The Commerce Ministry will urge Japan to enlarge its import quota for Thai rice, as part of the government's plan to boost new-harvest exports.
Commerce Minister Porntiva Nakasai yesterday said she would talk to state agencies in Japan about extending the country's import quota.
In addition, the government will offer to sell new-harvest rice to Japan as part of the ministry's plan to boost exports via government-to-government contracts.
Porntiva will accompany Prime Minister Abhisit Vejjajiva on a visit to Japan next week in a bid to forge closer economic ties.
"We hope Japan will consider importing three to four times more rice in the near future," she said, adding that the country currently imports mainly low-quality rice to supply its rice-product manufacturing sector.
Porntiva said Thailand could export an overall 2 million tonnes from the new rice crop over the remainder of the year. Of the total, 1 million tonnes will be under government-to-government contracts.
The ministry is planning to visit the Philippines to negotiate rice sales on a government-to-government basis.
It also plans to increase rice exports via government-to-government contracts to between 2 million and 3 million tonnes next year.
"Importing countries are placing orders to build up their stocks. Thai exporters also forecast rice prices will increase beyond the level during the food crisis of last year," the minister said, adding that jasmine rice would exceed Bt30,000 per tonne.
The higher-price trend derives from major importing countries having faced natural disasters that direct affected their rice production.
Yanyong Phuangrach, permanent secretary of the ministry, said the reference paddy rice for November 1-15 had been fixed.
Jasmine rice is quoted Bt14,840 per tonne, with the price gap to compensate farmers under the government's income-guarantee project at Bt460 per tonne.
Bt8,389 is quoted for white rice, Bt9,175 for Pathum Thani rice and Bt7,680 for sticky rice.
Saturday, October 31, 2009
CBRE spots opportunity in Cambodia
CB Richard Ellis Group Inc (CBRE) is opening a new office in Phnom Penh to expand its footprint in Southeast Asia. The company aims to capitalise on growing demand for professional real estate services and is also planning ahead to serve the market on Cambodia's southern coast.
"The opening of an office in Cambodia will allow CBRE to provide research,consultancy, valuation and advisory services in the country and will strengthen our broader platform in Southeast Asia,"said Daniel Parkes, country manager of CBRE Cambodia.
He said land prices in Cambodia had eased back from the sharp rises experienced since 2005. The market could be compared to Thailand, in particular Bangkok in the late 1980s, and Vietnam in the early 1990s -with a lot of potential for growth, few modern developments but latent demand.
The good news, he said, is that the government is very pro-investment and is offering a tax cap of 20%. It already offers 99-year leases to foreigners and is considering full foreign freehold.
Cambodia's Council of Ministers in July approved a sub-decree covering new co-ownership regulations, allowing legal ownership of individual apartments or condominium units, which paves the way for a law allowing foreign ownership of some property.
The new co-ownership regulations will make it possible to own units within a larger building without having title to the land it occupies. The goal is to guarantee and protect rights of legal holders in apartments or condominiums for coownership. It will also facilitate management on behalf of co-owners who live in the apartments or condominiums.
As well, the new regulations facilitate co-ownership for sale, exchange, donation, inheritance, permanent rental and collateralising of private holdings as personal ownership.
Foreigners have not been able to own Cambodian land or housing in the past.They could only rent property for their business or residence. Also, foreigners cannot buy land near borders with neighbouring countries because it could affect national sovereignty and security.
"The market is not without challenges and is coming off a low base," said Mr Parkes."There is no doubt that per-capita income in Phnom Penh is continuing to improve, with a surprisingly high number of private cars, trucks and bikes.
"Inbound retailers, while they lack a modern centre, are enjoying good business - for example, pizza franchises. There is only one modern high-rise office, Canadia Tower, which is soon to be completed. Projected rents are comparable to those of Bangkok's Grade A space."
In 2008, the GDP of Cambodia reached $9.2 billion, with tourism contributing $1.72 billion. Culture has played a key role in Cambodia in the past three decades and has created many jobs. From 2000 to 2008, GDP per capita in Cambodia increased by 158% from $286.90 to $739.
Take-up of industrial property is slow but major global companies are already buying land for assembly and manufacturing facilities, said Mr Parkes. There is also a fledgling condominium market and Korean developers have been active. There has also been a boom in new villas, with prices of up to $1 million each.
Chris Brooke, president and chief executive officer of CBRE in Asia,said the company's presence in the market would facilitate the provision of professional property services,while also supporting regional clients who have an interest in a unique emerging market.
As the capital, Phnom Penh has become a major focal point for economic and business development in recent years, said Mr Brooke. This region offers enormous business potential for further growth of domestic and foreign businesses.
In particular, backed by investment resulting from positive sentiment,Cambodia's real estate market is expected to continue its growth momentum in the years to come, particularly the resort property market along the coastline.
In the future CBRE will consider a resort office on the south coast, with the opening of the Ream airport, said Mr Parkes.
The company already has two major contracts. It is the sole agent for marketing exclusive villas on a private island, which are priced from $200,000 and come with hotel management and guaranteed returns. The company also has a key advisory role for Koh Rong, an island being positioned as an eco-tourism destination and a potential rival to Phuket and Koh Samui in Thailand.
"The opening of an office in Cambodia will allow CBRE to provide research,consultancy, valuation and advisory services in the country and will strengthen our broader platform in Southeast Asia,"said Daniel Parkes, country manager of CBRE Cambodia.
He said land prices in Cambodia had eased back from the sharp rises experienced since 2005. The market could be compared to Thailand, in particular Bangkok in the late 1980s, and Vietnam in the early 1990s -with a lot of potential for growth, few modern developments but latent demand.
The good news, he said, is that the government is very pro-investment and is offering a tax cap of 20%. It already offers 99-year leases to foreigners and is considering full foreign freehold.
Cambodia's Council of Ministers in July approved a sub-decree covering new co-ownership regulations, allowing legal ownership of individual apartments or condominium units, which paves the way for a law allowing foreign ownership of some property.
The new co-ownership regulations will make it possible to own units within a larger building without having title to the land it occupies. The goal is to guarantee and protect rights of legal holders in apartments or condominiums for coownership. It will also facilitate management on behalf of co-owners who live in the apartments or condominiums.
As well, the new regulations facilitate co-ownership for sale, exchange, donation, inheritance, permanent rental and collateralising of private holdings as personal ownership.
Foreigners have not been able to own Cambodian land or housing in the past.They could only rent property for their business or residence. Also, foreigners cannot buy land near borders with neighbouring countries because it could affect national sovereignty and security.
"The market is not without challenges and is coming off a low base," said Mr Parkes."There is no doubt that per-capita income in Phnom Penh is continuing to improve, with a surprisingly high number of private cars, trucks and bikes.
"Inbound retailers, while they lack a modern centre, are enjoying good business - for example, pizza franchises. There is only one modern high-rise office, Canadia Tower, which is soon to be completed. Projected rents are comparable to those of Bangkok's Grade A space."
In 2008, the GDP of Cambodia reached $9.2 billion, with tourism contributing $1.72 billion. Culture has played a key role in Cambodia in the past three decades and has created many jobs. From 2000 to 2008, GDP per capita in Cambodia increased by 158% from $286.90 to $739.
Take-up of industrial property is slow but major global companies are already buying land for assembly and manufacturing facilities, said Mr Parkes. There is also a fledgling condominium market and Korean developers have been active. There has also been a boom in new villas, with prices of up to $1 million each.
Chris Brooke, president and chief executive officer of CBRE in Asia,said the company's presence in the market would facilitate the provision of professional property services,while also supporting regional clients who have an interest in a unique emerging market.
As the capital, Phnom Penh has become a major focal point for economic and business development in recent years, said Mr Brooke. This region offers enormous business potential for further growth of domestic and foreign businesses.
In particular, backed by investment resulting from positive sentiment,Cambodia's real estate market is expected to continue its growth momentum in the years to come, particularly the resort property market along the coastline.
In the future CBRE will consider a resort office on the south coast, with the opening of the Ream airport, said Mr Parkes.
The company already has two major contracts. It is the sole agent for marketing exclusive villas on a private island, which are priced from $200,000 and come with hotel management and guaranteed returns. The company also has a key advisory role for Koh Rong, an island being positioned as an eco-tourism destination and a potential rival to Phuket and Koh Samui in Thailand.
Tuesday, October 20, 2009
Fed chairman warns of imbalance risks
US Federal Reserve chairman Ben Bernanke warned on Monday that Asian export-promotion policies and large US budget deficits could refuel global economic imbalances and put efforts to achieve more durable growth at risk if not curbed.
Throwing his weight behind a recent call by leaders of the Group of 20 major powers to rebalance the global economy in the wake of a devastating financial shock, Bernanke said Asian nations, like China, that enjoy large trade surpluses should discourage excess saving and boost consumption.
At the same time, he said the United States needed to increase its saving and "substantially reduce federal deficits over time."
