the seminar turned against the idea, but added he expected a consensus in favour.

That may be difficult as most independent economists have voiced opposition to the idea, citing high costs to taxpayers and moral hazard.

Bank of Thailand officials and many bankers, including Chulakorn Singhakowin, president of the Thai Bankers` Association and Banthoon Lamsam, president of Thai Farmers Bank, have expressed doubt that the national AMC would have much teeth.

However, Thaksin and Somkid already have support for the national AMC from Chatri Sopophanich, chairman of Bangkok Bank, which critics have said would largely benefit from such a policy.

Support from Chatri alone, however, might not be enough to convince the public that a national AMC is the cure-all medicine for the country`s debt woes.

One model proposed by Kitti Limskul, a Thai Rak Thai adviser, estimates an AMC cost of about Bt400 billion to clean up non-performing loans (NPLs) worth Bt1.2 trillion. Other models have claimed a lower cost.

Somkid earlier said the new government might set up the AMC to manage only the bad debts of state-owned or nationalised banks, while opening up room for private banks` participation.

Bureaucrats at the Finance Ministry did not hesitate to lend full support for this model, including Sathit Limpongpan, director-general of the Fiscal Policy Office.

He claimed the latest model would save costs amid high public debt and would also boost asset prices.

But is this model exactly what taxpayers want? It must be. After all, 12 million voters cast their votes for the party that championed its cause.

>>>>>>>>>>>>>>>>>>>>>>

Lusting for luxury imports

TO many makers of luxury products, Thailand continues to be an attractive market because purchasing power remains high despite the country`s financial problems.

Among international makers encouraged to penetrate the market is a French company which yesterday inked a deal with the Mahadamrongkuls to have the latter`s company distribute its Corali-branded luxury 18K gold-plated diamond rings. Priced at Bt30,000 to Bt100,000, the rings are expected to be highly attractive to businesswomen.

And that`s not the only international luxury brand marketed by the family`s Trocadero Time Co Ltd. The Mahadamrongkuls, in fact, were in the luxury market even before Frank Jewelry was born. Each year, the company fetches some Bt100 million in total sales.

Luxury items have been the target of criticism. They are considered to have been a major factor leading to a trade deficit, along with imported items deemed unnecessary, including vehicles, alcoholic drinks and cosmetics.

The latest trade figures in January showed that the country registered a trade deficit of US$399 million (about Bt17 billion).

Attempting to minimise imports, the Finance Ministry has ordered the Budget Bureau to review government agencies` procurements of imported products.

"I have asked the Budget Bureau to review all unsigned government procurements and to cancel projects deemed unnecessary," Finance Minister Somkid Jatusripitak said yesterday.

He also called on the public to buy local products and cut back on purchases of imported products, particularly luxury goods.

But until Thailand can come up with products of the same quality and attractive design as those of popular imported items, the lust for overseas shopping will remain high.

The Nation 22.2.01

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Migrants blamed for spread of HIV


KHON KAEN - Health experts said yesterday that migrating workers were to blame for the spread of HIV/Aids in the Northeast. There are 300 people with Aids in two Roi Et villages, health expert Daranee Chantaen said.

Nonglak Boonyaputti, project manager of the advocacy group Aids Net, said HIV/Aids had been on the rise in the Northeast for the past decade.

"Studies have shown that male workers, aged between 20 and 39, have the highest rate of HIV infection. And these infections mostly occur when they are working outside their hometowns," she said.

Nonglak said the rate of HIV infection tended to multiply when Northeast workers, especially those in the fishing industry, returned home. She called on relevant agencies and non-governmental organisations to join hands in educating residents about the prevention of HIV/Aids.

The Nation 22.2.01

aha, the fishing industry men

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Rinderpest ruled out


THE Livestock Department issued a statement yesterday saying foot-and-mouth disease - and not cattle plague - had caused the death of about 80 oxen in Kalasin province.

The ministry said laboratory tests had shown the virus discovered in the dead oxen was that of foot-and-mouth disease and not paramyxovirus, which causes rinderpest, or cattle plague, as reported previously in The Nation.

The Disease Control Division of the Livestock Department said it had not detected rinderpest in any animal in Thailand since 1956, and had suspended vaccinations for the disease five years ago. Blood tests of oxen have been conducted nationwide over the past two years, without any evidence of rinderpest being found.

The Nation 22.2.01

Das war natuerlich vorherzusehen.Lach

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Army issues warning to drug lords


BAN PHA HEE, Chiang Rai - The Third Army commander yesterday warned drug warlords operating along the border in the North, saying the build-up of Thai troops in the area is partly designed to put the squeeze on drug-trafficking armies.

"We will shut the door and beat the bad cats," Lt General Wattanachai Chaimuanwong said.

In addition to securing the border against Burmese intrusion, the build-up is an opportunity to zero in on the armies of drug traffickers and the opium warlords, he said.

Third Army deputy commander Maj General Chamlong Phothong said the ban against cross-border trade, especially to areas where drug armies are positioned, will be strictly enforced.

Any type of precursor chemicals used for making methamphetamines, or yaa baa, or other illegal drugs would be strictly prohibited from entering the area.

However, Chamlong said, Thai troops will not cross the border to pursue drug armies such as the 20,000-member United Wa State Army (UWSA).

The UWSA is a pro-Rangoon group that over the years has expanded its drug operations from its stronghold along the Chinese border to areas adjacent to Chiang Mai and Chiang Rai provinces.

If the UWSA or any other drug trafficking group is seen approaching the Thai border, Chamlong said, Thai soldiers won`t hesitate to use force.

In a separate development yesterday, a platoon of soldiers from the Shan State Army (SSA) overran a Burmese military base near Chiang Rai`s Ban Pha Hee at dawn, bringing the fight between the rebels and Rangoon to the doorstep of Doi Tung, a popular tourist destination.

One Burmese soldier was killed and another was taken hostage, an SSA official said. The rest abandoned the camp and fled to a nearby Burmese Akha village.

The camp, situated on the curb of a paved road on Doi Chang Moob that links Doi Tung to Mae Sai, was occupied by 11 Burmese troops at the time.

Empty casings of rocket propeller guns fired by the SSA were scattered near the camp.

Wattanachai insisted the Army was not involved in the operation, saying the incident was an internal Burmese matter.

Meanwhile, the Foreign Ministry yesterday welcomed a remark by Burmese intelligence chief Lt General Khin Nyunt that suggested the junta is serious about resolving problems with Thailand through peaceful means.

Foreign Ministry spokesman Pradap Pibulsonggram said Rangoon should match words with deeds, adding that a convening of the Regional Border Committee would be welcome.

"If they are as serious as they said, they should answer [invitations] officially and not just through newspapers reports," Pradap said.

Defense Minister General Chavalit Yongchaiyudh yesterday suggested that border problems with Burma could be dealt with more effectively if the local and regional border committees would agree to meet regularly. There should be at least one meeting a year at the government level, he said.

In any case, the border dispute should be solved soon after the new Thai government formulates its policy on the situation, he said.

Chavalit said he would send a "personal representative" to attend a funeral of Lt General Tin Oo, the fourth-ranking member of Burma`s ruling State Peace and Development Council, who died in a helicopter crash on Monday.

BY CHAIWAT PUMPUANG

The Nation 22.2.01

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Cabinet minister `on police blacklist of drug dealers`


A THAI Rak Thai minister in Thaksin`s Cabinet is among several MPs on a police blacklist of drug traders, an informed source told The Nation.

Police suspect the minister is connected with at least three drug cases over the past three years, although they have no hard evidence yet on which to arrest him, the source said.

The minister was allegedly linked to a haul of more than 100 kilograms of heroin and five million amphetamine pills seized in January in a joint operation between the Navy and anti-narcotics officers in Ranong, the source said.

After interrogating suspects and a follow-up investigation, the seized drugs were traced to a company in the north, which has connections with the politician, the source said.

The same minister was also allegedly linked to another police drug raid early last year. The case involved a kamnan arrested with amphetamine pills in his luxury off-road vehicle by police in Chiang Rai.

After his arrest, the kamnan allegedly tried to bribe police with Bt2 million in cash. Police discovered later that just prior to offering the bribe, a large transfer of money had been made to the kamnan from one of the politician`s aides.

The third case involved the bizarre circumstances surrounding the discovery of an amphetamine factory in Pathum Thani in 1999.

Police were led to the factory by a man who went berserk inside the Parliament building in late 1999. Somdej Kruawara, 30, apparently on drugs, sparked a security panic by managing to get inside the Parliament building. Chased by security officials, he ran towards a desk of television reporters. He demanded to see the prime minister, claiming police were trying to kill him because of his involvement in the drug trade.

Police later raided a house in Pathum Thani, described by Somdej to reporters, and found a huge stash of amphetamine pills, along with drug-making equipment and chemicals.

"After an investigation, police found some clues pointing to the politician, but no arrest was made," the source said.

According to an earlier report, six to eight newly-elected MPs and politicians in Thaksin`s government are suspected of being involved in the drug trade.

The blacklist was reportedly given to Thai Rak Thai secretary-general, Purachai Piemsomboon, who now holds the post of Interior Minister.

The drug-trade allegations were made public just before the formation of Thaksin`s Cabinet, which drew an angry response from the Thai Rak Thai Party. It prompted Pol Maj Gen Intharadej Pornpiraphan, deputy commissioner of the Drug Suppression Bureau, to deny he told the press about the list.

According to the same source, a senior adviser in the Thaksin government is also on the list, and has been under close watch from anti-drug officers since serving as a government official.

Another politician on the list is a key public relations man in the government, the source said.

The new prime minister has said fighting drug trafficking is a top priority.

The Nation 22.2.01

Das hatten wir doch schon mal?

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Bad loans rise at six commercial banks in January


NON-performing loans (NPLs) at six commercial banks increased at the end of January, up from levels in the previous month. Thai Farmers Bank was the only one of seven banks releasing problem-loan figures that showed a decline in NPLs. Its bad loans fell to 13.76 per cent of its outstanding loans from 13.79 per cent at the end of 2000.

The country`s third largest lender said its delinquent loans amounted to Bt67.533 billion at the end of January, down from Bt67.534 billion in the previous month.

Krung Thai Bank recorded the highest increase in NPLs. Its bad loans accounted for 9.56 per cent of total loans, up from 8.39 per cent at the end of December. The bank said it had Bt75.62 billion in bad loans, up from Bt66.58 billion at the end of 2000.

Bangkok Bank`s NPLs stood at 18.77 per cent of its total loans, or Bt146.72 billion, as of the end of January, compared with 18.52 per cent at the end of 2000, or Bt146.56 billion. Thai Military Bank reported NPLs at 23.37 per cent of outstanding loans at the end of January, compared to 23.22 per cent a month before. The bank said its bad loans amounted to Bt63.6 billion, compared with Bt62.7 billion the month before.

Bank of Asia, a Thai unit of The Netherlands` ABN Amro, said its problem loans rose to 23.03 per cent of its total loan portfolio as of the end of January, from 22.61 per cent in December. Its problem loans were worth Bt25.82 billion compared to Bt25.46 billion the previous month.

Nationalised Siam City Bank reported its NPLs at 58.65 per cent of total lending as of the end of January, up from 58.59 per cent at the end of December. But the total value of the bank`s problem loans was down to Bt131.66 from Bt131.69 billion a month earlier.

Tisco Finance reported that bad loans stood at 10.74 per cent of its total loans as of the end of January, up from 10.42 per cent a month earlier. The firm said the value of its bad debts remained at Bt2.77 billion, the same amount reported for December.

National Finance`s delinquent loans accounted for 23.57 per cent of total lending at the end of January, down from 24.10 per cent in December. The finance company`s problem loans amounted to Bt9.18 billion, compared to Bt9.33 billion a month earlier.

Central Bank spokesman Bandid Nijathavorn said that the Bank of Thailand was considering whether new NPLs or recurring NPLs caused the slight hikes this month.

Banks should realise debt restructuring was still crucial, he said, even though a national Asset-Management Corporation would be set up.

Meanwhile, the central bank yesterday announced Thai commercial banks` capital-adequacy ratio was 11.4 per cent as of December 2000, well above the central bank`s minimum requirement of 8.5 per cent.

The higher capital adequacy ratio was the result of banks boosting their capital bases for credit expansion, Bandid said. However, so far, as banks had failed to extend new loans to the business sector, thus their capital adequacy ratio remain high. "So, banks should expand their business according to their capital base," he said.

There was a significant decline in NPLs at the end of December, said Kawee Chukijkasem, banking analyst with Capital Nomura Securities. At that time, banks were doing year-end write-offs of bad loans, transferring distressed assets to asset-management companies and restructuring debt, he said. In January, the banks relied on only debt restructuring, he said.

The Nation 22.2.01
.Unter dem Schutz der rheinischen Narrenkappe" glich hammeer alde Weiberregimente herrschen -- op dat jegluevt woert oder nit, dat waa schon immer soo -- in de Raettematteng woar de beste scholl(Kneipe),dee Napoleon haett dae Nam creiert -- un haett jesaagt: fiere un suffe ,is besser als op de luett rumhacke. Also Helau

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Telecom-conversion plan faces review


TRANSPORT and Communications Minister Wan Muhammad Noor Matha will review the process for converting telecom concessions, giving rise to speculation that he favours a scheme proposed by private operators.

Wan Noor and his deputies took office yesterday.

Wan Noor, a powerful figure in the New Aspiration Party, supervises the telecommunications industry. He said that unless criteria for converting concession contracts were made more flexible, getting government agencies and private operators to agree on the terms would be difficult.

Telecom concessions, based on revenue-sharing agreements between private operators and state agencies, must be converted under the liberalisation of the telecom sector, slated for completion by 2006.

Wan Noor said he would hold talks soon with the government committee overseeing the conversion process, along with Thailand Development Research Institute (TDRI), a project consultant and relevant agencies to discuss the changes.

"I agree with the former government`s policy of setting up a mediating body to hasten the process. This would be in the best interests of both the public and private sectors as we prepare for the coming era of liberalisation. But we must be realistic and ensure the terms are practical for both sides," he said.

Shortly before the Chuan government left office, the State Enterprise Policy Committee extended the conversion committee`s working period until March. Chaired by Aran Thamno, a former permanent secretary for finance, the committee earlier reported that it had made progress, but that nothing had been finalised.

Of the 26 contracts to be converted, fixed-line contracts are deemed the top priority, followed by mobile phone contracts. A TDRI source said leading telecom operators, who were initially eager to speed up the process and had agreed in principle with the criteria, have grown more reluctant, preferring to wait until the new government makes its policies clearer.

At issue are the huge payments the private firms would be required to pay to compensate for ending the revenue sharing. The private firms disagree with the policy of making compensation payments based on the entire concession period, proposing instead that they end in 2006, when the telecom market is slated to be liberalised under commitments to the World Trade Organisation.

A telecom industry source said the formation of a powerful new government by the Thai Rak Thai Party, led by telecom tycoon Prime Minister Thaksin Shinawatra, had led Thai telecom firms to reach a consensus on the most favourable conversion terms.

After the current revenue-sharing conditions end, the firms would prefer to reduce rates rather than pay the government. For example, a firm that now hands over 20 per cent of its revenue to the state under the terms of its contract would reduce service charges by an equal amount, meaning cheaper rates for customers.

Under the existing criteria, Advanced Info Service, the largest mobile phone operator, reportedly pays the government about Bt150 billion, while No 2 operator Total Access Communication pays Bt120 billion.

Third-ranked Digital Phone Co pays about Bt20 billion and Wireless Communication Service, which has yet to begin operations, must pay Bt10 billion.

Fixed-line operators TelecomAsia and TT&T reportedly pay Bt50 billion and Bt40 billion, respectively.

Meanwhile, as minister, Wan Noor also supervises the Airports Authority of Thailand (AAT) - including the controversial Suwanaphumi International Airport project - the Highways Department and State Railways of Thailand.

Pracha Maleenont, one of his deputies, has been assigned to handle Thai Airways International, the Aviation Department, Aeronautical Radio of Thailand, the Harbour Department, Port Authority of Thailand, Thai Maritime Navigation Ltd and the Office of the Maritime Promotion Commission.

Another deputy, Pongsakorn Laohavichien, will supervise the Land Transport Department, Transport Co Ltd, Express Transportation Organisation of Thailand, Bangkok Mass Transit Authority and the Meteorological Department.

A Thai Rak Thai source said Pracha, elected as a Thai Rak Thai party-list MP, wanted to oversee the telecom sector but was assigned to handle the aviation industry as the government is eager to avoid accusations of conflict of interest in its handling of the telecom industry.

BY TELECOM REPORTERS

The Nation
22.2.01

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Helau Winny un dat janze angere jesocks do bei de Halbaffe,
jetz woed jesoffe un jefieert bis am Aschermittwoch

http://www.rp-online.de/karneval/duesseldorf/berichte/rosenm…

un he de eschte Toehn voer dat janze(realplayer musse han)

http://rp-online.de/karneval/duesseldorf/berichte/audio/paga…

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DATA VIEW: Thai Trade Deficit Blamed On Global Slowdown
By Jenny Paris
Of DOW JONES NEWSWIRES

BANGKOK (Dow Jones)--The global economic slowdown is beginning to eat into Thai exports, which in January dropped for the first time since March 1999 driving the trade balance into a deficit, but analysts said it was too early to call say if this is the start of a trend.

"We do expect exports to suffer in the first half of this year as a result of the U.S. economic slowdown," Maya Pinto, an economist with IDEAglobal.com said. "But it`s too early to say if this means we should expect a trade deficit throughout this year."

Exports dropped 3.9% in January while imports surged 31.3%, resulting in a trade deficit of $282 million - the first deficit in 11 months - according to data issued by the Bank of Thailand Wednesday.

A low base effect from the previous year and a one-off aircraft purchase in January led to the surge in imports while lower global demand caused the drop in exports, Bank of Thailand Director Atchana Waiquamdee said.

Atchana said the central bank needed to monitor trade data for the next two or three months to see if a negative trend would develop but Atchana noted that a prolonged trade deficit would affect overall economic growth.

The central bank has forecast that gross domestic product will rise 3%-4.4% in 2001.

A source at the Thai National Shippers Council cited by the Nation newspaper Wednesday said a trade deficit was again likely in February with exports dropping by 2% to 3% from the same month last year due to lower overseas demand.

Gradual Improvement Expected In Second Half

Merrill Lynch Phatra Securities said an expected economic recovery in the U.S. economy in the second half of 2001 would lead to a gradual improvement in Thailand`s exports.

However, it said, "should a rebound in the U.S. fail to arise in the second half, our forecast of 7% export growth in 2001 would have downside risk, along with downside risk for the baht and GDP growth in 2001."

The Thai baht ended lower Wednesday breaking the 43 baht to the U.S. dollar level to close at THB43.025 to the dollar, in part due to the release of the poor trade data.

Traders said the trend of a slowly weakening baht has remained intact due to the weakness in the Thai economy. However, analysts have said the baht`s slide shouldn`t be viewed as entirely negative as a weaker currency could stimulate export growth.

Merrill Lynch said weaker exports and slower economic growth should in turn push imports lower in coming months, improving the country`s trade account.

"Therefore Thailand is still expected to post a sizable trade and current account surplus in 2001," it said.

The balance of payments showed a strong $513 million surplus in January, up from $181 million in December, while the current account also had a surplus of $298 million due to a large surplus in service and transfer accounts.

IDEAglobal`s Pinto also expects the trade account to return to positive territory by the end of the year, but she pointed to the risk that Thailand may experience a sustained trade deficit earlier than previously expected.

"Before, we expected a (sustained) trade deficit to occur in 2004 at the earliest but now we think we may see it before then," she said.

She said IDEAglobal didn`t presently plan to revise its 3.4% GDP growth forecast for this year, despite the trade data, as an expected U.S. economic recovery in the second half should support Thai exports.

