Anything & Everything About Thailand

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84 words
24 January 2006
Thai News Service
English

Section: General News - A large number of Buddhists have been visiting Bhichai-Yatikaram Varavihara situated in Klong San District, to pay respect to a Buddha relic loaned by the Sri Lankan government.

The sacred urn will be installed at the temple for 69 days as part of the celebrations on the 60th anniversary of His Majesty the King's accession to the Throne.

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183 words
24 January 2006
Thai News Service
English

Section: General News - A century-old boat has been found in Bangpakong river, and locals believe it may have belonged to an abbot in the locality, 70 years ago.

Residents of Muang District of Chachoengsao Province have brought flowers, candles, and incense sticks to carry out religious procession for the boat that aged about 100 years. The boat recently floated to the pier of Laemtai Temple and got stuck to the pier.

Mr. Luang Ongsomboon, the local who found the boat, said that he first saw the boat when washing his hands in the river. However, he thought it was a log and pushed it away, to no success as it floated back. He then figured that it was an old boat.

Residents have lifted the boat from water and placed it in the temple. The boat is believed by locals to be the one used by the first abbot of the temple about 70 years ago. It was reported to have been stolen from the temple back then.

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BANGKOK, Jan 24 (TNA) -Last Update : 2006-01-24 / 07:49:09 (GMT+7:00)

“In the run-up to Chinese New Year celebrations late this month, Thailand's Agriculture and Cooperatives Ministry will require chicken slaughterhouses nationwide to upgrade their quality standards, the ministry announced Monday.

The ministry also ordered local authorities to pay special attention to the hygienic standards of slaughterhouses during the Chinese New Year, as chicken plays a special role in ceremonial offerings to the gods and among various kinds of food specially prepared for the occasion.

Tradition and technology are joining together under the auspices of the Ministry of Agriculture and Cooperatives to bring chicken producers and chicken consumers a healthy and prosperous New Year.

Traditionally, an entire chicken represents prosperity and wholeness and has special significance when presented ceremonially to the ancestors and the kitchen god (household spirit).

Speaking after observing state-of-the-art chicken processing at Charoen Pokphand Foods (CPF) Public Company Limited, Thailand's largest poultry producer, Agriculture and Cooperatives Minister Khunying Sudarat Keyuraphan said the ministry is drafting ministerial regulations to upgrade sanitary standards in poultry slaughterhouses across the country for the safety of consumers.

Expected to be in effect within the month, the regulation is designed to improve the hygiene of chicken products, she said, not only for the Chinese New Year, but for year-round well-being.

The quality controls of export processors do meet international requirements, the minister said, indicating that poultry produced for export is subject to more stringent regulation.

Small-scale poultry producers and processors would be affected, she indicated.

The ministry plans to help them to enter the new system.

The government may provide soft loans for them to improve their businesses, she said.

Several hundreds of local slaughterhouses in small and medium-sized business categories are still not in compliance because there was little law enforcement in the past regarding the issue.

Owners of slaughterhouses would be given six months to bring their facilities up to standard, she said.

After that they will be forced to close if the procedures in their slaughterhouses fail to meet the standard.

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609 words
24 January 2006
English

Highlights of today's newspapers:

BANGKOK POST:

- Shin Corporation chief executive Boonklee Plangsiri says he will remain as chief executive of the company although there have been changes in the company's board of directors.

- Thai shares closed up 0.35 per cent yesterday after market regulators called a halt on share trading of Shin Corporation and its subsidiaries after the Temasek Holdings takeover was confirmed.

- After weeks of denials, the largest corporate takeover in Thai history was finally completed yesterday with Singapore's Temasek holdings paying 73.3 billion baht in a cash deal for a 49 per cent stake in Shin Corp.

- Last year was a record year in the Asian fixed-income market, with more than US billion raised by Asian companies taking advantage of low interest rates and tight credit spreads.

- Bangkok Dusit Medical Services (BGH), the operator of Samitivej, BNH and Bangkok hospitals, plans to invest in a hospital in Phnom Penh following a deal to set up a new facility in Siem Reap.

- Shares of International Engineering Corp fell sharply yesterday on the Stock Exchange of Thailand as trading resumed following last week's five-day suspension.

- The Government Housing Bank is looking at overseas borrowing to expand its home-loan business as local liquidity is getting tight, according to president Khan Prachuabmoh.

- Thai Airways International has leased two more aircraft to Nok Air as part of a process enabling its sister budget carrier to take over domestic routes that the flag carrier wants to exit due to losses.

- After achieving total sales of 660 million baht last year, state-backed Allied Retail Trade Co (ART) is set to open 50 additional shops this year to increase sales to at least one billion baht.

- Samchai Steel Industries Plc projects to gain 30 per cent of the total revenue it targets this year from the sales of new steel products that will be mainly used in government megaprojects.

THE NATION:

- Three companies involved in the takeover of Shin Corp Plc Cedar Holdings Co Ltd, Aspen Holdings Co Ltd and Kularb Kaew Co Ltd were hastily established in Thailand this month, showing how intense the manoeuvres have been.

