Anything & Everything About Thailand

[U-Need]

Mia Luang drove her car and bang into husband and Mia Noi's bike

婦人駕車跟蹤丈夫，發現丈夫帶情婦共餐，餐畢還要騎車送情婦回去。婦人叫丈夫停下談判，但丈夫不理睬，反而 騎車帶著情婦離去。婦人打翻醋罈子，駕車追撞，將丈夫與情婦撞死，自己和同車的女兒亦受傷。警已將她扣押， 將治以故意駕車撞死人的罪名。

暖府直縣挽詩曼區警署前天下午4時接報，在直轄縣干乍那披適路橋下轉車處發生車禍，且有人死傷，據報即率員 前往調查。

失事的是小貨車，撞上橋底下的圍牆。另有1輛機車被撞成廢鐵倒在附近。死者是執教於某校的少女巴哇麗莎(2 5歲)。現場還遺留1隻長筒靴。此外還有3個受傷，已被人送往拍喃告醫院救治。傷者是隸屬於暖府直轄縣警署 的交警乍倫警上士，因傷勢過重，抵院不久便告不治。另2傷者是乍倫警上士的妻子娘通貢及其6歲 女兒，。

警查知，娘通貢早探知丈夫乍倫警上士不忠，在外和少女巴哇麗莎搞婚外情。她因吃醋曾和少女巴哇麗莎打過架， 事情還鬧上警署。

肇事前，她又探知丈夫又要去和情婦幽會，因此駕駛小貨車帶同女兒隨後跟蹤。她發現丈夫騎機車帶同少女巴哇麗 莎到拍喃5路某餐廳去用餐。餐畢，他又騎車要送少女巴哇麗莎回去。他出來時發現妻子已在守候。

娘通貢叫他停車談判。但乍倫警上士卻不理會，逕自騎車帶同少女巴哇麗莎朝著反方向馳去，打算甩掉妻子。但娘 通貢也駕車朝反方向隨後緊追不捨。

她追上後猛踩油門撞過去，少女巴哇麗莎自機車上掉下來，腦袋碰撞到人行道，當場香消玉殞。乍倫警上士跌地後 ，又被車子輾過，因傷重死在醫院。娘通貢因小貨車猛撞上圍牆，所以腦部受到震盪，醫生正竭力搶救。她女兒只 受輕傷。

警問明案情後，已扣押娘通貢，將治以故意駕車撞死人的罪名。

[U-Need]

688 words
23 January 2006
Bangkok Post
English

SUPAWADEE INTHAWONG

Sociologist and former student activist Thirayuth Boonmi yesterday predicted that Prime Minister Thaksin Shinawatra will win an unprecedented third term in office, but that corruption and intra-party bickering will eventually bring down his government.

The scholar called on all parties to join hands to amend the constitution and plug the gaps that allow for interference in corruption-monitoring agencies that results in widespread graft.

In his annual review of the country's social and political situation, Mr Thirayuth said the Thai Rak Thai party's politics were based on akkhara yam prathet, or the large-scale exploitation of the country's natural resources for the benefit of people in the party's inner circle.

The former student leader in the Oct 14, 1973 popular uprising said the problem of corruption had become critical because of interference in graft-monitoring mechanisms and the attempted silencing of the mass media.

If left unsolved, he warned, it could lead to social violence, as evidenced by speculation including talk of a possible coup, a demand for the return of power to the monarch and street protests.

He said the government had upheld the idea of making the public sector smaller and the private sector bigger by "deconstructing" the country, such as through the privatisation of state enterprises.

Such deconstruction "helped to weaken the public sector and allowed friends and cronies to reap benefits from it before letting foreign investors take over, leaving only the scraps for the people."

As an example, Mr Thirayuth said, Mr Thaksin had built himself up by deconstructing the telecom industry - winning a state concession which returned massive income to him.

The huge gains Mr Thaksin received from the state could not be compared to the few thousand baht he handed out to villagers during the reality show in Roi Et's At Samat district.

He described Mr Thaksin as the "super prime minister" of a "closed institution" which had been left untouched because all the necessary monitoring agencies had been paralysed.

In the future, as he became more powerful, word would get around about the massive corruption khotranuwat - "the mother of all corruption" - which would lead to hatred and eventually violence, Mr Thirayuth said.

The Thai Rak Thai party was a hub of election professionals whose aim was to make a fortune from political windfalls. This would lead to a situation he called akkhara yam prathet, the plundering of the country's resources.

Amendments to the constitution were urgently needed to prevent this from happening, he said.

Mr Thaksin had often cited the fact that his party was elected by 19 million voters to run the country in an effort to silence his critics, Mr Thirayuth said.

But he warned that those voters would turn against the government if they found out about the widespread corruption within it.

He predicted that Mr Thaksin would return as prime minister for a third term, but the corruption issue and bickering within the party would eventually bring it down.

In proposing that the constitution be amended, the Thammasat lecturer suggested prominent academics, politicians and representatives of people's organisations be appointed to study possible areas for amendment.

To tackle the problem of corruption, Mr Thirayuth proposed that Privy Council president and statesman Gen Prem Tinsulanonda be appointed to chair a committee to campaign for an improvement in ethics and morality within society.