"The overall economic growth will depend on the overall trade balance and this month`s deficit may well have been a one-off event," she said. -0- 28/02/01 11-36G

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Wednesday, February 28 6:54 PM SGT

Foreigners Bought Net THB309.8 Mln In Thai Stocks Wed
BANGKOK (Dow Jones)--Foreign investors were net buyers of 309.8 million baht ($1=THB42.875) worth of Thai stocks Wednesday out of a total of THB11.63 billion traded, said the Stock Exchange of Thailand, or SET.
Figures are in baht; some are rounded; percentages are calculated from unrounded numbers:


Bought % Total Sold % Total
Foreign 1,612.4 mln 13.87 1,302.6 mln 11.20
Local Retail 9,760.6 mln 83.95 9,962.0 mln 85.68
Institutional 254.3 mln 2.18 362.6 mln 3.12



Note: Foreign activity represents transactions by both institutions and individuals, local retail activity is by Thai nationals only, and institutional activity is by domestic institutions, SET member-brokers and sub-brokers.

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Sharp drop in banks` losses: BOT

staff writer

Combined losses of Thai banks totaled 11.5 billion baht last year, a sharp drop from the previous year`s losses of 335 billion baht, the Bank of Thailand said yesterday.

The losses occurred because banks had to put aside 119 billion baht for loan loss provisions, said BOT spokesman Oubaur Kruthanooch.

"Otherwise, the banking system would have seen a profit of 3.5 billion baht," he said.

The system`s loss dropped sharply because some commercial banks earned a total of 68.6 billion baht from successful debt restructuring, he said.

Five private banks made a profit of 20.6 billion baht before loan loss provisioning, he said.

The combined losses of foreign-Thai joint venture banks was 1.94 billion baht and those of state-owned banks was 15.1 billion baht, he said.

The burden on Thai banks to set aside loan-loss provisions has lessened because most of them have fulfilled BOT requirements, Oubaur said.

Meanwhile, the combined net lost of 21 finance companies was 2.3 billion baht last year, a drop from 2.44 billion baht in 1999, he said.

Eleven finance companies operated in the black last year, compared with only six in 1999, he said.

Finance companies` interest income totaled 5.2 billion baht last year, compared with 1.1 billion baht in 1999.

Quelle bday.net 28.2.01

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Wednesday, February 28 11:07 PM SGT

Thailand Repatriates 4,000 Illegal Immigrants To Myanmnar
MAE SOT, Thailand (AP)--More than 4,000 illegal immigrant workers were repatriated to Myanmar on Tuesday and Wednesday, Thai immigration officials said.
The workers were rounded up over the past week from several Thai provinces bordering Myanmar, immigration police Col. Rutchata Sibsai-on said Wednesday.

Thailand in late 1999 began implementing a long-term policy to expel Myanmar immigrants, who form the vast majority of an estimated one million illegal immigrants from poorer, neighboring countries. There are periodic crackdowns and roundups.

Previously, the presence of foreign workers was tolerated because they provided low-wage labor, but after the economy took a sharp downturn in 1997, they were increasingly regarded as a burden.

According to Col. Rutchata, the government has allocated a budget of $1.9 million to detain and repatriate 300,000 immigrant workers this year.

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Thailand`s Feb CPI up 1.5 per cent year-on-year

Filed at 10 : 50 am (THLD time)


BANGKOK, Mar 1 (The Nation) -- Thai Consumer Price Index (CPI) rose 1.5 per cent in Feb 2001 year-on-year versus 1.3 percent year-on-year in Jan 2001.The Feb 2001 CPI was up 0.5 per cent from Jan.

According to Phisit Setthawong, director-general of Internal Trade Department, the rise in CPI can be attributed to 0.1 per cent higher food and beverage prices, especially jasmine rice, fresh vegetables and eggs, the last of which was due to lower production output. Price of non-food items also increased by 0.7 per cent, mainly from higher electricity cost after the recent FT (fuel transfer) rate hike.

By Atchara Pongvuttitham

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Thursday, March 1 2:47 PM SGT

Thailand Newspaper Highlights March 1, 2001
BANGKOK, March 1 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- Populist puffery or an effective package to cure the country`s economic woes? For top economist Ammar Siamwala of the Thailand Development Research Institute, the government`s policies are a self-serving marketing tool that could spark a worse economic crisis.

- Economic data released by the Bank of Thailand yesterday were mostly gloomy, with declines posted in the trade account, manufacturing and production indices.

- Siam Cement Plc yesterday signed an agreement with Lafarge Boral Gypsum in Asia Ltd to form a strategic partnership in the gypsum business.

- Your 2000 pre-tax profits are up 28 per cent from the year before, return on equity was 24 per cent and earnings per share gained 23 per cent. For any Thai bank shareholder, such figures would be cause for celebration.

- Production of fresh pineapple is projected to reach 1.45 million tons this year, 15 per cent less than last year, with canneries likely to absorb the harvest despite a brief oversupply.

- Tricon Restaurants International Inc, the brand owner of Pizza Hut, has launched an innovative, localised topping in a bid to stay ahead of its arch rival, Minor Food Group Plc`s The Pizza Company.

- UOB Radanasin doesn`t expect to post a net profit until late 2002 at the earliest, but aims to double its current loan portfolio to 18 billion baht by December this year.

- The currency markets are expected to remain quiet over the next few days, as dealers digest the impact of the Bank of Thailand`s new reporting regulations which are to come into effect today.

- Thailand`s exports are likely to continue feeling the effects of the United States` economic downturn. Exports to this market alone were down 4.4 per cent year-on-year, to US$1.06 billion in January, according to the Business Economics Department.

- An export slowdown would most likely have an adverse impact on the country`s production, according to Chavalit Nimla-or, deputy secretary-general of the Federation of Thai Industries [FTI].

- Advanced Info Service Plc will offer its previously announced 12-billion-baht-worth of bonds due in 2006 via a private placement, according to the underwriter, Thai Farmers Bank.

- DTAC-the corporate reincarnation of Total Access Communication Plc-vowed yesterday to become the market leader by aggressively promoting cellular services that will waive the 500-baht monthly fee for new customers for five years.

ASIA PULSE

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Somkid: planned VAT hike on hold

Filed at 06 : 22 pm (THLD time)


BANGKOK, March 1 (The Nation) -- Finance Minister Somkid Jatusripitak confirmed on Thursday that the planned hike of value-added tax from 7 to 10 per cent this October would be put on hold until local consumption returned to normal level.

"There will be no increase of VAT rate in October," he told reporters. The government intends to freeze the VAT rate even though the massive public spending programmes would lead to bigger budget deficit.

Thailand`s exports are expected to slow down sharply as a result of the slowing US economy and many economists are now saying that exports may cease to be the main driving force to spur the country`s economic growth.

Some economists have urged the new government to boost local consumption, a move they say will contribute significantly to this year`s growth.

Commenting on a planned reduction in corporate income tax from 30 per cent to 20 per cent, the Finance Minister said that he expected this tax cut plan to go into effect next year, and that the cut would apply to both new and existing listed firms.

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Thursday, March 1 3:37 PM SGT

Thailand Signals Move To `Asian Values` In Foreign Policy
BANGKOK (AP)--Asia`s problems of human rights and democracy can be solved by ensuring that its leaders are not belittled or forced to lose "face," Thailand`s new foreign minister said Thursday.
The comments signal a shift in Thailand`s foreign policy, as it goes back to the use of "Asian values" - instead of the Western policy of sanctions - for resolving problems like reconciliation between Myanmar`s ruling military junta and the opposition.

"Asian way doesn`t mean that we do not respect human rights. Asian way does not mean that we do not respect democracy. Asian way doesn`t mean that we cannot work together for democratization," Foreign Minister Surakiart Sathirathai said.

But outsiders must remember that "Asian people consider face as something very important ... you are not supposed to (create) a situation where you do not save face of your friends," he said.

"These are the characteristics that we have to take into account when we talk to our Asian friends," Surakiart told a news conference, his first since the new government took power last month.

The previous Thai government had upset many in the 10-member Association of Southeast Asian Nations by vocally pushing for democracy and human rights in Asia. Until then, even discussion of these subjects was considered taboo by ASEAN, which is largely dictated by the so-called Asian values espoused by the leaders of Singapore, Malaysia, Indonesia and others.

Surakiart said Malaysian Prime Minister Mahathir Mohamad has done "a very good job also" in promoting reconciliation between Myanmar democracy leader Aung San Suu Kyi and the junta.

The two sides were reported recently for the first time to be moving toward a rapprochement. The junta refuses to hand over power to Suu Kyi`s National League for Democracy party, which won general elections in 1990. Many of its members have been arrested and Suu Kyi is living under virtual house arrest.

Surakiart said he will visit Malaysia and Vietnam, the current chairman of ASEAN, sometime next week in his first foreign trip that would also include China.

He said he has no problems in allowing Defense Minister Chavalit Yongchaiyudh, a former army general, to use his personal contacts with the Myanmar generals to resolve bilateral problems such as border disputes and drug smuggling.

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Thursday, March 1 9:21 PM SGT

Thai Govt Wants State AMC To Begin Operation In June
BANGKOK (Dow Jones)--The Thai government aims to set up by June a central asset management company which will handle bad assets, Finance Ministry Permanent Secretary Somchainuek Engtrakul, said Thursday.
"Our objective is that the new central AMC will be operational in June," Somchaineuk told reporters after a meeting with a committee in charge for the establishment of the AMC.

The committee has two weeks to come up with a detailed plan on the AMC`s operation and work out the pricing of the loans to be transferred to it.

Somchainuek said that a new law is needed to put together a central body that will comprise of two separate accounts - one for assets in state-owned banks and one for assets from Thai private commercial banks. Foreign banks won`t be included in the initial stage but there may be ways to participate later, he said.

"The plan is meant primarily for Thai banks," he said.

The central AMC will have a nine-member board.

Nonperforming loans amounting to a minimum five million baht $1=THB42.94) and at least three creditors, will be eligible to be transferred to the AMC from private banks, Somchainuek said.

He said that THB330 billion worth of nonperforming loans currently in state banks would be transferred to the AMC, plus approximately another THB500 billion worth of assets, now managed by the Sukhumvit Asset Management Co.

The amount of bad debt in private sector banks eligible to be transferred in the AMC is THB120 billion. Somchainuek said that private sector bad loans will be transferred to the AMC on a voluntary basis.

At a meeting chaired by prime minister Thaksin Shinawatra last weekend, it was agreed that assets will be purchased by the AMC at a discount to net book value. It was also agreed that the government will issue bonds guaranteed by the state rescue fund to finance the purchase of the assets.

Chaktip Nithibhon, head of the Financial Institutions Development Fund, said he saw no problem in raising the necessary funds since "demand for FIDF bonds was guaranteed" given the success of recent FIDF bond offerings.

Chulakorn Singhakovin, chairman of the Thai Bankers Association, said the general framework of the AMC should be ready within the two-week deadline but it would take more time to lay out all the details of the plan. The committee`s next meeting is set for March 7. -0- 01/03/01 13-18G

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Thaksin under fire for share transfers
Corruption fighter with a broken sword


Surasak Tumcharoen


The political spotlight switched from policy to Prime Minister Thaksin Shinawatra`s share transfers last night as Democrats embarked on an anti-corruption crusade that hit the premier in his most sensitive area.

The Democrats attacked Mr Thaksin with sarcasm and metaphor as the debate on the government`s policy statement drew to a close.

Sathit Wongnongtoey (Dem, Trang) said Mr Thaksin would not succeed in eliminating corruption in the state sector since he himself was allegedly involved in graft.

The National Counter Corruption Commission found that he had deliberately hidden some of his wealth.

Thai Rak Thai members protested while House Speaker Uthai Pimchaichon repeatedly warned the Democrat MP to stick to policy and refrain from being personal.

Pichet Kasemthongsri (TRT) took to his feet to demand the Democrat retract his words.

Mr Sathit said the prime minister had promised to eradicate corruption and solve conflicts of interest between parties while campaigning, but had said nothing about it when the government`s policies went before the House on Monday.

"One may suspect that the prime minister has finally chosen not to fight corruption for fear that conflicts of interest, especially in the telecommunication sector, would occur," he said.

Mr Sathit predicted conflicts of interest would even prevail among partisan businessmen named advisers to members of the Thaksin cabinet.

Nor would the premier seriously promote the role of independent agencies such as the Election Commission, the Constitutional Court and the National Counter Corruption Commission.

"The prime minister earlier urged Chuan Leekpai to take tough action against a Democrat minister found guilty by the corruption commission.

"But his attitude toward the independent agency have changed since he himself was also found wanting," Mr Sathit said.

Komet Kwanmuang (Dem, Surat Thani) said Mr Thaksin wanted to keep a lid on the commission by setting up new standing House committees to examine its function.

Quelle: The Post 1.3.01

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Friday, March 2 11:47 AM SGT

Thailand Newspaper Highlights March 2, 2001
BANGKOK, March 2 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- The government should cut state spending on projects heavily dependent on imports, in order to help sustain the current account, said a member of the Monetary Policy Board yesterday.

- Foreign creditors are set to be completely excluded from the national asset management corporation, government sources said.

- An increase two weeks ago in the fuel charge used in calculating power bills lifted inflation to 1.5 per cent for the twelve months to February.

- The Thai Rak Thai-led government is approaching Supachai Pisitvanich, former permanent secretary for Finance, to become chairman of the Telephone Organisation of Thailand.

- Legal proceedings are continuing in the cases of former top central bankers and politicians alleged to have damaged the country`s economy in the failed defence of the baht in 1997, a senior state attorney said yesterday.

- Thai Airways International Plc says it will re-book the values of its 79 aircraft in US dollars in order to help improve its balance sheet.

- A group of disgruntled Aeon cardholders yesterday protested to the Commercial Registration Department that the consumer finance firm had violated the law in charging annual interest rates as high as 44 per cent.

- The Export-Import Bank of Thailand has set a lending growth target of 12 per cent for this year, despite discouraging trends.

- Yuanta Securities led the local brokerage table for February with 40.7 billion baht in transactions or 14.61 per cent of total market turnover, the Stock Exchange of Thailand said yesterday.

- We have discussed the Bank for International Settlements` core principles for sustainable payment systems and applied them to analyse the payment network of the central bank, Bahtnet. The attempt of today`s article is to apply the same principles to the new private payment system in Thailand.

- Thailand will become an increasingly important market for international food companies in the next 5-10 years as part of the globalisation of the food-service industry, said a leading Australian marketing research firm, BIS Shrapnel.

- Grammy Entertainment Plc has appointed Enterprise IG Ltd, a United Kingdom-based brand and identity consultancy, to give the company and its 30 subsidiaries a revitalised profile.

- Major Cineplex Group, the country`s second-largest cinema chain, has projected 20 per cent growth this year, riding on the back of the rising popularity of cinema attendance.

- Compared with women, Thai men get a raw deal when it comes to the range of toiletries available locally, says Shiseido Ltd of Japan.

- Starting next year, Suk Soongswang, founder of Duang Kamol Publisher Co better known as DK Bookstores, will withdraw from his role in the company, to nurture the 400-million-baht Suk Soongswang Institute in southern Thailand.

- Thailand`s first regional software park, to be built in Chiang Mai for 200 million baht, was announced yesterday, with the opening of the initial phase scheduled in October.

- The Thai wedding ceremony used to be more complex than it is today, with lots of traditional steps. Now it`s more "user friendly".

- Thailand`s e-commerce market is likely to remain less developed than those in China and South Korea for some years.

- Some 15 billion baht is available as initial finance for the planned village-fund scheme and farm-debt suspension programme, according to the Budget Bureau.

- While imported secondary whiskies Spey Royal and Blue Eagle have been locked in head-to-head competition, locally produced Black Cat whisky claims to have crept into the leading market position.

ASIA PULSE

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Friday, March 2 10:04 AM SGT

Moody`s: Thai AMC Could Be Credit Positive For Local Bks
(MORE) Dow Jones Newswires 02-03-01
0204GMT


PRESS RELEASE:Moody`s:Thai AMC May Be Positive For Bks

Following is a press release from Moody`s Investors Service



New York, March 01, 2001--Moody`s says that the proposed formation of a national asset management company may provide the basis for a longer-term recovery in the ratings of Thai banks.

At a weekend meeting of government officials and finance industry executives, chaired by the new Prime Minister, the outline structure of a government-sponsored asset management company to purchase Bt 1.2 trillion of impaired loans from Thai banks was agreed.

This amount represents nearly one-third of total loans in the banking system. The rating agency noted that this initiative had for some time been foreshadowed by the new administration prior to their success in the recent elections.

Major details of the asset purchases have yet to be agreed, and the principles under which the AMC will manage, restructure, and ultimately dispose of assets and collateral are far from clear. These will have critical importance for the future behavior patterns of borrowers in Thailand.

Moody`s has for some time believed that Thai banks were ultimately likely to receive significant government assistance in their endeavors to restructure and recapitalize.

The rating agency has, since the onset of the Asian financial crisis, noted that the amounts required by the financial system to support its liabilities far exceed the amounts that could reasonably be raised from private sources, and that public funds would therefore be needed.

An asset management company purchasing impaired assets in exchange for obligations supported in some way by the government (as proposed, these are to be guaranteed by the Financial Institutions Development Fund, an agency of the Bank of Thailand) is a frequently-used method of channeling capital into financial institutions.

However, if the amounts paid for the impaired loans are below their book value, as is implied in the initial suggestion for the Thai AMC, then the selling bank will need to obtain additional capital some other way to maintain solvency and regulatory capital ratios. Assuming that this requirement is addressed at the same time, then the ultimate outcome will be a more realistic valuation of banks` assets and a significant step towards the restoration of solvency.

The rating agency noted that the subsequent activities of the asset management company could have a significant future impact on the repayment culture of borrowers in Thailand. It comes at a time when the recent financial crisis and a revised legal framework governing debtors and creditors, and bankruptcy, has begun to fundamentally change the relationship between banks and their borrowers.

An AMC that is actively and astutely managed could not only be more successful than individual banks in extracting value, but could also be in a good position to force through desirable restructuring, deleveraging, and efficiency improvements in large parts of Thailand`s industrial base. On the other hand, an AMC burdened by government bureaucracy or political considerations could result in a relaxation of the pressure on corporate creditors, and lead to a rise in moral hazard in future credit cycles.

Which of these two options is favored will be evidenced by the AMC`s results, assuming it is transparent in its operations. If the new government, as it has indicated it plans to, further strengthens the law governing the respective rights and obligations of borrowers and lenders, in favor of the latter, this too would be a significant pointer to its priorities.

Moody`s believes that the AMC will likely have a greater impact on the smaller banks, whose impaired loans are less well reserved and who would have greater difficulty raising capital from private sources. If the AMC in itself effects a recapitalization, or if it crystallizes a capital shortage that is then resolved another way, then the impact on these banks will ultimately be positive. They will also benefit from the slow restoration of confidence in the system and in the economy.

Moody`s bank ratings have for some time incorporated the effect of further tangible government moves to assist the Thai banks, and thus the AMC announcements will in themselves have limited rating implications.

If implementation of the AMC mechanism leads to a recognition of the capital needs of the banks, and an aggressive recapitalization of the financial system results, this would improve the outlook for bank financial strength ratings. If it promotes the long-term restoration of local confidence and thus the resurgence of the Thai economy, this would also support credit ratings.

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Friday, March 2 12:37 PM SGT

Thai Bangkok Bk To Take Losses From Asset Transfer To AMC
BANGKOK (Dow Jones)--Bangkok Bank PCL (H.BBK), Thailand`s biggest lender, said Friday it is willing to take losses incurred from the transfer of nonperforming loans to the government`s central asset management company provided the discount won`t be too large.
Chatri Sophonpanich, the bank`s chairman told reporters he hoped that the discount won`t be too big to create huge losses and affect the bank`s capital.

"I don`t worry about it that much as the bank has fully provisioned (against such losses)," he said.

The bank made full loan loss provisioning in line with the central bank`s requirements.

If the central AMC can be established in line with the schedule, it will help the bank to rapidly expand its business, Chatri said.

The government committee formed to set up the central AMC met for the first time Thursday and agreed to push for launch of the AMC`s operations by June. The new agency will comprise nonperforming loans from state-owned banks and state asset management companies while only major loans of over 5 billion baht ($1=THB43.123) and a minimum of three creditors will be eligible for transfer by private commercial banks.