"To achieve more balanced and durable economic growth and to reduce the risks of financial instability, we must avoid ever-increasing and unsustainable imbalances in trade and capital flows,"Bernanke said at a conference on Asia sponsored by the San Francisco Federal Reserve Bank.
He said that while trade imbalances had started to narrow as US households ramped up saving in response to a deep recession that ate at their wealth, he cautioned that the imbalances "may resume growing as the global economy recovers and trade volumes rebound."
"Policies in Asian countries that encourage exports and saving over consumption are a concern," Bernanke said,repeating a long-standing US complaint.
"Trade surpluses achieved through policies that artificially enhance incentives for domestic saving and the production of export goods distort the mix of domestic industries and the allocation of resources, resulting in an economy that is less able to meet the needs of its own citizens in the longer term,"he said.
US officials have long pressed China to allow its yuan currency to appreciate,which would lessen any price advantage Chinese goods may have in global markets. China has vowed to move toward more currency flexibility, but it has kept the yuan on a tight leash.
Bernanke praised China and other Asian nations, saying they "are looking more seriously at rebalancing" than in the past.
But he said the possibility of asset price bubbles emerging in Asia "are a concern, and that the risks could be addressed through relaxing currency constraints.
"One way to address it would be through some greater exchange rate flexibility," Bernanke said.
However, he also acknowledged the part the United States must play in addressing global imbalances by increasing savings and embarking on a moresustainable fiscal path.
The performance of the US economy and the dollar, which has fallen 7%against a basket of currencies this year,"will depend on the government's success in controlling its budget deficit,"he said.
The Obama administration said on Friday that the budget shortfall hit a record $1.4 trillion in the fiscal year that ended September 30. At 10% of GDP, it was the largest deficit since World War II.
"Our policy-makers recognise that we need to develop a fiscal exit strategy that will involve a trajectory toward sustainability," Bernanke said in response to a question.
"That is critically important in order to maintain confidence in our economy and confidence in our currency. I know that is very well understood in Washington," he added.
Throwing his weight behind a recent call by leaders of the Group of 20 major powers to rebalance the global economy in the wake of a devastating financial shock, Bernanke said Asian nations, like China, that enjoy large trade surpluses should discourage excess saving and boost consumption.
At the same time, he said the United States needed to increase its saving and "substantially reduce federal deficits over time."
"To achieve more balanced and durable economic growth and to reduce the risks of financial instability, we must avoid ever-increasing and unsustainable imbalances in trade and capital flows,"Bernanke said at a conference on Asia sponsored by the San Francisco Federal Reserve Bank.
He said that while trade imbalances had started to narrow as US households ramped up saving in response to a deep recession that ate at their wealth, he cautioned that the imbalances "may resume growing as the global economy recovers and trade volumes rebound."
"Policies in Asian countries that encourage exports and saving over consumption are a concern," Bernanke said,repeating a long-standing US complaint.
"Trade surpluses achieved through policies that artificially enhance incentives for domestic saving and the production of export goods distort the mix of domestic industries and the allocation of resources, resulting in an economy that is less able to meet the needs of its own citizens in the longer term,"he said.
US officials have long pressed China to allow its yuan currency to appreciate,which would lessen any price advantage Chinese goods may have in global markets. China has vowed to move toward more currency flexibility, but it has kept the yuan on a tight leash.
Bernanke praised China and other Asian nations, saying they "are looking more seriously at rebalancing" than in the past.
But he said the possibility of asset price bubbles emerging in Asia "are a concern, and that the risks could be addressed through relaxing currency constraints.
"One way to address it would be through some greater exchange rate flexibility," Bernanke said.
However, he also acknowledged the part the United States must play in addressing global imbalances by increasing savings and embarking on a moresustainable fiscal path.
The performance of the US economy and the dollar, which has fallen 7%against a basket of currencies this year,"will depend on the government's success in controlling its budget deficit,"he said.
The Obama administration said on Friday that the budget shortfall hit a record $1.4 trillion in the fiscal year that ended September 30. At 10% of GDP, it was the largest deficit since World War II.
"Our policy-makers recognise that we need to develop a fiscal exit strategy that will involve a trajectory toward sustainability," Bernanke said in response to a question.
"That is critically important in order to maintain confidence in our economy and confidence in our currency. I know that is very well understood in Washington," he added.
Saturday, October 17, 2009
Integration will make Asean an economic powerhouse
WITH A COMBINED economy bigger than India or South Korea and a total population of more than half a billion people, Asean has the potential to become an economic force that could rival China, India, Brazil and Russia. The absence of Asean from investors' radar screens as a unified economic unit is due to the lack of integration of the bloc's economies and financial markets. Both local and international investors still widely view the Southeast Asian region as 10 separate economies due to differences in regulations, business environment, institutional capacity and culture. Thus, further integration of Asean is necessary in order to maximise intra-regional synergies and keep the region relevant to the international economy and investors.
History is on Asean's side. The global economic and financial crisis has seen a redistribution of economic power from the developed economies to the emerging markets. The September summit of G-20 leaders in Pittsburgh was a landmark event in this shift, with the expansion of the forum from seven industrialised nations to the 20 countries with the greatest global economic influence.
Although Indonesia became the only Southeast Asian member of the G-20, Asean as a group was invited to participate in the G-20 summits in London in April 2009 and in Pittsburgh as a result of its growing influence on the global economy. The US is set to hold its first-ever summit with Asean in November, when President Barack Obama visits Singapore for the Apec meetings. These events have provided opportunities for Asean to emerge from the shadows of China and India and transform itself into an economic force in its own right.
Asean has earned its way to the high table. Its member countries have weathered the financial storm well. Economic activity did contract in some open economies, such as Singapore, Thailand and Malaysia, but the worst is over, and their economies and financial systems have suffered no collateral damage. Meanwhile, Indonesia and Vietnam are emerging as Asia's two out-performers. We estimate that Asean's purchasing power could double by 2023, creating significant opportunities in consumer products and services.
All of this reflects the fact that Asean economies have built up their resilience through years of reform and restructuring since the Asian financial crisis of 1997. The accumulation of foreign-exchange reserves has helped to maintain investor confidence and limit undue volatility, while a well-capitalised banking sector has been crucial for ensuring the smooth running of the region's economy.
Last but not least, disciplined fiscal policy has provided governments with the capacity to pump-prime, often in innovative ways, when needed.
Indeed, the Asean region has all the ingredients to become a global economic force. In 2008, its 10 members had a combined GDP of US$1.5 trillion (Bt50.34 trillion), 580 million people and total trade of $1.7 trillion (26 per cent of it intra-regional). If Asean were a single country, it would be the world's 10th-largest economy and the third-most populous country. Counting only extra-regional trade, Asean is the world's fifth-largest trading power, after the US, Germany, China and Japan. In recent years, Asean's free-trade agreements with China, India, Japan and South Korea have deepened the region's economic links with the rest of Asia.
Also, Asean as a combined economy would rank among the world's top 10 in terms of foreign direct investment inflows. Fears of China taking every FDI dollar from Asean have not been matched by reality. Asean still managed to attract $60 billion of FDI in 2008, with intra-regional investment accounting for a sizeable portion as foreign investors, especially from within Asia, see countries such as Indonesia and Vietnam as alternative manufacturing bases as the cost of doing business in China rises. In fact, relative to the sizes of their economies, Asean attracted more FDI than China, which absorbed $108 billion of FDI in 2008, while its GDP was three times the size of Asean's.
That said, further enhancements are badly needed to increase foreign investor interest in Asean. The region's economic integration is still at an early stage and much more work is required to remove barriers to the trade of goods and the free flow of capital, information, and talent. These measures are relevant to businesses as they enhance access to the whole Asean consumer market from any one member country.
Amid the rise of China and India, there are ongoing concerns that some Southeast Asian nations may be marginalised. This is primarily a result of the economic and political diversity of Asean members. For example, the World Bank's "Doing Business Survey 2010" ranks Singapore as the easiest place in the world to do business, while it ranks Laos 167th out of 181 countries. Politically, Asean's members range from Indonesia, the world's third-largest democracy (after the US and India), to Burma at the other end of the spectrum. Brunei's economy is heavily dependent on oil and gas. Thailand, Vietnam, Indonesia and Malaysia have considerable agricultural production bases. By contrast, Singapore has few, if any, natural resources and relies on imports for local consumption, and manufacturing, financial services and trading drive its economy. Singapore, Asean's richest member, has a per-capita GDP 150 times higher than its poorest, Burma, and 15 times the Asean average. While Singapore, Malaysia and Thailand boast the region's best ports, airports and transportation networks, other Asean countries are disadvantaged due to poor logistics and infrastructure.
Clearly, Asean's smaller members need a common platform to represent their interests, and Asean could become that key channel through which these members can make their voices heard.
The challenge for Asean leaders converging in Thailand this month for the 15th Asean Summit is to convince the business sector and investors that Asean is a workable concept. The Asean Charter, adopted by all 10 members in 2008, is an important step towards integration. The plan to establish an Asean Economic Community by 2015, while ambitious, is necessary to push the region's integration forward and help establish Asean as a global economic powerhouse.