- Trading volume on the Thai stock market hit an all-time high of Bt94.6 billion yesterday, thanks to Temaseks Bt73.3-billion buyout of Shin Corp Plc (SHIN).

- MCOT yesterday signed a memorandum of understanding (MoU) with Rai Radiotelevisione Italiana, the largest broadcasting firm in Italy, to cooperate on and exchange programmes.

- Five brokerage houses are being investigated by the Stock Exchange of Thailand for possible insider trading following transactions in shares of Shin Corp Plc prior to the formal announcement to the exchange of the change in the company's shareholding structure.

- The Commerce Ministry aims to reduce oil imports 10 per cent to reduce the country's trade deficit to US$5.7 billion (Bt223 billion) this year from $7.3 billion last year.

- The Government Housing Bank (GHB) is preparing to tap investors from the Middle East who have expressed an interest in increasing their Asian asset holdings, the banks president, Khan Prachuamoh, said yesterday.

- Stock in International Engineering Plc (IEC) fell by almost 30 per cent at one point yesterday, on the first day of resuming trading after a week-long suspension as the Stock Exchange of Thailand (SET) investigated alleged stock manipulation.

- Kasikorn Research Centre said that for December 2005, commercial banks lent Bt4.61 trillion, an increase of 8.57 per cent for the year and 1.13 per cent, or Bt51.33 billion, up on the previous month.

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Published on January 23, 2006 Kavi Chongkittavorn

When Prime Minister Thaksin Shinawatra went to Washington DC last September to meet President George W Bush, they agreed that the Thai-US free-trade agreement (FTA) would be completed by this June. At a subsequent meeting with Defence Secretary Donald Rumsfeld, he also asked for US assistance in southern Thailand. Obviously there was a clear link between the trade and defence policies of the two countries.

With the FTA deadlock in Chiang Mai and the resignation of veteran diplomat Nitya Pibulsonggram last week, it has become clear that Thai-US ties are not what they once were. New and unpredictable factors have permeated the relationship. For instance, the protest movements that have their sights set on stopping the trade talks as they do not trust Thaksin would protect the Thai national interest. Moreover, if the anti-Thaksin campaign continues to grow, it will further erode his mandate.

Thai-US FTA negotiations have been going on for 18 months with little progress. The prospect of the deal being wrapped up by June is highly unlikely. The current politicking going on in Thaksin’s mind and within the trade negotiation teams have hampered the whole negotiating process. Nitya’s departure came at a time when Thaksin and Deputy Prime Minister Somkid Jatusripitak wanted to wrest control from the Foreign Ministry to expedite the talks. The former Thai chief negotiator had been a lame duck from the first day because he had no mandate whatsoever. As a retired diplmat, he has no political base and was not linked to the Thai Rak Thai Pary. Worse, Deputy Prime Minister Surakiart Sathirathai, who chose him, is no loger heading the Foreign Ministry. In contrast, Vice Commerce Minister Uttama Savanayana, who heads the new negotiating team, is Somkid’s lieutenant and has all the right connections.

The absence of a common position on the Thai side prior to Chiang Mai indicated his weakness and the lack of coordination among various Thai committees. The US informed the Thai government prior to the negotiations in 2004 that the FTA would be comprehensive, including the financial and service sectors, environmental cooperation and labour standards. In the Chiang Mai round, Thailand still failed to forge a common stance on these issues.

The US government has already stepped up pressure and informed the Thai side that talks should be ideally completed by April. Without any progress, the US investment in Thailand could be jeopardized. The national treatment for the US business contained in the Treaty of Amity and Cooperation has already expired in December. Both sides hope that the FTA will replace the treaty and provide the same privileges to Americans. New investment from the US would be hard to come by at this juncture without the privileges granted in the treaty.

In addition, both Republican and Democrat lawmakers in the US, industrial lobbyists and the media are hostile to Thailand and Thaksin at the moment. The mid-term polls later this year will also complicate the issue. If the FTA is completed on time, the Congress will have to vote on it before the Trade Promotion Authority of the US president expires in the middle of next year.

Thaksin has his own serious problems and his credibility is at stake. In 2003 he called for the launching of FTA negotiations with the US after he demonstrated tangible increased cooperation with the US on the war in Iraq and the global war on terrorism. He dispatched Thai troops to take part in the peacekeeping and rehabilitation of Iraq, and in August 2003 Hambali, al-Qaeda’s top Southeast Asian terrorist, was arrested in Thailand.

It is an open secret that the US Congress has been unhappy with Thaksin’s dictatorial tendency. When the proposal to begin FTA talks with Thailand reached Congress, it was passed by a margin of just one vote. Since then, Thaksin’s reputation has dropped to an all time low in the eyes of US lawmakers and civil-society organisations. The American media continue to attack Thaksin as a strongman who disregards human rights and democracy. Thailand’s blind support for Burma has attracted the condemnation and wrath of key US lawmakers.

Therefore, Washington was flabbergasted when Thaksin appealed for US assistance in its southern provinces last September. Previously, the prime minister had called the conflict an internal matter, insisting that it must be dealt with domestically. So far, the US government has not decided what kind of assistance to offer.