Bangkok Bank has said that about 40% of its nonperforming loan portfolio qualifies for transfer.

Government officials estimate that about THB120 billion worth of loans can be purchased from private sector banks.

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!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Tasco]

"They have agreed on a 20 percent discount on net book value,"
Das heisst doch der Staat kauft die NPLs zu 80% des Buchwertes ?

DAS IST DOCH MEGAPOSITIV, wieso geht der Markt nach unten, oder sitz ich auf der Leitung.

[BodyG]

@tasco,
bei den Banken haben die Foreigns sogar noch staerker nachgegeben:


NATIONAL ASSET MANAGEMENT CORPORATION


Exclusion for foreign creditors
Cholada Ingsrisawang


Foreign creditors are set to be completely excluded from the national asset management corporation, government sources said.

While officials say the scheme is intended to cover Thai banks only, no conclusion has yet been reached about whether foreign banks would be permitted to open talks about selling their own claims to the new agency.

The government is expected to summarise details on the national AMC within the next two weeks. Plans call for up to 1.2 trillion baht in bad loans, three-quarters of which will come from state banks, to be sold to the new agency in return for bonds.

Premier Thaksin Shinawatra said the programme was aimed at accelerating corporate debt restructuring by pooling loans with three or more creditors into a single entity.

The scheme would not bail out the banks, as collateral and provisions against the bad loans would also have to be transferred. State officials said foreign creditors, once the transfer was made, would negotiate with the borrower and the national AMC, which would hold the claims instead of the Thai banks.

Allowing foreign banks to participate in the scheme, while sound in principle, could be political suicide and raise protests that the government was using tax funds to bail out foreign institutions.

But some officials involved in the working committees say if foreign creditors were willing to sell their claims at sharp discounts, the benefits would come to both taxpayers and the borrowers.

Excluding foreign creditors altogether meant they could take their claims to court, slowing restructuring and the benefits of the national AMC.

Yet given that most loans made by foreign banks to local firms have generally been clean or with collateral not covering obligations, a court case would generally lead to higher losses than a settlement deal.

Officials were now examining the 4,150 borrowers eligible for the national AMC to determine how many involved foreign creditors, which could be either banks or trading partners.

One adviser to Thai Rak Thai, Vichai Punpocha, has proposed one option would be to force foreign creditors to participate in the national AMC.

But other officials say this would be an extreme solution, with huge ramifications for investor confidence and market sentiment.

Still, new laws are being considered which could force Thai banks to participate in the national AMC, to prevent those with preferred claims from hindering the restructuring case out of their own self-interest.

Assets will be bought using bonds issued by the national AMC and guaranteed by the central bank`s Financial Institutions Development Fund, a method which avoids bringing the obligations into public debt calculations.

Warrants could be issued together with the bonds, giving the national AMC an avenue to raise new capital if it incurs losses in the future.

Kittipong Urapeepatanapong, a partner at Baker & McKenzie, said there was no legal obligation for Thailand to extend the scheme to foreign creditors.

One key question to be settled is in pricing the loans and arriving at a discount figure for sales.
Quelle: The Post 2.3.01

[BodyG]

March 2 KYODO NEWS
20:53 JST U.N. urges Thailand to help foster human rights in Myanmar
BANGKOK March 2 Kyodo - The United Nations has asked for Thailand`s assistance in improving the human rights situation in Myanmar as part of efforts to end cross-border human trafficking, U.N. High Commissioner for Human Rights Mary Robinson said Friday.

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2 Mar 2001

Thai economy in danger: central bank official

THAILAND`S economy is in danger because of falling exports and weak lending, a member of the central bank`s policy-setting Monetary Board said.

"Falling exports in January signal danger ahead for the economy," Chalongphob Sussangkarn told reporters during the board`s policy meeting. Still, he hinted that the central bank may not cut rates to spur growth, saying borrowing costs are "already very low".

The central bank has left its benchmark 14-day repurchase rate at 1.5 per cent, a 30-year-low, since May to help the economy rebound from a 1997-1998 recession. Thailand posted its first monthly trade deficit in at least three years in January as exports fell and rising energy prices pushed up the import bill.

The economy may grow as little as 3 per cent this year, down from about 4 per cent last year, according to official estimates. To avoid a current account deficit this year, the Thai government should curb its own imports by scaling back projects that require a high volume of materials from abroad, Mr Chalongphob said.

Meanwhile, Thailand`s consumer prices post their biggest gain in six months in February, pulled up by rising electricity prices. The consumer price index, the broadest gauge of inflation, rose 0.5 per cent from January after gaining 0.2 per cent the previous month, the Internal Trade Department said. From a year earlier, prices rose 1.5 per cent, compared with January`s 1.3 increase.

Core inflation, the central bank`s benchmark measure, slowed last month. The core price index, which strips out energy and raw food costs, rose 0.1 per cent from January after gaining 0.2 per cent the previous month. From a year earlier, core prices rose 0.9 per cent. -- Bloomberg / Business Times 2.3.01

[BodyG]

Friday, March 2 7:17 PM SGT

Asia Markets Shares Close Broadly Lower March 2, 2001
A round-up of Asian stock markets for March 2, 2001, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
SYDNEY, March 2 Asia Pulse - Asian share markets closed broadly lower today on widespread anxiety about a possible world economic downturn, embodied by the deepening crises in Japan and weaker United States markets.

Banking and technology stocks were generally the hardest hit across the region, partly due to an uncertain Nasdaq and the unlikelihood of more rate cuts, dealers said.

Stocks in South Korea were hit by panicky sell-offs as all hopes of another interest rate cut sends US and major Asian markets sliding, dealers said.

The benchmark KOSPI index closed 18.66 points lower, or 3.2 percent at 559.44.

Simillar anxious sentiment on steep losses in New York and Japan with no clear new directions led to a 2.7 per cent drop in stock prices in the Hong Kong Exchange.

The Hang Seng index fell 394.13 points to close at 13,966.43

Intensifying concerns about the direction of the economy and the country`s political stability combined to push Tokyo share prices down 3.3 per cent today, as the government announced the highest unemployment figures since the war at 4.9 per cent and embatteld Prime Minister Yoshihiro Mori prepares for another no-confidence motion.

The Nikei-225 index ended down 419.86 points at the five and a half year low of 12,261.80.

In comparison to its major Asian neighbours, the Australian Stock Exchange fared quite well, losing just 0.4 per cent on big-cap losses resulting from the weaker US markets.

The All Ordinaries index closed 14.7 points lower at 3,280.2 and the SP/ASX200 slipped 16.7 points to 3,333.4.

Taiwan was also less affected by the drop in Japan, closing barely changed on very thin trade, dealers said.

Its benchmark weighted price index finished 0.32 points lower at 5,499.54 on weak sentiment.

In line with the dominant regional trend, Singapore share prices also failed to thrive today, losing 0.2 per cent, with losses stemmed by certain stronger blue-chips including Singapore Airlines and Singapore Press Holdings, dealers said.

The Straits Times Index closed 4.53 points down at 1,907.24.

In Thailand, bad news about the proposed National Asset Company that has been supporting the country`s finance stocks for the past few sessions led to an all over slide in share prices today.

The SET index fell 3.2 per cent, or 10.17 points, to close at 306.05 as investors sold off finance and telecom stocks. Dealers said that sentiment was hurt when the Finance Ministry decided to limit the amount of bad loans the new asset company would be allow to buy from ailing banks.

Meanwhile, in Manila, prospects were rosier, with stocks climbing 1.7 per cent, or 26.77 points to end at 1,596.97.

Market players attributed the rise essentially to a technical rebound, saying that given the state of the market, a long rally was unlikely.

Stocks in Kuala Lumpur also managed to edge into the black before the close of the week`s trade today, as a late rally overcame lacklustre early trade.

The composite index gained 1.07 points, or 0.2 percent to close at 703.07.

Finally, reason to hope that the International Monetary Fund will not withdraw its loan support from the country was one factor leading to a slight 0.5 per cent rise in Jakarta share prices.

The composite index closed up 2.097 points at 426.127, on bargain-hunting driven buying, dealers said.

FRIDAY INDICES:

* SYDNEY - All Ordinaries 3,280.2 (down 14.7 points)

* HONG KONG - Hang Seng 13,966.43 (down 394.13 points)

* TAIPEI - Weighted 5,499.54 (down 0.32 points)

* SEOUL - Composite 559.44 (down 18.66)

* TOKYO - Nikei 12,261.80 (down 419.86 points)

* MANILA - Composite 1,596.97 (up 26.77 points)

* SINGAPORE - STI index 1,907.24 (down 4.53 points)

* JAKARTA - Composite 426.127 (up 2.097 points)

* KUALA LUMPUR - KLSE index 703.07 (up 1.07 points)

* BANGKOK - SET Index 306.05 (down 10.17 points)

(C) Asia Pulse Pte Ltd.

[BodyG]

Friday, March 2 7:28 PM SGT

Thai Fin Min: Private Bks Asset Purchase Price Not Yet Set
BANGKOK (Dow Jones)--Thai Finance Ministry said Friday the purchase price of nonperforming loans to be transferred to a central bank asset management company by private commercial banks hasn`t yet been set .
Somchainuek Engtrakul, the ministry`s permanent secretary, told Dow Jones Newswires that it was unlikely the assets would be purchased at a 20% discount to net book value as reported in some media.

He was referring to international wire reports quoting Thanong Bidaya, chairman of the committee in charge setting up the AMC, that private bank assets would be bought at a 20% discount.

"A 20% discount is difficult to impose because it is too large and will affect the banks` capital," Somchainuek said. "We have to sympathize with the banks because in that case they will have to raise new capital."

He said the banks would prefer to transfer the assets at net book value and then undertake any future losses or share profits with the AMC.

The AMC committee will meet March 7 to discuss the pricing of the assets.

The government estimates that assets worth of 120 billion baht ($1=THB43.123) can be purchased from private banks. Loans worth at least THB5 million with a minimum of three creditors are eligible for transfer.

The central AMC will also consist of THB330 billion worth of nonperforming assets from state-owned banks and another THB500 billion worth of assets that are now managed by Sukhumvit Asset Management Co. It is expected to be operational around June.

[BodyG]

Weitere interessante Beitraege(Deutsch) unter:

http://www.siteboard.de/cgi-siteboard/board.pl?fnr=1890&

uebrigens werde ich wegen der nur verwirrenden Angaben hinter den WKN, keinen boersenreport mehr pasten, mal sehen , wie lang das bis zur Korrektur noch dauert.

MFG BodyG

[BodyG]

Friday, March 2 7:36 PM SGT

Thai Fin Min Official: Trade Deficit A Short-Term Problem
BANGKOK (Dow Jones)--Thai Finance Ministry Permanent Secretary Somchainuek Engtrakul said Friday the country`s trade deficit in January is a short-term problem, and that the ministry is monitoring the situation closely.
He declined to project whether the country will record a trade deficit again in February.

"I don`t want to predict on the February figure but in case it happens to be a deficit, the amount wouldn`t be large. I believe trade deficit is only a short-term problem," said Somchainuek.

Thai exports dropped 3.9% in January while imports surged 31.3%, resulting in a monthly trade deficit of $282 million - the first in 11 months, according to the Bank of Thailand data.

The trade deficit sparked concerns that it may be the start of a new trend. Such worries weighed on the Thai currency.

Somchainuek said January`s trade deficit was the result of surging imports, 80% of which were capital goods and material for producing exported goods.

[BodyG]

Thailand to report trade deficit again in Feb




BANGKOK, March 2 (The Nation) -- Thailand may slip into a trade deficit again in February after the January`s plunge into negative balance of trade for the first time in over 3 years, Finance Permanent Secretary Somchainuk Engtrakul said on Friday.

He did not give any details, but said that the country should return to trade surplus in March.

"There is nothing to worry about as trade deficit would be small in February and then balance of trade would likely to meet the projection the following month," he added.

The Bank of Thailand announced recently that the country`s exports in January this year dropped 3.9 per cent year-on-year, resulting in a trade deficit of US$282 million.

Meanwhile, Somchainuk said that a recent weakness of the baht would be temporary. He attributed the baht`s recent fall to fears over sustained trade deficit.

He made the comments ass the Thai currency fell to a low of Bt43.33-Bt43.37 against the greenback in the afternoon trade today, the lowest level in 6 weeks.

[BodyG]

Stocks slide on AMC doubts


STOCKS fell sharply yesterday on concerted selling of finance and banking shares by foreign and local investors, who were concerned that banks will not benefit as much as expected from the buyout of bad loans by the national asset-management company (AMC).

The Stock Exchange of Thailand (SET) closed down 10.17 points, or 3.2 per cent, at 306.05 on trading volume of Bt8 billion. The benchmark index moved in negative territory the whole day.

The finance sector took the hardest blow, falling 7.2 per cent. The banking sector dropped 3.7 per cent.

"The stock market is surrounded by negative news, and it was the last business day. Investors, therefore, locked in cash to mitigate risk, fearing additional bad news over the weekend," a local analyst said.

The weak regional market also dampened sentiment, analysts said.

Tokyo stocks lurched to a new 15-year low yesterday as crumbling high-tech shares tore 3 per cent off the Nikkei average, hit hard by a profit warning from Oracle Corp, the world`s second-largest software company.

Other stock markets, such as Korea`s Kospi, Taiwan`s Taiex and Singapore`s Straits Times Index, were also down.

On Thursday night, the team responsible for working out final details of the unloading of bad loans from commercial banks` balance sheets resolved to buy just Bt120 billion worth of bad debts from private banks.

Last weekend, Prime Minister Thaksin Shinawatra said the state-owned Central Asset Management Company (CAMC) would buy all Bt300 billion in problem loans involving three debtors from the banks.

"Scepticism over whether the state-owned body will be able to breathe new life into the banking system is growing. Investors who bought finance and bank stocks a few days ago are selling the shares to lock in cash," the analyst said.

"There is less potentially going into the AMC, and the banks now have to pass over all their provisions. This means benefits for the banks are not so large," Phillip Adkins, head of research at Seamico Securities Plc, told Reuters.

January`s trade deficit amounted to US$282 million (Bt12.12 billion), further undermining foreign investors` confidence.

Somchainuk Engtrakul, permanent secretary for finance, yesterday warned that the country`s trade balance was likely to remain in the red in February.

The SET`s skid was also partly due to the slide in regional bourses, which followed a remark from US Federal Reserve chairman Alan Greenspan that the Fed would cut interest rates further, said ABN Amro Asia Securities Trading Plc vice president Phaiboon Ratchniyom.

"Japan`s Nikkei index, which marked a new 15-year low yesterday, exacerbated the Thai market`s problems," he said.


BY ORANAN PAWEEWUN

The Nation 3.3.01

[BodyG]

Auszug aus der Post vom 3.3.01

Banking shares led decliners, falling 3.77% for the day, while finance shares were off 7.22% and communications down 3.96%. Namchai Techaratanawiroj, an analyst at Phillip Securities (Thailand), said the markets were disappointed by news that the Central Asset Management Corporation would acquire only 120-billion-baht-worth of dud loans from private banks, down from earlier estimates of 300 billion.

The state is likely to offer no loss-sharing option for private banks, which would then have to shoulder all of the potential future losses if restructuring efforts fail.

"Commercial banks will feel some uncertainty about the Central AMC`s ability to deal with their non-performing loans, so some of them may not want to participate in this scheme," Mr Namchai said.

The government had touted its plans to set up a central restructuring agency as a means of expediting corporate and industrial restructuring.

Non-performing loans in the banking sector at the end of December totalled 823.27 billion baht, or 17.71% of total outstanding loans. Of this, some 477 billion baht in bad loans were held by private banks.

Mr Namchai said investor disappointment over the scope of the Central AMC had weakened market sentiment. He forecast that the SET index would see support at 290-300 points, with resistance at 315.

[BodyG]

3 Mar 2001 The Business Times

Thaksin govt drops banking bombshell
It says banks must bear all losses if bad loans bought by AMC are not recovered

By Harish Mehta


THAILAND`S new Thaksin government yesterday dropped a bombshell, saying that a proposed national Asset Management Corporation (AMC) would buy 1.2 trillion baht (S$48.4 billion) in bad loans from commercial banks only on condition that the banks bear all losses if the loans were not recovered.

The announcement deeply disappointed bankers and analysts who were expecting a bailout, sending shockwaves through the market.

The benchmark Stock Exchange of Thailand index fell more than 3 per cent to 306.05.

The index of bank stocks plunged almost 4 per cent, as Bangkok Bank`s share price lost 4.3 per cent, and Thai Farmers closed 2.11 per cent lower.

"It`s disappointing, as it was supposed to be a bailout of the banks," said James Moss, banking analyst at HSBC Securities (Asia) Ltd, adding that the banks were expecting the AMC to share losses and gains equally.

"The whole idea of an AMC was to limit the losses of banks by carving loans out without any recourse to the banks. But if you say to the banks, `we are going to carve out the loans, and then in the future, by the way, you are liable for all the losses`, there`s no change in their financial health, as they`re still liable for the downside risk," he said.

"This defeats the advantages to the banks of a national AMC," he said in reaction to the condition, proposed by a 12-member government committee expected to unveil details of the plan next Wednesday.

Earlier, the heads of the two biggest banks, Bangkok Bank and Thai Farmers Bank, and the small-sized Bank of Asia, said they would be willing to join the AMC scheme.

"With such new terms, they will be disappointed," said a Thai banker.

But the banks may not have a choice if the government makes the AMC scheme compulsory.

"If joining the AMC is compulsory, and there`s a loss-sharing deal, it`s fair. But if it`s compulsory, and the banks have to take the losses, then it`s not," Mr Moss said.

There were other question marks hanging over the AMC, which could damage banking relationships. For instance, what would happen to the one trillion baht of corporate restructuring being handled by the Central Bankruptcy Court and the Corporate Debt Restructuring Committee under the central bank.

"Many of these companies are recovering, and if some of them are transferred to the AMC, then the bank loses that relationship with the customer. Clearly, it`s not a good situation," Mr Moss said.

"Banking`s all about relationships, and the last thing you want to be doing is severing relationships," he added.

Analysts expect that joining the AMC would be made compulsory because if it isn`t, then the banks can pick and choose which loans they want to transfer.

"They would certainly want to transfer only the garbage loans that are absolutely irrecoverable," commented the Thai banker.

Yesterday, Moody`s Investors Service appeared to have jumped the gun when it cautiously welcomed the creation of the AMC as a step that may lead to a recovery of Thai banks` ratings from their current junk bond status.

The outlook for the banks` financial strength ratings would improve if the implementation of the AMC led to a recognition of the capital needs of the banks, and an aggressive recapitalisation of the financial system resulted from it, the US rating agency said of the Thai banks.

"If it promotes the long-term restoration of local confidence, and thus the resurgence of the Thai economy, this would also support credit ratings," it added.

Moody`s gave the previous Chuan Leekpai government a shot in the arm last year by raising the country`s sovereign rating to investment grade, but the debt-laden banks remained in the non-investment, speculative grade.

It cautioned that "an AMC burdened by government bureaucracy or political considerations could result in a relaxation of the pressure on corporate creditors, and lead to a rise in moral hazard in future credit cycles".

[BodyG]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[BodyG]

Saturday, March 3 3:49 PM SGT

Myanmar Blames Thai Army For Border Tensions
YANGON, Myanmar (AP)--Myanmar has "friendly" relations with the new Thai government despite recent fighting at the border between the two countries, a senior Myanmar military officer said Saturday.
But tensions won`t ease unless the Thai army that oversees the country`s northern frontier stops giving military help to anti-government Shan rebels, charged Maj. Gen. Kyaw Win, deputy director of the defense services intelligence.

"As long as the Third Army does not change its attitude, the improvement of the border situation will be slow," Kyaw Win told a press conference in Yangon.

Last month, Myanmar and Thai troops clashed when fighting between Myanmar and ethnic Shan rebels spilled into Thailand. At least five civilians were killed on either side of the border, driving relations to their lowest point in several years. Border checkpoints in the region have been closed.