History is on Asean's side. The global economic and financial crisis has seen a redistribution of economic power from the developed economies to the emerging markets. The September summit of G-20 leaders in Pittsburgh was a landmark event in this shift, with the expansion of the forum from seven industrialised nations to the 20 countries with the greatest global economic influence.
Although Indonesia became the only Southeast Asian member of the G-20, Asean as a group was invited to participate in the G-20 summits in London in April 2009 and in Pittsburgh as a result of its growing influence on the global economy. The US is set to hold its first-ever summit with Asean in November, when President Barack Obama visits Singapore for the Apec meetings. These events have provided opportunities for Asean to emerge from the shadows of China and India and transform itself into an economic force in its own right.
Asean has earned its way to the high table. Its member countries have weathered the financial storm well. Economic activity did contract in some open economies, such as Singapore, Thailand and Malaysia, but the worst is over, and their economies and financial systems have suffered no collateral damage. Meanwhile, Indonesia and Vietnam are emerging as Asia's two out-performers. We estimate that Asean's purchasing power could double by 2023, creating significant opportunities in consumer products and services.
All of this reflects the fact that Asean economies have built up their resilience through years of reform and restructuring since the Asian financial crisis of 1997. The accumulation of foreign-exchange reserves has helped to maintain investor confidence and limit undue volatility, while a well-capitalised banking sector has been crucial for ensuring the smooth running of the region's economy.
Last but not least, disciplined fiscal policy has provided governments with the capacity to pump-prime, often in innovative ways, when needed.
Indeed, the Asean region has all the ingredients to become a global economic force. In 2008, its 10 members had a combined GDP of US$1.5 trillion (Bt50.34 trillion), 580 million people and total trade of $1.7 trillion (26 per cent of it intra-regional). If Asean were a single country, it would be the world's 10th-largest economy and the third-most populous country. Counting only extra-regional trade, Asean is the world's fifth-largest trading power, after the US, Germany, China and Japan. In recent years, Asean's free-trade agreements with China, India, Japan and South Korea have deepened the region's economic links with the rest of Asia.
Also, Asean as a combined economy would rank among the world's top 10 in terms of foreign direct investment inflows. Fears of China taking every FDI dollar from Asean have not been matched by reality. Asean still managed to attract $60 billion of FDI in 2008, with intra-regional investment accounting for a sizeable portion as foreign investors, especially from within Asia, see countries such as Indonesia and Vietnam as alternative manufacturing bases as the cost of doing business in China rises. In fact, relative to the sizes of their economies, Asean attracted more FDI than China, which absorbed $108 billion of FDI in 2008, while its GDP was three times the size of Asean's.
That said, further enhancements are badly needed to increase foreign investor interest in Asean. The region's economic integration is still at an early stage and much more work is required to remove barriers to the trade of goods and the free flow of capital, information, and talent. These measures are relevant to businesses as they enhance access to the whole Asean consumer market from any one member country.
Amid the rise of China and India, there are ongoing concerns that some Southeast Asian nations may be marginalised. This is primarily a result of the economic and political diversity of Asean members. For example, the World Bank's "Doing Business Survey 2010" ranks Singapore as the easiest place in the world to do business, while it ranks Laos 167th out of 181 countries. Politically, Asean's members range from Indonesia, the world's third-largest democracy (after the US and India), to Burma at the other end of the spectrum. Brunei's economy is heavily dependent on oil and gas. Thailand, Vietnam, Indonesia and Malaysia have considerable agricultural production bases. By contrast, Singapore has few, if any, natural resources and relies on imports for local consumption, and manufacturing, financial services and trading drive its economy. Singapore, Asean's richest member, has a per-capita GDP 150 times higher than its poorest, Burma, and 15 times the Asean average. While Singapore, Malaysia and Thailand boast the region's best ports, airports and transportation networks, other Asean countries are disadvantaged due to poor logistics and infrastructure.
Clearly, Asean's smaller members need a common platform to represent their interests, and Asean could become that key channel through which these members can make their voices heard.
The challenge for Asean leaders converging in Thailand this month for the 15th Asean Summit is to convince the business sector and investors that Asean is a workable concept. The Asean Charter, adopted by all 10 members in 2008, is an important step towards integration. The plan to establish an Asean Economic Community by 2015, while ambitious, is necessary to push the region's integration forward and help establish Asean as a global economic powerhouse.
Tuesday, October 13, 2009
AFFECTED INVESTORS GO FOR SEPARATE APPEAL AGAINST RULING
Companies involved in the 76 industrial projects worth more than Bt400 billion that were halted will file separate appeals against the Central Administrative Court's injunction against them.
"We have decided to file the appeal by October 28 and will simply ask the court to cancel the suspension order," Federation of Thai Industries (FTI) vice chairman Payungsak Chartsutipol said yesterday after an informal meeting of the companies.
The companies, including the PTT and Siam Cement groups, were asked to gather more information. They will meet again today to discuss the matter in greater detail.
After the court put a brake on the projects, which were taken as evidence of the government's failure to comply with Article 67 of the Constitution, the government early this month appealed the injunction. Private companies and the Japanese Chamber of Commerce have cried foul, saying the projects should be allowed to proceed, because they had passed environmental-impact assessments (EIAs).
At a separate meeting yesterday, members of the Joint Private Committee on Commerce, Industried and Banking resolvejd to establish a special team to provide facts on industrial development in Map Ta Phut and nearby areas in Rayong province to all parties. FTI representatives will lead the team, which will be the first of its kind, and they will initially boost coordination with provincial state agencies, local communities and non-governmental organisations.
"We want to tell everyone that we [the private sector] are just as environmentally concerned as anyone else. Most of the 76 projects are joint ventures with multinational firms that emphasise environmental protection, in order to ensure their products are sellable in developed countries," said Dusit Nontanakorn, chairman of the Board of Trade and the Thai Chamber of Commerce.
Thai Bankers Association chairman Apisak Tantivorawong said Thai banks remained unaffected by the incident. Only half of the total investment was raised from bank loans and debentures.
The Cabinet today will consider legal options to ease the private sector's difficulties. A law could pave the way for establishment of an independent environmental body, while a set of EIA and health-impact assessment guidelines wil be issued.
Regarding the NGO's requests for similar moves against any polluter among the 500 projects that won EIA approval after the Constitution took effect, Prime Minister Abhisit Vejjajiva yesterday said the government was prepared to look into each case.
He said if a petition was filed, the government would appeal against the case.
Regarding complaints from industrial companies, the Royal Bank of Scotland said in a report that since the Supreme Administrative Court had accepted the government's appeal to revoke the temporary injunction, a final verdict could be expected within four to six weeks and would ultimately favour the private companies.
"We have decided to file the appeal by October 28 and will simply ask the court to cancel the suspension order," Federation of Thai Industries (FTI) vice chairman Payungsak Chartsutipol said yesterday after an informal meeting of the companies.
The companies, including the PTT and Siam Cement groups, were asked to gather more information. They will meet again today to discuss the matter in greater detail.
After the court put a brake on the projects, which were taken as evidence of the government's failure to comply with Article 67 of the Constitution, the government early this month appealed the injunction. Private companies and the Japanese Chamber of Commerce have cried foul, saying the projects should be allowed to proceed, because they had passed environmental-impact assessments (EIAs).
At a separate meeting yesterday, members of the Joint Private Committee on Commerce, Industried and Banking resolvejd to establish a special team to provide facts on industrial development in Map Ta Phut and nearby areas in Rayong province to all parties. FTI representatives will lead the team, which will be the first of its kind, and they will initially boost coordination with provincial state agencies, local communities and non-governmental organisations.
"We want to tell everyone that we [the private sector] are just as environmentally concerned as anyone else. Most of the 76 projects are joint ventures with multinational firms that emphasise environmental protection, in order to ensure their products are sellable in developed countries," said Dusit Nontanakorn, chairman of the Board of Trade and the Thai Chamber of Commerce.
Thai Bankers Association chairman Apisak Tantivorawong said Thai banks remained unaffected by the incident. Only half of the total investment was raised from bank loans and debentures.
The Cabinet today will consider legal options to ease the private sector's difficulties. A law could pave the way for establishment of an independent environmental body, while a set of EIA and health-impact assessment guidelines wil be issued.
Regarding the NGO's requests for similar moves against any polluter among the 500 projects that won EIA approval after the Constitution took effect, Prime Minister Abhisit Vejjajiva yesterday said the government was prepared to look into each case.
He said if a petition was filed, the government would appeal against the case.
Regarding complaints from industrial companies, the Royal Bank of Scotland said in a report that since the Supreme Administrative Court had accepted the government's appeal to revoke the temporary injunction, a final verdict could be expected within four to six weeks and would ultimately favour the private companies.