The US government is fully aware of how sensitive an issue it would be to provide assistance in the three provinces of Pattani, Yala and Narathiwat. That explains why the US is now consulting intensely with Thailand to draw up a strategy involving non-military programmes focused on civilian-military cooperation, which has proven successful in combating terrorism in the Philippines and elsewhere.

Indeed, it is difficult to gauge Thaksin’s motive in calling for US assistance. When he met Bush, he said Thailand was reluctant to sign the Proliferation Security Initiative (PSI), a global anti-terrorism measure, because he was concerned about the situation in the South and neighbouring countries. The Foreign Ministry recommended signing the PSI as it would enhance Thailand’s newly designated role as a major non-Nato ally and a partner in the broader war on terrorism. It would also complement the Container Security Initiative, which Thailand was a party in 2003. The CSI allows US officials to check containers in Laem Chabang to prevent terrorists from smuggling weapons into the US.

The ministry’s plan to inform US Secretary of State Condoleezza Rice of its decision during her brief visit last July to Phuket was halted by Thaksin at the last minute, who said it would jeopardise the security situation in the South.

Apparently, Thaksin wants to use the PSI and FTA as a bargaining chip to attract a greater US commitment to fighting terrorism in the South if the situation there worsens. If that is the case, it would have serious ramifications on Thai-US strategic relations. Although Thailand and the US are close allies, they do not have a common strategic security blueprint. Most bilateral cooperation has been based on the Thanat-Rusk Defence Agreement of 1962, or has been single-issue oriented and ad hoc.

Unlike the US, China is currently working intimately with Thailand to draft a joint strategic action plan, which gives top priority to political, defence, security and strategic cooperation. It will be signed in late March in Bangkok during the visit of Chinese Prime Minister Wen Jiabao. Last September, Thailand and the US agreed to start drafting on the first Thai-US strategic action plan, but progress has been slow.

Thaksin is playing a dangerous game with the world’s most powerful country by mixing personal and national agendas. The FTA negotations with the US should not be rushed or be held hostage to Thaksin’s problems with the South.

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BANGKOK, Jan 24 (TNA) - Last Update : 2006-01-24 / 10:25:55 (GMT+7:00)

Thailand's exports grew 15 per cent in 2005, meeting the government's target; while the export growth this year is anticipated to reach 17.5 per cent, according to the Ministry of Commerce.

The country's total export last year reached US$110.883 billion, a 15 per cent growth from the previous year, meeting the government's target, Director-General of the Department of Export Promotion Chantra Purnariksha told journalists here on Monday.

Last year's export growth was particularly boosted by expanded shipments of Thai manufactured goods of 18.5 per cent, she noted.

These included canned food, processed fruits, vegetables and chikcen, as well as frozen shrimps, automobiles and parts, computers and parts, plastic products, construction materials, gems and jewellery, printing products and cosmetics.

Mrs. Chantra said, however, that the country's total import in 2005 stood at US$118.223 billion, a 25.7 per cent year-on-year increase, spurred mainly by imports of oil (59.1 per cent), capital goods (27.2 per cent), as well as raw materials and semi final products (16.9 per cent).

Therefore, the country still faced a trade deficit of around US$7.340 billion, she reported.

The Ministry of Commerce targets that Thailand's total export in 2006 will reach US$130.288 billion, a 17.5 per cent growth from last year, according to the department's director-general.

To meet the target, the ministry would help Thai exporters penetrate new markets of around 40 per cent, while maintaining the existing markets of 60 per cent, she said.

The ministry's export promotion mission, led by Deputy Prime Minister and Commerce Minister Somkid Jatusripitak, will begin late this month in Japan, followed by countries in the Middle East, including Jordan and the United Arab Emirates (UAE), from February 18-21 and European countries, including Italy and Gernamy, in March.

Mrs. Chantra said that the stronger baht currently would remain only in the short run and would not affect the country's overall exports.

"The Department of Export Promotion has discussed the current volatility in the currency market with Bank of Thailand (BOT)'s Governor M.R. Pridiyathorn Devakula and was ensured that it would occur only in the short run. The BOT and the Ministry of Commerce also agreed that the Thai baht should be around Bt40 a US dollar on the average this year--the level where the projection of this year's export growth was base on," Mrs. Chantra told journalists.

Meanwhile, Director-General of the Department of Foreign Trade Rachane Potjanasuntorn cautioned that the country would still face a trade deficit of around US$5.712 billion this year, a drop of about 13-14 per cent from last year's figure.

The continued trade deficit would be, again, caused mainly by high oil import bills, he noted.

[KatoeyLover69]

Report from Bangkok Post dated Tuesday 24 January 2006 :-

PM: Shin sale my kids' idea : Says he'll avoid conflict of interest charges in 73-billion-baht, tax-free sell-off to Singapore's Temasek

By Bangkok Post Reporters

Prime Minister Thaksin Shinawatra yesterday gave his children all the credit for helping him avoid conflicts of interest in their sale of Shin Corp to Singapore's Temasek Holdings that will generate a tax-free windfall of 73 billion baht.