Thailand launched a heavy artillery attack to drive out Myanmar forces which it said intruded into Thailand to attack the rebels. Myanmar accused Thailand of helping the rebels.

Kyaw Win intimated that bilateral relations would be better under the new government of Prime Minister Thaksin Shinawatra, whose Defense Minister Chavalit Yongchaiyudh, a former prime minister, is known to have close ties with Myanmar`s ruling generals.

Kyaw Win claimed the chain of command in the Thai army of the previous Thai government was weak.

Thailand`s previous premier Chuan Leekpai - replaced by Thaksin last month - didn`t visit Myanmar during three years in office. His government was relatively outspoken about the political conflicts in Myanmar.

By contrast, Kyaw Win said Myanmar had "friendly relations" with Thaksin and noted that Chavalit had been first Thai general to visit Myanmar after the military junta took the power 12 years ago.

The State Peace and Development Council assumed control in 1988 after a bloody military crackdown against popular protests for democracy in which thousands of civilians were gunned down, drawing international condemnation and sanctions.

Kyaw Win said Myanmar would "continue to work for peace on the Thai-Myanmar border" and said a Thai-Myanmar regional border committee would meet to resolve the dispute, but didn`t say when.

Lt. Col. San Pwint, a military intelligence officer, said the Shan rebels had launched a series of attacks this week on a Myanmar border outpost at Lwe Taw Kham, 550 kilometers northeast of Yangon, with supporting fire from Thailand.

"The attack was well-planned and aided by the Thai army on the border," he said, adding that attacks had been covered by Thai television networks.

Twenty-three Myanmar troops including one militia were killed and 62 soldiers wounded between Feb. 5 and Friday during the fighting along Myanmar-Thai border with the Shan rebels, San Pwint said.

[BodyG]

Saturday, March 3 10:08 PM SGT

Thai Officials Don`t Rule Out Bomb In PM Jet Explosion
BANGKOK (AP)--An explosion and fire gutted a jetliner minutes before Thailand`s prime minister was to board on Saturday, killing a crew member and injuring seven. Officials said a bombing could not be ruled out.
The blast came 35 minutes before the plane was to depart, when Prime Minister Thaksin Shinawatra was on his way to the domestic terminal of Bangkok International Airport in a motorcade.

"I hope it was an accident but for now we will set up an investigation," said Thaksin, a telecommunications tycoon who took office last month after his Thai Rak Thai Party easily won a Jan. 6 election. "The security has been increased, and I cannot go anywhere I want."

Although political violence is common in Thailand, especially during elections, senior politicians are rarely targeted. Thaksin is not known to face any overt threats to his life.

"At this moment we will investigate all factors," Thai Airways President Pisit Kulsalasaiwanond said. "We do not rule out any possible cause, but we don`t want to speculate."

No passengers or pilots were aboard Thai Airways Flight TG1144 to the northern resort town of Chiang Mai. Besides Thaksin, the plane was scheduled to carry 148 passengers on the 70-minute flight.

Seven crew and ground staff were injured and the body of a cabin crew member was found inside the charred wreckage of the Boeing 737-400, said Lt. Gen. Jongrak Juthanont, the deputy national police chief.

There was "a loud noise that sounded like an explosion" before the fire started, Pisit said.

The explosion triggered a massive fire that took about an hour to control. The aircraft was destroyed, and its charred shell broke in the middle with the nose collapsing on the ground. Only its tail remained intact.

Thaksin`s bodyguards, who were at the terminal, heard "a big bang" and saw the plane go up in flames, Thaksin spokesman Suranan Vejjajiva said.

Pisin said all bags had been loaded on the plane after being X-rayed. The X-ray machine at the domestic terminal had been out of operation early Saturday, but it was fixed before the luggage was loaded, he said.

The plane`s captain, Chusak Pachaiwuth, said it was impossible for the plane to explode from an internal malfunction if the engines had not started.

He said workers had just finished refueling the plane when the blast happened. The fuel tanks, in the plane`s wings, were intact, he said, indicating that burning fuel was not the cause of the explosion.

Thaksin, who has a scheduled meeting Sunday in Chiang Mai, flew on a military plane instead.

Aviation authorities cut power at the terminal and diverted all incoming flights to an airport in nearby Chonburi province. Normal operations resumed three hours later. International flights were not affected.

It was the worst tragedy for the national airlines since the Dec. 11, 1998 crash of an Airbus A310-200 that killed 101 people. The domestic flight from Bangkok to Surat Thani, 330 miles south, went down in a swamp while trying to land.

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Sabotage suspected in THAI aircraft blast


INVESTIGATORS are pursuing all leads, including possible sabotage, to determine how and why a Thai Airways Boeing 737 destined for Chiang Mai burst into flames minutes before Prime Minister Thaksin Shinawatra was scheduled to board it yesterday at Don Muang Airport.

One cabin crew member died and seven people were injured in the incident, which happened 35 minutes before the scheduled departure.

A source in Thai Airways` engineering department said the blast occurred under seats 11A and B, where Thaksin and his son, Phanthongthae, were scheduled to sit.

The explosion happened a few days after THAI installed a new X-ray system at five international airports, including Don Muang.

Airline officials said that one of the X-ray machines used to screen luggage was not functioning in the morning but was back to normal before the passengers began to check in.

Within minutes of the incident, speculation was widespread that the explosion was an assassination attempt against Thaksin.

Panlop Pinmanee, a security adviser to the prime minister, said he had received a preliminary police report claiming that explosives were on board.

"The Crime Suppression Division report indicated clearly that the incident was an act of sabotage because it was caused by an explosive device," he said.

Panlop stopped short of declaring whether he believed Thaksin was the target.

Thaksin, who was on his way to the airport at the time of explosion, said he was quite suspicious about the cause of the explosion.

"It is natural to be suspicious as there is no such precedent for (this to happen on) a flight about to be boarded by a prime minister," he said.

Thaksin and his son were diverted to an Air Force aircraft to complete their trip to the northern city.

The prime minister was scheduled to preside over today`s opening of a Chiang Mai shopping plaza owned by his sister and MP Yaowapha Wongsawat.

He is scheduled to return to Bangkok by air in the afternoon.

A police source speculated that if there is evidence that sabotage caused the explosion, it may have something to do with Thaksin`s pledge to crack down on drugs.

The fight against the illicit narcotics trade is at the top of Thaksin`s national agenda.

The premier is scheduled to hold a crucial meeting in Chiang Rai next weekend with all concerned government agencies to set a strategy to wipe out drug trafficking.

Pol Lt Gen Wassna Perm-larp, secretary general of the National Anti-Laundering Commission, said in a radio interview that he believed the government`s harsher policy on drugs was behind the explosion.

National police chief Pol Gen Pornsak Durongkhawibul voiced caution, however, that the investigation report should be completed before any conclusions are reached.

Air Force Chief of Staff ACM Kongsak Wantana has been appointed to head the safety inquiry to establish the cause of the incident.

The Boeing aircraft to be used for the flight, TG114, was parked at Gate 62 of the domestic terminal as the cabin crew was making its pre-boarding checks.

At 2.40pm a loud explosion was heard from under the fuselage and the aircraft was quickly engulfed in flames, witnesses said.

While seven of the cabin crew members were able to escape to safety, steward Kamphol Meelarp was overcome by the flames and died inside the aircraft.

Sayant Khankaew, a ground staff member for Thai Airways, said that he and three colleagues were only a few metres from the aircraft when the explosion occurred.

At the time, about half the luggage had been loaded onto the plane, he said.

Five of the seven cabin crew members suffered minor injuries and were released from Vibhavadi Hospital following a physical examination and dressing, Dr Chaisit Pukwiwat said.

They are ML Jirayu Disakul, Piraporn Samitivej, Mind Minthakhin, Wichian Somwong, and Sayan Khankaew.

Two stewards, Phadungsak Rattanasirisangchote and Ekthana Chantorn, suffered cuts and bruises and were admitted for overnight observation.

Sunant Chantorn, Ekthana`s father, who rushed to visit his son at the hospital, said his son would not have been at the airport had he not switched days off with a colleague.

"My son said he saw smoke before the explosion. Luckily, he was safe because he was at the tail of the aircraft," Sunant said.

"He tried to open an emergency lock and shouted for other crew to jump off."

Before the explosion, the aircraft was ready for boarding having completed its refuelling, Deputy Transport and Communications Minister Pracha Maleenond said.

THAI president Pisit Kuslasaiyanont insisted that all cargo and baggage had passed through a bomb detector before loading.

Pisit said the aircraft and engine had passed safety and security checks before being brought to the departure gate.

He pledged to take full responsibility and pay compensation for the cabin crew. The aircraft was insured for US$50 million (Bt2.16 billion), he said.

Although fire fighters arrived less than two minutes after the explosion, they needed almost an hour to put out the fire that destroyed the entire aircraft leaving only the tail end with its THAI logo intact.

Airport officials said the refuelling was completed long before the explosion, denying speculation about a possible accident resulting from the mishandling of the fuel tank.

Intelligence sources claimed that ahead of the explosion, there were no reports of possible assassination attempts being planned against the prime minister.

Another source familiar with security affairs pointed out that explosive devices typically used for assassination attempts have timers that trigger the fuse.

Air safety officials played down fuel leaks or mechanical malfunction as a possible cause, noting that evidence tended to point to explosives as the cause.

Speaking again after arriving in Chiang Mai, Thaksin said he hoped the explosion was an accident rather than sabotage.

"I was not shocked by the incident. And I saw the aircraft being engulfed by fire," he said.

Deputy Police Commissioner General Pol Gen Sant Sarutanon said the forensic police would conduct a chemical test today to determine whether the explosion was caused by a bomb.

PM`s Office Minister Thammarak Isarangkul na Ayutthaya said he believed the incident was an accident.

The explosion occurred before boarding so it was unlikely an attempt against Thaksin`s life, he said.

Charnchai Surasanan, a THAI official, said the aircraft had not unloaded cargo from the previous flight from Phitsanulok to Bangkok.

The aircraft was flown from Chiang Mai with a Phitsanulok stopover on the first leg of its Chiang Mai-Bangkok loop.

The Nation 4.3.01

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Sabotage theory not completely dismissed

Filed at 08 : 40 pm (THLD time)


Nation News Agency - The THAI airplane fire today could have resulted from a sabotage attempt, said Gen Pallop Pinmanee, an adviser to Prime Minister Thaksin Shinawatra on national security.

He quoted a report from Crime Suppression Division police as speculating that the incident could had been intended to cause casualties. He did not give further details.

An intelligence source said there had been reports over the sabotage theory "on purpose to harm Thaksin", who had a scheduled flight to Chiang Mai, and was on his way to Don Muang airport to board the plane - Flight TG114.

The source also noted that if the loud noise heard by many people were an explsion, it were so severe that it ripped off the fuselage although the plane`s engine was not on. "It`s almost impossible that, based on these factors, the fire was merely an accident.

Meanwhile, Suranand Vejjajiva, spokesman for Thaksin`s Thai Rak Thai party, dismissed the sabotage theory. "Whatever the cause is, I am confident that the fire did not result from sabotage".

He addded that Thaksin was on private business trip and accompanied by his son Panthongthae and only two aides.

PM`s Office Minister Thammarak Israngkun na Ayutthaya, who oversees the government`s intelligence service and national security policies, also shrugged off the sabotage theory, saying that there had not been any intelligence reports indicating about it before Thaksin`s flight to Chiang Mai.

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Thaksin`s wish: May it be just accident

Filed at 09 : 09 pm (THLD time)


The Nation - Speaking from Chiang Mai where he landed from a different flight that replaced the fatal TG114 he was earlier scheduled to board, Prime Minister Thaksin Shinawatra said he wished the plane fire at Don Muang airport was merely an accident.

However, he said he could not help asking himself about the timing of the incident that it coincided with his scheduled flight just half an hour before he was to board the plane.

Thaksin said he learned of the fire on his way to the airport and did not panick when he arrived there. "I even watched the plane under the blaze until the last minute (before he boarded another plane to Chiang Mai)," he said.

The plane fire, which killed one crew and injured seven others, has prompted the Air Force to provide a special flight for him when he is to fly back to Bangkok on Sunday. Local police in Chiang Mai have also heightened security measures for him.

A senior police officer said he was considering assigning a number plain-cloth officers to provide extra protection for Thaksin, in addition to only lead vehicles and a special motorcade, a regular treat when he arrives his home provice as ususal.

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Publishing stocks a good bet: analysts


ANALYSTS remain upbeat about publishing stocks this year, despite key indicators suggesting an economic slump.

"Advertising sales this year show a tendency toward steady growth and this will be a boon to all publishers because advertising is their main source of income," said an analyst at Capital Nomura Securities Plc.

Despite growing concern of an economic slowdown, which would aggravate already weakened consumption, advertising sales will not be greatly harmed, he said, adding that advertising is still a necessary marketing tool.

The cost of newsprint, which skyrocketed last year, was expected to remain relatively stable this year, he said - meaning that newspapers` balance sheets should show some improvement.

"If no special items are included this year, I predict that they will post better financial results," said the analyst, who declined to be named.

Four of six listed newspaper publishers enjoyed improved financial performance results last year, according to filings with the Stock Exchange of Thailand (SET).

Those were Nation Multimedia Group Plc, Post Publishing Plc, Matichon Plc and Manager Media Group Plc.

Siam Sport Syndicate Plc and Tong Hua Communication Plc recorded worse performances.

The Nation Group, publisher of The Nation, swung back to a profit of Bt12.1 million, compared a Bt378.6-million loss a year earlier.

The group said it would have posted a net operating profit of Bt179.2 million, if not for unusual expenses: the provision of Bt79.6 million for an investment impairment and the Bt87.4 million in start-up expenses for its new 24-hour news channel and Internet projects.

The improved performance was due largely to a hefty increase in advertising revenue, it said.

"We are positive on Nation`s operating results, which were better than expected. We believe its good earnings momentum should be sustained in 2001," said a report from Merrill Lynch Phatra Securities Co. "We reiterate our intermediate and long-term `accumulate` ratings on Nation."

The report said the Nation Group`s advertising revenue would increase about 50 per cent over last year. The group`s fourth-quarter sales increased 23 per cent over the previous year and 5 per cent over the previous quarter.

Revenue was partly boosted by advertising income from its joint production of programmes with iTV from November to January, a period that included the general election.

Although the Nation Group`s gross margin fell from 51.7 per cent in 1999 to 50.5 per cent last year, it was higher than Merrill Lynch Phatra`s estimate of 48.1 per cent.

Meanwhile, Post Publishing`s net profit last year totalled Bt150 million, compared to Bt104 million the previous year. In a filing with the SET, the company attributed the higher profitability to increased advertising revenue for its Bangkok Post newspaper.

Siam Sport Syndicate last year showed the worst performance among its industry peers, recording a net loss of Bt108.8 million, compared to an Bt87-million loss the previous year.

Tong Hua Communication last year suffered a loss of Bt105,000, compared with a net profit of Bt4.6 million in 1999. The country`s leading Chinese-language newspaper publisher attributed the poor result to a Bt153-million decline in gains from the sale of its assets, and a Bt28-million decline in interest income.


BY ORANAN PAWEEWUN

The Nation 4.3.01

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Media told: Keep snoozing MPs off TV
BANGKOK - The Thai Parliament has taken off the air, television shots of MPs snoozing during parliamentary sessions, saying the public might get the wrong impression of their normally hard working representatives.

Parliament president Uthai Pimchaichon on Wednesday sought the cooperation of the electronic media to avoid showing close-ups of MPs nodding off at a convened session of Parliament.

He said broadcasting such depictions of MPs napping on the job was unfair to the MPs and detrimental to the reputation of the institution.

`Parliament suffers a damaged image because of that,` he said.

Some MPs might be so exhausted after a long trip from the countryside they inadvertently fall asleep, he explained.

While seated on the presiding bench in Parliament on Wednesday, Mr Uthai also turned to journalists in the press corner of the Parliament`s chamber and asked them not to take any more pictures of House members dozing off, the Bangkok Post reported.

--The Nation/Asia News Network 4.3.01

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Congretulations to Michael,

You are the greatest, Daimler with his drivers bite the dust, for today!

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!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

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Monday, March 5 3:33 PM SGT

Thailand`s Land & Houses Sees 30% Sales Growth In 2001
BANGKOK (Dow Jones)--Thai housing developer Land & Houses PCL (H.LDH) said Monday it expects sales revenue to grow by 30% this year from 6.56 billion baht ($1=THB43.337) in 2000.
Land & Houses President Anant Asavaphokin told a news conference that his company plans to invest around THB1 billion this year in a land bank for future development.

"I believe our sales will grow by 30% this year as (single detached) housing supply in the market is drying up while demand is already there," said Anant.

A low interest rate environment and financial institutions` campaigns to boost housing loans have also been favorable to the company, he said.

Supply of new residential units has been largely frozen over the past five years due to the economic crisis and massive oversupply, he said.

Anant also expects his company`s net profit to increase from THB216.3 million in 2000, but he declined to provide any projection.

Adisorn Thananun-narapool, executive vice president, said the company`s gross profit margin stood at 29% in 2000, up from 20.5% a year earlier, and the margin is expected to rise slightly this year.

He projected that Land and Houses` retained loss of THB3.99 billion will be erased within the next three years if the company is able to achieve its sales growth and gross profit margin targets.

The company also plans to reduce its debt-to-equity ratio to less than 1:1 by the end of this year from 1.2:1 at present, he said.

Shares of Land & Houses closed the morning session Monday on the Stock Exchange of Thailand down 6% at THB19.50. The property sector index was down 3.5%, and the SET Index was off 2.5% at 298.42 points.
SET endet bei 300.24 = -1.90%
LH 19.50 = -6.02%
LH-F 20.50 = -2.38%

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!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

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Tuesday, March 6 2:27 PM SGT

Thailand Newspaper Highlights March 6, 2001
BANGKOK, March 6 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- Saturday`s bombing of a Thai Airways International jetliner at Don Muang airport could affect the national carrier`s plan to sell more shares to local investors, president Bhisit Kuslasayanon said yesterday.

- Thai stocks slipped below 300 points on the prime index in morning trade yesterday, before rallying in the afternoon to end down 1.9 per cent on negative news at home and abroad.

- China may locate a pulp and paper project worth 38 billion baht in Malaysia because the cost of compensating villagers occupying proposed sites in Thailand has made the land too expensive.

- The February trade account has rebounded to post a slight surplus, according to Finance Ministry officials, who called it welcome news following January`s surprise deficit figure, the first in 30 months.

- The fiscal 2002 budget, which will start in October, will show a deficit of 2-2.5 per cent of gross domestic product, on par with this year`s budget, said Chaturon Chaisaeng, a PM`s Office minister.

- Non-performing loans in the banking system increased by 1.6 billion baht in January due to declining progress in corporate debt restructuring, the Bank of Thailand said yesterday.

- No final decision on pricing of assets transferred to the Central Asset Management Corp has been made, according to Chakthip Nithibon, an assistant governor of the Bank of Thailand.

- Three foreign financial institutions have filed bankruptcy suits against firms owned by the Tantipipatpong family.

- Sanyo Universal Electric reported an audited consolidated net loss of 671.1m bt for the year ended Dec 31, vs net loss of 1.1bn bt in 1999.

- Thai Petrochemical Industry Plc posted a consolidated net loss last year of 39.28 billion baht, compared with a loss of 8.55 billion in the previous year.

- The state-run Telephone Organisation of Thailand is due to become a registered company in May under the latest agreement with the Finance Ministry.

- The rapid growth of the mobile-phone market in Thailand has reassured Telekom Malaysia of the value of its strategic investment in Digital Phone Co, the country`s third-largest mobile phone operator.

- A leading exporter of Thai crocodile meat says the country`s commercial crocodile industry has bright prospects for exports this year to Europe, where outbreaks of mad cow and foot-and-mouth diseases have hurt demand for beef and pork.

- Listed developer Land & Houses Plc expects to increase revenue from house ownership transfers by 30 per cent to 8.5 billion baht this year on the back of the overall rebound in the property market.