Monday, October 12, 2009
TEN YEARS HAVE SHOWN REMARKABLE PROGRESS IN EUROPEAN SECURITY
2009 IS A LANDMARK YEAR for the European Union's role in the world. It marks 10 years of the European Security and Defence Policy (ESDP), during which the EU became a global provider of security, making a real difference to people's lives all over the world. At the same time, we are on the threshold of a new era when then Lison Treaty enters into force and provides fresh impetus for our external action.
In 10 years, we have deployed 20 operations on three continents to help prevent violence, restore peace and rebuild after a conflict. From Kabul to Pristina, from Ramallah to Kinshasa, the Eu is monitoring borders, overseeing peace agreements, training police forces, building up criminal justice systems and protecting shipping from pirate attacks. Thanks to our achievements, we are receiving more and more calls to help in a crisis or after a war. We have the credibility, the values and the will to do this.
The EU was ahead of its time in 1999. The comprehensive, multifaceted nature of our approach was novel. And the EU remains the only organisation that can call on a full panoply of instruments and resources that complement the traditional foreign policy tools of its member states, both to pre-empt or prevent a crisis and to restore peace and rebuild institutions after a conflict.
This is where the EU's unique added value lies. We combine humanitarian aid and support for institution-building and good governance with crisis-management capacities, technical and financial assistance, and political dialogue and mediation. The EU's joint civilian-military approach makes us flexible and able to offer tailor-made solutions to complex problems. Today's conflicts demonstrate lmore clearly than ever that a military solution is neither the sole nor the best option, particularly during the stabilisation of a crisis - a truth US President Barack Obama has also emphasised.
The ESDP first cut its teeth in the Balkans. When the Yogoslav wars broke out in the 1990's we watched as our neighbourhood burned because we had no means of responding to the crisis. We learned our lesson and organised ourselves, acquiring a set of capabilities coupled with decision-making procedures and a security doctrine. In 2003, we prevented a fresh out-break of hostilities in the former Yugoslav Republic of Macedonia through our diplomatic efforts and then deployed Operation Concordia. In 2004, Operation Althea took over from the Nato peacekeeping force in Bosnia and Herzegovina. Today, we are still deeply engaged in the Balkans, fighting organised crime and building up the institutions of law and order. For example, Eulex Kosovo is the largest EU mission to date, with some 2,000 staff, working in the police and judicial system and in mobile customs teams.
The EU's crisis-management and peace-building activities are not restricted to its backyard. We have made a real difference in Africa, helping for example to provide a secure environment for elections in the Democratic Republic of Congo and protecting refugees and aid workers from the fall-out of the Darfur crisis. Last year, we mounted Eunavfor, our first-ever naval operation, to compact piracy in the waters off Somalia. Who would have guessed 10 years ago that the EU would one day lead a taskforce of 13 frigates in the Indian Ocean that would cut the success rate of pirate attacks by half?
This year the EU has 12 operations running concurrently - more than ever before. Since 2003, some 70,000 men and women have been deployed in 23 crisis-management operations. They come from EU member states and non EU countries that also take part in our operations, including Norway, Switzerland, Ukraine, Turkey and the United States.
Of these 23 millions, six have been military and the other 17 civilian. We deploy army or navy personnel when and where they are needed but our business is peace-building, not waging war. The EU is not a military alliance. The solution to any crisis, emergency or conflict must always be political our ESDP actions are always firmly anchored in political strategies, formed by consensus.
Our ESDP missions have taken us as far field as Aceh, Indonesia, where we monitored the peace agreement reached after the 2004 tsunami, following decades of civil war. Working closely with the Association of Southeast Asian Nations, we mediated between rebels land the government and oversaw the decommissioning of weapons.
As we gain experience and expertise we are mounting increasingly ambitious operations. Our success with Operation Artemis, in the Democratic Republic of Congo, where the EU intervened in 2003 after violent clashes and a humanitarian crisis in Bunia, helped prepare us to mount our Eufor operation in Chad and the Central African Republic and Euvafor Somalia, which South Africa has expressed an interest in joining.
Last year, we showed how rapidly we could mobilise when we dispatched a monitoring mission to the Caucasus in less than three weeks to help defuse the crisis between Russia and Georgia, following the EU-mediated peace agreement. As a member of the International Quartet, the EU is deeply engaged at a diplomatic level in the Middle East peace process and the moment and agreement is reached between the Isralis and Palestinians we will be ready to help implement it on the ground. We already have a mission in the West Bank helping to build up the Palestinian civil police and criminal justice system. In Somalia, we are considering security-sector reform measures to complement Eunavfor Somalia and the humanitarian aid and political support that we are already providing.
To respond to the growing calls to help tackle regional and global security challenges, the EU must improve the efficiency and coherence of its external action still further. We currently have a gap between our ambitions and our resources, which must be addressed. Clearer priorities and more sensible budgeting decisions are needed. And we need to strengthen our civilian and military capabilities and boost their funding in order to back up our political decisions.
The EU's unique, joint civilian-military approach must be further developed to make us yet more flexible. Our capacity to deploy rapid reaction forces also needs strengthening. In the second decade of ESDP, the Lisbon Treaty will put all this within the EU's grasp.
In 10 years, we have deployed 20 operations on three continents to help prevent violence, restore peace and rebuild after a conflict. From Kabul to Pristina, from Ramallah to Kinshasa, the Eu is monitoring borders, overseeing peace agreements, training police forces, building up criminal justice systems and protecting shipping from pirate attacks. Thanks to our achievements, we are receiving more and more calls to help in a crisis or after a war. We have the credibility, the values and the will to do this.
The EU was ahead of its time in 1999. The comprehensive, multifaceted nature of our approach was novel. And the EU remains the only organisation that can call on a full panoply of instruments and resources that complement the traditional foreign policy tools of its member states, both to pre-empt or prevent a crisis and to restore peace and rebuild institutions after a conflict.
This is where the EU's unique added value lies. We combine humanitarian aid and support for institution-building and good governance with crisis-management capacities, technical and financial assistance, and political dialogue and mediation. The EU's joint civilian-military approach makes us flexible and able to offer tailor-made solutions to complex problems. Today's conflicts demonstrate lmore clearly than ever that a military solution is neither the sole nor the best option, particularly during the stabilisation of a crisis - a truth US President Barack Obama has also emphasised.
The ESDP first cut its teeth in the Balkans. When the Yogoslav wars broke out in the 1990's we watched as our neighbourhood burned because we had no means of responding to the crisis. We learned our lesson and organised ourselves, acquiring a set of capabilities coupled with decision-making procedures and a security doctrine. In 2003, we prevented a fresh out-break of hostilities in the former Yugoslav Republic of Macedonia through our diplomatic efforts and then deployed Operation Concordia. In 2004, Operation Althea took over from the Nato peacekeeping force in Bosnia and Herzegovina. Today, we are still deeply engaged in the Balkans, fighting organised crime and building up the institutions of law and order. For example, Eulex Kosovo is the largest EU mission to date, with some 2,000 staff, working in the police and judicial system and in mobile customs teams.
The EU's crisis-management and peace-building activities are not restricted to its backyard. We have made a real difference in Africa, helping for example to provide a secure environment for elections in the Democratic Republic of Congo and protecting refugees and aid workers from the fall-out of the Darfur crisis. Last year, we mounted Eunavfor, our first-ever naval operation, to compact piracy in the waters off Somalia. Who would have guessed 10 years ago that the EU would one day lead a taskforce of 13 frigates in the Indian Ocean that would cut the success rate of pirate attacks by half?
This year the EU has 12 operations running concurrently - more than ever before. Since 2003, some 70,000 men and women have been deployed in 23 crisis-management operations. They come from EU member states and non EU countries that also take part in our operations, including Norway, Switzerland, Ukraine, Turkey and the United States.
Of these 23 millions, six have been military and the other 17 civilian. We deploy army or navy personnel when and where they are needed but our business is peace-building, not waging war. The EU is not a military alliance. The solution to any crisis, emergency or conflict must always be political our ESDP actions are always firmly anchored in political strategies, formed by consensus.
Our ESDP missions have taken us as far field as Aceh, Indonesia, where we monitored the peace agreement reached after the 2004 tsunami, following decades of civil war. Working closely with the Association of Southeast Asian Nations, we mediated between rebels land the government and oversaw the decommissioning of weapons.
As we gain experience and expertise we are mounting increasingly ambitious operations. Our success with Operation Artemis, in the Democratic Republic of Congo, where the EU intervened in 2003 after violent clashes and a humanitarian crisis in Bunia, helped prepare us to mount our Eufor operation in Chad and the Central African Republic and Euvafor Somalia, which South Africa has expressed an interest in joining.