Unrest in the three southernmost border provinces was another issue that required serious attention from the government.

The degree of violence seemed to be easing, but it would be a long time before the situation was brought back to normal as separatist ideology still existed among certain groups of people. Gen Prem, with his previous success in pacifying political violence, could be particularly helpful in tackling the problem, he said.

The fourth issue requiring more attention was for all parties to join hands to solve the country's problems, which had become more complex.

The present government tended to let only one person try to solve the problems single-handedly, he said.

[U-Need]

300 words
23 January 2006
Bangkok Post
English

Tharn Settakij editorial - Why is it so difficult to reduce poverty, particularly among poor, rural people?

Prime Minister Thaksin Shinawatra was in Roi Et's At Samat district last week to give a first-hand demonstration to officials on how to solve local problems.

But the Thai Rak Thai party has been in power for almost five years and it has yet to solve problems that have trapped millions of Thais in poverty.

Mr Thaksin attributes this failure to civil servants' inability to reach the people and learn about their grievances. They stay in their air-conditioned rooms and let problems come to them.

The government has already put through measures to reform the bureaucracy and further adjustments are needed to move the reform forward.

During his five-day stay in Roi Et, Mr Thaksin approved the allocation of funds for several projects. Does this mean the government does not have adequate resources to take care of the rural poor?

From another point of view, the Roi Et roadshow suggests that the executive branch has taken over the traditional role of elected representatives in taking care of the well-being of their constituents.

Where were these elected representatives, one may ask, when poor people in their constituencies cried out for help?

Poor people in the countryside need education, land, money and managerial skills to rise above poverty. Who can provide them with these tools?

A large number of Thais are still poor despite the implementation of several populist policies by the government during the past five years.

We hope the Roi Et experience will give the prime minister and his cabinet new insights into the daily struggle of rural people and strong measures will be taken to reduce their suffering.

[KatoeyLover69]

Report from Bangkok Post dtaed Monday 23 January 2006 :-

THAI ending direct flights from Down Under

By Boonsong Kositchotethana

Thai Airways International plans to axe direct services from Australia to Phuket due to poor passenger traffic, dealing a setback to the island's post-tsunami tourism revival. The national carrier expects to suspend its three scheduled flights a week linking Phuket, Sydney and Melbourne on Feb 1 in light of losses that have approached 260 million baht.

The airline is filling 62-65% of the seats on its Boeing 747-400 jets but needs 70% to break even, according to Vasing Kittikul, executive vice-president for the commercial department.

THAI launched the direct Australia-Phuket service last April to support the country's bid to resuscitate the tourism industry after the December 2004 tsunami.

''It's not that we don't want to help Phuket but our operations have to make economic sense, especially in the wake of skyrocketing fuel prices,'' Mr Vasing said.

''It came to the point where we could no longer sustain the financial burden.''

He said that passengers flying from Australia and New Zealand to Phuket could always connect through Bangkok.

THAI offers 14 Bangkok-Sydney flights a week, and 11 Bangkok-Melbourne flights, plus a daily service to Auckland, with 70-75% of the seats filled on average.

In another development, Austrian Airlines has denied reports that it would suspend its direct scheduled flights from Vienna to Phuket.

''No, we are still flying to Phuket,'' said Buranut Limjitti, Austrian Airlines' manager for Thailand and Indochina.

In fact, since Dec 12, the airline has doubled flights to twice a week until April 29. From April 29 to Oct 28, it will reduce the frequency to once a week to coincide with the low season. The airline reports a healthy 78-79% seat occupancy on the route, according to Mr Buranut.

Pornchai Eua-aree, the director of Phuket International Airport, said the airport was now handling long-haul flights operated by five scheduled airlines and eight charter operators. There are also 10 carriers flying regional flights to Phuket including China Airlines, Asiana and AirAsia. In addition, five airlines operate domestic flights to Phuket.

Preliminary figures show total arrivals at Phuket airport in December were 17% below the same period last year, he said.

Since November, arrivals have gradually recovered but are still lower than in the pre-tsunami period.

''It is hard to say when we can revert to the 2004 level,'' he added.

[KatoeyLover69]

Report from Bangkok Post dated Monday 23 January 2006 :-

A family affair for the Chokwatana family : The third generation of the Chokwatana family provides an insight into what's in store at The Saha Group, one of Thailand's biggest conglomerates


Story by Pitsinee Jitpleecheep

It is very rare for most family-owned corporations to keep hold of their business for three generations. Passing the torch is notoriously challenging.

There is a saying among Chinese families that the first generation makes the fortune, the second generation holds onto it and maybe helps it grow, then the third generation squanders everything.

However, the Saha Group is an exception to the rule.

The conglomerate has more than 100 billion baht worth of assets , more than 200 companies involved in various industries and 80,000 employees, and it is still expanding 63 years on. And, in future, it plans to list as many as 100 subsidiaries on the Stock Exchange of Thailand.

At the moment, 18 subsidiaries are listed on the SET. And almost 20 members of the third generation are part of the group's management, with one venturing out into the entertainment business.

The career paths of each member of the third generation have been different from those of second.