- Burned by the recession, Thai Yamaha Group is poised to turn around its business over the next three years.

- All taxes on automobiles should be revised to encourage local investment, while the requirement for assemblers to use Thai-made parts should be reinstated to help local manufacturers, according to an industry executive.

- An initial five billion baht will be earmarked for infrastructure development at U-tapao naval airbase in Chon Buri to revive the global transpark project, Pichet Sathirachawal, the deputy industry minister, said yesterday.

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Tuesday, March 6 2:00 PM SGT

Asia Economy Watch: Thai Numbers Raise Deficit Worries
By James T. Areddy
A Dow Jones Newswires Column


HONG KONG (Dow Jones)--Trade deficits were a feature of the booming 1990s in Asia. Now, anxiety has emerged that trade gaps could return - because the boom has ended.

No one doubts Asian exports will slow this year. Figures show overseas shipments from most countries around the region have already begun to wither. In January, for example, Japan posted a trade deficit for the first time in four years due in part to slumping exports.

But markets seized on numbers from Thailand last week that showed a slip into a trade deficit as a particularly worrisome leading indicator.

The balance had almost uniformly been in Thailand`s favor following the crisis that began in 1997, mostly due to slumping demand for imports. The revival of import demand there could suggest broadening domestic business activity, but that isn`t the way most investors see it.

Markets worried the government might be forced into firefighting to protect a hard-fought trade surplus by squelching demand for imports.

Like in other Asian nations, the 1997 crisis caused Thailand`s trade balance to swing dramatically, from a record US$16.3 billion deficit in 1996 all the way to a surplus of US$12.1 billion two years later. The trend was considered one of the positive effects of the crisis, since it helped stabilize the country`s currency, lift foreign exchange reserves and underpin the credit profile for corporate Thailand.

But January`s US$282 million trade shortfall highlighted more than the vulnerability of Asian exporters to the global economic slowdown.

Exports slipped, as expected, by 3.9% in the period from the year earlier. But what worried markets - the baht dropped - was that importers remained giddy, buying 31% more in U.S. dollar terms that month than in the year before, although the baht-denominated value of imports fell sharply.

Imports, though depressed in nominal terms, may well take off due to pent-up demand for foreign-made products. It`s doubtful that exports will keep pace, leading to a deterioration in the nation`s external balance of payments.

Government officials in Bangkok were clearly not comfortable with the latest trade report. No less than Prime Minister Thaksin Shinawatra said Monday, "we must avoid a trade deficit at a time (when) the world economy is slowing down. We can`t let that happen."

Thaksin - whose political party`s name translates as Thai Love Thai - said his government will promote a "buy local" policy to the extent possible, so as not to unwind the accounts.

Probably Anomaly


But after some knee jerk concern last week, economists have decided the January data were mostly an anomaly, and not a sign of a new trend in Thailand, much less the region. Deficits are something to look for "further down the track," possibly next year, according to David Simmonds, an economist at Citigroup Inc.`s Salomon Smith Barney unit.

He said import growth will eventually recede, just as export activity has, which will allow Thailand and most other Asian economies to remain in surplus positions during 2001.

Deficits, Simmonds added, may eventually return, but not until cyclical growth has resumed on an "up-leg," and governments get comfortable once again seeing imports rise.

And, indeed, the Thai government itself said it expects to post a surplus for February when final figures are released around month end.

"We remain unconcerned about the trade deficit as it should be viewed as temporary," according to a research note from UBS Warburg economists that cited a number of one-off impacts in Thailand, including the import of an airplane, that skewed data.

While UBS agrees that the external environment for exports has weakened sharply and quickly, imports will eventually fall in lockstep, the firm predicted. "We feel that the speed of the slowdown meant that companies have not had time to adjust downward their demand for imported raw materials. This process is expected to start in February," the report said.

Economists said it would be more positive if the import rise reflected much better domestic demand, but that isn`t a central position, and they expect the government to fight it by letting the currency exchange rate fall back. In other words, rather than allow the baht to fall and stimulate exports, they will be pushing the currency lower to drive down the affordability of imported luxury goods and other such products.

Either way, import demand is a trend to be concerned about, unless foreign products are being used as feedstock for export-oriented manufacturing. "The need to maintain a trade surplus means Thailand is stuck in a low-growth trajectory unless it can pare its reliance on imports," compared with exports, according to a report from Nomura International (HK) Ltd. economist Paul Alapat.


-0- 06/03/01 05-59G

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Preliminary figures point to $200m trade surplus


THAILAND returned to a trade surplus of US$200 million (Bt8.67 billion) in February from a deficit in January, according to preliminary figures released by the Finance Ministry yesterday.

The announcement ended fears that the country would suffer a trade deficit for a second month running, while the narrower current account surplus had raised concerns of a possible deficit by the end of the year.

Finance Ministry Permanent Secretary Somchainuk Engtrakul said that the country`s imports came to $4.8 billion, while exports totalled $5 billion last month. He said that more accurate data would be available after tomorrow.

Thailand posted a trade deficit of $282 million in January, versus a $413 million surplus in December. The January figure represented the first deficit in almost three years.

Prime Minister Thaksin Shinawatra said yesterday that "careless imports" would damage the country`s trade balance and weaken the baht.

"If we continue to import carelessly, believing we are already rich, the baht cannot stay at this level and we will lose the confidence of investors.

"We must avoid a trade deficit at a time the world economy is slowing down. We can`t let that happen," Thaksin told reporters after a policy briefing with senior bureaucrats from government ministries.

Thaksin said the government would make it a priority to reduce imports where local substitutes could be found, but it would continue to import goods where no local substitutes were available. He said efforts to curtail imports would also be considered in the preparation of the next fiscal budget. The fiscal year starts in October.

Earlier yesterday, Thaksin said an explosion and fire that destroyed a Thai Airways Boeing 737 he was about to board over the weekend would not weaken the baht.

By the end of trading yesterday the baht was trading at 43.48 to the dollar, versus around 43.30 on Friday evening. Finance Minister Somkid Chatusripitak said the currency`s recent weakness was caused by poor economic figures, especially January`s trade deficit.

Thaksin and Somkid yesterday told the Budget Bureau to cut or scale down government projects that would lead to high imports. Import growth in January was 31 per cent.

There were also concerns over the value of imports brought into the country by Thais returning from overseas trips. Those who brought in goods with a value in excess of Bt5,000 have to pay import tax, an official from the Customs Department said. Returning Thais are fond of buying expensive pens, cameras and glasses, he said.

The official also said that the Customs Department might propose to Somkid that his office raise import taxes on luxury goods to the maximum level as permitted by trade agreements with the World Trade Organisation. Currently, the import tariff rate on luxury goods, such as crystal, perfume and cameras, is on average 30 per cent.

The official also suggested that the government should review tax privileges given to both multinational and large local firms by the Board of Investment (BOI) and the Finance Ministry. Currently non-dutiable goods account for 70 per cent of imported goods. An adjustment made on tax privileges would raise revenue for the government and reduce imports, the official said. The Customs Department has fallen short of its targeted revenue by about Bt1 billion each month this fiscal year, the official said.

The review is expected to be opposed by the BOI, whose objectives are to encourage investment. The official, however, argued that tax privileges were becoming irrelevant in today`s business environment.

Chaturon Chaisaeng, minister attached to PM`s Office, insisted that the budget deficit for the 2001/2002 fiscal year would be limited at 2.-2.5 per cent of gross domestic product (GDP) or around Bt260 billion.

"However, inclusive of expenditures among state enterprises, the budget deficit would rise to 3.5-4 per cent of GDP," he admitted.

His comment comes a few days after Somkid insisted that the overall budget deficit for the next fiscal year, to start on October 1 would not exceed 5 per cent of GDP.

"At the (deficit) level, the state would be able to implement all nine urgent economic measures," Chaturon said.

He added that the economic figures for 2000 from the National Economic and Social Development Board, which are due to be revealed on March 18, should also provide some information on the areas from where the state reaped revenue or spent it.

The Budget Bureau would then have to thoroughly study the details to find out if the state needs to amend its revenue/expenditure targets in the next fiscal year to fit the particular investment climate, Chaturon said.

BY WICHIT CHAITRONG

The Nation, Agencies 6.3.01

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DIGEST: SET chairman, Somkid to discuss stock market developments


FINANCE Minister Somkid Jutusripitak is set to meet Stock Exchange of Thailand chairman Amaret Sila-on on Thursday to discuss stock market development plans.

Corporate income tax reduction from 30 per cent to 25 per cent, a relaxation of the listing rules and mutual funds are expected to be some of the major topics raised. The loosening of the listing criteria is believed to help pave the way for the privatisation of state-enterprises, which is one of the current government`s policies.

As for the policy, Thai Rak Thai has promised to expedite privatisation to increase the Thai bourse`s market capitalisation to Bt3 trillion from around a current Bt1.3 trillion.

The Telephone Organisation of Thailand and the Communication Authority of Thailand are targeted to be the first state-enterprises to be privatised, and the process is set to begin in May.

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Minister downplays bank merger

THE finance minister has downplayed the worries of Bangkok Metropolitan Bank and Siam City Bank employees, saying that both institutions would not merge with each other in the near future.

"The merger is not the solution for both banks at this time because it would create an adverse impact on both lots of staff. Yet, it does not mean that a merger has been ruled out," Somkid Jatusripitak said. According to a Bank of Thailand`s proposal, a change in both banks` management team is needed to increase their operating efficiency. They would also not switch their focus to concentrate more on extending loans to small- and medium-sized enterprises as planned by Prime Minister Thaksin Shinawatra.

Earlier, Finance Ministry permanent secretary Somchainuk Engtrakul said that the two nationalised banks would be run separately but their bad assets would be sorted out to allow them to become fully operational.

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Industry Ministry eye budget increase

INDUSTRY Minister Suriya Chungrungruenkit said that his ministry plans to complete its budget allocation proposal for the fiscal 2002 by the end of this month.

He said yesterday after meeting with officials who work out the budget proposal that the ministry would ask the government to increase the amount compared to this year.

"The budget for next year should be higher than Bt4 billion, as allocated by the previous government," Suriya said.

He reasoned that as the ministry will be involved in many of the government`s populist programmes, such as the Bt1-million village fund and the assistance programme for small and medium enterprises.

The Nation. 6.3.01

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Tuesday, March 06, 2001, updated at 09:44(GMT+8)
People`s daily



Myanmar Govt on Border Incidents with Thailand
A Myanmar government information sheet said on Monday evening that in its recent campaign against the Shan United Revolutionary Army (SURA), an anti-government Shan ethnic armed group led by Lieutenant-Colonel Ywet Sit, great care was exercised by the Myanmar side to ensure that their shells and bullets did not stray into Thailand.html target=_blank>Thailand.

The statement said such assurance was made more difficult as the SURA camps were located right on the Myanmar-Thai border line which stretches for over 2,080 kilometers.

It maintained that the campaign launched against SURA was purely for eradicating the scourge of narcotic drugs.

It stressed that Myanmar has never allowed anti-government organizations from neighboring countries to operate from its territory.

It complained that this "good-neighborly" policy was not reciprocated by Thailand as these organizations continue to enjoy refuge and sanctuary in that country.

It disclosed that the situation in the border region has not returned to normal with the border still closed due to existence of some tension which it said arose out of the organizations being allowed to operate along the border and even within Thai territory.

It said Myanmar would like to see the return of peace and tranquillity to the two countries` border without further deterioration in the relations between the two sides, emphasizing that it has always been Myanmar`s policy to make big issues become smaller and for smaller ones to be resolved completely.

It warned that it is time for Thai officials, including military officers, to stop providing support and assistance to " insurgent groups", which it said the main reason for the present unhappy situation.

Meanwhile, Thailand charged Myanmar troops with intrusion of Thai territory, saying that Myanmar soldiers seized one of its border outposts on February 10 and hit Mae Sai with stray shells during a battle against the SURA.

The tension between the two countries has prompted Thailand to shut down the Mae Sai border check point.

Thailand has urged Myanmar to show goodwill by not deploying excessive troops near the Thai border, warning Yangon not to divert attention from the real cause of the problem that Myanmar troops had encroached on the Thai soil, while Thailand has taken the leading role in drug suppression.

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New Thai Govt Seeks Stronger Ties with China: Thailand`s new government strongly regards China as one of its most important allies, and attaches great importance to the Thai-Chinese relations, Surakiat Sathirathai, Thailand`s newly-appointed foreign minister, told Xinhua during an exclusive interview in Bangkok Tuesday, prior to his visit to China.

"We look forward to more creative cooperation between the two countries in wider areas," said Surakiat, explaining why he chose China as the first country to visit outside the Association of Southeast Asian Nations (ASEAN) after he assumed office.

In his first foreign trip as the foreign minister, Surakiat will visit Vietnam and Malaysia, which are two fellow ASEAN members, and China during the first half of March.

"Long before the new government is formed, in last year, I had said that if I become the foreign minister, I will put it as a priority to visit fellow ASEAN countries and China," recalled Surakiat, also the deputy leader of the ruling Thai Rak Thai Party.

"Now I live up to my pledges and believe I can do better, because I have visited all the other ASEAN countries and China when I was not in the cabinet," he said.

Thai Rak Thai(or Thais Love Thais) Party won a landslide victory in the January 6 national election and formed the new cabinet on February 17.

The new administration has declared that it will conduct the diplomacy in an "Asian way" of face-saving and non-confrontation, in order to restore and strengthen its relations with neighboring countries and other Asian countries.

"China is the first country I plan to visit outside ASEAN, because I consider itself will convey an important message that we greatly emphasize the ties with China," Surakiat said.

Responding to the question of what is on the top agenda of his upcoming visit to China, the foreign minister, recently known for his strong advocation for pan-Asian cooperation, said, "first of all, I would like to address the great importance that all Asian countries need to get together more closely."

"Since China has a policy to emphasize all-Asia cooperation, I will touch further the idea which I would like to call as the Asian Cooperation Dialogue, that is, the attempt to further link countries in the South Asia Sub-continent, ASEAN and East Asian countries," he stated.

"We already have a cooperation framework between ASEAN and South Asia countries, but we still intend to have a framework in which countries in ASEAN, South Asia and East Asia can be together, talking about areas of multilateral cooperation," he said.

However, he stressed that he is not looking for some tight organization in the beginning, but just a venue where all Asian countries can get together.

"Countries participating in the dialogue will first exchange views about what should be the topics before we can talk about them. And we will not solely focus on economic or cultural issues. Instead, we will let the topics open," he said.

Surakiat said he has been considering how such a multilateral forum can be formed and he found if it is merely economic or cultural, it would probably lead to incessant disputes without any positive outcome.

"This time, when I am talking with Chinese leaders about my opinion that all Asian countries have to be united, and the issues of how can they be united, I think the idea of such a loose Asian cooperation dialogue could be one option," he said.

The foreign minister said he would like to work with his Chinese counterpart to see whether the planned Asian Cooperation Dialogue is possible, and would like to support the leading role of China in regional talks related to that issue.

During his visit, Surakiat said he will also discuss with the Chinese side on the ways to foster the cooperation between Southern China and Northern Thailand.

"Although the two countries don`t share a common boundary, we are deeply linked through rivers and blood, " he remarked.

"I would like to look at the possibility if we can have better arrangements in terms of special tax region and non-tariff region, and I also would like to find markets for Thai agriculture goods to export to China, which will involve millions of farmers in northern Thailand," he said.

"At the same time, we will be willing to import products from Southern China, and we also would like to discuss the possibility of creating a transport network linking Northern Thailand and Southern China," said the foreign minister.

"Thirdly, I would like to explore the possibility of trilateral cooperation among Thailand, China and Myanmar," he said, citing the eradication of illicit drugs and a road network as the possible areas of cooperation.

"All the above issues will form a framework which can signify the new era of economic partnership between Thailand and China," he noted.

"It is a natural call for Thailand and China to have much more closer relations in all dimensions, especially economic ties, and that is compatible with the new Thai government`s foreign policy which highlights economic involvement," the foreign minister said.

"We will evaluate the more closer link with nearby countries, to have more economic cooperation. And I would like to hear more from leaders in China about the policy that was announced by Chinese premier Zhu Rongji in Singapore last year which focuses on trade and investment relations with ASEAN countries," Surakiat said.

"I will discuss the mechanism which can bring trade and investment from Chinese business communities, especially that of Shanghai, to Thailand," he remarked.

He mentioned that from his earlier discussion with Chinese businessmen in Shanghai, he found that they were seeking more efficient two-way communications between Thai and Chinese business circles.

"At the same time, Thai businessmen are also keen to know what Chinese investors are looking for and how they can participate in Thai projects. However, surprisingly, there is not a formal venue yet to exchange such information between Chinese businessmen and their Thai counterparts. We have to improve this," he said.

The foreign minister said he is proposing to establish a Thai- Chinese Business Council which comprises top entrepreneurs from both countries, for more efficient information exchange and further enhancing bilateral economic relations.

"I wholly welcome and support the new direction of China to concentrate more on business and trade relations with ASEAN countries, and I welcome the new strategy in China`s economic planning to encourage Chinese businessmen to do business with other countries, especially those in ASEAN," Surakiat said.

Asked if he thinks the bilateral trade relations between China and Thailand will be affected after China`s entry into the World Trade Organization (WTO), he responded, "Surely there will be some areas we will compete, but also there are many other areas we can further cooperate, and that will benefit both of us."

If it is a healthy competition, he said he believed the bilateral business relations will not be harmed.

"What needs to be done now is that we should sit down and identify areas where we have healthy competitions, and areas where we can work together and be competitive together in the global market," said the foreign minister.

He suggested to establish a platform on a "very, very friendly basis" to look at issues which the two countries can cooperate together, and support each other in ASEAN, WTO and other international organizations.

"I strongly disagree with the opinion that once China enters WTO, it will become a trade enemy of Thailand. Not at all," he stressed.

On behalf on Thailand`s new government, the foreign minister said, "We would like to create a mechanism within which Chinese businessmen can play a more active role in Thailand, and we are willing to encourage more Chinese investors to be present in Thailand."

"We would also like to see more economic exchanges between China and Thailand, in order to mark a new era for bilateral economic partnership," he noted.

On the Taiwan issue, he pledged that the Thai government will stick to the One China Policy and would like to see the peaceful reunification of two sides of the Taiwan Strait.

He said the new Thai government also appreciate China`s policy to develop its grassroots rural economy which has made impressive achievements.

"Now Thailand will pay more attention to strengthen its grassroots economy, and in that area the two countries can learn from each other`s experience," said Surakiat, who is also the top policy-drafter of the ruling Thai Rak Thai Party.

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Seamico offers "T plus 3" onlined stock trading

Filed at 02 : 42 pm (THLD time) The Nation


Seamico Securities Plc has launched its “T+3” settlement terms for online stock trading through the company’s website.

The site, www.seamico.com., is expected to attract new traders to its online stock trading service. With commission rates reduced to 0.15 per cent, Seamico’s on-line business is growing at a compound average growth rate of 40 per cent per month, it said in a statement.

The firm now offers clients a full range of services, including T+3 settlement, credit facilities to approved customers and a vast array of other on-line information and services.

CEO, Mr. Robert W. McMillen said: “In Thailand, clients normally buy or sell shares under the three day settlement rules (T+3). This also allows traders’ to day trade, or trade under net settlement terms, whereby one only receives or remits the margin from a daily buy and sell transaction.

On-line traders have, however, in the past, not been offered this service.

Anmerkung: Khun Puwaldolw, ein Analyst mit den besten Trefferquoten, ist fuer Seamico taetig. Da kann sich "maxroland" mal eine Scheibe von abschneiden,so ein Niveau wird er wohl nie erreichen.

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CAMC viable: Bangkok Bank


BANGKOK Bank (BBL), dismissing earlier reports that major banks would shun the scheme, said yesterday it still wants to sell its bad debts to the Central Asset Management Corporation (CAMC).

BBL president Chartsiri Sophonpanich confirmed that the country`s largest bank would enter the CAMC as long as the scheme would help boost the efficiency of the debt-restructuring process.

A recent report said that major banks, including BBL, would not sell their non-performing loans to CAMC because the pricing was too low.