Last year, we showed how rapidly we could mobilise when we dispatched a monitoring mission to the Caucasus in less than three weeks to help defuse the crisis between Russia and Georgia, following the EU-mediated peace agreement. As a member of the International Quartet, the EU is deeply engaged at a diplomatic level in the Middle East peace process and the moment and agreement is reached between the Isralis and Palestinians we will be ready to help implement it on the ground. We already have a mission in the West Bank helping to build up the Palestinian civil police and criminal justice system. In Somalia, we are considering security-sector reform measures to complement Eunavfor Somalia and the humanitarian aid and political support that we are already providing.
To respond to the growing calls to help tackle regional and global security challenges, the EU must improve the efficiency and coherence of its external action still further. We currently have a gap between our ambitions and our resources, which must be addressed. Clearer priorities and more sensible budgeting decisions are needed. And we need to strengthen our civilian and military capabilities and boost their funding in order to back up our political decisions.
The EU's unique, joint civilian-military approach must be further developed to make us yet more flexible. Our capacity to deploy rapid reaction forces also needs strengthening. In the second decade of ESDP, the Lisbon Treaty will put all this within the EU's grasp.
Sunday, October 11, 2009
A financial revolution with profound political implications
The plan to de-dollarise the oil market, discussed both in public and in secret for at least two years and widely denied last week by the usual suspects - Saudi Arabia being, as expected, the first among them - reflects a growing resentment in the Middle East, Europe and in China at America's decades-long political as well as economic world dominance.
Nowhere has this more symbolic importance than in the Middle East, where the United Arab Emirates alone holds $900 billion (29.9 trillion baht) of dollar reserves and where Saudi Arabia has been quietly coordinating its defence,armaments and oil policies with the Russians since 2007.
This does not indicate a trade war with America - not yet - but Arab Gulf regimes have been growing increasingly restive at their economic as well as political dependence on Washington for many years. Of the $7.2 trillion in international reserves,$2.1trn is held by Arab countries - China holds about $2.3trn - and the nations interested in moving away from dollar-trading in oil are believed to hold over 80% of international dollar reserves.
Saudi Arabia's denials of any such ambitions were regarded by Arab bankers as a normal part of Gulf politics. The Saudis, of course, managed to deny that Iraq had invaded Kuwait in 1990.
Saudi bankers are well aware that in nine years' time - the current timeframe for a transition away from the dollar in oil trading - China will have doubled its national income to $10trn (assuming a growth rate of 7%), at which point the US might hold no more than 20% of the world's gross income.
Such massive financial movements,encouraged by the de-dollarisation of oil, will have enormous political effects in the Middle East, especially if economic superpower rivalry between America and China comes to dominate the Arab world.Will American economic support for Israel remain as loyal in nine years' time if China and the Arabs are setting the pace in global financial markets? Indeed - perhaps with this in mind - some Israeli financiers have been expressing interest over the past two years in nondollar Arab bank investments. Whenever a change of this magnitude takes place over a number of years, it has to be commenced in secrecy.
Nor can it be denied that the very project to take oil trading away from the dollar market has deep political roots.The collapse of the Soviet Union has allowed the US to dominate the Middle East more than any other world region,and the Arabs - who can no longer contemplate an oil boycott of the kind they imposed on the West after the 1973 Middle East war - are still anxious to prove that they can flex their economic power to bring about change.
Saudi Arabia's pan-Arab offer to recognise Israel and its security in return for an Israeli withdrawal from occupied Arab land is not - according to the Saudis themselves - indefinite. If they are ignored or rebuffed, then they can search for other allies through new financial institutions to force a new Middle East peace. China will be happy to help.
Nowhere has this more symbolic importance than in the Middle East, where the United Arab Emirates alone holds $900 billion (29.9 trillion baht) of dollar reserves and where Saudi Arabia has been quietly coordinating its defence,armaments and oil policies with the Russians since 2007.
This does not indicate a trade war with America - not yet - but Arab Gulf regimes have been growing increasingly restive at their economic as well as political dependence on Washington for many years. Of the $7.2 trillion in international reserves,$2.1trn is held by Arab countries - China holds about $2.3trn - and the nations interested in moving away from dollar-trading in oil are believed to hold over 80% of international dollar reserves.
Saudi Arabia's denials of any such ambitions were regarded by Arab bankers as a normal part of Gulf politics. The Saudis, of course, managed to deny that Iraq had invaded Kuwait in 1990.
Saudi bankers are well aware that in nine years' time - the current timeframe for a transition away from the dollar in oil trading - China will have doubled its national income to $10trn (assuming a growth rate of 7%), at which point the US might hold no more than 20% of the world's gross income.
Such massive financial movements,encouraged by the de-dollarisation of oil, will have enormous political effects in the Middle East, especially if economic superpower rivalry between America and China comes to dominate the Arab world.Will American economic support for Israel remain as loyal in nine years' time if China and the Arabs are setting the pace in global financial markets? Indeed - perhaps with this in mind - some Israeli financiers have been expressing interest over the past two years in nondollar Arab bank investments. Whenever a change of this magnitude takes place over a number of years, it has to be commenced in secrecy.
Nor can it be denied that the very project to take oil trading away from the dollar market has deep political roots.The collapse of the Soviet Union has allowed the US to dominate the Middle East more than any other world region,and the Arabs - who can no longer contemplate an oil boycott of the kind they imposed on the West after the 1973 Middle East war - are still anxious to prove that they can flex their economic power to bring about change.
Saudi Arabia's pan-Arab offer to recognise Israel and its security in return for an Israeli withdrawal from occupied Arab land is not - according to the Saudis themselves - indefinite. If they are ignored or rebuffed, then they can search for other allies through new financial institutions to force a new Middle East peace. China will be happy to help.
Thursday, October 8, 2009
Amendments could unblock Map Ta Phut projects
The government plans to amend the National Environment Act as a shortterm measure to enable some investment projects suspended by a court injunction to move ahead.
Prime Minister Abhisit Vejjajiva said the government could amend Article 46 (2) of the National Environment Act to allow industrial projects that pose no threat to the environment and do not breach any laws to move forward in the short term.
The existing act requires industrial projects to run only environmentalimpact assessments (EIA).
But the proposed amendments would add a requirement for health-impact assessments (HIA) and public participation, before the creation of organic laws to set up an independent body under Section 67 of the 2007 Constitution,said Mr Abhisit.
The organic law process to set up the new body under Section 67 would take time, with the completion likely early next year.
Section 67 requires public hearings for projects seen as harmful to the environment and people's health. It requires the government to set up an independent agency to advise on such projects.
The Council of State ruled earlier that authorities could process applications in the absence of the organic law to set up the body.
Amendments to the environment act would take about three weeks before being submitted to the national environment committee for approval.
The premier yesterday met with civil servants and industrialists to discuss the Administrative Court's injunction that has suspended the operating permits of 76 industrial projects - including many at Rayong's Map Ta Phut Industrial Estate - and to attempt to resolve the issue.
Mr Abhisit quoted Kiat Sittheeamorn,head of the Thailand Trade Representative office, as reporting that foreign investors had started complaining and seeking clarification from the government over the injunction.
The prolonged conflict over invest-ment in Map Ta Phut could slow the country's economic growth in the last quarter and next year, according to the University of the Thai Chamber of Commerce (UTCC).
Thailand's growth is expected to slip 0.5 percentage points in the last quarter to between 1.5% and 2.5% from an earlier forecast of between 2% and 3%, due to the disappearance of industrial investment worth 10-20 billion baht.
This would also affect employment and the construction sector, the UTCC said.
Prime Minister Abhisit Vejjajiva said the government could amend Article 46 (2) of the National Environment Act to allow industrial projects that pose no threat to the environment and do not breach any laws to move forward in the short term.
The existing act requires industrial projects to run only environmentalimpact assessments (EIA).
But the proposed amendments would add a requirement for health-impact assessments (HIA) and public participation, before the creation of organic laws to set up an independent body under Section 67 of the 2007 Constitution,said Mr Abhisit.
The organic law process to set up the new body under Section 67 would take time, with the completion likely early next year.
Section 67 requires public hearings for projects seen as harmful to the environment and people's health. It requires the government to set up an independent agency to advise on such projects.
The Council of State ruled earlier that authorities could process applications in the absence of the organic law to set up the body.
Amendments to the environment act would take about three weeks before being submitted to the national environment committee for approval.
The premier yesterday met with civil servants and industrialists to discuss the Administrative Court's injunction that has suspended the operating permits of 76 industrial projects - including many at Rayong's Map Ta Phut Industrial Estate - and to attempt to resolve the issue.
Mr Abhisit quoted Kiat Sittheeamorn,head of the Thailand Trade Representative office, as reporting that foreign investors had started complaining and seeking clarification from the government over the injunction.
The prolonged conflict over invest-ment in Map Ta Phut could slow the country's economic growth in the last quarter and next year, according to the University of the Thai Chamber of Commerce (UTCC).
Thailand's growth is expected to slip 0.5 percentage points in the last quarter to between 1.5% and 2.5% from an earlier forecast of between 2% and 3%, due to the disappearance of industrial investment worth 10-20 billion baht.
This would also affect employment and the construction sector, the UTCC said.