The third generation is luckier, for a start. Their parents have allowed their offspring to choose their own career paths independently. In comparison, the second generation was forced to take care of new businesses that had no executives to spearhead the enterprise.

At present there are seven members of the second generation working for the group, and six - Boon-ek, Boonpakorn, Boonsithi, Sirina, Boonkiet and Boonchai - have children.

Boon-ek's son Vathit looks after the 108 Shop convenience store chain and Pitsnu oversees Thai Cubic Technology; three of Boonpakorn's children work at [COLOR="magenta"]Newcity [/COLOR](Bangkok) ; Boonsithi's children - Thammarat, Thirada and Thitipoom - work for ICC International; Sirina's children, Pravara and Panitarn, are responsible for Boutique New City; Boonkiet's daughter Kityaporn handles St Andrew's products at ICC International Plc (ICC); Boonchai's daughter Chailada works at Far East Advertising and her brother Chailadol runs its graphics firm.

Most of the third generation started their careers as trainees, mostly at Saha Pathanapibul Plc, the consumer products distribution arm, and ICC International Plc, another major distribution and marketing arm for cosmetics and apparel.

Employment of the second and third generation has overlapped, and they meet once a month to share their experiences.

The president of ICC International Plc, Boonkiet Chokwatana, 59, of the second generation said: ''My father (Thiem Chokwatana) taught us that we had to perform better than him. Younger sisters and brothers have to be better than the elder ones. Also, I hope the third generation will be better than the second generation.''

The Saha Group has now expanded into new frontiers by building up its own brand instead of distributing international brand names, as it did in the beginning.

Today the group has several of its own labels in fashion, food, shoes and cosmetics. They include Enfants, St Andrew's, Essence and BSC, which stands for Best Selection Collection. The group is also moving into the entertainment business and fields such as event organising.

Boonsithi's second daughter, Thirada Amphanwong, brand manager of BSC, said the brand was strong enough to encompass various products from instant noodles and towels and bowling products. Sales of BSC, including the local and international markets, stood at 600 million baht last year.

Perhaps because Thirada is Boonsithi's daughter, many people in the business keep a close eye on her. However, Mrs Thirada says, ''I prefer our staff to treat me like a normal executive.''

She acknowledges, though, that support from members of the second generation of her family has helped business go smoothly for BSC, particularly assistance from her uncle Boonkiet, who counselled her about mistakes in the past.

''The more we analyse the mistakes, the more we can reduce costs from them,'' she says.

Another strategy the family has employed is to let the older executives get on with new work while the new executives do traditional jobs. This has given the Saha Group enough clout to compete.

The elder son of Mr Boonsithi, Thammarat, said all scions of the Chokwatana family have had to prove their capability.

''Though I am Khun Boonsithi's son, I did not get any special treatment. On the contrary, I was forced to learn many things. I don't like the whole process of producing Wacoal lingerie or mixing shades of eyeshadow,'' he admits frankly.

Mr Thammarat said business would continue to go forward as long as employees didn't rest on their laurels. ''If you become satisfied with something, everything will stop.''

Mr Boonkiet's daughter, Kityaporn, started her career as an assistant to her father, taking notes at division meetings and reporting to executives, rising to executive assistant.

''This job may not seem significant when compared to marketing or sales. But I learned a lot from it in terms of detail and it's the best way to see a total picture of ICC business,'' she says.

She is now involved in the St Andrew's toiletry, baby apparel and fragrance brand, which was created by her father.

Mr Boonpakorn's son, Pipop and his siblings, work at Newcity Bangkok, the producer of Cherilon brand stockings.

''I want Cherilon products to go beyond just stockings,'' said managing director Pipop. This would pit Newcity against formidable foreign brands such as Victoria's Secret of the US and Wolford from the UK.

Mr Boonchai is the managing director of Saha Pathanapibul. His son, Chailadol, has forged his own way of working. He has set up a graphic design business and works in entertainment.

Members of the third generation of the Chokwatana family are now independent enough to introduce their own management styles and channels for business expansion. Perhaps there will be fresh challenges for the fourth generation.

[KatoeyLover69]

Report from The Nation dated Monday 23 January 2006 :-

SHIN SALE: Two Thai banks to fund deal

SEC to be told today of Temasek’s purchase backed by local loans of Bt26 billion. Siam Commercial Bank and Bangkok Bank will each extend Bt13 billion in fresh loans to a subsidiary of Temasek Holdings of Singapore, as part of Bt70-80 billion in cash required to take over Shin Corporation Plc, financial sources said yesterday.

Financial sources said Bangkok Bank’s Bt13-billion loan to Cypress Holdings would come in the form of a standby letter of credit guaranteed by Siam Commercial Bank.

Altogether the two Thai banks will be lending a combined Bt26 billion as part of a financing package for the largest corporate takeover ever in Thailand.

Shin Corp is expected to notify the Stock Exchange of Thailand today, followed by a news conference.

Financial sources identified the Siam Commercial Bank as one of the key players behind the Shin deal, providing financial advice and the loan to Cypress Holdings, a subsidiary of Temasek Holdings.