The news had a negative effect on stock market and currency sentiment, as the CAMC had so far been expected to help solve the prolonged NPL problem of Thai financial markets.

However, the authorities insisted the exact pricing of NPLs has yet to be concluded. An earlier newspaper report said there were two options for pricing.

First, banks would sell NPLs at a net book value, adding a 10-per-cent discount without loss-and-gain sharing. Second, banks would sell NPLs at a net book value without discount but would carry the loss-and-gain sharing conditions.

"We are still interested in entering the CAMC. Joining the scheme does not depend on the amount of NPLs to be sold but mainly on the efficiency improvement of debt restructuring derived from the scheme," he said.

BBL is expected by banking analysts to gain the most from selling bad assets to CAMC, as the amount of its NPLs is relatively the largest. There was also a rumour in the stock market yesterday that Thai Farmers Bank, the country`s second largest bank, would also sell part of its NPLs to CAMC.

Regarding the establishment of the CAMC, Finance Minister Somkid Jatusripitak said that Thanong Bidaya, chairman of the task force responsible for the CAMC`s creation, would finalise the plan by the end of this week.

However, there will be a meeting of the task force today to prepare for the plan`s conclusion.

The CAMC is expected to buy bad debts of up to Bt120 billion from the commercial banks and Bt330 billion from the state banks, not including bad loans of the Krung Thai Bank worth Bt530 billion, currently managed by the Sukhumvit Asset Management (SAM).

The market has reacted negatively to the latest development of the CAMC, which is expected to buy bad debts from the private banks for lower than the previous estimation of Bt300 billion.

Meanwhile, the Cabinet yesterday approved the plan for Bangkok Metropolitan Bank (BMB) and Siam City Bank (SCIB) to sell both banks` bad loans to CAMC and also sell the majority stakes of the two entities to the Government Pension Fund, Somkid said yesterday.

The Finance ministry and Bank of Thailand earlier reached agreement on a solution for the two nationalised banks and submitted the plan to Cabinet, Somkid said after the Cabinet meeting.

About Bt300 billion of non-performing loans (NPLs) from both banks, of which Bt99 billion belongs to BMB, will be sold to the CAMC which will be established in June.

Their provisions will be deducted by the accumulated loss incurred from the NPLs sale, after which the leftovers will be transformed into bank capital. Part of this will be returned to the Financial Institution Development Fund (FIDF), the central bank`s rescue arm, said Somkid.

Somkid said he has already sought a new management team that will run the two banks in concert. Currently both banks have separate management. But according to the authorities` plan, the management will be pooled as one team.

BY WICHIT CHAITRONG and

ANOMA SRISUKKASEM

The Nation 7.3.01

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Wednesday, March 7 12:24 AM SGT

Myanmar Defectors: Army Shot Down Thai Helicopter In `97
MAE SOT, Thailand (AP)--Two Myanmar soldiers now in the custody of ethnic rebels claimed Tuesday that a Thai helicopter that went missing in 1997 was shot down by the Myanmar army.
The two soldiers, corporals Thein Soe, 30, and Ye Zaw, 29, spoke at a surrender ceremony at the headquarters of the rebel Karen National Union opposite Thailand`s Tak province, 370 kilometers northwest of Bangkok.

They said they had both served as soldiers for nine years and had been based at a camp opposite Tak`s Pophra district. The men said they surrendered because they were bullied by their officers while carrying out their low-paid and dangerous duties.

Responding to questions from visiting reporters, the men claimed that forces at their base shot down the missing Thai helicopter almost four years ago on orders from a superior. They said they believed the helicopter had lost its way because of poor navigation.

"It was a misty day. Two helicopters were flying at a low altitude," said Ye Zaw. "The tactical operations command commander had ordered Capt. Nay Myo Aung, who led our company, to shoot them down. The first escaped and the second was hit."

The men seemed to be referring to the Aug. 28, 1997 disappearance of a Thai army reconnaissance helicopter on a mission near the Myanmar border.

Their account was given too late to get comment from the authorities in Myanmar, also known as Burma.

In September 1997, Myanmar dissidents in Bangkok claimed that the helicopter had been shot down by the Myanmar army and the four-man crew killed in the crash.

Naing Aung, then the chairman of the All Burma Students Democratic Front, said the information came from Myanmar army radio messages intercepted by several insurgent units along the border. Armed elements of the student front shared some border bases with the Karen National Union.

Naing Aung said the intercepted radio messages indicated that the helicopter had strayed over a portion of Myanmar territory jutting into Thailand around the mouth of the Salween River.

Burmese battalion commanders radioed to the Myanmar capital Yangon for permission to shoot the helicopter down, he said, and because of the rapid response needed, didn`t bother to code the broadcast.

"It will be OK. We will honor you," Naing Aung said the Yangon command replied.

A Thai army officer, also speaking shortly after the helicopter disappeared, said he didn`t believe it had been shot down, because it was flying at 2,130 meters - beyond the range of most ground fire - at last contact.

Weather was bad that day and the crew reported poor visibility, so any crash was probably an accident, said the officer, speaking on customary condition of anonymity.

Myanmar and some Thai military officials had speculated when the helicopter was lost that the Karen insurgents might have shot it down.

Schon seltsam, aber noch kein Kommentar von mir dazu

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Wednesday, March 7 3:57 PM SGT

Thailand Newspaper Highlights March 7, 2001
BANGKOK, March 7 Asia Pulse - Highlights of today`s newspapers:
THE BANGKOK POST

- The capacity lost by the sabotaged Boeing 737-400 will be made up by Thai Airways International`s remaining 10 jetliners of the same type, whose capacity is under-utilised, according to Srisook Chandrangsu, chairman of the national carrier.

- The cabinet yesterday approved a privatisation plan for Bangkok Metropolitan Bank and Siam City Bank.

- Chiang Mai will be the first province to launch the government`s "one tambon, one product" programme.

- Poor sentiment among foreign stock investors has led Bangkok Bank to revise its strategy in securities services to focus on domestic institutions.

- Low bank deposit interest rates have opened new opportunities for asset management companies to launch new funds to attract investors seeking higher returns, according to Maris Tarab, managing director of ING Mutual Funds Management (Thailand).

- In the past year, I have run into a number of my parents` friends and relatives who have been affected by our government`s policy of low interest rates. These elderly people are suffering greatly as their interest income from bank deposits diminishes swiftly. What they receive now-at their retirement age-is only a fraction of what they used to get a few years ago.

- The Japanese government has announced grants totalling $450,000 or19.3 million baht to fund six projects in Thailand. The Grant Assistance for Grassroots Projects [GGP] scheme promotes social and economic development activities at the village level.

- The race to register Thai-language Internet domain names is heating up as Network Solutions, the world`s leading registration firm with some 40 per cent of the market, is preparing to accept registrations in the next couple of weeks.

- The property market in the second half of last year showed strong demand and stable rent and sale prices, according to a recent research report by developer Sansiri.

- The Agriculture Ministry has reaffirmed Thailand`s stand on not allowing any commercial trade of genetically modified [GM] products in the country.

- The office spaces are modest, befitting a new startup still some years from reaching break-even point. While located on the 26th floor of Thai Wah Tower 2, the view offered is only that of a neighbouring condominium, blocking much of the skyline over the capital`s business district.

- Promoting Thailand as a regional air-cargo hub as part of the planned global transpark project would not be feasible right now because of the economic climate, according to a Federal Express executive.

- United Commutations Industry Plc [Ucom] is seeking help from its partner, Telenor, to plan a new direction for United Information Highway Co [UIH], a data communications subsidiary.

- Low and middle income employees may be seen as credit risks by many financial institutions, but Aeon Thana Sinsap (Thailand) Co says it welcomes their business.

ASIA PULSE

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Wednesday, March 7 4:25 PM SGT

S&P Says Thai National AMC Offers Few Benefits To Bks
(MORE) Dow Jones Newswires 07-03-01
0825GMT

PRESS RELEASE: S&P: Thai AMC Offers Few Benefits To Bks

Following is a press release from Standard & Poor`s Corp.:

HONG KONG (Standard & Poor`s CreditWire)--Thailand`s newly proposed national Asset Management Corp. (AMC) is expected to have a limited impact on the financial health of banks.

The proviso that the AMC has recourse to banks from which it had acquired problem loans in the event that sums recovered on such loans fall short of the acquisition price implies that there is effectively no removal of credit risk from the banks.

Although sales of problem loans would improve the liquidity of banks, the banks remain exposed to the downside risk on loan recovery while foregoing the upside.

Under the proposed scheme the AMC will assume problem assets of up to 1.2 trillion Thai baht, of which about three-quarters will come from state banks and the remaining one-quarter from private banks. However, in the event that the bad loans acquired by the AMC cannot be recovered, the resulting losses are to be borne by the vendor banks. While some important issues, such as the level of discount at which the AMC will buy the nonperforming loans (NPLs), have yet to be resolved, Standard & Poor`s believes that the establishment of a central AMC alone is not a panacea for Thai banks` asset problems.

While the AMC proposal is expected to provide liquidity relief and ease the pressure on banks` capital position, the concept of managing NPLs with recourse to the vendor banks tends to raise the contingent risk profile of banks and may encourage banks to defer recognition of these classified loans until they are restructured or disposed of by the AMC.

Moreover, the Thai banks may not have a choice if the government makes the AMC scheme compulsory. This concept differs from Danaharta Nasional Bhd. (Danaharta), the Malaysian counterpart of Thailand`s potential AMC, since Malaysian banks had the choice of keeping problem assets on their own books or to sell their NPLs at prices determined by market forces.

However, in the event of acquiring bad loans that become nonrecoverable eventually, the losses are absorbed by Danaharta, which also agreed to share the upside potential of restructured bad loans with the vendor banks.

Drawing on the example of Danaharta, it seems that structural separation between the organization`s duties as financier of NPL buy-outs and executor of the recovery plan will help to remove the possibility of any unproductive conflicts that may stymie efforts made to rehabilitate the banking system.

A contrasting model is the Indonesian Bank Restructuring Agency, which has, since its inception in early 1998, seen limited success in rehabilitating asset quality, as the institution operates on a loosely structured legal framework and lacks the special powers to accelerate foreclosure of properties.

If Thailand`s AMC is hampered by the lack of such legal powers and is subject to a political agenda, it could encourage strategic nonperformers. It could also introduce moral hazard, spurred by the absence of credit discipline as bank owners and shareholders are perceived to be exempt from the cost of sharing the debt burden. The concept of a centralized AMC that is built on a solid legal framework and premised on clear mission statements that seek to achieve a clearer and more transparent distribution of rights and obligations can, however, help to alleviate systemic risk pressure.

The successful implementation of the AMC concept is not assured in view of the difficulties in reforming the country`s business sector since the onset of the Asian financial crisis and the less-than-rigorous bankruptcy and foreclosure laws in Thailand.

While the bankruptcy laws in Thailand have become more beneficial to creditors since the crisis, the legal framework still exhibits critical weaknesses and lacks the mechanism for collecting debt or enforcing security interests. This renders the enforcement of foreclosure laws both a costly and time-consuming process that further constrains the banks` restructuring efforts.

Moreover, in an illiquid market for seized collateral, many Thai banks remain reluctant to foreclose on collateral and are more prepared to wait and hope for maximum recovery as the economy recovers and asset quality improves. However, this `wait-and-see` approach inevitably leads to high levels of problem assets for banks, thereby imposing further pressure on already precarious capital positions, Standard & Poor`s said. -0- 07/03/01 08-39G

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Ex-Senate adviser claims intimidation attempts

Filed at 12 : 32 pm (THLD time)


BANGKOK, March 7 (The Nation) -- Former Senate adviser Apipol Kongchanakul, who is at the centre of the bribery scandal in connection with the election of National Telecommunications Commission (NTC), said on Wednesday he had been intimidated by unidentified people.

Speaking at a press conference, Apipol said since he came out publicly to defend himself against the allegation that he had tried to solicit bribes from some of the 14 shortlisted candidates to the NTC, he had been harassed by unidentified callers who phoned him at home to tell him to keep quiet about the controversy.

"I received a total of 93 phone calls at home in the past week, and 10 of these calls were made in a threatening manner," Apipol said.

Senator Chirmsak Pinthong, quoting an NTC candidate, alleged that Apipol, who was adviser to Senate telecom committee, had tried to solicit bribes on behalf of a group of senators who promised to vote in that candidate`s favour. Apipol has denied the charge and filed a defamation suit against the outspoken senator.

The bribery scandal is threatening to escalate into a major crisis in the Senate because Apipol is believed to have good connections with senior senators, including Senate Speaker Sanit Worapanya, who had for a time employed him as his adviser. Since the bribery scandal broke out, Sanit has tried to distance himself from his former aide.

Apipol also refused to go to Parliament to testify before an ad hoc Senate committee investigating the bribery scandal because he believed he would not be treated fairly. "The Senate investigation committee would be under pressure from senators to try to protect the credibility of the Senate," he said.

But he said he was prepared to give his testimony if the Senate committee come to interview him at his office in Sathorn area.

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TUF invests Bt600m in new plant


THAI Union Frozen Products Plc (TUF), Asia`s largest tuna exporter, is investing Bt600 million to set-up a new manufacturing plant for its canned foods and to expand the production capacity for its frozen foods.

After the completion of the production expansion, the company expects to employ 1,100 additional staff.

According to a source at TUF, the new plant is under construction in the same area as the existing production facility in Samutsakorn. The construction is expected to be completed by the end of the year.

TUF will move its overall canned-food production lines to the new facility following its completion, said the source.

Under its proposal submitted to the Board of Investment, TUF said its Bt600-million expansion plan would comprise 20,000 tonnes a year of canned food and 12,000 tonnes of frozen food.

About 95 per cent of the new output would be exported at an estimated income of Bt2.2 billion per annum.

Due to its small but profitable operation, TUF has survived the country`s economic crisis. Also, since 95 per cent of its output is exported, the company has gained benefits from the depreciation of the baht.

The company last year saw its revenue decline by14 per cent to Bt1.5 billion while sales decreased by 2 per cent to Bt19.1 billion. These were pushed down by the slump in the price of tuna to US$400 to $450 (Bt17,336 to Bt19,503) per tonne, the lowest rate in many years.

However, the company`s financial results are expected to improve this year after the tuna price jumped to $700 to $750 per tonne earlier in the year following an agreement to cut catches by tuna boat owners.

Frozen and canned tuna exports dominated 40 per cent of TUF revenue last year, while 27 per cent was from frozen shrimp and 18 per cent from canned pet food. Other products are frozen squid, canned seafood, and canned vegetable and fruits.

The US is TUF`s largest export market, consuming 32 per cent of its exports. The Japanese market consumes about 30 per cent, and the European market 10 per cent. The remainder is exported to Asia, Africa, Middle East, Canada, and Australia, and Latin America.

After its acquisition of Tri-Union Seafoods earlier this year, TUF became the global number three player with a market share of 17.5 per cent, following Starkist and Bubble B who have 45 and 22 per cent, respectively.

The acquisition is expected to help TUF maintain annual profit growth at 10-15 per cent over the next five years, on top of the anticipated $1.8 billion annual sales revenue expected over the next three years.

In March last year, TUF president Theeraphong Chansiri helped form the Internet homepage FoodMarketExchange.com. The site facilitates online business-to-business transactions of food and other agricultural products.

Last month, TUF was named Asiamoney magazine`s "Best Small Company in 2000" due to its strong financial performance. Also, the company was nominated in the "Best overall management, and investor relations" category. The award was based on voting from hundreds of global financial institutions.

BY NAREERAT WIRIYAPONG

The Nation 7.3.01

Die Anleger bewerteten das sehr positiv. Die Aktie stieg um 7.34 Prozent

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Wednesday, March 7 9:49 PM SGT

Thai AMC Committee Undecided Over Asset Purchase Terms
BANGKOK (Dow Jones)--A committee that will set up a central asset management company to buy bad debt from commercial banks met Wednesday, but did not reach a decision on the final terms for the purchase of the assets.
The committee`s chairman Thanong Bidaya told reporters that discussions on the project aren`t over yet but should be finalized by Friday.

"We have agreed with the banks on several guidelines and talks have been so far satisfactory," Thanong said.

A subcommittee will meet again Thursday and a final meeting will take place Friday with the presence of Finance Minister Somkid Jatusripitak and possibly Prime Minister Thaksin Shinawatra, Thanong said.

The government agreed with commercial banks April 25 to set up a central agency that will buy nonperforming loans from state-owned and private commercial banks and set a two-week deadline for an agreement on the terms of the purchase. Nonperforming loans in the financial system accounted for about 18% of total lending at the end of January.

The central AMC is expected to undertake assets worth of 330 billion baht ($1=THB43.397) from state-owned banks and some THB120 billion in assets from private sector banks. Another THB500 billion worth of assets should be transferred from Sukhumvit Asset Management Co.

Thanong didn`t elaborate on the proposed purchase price but denied a recent media report quoting him as saying that the assets will be bought at a 20% discount to book value.

"I never said there will be a 20% discount, it`s wrong," Thanong said.

A finance ministry source said that the most likely option under consideration is buying the assets at net book value, while the banks will undertake part of future losses or gains incurred by those assets. However, there may disagreements over the loss share of the banks if it happens to exceed a certain amount, the source said. He didn`t elaborate.

Another option is to buy the assets at a 10% discount to book value. -0- 07/03/01 13-47G

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Auszug aus:

SEAMICO
SECURITIES Wednesday 7 March 2001
! Eventually, the transfer price formula should be settled as the working group of the
CAMC comprises bankers who are experienced in financial matters. The next issues
that are of concern will be how NPLs will be managed and transparency in doing so.
! We recommend BUY BBL, SCB, and TFB as these stocks would benefit from
transferring NPLs to the CAMC and have a high LLR ratio per classified NPLs.

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Achtung wichtige Meldung!

Jetzt sind sie da -- die NVDR`s --

Alle Einzelheiten sind unter der SET URL nachzulesen.

(um 10:45 waren es erst 90 Besucher!)

Mal sehen wie die Anleger darauf reagieren!

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Um 14:45 erst 120 Zugriffe auf die NVDR` Seite gezaehlt.

Also das begreife wer will!

Seit Monaten mit den wildesten Spekulationen bedacht -- was passiert mit den Foreigns? Nix -- andere Indikatoren haben die Kurse heute beeinflusst.

Mal sehen, wie sich das weiterentwickelt.

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PM to consider CAMC`s formula tomorrow

Filed at 05 : 10 pm (THLD time)


BANGKOK, March 8 (The Nation) -- The taskforce assigned to draw up the blueprint of Central Asset Management Corporation (CAMC) will submit the pricing formula for the government to take over bad loans from banks to Prime Minister Thaksin Shinawatra who will consider the proposal tomorrow.

Finance Ministry Permanent Secretary Somchainuk Engtrakul told reporters after the taskforce meeting this afternoon that the CAMC plan had been finalised before it would be tabled at a meeting, chaired by Thaksin, at the Government House on Friday.

"We reaffirmed the original principle that the government must shoulder less burden from the unloading of bad loans off banks` balance sheets," he said.

At today`s meeting, the taskforce agreed on two options for the pricing formula, said a source at the ministry.

The first one calls for privately-owned banks to sell bad loans without discount to CAMC on condition that they would have to be solely responsible for all damage in the event of losses. However, banks and the government would equally share any gains if bad loans generated profit.

Another option requires the CAMC to take over problem loans with discount as well as loss and gain sharing scheme to be adopted by the government and banks. Under this arrangement, both parties would gain equal ratio if bad loans generated profit. However, details of the loss sharing scheme in terms of percentage has yet to be worked out.

The size and maturity of bonds to be issued as payment for the purchase of bad loans from private-sector banks also have not been agreed upon, although the taskforce estimated that the value would be likely to exceed Bt120 billion.


Im Boersenreport heute wieder haarstraeubende Fehler, mal sehen ob Watcher sie unkommentiert pasten wird.

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Citibank: Thai economy to grow by 4% this year


BANGKOK, March 8 (The Nation) -- Thailand is expected to remain on track to recovery this year with a projected growth rate of 4 per cent despite the gloomy worldwide economic outlooks and the country`s internal problems, Citibank Thailand`s economist Anusorn Tamajai said.