But the move was blasted by lawmakers who accused the Prime Minister of using the laws of the country for his own benefit.

Mr Thaksin insisted the sale by his family was the business of his children who held Shin Corp shares - protecting him from allegations of conflicts of interest.

''The kids would like their dad to devote himself completely to politics. The kids know their dad is working and they want Dad to do his best at work,'' he said.

''This is their decision. It took them quite a long time to make it,'' Mr Thaksin told reporters at Government House.

His family sold the controlling stake in Shin Corp to Temasek in a deal worth 73.3 billion baht, allowing the investment arm of the Singapore government to acquire a 49% stake.

But the Prime Minister was angered when reporters asked if the share sale had been delayed until the amendment of the Telecommunication Operation Act, which allows foreigners to hold 49% stakes in Thai telecoms firms from 25% previously, had been finalised.

''They are not related at all. You're just looking for a problem,'' he replied tersely.

The act, which was only recently amended, also lifted the requirement for three quarters of directors in such companies to be Thais.

The amendment was published in the Royal Gazette on Friday and took effect yesterday, the same day the historic trade of Shin Corp shares on the Stock Exchange of Thailand took place.

Korn Chatikavanij, deputy secretary-general of the Democrat party, charged that the act was amended and used in such a timely fashion to facilitate the deal in what he said was just another example of ''policy corruption''.

He added that he was not convinced by Mr Thaksin's claim that the share sale was the decision of his children.

This was also the best time for the Shinawatra family to sell the shares since the National Telecommunications Commission has not set out any new rules for mobile phone services that might affect the business of Advanced Info Service (AIS), a firm under Shin Corp, he said.

Bangkok Senator Sophon Suphapong slammed the Shin transaction, saying it was tantamount to selling off radio frequencies that were the national assets to foreigners. Other countries such as the US and Australia limited foreign holdings in their telecom firms to 25%, he said.

In 2001, the government tried to amend the act to allow greater foreign participation and over 100 senators had opposed it successfully. The attempt was repeated a few months ago and only about 10 senators voted against it, he said.

''Suddenly, the government has it [the act] amended to let foreigners hold up to a 49% stake. There is no good reason. There might have been a special order,'' Mr Sophon said.

He did not say that the legal amendment was related to the Shin Corp sale but said that both seemed to have coincided.

''The 49% holding by foreigners will ruin the value for the nation because a few people priced and sold it to foreigners. How can our children survive in the future? This will affect everything, including national security,'' he said.

He predicted the foreign shareholding would lead to higher charges for telecommunication services. The Thai public paid at least 300 billion baht annually for such services, he said.

Supinya Klangnarong, secretary-general of the Campaign for Media Reform, said the prime minister should not make jokes with his excuse that the share sale was the business of his children.

Sangsit Piriyarangsan, director of doctorate programmes at Chandrakasem Rajabhat University, said Mr Thaksin could not simply claim that the share sale did not involve him because in practice he was actually involved.

Mr Sangsit also raised concerns that the Singapore government could influence the content of Shin Corp's iTV channel, especially in terms of tourism promotion.

The academic also said that as the 2.5G mobile phone service had reached saturation point in Thailand, Shin Corp had been sold to raise funds to invest in the 3G telecommunication business.

The sale also calls into question whether the Shinawatras should be taxed for selling their shares to the Singaporean firm.

Mr Thaksin said his children would not be taxed because the money was made on the stock exchange and they might give some of their profits to charity.

His position was backed by Finance Minister Thanong Bidaya who explained that any individuals who sold shares on the stock exchange could legally enjoy income tax exemption on earnings.

But tax lawyer Ruangkrai Leekitwattana said the Shin Corp share sale should not enjoy capital gains tax exemption because Mr Thaksin's children had acquired the shares cheaper than their market price out of the stock exchange. They were not considered to have invested in the shares inside the stock exchange which would justify tax exemption, said the lawyer.

Mr Korn claimed that Temasek actually wanted control of Shin Corp's mobile phone giant AIS but its acquisition via the purchase of Shin Corp in the stock exchange was aimed at avoiding taxation.

While AIS would go to Temasek, he believed the Shinawatras would buy back other Shin Corp businesses such as iTV, CS Loxinfo and Shin Satellite.

He also thought the sale should be taxed. The sale generated a windfall gain of 73 billion baht to the Shinawatras but not a single baht was taxed, Mr Korn said.

He also said that Mr Thaksin should be setting a good example in terms of paying taxes so that the general public would follow suit.

''People must decide what kind of Prime Minister they want. Should he be one who works for his own interests and gives a few thousand baht to villagers at a time or one who devotes himself to his work without any issues over conflicts of interest?'' he said.

Ubon Ratchathani Senator Nirun Pithakwachara said the transfer of public services to foreign investors was a dangerous signal of economic colonisation

[KatoeyLover69]

Report from Bangkok Post dated Tuesday 24 January 2006 :-

PM angry over criticism on Shin share sell-off

Prime Minister Thaksin Shinawatra on Tuesday vented his frustration over wide criticism over a tax waiver for his family’s sell-off of shares of Shin Corporation Public Company Limited, reiterating the exemption of a capital gain tax is made under the Stock Exchange of Thailand’s rules and regulations.