Cypress Holdings then will re-lend the money it gets from the Thai banks to Cedar Holdings, which will use the money as part of its Bt70-80 billion takeover of the 49.6 per cent stake in Shin Corp from the Shinawatra and Damapong families.

“If Cypress Holdings is a son company of Temasek, you can say that Cedar Holdings is a nephew company of Temasek,” said one financial source.

ML Chayothid Kritdakara, managing director of SCB Securities, has been identified as a key adviser for the mega-deal, which will reshape the face of Thailand’s corporate scene.

According to Krungthep Turakij’s Saturday edition, there are 10 shareholders in Cedar Holdings, with Siam Commercial Bank holding about 10 per cent, Kularbkaew Co 41.1 per cent and Cypress Holdings 48.99 per cent.

Apparently, Temasek’s buying into Shin Corp would breach the foreign ownership limit of 49 per cent, which has prompted it to rely on its subsidiary Cedar Holdings, incorporated in Thailand, to do the buy-out. The shareholders in Cedar are largely nominees for Temasek.

Around 49 per cent of total Shin shares are “free floating” and avail?able in the local market, and most of these are expected to be snapped up by the foreign investment group.

With the sale of the Shinawatra and Damapong families’ majority stake in Shin Corp to be announced today, critics of Prime Minister Thaksin Shinawatra are sharpening their knives – over a deal they believe would raise more questions about conflicts of interests.

Shin will call an urgent meeting of its board at midday before mak?ing a filing to the Stock Exchange of Thailand. A joint press conference with Temasek executives will be held in the afternoon at a location yet to be confirmed, a source at the Thai conglomerate said.

The families of Prime Minister Thaksin Shinawatra and his in-laws jointly own a 49.6-per-cent stake in Shin which Temasek is expected to buy at a price of about Bt50 per share, totalling between Bt70-80 billion. Shin Corp has 3,000 million shares outstanding.

Temasek will also stage a tender offer for minority shares of Shin and its flagship company, mobile phone operator Advanced Info Service Plc (AIS).

The biggest deal in the Thai stock market history has been shrouded in secrecy and controversy, and Thaksin and market authorities have come under fire over the past month for lack of transparency about the imminent transfer of a major Thai asset to foreign hands.

Questions about tax and whether the Shinawatra and Damapong families would stack the staggering amount of money earned from the sale overseas are also likely to become a major political issue.

Despite suggestions that the Temasek deal was aimed partly at easing criticism of Thaksin over conflict of interests, his opponents insist that the opposite could hap?pen.

“Let’s see when the dust settles,” leading social critic Thirayuth Boonmi said during a press confer?ence yesterday when he continued to denounce “massive corruption” among top government politicians and their cronies. “The first key question is where they keep they money [from the sale] and how.”

The Campaign for Media Reform warned that the problem of conflicts of interests could become even “more complicated and scari?er” with key foreign players involved.

In a statement yesterday, the organisation attacked stock market authorities and the PM for failing to protect national interests affected by the mega deal.

Meanwhile, the Shin Corp source said a Chinese telecom group had offered the families a better price than Temasek but they finally opted for the Singaporean suitor.

He said Temasek would have newly created affiliate, Cedar Holding, to hold the shares it buys from the families and would later try to project that Shin is still a Thai-owned company.

While Temasek had Goldman Sachs as its financial adviser in the deal, the families have not hired an adviser but scrutinised the deal themselves, the source added.

The source said Pong Sarasin, former chairman of Thai Pure Drinks and Surathip Group, would replace Bannapot Damapong, elder brother of Thaksin’s wife Pojaman, as Shin chairman.

There is also expected to be a new chairman at AIS, a post currently held by Paiboon Limpaphayom.

The source said Temasek was interested only in AIS and would gradually sell off Shin’s other major businesses, including free-TV operator iTV Plc and budget airline Thai AirAsia.

Shin’s also has a satellite service and broadband Internet business.

Telecom, Political Reporters
The Nation

[KatoeyLover69]

Report from The Nation dated Monday 23 January 2006 :-

Shinawatra's clan sells Shin at Bt49.25/share

The Shinawatra and Damapong families have sold their combined stake of 49.59 per cent in Shin Corp Plc, at the price of Bt49.25 per share, according to an announcement by the Stock Exchange of Thailand.

The exchange said there is a big-lot transaction, and it thus halted the trading of Shin and its subsidiaries - Advanced Info Service Plc, CS Loxinfo Plc, ITV Plc and Shin Satellite Plc - until all details involving the deal are unveiled.

Shin is to host two press conferences today afternoon, expected to reveal details of the planned takeover of Temasek Holdings for the company's majority stake.

[KatoeyLover69]

Report from The Nation dated Monday 23 January 2006 :-

FOREIGN DIRECT INVESTMENT: The apple of Singapore’s eye

The city-state has invested heavily here of late, and it seems more funds are on the way. A number of Singaporean firms have made their presence felt in Thailand, but Temasek Hold-ings’ imminent takeover of Shin Corp Plc marks the beginning of a new wave of Singaporean investment in the Kingdom thanks to its strategic regional position and clear rules and regulations. Kiatpong Noychaibun of the Federation of Thai Industries believes that the inflow of investment from Singapore is likely to increase due to the huge amount of capital and limited resources in the city-state.

