BUSINESS NEWS:
PM Samak appoints new economic committee to screen related issues for Cabinet
The government has just set up a new economic ministerial committee to assist the weekly Cabinet meeting.
Prime Minister, Samak Sundaravej, has approved the setting up of the new economic ministerial committee tasked with the screening and the consideration of all economic issues that will go for the Cabinet meeting.
The newly-set-up committee is scheduled to meet every Monday.
It will be chaired by Samak himself and the meeting will be attended by Finance Minister, Surapong Suebwonglee, the Bank of Thailand Governor, permanent secretaries of all economic ministries and the National Economic and Social Development Board Secretary-General.
The formation of the new committee follows recent appointment of an economic advisor team led by former Deputy Prime Minister, Virabongsa Ramangura.
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BoT signals relaxed monetary policy at Aug 27 meeting
Thailand’s central bank chief today signaled a relaxation of the monetary policy just before the BoT meets to discuss interest rate direction next week.
Bank of Thailand Governor, Tarisa Watanagase, said today the kingdom might not have to further tighten the monetary policy to fight inflation as such pressure appears easing now.
Thai inflation hit its new 10-year high of 9.2% in July.
But Tarisa reckoned that Thai Consumer Price Index might not reach the double-digit level as many earlier feared after a recent sharp drop in oil prices.
Her comment came a day after she met Finance Minister, Surapong Suebwonglee, and other state economic officials to review the local economic conditions and prospects.
The Finance Ministry has been strongly opposing the BoT’s hawkish policy to combat oil-fuelled inflation by raising rates.
It fears such a move would impede Thai economic growth.
The central bank has raised the benchmark interest rate by 25 basis points to 3.5% on July 16. It is scheduled to meet again on August 27.
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July sales dipped 12.5% by recent oil price surge
The country’s auto sales fell considerably in July due to earlier surges in oil prices. But experts hope the situation will improve this month.
Toyota Motor (Thailand) reported today total auto sales in July were almost 44,800 units or 12.5% lower than the same period of 2007.
It said the reason behind such disappointing statistics was the recent surge in oil prices which has continuously plunged local small pickup truck sales in the country.
However Toyota is hopeful that the situation will improve this month as retail diesel price has already been adjusted downward 6 times since the beginning of August.
Meanwhile local auto sales during the first seven months totaled more than 336,200 units or 6.6% higher than the same time of last year.
Toyota expected 2008 auto sales of approximately 650,000 units or 3% higher than in 2007.
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NESDB eyes for worldwide recognition status for Thailand in 20 years
The state economic think-tank is aiming to push Thailand to earn an international recognition of “Good Management” within 20 years.
The National Economic and Social Development Board (NESDB) Secretary-General Ampon Kitti-ampon said today he expects Thailand would experience more changes from a new wave of globalization in the next two decades.
During this period, he forecast the shift of economic power to Asia with speculation by large hedge funds to cause fluctuation in the global financial market.
Moreover, Ampon stated oil supplies would decrease while the price of the commodity will rise with alternative energy production likely to become so high that the stability of global foods will be affected.
The NESDB has also targeted developing the country into a self-reliant economy with food and energy stability and that Thailand would become the economic hub of the region by 2027.
In addition, the agency also targeted making Thailand as one of the world's leading countries in terms of good management practices by that year.
The NESDB chief also suggested that Thailand should have a long-term set of measures to direct its development path to cope with all possibilities and come up with a quality interconnection between the agricultural sector the industrial group and the service businesses.
SET MONITOR:
The Thai bourse finished the week marginally higher in quiet trade which has been locked in narrow range for the whole day.
The Stock Exchange of Thailand’s main index closed up almost 2 points at 707.4 in light trade worth less than 10 billion baht or approximately 292 million dollars.
Foreign investors became the biggest net seller again of 121 million baht which is around 3.5 million dollars followed by retail investors of 64.5 million baht or nearly two million dollars.
And retailers registered a net buy of 185 million baht. That’s about 5.5 million dollars.
Thailand’s stock market added 0.27% led by buying into energy, banking, property and transport shares.
Traders commented that the Thai market still waits for fresh leads to push trade ahead.
SET SPOTLIGHT:
AOT to introduce “Airport Business Center” in hopes of inducing more revenue
Airports of Thailand Public announced today it would develop a part of the vacant area next to the Suvarnabhumi International to be the Airport Business Center with a budget of more than 10 billion baht.
The new project will also invite private companies to jointly invest in it.
At this new facility, travelers and visitors will find an international convention center, an exhibition center, various entertainment services, hotels, a hospital and many more.
Further details of the project are expected to be concluded by the end of this year.
This evening AOT share price ended flat at 40 baht apiece.
SET HILIGHT:
LPN: L.P.N. Development
XD @ THB0.14 Payout 29 Aug 08
IT: IT City
XD @ THB0.26 Payout - TBA
SET DATEBOOK:
19 Aug 2008: BoJ Meeting on Interest Policy
21 Aug 2008: FTI Release of July Industrial Sentiment Index