“SET has exempted the capital gain tax for several years. The rule has been imposed since Tarin Nimmanhaeminh was the finance minister of the previous government,’’ he said.

Asked whether the deal should be subject to taxation because it generated revenue, he said no one had paid any taxes when Bangkok Post and Matichon newspapers sold shares on the stock market.

“Revenue is not the issue. It is a matter of the capital gain tax that can be exempted under the SET rules,” he said.

On criticism by some academics that why should his family not sell off Shin Corp’s shares when he assumed the premiership if he wanted to evade accusations of the conflict of interests, he said rather loudly that the deal was not easy to do like the sale of Kanom Kaeng (Chinese traditional sweet) because it involved a huge amount of money.

“The deal is worth more than 70 billion baht. It is unlike the sale of Kanom Kaeng. How many people in the world have such a huge amount to buy the shares?”

He reiterated the sell-off of the shares took place since he wanted to dedicate himself to working for the sake of the country’s interest. But how long he would do that depended on the situation.

“How long I can serve the country depends on the situation. But I promise to do it to the utmost. On February 9, it will be the fifth anniversary of my performance.

“I don’t think raising the issue of the share sell-off to undermine the political stability will work because everything is done under existing rules,’’ he said.

On news that his family planned to bring some of the money for charity, the premier said he was considering conducting a research for ways to help the poor such as the processing of agricultural output.

Asked whether the deal would set an example for possible takeover of Thai businesses by foreign investors, he said he did not think so. Rather, it is a matter of investment.

Thailand could make investment in any countries while foreign countries could do the same thing in Thailand. Now, the investment is boundless.

Asked what the Shinawatra family would do next from now on, Mr. Thaksin said personally he would concentrate working for the country. His children are expected to do petty jobs because they are still young.

[KatoeyLover69]

Report from Bangkok Post dated Tuesday 24 January 2006 :-

Ethnic Shans given Thai nationality


The Ministry of Interior has granted Thai nationality to more than 1,200 ethnic Shan people, a minority group in the mountains of northern Chiang Rai province.

The first batch of 1,209 Shan people attended a ceremony Tuesday morning, vowing to be good Thai citizens and to refrain from illegal activities particularly the illegal drug trade.

Chiang Rai governor Worakiart Somsoi personally presented them their official identification cards after local authorities had conducted a survey and compiled the documents necessary to confirm their status following the cabinet's approval on the issue.

The Interior Ministry earlier granted Thai nationality to minority ethnic groups such as Akha, Lahu, and Haw Chinese.

Meanwhile, there are more than 43,000 stateless ethnic minority people in Mae Fah Luang district, waiting for the authorities to grant them Thai nationality.

[KatoeyLover69]

Report from The Nation dated Tuesday 24 January 2006 :-

Sale had been bubbling along for months under cover of a security blanket

The sell-off of Shin Corp follows months of top secret talks between the Shinawatra family and Singapore’s Temasek Holdings and the involvement of several influential individuals.

This became known on Sunday, when a secret meeting was held to finalise details of the deal prior to its announcement yesterday.

Those present at the meeting included Wichit Surapongchai, president of Siam Commercial Bank, eminent tax-law expert Suvarn Valaisathien, representing the Shinawatra and Damapong families, and Thanachart Bank president Supadet Poonpipat, who was involved on the buyers’ side.

Also there to represent Temasek were officials of Goldman Sachs, although the financial firm had denied any involvement in the deal.

But the most important man there must have been Shin Corp Plc CEO Boonklee Plangsiri, who had denied the planned takeover all along.

Indeed, the deal started taking shape late last year when the Shinawatra and Damapong families first contacted Singapore Telecommunications about a share sale.

A source at Shin said the families proposed to sell the shares at Bt55, but SingTel chairman Chumpol Na Lamliang commented the price was too high and asked them to reduce it to Bt30 per share.

“That’s why the talks were aborted,” the source added.

The families later assigned Boonklee as their representative to propose the deal to the Singapore’s state investment arm, Temasek, which controls SingTel, the source said.

Earlier, Japan’s NTT DoCoMo, Singapore Telecom, and China Mobile were among the companies speculated to be possible buyers.

“Temasek was interested and the relevant parties and the families went to Singapore on January 6 this year to sign a letter of intent to enable it to conduct the due diligence on the deal,” the source said.

He added the letter of intent required the families and Temasek to officially conclude the deal within a month.

“The reason for the family to exit the telecom empire is that Thaksin wants to end the criticism of conflict of interest against him and his family. Thaksin first considered exiting the telecom empire two years ago, but the situation was unfavourable at that time,” the source said.

S Iswaran, Temasek’s managing director for investment, said both the Shinawatra and Damapong families and Temasek had been in extensive talks on the deal over the past six weeks.

The negotiations were not smooth. Both parties took a long time to agree on the sale price, Shin’s holdings in other subsidiaries, the reorganisation of Shin businesses after the transaction and the concern if the families would have to pay taxes after the share sales.