“Thailand has become one of the targets, mainly because of the clarity of its investment-support rules compared to other countries in this region. From here one can service the 60-million Thai population and also cover the entire region,” he said.

Kevin K Yip, senior partner of global fund-management company General Enterprise Management Services, which manages funds worth US$700 million (Bt27.4 billion), agreed. Overseeing China, Taiwan, Hong Kong and Thailand, he noted that for some time Singapore had invested in China and Hong Kong, expecting huge profits from the emerging Chinese economy.

“A few years ago China was the magnet because of its 1.2-billion population, attracting funds from Singapore and Hong Kong, but it has capital controls that do not exist here,” he said.

These, he said, which limit the movement of money in and out of the country, as well as multi-level government, reduce the attraction, and foreign investors are channelling money out of China. In Southeast Asia, the Philippines and Indonesia are facing political instability, and Malaysia has its ethnic-Chinese problem, giving Thailand the highest potential with its political stability and absence of capital controls, he said.

“Aside from funds, what is coming to Thailand is direct investment, mostly in real estate and the service sector including telecoms and consumer-related business.” he said.

Since the financial crisis, a bunch of Singaporean investors have made their presence felt in the Kingdom. The most prominent is the Government of Singapore Investment Corp (GIC) , an investment arm of the government which has acquired shares in a number of blue-chip listed companies, including Thailand’s largest property firm Land & Houses Plc, Advanced Info Service Plc and PTT Plc.

After GIC comes Temasek Holdings. Though a later arrival, it is making the bigger move. Through Singapore Telecommunications, of which it owns 60 per cent, Temasek indirectly bought a 19-per-cent stake in AIS in 1999.

And if its takeover of Shin Corp Plc is wrapped up today as expected, Temasek will be in closer focus, for the deal could be worth nearly Bt80 billion, making it the biggest acquisition in Thai history. This is not surprising now that the trade-dependent Singaporean economy is expected to grow 3-5 per cent this year, after better-than-forecast growth of 5.7 per cent in 2005. In November its foreign reserves exceeded US$114 billion.

Thai companies in the service sector are apparently the most attractive targets, led by commercial banks. From minority stakes in Thai financial institutions, Singaporean banks have been expanding here since the crisis of 1997.

In the first quarter of 1998, DBS Bank increased its investment in Thai Danu Bank (since renamed DBS Thai Danu Bank) from a minority shareholding to more than 50 per cent, with an initial investment of Bt6 billion, though since the merger with Thai Military Bank, DBS Group’s stake in the resulting house has been diluted to around 10 per cent. The Singapore bank is now focusing on its credit company, Capital OK, which is jointly owned by Shin.

United Overseas Bank is also expanding. It acquired Radanasin Bank’s shares in October 1999, and its Bt6.5-billion investment made it the biggest shareholder in UOB Radanasin Bank. Last year it injected Bt22 billion to buy out Bank of Asia and merged it with UOB Radanasin. It is now represented in Thailand by United Overseas Bank (Thai).

In other sectors, Singapore’s pan-Asian consumer group Fraser & Neave in December 2005 bought a 33.3-per-cent stake in Krungthep Land Plc, a subsidiary of Property Perfect Plc; on Friday Temasek appeared as a new shareholder in Bumrungrad Plc; and Banyan Tree Group has invested billions in Thailand with its Phuket centre where service personnel are groomed to work at its worldwide properties.

While acquisitions are the most popular means, there are more and more joint ventures and even direct investment. CapitaLand has teamed up with liquor tycoon Charoen Siriwadhanabhakdi to develop luxury condominiums under the aegis of TCC Capital Land Co Ltd, and Hotel Property has invested billions in a luxury condominium building, the Met, on Sathorn.

Viboonphan Chantrachote, deputy secretary-general of the Board of Investment, expected the move to foreign direct investment (FDI) from Singapore to Thailand, particularly in electronics, auto parts and logistics management.

“Thailand is promoting the industries as clusters, so when parent companies move here, so do their subsidiaries,” she said, adding that more FDI could also flow into the Thai real-estate and agricultural sectors.

While some businesses may be fretting about takeover sprees and penetration by Singapore investment, Kosit Panpiemras, executive chairman of Bangkok Bank, sees it differently.

“Globalisation has allowed Thai companies to access overseas funds with the first wave of foreign players. It’s a normal phenomenon in the globalised world. The difference is that now Thailand is the focus of the world,” he said.

Supporting this wave is the allocation of global resources, as many countries have built up their foreign reserves at the expense of huge deficits in the United States. To make profits from these resources, some channel the excess money to the US, but many are eyeing other destinations.

“It is interesting to observe this movement, to see what consequences the inflows have. Certainly, the funds flow in now, but they could also flow out. We’re in the globalisation era, and we are changing with the globe,” he said.

Aviruth Wongbuddhapitak, chairman of Deves Insurance Plc, agreed. He does not consider Temasek’s acquisition of Shin a special case, as foreign capital moves both in and out.

“If I were Singapore, I would love Thailand too,” he said, noting that with Singaporean investors now preferring to diversify their investments within Asean, Thailand is seen as one of the most attractive places.

