INVESTMENT
Japanese investors admit that concern over Thailand's political instability are growing amid ongoing anti-government demonstrations, but that any real impact has yet to be felt.
INFLATION
The world's food crisis is expected to last for another five years, but expensive food is here to stay, Thailand's National Food Institute predicts. An estimated 805.4 million people in the world are still living below the standard of daily food intake, said the institute's director, Yuthasak Supasorn.
One of the more famous cliches about monetary policy comes from William McChesney Martin, the Fed chairman in the 1950s and 1960s, who said a central bank's job is ''to take away the punch bowl just as the party gets going.'' For Tarisa Watanagase, it may be debatable when the party actually began. But no one has ever said that popularity was a prerequisite for the post of the governor of the Bank of Thailand.
Regulators will charge only 20 million baht for a new securities business licence and five million each for mutual fund and private licences starting in 2012, according to the Securities and Exchange Commission. The new licensing framework comes as regulators prepare for the full liberalisation of the securities sector over the next several years.
STOCKS
The Stock Exchange of Thailand and the FTSE Group will launch an Islamic index and customised sector indices within the next six months.
CONSUMER FINANCE
The consumer finance provider GE Money expects growth to slow to 10% this year from 15% last year on lower consumer purchasing power, rising inflation and a weaker economy.
MUTUAL FUNDS
UOB Asset Management plans to invest at least 10 million baht to promote its UOB Sure Daily fixed-income fund in a push to expand its presence in the retail market.
THE WEEKLY LINK
Managing talent in a global organisation is getting more complex and demanding than in their domestic counterparts. This is partly due to the fact that multinationals need to share resources and knowledge across a number of business units and countries.
ALTERNATIVE FUELS
The Energy Ministry will propose that the excise tax collected on E85 fuel be cut by two baht to only 0.50 baht a litre to make the alternative fuel more appealing to motorists and automakers.
Expected interest rate increases are leading the listed developer Preuksa Real Estate Plc (PS) to focus on cutting buyers' rejection rates by speeding up the unit-transfer process, said chief business officer Prasert Taedullayasatit. He said transferring housing units to customers quickly would reduce the rejection rate because the company would be able to re-sell the units more quickly.
EMPLOYMENT
The Thai employment market is at a standstill with most companies focusing on maintaining their current staffing levels while they wait for the turbulent political air to clear, says Satinee Mokaves, general manager of the online recruitment site www.jobsDB.com. Given the difficulty of creating plans even to the year-end, most companies are making weekly assessments, she said. ''If we look at the strategy of most companies, let's say they are on red alert, they are not thinking long-term ... just thinking in terms of surviving right now.''
TELECOMMUNICATIONS
Jasmine International Plc, an integrated communications service provider, is shifting its business strategy to focus only on broadband service, and aims to make broadband its new flagship business by 2010. CEO Pete Bodharamik, a son of the founder Adisai Bodharamik, said Jasmine was on the verge of a modernisation programme to refresh the company.
The Bangkok Metropolitan Administration yesterday joined True Corporation to offer wireless Internet access free of charge under its Green Bangkok WiFi campaign. The initiative is part of the BMA's Bangkok Green Agenda using wireless Internet technology to reduce energy consumption and help create a sustainable and livable city of the future.
ENTREPRENEURSHIP
Thai small and medium companies should aim to tap the upper-end Chinese market, which is expected to grow significantly in the next decade, said the market research firm Investment Trading Development Centre. The centre's director, Phusit Phensiri, said research done to forecast the economic structure of China in 2020 indicated that the number of rich Chinese would grow from 11% of the population to 23%, or more than 200 million people.
The Charoen Pokphand Group, Thailand's top agribusiness conglomerate, is considering developing wind-and solar-power projects to save costs and maintain profitability amid a sharp rise of energy prices. CP is moving toward renewable energy after successfully reducing consumption by 20% with savings totalling 1.5 billion baht through energy-saving measures across the organisation over three years.
FURNITURE
The US furniture maker Thomasville Furniture Industries Inc is optimistic about Asian markets including Thailand, which are having a modest impact from the sub-prime mortgage crisis. ''While the world is dealing with many problems including high inflation, rising gas and food prices and wars, Asia is still doing well, particularly China and India, with strong demand for furniture,'' president Edward Tiplitz said during his weekend visit in Bangkok.
TOURISM
Thailand's meeting, incentive, convention and exhibition (Mice) market is expected to be hit harder if anti-government campaigns are prolonged until next month, warn industry executives. Suchada Yuvaboon, an adviser to the Thailand Incentive and Convention Association, said ongoing protests, particularly by the People's Alliance for Democracy (PAD), had prompted some visitors from Asia including Japan, Hong Kong and Taiwan to cancel their trips.
Diageo Moet Hennessy (Thailand), the local importer and distributor of Johnnie Walker, says its whisky sales have not been affected by the slowing economy. ''Demand is still strong as our target customers are affluent people who are less affected by the situation,'' said vice-president Zanita Kajiji.
RETAILING
Thailand's electrical appliance business growth in the second half of this year is expected to drop to just 3-4% as a result of political uncertainties, rising inflation and a sluggish economy. ''The political situation is a major factor that will strongly affect consumer confidence,'' said Alongkorn Chujit, deputy managing director of LG Electronics (Thailand) Co.
RETAILING
Central Food Retail (CFR), the operator of Tops supermarkets, yesterday introduced a series of marketing activities for the second half of this year to retain shoppers who have been more hesitant to spend because of higher living costs. Phattaraporn Phenpraphat, the company's vice-president for marketing and public relations, said the company would increase the number of ''Red Hot'' discounted product items by 50% to 45 per week.
IN Brief
TRADE :Thailand plans to resume free trade talks with the United States, which were put on hold after the military coup that ousted Thaksin Shinawatra in 2006, a government spokesman said yesterday.
IN Brief
TRADE :Deputy Commerce Minister Wiroon Techapaiboon will lead a trade mission to Madagascar in mid-July, with the African nation's ban on exports of gems and precious rough stones high on the agenda.
ALTERNATIVE FUELS
The government will crack down on garage operators who exploit high demand for natural gas for vehicles (NGV) by overcharging for kit installations.