Suvarn was in the deal to solve this. There was a rumour that the five members of the families who held the shares would not have to pay a single satang in taxes.

Once the tax issue was resolved, so were the others. Temasek made it clear it was interested only in Advanced Info Service Plc. “They also discussed about how to make people feel that Shin was still a Thai company after the deal,” the source added.

He said the families and Temasek had initially planned to announce the deal last Monday but put it off until yesterday because the Temasek-led group had not yet finalised the method of payment for the shares.

Business Reporters
The Nation

[KatoeyLover69]

Report from The Nation dated Tuesday 24 January 2006 :-

SHIN CORP SOLD TO FOREIGNERS: Deal of the century

Temasek promises no changes to Thailand’s largest telecom company. The Shinawatra and Damapong families have netted Bt73.3 billion from the sale of their shares in Shin Corp Plc in a historic deal that some claim could eliminate Prime Minister Thaksin Shinawatra’s conflicts of interest and introduce new challenges to the Thai telecom industry.

The months-long takeover saga was wrapped up yesterday when Singapore’s Temasek Holdings and allies took over 1,488 billion shares or 49. 6 per cent of Shin’s paid-up capital at the price of Bt49.25 per share.

One of the deal’s advisers said Temasek would need an additional Bt196 billion to complete the deal: Bt76 billion for the remaining shares in Shin and another Bt122 billion for AIS shares.

The deal was wrapped up after months of speculation amid rumours that Thaksin wanted to diffuse criticism of conflicts of interest allegations by his political rivals. Thaksin was quoted as saying to Shin executives two weeks ago that his exit was meant to soften persistent criticisms of his family.

Dr Suvarn Valaisathien, who represented the families, said at a press conference yesterday that the divestment was based on “pure business reasons.”

“The families think that the telecom business has demanded a great deal of investment,” Suvarn said, adding his clients would receive the proceeds on Thursday. Suvarn said the Shinawatra family had yet to receive the cash from the share sales so they had yet to work out what to invest their money in.

He said family members had no plan to buy back shares in any interests currently owned by Shin and that the money to be gained from the deal was not subject to income taxes.

The transaction signifies the Shinawatra family’s exit from the telecom flagship that Thaksin and his wife Khunying Pojaman co-founded in 1983. But telecom industrialists said it remained to be seen if the families could really cut ties with the telecom business.

At a meeting with over 200 executives of the Shin group of companies yesterday evening, Shin CEO Boonklee Plangsiri said the deal benefited three parties. While major shareholders could clear their names on the conflicts of interest issue, buyers gained access to the nation’s cream assets. Lastly, the group had no political attachments so its executives could be promoted for regional positions.

“No executives will be changed, except Khun Yingluck [Shinawatra, a sister of Thaksin who is president of AIS]. But she remains in her post,” he was quoted as saying. He also brushed aside the rumour that Shin would sell its stakes in subsidiary ITV Plc to GMM Grammy. “That’s entirely a rumour,” he said.

Aside from the shareholding changes, only three directors at Shin will be replaced. While Boonklee remains as a director, Pojaman’s brother Bhanapot Damapong, as well as Surasak Vajasit and Arak Chonlatanon, have resigned as directors. Replacing them are Pong Sarasin, S Iswaran, Temasek’s managing director for investment, and Wichit Surapongchai, president of Siam Commercial Bank.

Pong will also replace Bhanapot as Shin’s new chairman.

AIS president Yingluck Shinawatra said yesterday her resignation would take effect by the end of next month.

While quoting the price of Bt72.31 for AIS shares, against the market price of Bt104, the new buyers announced they would introduce no change to other subsidiaries of Shin, which include iTV and Shin Satellite Plc. iTV operates a TV station while Shin Sat operates satellites, both on concessions. Prior to the announcement, there was a public outcry that both companies would fall under foreign control.

Iswaran said there would be no major changes in Shin’s business direction and both Shin and Temasek executives would later discuss in more detail how to chart the future of Shin.

Contrary to rumours that the new Shin could sell some businesses back to the Shinawatra family, Iswaran insisted Temasek had no plans for such divestitures or to delist Shin from the Stock Exchange of Thailand.

“We have a long term commitment to the group,” Iswaran said.

The deal was wrapped up in a complicated manner. Joining hands with Temasek in the takeover were Siam Commercial Bank and a newly established Thai company Kularb Kaew Co Ltd. Kularb Kaew is owned 51 per cent by Pong Sarasin, former chairman of DBS Bank, and Thanachart Bank president Supadet Poonpipat.

The tender offer for Shin and AIS shares will start on February 2 and end on March 23.

The Shinawatra family’s exit from the telecom industry leaves the Chearavanonts, who own True Corp Plc which is a major shareholder in TA Orange, as the only Thai family remaining in the field.

The Bencharongkuls were the first Thai telecom family to seek an exit by divesting all their 40 per cent stake in United Communication Industry Plc to Norway’s Telenor last October.

Sigve Brekke, chief executive of Total Access Communication (DTAC), said DTAC did not have to change its strategies to cope with the entry of Temasek into Shin.