Business Desk
The Nation

[KatoeyLover69]

Report from The Nation dated Monday 23 January 2006 :-

FOREIGN DIRECT INVESTMENT: The apple of Singapore’s eye

The city-state has invested heavily here of late, and it seems more funds are on the way. A number of Singaporean firms have made their presence felt in Thailand, but Temasek Hold-ings’ imminent takeover of Shin Corp Plc marks the beginning of a new wave of Singaporean investment in the Kingdom thanks to its strategic regional position and clear rules and regulations. Kiatpong Noychaibun of the Federation of Thai Industries believes that the inflow of investment from Singapore is likely to increase due to the huge amount of capital and limited resources in the city-state.

“Thailand has become one of the targets, mainly because of the clarity of its investment-support rules compared to other countries in this region. From here one can service the 60-million Thai population and also cover the entire region,” he said.

Kevin K Yip, senior partner of global fund-management company General Enterprise Management Services, which manages funds worth US$700 million (Bt27.4 billion), agreed. Overseeing China, Taiwan, Hong Kong and Thailand, he noted that for some time Singapore had invested in China and Hong Kong, expecting huge profits from the emerging Chinese economy.

“A few years ago China was the magnet because of its 1.2-billion population, attracting funds from Singapore and Hong Kong, but it has capital controls that do not exist here,” he said.

These, he said, which limit the movement of money in and out of the country, as well as multi-level government, reduce the attraction, and foreign investors are channelling money out of China. In Southeast Asia, the Philippines and Indonesia are facing political instability, and Malaysia has its ethnic-Chinese problem, giving Thailand the highest potential with its political stability and absence of capital controls, he said.

“Aside from funds, what is coming to Thailand is direct investment, mostly in real estate and the service sector including telecoms and consumer-related business.” he said.

Since the financial crisis, a bunch of Singaporean investors have made their presence felt in the Kingdom. The most prominent is the Government of Singapore Investment Corp (GIC) , an investment arm of the government which has acquired shares in a number of blue-chip listed companies, including Thailand’s largest property firm Land & Houses Plc, Advanced Info Service Plc and PTT Plc.

After GIC comes Temasek Holdings. Though a later arrival, it is making the bigger move. Through Singapore Telecommunications, of which it owns 60 per cent, Temasek indirectly bought a 19-per-cent stake in AIS in 1999.

And if its takeover of Shin Corp Plc is wrapped up today as expected, Temasek will be in closer focus, for the deal could be worth nearly Bt80 billion, making it the biggest acquisition in Thai history. This is not surprising now that the trade-dependent Singaporean economy is expected to grow 3-5 per cent this year, after better-than-forecast growth of 5.7 per cent in 2005. In November its foreign reserves exceeded US$114 billion.

Thai companies in the service sector are apparently the most attractive targets, led by commercial banks. From minority stakes in Thai financial institutions, Singaporean banks have been expanding here since the crisis of 1997.

In the first quarter of 1998, DBS Bank increased its investment in Thai Danu Bank (since renamed DBS Thai Danu Bank) from a minority shareholding to more than 50 per cent, with an initial investment of Bt6 billion, though since the merger with Thai Military Bank, DBS Group’s stake in the resulting house has been diluted to around 10 per cent. The Singapore bank is now focusing on its credit company, Capital OK, which is jointly owned by Shin.

United Overseas Bank is also expanding. It acquired Radanasin Bank’s shares in October 1999, and its Bt6.5-billion investment made it the biggest shareholder in UOB Radanasin Bank. Last year it injected Bt22 billion to buy out Bank of Asia and merged it with UOB Radanasin. It is now represented in Thailand by United Overseas Bank (Thai).

In other sectors, Singapore’s pan-Asian consumer group Fraser & Neave in December 2005 bought a 33.3-per-cent stake in Krungthep Land Plc, a subsidiary of Property Perfect Plc; on Friday Temasek appeared as a new shareholder in Bumrungrad Plc; and Banyan Tree Group has invested billions in Thailand with its Phuket centre where service personnel are groomed to work at its worldwide properties.

While acquisitions are the most popular means, there are more and more joint ventures and even direct investment. CapitaLand has teamed up with liquor tycoon Charoen Siriwadhanabhakdi to develop luxury condominiums under the aegis of TCC Capital Land Co Ltd, and Hotel Property has invested billions in a luxury condominium building, the Met, on Sathorn.

Viboonphan Chantrachote, deputy secretary-general of the Board of Investment, expected the move to foreign direct investment (FDI) from Singapore to Thailand, particularly in electronics, auto parts and logistics management.

“Thailand is promoting the industries as clusters, so when parent companies move here, so do their subsidiaries,” she said, adding that more FDI could also flow into the Thai real-estate and agricultural sectors.

While some businesses may be fretting about takeover sprees and penetration by Singapore investment, Kosit Panpiemras, executive chairman of Bangkok Bank, sees it differently.

“Globalisation has allowed Thai companies to access overseas funds with the first wave of foreign players. It’s a normal phenomenon in the globalised world. The difference is that now Thailand is the focus of the world,” he said.