Saturday, October 3, 2009
NATIONAL LOGISTICS STRATEGY "CRUCIAL TO GMS SUCCESS"
The government should draw up a national strategic logistics plan as Thailand is part of the global value chain, repositioning itself as a corridor in the Greater Mekong Subregion, a major logistics firm said yesterday.
Speaking at the "Logistics Asia 2009" seminar, SCG Logistics Management managing director Bhanumas Srisukh said: "The government should also look at Singapore as an ally reather than as a competitor."
He said the major role the government should speedily play was easing the multiplicity of dated rules and regulations relating to transportation, as well as investing more in important infrastructure such as road and rail systems.
The latter would link Thailand with GMS countries, including southern China(Yunnan), Burma, Laos and Vietnam, so that the Kingdom can be a corridor to enhance trade between the GMS region and the rest of the world, transporting goods by road to Laem Chabang Port, which can them connect to Singapore before shipping goods around the globe.
"Developing missing links from the GMS to Thailand would not only enhance the competitiveness of our exports, but also boost international trade. This would be instead of building Pak Bara Port in Satun, for which the country has drawn up a strategic logistics plan to use the port as a point of exit for the Andaman coast to link China with India," said Bhanumas.
He said that for this strategy, the country was being seen as Singapore's competitor, whereas in fact it was not ready to compete.
He added that as Singapore had develooped its logistics management system to global standards, Thailand should improve its own logistics standard to support that of Singapore as part of a logistics value chain.
Considering the Kingdom's strengths, Thailand has a central location with a coastline on two sides, is service-minded, has an extensive road network, low labour costs and a large labour pool, plus the ability to connect transportation with China,he said.
However, its weaknesses are the small size of its seaports, limited rail network, lack of skilled human resources and out-of-date rules and regulations.
Oh Bee Lock, senior vice president for corporate planning at Singapore's PSA Corp, said he regarded Thailand as an ally of Singapore, not a competitor. The two countries. therefore, can connect their transportation at the same standard level to enhance freight between Asean and other regions more rapidly and at a competitive cost.
The port of Singapore connects to 600 ports in more than 120 countries. PSA has 28 ports in 16 countries wit annual revenue of 4.4 billion Singaporean dollars (Bt104 billion) and throughput of 63 milliion containers (20-foot equivalent units).
"Logistics Asia 2009" was cohosted by the Thailand Management Association, the Thai Chamber of Commerce and the Transportation Institute.
Speaking at the "Logistics Asia 2009" seminar, SCG Logistics Management managing director Bhanumas Srisukh said: "The government should also look at Singapore as an ally reather than as a competitor."
He said the major role the government should speedily play was easing the multiplicity of dated rules and regulations relating to transportation, as well as investing more in important infrastructure such as road and rail systems.
The latter would link Thailand with GMS countries, including southern China(Yunnan), Burma, Laos and Vietnam, so that the Kingdom can be a corridor to enhance trade between the GMS region and the rest of the world, transporting goods by road to Laem Chabang Port, which can them connect to Singapore before shipping goods around the globe.
"Developing missing links from the GMS to Thailand would not only enhance the competitiveness of our exports, but also boost international trade. This would be instead of building Pak Bara Port in Satun, for which the country has drawn up a strategic logistics plan to use the port as a point of exit for the Andaman coast to link China with India," said Bhanumas.
He said that for this strategy, the country was being seen as Singapore's competitor, whereas in fact it was not ready to compete.
He added that as Singapore had develooped its logistics management system to global standards, Thailand should improve its own logistics standard to support that of Singapore as part of a logistics value chain.
Considering the Kingdom's strengths, Thailand has a central location with a coastline on two sides, is service-minded, has an extensive road network, low labour costs and a large labour pool, plus the ability to connect transportation with China,he said.
However, its weaknesses are the small size of its seaports, limited rail network, lack of skilled human resources and out-of-date rules and regulations.
Oh Bee Lock, senior vice president for corporate planning at Singapore's PSA Corp, said he regarded Thailand as an ally of Singapore, not a competitor. The two countries. therefore, can connect their transportation at the same standard level to enhance freight between Asean and other regions more rapidly and at a competitive cost.
The port of Singapore connects to 600 ports in more than 120 countries. PSA has 28 ports in 16 countries wit annual revenue of 4.4 billion Singaporean dollars (Bt104 billion) and throughput of 63 milliion containers (20-foot equivalent units).
"Logistics Asia 2009" was cohosted by the Thailand Management Association, the Thai Chamber of Commerce and the Transportation Institute.
SUCCESS OF FOOD INGREDIENTS ASIA 2009 SETS THE STAGE FOR 2010 EXPANSION
Bangkok was once again the center of attention for the food ingredients industry as Food ingredients (Fi) Asia 2009 got underway at the Queen Sirikit National Convention Center on the 9th of September.
This exciting event ran for three days and attracted over 7000 attendees from around the world. They were drawn to Fi Asia by the outstanding opportunity to network with the industry's key players and learn about the latest developments in this dynamic market.
Many attendees were particularly interested in opportunities in the rapidly growing functional food market. Dr. Damri Sukhothanang, Permanent Secretary of the Thai Ministry of Industry, underlined this trend in his opening address. He stated the industry' s current health-oriented focus has developed in response to consumers increasing affluence and health consciousness, and many companies in the region are now offering healthier food choices with high nutritional value.
The 2009 show featured a highly informative program of conderences and seminars. The first in the series was "What's New in the World of Functiional Food ingredients?" which was co-organized by the Food Science & Technology Association of Thailand (FoSTAT).
International speakers covered 18 other relevant topics and all the high level conderence events were well attended and covered by the many media companies in attendance.
In order to offer Fi Asia exibitors and visitors increased access to the ASEAN region, the Fi team will be branching out into new markets in 2010.
Fi Asia be held in Indonesia in 2010 and return to Thailand in 2011. a new event, the Fi Asia Summit, will make its debut in Vietnam in 2010 and then bring the industry to the Philippines in 2011.
This exciting event ran for three days and attracted over 7000 attendees from around the world. They were drawn to Fi Asia by the outstanding opportunity to network with the industry's key players and learn about the latest developments in this dynamic market.
Many attendees were particularly interested in opportunities in the rapidly growing functional food market. Dr. Damri Sukhothanang, Permanent Secretary of the Thai Ministry of Industry, underlined this trend in his opening address. He stated the industry' s current health-oriented focus has developed in response to consumers increasing affluence and health consciousness, and many companies in the region are now offering healthier food choices with high nutritional value.
The 2009 show featured a highly informative program of conderences and seminars. The first in the series was "What's New in the World of Functiional Food ingredients?" which was co-organized by the Food Science & Technology Association of Thailand (FoSTAT).
International speakers covered 18 other relevant topics and all the high level conderence events were well attended and covered by the many media companies in attendance.
In order to offer Fi Asia exibitors and visitors increased access to the ASEAN region, the Fi team will be branching out into new markets in 2010.
Fi Asia be held in Indonesia in 2010 and return to Thailand in 2011. a new event, the Fi Asia Summit, will make its debut in Vietnam in 2010 and then bring the industry to the Philippines in 2011.
Palm oil advocate trumpets the cause
Palm oil, a key export for Southeast Asian nations, is likely to be the biggest victim of the ongoing effort to prevent forests being levelled to make way for plantations, a study reveals.
The commodity is one of the biggest non-oil and gas exports for Indonesia and Malaysia and it is gaining ground in countries such as Laos.
These countries will likely be affected by moves to protect forests, says World Growth, a non-governmental organisation which undertook the study.
The NGO said there has been a sudden increase in hostility towards the palm oil industry which employs a large number of the region's inhabitants.
The US-based World Growth says its philosophy is to encourage economic well-being for people in the developing countries while caring for the environment but not compromising the improving of living standards.
"This campaign [against palm oil plantations] is unusual as it has started to appear in the last 12 months ahead of the Copenhagen summit," Alan Oxley,chairman of World Growth, said at a Bangkok press conference.
Mr Oxley, who is in Bangkok to attend the Bangkok Climate Change Talks, said measures to prevent some forest land being used for palm oil hampered efforts to reduce poverty and improve living standards in the region's countries.
About 40% of land in Indonesia is forest, but Mr Oxley said 20% was the normal amount a country needs to preserve to protect biodiversity.
Malaysia and Indonesia have set aside 55% and 25% respectively for forest conservation while the European average is 25%, he said.
An increase in palm oil production could provide a vital cashflow for the substantial poor populations of such countries, he said.
Mr Oxley, however, has come under heavy fire from the environmental lobby which accuses him of being a climate change sceptic. In 2006 he was named by The Australia Institute's director Clive Hamilton as one of Australia's so-called climate change "dirty dozen".
He has stated "there is no reasonable certainty that increases in atmospheric carbon dioxide from human activity cause significant global warming."
Nevertheless, he says the oil palm offers much stronger financial returns than traditional crops which could be used to help local people. A hectare of oil palm oil generates about $2,500 per year compared with $80 for rice, he said.