Speaking at a press conference today, Anusorn said although the world economic growth projection for the year 2001 was adjusted by Salomon Smith Barney research department from 3.7 per cent to 3.2 per cent, Thailand would maintain the growth rate thanks to the government`s economic stimulus packages.

He said the measures would stabilise the US dollar/Thai baht exchange rate in the range of Bt44-Bt45 in the next six months.

"However, over the next two years, the growing political instability and the fragile financial sector would begin to cause negative impacts to the economy. The Thai economy would also encounter risks associated with concentration of growth in only a few sectors," he said.

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COMPANY REPORTS:
Auszug The Nation 8.3.01


DELTA ELECTRONICS (THAILAND)`S board of directors has approved a rights offering of 10.7 million shares at Bt10 apiece to existing shareholders at the ratio of one new share to 10 old shares.

The subscription period would run from May 14-18.

The maker of computer monitors and switching power supplies said the proceeds from the share sale would be used to finance capacity expansion this year at a cost of Bt107 million.

The new shares would raise the company`s paid-up capital from Bt1.065 billion to Bt1.172 billion.

The board also declared a dividend of Bt20 per share payable on May 4 to shareholders as of the ex-dividend date of April 19.

The two board measures will be proposed to shareholders for approval at the annual meeting on April 5.

TIT That is Thailand

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CAMC to bear 70% of debt losses


PRIME Minister Thaksin Shinawatra will today announce the final blueprint for the government`s Central Asset Management Corporation (CAMC).

Under the deal, the CAMC will purchase bad debts from private banks at net book value, without any discount, according to banking sources.

This means the CAMC will spend a total of Bt160 billion to transfer bad loans with a book value of more than Bt200 billion, sources said.

The banking system has at least Bt1.2 trillion in bad debts, with Bt900 billion on the books of government-controlled banks and the remainder in private banks.

On the contentious point of loss sharing, the CAMC will bear 70 per cent of any future losses from managing the bad debts, and the banks 30 per cent. This appears to reverse an earlier loss-sharing proposal under which private banks would bear 75 per cent of future losses and the CAMC 25 per cent.

Finance Minister Somkid Jatusripitak said yesterday he would like Prime Minister Thaksin Shinawatra to chair the CAMC so the project proceeds smoothly.

"The International Monetary Fund also has expressed its support for the CAMC," he said.

Sources said that, under the proposal, the CAMC would issue bonds worth Bt160 billion to the banks in return for the transfer of their bad loans. The bonds would come with a guarantee from the Financial Institution Development Fund. The coupon rate is about 2.5 per cent, based on the average deposit rate at commercial banks.

Although the banks will gain 2.5 per cent interest from holding the CAMC bond, they are not very happy with the consequences of the transfer of their bad debts.

This is because, firstly, although the debt-transfer appears to be voluntary, the government has signalled that the private banks must really clean up their bad loans by transferring them to the CAMC all at once.

All bad debts with more than two creditors and a size of at least Bt5 million are earmarked for transfer to the CAMC. Banks, which have already set provisions for some of these bad loans, are not happy about this prospect.

Second, the banks are afraid of a possible hidden agenda. The banks stand to suffer losses from the loss-sharing and from provisions they have already raised in the event that the CAMC ends up selling the bad debts back to them at cut-throat prices.

Third, the banks must have provisions for 100-per-cent coverage of the bad debts to be transferred to the CAMC.

This might not require immediate recapitalisation by the banks, but it would result in a dilution of their capital held to cover risks.

Anusorn Tamjai, an analyst from Citibank, said he agreed with the broad framework of the CAMC proposal, saying it was neutral and did not create too much burden both for taxpayers or the banks` shareholders.

Today is the deadline that the prime minister assigned the project task force, chaired by Thanong Bidaya, to complete its blueprint for the CAMC.

This followed a seminar in Cha-Am last month moderated by Thaksin to accelerate creation of the CAMC.

BY JIWAMOL KANOKSILP

The Nation 9.3.01

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Thaksin Says He Knows Mastermind Behind Bombing
March 09, 2001


Thailand`s PM said Thursday he knows who was behind the bombing of a Thai Airways plane, although he doubts whether the evidence would be enough to prosecute them.


The Prime Minister, Thaksin Shinawatra, added he is sure that officials could arrest the bombers.

However, Thaksin did not identify who he thought was responsible for the bombing that killed one person and injured seven.

Thaksin also dismissed Thai media reports that the bombing of the Boeing 737-400 at Bangkok International airport on March 3 was due to business conflicts within the airline or the Airport Authority of Thailand.

There is speculation that the bombing is related to Thaksin`s campaign against drug trafficking.

Myanmar

Meanwhile, other speculation said the Myanmar government or the United Wa State Army (UWSA), an ethnic minority militia allied to Yangon, could have been behind the blast.

However, the country`s intelligence and anti-narcotics officials have said they doubt Yangon or the Wa were involved.

Investigators say the bomb was made of C-4 military explosive and was probably the work of someone with expert training.

So what precautions are being taken in case of another ordeal?

(tt/sml)Asiagateway

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Friday, March 9 11:57 AM SGT

Thai Company Losses Decline Markedly in 2000
BANGKOK, March 9 Asia Pulse - Company losses fell markedly in Thailand for the year 2000, according to a report released by the Stock Exchange of Thailand (SET).
Mr. Vicharat Vichit-Vadakan, President of the Stock Exchange of Thailand, said in a statement the official report showed that 364 of 381 listed companies had submitted financial statements ending December 2000. About 230 listed companies had reported profits, while 134 reported losses.

Overall, listed company total losses showed a signficant improvement when compared to the figure for 1999.

"The losses, including financial institutions and companies in REHABCO, came in at 13,760 million baht ($US2.62 million), a decreased loss from the total net losses of 429,867 million baht in 2000," he said.

Net losses posted by the banking sector in Thailand fell 97 per cent in the year 2000, Thirteen commercial banks and the Industrial Finance Corporation of Thailand were dealt total net losses of 10,288 million baht, down by 97 per cent, from losses of 332,259 million baht in the same period last year.

This was because most commercial banks responded to a provision on doubtful debt required by the Bank of Thailand, and the result of the Krung Thai Bank (KTB) debt transfer to Asset Management Company, which made a profit of 108,000 million baht.

In addition, commercial banks reported that interest income and net dividends, before the provision of doubtful debts, had increased by 145 per cent, as these commercial banks had high levels of spread.

Twenty finance and securities companies also benefited from net profits of 1,401 million baht, up by 107 per cent from losses of 20,931 million baht in the same period last year.

This was because these companies were not burdened by the provision for doubtful debt. Moreover, income from interest and net dividends, before the provision for doubtful debts and the non-interest income, had increased.

The report also showed that operational results increased by 408 per cent for listed companies in the production and services sector.

The top five sectors with the highest net profits are Electronic Components, Electrical Products, Pulp and Paper, Energy and Communications. The Banking sector reported a total net loss, however net losses were down by 97 per cent on the year before, while the Finance and Securities sector enjoyed a 107 per cent profit increase.

Listed companies in the Production and Services Sector (excluding financial institutions and companies under rehabilitation or REHABCO) experienced total net profits of 21,788 million baht, up by 408 per cent from the total net losses of 7,080 million baht in the same period last year.

In addition, 295 listed companies in Production and Services Sector (excluding financial institutions and companies in REHABCO) reported total net profits of 21,788 million baht, up by 408 per cent from total net losses of 7,080 million baht in the same period last year. These total net profits, excluding losses from the exchange rate of 33,350 million baht, totaled 57,338 million baht, improved from total net profits of 10,618 million baht.

The sales growth of listed companies in the Production and Services Sectors has increased by 16 per cent, from 1,169,123 million baht in 1999 to 1,354,218 million baht in 2000, a gross profit margin of 21 per cent. The return on equity increased to 3.29 per cent, when compared to -1.10 per cent for last year. The return on asset increased to 0.95 per cent, when compared to -0.32 per cent for last year.

Mr. Vicharat added "as for last year`s listed company operational results, 22 sectors in the Production and Services Sectors reported profits. The top five sectors with highest profits are Electronic Components, Electrical Products, Pulp and Paper, Energy and Communications. The companies in these sectors gained a total net profit of 27,373 million baht, up by 639 per cent from their total net losses of 5,075 million baht in the same period last year. This is a result of sales growth, which has increased by 27 per cent, with a gross profit margin of 26 per cent and total net profits from debt restructuring of 10,451 million baht."

Companies in six sectors reported losses. The five sectors with the highest losses were property development, transportation, chemicals and plastics, entertainment and recreation, and packaging. The companies in these sectors experienced total net losses of 23,150 million baht, increased by 114 per cent from total net losses of 10,818 million baht in the same period last year. Causing this was the exchange rate loss, which has increased by 684 per cent, from 2,442 million baht to 19,137 million baht at the same time period of last year.

As at December 31, 2000, 143 listed companies reported their progress on debt restructuring, which is approximately 50 per cent of the total number of companies. These listed companies have restructured 719,785 million baht worth of debts, or 50 per cent of the total debt amount, up by 186 per cent from the 251,500 million baht worth of debts restructured in December 1999.

As for the debt restructuring methods, listed companies have restructured 338,299 million baht worth of debts (47 per cent) by extending the debt period, 71,978 million baht worth of debts (10 per cent) by converting to equity and debenture, and another 57,583 million baht worth of debts by selling property for debt settlement and other methods. There is, however, another 266,477 million baht worth of debts still undergoing the debt restructuring process."

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Der Ausgang des AMC Meetings hat sich aeussertst positiv bei den Bankkursen ausgewirkt:

BBL + 6,85% BBL-F + 8,72%
TFB + 6,67% TFB-F + 8,08%
BAY + 6,58% BAY-F + 6,58%
SCB + 6,12% SCB-F + 5,65%

Tut doch richtig gut zum Wochenende oder?

MfG BodyG

[captainfish]

Man Body,Du gibt`s Dir ja richtig Mühe und dann keine Antworten-schade.Ja,das tut gut zum Wochenende.Viel Glück und weiter so...

[BodyG]

@captainfish,
Danke fuer die Blumen. Ich betone nochmals, Glaskugel- oder astrologisch fundierte Vorhersagen, die im Nachhinein bei weitem noch nichtmal die Online-Gebuehren wert sind, die zur Publikation anfallen, wird man bei mir nicht finden.
Auch wenn mich hier schon ein echter "BIGLOSER" als den absoluten Verlierer eingestuft hat, werde ich alles das, was ich fuer lesenswert halte, weiterhin -- per paste and copy -- auch anderen zur Verfuegung stellen.

MfG BodyG



Thaksin" calls for quick execution of drug traffickers
Chiang Rai, Mar 11 (TNA) - Thai Prime Minister Thaksin Shinwatra was considering to amend related laws to expedite the execution process for convicted drug traffickers.
Thaksin proposed his idea at the opening day of the national drugs summit being held at the northern proviced of Chiang Rai.
Nearly 200 government and law enforcement officials from various organisations began two days of meetings yesterday to discuss a wide range of proposals aimed at curbing the growing problem of drug abuse and trafficking.
As part of his declared "war on drugs" Thaksin said he would like to see the entire execution process completed within 60 days of the final court decision, unless a Royal pardon from His Majesty the King was granted.
The Prime Minister who charied the conference said a national co-ordinating committee will be set up to develop a comprehensive strategy to tackle the problem.
Thai and international drug experts say the illegal stimulant is smuggled in from Burma border areas, where it is produced in massive quantities by armed ethnic groups and drug lords.
The cross-border drug traffic has caused anger in Thailand, especially among military commanders who feel the Burmese army is providing a haven for the drug traffickers.
Thaksin said harsh punishment and substantial suppression alone could not effectively tackle the widespread drugs problem. Equally important are efficient remedial measures and preventive solutions.
The premier reiterated that he would also focus on the widespread use of drugs among youths, especially in educational institutes.

Last Update : 3/11/01 : 9:42:21 AM(GMT+7)

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Drug-manufacturing city`s photoes shown during drug conference
Chiang Rai, Mar 11 (TNA) - Thai Prime Minister Thaksin Shinawatra and participants in an anti-drug strategy conference looked on in shock at an exhibition of photographs of Muang Yorn in Burma which is under control of the United Wa State Army (UWSA).
Muang Yorn is just 30 kilometres north of the northern province of Chiang Mai of Thailand.
Thai Army Chief Gen. Sorayuth Chulanondh presented the photoes during the national drug summit being held at the northern province of Chiang Rai.
"The boss at Muang Yorn has recruited 50,000 people from areas around the city to speed up production of amphetamines," said Gen Sorayuth.
"Last year they produced 700 million tablets. Thai authorities managed to confiscate just 100 million tablets. This is a serious problem that threatens to destroy Thailand," he said.
Muang Yorn, a self-sufficient drug-manufacturing city fully equipped with a dam and its own electricity source just like Bangkok.
The public utilities in Muang Yorn are built from the money which come from drug manufacturing and trading.
Thaksin instructed the Thai military to use whatever force was deemed necessary to quell the UWSA`s notorious drug trade. The prime minister said he would summon officials of the defence and foreign ministries to discuss ways of dealing with Burma.

Last Update : 3/11/01 : 11:08:00 AM

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TAMC to be set up by June
BANGKOK, Mar. 10 (TNA) – Financial regulators and representatives of local banks have reached an agreement on details and conditions to establish a central body to manage bad loans of the banking sector.
The agreement to set up the Thai Asset Management Corp. (TAMC) was reached at a three-day meeting of all parties concerned, which ended yesterday evening, according to news reports of T.V. Channel 9 and iTV.
Finance Minister Somkid Jatusipitak told reporters after the meeting that he expected the TAMC could be set up by June, after the parliament passes legal framework which is necessary to support its establishment.
Non-performance loans (NPLs) of the local banking sector is expected to remarkably decline to less than 10% of overall loans by the end of this year after the new body takes over Bt1.35 trillion bad loans of both state-owned and private banks, participants at the meeting said.
Meanwhile, former finance minister Thanong Bidaya, who heads a 12-member government panel to work out for the scheme, said that the meeting sought a balance fair for both the government and local banks.
Under the agreed profit-loss sharing scheme, the newly-set up TAMC would use bonds to purchase NPLs of private banks at the net book value, he disclosed.
“Possible losses of up to 20% of the net book value will be fully borne by selling banks; while the next 20% of losses, if any, will be evenly shouldered by TAMC and selling banks, and the rest, if any, will be fully borne by the government”, he described.
Selling banks could choose to settle their losses in either cashes or shares, he noted.
On the other hand, up to 20% profits possibly gained from the management of the NPLs will be evenly shared by TAMC and selling banks, minus investment and management expenses, according to Thanong.
Additional profits, if any, would be fully taken by selling banks, he said.
Profits and losses would be calculated on the fifth and tenth year of TAMC operations, he stated.
For state-owned banks, their NPLs would be purchased by TAMC at a discount rate of 80%, said Thanong, indicating that bonds would also be used to buy the state-owned banks’ bad loans.
TAMC is likely to use bonds worth over Bt160 billion to purchase NPLs of private banks; while using another Bt 880-billion bonds to purchase bad loans from state-owned banks, he projected.
The 10-year-term bonds will be guaranteed by the Financial Institutions Development Fund (FIDF), and up to 10% of the bonds received by a participating bank can be called each year, but after the third year, and returns to the bonds will be calculated based on a weighted average of bank deposit rates, according to the former finance minister. (TNA) 11.3.01

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Monday, March 12 2:11 PM SGT

Thai Shrs Little Changed Midday; Bk Gains Counter Losses
BANGKOK (Dow Jones)--Thai stocks are little changed at midday Monday, as the impact of losses on U.S. markets Friday is being countered by gains in big banks after last week`s agreement on the planned state asset management company, traders said.
The Stock Exchange of Thailand index closed the first session down 0.41 point, or 0.1%, at 306.59. The blue-chip SET 50 index was flat at 21.64 points.

Volume in the first session was active at 632.0 million shares worth 5.57 billion baht ($1=THB43.510). Decliners have outnumbered decliners 70 to 59, excluding shares traded on the foreign board.

Friday, the Dow Jones Industrial Average dropped 2% to close at 10644.62 points, while the Nasdaq shed 5.35% to 2052.78.

The sharp fall in the Nasdaq has hit communications and electronics stocks, with the sectors falling 1.2% and 1.3%, respectively.

The country`s largest telecommunications holding firm, Shin Corp. is down 3.4% to THB170 and Delta Electronics has slid 1.9% to THB206.

However, there have been gains in big banking stocks on expectations the banks` nonperforming loans burden will be substantially lower after the setup of the central asset management company, Thai Asset Management Company, or TAMC.

TAMC, which is expected to start operations mid-2001, will take over all the bad debt under state-owned banks, and some state-controlled asset management companies, totaling THB1.1 trillion. It will also buy nonperforming loans of up to THB250 billion from private commercial banks.

Bangkok Bank is up 3.2% to THB40.25 after the bank`s president said Friday the bank would join TAMC.

The index`s support is pegged at 300 points, with resistance at 310.

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Ban Pu wins bid for 4 Indonesian coal mines


BANGKOK, March 12 (The Nation) -- Banpu Plc has won a bidding for 4 coal mines in Indonesia in a joint venture with an Indonesian firm, the deal that would help boost coal reserves and output of the coal mine operating firm.

The company reported in a filing with the Stock Exchange of Thailand this morning that it expected its coal reserves to increase to more than 240 million tonnes from 60 million tonnes following the deal.

In addition, its coal output capacity would also rise to 12 million tonnes per year from 6.8 million tonnes.

Banpu units -- Banpu Minerals Ltd (BMC) and Banpu Minerals (Singapore) (BMS), in a joint venture with Indonesia`s PT Centralink Wisesa International, won bidding for the shares of Indonesian mining firms PT Indo Tambangraya Megah and PT Ganda Upayatama and their four mines.

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News Story



UPDATE 1-Thai minister, police at odds on aircraft blast

2001-03-12 06:46:43 GMT+00:00 (Reuters)


(Add police quotes paragraphs 3-6)

By Saowalak Ouyporn

BANGKOK, March 12 (Reuters) - Thai Transport Minister Wan Muhamad Nor Matha said on Monday an explosion and fire which wrecked a Thai Airways International jet this month was not caused by a bomb, as first thought.

"I have been briefed informally by both Thai Airways and the Airports Authority of Thailand that it was not a bomb," the minister told reporters. He did not elaborate.

But a senior police officer who has been leading a probe into the blast said he remained convinced it was no accident.

"I still believe that it was done by human beings. It was definitely a bomb," General Sant Sarutanont told reporters.

Sant, a deputy national police chief, said he had informed Boeing officials that police had found traces of C-4 plastic explosives in the wreckage of the plane.

"They talked with us about what we have found, and we told them that it was RDX (a chemical in C-4 explosives). They said if that was the case, we could wrap it up. There was no need to prove anything further. They have accepted our findings," he said.

Boeing officials, contacted by Reuters, declined to comment on the cause of the incident or the progress of the investigation.

NARROW ESCAPE

Prime Minister Thaksin Shinawatra and his son had a narrow escape on March 3 when the Thai Airways Boeing 737-400 they were about to board burst into flames on the tarmac outside the domestic terminal of Bangkok`s Don Muang airport.

The plane, on Flight TG 114, was preparing to take almost 150 passengers to the northern city of Chiang Mai when it blew up, killing one member of the crew and injuring seven other people.

Thaksin initially said he believed the blast was an act of sabotage caused by C-4 explosives and that it was probably an assassination attempt.

The Thai language Thai Rath newspaper on Monday quoted Thaksin and a senior military officer as saying a malfunctioning air-conditioning unit may have caused the incident.

The paper also quoted Thaksin as saying on Sunday: "What Boeing has found was some problem with the air-conditioning system but they are not sure. It may have been caused by explosives because of traces of C-4 explosives."

Thaksin said Thai investigators would probably need to take time to do their job.