Supporting this wave is the allocation of global resources, as many countries have built up their foreign reserves at the expense of huge deficits in the United States. To make profits from these resources, some channel the excess money to the US, but many are eyeing other destinations.

“It is interesting to observe this movement, to see what consequences the inflows have. Certainly, the funds flow in now, but they could also flow out. We’re in the globalisation era, and we are changing with the globe,” he said.

Aviruth Wongbuddhapitak, chairman of Deves Insurance Plc, agreed. He does not consider Temasek’s acquisition of Shin a special case, as foreign capital moves both in and out.

“If I were Singapore, I would love Thailand too,” he said, noting that with Singaporean investors now preferring to diversify their investments within Asean, Thailand is seen as one of the most attractive places.

Business Desk
The Nation

[KatoeyLover69]

Report from The Nation dated Monday 23 January 2006 :-

Woman's dying wish to punish traffickers who ruined her life

Urairat Soimee, 38, said she was lured into prostitution in Japan and jailed for killing her “mama san” (pimp) before she was sent back home after authorities found she was dying of cancer. Believed to be in the last stages of the disease, Urairat said she has one last wish.

She wants to live long enough to punish the people who destroyed her life and set the stage for other victims of forced prostitution to take action against human traffickers.

“I hope that I may witness the end of this story,” said Urairat.

She has filed a Bt4.68-million civil lawsuit against three locals who allegedly lured her to Japan and forced her to work as a sex worker.

The ordeal left her with ovarian cancer, she said.

“What I want [from the fight] is not money. I am doing it for Thai women who face the same fate as I did,” she said.

In 2000, Urairat was offered a job as a waitress in Japan by neighbours.

The family next door comprised Sarit Kampa, his wife Kai Kampa and daughter Pattama Kosaka. The three were accused of being human traffickers by Urairat.

The three allegedly sent her to a Yakuza gang who forced her to provide sex to pay off a 5.5-million-yen (Bt1.9 million) debt.

She was kept in a small, old apartment controlled by a Thai “mama san”. Every day Yakuza members took her to service customers who made arrangements over the phone.

The Yakuza would take her from one customer to the next. She serviced five or six customers a day.

“I had to work from mid-day until dawn without holidays, regardless of illness or menstruation,” she said. “They watched my every step. It was a real nightmare.”

If she failed to work or received a complaint by a customer, she was fined 200,000 per incident.

After six months, she paid off Bt3.8 million but freedom appeared a distant possibility.

She learned the gang planned to sell her to another ring where she would have to start repaying debt again.

“I couldn’t stand it anymore. I heard I was to be sold to another gang to work on an island. If I appeared useless to them, I may be flung into the sea to drown. So I decided to escape.”

During her attempt to flee, Urairat, with the help of a Thai man, killed the mama san. She said it was an accident.

She was arrested and a Japanese court sentenced her to seven years in prison.

After five years she was diagnosed with ovarian cancer. To treat her, doctors removed her reproductive organs.

She was then flown home to Thailand to spend her remaining years.

At that time, the Japanese authorities were informed of how Urairat was tricked into the flesh trade.

Her three Thai agents were soon arrested in Thailand and Phetchabun province’s Lom Sak criminal court gave them a 13-year jail sentence.

She said there were many Thai women, even retards, who were forced into prostitution in Japan. Many were given drugs or beaten, she said.

Last October, Urairat returned home in Phetchabun where her family, including her husband, son and daughters, tearfully received her.

Urairat’s adopted mother, Lamyai Kaewkerd, 62, said: “It was torturous period for me as I did not know what had become of her. She went to Japan and then she was ‘missing’ until she turned up in jail. The agents came and all they said was ‘Urairat killed somebody’.”

The reunion may prove to be short as the cancer had spread to several parts of her body. They also live in fear, saying they had been threatened by the agents.

“I am afraid but I won’t surrender. I want to unmask the traffickers to the public. I want the world to know some Thai women are not willing to be prostitutes and they had been forced into it,” Urairat said.

Chatrarat Kaewmorakot
The Nation

[KatoeyLover69]

Report from The Nation dated Monday 23 January 2006 :-

Bangkok condo sales slow

Sales of condominiums in central Bangkok have slowed, due mainly to the rapid growth in supply, according to real estate service and investment management firm Jones Lang LaSalle.

However, the average asking prices continue increasing as several new projects that were launched last year were in the high-end segment, the company said in a statement.

According to Jones Lang, there are 47,500 condominium units in central Bangkok. Another 12,160 units are being built. While finished buildings are 98 per cent sold out, projects under construction and those that are still on the drawing boards are sold out 66 per cent on average.

“As predicted, conditions in the condominium market in central Bangkok have softened with average sales rates slowing. This has not been the result of weakened demand, but the rapid growth of supply which demand could not keep pace with,” said Suphin Mechuchep, managing director of Jones Lang.

“Though the market outlook for 2006 is not as bright as 2005 following the rising interest rates that are expected to weaken buyers’ spending power, we remain optimistic that the market overall will not experience any big crash, provided that most of the existing developers in this sector are well experienced and know what their target customers are looking for,” Suphin added. Jones Lang’s study indicates that there has been an average of 6,000 new units launched annually in central Bangkok over the past three years, while an average of 5,500 units in both completed projects and projects that were newly launched were sold each year over the same period.