Studies show that about 60% to 70%of deforestation is caused by poor people growing rice, he said.
A report by the UN Food and Agriculture Organisation showed that deforestation is largely due to human settlement, not commercial crops, he said.
He also said oil palm uses less land than crop-based oilseeds, using only 0.26 hectares of land to produce one tonne of oil, while soyabean, sunflower and rapeseed need 2.2,2 and 1.5 hectares,respectively.
On claims that the oil palm industry was destroying forest biodiversity in developing countries, Mr Oxley said in Malaysia, the world's second largest producer, the crop was restricted to 20% of state land allocated for agriculture.
Issues surrounding palm oil delayed implementation of the Asean-India Free Trade Agreement, signed in Bangkok in August, he said.
One reason for the delays could be that other edible oil industry bodies are looking to undermine palm oil as a replacement for soybean, rapeseed or other vegetable oils.
"Today palm oil accounts for about 30% of the global consumption, up from 20% nearly a decade ago," he said,"this maybe prompting the oil seed producers to defend their territory."
Major palm oil producers should be wary of groups such as Friends of the Earth and Greenpeace who are campaigning for processors and consumers to boycott the commodity and for the European Union to block imports of it.
The EU Renewable Energy Directive already has restrictions on the availability of palm oil, he said.
World Growth, which Mr Oxley described as a "free market NGO", launched its "PalmOil Green Development" campaign to counter claims made by environmental groups that cutting down forest reserves to grow palm oil is negative.
World Growth, however, will not disclose its funders, leading some commentators to speculate that its backers do not support measures such as the green lobby's campaign, which they think restricts the free market.
The commodity is one of the biggest non-oil and gas exports for Indonesia and Malaysia and it is gaining ground in countries such as Laos.
These countries will likely be affected by moves to protect forests, says World Growth, a non-governmental organisation which undertook the study.
The NGO said there has been a sudden increase in hostility towards the palm oil industry which employs a large number of the region's inhabitants.
The US-based World Growth says its philosophy is to encourage economic well-being for people in the developing countries while caring for the environment but not compromising the improving of living standards.
"This campaign [against palm oil plantations] is unusual as it has started to appear in the last 12 months ahead of the Copenhagen summit," Alan Oxley,chairman of World Growth, said at a Bangkok press conference.
Mr Oxley, who is in Bangkok to attend the Bangkok Climate Change Talks, said measures to prevent some forest land being used for palm oil hampered efforts to reduce poverty and improve living standards in the region's countries.
About 40% of land in Indonesia is forest, but Mr Oxley said 20% was the normal amount a country needs to preserve to protect biodiversity.
Malaysia and Indonesia have set aside 55% and 25% respectively for forest conservation while the European average is 25%, he said.
An increase in palm oil production could provide a vital cashflow for the substantial poor populations of such countries, he said.
Mr Oxley, however, has come under heavy fire from the environmental lobby which accuses him of being a climate change sceptic. In 2006 he was named by The Australia Institute's director Clive Hamilton as one of Australia's so-called climate change "dirty dozen".
He has stated "there is no reasonable certainty that increases in atmospheric carbon dioxide from human activity cause significant global warming."
Nevertheless, he says the oil palm offers much stronger financial returns than traditional crops which could be used to help local people. A hectare of oil palm oil generates about $2,500 per year compared with $80 for rice, he said.
Studies show that about 60% to 70%of deforestation is caused by poor people growing rice, he said.
A report by the UN Food and Agriculture Organisation showed that deforestation is largely due to human settlement, not commercial crops, he said.
He also said oil palm uses less land than crop-based oilseeds, using only 0.26 hectares of land to produce one tonne of oil, while soyabean, sunflower and rapeseed need 2.2,2 and 1.5 hectares,respectively.
On claims that the oil palm industry was destroying forest biodiversity in developing countries, Mr Oxley said in Malaysia, the world's second largest producer, the crop was restricted to 20% of state land allocated for agriculture.
Issues surrounding palm oil delayed implementation of the Asean-India Free Trade Agreement, signed in Bangkok in August, he said.
One reason for the delays could be that other edible oil industry bodies are looking to undermine palm oil as a replacement for soybean, rapeseed or other vegetable oils.
"Today palm oil accounts for about 30% of the global consumption, up from 20% nearly a decade ago," he said,"this maybe prompting the oil seed producers to defend their territory."
Major palm oil producers should be wary of groups such as Friends of the Earth and Greenpeace who are campaigning for processors and consumers to boycott the commodity and for the European Union to block imports of it.
The EU Renewable Energy Directive already has restrictions on the availability of palm oil, he said.
World Growth, which Mr Oxley described as a "free market NGO", launched its "PalmOil Green Development" campaign to counter claims made by environmental groups that cutting down forest reserves to grow palm oil is negative.
World Growth, however, will not disclose its funders, leading some commentators to speculate that its backers do not support measures such as the green lobby's campaign, which they think restricts the free market.
India's absence could push Thai rice exports to record
Rice exports from Thailand may beat forecasts this year and hit a record in 2010 on higher African demand and a lack of Indian exports, says Chookiat Ophaswongse, president of the Thai Rice Exporters Association.
"Thailand benefits from India's absence in the world market," Mr Chookiat said yesterday.
He said exports could be between 8.7 million and 9 million tonnes this year,beating a forecast of 8.5 million, possibly reaching 10 million tonnes next year.
India suspended most rice exports last year amid concern of a global shortage, which helped trigger record prices.Another hike could occur if rising energy costs raise prices of commodities, said Mr Chookiat.
"Thai rice exports next year will hit a new high," said Paka-on Tipayatanadaja,an analyst at the Kasikorn Research Center."African demand will expand further in the fourth quarter of this year and into the first half of 2010."
Rice futures in Chicago peaked at US$25.07 per 100 pounds in April 2008 as India was joined by Vietnam and Cambodia in restricting exports, prompting a rush for supplies from buyers such as the Philippines, the top importer.Rice traded yesterday at $13.30 per 100 pounds.
"The risk of a food crisis reoccurs every five to six years," said Mr Chookiat."Rice prices could hit a record should global oil prices rise above $120 a barrel."
The surge last year came as crude prices peaked at $147 a barrel, pushing up farming costs, including fertiliser.Crude traded yesterday at $70.11.
The outlook for Thai rice exports con-tinues to be robust, said Mr Chookiat. A drought in India this year may help to prolong that nation's shipment curbs.
Thai rice exports reached a record 10.14 million tonnes in 2004, and last year totalled 10.01 million.
Output in India will total 82 million tonnes this crop year, according to the US Foreign Agricultural Service. That compares with an earlier forecast of 88 million, and the record 99.2 million harvested in the season ended Sept 30.
Thailand's 100% grade-B white rice,the benchmark export variety, touched a record $1,038 a tonne in May last year.This week it was at $554 a tonne, the lowest level since May 20. The exporters association sets prices every Wednesday.
Thai exports of parboiled rice to Africa may rise to about 4.5 million to 5 million tonnes this year, beating a previous forecast of 3.5 million, and may increase to 5.5 million tonnes next year, said Mr Chookiat. In the 2009-10 crop year, starting in November, Thai rice production will total 23.5 million tonnes,1.2% more than in the previous year, according to the Agriculture Ministry.
"Thailand benefits from India's absence in the world market," Mr Chookiat said yesterday.
He said exports could be between 8.7 million and 9 million tonnes this year,beating a forecast of 8.5 million, possibly reaching 10 million tonnes next year.
India suspended most rice exports last year amid concern of a global shortage, which helped trigger record prices.Another hike could occur if rising energy costs raise prices of commodities, said Mr Chookiat.
"Thai rice exports next year will hit a new high," said Paka-on Tipayatanadaja,an analyst at the Kasikorn Research Center."African demand will expand further in the fourth quarter of this year and into the first half of 2010."
Rice futures in Chicago peaked at US$25.07 per 100 pounds in April 2008 as India was joined by Vietnam and Cambodia in restricting exports, prompting a rush for supplies from buyers such as the Philippines, the top importer.Rice traded yesterday at $13.30 per 100 pounds.
"The risk of a food crisis reoccurs every five to six years," said Mr Chookiat."Rice prices could hit a record should global oil prices rise above $120 a barrel."
The surge last year came as crude prices peaked at $147 a barrel, pushing up farming costs, including fertiliser.Crude traded yesterday at $70.11.
The outlook for Thai rice exports con-tinues to be robust, said Mr Chookiat. A drought in India this year may help to prolong that nation's shipment curbs.
Thai rice exports reached a record 10.14 million tonnes in 2004, and last year totalled 10.01 million.
Output in India will total 82 million tonnes this crop year, according to the US Foreign Agricultural Service. That compares with an earlier forecast of 88 million, and the record 99.2 million harvested in the season ended Sept 30.