“We’ll continue launching new products and be very active in marketing, regardless of the shareholding change in Shin,” he said.

Iswaran of Temasek said he did not believe the entry of Temasek would spur fiercer competition in the industry.

“The Thai market has already been intensely competitive [even before Temasek’s entry],” he said.

Business Reporters
The Nation

[KatoeyLover69]

Report from The Nation dated Tuesday 24 January 2006 :-

Accor opens two economy hotels in Bangkok

Accor has launched its economy hotel brand in Thailand with two new hotels –Ibis Siam Bangkok and Ibis Huamark Bangkok.

Opening rates at Ibis Huamark Bangkok start at Bt888 net a night, and Bt999 net a night at Ibis Siam Bangkok until April 30.

The entry into Thailand is part of Accor’s expansion of its economy hotel brand in the Asia-Pacific region. Ibis is already located in countries such as China, Korea, Indonesia and Australia and will make its debut later this year in India. There are 715 Ibis hotels globally in many of the world’s large cities.

The company bills the hotels as offering “a combination of modern international standard accommodation, value-for-money rates, cutting-edge facilities and prime locations in the capital”.

The economy hotels focus on no-frills accommodation.

They keep rates low by giving their employees multiple responsibilities. Reception-desk workers check guests in and out, work as cashiers and also help out in the cafe and bar, especially after dinner service ends. There are no barmen or bellhops. Ibis guests are provided with trolleys to bring their luggage to and from their rooms.

The 180-room Ibis Siam Bangkok is in Bangkok’s Pratunam shopping area within walking distance of Suansantipab Park and the Victory Monument Skytrain station. Its location is easily reached from Don Muang Airport, and is close to Chatchuchak market and shopping malls and entertainment districts, according to the company.

Ibis Huamark Bangkok features 269 rooms and is next to a shopping mall, Ramkhamhaeng University and Huamark Stadium. It is 25 km from the new Suvarnabhumi Airport and offers access to Bangkok’s central business district and Pattaya.

The Nation

[KatoeyLover69]

Report from The Nation dated Tuesday 24 January 2006 :-

TOURISM: Travel agents see boom year



TOURISM: Travel agents see boom year
Published on January 24, 2006

Sector confident its problems are behind it following poor 2005

The Association of Thai Travel Agents (ATTA) says figures from last year show an 8.5-per-cent drop in tourists handled by its member companies at Bangkok International Airport.

In 2005, ATTA members served 2,457,548 travellers at the city’s airport, compared with 2,688,455 in 2004.

The association says the decline was caused mainly by economic concerns such as rising fuel costs and strong competition from other destinations. Contributing factors included security threats in the country’s southern provinces and the long-term impact of the tsunami disaster.

The belief that most of the problems are now behind them led ATTA travel agents to express optimism yesterday that 2006 could be a “rebound year”, with record arrivals throughout the country. They believe a full recovery will come to the southern provinces later this year and next winter – the next high tourist season – could “break all records”.

Their concerns, if any, focus on possible political disturbances, escalation of the unrest in the deep South and the emergence of new competitive destinations, particularly beach resorts. Fuel surcharges on air fares are also a constant worry for the travel industry because airlines are reluctant to remove them after oil prices drop.

ATTA president Apichart Sankary and some key travel industry representatives will hold a media confer-ence today to outline their suggestions for boosting tourist arrivals this year.

According to ATTA figures, the country supplying the most visitors to its members in Thailand last year was China, with 309,738 tourists. Japan followed with 287,791, Korea with 266,954 and Singapore with 138,319. The UK was ATTA ’s top European market with 130,184 visitors, while Germany supplied 69,615 and France, 30,137.

Among other markets, 40,615 tourists came from Australia and 32,988 from the US.

ATTA members handle about 25 per cent of all tourist arrivals in Thailand. The figures do not take into account direct arrivals to Phuket handled by ATTA members on behalf of charter or tour operators. Very few overland arrivals use an ATTA member company for transfers or tours.

In December 2005, ATTA recorded 232,403 visitors, a 6.9-per-cent drop from the 249,779 visitors in December 2004. Top markets once again were China, Korea and Japan.

Suchat Sritama
The Nation

[KatoeyLover69]

Report from The Nation dated Tuesday 24 January 2006 :-

TOURISM: Travel agents see boom year



TOURISM: Travel agents see boom year
Published on January 24, 2006

Sector confident its problems are behind it following poor 2005

The Association of Thai Travel Agents (ATTA) says figures from last year show an 8.5-per-cent drop in tourists handled by its member companies at Bangkok International Airport.

In 2005, ATTA members served 2,457,548 travellers at the city’s airport, compared with 2,688,455 in 2004.

The association says the decline was caused mainly by economic concerns such as rising fuel costs and strong competition from other destinations. Contributing factors included security threats in the country’s southern provinces and the long-term impact of the tsunami disaster.

The belief that most of the problems are now behind them led ATTA travel agents to express optimism yesterday that 2006 could be a “rebound year”, with record arrivals throughout the country. They believe a full recovery will come to the southern provinces later this year and next winter – the next high tourist season – could “break all records”.