In central Bangkok, there are currently 5,300 units remaining unsold. In theory, if there were no new condominium projects launched this year and demand continued at the same level as in 2005, all of the remaining units would be sold by the end of the year.

Jones Lang’s findings show that the average asking price of all grades of condominiums in central Bangkok rose by almost 10 per cent, from Bt65,800 per square metre in January 2005 to Bt72,100 per square metre at the end of the year, and by 90 per cent from the bottom level in December 2000.

[U-Need]

BANGKOK, Jan 23 (TNA) – Last Update : 2006-01-23 / 13:17:33 (GMT+7:00)

The Thai baht has strengthened to nearly 39 to the US dollar this morning since there is an inflow of huge foreign capital into the market for an acquisition of shares of Shin Corporation Public Company Limited, according to money dealer.

Aniruth Pimpunth of Bank of Ayudhya Public Company Limited said the money market opened this morning with the baht appreciating to 39.13-39.15 to the dollar and reaching 39.05-39.07 to the dollar during the trading.

The sharp appreciation was attributed to the inflow of large foreign capital from Singapore into the market for the purchase of shares of Shin Corp and its subsidiaries as well as equities of Bamrungrad Hospital Public Company Limited.

He said the US greenback had also weakened in expectation that the US Federal Reserve would raise key interest rates by 0.25 per cent for a final time. Then, the interest rates would turn to decline gradually.

Analysts had earlier projected the Thai baht would continue to appreciate to 38.30 to the dollar in the first or second quarters of this year.

Manoon Siriwan, Senior Executive Vice President of Bangchak Petroleum Public Company Limited, said although the baht appreciation would help reduce costs of oil imports to a certain extent, it had been already recorded in an oil trading account.

So, it is expected local fuel prices would rise further. But when they would edge up depended on a decision of PTT Public Company Limited, the country’s giant oil trader.

He said fuel oil prices had surged because of the nuclear project in Iran, hostage-taking of Shell Corporation’s staff in Nigeria, and cold weather in many regions.

Thai Oil Public Company Limited reported a crude price in West Texas rose by US$1.33 per barrel to $68.60 per barrel, the highest in five months.

Refined fuel prices in Singapore also edged up with that of gasoline increasing by $0.75 per barrel to $67.96 per barrel and that of diesel by $0.96 to $69.16 in the same direction with crude prices in Middle East. (TNA) – E005

[U-Need]

LAMPANG, Jan 23 (TNA) -Last Update : 2006-01-23 / 09:52:22 (GMT+7:00)

Thailand's northern Lampang Province is developing itself to become a national logistics centre in the upper North.

Deputy Lampang Governor Wanchai Suthiwarachai said on Sunday that the governor had called a meeting of all district chiefs in the province to discuss the plan.

"The plan, when completed, will bring prosperity to not only the province and neighbouring areas in the North, but also the nation as a whole," he told journalists.

"This's because Lampang will become a key gate to expanding trade and business contacts between Thailand and neighbouring countries located North of Thailand," he noted.

The deputy governor said experts would be invited to study potential districts in the province to be selected and developed as the focal location for the planned northern logistics centre. (TNA)--E002

[U-Need]

SURAT THANI, Jan 23 (TNA) - A new naturally pristine resort island has been discovered in Thailand's southern Surat Thani Province and has been declared as a pollution-free tourist destination.

Deputy Governor of Surat Thani Thawatchai Terdphao told journalists on Monday that "Koh Tan", the newly-discovered resort island, is located three kilometres South of Koh Samui.

The resort island with white-sand beach and abundant resources and ecological attractions was discovered in a recent survey by local authorities, he disclosed.

Deep in the sea around the isle of 18 household-dwellers currently, there are plenty of charmful reefs and variety of attractive sea-lives, where hundreds of tourists and divers will be welcome daily in the near future, according to the deputy governor.

"Koh Tan has been declared as a pollution-free tourist destination and the province is developing a town planning and infrastructure on the island, including local power system and communication networks," he said.

"To preserve its pristine nature and environment, local authorities have decided to ban all engine-based vehicles and motocycles from the isle," added the deputy governor. (TNA)--E002

[U-Need]

BANGKOK, Jan 23 (TNA) – Last Update : 2006-01-23 / 12:39:14 (GMT+7:00)

The property business is likely to grow 10-15 per cent this year, boosted by the implementation of government mega-infrastructure projects, according to an industry executive.

Chuan Tangmatitham, Executive Chairman of M.K. Real Estate Development Public Company Limited, said here on Monday that the property market would be engulfed with many negative factors such as higher interest and inflation rates, as well as fuel price volatility this year.

However, there exist several positive factors to offset them.

Included are the country's economic growth projection of 4.5-5.5 per cent, declined trade deficits, improved exports and investment in mega-projects.

Given these factors, it is forecast that the real estate market this year will expand around 10-15 per cent.

“Although lending rates are likely to increase by 1-2%, it is not high when compared with the rates in 1995-1996 that stayed at around 10%. Because of this, we believe people will be able to take the increased interest burdens,” said Mr. Chuan. (TNA) – E005