He said any conclusion that the blast was triggered by a malfunctioned air-conditioning engine would have wide implications.

Such a conclusion might mean Boeing had to recall all its aircraft of the same model, the newspaper quoted Thaksin as saying.

Boeing said in a statement issued through a public relations company: "Media reports citing Boeing information about findings or cause are simply incorrect... Daily findings do not indicate cause, but indicate that every possibility is being explored with methodical investigative processes in place."

It said officials from Boeing and the Federal Aviation Administration formed part of a U.S. investigation team led by the National Transportation Safety Board sent to assist Thai investigators.

"We provide technical expertise on the airline and do not speculate or discuss daily findings. The Thai government maintains the integrity and leadership of the investigation with the assistance from the NTSB-led U.S. delegation of which Boeing is a part," the Boeing statement said.

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Getting in on firms that pay dividends


WITH the change in fortunes of listed firms and widespread profits being posted for last year, putting money into the stocks of companies that pay a dividend is one of the most attractive investment options, and a safe bet for investors - particularly those earning a monthly salary.

If investors manage to bet on the right stock, they may even be able to reap a double windfall as they will receive a dividend, in addition to a gain from buying and selling the shares.

If they can do this, then the return is likely to be greater than those offered by other financial instruments.

For example, an investor buying Thai Vegetable Oil`s shares at Bt85 apiece in January would later have benefited from the company announcing an interim dividend pay-out of Bt8.5 per share, while its price at the time stood at Bt90. This translates into a gain of as much as Bt13.50 per unit from the sale, or a 15.88-per-cent return on the investment.

If the same investor leaves Bt85 in a time-deposit account for one year, he will gain just Bt2.55, based on an annual 3-per-cent interest rate.

Capital Nomura Securities (CNS) has recommended investors scoop up 12 stocks in anticipation that their dividend pay-outs, which will be announced soon, are likely to be high compared with their current price levels. Normally, dividends are paid during March and April.

The recommended stocks are Kiang Huat Sea Gull Trading (CHOTI), Amarin Printing and Publishing, Thai Rung Union Car, Charoen Pokphand Foods (CPF), General Environmental Conservation, Hana Microelectronics, Electricity Generating, Minor Food Group, Thai Union Frozen Products (TUF), Lanna Lignite, Saha-Union, and BEC World.

The CNS report predicts that Thai Rung Union will offer the best return among the 12. The securities house forecasts that the company will pay a dividend of Bt5 apiece, or 13.69 per cent based on its Friday closing price of Bt36.50.

Amarin is predicted to pay a dividend of Bt3 per share, representing a nearly 13-per cent return when compared with its closing price of Bt23.25. CHOTI is expected to pay Bt18 per share for its 2000 operations, amounting to a 10.46-per-cent return based on Friday`s Bt172 close.

CPF will provide a return of 11.31 per cent if it pays a dividend at Bt4.78 per share as predicted by CNS, while TUF will offer a 11.40-per-cent yield if its likely dividend pay-out stands at Bt6.5. The shares of CPF and TUF closed on Friday at Bt42.25 and Bt57, respectively.

The brokerage firm forecasts that HANA will pay dividend of Bt6, while its share price on Friday closed at Bt77.50. This would give investors a 7.44-per-cent yield.

"If they are short-term investors, they should sell shares before the XD [exempt dividend] sign posts on the stock, because the price then always falls. If they are long-term investors, they should hold on to shares which have the potential to pay further dividends," the CNS report said.

Under the Stock Exchange of Thailand`s rules, shareholders who buy shares after the XD sign posts on the stock are not eligible for a dividend.


BY ORANAN PAWEEWUN

The Nation 12.3.01

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Monday, March 12 7:13 PM SGT

Foreigners Bought Net THB597.5 Mln Thai Stocks Monday
BANGKOK (Dow Jones)--Foreign investors were net buyers of 597.5 million baht ($1=THB43.520) worth of Thai stocks Monday of a total THB9.53 billion traded, the Stock Exchange of Thailand said.
Figures are in baht; some are rounded; percentages are calculated from unrounded numbers:



Bought % Total Sold % Total
Foreign 2,562.4 mln 26.88 1,964.9 mln 20.61
Local Retail 6,779.8 mln 71.12 7,403.7 mln 77.67
Institutional 190.0 mln 2.00 163.7 mln 1.72



Note: Foreign activity represents transactions by both institutions and individuals. Local retail activity is by Thai nationals only, and institutional activity is by domestic institutions, SET member-brokers and sub-brokers.

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Police assert THAI plane explosion caused by C-4 bomb
BANGKOK, Mar. 12 (TNA) – Evidences, including new ones found during the weekend, have clearly indicated that an explosion of a Thai Airways International (THAI) plane on March 3 was caused by a C-4 bomb, not an accident, Deputy National Police Chief Pol. Gen. San Sarutanont confirmed here on Monday.
Pol. Gen. San, who heads an investigation team of the National Police Office, told TNA after a 30-minute meeting with Prime Minister Thaksin Shinawatra at the Government House that additional evidences the police investigation team found during the removal of remains of the Boeing 737-400 aircraft during the weekend clearly indicated that the incident was caused by a C-4 bomb, an act of humans, not an accident.
“We found additional evidences during the removal of the plane wrecks, including a central oil tank and remained components of its front parts, which are very useful for the investigation and help confirm that the THAI plane blast was certainly triggered by a C-4 bomb”, he said.
The police panel also found RDX, a chemical substance used as a component of a C-4 bomb, in clothes of a THAI male steward who was killed at the spot in the blast, and of other seven injured staff, he noted.
Experts of the Police and Military Ordnance Departments, as well as those from the Forensic Science Bureau had also confirmed that the substance found was RDX, he stressed.
“Given all the evidences, I maintain that the blast of the THAI aircraft on March 3 was certainly caused by a C-4 bomb, a human act, not an accident”, asserted Pol. Gen. San.
He said that the police investigation panel and an expert team of Boeing Co. were doing separate jobs with different objectives, which should not be confused.
The Boeing team focused its concern on finding out whether there was any malfunction or mechanical failure at the time of the explosion, which may take up to a six-month timeframe; while the police panel were seeking the cause of the explosion, based on evidences and witnesses, he acknowledged.
“The police and Boeing teams are doing separate jobs with different objectives. I, as a police officer and investigator myself, would like the incident to turn out to be an accident very much because, if so, we don’t have to do anything more and can immediately conclude the case. But the RDX substance was found. If I say the incident was an accident, it means that I do not respect my duties and professional ethics. Therefore, I must maintain that the incident was a sabotage attempt of humans, using a C-4 explosive”, he stressed.
Pol. Gen. San’s remarks followed a preliminary report of the Boeing team, which was issued yesterday, indicating that the THAI plane explosion might be caused by malfunction of an air-conditioner.
Premier Thaksin then told reporters that Pol. Gen. San came to tell him of latest evidences found in the aircraft remains, which can confirm that the incident was caused by a C-4 bomb, as RDX substance was found, according to a news report of Radio MCOT FM100.5 MHz.
“Experts of Boeing Co. also did not argue that the substance was a component of a C-4 explosive”, he noted.
Asked when he assumed the case would be wrapped up, the Thai leader said that it depended on the police investigation team in seeking and concluding verified evidences, and in testifying witnesses, said the radio news report.
Gen. Chaovalit Yongchaiyudh, Deputy Prime Minister and Defence Minister, who heads a special panel on following up the case, told reporters that authorities concerned agreed at a meeting of the panel this afternoon that the incident was caused by a C-4 bomb, given all available evidences. (TNA) updated at 06:35 p.m.
Last Update : 3/12/01 : 3:35:11 PM(GMT+7)

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BBL rates unlikely to change in short term: Chartsiri

staff writer

WHILE some banks have made the move to increase deposit rates and reduce short-term interest rates, that won`t be the case at Bangkok Bank (BBL), its president said last week.

Chartsiri Sophonpanich said the most important task at hand is setting up the Thai Assets Management Corporation (TAMC) to tackle banks` non-performing loans (NPLs). Without the NPL burden, Chartsiri said, BBL would have some leverage to reduce interest rates.

"Bangkok Bank hasn`t considered increasing deposit rates or slashing lending rates. I think the move would be unlikely in the short-term," he said.

Last week, BankThai (BT) bumped up its deposit rates by 0.25 percent, and slashed its interest rates for housing loans by 0.25 percent.

Krung Thai Bank, meanwhile, boosted its deposit rates on two-year savings accounts to 3.75 percent, and three-year accounts to 4.25 percent following the Bank of Thailand`s (BOT) policy geared towards helping average bank customers.

The moves prompted other private commercial banks to consider rate changes.

A source at BBL said its strategy concerning deposit and interest rates greatly depends on moves by the BOT. The BOT so far has sent signals to lower interest rates.

Analysts said, however, moves by state-owned banks to cut interest rates and boost deposit rates likely won`t lead private banks to do the same.

According to one analyst, excess liquidity in the banking sector currently stands at about 500 billion to 600 billion baht.

Chulakorn Singhakowin, president of the Thai Bankers` Association and Bank of Asia (BOA), said private commercial banks would have to consider the possibility of deposit rate hikes while lowering lending rates to comply with the BOT`s policy.

"Whether BOA changes its deposit or interest rates depends on what moves other banks make," said Chulakorn. "It`s our position to wait until the TAMC`s mandate is clear before making any serious moves."

However, BOA`s president did suggest lowering borrowing rates could help to stir the economy.

"Banks have to respond to social needs. Once the NPLs pressure is off, it could prompt banks to eventually lower their spread."
Quelle: bday.net 12.3.01

Man haette denken koennen, dass die staatlichen Bank- und Finanzinstitutionen vom geplanten TAMC Procedere am meisten
profitieren sollten -- Fehlanzeige -- BBL + 3.85%, BBL-F + 7.55%, TFB + 2.08%, TFB-F + 6.54% waren, zumindest bei den Foreigns, schon wieder die Top-Gewinner.

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Shrimp farmers call for govt support


THAI shrimp-farmers have responded to the Vietnamese government`s recent announcement that it will support shrimp-farming over a 10-year period by creating its own integrated plan for development in the area.

Thanan Sovanapreecha, president of the Black Tiger Shrimp Farmers Producers` and Exporters` Association, said Thailand had been ranked the world`s biggest black tiger shrimp exporter since 1989. However, Thailand`s market share of shrimp exports in the international market has gradually declined to 13.2 per cent, down from 17.2 per cent in 1994 and 1995.

"The market-share drop resulted from the country losing it`s competitiveness in the export market," he said, adding that tax-privilege cuts under the Generalised System of Preferences programme by the European Union (EU) had caused Thailand`s exports to drop 5 per cent in value and 11 per cent in volume.

From this year Vietnam plans to expand its shrimp-farming area to16 million rai, with the aim of increasing export value to Bt60 billion per annum by the end of 2010. Vietnam plans to reach a capacity of 360,000 tonnes per year.

Thanan said the new government had to encourage shrimp-farmers by supporting new technology and expanding the farm area.

Moreover the new government has to negotiate to reduce trade barriers that hamper market access. For instance the EU market places a 14.4 per cent import tariff on Thailand`s frozen shrimp and a 20-per-cent tariff on boiled shrimp. Vietnam however, is charged only a 4.5-per-cent import tax on both products, he said.

"If the Thai government ignores this sector Thailand exports will suffer in the near future," Thanan said.

The Nation 13.2.01

TUF sollte sich mal im vietnamesischen Markt engagieren,
dann koennten sich aehnliche Perspektiven wie bei BANPU in Indonesien ergeben.

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Rangoon rails at Bangkok for making Wa army drug scapegoat


FIRING the latest salvo in a war of words, Burma yesterday accused Thailand of making a pro-Rangoon drug army the "scapegoat" for its narcotics problems.

"Putting all the blame on a neighbouring country for everything that goes wrong in Thailand is not the way to solve any problems," a government spokesman said in a written statement faxed to the Associated Press in Bangkok. He said Thai au-thorities should clean their own house first, claiming that crime syndicates and drug dealers were "thriving and also being protected" in Thailand.

The statement was in response to comments at a Thai government seminar over the weekend where the army said Burma`s United Wa State Army (UWSA), a group of ethnic fighters known as the Red Wa, had built a drug-manufacturing city, Mong Yawn, close to the border with Thailand.

A former separatist group, the UWSA signed a cease-fire with Burma in exchange for virtual control over areas in eastern Burma near the Thai border. The UWSA is now an ally of the Burmese junta in its fight against other ethnic rebels.

"It is disappointing to learn that the Red Wa are being used as a scapegoat, and the whole narcotics problem Thailand is encountering today seems to be very conveniently thrown on the UWSA," the spokesman said.

"One begs to know that if the UWSA ceases to exist today, will the narcotics problem in Thailand disappear?"

Thai army officials had told the seminar, called to develop an anti-narcotics strategy, that Mong Yawn had first-class hotels, a big hospital and its own hydroelectric dam. They said the UWSA had brought in 50,000 people to manufacture drugs.

The United States also says the UWSA is a major narcotics trafficker and operates with the tacit approval of Burma`s military junta.

A US State Department report released this month says the UWSA is "heavily involved" in drug trafficking and "largely immune from government action" as authorities make little attempt to seize drugs or destroy drug factories in UWSA-controlled territories.

Thailand echoes these accusations and says the UWSA is flooding the country with methamphetamines.

Meanwhile Burma yesterday kept its Tachilek checkpoint closed, embarrassing Thailand, which had announced the reopening of its Mae Sai checkpoint with loud music.

Hundreds of disappointed businessmen, traders and tourists waited in rain and in vain near Burma`s checkpoint at the foot of the Thai-Burma Friendship Bridge.

Burma had promised to reopen its checkpoint after a month-long suspension.

The Nation, Associated Press 13.3.01

Die Burmesen haben ja irgendwie recht, nicht nur bei der Errichtung von Mong Yawn haben etliche Thais(und andere) gut verdient. Die kleinen Schmuggler, welche die dort erzeugte "Ware" ,ueber die Grenze nach Thailand befoerdern, erhalten dafuer doch nur "Peanuts". Der grosse Reibach wird doch von etablierten Kreisen in Thailand abgeschoepft. Thaksin Shinawatra koennte tatsaechlich einigen Leuten (sofern er es nicht bereits jetzt schon ist)sehr sehr unbequem werden. Da er finanziell zum Glueck unabhaengig ist, kann man ihm eine ehrliche Absicht zur Loesung des Problems glauben. Hoffentlich kann er sein Vorhaben unbeschadet durchfuehren.

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Thaksin gives kick-start to SME bank


TOP finance, industry and Bank of Thailand officials were yesterday given a two-week deadline by Prime Minister Thaksin Shinawatra for putting the finishing touches to proposals to set up the country`s first specialised bank for small and medium-sized enterprises (SMEs) within two weeks.

This forms part of Thaksin`s populist policy platform which gave him a landslide victory in the general election and also includes the People`s Bank which will provide micro-credit to small general borrowers who are usually rejected by commercial banks.

Thaksin hopes the planned SME bank will provide smaller industries with the necessary capital they need to pull themselves out the economic crisis to become the backbone of the country`s future economy.

It still remains unclear whether the existing Small Industrial Finance Corp of Thailand (SIFCT) will be upgraded to become the new SME. Another possibility is that the nationalised Bangkok Metropolitan Bank (BMB) will take over the role.

Yet another option would be to merge the SIFCT with the BMB, which has a sizeable client base of small and medium-sized businesses.

The BMB was nationalised by the previous government along with Siam City Bank (SCIB). Shortly after winning the January 6 election, Thaksin`s Thai Rak Thai party suggested that the BMB and the SCIB could be jointly transformed into the SME bank.

Thai Rak Thai has also stated its intention of turning the Government Savings Bank into the People`s Bank.

Yesterday`s meeting, chaired by Thaksin, was attended by finance minister Somkid Jatusripitak, industry minister Suriya Chuengrungruengkit and Bank of Thailand governor MR Chatu Mongkol Sonakul.

Also present were Dhanin Chearavanont, president of the Charoen Pokphand Group, and Somphol Kiatpaibul, former commerce permanent secretary, both of whom are advisers to the finance minister.

Suriya said after the meeting that some of the Bank of Thailand`s rules and regulations for financial institutions had slowed down the pace of debt restructuring by SMEs.

These included the rule that prevented banks from making fresh loans to businesses which had reported losses for three consecutive years.

Suriya said this had the effect of hampering the revival of many SMEs since most were still losing money and were in need of fresh funds.

New SMEs were unlikely to make a profit in the first five years of operation, he added. It was therefore unrealistic to shut off financial resources during that period.

Banks were also prevented from lending money to a group of businesses if one unit of the group had defaulted on loan repayments.

Businesses were also prevented from borrowing more than Bt20 million when using a letter of credit even when it was worth more than the sum requested.

Suriya said that some of the rules and regulations would have to be relaxed for the new bank to become effective in helping to finance the revival and growth of Thai SMEs.

"The Bank of Thailand governor will follow up by holding a meeting with member banks of the Thai Bankers Association as well as representatives of the industrial and SME sectors so that we can tackle the problems correctly," he said.

The Nation 13.3.01

Mal sehen, was seine Kritiker daran zu bemaengeln haben.

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Aus der POST von heute, Zahlen, wenn sie stimmen, machen wirklich nachdenklich und man kann Thaksin nur viel Erfolg wuenschen, bei der Drogenbekaempfung.

Gloves are off and no red tape, says Thaksin
Rapid action panel will have free hand



Chiang Rai

A new panel free of red tape and with authority to act quickly has been set up in an all-out effort to combat the flood of drugs from Burma.

Emphasis will also be placed on rehabilitation of addicts.

Prime Minister Thaksin Shinawatra announced the new organisation`s formation yesterday as the national seminar on drugs drew to a close in Chiang Rai.

He said the new organisation comprised representatives of the Interior and Justice ministries, the Office of the Attorney-General, the national police office and the Council of State.

Chaired by the interior minister, it would do away with all red tape and legal constraints to ensure quick and effective action against drug traffickers.

It would also place stress on campaigns to reduce the burgeoning number of addicts.

Addicts, including users who deal drugs at a low level, would be treated as patients.

They would be encouraged to undergo treatment and rehabilitation at camps to be opened inside compounds run by the military, the Education and Justice ministries, the Local Administration Department and Border Patrol Police.

The camps would be able to serve 40,000-60,000 addicts at a time between them. The Public Health Ministry would be in charge of developing rehabilitation programmes.

Those addicts who needed an especially long rehabilitation period would be made to undergo military training similar to the army`s territorial defence course.

A foundation, to be chaired by the supreme commander, would be set up to raise funds for the rehabilitation programme.

To combat new addiction, the new organisation would launch anti-drug campaigns in villages, aiming to convince people of the dangers.

Mr Thaksin said the national conference had also discussed strategies to cope with the production of drugs near the Thai border.

The government would strictly enforce the law as part of the crackdown on major drug traffickers. No one would be immune, no matter how influential, he said.

The premier said he would personally monitor and evaluate the performance of the special organisation, and insisted it would be free of bureaucratic procedure.

Stressing the necessity of fighting drugs, Mr Thaksin said: "Over the past three years we have suffered not only an economic crisis but a drug crisis.

"Methamphetamines are harming our people, even though the authorities are working hard to fight the scourge.

"This is why we have held this seminar, to find all possible ways to stop all causes of the problem, and cure as many addicts as we can," the prime minister said.

Information presented to the conference showed about 2.7 million Thais take methamphetamines, of whom 300,000 were considered addicts.

It was planned to initially rehabilitate one-third of the addicts, to significantly reduce demand and consequently the number of traffickers.

The amount of methamphetamine being smuggled into Thailand increased dramatically from about 100 million pills in 1998 to over 500 million last year. The estimate for this year was 700 million pills. Authorities were able to intercept only an estimated 15% of the supply. The rest reached Thai users.

Drug production in Burma, near the northern Thai border, was both active and on the increase, he said.

The Burmese junta was moving 200,000 Wa people to the expanding drug production zone, according to army intelligence.This was the most serious danger facing Thai society, Mr Thaksin said.

The Post 12.3.01