Thailand's 100% grade-B white rice,the benchmark export variety, touched a record $1,038 a tonne in May last year.This week it was at $554 a tonne, the lowest level since May 20. The exporters association sets prices every Wednesday.
Thai exports of parboiled rice to Africa may rise to about 4.5 million to 5 million tonnes this year, beating a previous forecast of 3.5 million, and may increase to 5.5 million tonnes next year, said Mr Chookiat. In the 2009-10 crop year, starting in November, Thai rice production will total 23.5 million tonnes,1.2% more than in the previous year, according to the Agriculture Ministry.
THAI BUSINESSS URGED TO SHAPE UP BEFORE AEC
Impriving production capability and increasing the efficiency of labour wil be crucial for Thai enterprises if they are to cope with tougher competition under the move towards an Asean Economic Community(AEC)by 2015, leading businessmen said yesterday.
Dusit Nontanakorn, chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said enterprises should urgently prepare for seamless trade and investment under the AEC ot ensure their competitiveness with other countries.
"To do so, businessmen must focus on increasing production, and on labour efficiencies. Thai enterprises can tap a larger market, which will go up from 65 million at present to 560 million under a single market. Enterprises must urgently develop their businesses to reap the benefits from the AEC," said Dusit.
Asia and countries in Asean are becoming attractive as their economies are expected to come out of the global crisis ahead of other nations. In addition, the emerging econimic power of India and China has prompted the West to look eastwards to sustain the world's economic growth.
The Board of Trade, Thailand Management Assocation and Thai Institute of Directors Association, in association with the International Chamber of Commerce, will launch the first "Asean Business Forum" in Bangkok on October 26-27, after the Asean Summit in Hua Hin.
The event aims to help Asean businesses boost their potential to compete after the trade and investment liberalisation among the 10 asean countries, as well as with foreign counterparts.
The Asean Business Forum will be held at the Plaza Athenee Hotel.
Charnchai Charuvasts, president and CEO of the Thai Insitute of Directors Association, said the AEC could be seen as an opportunity or a threat by Thai enterprises.
Thai traders can access a larger market for trading and investing, while Thailand will also allow other countries to trade and invest freely in the Kingdom. If Thai businessmen could develop their efficiency, they would enjoy better business growth.
However, if they fail to develop their business efficiency, they could suffer as a result of the fiercer competition from other Asean enterprises, said Charnchai.
Thailand Mangement Association president Preecha Chaochotechuang said the Asean Business Forum is expected to attract over 500 entrepreneurs. About 100 will come from foreign enterprise.
Dusit Nontanakorn, chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said enterprises should urgently prepare for seamless trade and investment under the AEC ot ensure their competitiveness with other countries.
"To do so, businessmen must focus on increasing production, and on labour efficiencies. Thai enterprises can tap a larger market, which will go up from 65 million at present to 560 million under a single market. Enterprises must urgently develop their businesses to reap the benefits from the AEC," said Dusit.
Asia and countries in Asean are becoming attractive as their economies are expected to come out of the global crisis ahead of other nations. In addition, the emerging econimic power of India and China has prompted the West to look eastwards to sustain the world's economic growth.
The Board of Trade, Thailand Management Assocation and Thai Institute of Directors Association, in association with the International Chamber of Commerce, will launch the first "Asean Business Forum" in Bangkok on October 26-27, after the Asean Summit in Hua Hin.
The event aims to help Asean businesses boost their potential to compete after the trade and investment liberalisation among the 10 asean countries, as well as with foreign counterparts.
The Asean Business Forum will be held at the Plaza Athenee Hotel.
Charnchai Charuvasts, president and CEO of the Thai Insitute of Directors Association, said the AEC could be seen as an opportunity or a threat by Thai enterprises.
Thai traders can access a larger market for trading and investing, while Thailand will also allow other countries to trade and invest freely in the Kingdom. If Thai businessmen could develop their efficiency, they would enjoy better business growth.
However, if they fail to develop their business efficiency, they could suffer as a result of the fiercer competition from other Asean enterprises, said Charnchai.
Thailand Mangement Association president Preecha Chaochotechuang said the Asean Business Forum is expected to attract over 500 entrepreneurs. About 100 will come from foreign enterprise.
ASEAN PLANS INFRASTRUCTURE FUND
Asean plans to set up a US$1-billion(Bt33.5 billion)infrastructure fund and will join Japan, China and South Korea in creating a $500-million bond-guarantee fund for investment in the region, Finance Minister Korn Chatikavanij said yesterday.
Meanwhile, the Finance Ministry will offer more tax incentives to multinational irms if they choose Thailand as the base for their regional head-quarters.
The fund plans will be discussed on the sidelines of the annual meeting of the World Bank and the International Monetary Fund, being held in Istanbul from today until Wednesday, Korn said via videoconference from the Turkish city.
Korn, who is currently chairman of the Asean Finance Ministers, said the 10-member regional grouping would discuss the structure of the infrastructure fund, which will be designed to raise finance and then invest in infrastructure projects in the region.
The size of the fund could be about $1 billion, he said. Asean will ask for assistance from the Asian Development Bank(ADB)and the World Bank about how to run the fund and how to create bonds rated up to "AAA".
A high credit rating for the bonds would allow central banks in the region to subscribe to them. The Bank of Thailand, for instance, can invest only in AAA-rated baonds, said Korn. Currently most of the central banks invest in US treasuries.
Many critics have warned that US dollar assets will tend to depreciate due to the weak US economy.
Korn also said Asean and East Asia's three largest economies-Japan, China and South Korea-would discuss a plan to set up an East Asian bond-guarantee fund.
The fund would guarantee bonds issued by local companies in the region in local currencies. The guarantee scheme would support private firms to raise funds from investors at lower cost, the minister said.
"The big tree - Japan, China and South Korea - have already agreed to put in a combined $500 million for the bond-guarantee scheme," he said.
The ADB and Asean will consider how much each should contribute to the fund, he added.
About 70 per cent of the international reserves accumulated by central banks are in the region, which could utilise the money for investment, said Korn,
Asean and the three countries will also discuss implementation of the reserve pool worth $120 billion that was agreed earlier.
The reserve pool - known as Chiang Mai Initiative Multilateralisation (CMIM) - will provide emergency financing to members facing an economc crisis like the one that happened in 1997.
Korn said the office of the CMIM should be located in Thailand.
Meanwhile, Deputy Finance Minister Pradit Pataraprasit said the ministry would offer more tax incentives and other privileges to lure multinational corporations to set up their regional headquarters here.
He said that from a survey conducted in 2007, only nine multinational firms chose Thailand as a base for their regional headquarters.
The top five destinations were Singapore, China, Hong Kong, Japan and South Korea. Singapore and China housed 57 and 56 regional headquarters, respectively.
Meanwhile, the Finance Ministry will offer more tax incentives to multinational irms if they choose Thailand as the base for their regional head-quarters.
The fund plans will be discussed on the sidelines of the annual meeting of the World Bank and the International Monetary Fund, being held in Istanbul from today until Wednesday, Korn said via videoconference from the Turkish city.
Korn, who is currently chairman of the Asean Finance Ministers, said the 10-member regional grouping would discuss the structure of the infrastructure fund, which will be designed to raise finance and then invest in infrastructure projects in the region.
The size of the fund could be about $1 billion, he said. Asean will ask for assistance from the Asian Development Bank(ADB)and the World Bank about how to run the fund and how to create bonds rated up to "AAA".
A high credit rating for the bonds would allow central banks in the region to subscribe to them. The Bank of Thailand, for instance, can invest only in AAA-rated baonds, said Korn. Currently most of the central banks invest in US treasuries.
Many critics have warned that US dollar assets will tend to depreciate due to the weak US economy.
Korn also said Asean and East Asia's three largest economies-Japan, China and South Korea-would discuss a plan to set up an East Asian bond-guarantee fund.
The fund would guarantee bonds issued by local companies in the region in local currencies. The guarantee scheme would support private firms to raise funds from investors at lower cost, the minister said.
"The big tree - Japan, China and South Korea - have already agreed to put in a combined $500 million for the bond-guarantee scheme," he said.
The ADB and Asean will consider how much each should contribute to the fund, he added.
About 70 per cent of the international reserves accumulated by central banks are in the region, which could utilise the money for investment, said Korn,
Asean and the three countries will also discuss implementation of the reserve pool worth $120 billion that was agreed earlier.
The reserve pool - known as Chiang Mai Initiative Multilateralisation (CMIM) - will provide emergency financing to members facing an economc crisis like the one that happened in 1997.
Korn said the office of the CMIM should be located in Thailand.
Meanwhile, Deputy Finance Minister Pradit Pataraprasit said the ministry would offer more tax incentives and other privileges to lure multinational corporations to set up their regional headquarters here.
He said that from a survey conducted in 2007, only nine multinational firms chose Thailand as a base for their regional headquarters.
The top five destinations were Singapore, China, Hong Kong, Japan and South Korea. Singapore and China housed 57 and 56 regional headquarters, respectively.
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