Their concerns, if any, focus on possible political disturbances, escalation of the unrest in the deep South and the emergence of new competitive destinations, particularly beach resorts. Fuel surcharges on air fares are also a constant worry for the travel industry because airlines are reluctant to remove them after oil prices drop.

ATTA president Apichart Sankary and some key travel industry representatives will hold a media confer-ence today to outline their suggestions for boosting tourist arrivals this year.

According to ATTA figures, the country supplying the most visitors to its members in Thailand last year was China, with 309,738 tourists. Japan followed with 287,791, Korea with 266,954 and Singapore with 138,319. The UK was ATTA ’s top European market with 130,184 visitors, while Germany supplied 69,615 and France, 30,137.

Among other markets, 40,615 tourists came from Australia and 32,988 from the US.

ATTA members handle about 25 per cent of all tourist arrivals in Thailand. The figures do not take into account direct arrivals to Phuket handled by ATTA members on behalf of charter or tour operators. Very few overland arrivals use an ATTA member company for transfers or tours.

In December 2005, ATTA recorded 232,403 visitors, a 6.9-per-cent drop from the 249,779 visitors in December 2004. Top markets once again were China, Korea and Japan.

Suchat Sritama
The Nation

[U-Need]

764 words
25 January 2006
Bangkok Post
English

SURASAK GLAHAN

Residents in northern provinces were last night shaken by a moderate earthquake which hit the Shan State in Burma, about 300km from Chiang Mai.

The Meteorological Department reported that the 8.42pm quake was measured at 5.7 on the Richter scale and its epicentre was in the Burmese state. It was felt throughout Thailand's northern region.

Short messages from those who were jolted flooded late-night talk shows on television.

A message from Chiang Mai reported that buildings also shook. One person from Chiang Rai said the tremblor was so strong that residents dared not move out of their homes. Similar SMS messages were also received from residents in Lampang, Lamphun and Phayao.

No damages or casualties were reported.

Meanwhile, experts at a seminar warned authorities to think of a worst case scenario and take some steps to avoid serious damage and fatalities from floods if the Srinakharin Dam in Kanchanaburi province was struck by a major quake. They urged authorities to work together to implement effective warning systems and initiate information-sharing and disclosure.

They said the dam, sitting on two active fault lines, was not designed to withstand strong earthquakes which could cause overflows as strong as a tsunami.

Pennung Warnitchai, a structural engineering expert at the Asian Institute of Technology, said Kanchanaburi could be in deep trouble if the active faults underneath the dam happen to trigger an earthquake.

He urged the Electricity Generating Authority of Thailand (Egat) which operates the dam, the National Disaster Warning Centre (NDW) and the Department of Disaster Prevention and Mitigation (DPM) to disclose all the important and sensitive information on the dam to the public.

He said information available to the public had been incomplete, not specifying how strong an earthquake the dam could withstand.

Mr Pennung, speaking at a seminar yesterday on Srinakharin dam, earthquakes, prevention and mitigation measures, held at the office of National Human Rights Commission, said most of the planning done by the DPM only involved mitigation measures but did not address preparedness and prevention. He urged Egat to disclose all information on possible damage the dam could cause and integrate it with that of the other two agencies.

If the dam is breached, it would take just a few hours for the overflows to reach Muang district of Kanchanuburi and causing floods of 2-3 metres high, said Mr Pennung. The floods would come with a high current velocity, not different from the tsunami, and cause serious damage and kill a lot of people.

Many cheap and high technology warning systems were now available to prevent such a catastrophe, he said. These systems can quickly process information on the overflow from the dam and send it to the dam's disaster prevention centre in Kanchanaburi town. They can also help prioritise risk areas and select what mode of transmission to use for sending messages.

"The National Disaster Warning Centre should install such a system because it can also access the TV pool system," said Mr Pennung. Egat also needs a back-up support system because it has engineering resources, he said. "It is a matter of commitment by related parties. But information available now is scattered among different agencies [and should be pooled and shared]," said Mr Pennung.

Thamrong Thavajjaipraya, a former Egat employee, said Egat Pcl had given false information to the public by saying that the dam could withstand an earthquake of 7.5 magnitude on the Richter scale.

As one of the engineers who built the dam, Mr Thamrong said he knew that the dam can withstand earthquakes of such magnitude only if their epicentre is at least 250km away from the dam.

If an earthquake is centred at the dam, the maximum magnitude it can withstand is 5.75, he said.

A local doctor from Kanchanaburi said his source informed him that the governor of Kanchanaburi had given the task of drafting a disaster prevention and mitigation plan to a single person. Such a task, he said, should involve every concerned party.

Geologist Prinya Nutalai said existing disaster prevention and mitigation systems were not reliable and the Kanchanaburi governor should not be in charge of planning. "It should only involve experts from central government agencies."

Anusorn Kaewkangwan, a representative from the DMT, said the department would organise workshops with local people and related agencies to draft emergency plans. He said the DMT also had requested the NDW for disaster warning systems to be installed in Kanchanaburi in which Egat had agreed to provide financial support.